All amounts in SEKm unless otherwise stated
| Group |
Parent Company |
|||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| Raw materials | 3,276 | 3,438 | 19 | 20 |
| Products in progress | 257 | 303 | 1 | 1 |
| Finished products | 9,874 | 10,417 | 2,574 | 2,454 |
| Advances to suppliers | 11 | 21 | — | — |
| Total | 13,418 | 14,179 | 2,594 | 2,475 |
Inventories and work in progress are valued at the lower of cost, at normal capacity utilization, and net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale at market value. The cost of finished goods and work in progress comprises development costs, raw materials, direct labor, tooling costs, other direct costs and related production overheads. The cost of inventories is assigned by using the weighted average cost formula. Provisions for obsolescence are included in the value for inventory.
The cost of inventories recognized as expense and included in Cost of goods sold amounted to SEK 83,463m (86,589) for the Group.
Write-downs due to obsolescence amounted to SEK 390m and reversals of previous write-downs amounted to SEK 349m for the Group. The amounts have been included in the item Cost of goods sold in the income statement.