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Using Nestle's inventory note, identify and explain the differences between IFRS and GAAP regarding financial accounting and reporting (Nestle 2020 Financial report) 6. Inventories Raw
Using Nestle's inventory note, identify and explain the differences between IFRS and GAAP regarding financial accounting and reporting (Nestle 2020 Financial report)
6. Inventories Raw materials are valued at the lower of purchase cost calculated using the FIFO (first-in, first-out) method and net realizable value. Work in progress, sundry supplies and finished goods are valued at the lower of their weighted average cost (including an allocation of factory overheads and depreciation) and net realizable value. The cost of inventories includes the gains/losses on cash flow hedges for the purchase of raw materials and finished goods In millions of CHF Raw materials, work in progress and sundry supplies Finished goods Allowance for write-down to net realizable value 2020 4521 5 822 (242) 10 101 2019 4 116 5 472 (245) 9 343 Inventories amounting to CHF 283 million (2019: CHF 278 million) are pledged as security for financial liabilities. Inventories amounting to CHF 41 443 million (2019: CHF 45 108 million) were recognized as an expense during the year and included in Cost of goods soldStep by Step Solution
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