19. Inventories

A A A
PLN ’000 Dec 31 2013 Dec 31 2012
(restated)
Finished products 1,755,650 1,800,849
Semi-finished products
and work in progress
671,636 751,935
Merchandise 284,497 256,875
Raw material and
consumables
3,020,068 3,156,544
Total 5,731,851 5,966,203
including inventories measured:    
at cost 5,725,835 5,960,708
at net realisable value 6,016 5,495

As at December 31st 2013, the value of inventories serving as collateral for the Parent's liabilities under the inventory refinancing and financing facility discussed in Note 27.1 was PLN 5,032,009 thousand (December 31st 2012: PLN 4,983,260 thousand).

19.1 Change in impairment losses on inventories

PLN ’000 Year ended
Dec 31 2013
Year ended
Dec 31 2012
At beginning of the period 2,293 11,437
Recognised 3,319 1,336
Exchange differences
on translating foreign
operations
3 (85)
Used (265) (5,269)
Reversed (874) (5,126)
At end of the period 4,476 2,293
including:    
Finished products 311 332
Semi-finished products
and work in progress
2 40
Merchandise 68 29
Raw material and consumables 4,095 1,892

The effect of revaluation of inventories is taken to cost of sales.

19.2 Mandatory stocks

The Group maintains mandatory stocks as required by the following acts:

  • Act on Stocks of Crude Oil, Petroleum Products and Natural Gas, and on the Rules to be Followed in the Event of Threat to National Fuel Security or Disruptions on the Petroleum Market of February 16th 2007 (Dz.U. of 2007, No. 52, item 343, dated March 23rd 2007, as amended).
  • Regulation of the Minister of Economy, Labour and Social Policy, on fuel stocks at power utility companies, dated February 12th 2003 (Dz.U. No. 39, item 338, as amended).

These regulations define the rules for creating, maintaining and financing stocks of crude oil, petroleum products and fuels at power utility companies.

The Group's mandatory stocks include crude oil, petroleum products (liquid fuels), LPG and coal. As at December 31st 2013, the gross value of mandatory stocks was PLN 4,250,530 thousand (December 31st 2012: PLN 4,353,207 thousand).