Inventories are stated at cost or net realisable value, whichever is lower. Cost comprises direct purchase costs (including transportation), cost of production and manufacturing and taxes, and is determined using the first-in, first-out (FIFO) method for oil and chemicals and by the weighted average cost method for materials.
Source: Royal Dutch Shell PLC, Annual Report
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Royal Dutch Shell PLC, Statement of Financial Position, Inventory
USD $ in millions
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | ||
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Oil and chemicals | |
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Materials | |
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Inventories | |
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Source: Based on data from Royal Dutch Shell PLC Annual Reports
| Item | Description | The company |
|---|---|---|
| Materials | 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. | Royal Dutch Shell PLC's materials increased from 2009 to 2010 and 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). | Royal Dutch Shell PLC's inventories increased from 2009 to 2010 but then slightly declined from 2010 to 2011. |
May 24, 2012