D4. Inventories

AP ACCOUNTING PRINCIPLES

Inventories are measured at the lower of cost and net realizable value. Cost is calculated mainly by applying the first-in, first-out (FIFO) principle or weighted average cost formula. The cost of inventories and work in progress includes raw material costs, direct labor, other direct expenses and production-related overheads, based on a normal capacity utilization.

The net sales price is the calculated sales price received for normal business transactions less calculated sales costs.

Felling rights for standing timber are measured at contract prices, which on average have not exceeded the lower of net realizable value and cost.

Inventories

SEKm

2016

2015

2014

Raw materials and consumables

4,254

4,731

4,163

Spare parts and supplies

1,906

1,734

1,812

Products in progress

1,346

1,243

1,165

Finished products

6,349

6,421

6,179

Felling rights

489

523

463

Advance payments to suppliers

3

9

11

BS Total

14,347

14,661

13,793

Impairment of inventory amounted to SEK 258m (45; 235) during the period. Refer to Note B2 for further information.