Inventory Accounting Policy
Purchased products are valued at acquisition cost while own-manufactured products are valued at manufacturing cost including related production expenses. In the consolidated balance sheet, inventory is valued at historical cost determined on a first-in first-out basis, and this value is used for the "Cost of Goods Sold" in the consolidated income statement. Provisions are made for inventories with a lower market value or which are slow-moving. If it becomes apparent that such inventory can be reused, provisions are reversed with inventory being revalued up to the lower of its net realizable value or original cost. Inventory produced ahead of regulatory approval is provided for with the provision being released on obtaining approval. Unsalable inventory is fully written off in "Cost of Goods Sold".
Source: Novartis AG, Annual Report
Inventory Disclosure
You have visited 10 password protected pages for free. Others contain data covered by 
.
Sign Up Now to get full access to whole website and cut out all advertisements.
Novartis AG, Statement of Financial Position, Inventory
Source: Based on data from Novartis AG Annual Reports
| Item |
Description |
The company |
| Raw material, consumables |
Carrying amount as of the balance sheet date of unprocessed items to be consumed in the manufacturing or production process. Also includes purchased parts that will be used as components of a finished product. |
Novartis AG's raw material, consumables declined from 2009 to 2010 and from 2010 to 2011.
|
| Finished products |
Carrying amount as of the balance sheet date of merchandise or goods held by the company that are readily available for sale. |
Novartis AG's finished products increased from 2009 to 2010 but then slightly declined from 2010 to 2011 not reaching 2009 level.
|
| Inventories |
Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). |
Novartis AG's inventories increased from 2009 to 2010 but then slightly declined from 2010 to 2011 not reaching 2009 level.
|
