IAS 2 para 36 certain inventory disclosures

HOYA Corporation – Annual report – 31 March 2018

Industry: manufacturing

  1. Significant accounting policies (extract)

(12) Inventories

Inventories are measured at the lower of cost and net realisable value. Net realisable value represents the estimated selling price for the inventories in the ordinary course of business, less all estimated costs of completion and costs necessary to make the sale. Costs, including purchase costs, process costs, storage costs and all other costs incurred in bringing the inventories to their present location and condition, are assigned to inventories mainly by the weighted-average method. The production costs include an appropriate portion of fixed and variable overhead expenses.

  1. Inventories

Details of inventories are as follows:

hoya1

The cost of inventories recognised as an expense during the years ended 31 March 2017 and 2018, was 220,712 million yen and 244,443 million yen (2,300,855 thousand U.S. dollars), respectively.

The cost of inventories recognised as an expense in respect of write-down and the reversal of such write-down is as follows:

hoya2

The reversal of write-down was due to an increase in net realisable value, as a result of an increase in new orders with positive sales activities.

 

 

 

 

 

 

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