Inventory Accounting Policy
Inventories are included in the financial statements at the lower of cost (including raw materials, direct labour, other direct costs and related production overheads) and net realisable value. Cost is generally determined on a first in, first out basis. Pre-launch inventory is held as an asset when there is a high probability of regulatory approval for the product. Before that point a provision is made against the carrying value to its recoverable amount; the provision is then reversed at the point when a high probability of regulatory approval is determined.
Source: GlaxoSmithKline PLC, Annual Report
Inventory Disclosure
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GlaxoSmithKline PLC, Statement of Financial Position, Inventory
USD $ in millions, translated from GBP £
Source: Based on data from GlaxoSmithKline PLC Annual Reports
| Item |
Description |
The company |
| Raw materials and consumables |
Aggregated amount of unprocessed materials to be used in manufacturing or production process and supplies that will be consumed. |
GlaxoSmithKline PLC's raw materials and consumables increased from 2009 to 2010 but then declined significantly from 2010 to 2011.
|
| Work in progress |
Carrying amount as of the balance sheet date of merchandise or goods which are partially completed, are generally comprised of raw materials, labor and factory overhead costs, and which require further materials, labor and overhead to be converted into finished goods, and which generally require the use of estimates to determine percentage complete and pricing. |
GlaxoSmithKline PLC's work in progress declined from 2009 to 2010 but then increased from 2010 to 2011 not reaching 2009 level.
|
| Finished goods |
Carrying amount as of the balance sheet date of merchandise or goods held by the company that are readily available for sale. |
GlaxoSmithKline PLC's finished goods 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). |
GlaxoSmithKline PLC's inventories declined from 2009 to 2010 but then slightly increased from 2010 to 2011.
|
