Inventory Accounting Policy
Inventories are stated as follows:
- Raw material comprises mainly the stocks of petroleum, which are stated at the average value of the importing and production costs, adjusted, when applicable, to their net realizable value;
- Oil products and fuel alcohol are stated at average refining or purchase cost, adjusted, when applicable, to their net realizable value;
- Materials and supplies are stated at average purchase cost, not exceeding replacement cost. Imports in transit are stated at identified cost.
Source: Petroleo Brasileiro S.A., Annual Report
Inventory Disclosure
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Petroleo Brasileiro S.A., Statement of Financial Position, Inventory
Source: Based on data from Petroleo Brasileiro S.A. Annual Reports
| Item |
Description |
The company |
| Products |
Carrying amount as of the balance sheet date of merchandise or goods held by the company that are readily available for sale. |
Petroleo Brasileiro S.A.'s products increased from 2009 to 2010 and from 2010 to 2011.
|
| Raw materials, mainly crude oil |
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. |
Petroleo Brasileiro S.A.'s raw materials, mainly crude oil increased from 2009 to 2010 and from 2010 to 2011.
|
| Maintenance materials and supplies |
Carrying amount as of the balance sheet date of products used directly or indirectly in the manufacturing or production process, which may or may not become part of the final product. May also include items used in the storage, presentation or transportation of physical goods. |
Petroleo Brasileiro S.A.'s maintenance materials and supplies increased from 2009 to 2010 but then declined significantly from 2010 to 2011.
|
| 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). |
Petroleo Brasileiro S.A.'s inventories increased from 2009 to 2010 and from 2010 to 2011.
|
