Unilever 2011 Annual Report Download - page 91

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88
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS UNILEVER GROUP continued
11. Other non-current assets continued
The joint ventures and associates have no significant contingent liabilities to which the Group is exposed, and the Group has no
significant contingent liabilities in relation to its interest in the joint ventures and associates.
The Group has no outstanding capital commitments to joint ventures.
Outstanding balances with joint ventures and associates are shown in note 23 on page 107.
12. Inventories
Inventories are valued at the lower of weighted average cost and net realisable value. Cost comprises direct costs and, where
appropriate, a proportion of attributable production overheads. Net realisable value is the estimated selling price less the
estimated costs necessary to make the sale.
Inventories
€ million
2011
€ million
2010
Raw materials and consumables 1,584 1,554
Finished goods and goods for resale 3,017 2,753
4,601 4,307
Inventories with a value of €158 million (2010: €132 million) are carried at net realisable value, this being lower than cost. During 2011,
€99 million (2010: €135 million) was charged to the income statement for damaged, obsolete and lost inventories. In 2011, €43 million
(2010:€42million) was utilised or released to the income statement from inventory provisions taken in earlier years.
In 2011, inventories with a carrying amount of €4 million (2010: €3 million) were pledged as security for certain of the Group’s borrowings.
13. Trade and other current receivables
Trade and other receivables are initially recognised at fair value plus any directly attributable transaction costs. Subsequently
these assets are held at amortised cost, using the effective interest method and net of any impairment losses.
We do not consider the fair values of trade and other receivables to be significantly different from their carrying values. Credit terms for
customers are determined in individual territories. Concentrations of credit risk with respect to trade receivables are limited, due to the
Group’s customer base being large and diverse. Our historical experience of collecting receivables, supported by the level of default, is
that credit risk is low across territories and so trade receivables are considered to be a single class of financial assets. Balances are
considered for impairment on an individual basis rather than by reference to the extent that they become overdue.
Trade and other current receivables
€ million
2011
€ million
2010
Due within one year
Trade receivables 2,897 2,541
Prepayments and accrued income 591 629
Other receivables 1,025 972
4,513 4,142
Other receivables comprise loans and receivables of €327 million (2010: €286 million) and other non-financial assets of €698 million
(2010: €686 million).
Unilever Annual Report and Accounts 2011
Financial statements