Inventories are assets held for sale in the ordinary course of business, in the process of production for sale, or in the form of materials or raw materials consumed in the production process or in the rendering of services.
- work in progress
- energy origin rights – purchased rights of origin for energy produced from renewable energy sources, rights of origin for energy relating to energy generated in cogeneration and rights to energy efficiency certificates,
- goods (especially CO2 emission allowances intended for re-sale).
Inventories (except for CO2 allowances acquired to generate profits) are valued at the lower of purchase price / cost to manufacture and net realisable value.
CO2 emission allowances acquired in order to realise profits from fluctuations in market prices are measured at fair value less costs of disposal.
Cost of usage of inventories is determined as follows:
- materials and goods (except for CO2 emission allowances) – using the FIFO method;
- CO2 emission allowances – using specific identification,
- Energy origin rights – using the specific identification method.
As at reporting date, the cost of inventories cannot be higher than net realisable value. Impairment losses on inventories are recognised in operating expenses. When the realisable value of a specific item of inventory is recovered fully or partially, its carrying amount is adjusted by decreasing revaluation adjustment.
|At December 31, 2021||At December 31, 2020|
|Initial value||Impairment||Net carrying amount||Initial value||Impairment||Net carrying amount|
|Repair and maintenance materials||683||(29)||654||701||(25)||676|
|Green energy origin rights||884||(60)||824||1,269||(129)||1,140|
|Other energy origin rights||3||–||3||4||(1)||3|
|ENERGY ORIGIN RIGHTS||887||(60)||827||1,273||(130)||1,143|
|CO2, emission allowances||1||–||1||1||–||1|
Decmeber 31, 2021
December 31, 2020
|REVALUATION ADJUSTMENTS OF INVENTORIES AS AT JANUARY 1||(165)||(207)|
|Recognition of an impairment loss||(18)||(32)|
|Reversal of impairment loss||81||64|
|Use of impairment loss||5||2|
|Fair value measurement||(2)||20|
|REVALUATION ADJUSTMENTS OF INVENTORIES AS AT DECEMBER 31||(101)||(165)|