Annual Report 2010 - Frauenthal Holding AG

114 Annual Report 2010
Consolidated Financial Statements Frauenthal Holding Group 2010
[18] Current assets
Inventories
Raw material and consumables used, work in progress, finished goods and merchandise, and prepayments are reported as
inventories. Measurement is at the lower of cost of purchase or conversion, and write-downs are made for obsolete inventories
or valuations in excess of net realisable value. The inventories reported are made up as follows:
Inventories rose by EUR 10,189,000 owing to increased output volume across all divisions. The Automotive Components
Division accounted for almost half of the additions, at EUR 4,537,000. There were inventory builds of EUR 2,909,000 and
EUR 2,743,000 in the Wholesale Plumbing Supplies and Industrial Honeycombs divisions, respectively.
The following table shows the inventory write-downs:
EUR ’000
2010 2009
Raw materials and consumables used 17,861 12,733
Work in progress 8,110 5,092
Finished goods and merchandise 46,016 43,671
Prepayments 64 367
inventories 72,052 61,863
EUR ’000
2010 2009
Provisions for inventory write-downs at 1 January 4,658 5,392
Change in scope of consolidation 0 -1,071
Exchange differences -10 15
Allocations (expenses for impairment provisions) 561 1,914
Utilisation -599 -824
Reversals -407 -768
Provisions for inventory write-downs at 31 december 4,203 4,658
Carrying value of written-down inventories at 31 december 2010 40,172 35,449
Of the total inventory write-downs at the end of the reporting period some EUR 1,525,000 (2009: EUR 1,801,000) relate to
raw materials and consumables used, EUR 29,000 (2009: EUR 38,000) to work in progress, and EUR 2,650,000 (2009: EUR
2,819,000) to finished goods and merchandise.
The allocations include EUR 332,000 (2009: EUR 985,000) in inventory write-downs and EUR 428,000 (2009: EUR 824,000)
in utilisation of provisions for impairments in the Automotive Components Division. The Industrial Honeycombs Division was
responsible for EUR 175,000 (2009: EUR 172,000) of the allocations and EUR 171,000 (2009: EUR 105,000) of the utilisation
of provisions. The Wholesale Plumbing Supplies Division accounted for EUR 54,000 (2009: nil) of the allocations. Some
EUR 407,000 (2009: EUR 380,000) of the reversals of provisions related to the Automotive Components Division.
The carrying value of impaired inventories was EUR 40,172,000 as at 31 December 2010 (2009: EUR 35,449,000). Of this,
EUR 35,938,000 (2009: EUR 29,196,000) related to finished goods in the Wholesale Plumbing Supplies Division, and EUR
4,234,000 (2009: EUR 4,380,000) to inventories in the Automotive Components Division.