Vodafone 2016 Annual Report Download - page 122

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Vodafone Group Plc
Annual Report 2016
120
Notes to the consolidated nancial statements (continued)
14. Inventory
Our inventory primarily consists of mobile handsets and is presented net of an allowance for obsolete products.
Accounting policies
Inventory is stated at the lower of cost and net realisable value. Cost is determined on the basis of weighted average costs and comprises direct
materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location
and condition.
2016 2015
£m £m
Goods held for resale 565 482
Inventory is reported net of allowances for obsolescence, an analysis of which is as follows:
2016 2015 2014
£m £m £m
1 April (74) (88) (89)
Exchange movements (3) 8 6
Amounts (debited)/credited to the income statement (22) 6(5)
31 March (99) (74) (88)
Cost of sales includes amounts related to inventory of £5,427 million (2015: £5,701 million; 2014: £5,340 million).