4.4 Inventories

Accounting policies

Inventories are stated at the lower of cost (calculated applying the FIFO method or the average cost method) and net realisable value. Costs incurred to fulfil a contract are capitalised if they are incurred in direct connection with satisfying a performance obligation and these costs are expected to be recovered. The asset recognised in respect of the costs to fulfil a contract is amortised on a systematic basis over the period when the goods or services are transferred to the customer.