Inventories are stated at the lower of cost and net realizable value. Cost is determined by the weighted average cost method. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. Costs of inventories include the transfer from equity of any gains and losses on qualifying cash flow hedges on purchases of inventories.
The composition of the inventories is as follows:
in thousands of EUR
31 December 2018
31 December 2017
Provision for obsolete inventory
An amount of €10,960 (2017: €9,773) has been recognized in the consolidated Income Statement relating to obsolete inventories in ’Cost of sales and directly related costs’.