8.8.1
Inventories

 

  2019 2018
  € x 1,000 € x 1,000
Components for the purpose of production 193,119 175,761
Semi-finished goods 2,831 2,313
Trading and finished products 190,880 161,939
Balance at 31 December 386,830 340,014

 

In 2019, Accell Group wrote down inventories by € 4.0 million to lower net realizable value (2018: € 4.1 million) of which € 1.7 million is recognized as cost of materials and consumables (2018: € 1.9 million) and € 2.3 million as other operating expenses (2018: € 2.2 million). In 2019 Accell Group reversed write-downs of € 1.4 million (2018: € 1.3 million) recognized as a reduction of cost of materials and consumables of € 0.1 million (2018: € 0.2 million) and € 1.3 million as a reduction of other operating expenses (2018: € 1.1 million). At the balance sheet date inventories with a carrying amount of approximately € 9.3 million (2018: € 12.3 million) were valued at lower net realizable value. Furthermore, inventories include goods in transit of € 70.3 million (2018: € 78.2 million) related to shipped goods for which Accell Group had acquired the economic ownership, but which have not yet been received.

Accounting policy

Inventories are measured at the lower of cost, using the first-in first-out (fifo) principle, and net realizable value. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and selling expenses.