IBERSOL | Integrated Management Report 2022

INTEGRATED MANAGEMENT REPORT 2022 5. Working Capital 5.1.Inventories Accounting policies Inventories are stated at the lower of cost and net sell value. The cost is calculated us- ing the weighted average cost and is equivalent to the acquisition cost less the value of quantity discounts. The costs of feeding staff in stores are reflected in staff costs, as a contra entry to stock regularization. The net realizable value corresponds to the estimated selling price in the normal course of business, less the selling costs. As at 31 December 2022 and 2021, the detail of the Group’s inventories was as follows: Dec/2022 Dec/2021 Raw, subsidiary and consumable materials 12 672 414 15 326 340 Goods 486 703 466 099 13 159 117 15 792 439 Decreases -74 981 -74 981 Net Inventories 13 084 136 15 717 458 5.1.1. Cost of sales In 2022 the cost of inventories recognized as an expense and included in “cost of sales” totaled 87.767.965 euros (in 2021: 42.853.515 euros), as shown below: 2022 2021 M+MP Initial Inventory 15 792 439 11 676 996 Value of Lurca and Iberking inventories as of 31.12.2021 -2 579 658 - Currency translation 529 720 343 490 Purchases 90 483 705 48 775 681 Inventory adjustment -3 299 124 -2 150 213 Closing inventories M+MP 13 159 117 15 792 439 Cost of goods sold and materials consumed 87 767 965 42 853 515 409