Inventory Accounting Policy
Inventories are recorded at the average cost of purchase or production, reduced to market value (net realizable value less a reasonable margin) when lower. Stockpiled inventories are accounted as processed when they are removed from the mine. The cost of finished goods is comprised of depreciation and all direct costs necessary to convert stockpiled inventories into finished goods.
Vale classifies proven and probable reserve quantities attributable to stockpiled inventories as inventories. These reserve quantities are not included in the total proven and probable reserve quantities used in the units of production, depreciation, depletion and amortization calculations.
Vale periodically assesses inventories to identify obsolete or slow-moving inventories and, if needed, Vale recognizes definitive allowances for them.
Source: Vale S.A., Annual Report
Inventory Disclosure
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Vale S.A., Statement of Financial Position, Inventory
Source: Based on data from Vale S.A. Annual Reports
| Item |
Description |
The company |
| Products |
The aggregated amount of merchandise or goods held by the entity that are readily available for future sale and items held by the entity which are partially complete or in the process of being readied for future sale. |
Vale S.A.'s products increased from 2009 to 2010 and from 2010 to 2011.
|
| Spare parts and maintenance supplies |
Aggregated amount of unprocessed materials to be used in manufacturing or production process and supplies that will be consumed. |
Vale S.A.'s spare parts and maintenance supplies increased from 2009 to 2010 but then slightly declined 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). |
Vale S.A.'s inventories increased from 2009 to 2010 and from 2010 to 2011.
|
