| 3.4 | Inventory |
Inventory is recorded at the lower of average cost of acquisition or production and net realizable value, whichever the less.
Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.
Provisions for slow-moving or obsolete inventory are recorded when deemed necessary by management. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads (based on normal operating capacity). It excludes borrowing costs.