(€ in thousands)
Components and sub-assemblies
The amount of inventories recognised as an expense when the inventories are sold and included in cost of sales amounted to €319 million (2013: €320 million).
As a result of the write-down of inventories to their net realisable value, the group recognised a cost of €3.1 million (2013: €2.7 million). The costs are included in cost of sales.
Inventories are stated at the lower of cost and net realisable value. The cost of inventories comprises costs of purchase, assembly and conversion to finished products. The cost of inventories is determined using the first-in, first-out (FIFO) method, net of reserves for obsolescence and any excess stock. Net realisable value represents the estimated selling price less an estimate of the costs of completion and direct selling costs.