Unilever 2012 Annual Report Download - page 113

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110 Unilever Annual Report and Accounts 2012Financial statements
NOTES TO THE ONSOLIDATED FINANIAL STATEMENTS UNILEVER ROUP continued
12 Inventores12 Inventores
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.
Inventores
 mllon
2012
€ million
2011
Raw materials and consumables 1,517 1,584
Finished goods and goods for resale 2,919 3,017
4,436 4,601
Inventories with a value of €143 million (2011: €158 million) are carried at net realisable value, this being lower than cost. During 2012,
€131 million (2011: €99 million) was charged to the income statement for damaged, obsolete and lost inventories. In 2012, €71 million
(2011:€43million) was utilised or released to the income statement from inventory provisions taken in earlier years.
13 Trade and other current recevables13 Trade and other current recevables
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 recevables
 mllon
2012
€ million
2011
Due wthn one year
Trade receivables 2,793 2,897
Prepayments and accrued income 549 591
Other receivables 1,094 1,025
4,436 4,513
Other receivables comprise financial assets of €502 million (2011: €327 million), including supplier and customer deposits, employee
advances and certain derivatives, and non-financial assets of €592 million (2011: €698 million), including tax deposits and reclaimable
sales tax.