D3. 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 realizable value is the calculated sales price received for normal business transactions less calculated sales costs.

Impairment of inventories amounted to SEK 302m (78; 85), of which SEK 9m (70; 61) was recognized in conjunction with restructuring as an item affecting comparability, refer to Note B3 Operating expenses.