Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in, first out (FIFO) method, and includes the purchase price, import duties, handling and other costs directly attributable to the acquisition of the inventories, and other costs incurred in bringing them to their existing location and condition. 

 

An allowance is provided to reduce the carrying amount of inventories due to obsolescence and possible losses based on specific identification method. When inventories are sold, the related allowance is reversed in the same period. 

 

When inventories are sold, the carrying amount of those inventories shall be recognized as an expense in the period in which the related revenue is recognized. 

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