Our results

Inventories

Accounting policy applied

Inventories are carried at their cost or net realizable value, whichever is lower. Inventory releases are made using the FIFO method. The realizable value is the estimated sale price of inventories less any costs necessary to effect the sale. The Group creates impairment losses for inventory value if redundant or damaged inventories exist or when the net sale price of the inventory is lower than its carrying amount. The amount of impairment losses for inventory value is determined on the basis of usefulness analysis conducted at least at the end of each financial year. Based on this analysis, impairment losses for inventories are made with respect to inventories useless from the Group’s point of view.

Structure of inventories

Data in ths. PLN

 As at 31/12/2017 (audited)As at 31/12/2016 (audited)
Row materials (1)145,820120,619
Semi-finished products5,9126,027
Commodities1,7661,872
Impairment losses(5,034)(7,329)
Total148,464121,189

(1) The increase in inventory value in the financial year ended on 31 December 2017 is mainly the result of the Parent Company’s decision to physically liquidate some rolling stock items for the purpose of recovering spare parts and scrap. The residual value of rolling stock items recognized in 2017 in inventories was PLN 30,355 thousand.

Changes in impairment losses for inventory value

Data in ths. PLN

 As at 31/12/2017 (audited)As at 31/12/2016 (audited)
Balance at the beginning of the reporting period7,3299,815
Recognition789717
Reversal(751)(2,035)
Utilization(2,328)(1,224)
Foreign exchange differences resulting from translation of financial statements of foreign entities(5)56
Balance at the end of the reporting period5,0347,329