2006 20-F - Sappi

SAPPI
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS (Continued)
for the year ended September 2006
14. EQUITY INVESTMENTS (Continued)
debt or the Plum Creek Timberlands LLP notes being reflected on balance sheet. This would not be the
case if we monetised the promissory notes through an issuance of secured notes directly or by an entity that
was required to be consolidated in our financial statements under the applicable accounting principles.
The financial statements of Timber IV are to the 31 December of each year which is the year end of
our associate. The last audited financials were to the 31 December 2005.
15. OTHER NON-CURRENT ASSETS
2006 2005
US$ million
Loans to the Sappi Limited Share Incentive Trust participants.......................... 8 12
Financial assets................................................................... 31 34
Post-employment benefits—pension asset (refer note 28).............................. 18 —
Other loans...................................................................... 4 4
61 50
Details of investments are available at the registered offices of the respective companies
16. INVENTORIES
2006 2005
US$ million
Raw materials................................................................... 138 150
Work in progress ................................................................ 53 58
Finished goods.................................................................. 346 346
Consumable stores and spares..................................................... 162 157
699 711
Included in the above are raw materials of US$12 million (September 2005: US$11 million), work in
progress of US$9 million (September 2005: US$17 million), finished goods of US$47 million
(September 2005: US$94 million) and consumable stores of US$98 million (September 2005: US$85
million) which have been written down to net realisable value. An amount of US$1 million
(September 2005: US$2 million) in respect of the finished goods inventory write-down for the prior year
was reversed in the current year.
The cost of inventories recognised as an expense and included in cost of sales amounted to US$3 788
million (September 2005: US$3 840 million).
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