5 4.3 Inventories Finished goods and work in process are valued at the lower of cost (under the weighted average method) and net realisable value. The cost of inventories is measured using the standard cost method, which approximates actual cost and includes all production costs and attributable factory overheads. Raw materials, chemicals and fuel oil, spare parts and repair materials are valued at the lower of average cost or net realisable value and are charged to production costs whenever consumed. The cost of purchase comprises both the purchase price and costs directly attributable to the acquisition of the inventory, such as import duties and transportation charges, less all attributable discounts or rebates. Net realisable value is calculated based on the estimated selling price in the ordinary course of business less the estimated costs of completion and the necessary costs to make the sale. Allowance for obsolescence, slow moving or defective inventories is recorded based on the consideration of future use of those inventories and the aging analysis at the end of each reporting year. 4.4 Investments in subsidiaries, joint ventures and associates Investments in joint ventures and associates are accounted for in the consolidated financial statements using the equity method. Investments in subsidiaries, joint ventures and associates are accounted for in the separate financial statements using the cost method. 4.5 Investment properties Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and allowance for loss on impairment (if any). No depreciation is provided on land. Depreciation of other investment properties, which are buildings, is calculated by reference to their costs on the straight-line basis over estimated useful lives of 20 years. Depreciation of the investment properties is included in determining income. On disposal of investment properties, the difference between the net disposal proceeds and the carrying amount of the asset is recognised in profit or loss in the period when the asset is derecognised. 298 IRPC Public Company Limited Notes to the Consolidate Financial Statements
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