NOTES TO THE FINANCIAL STATEMENTS
Note 9: Inventories
2021 $
2020 $
Current
Goods
4,282,674
4,310,331
4,282,674
4,310,331
Inventories are measured at the lower of cost and net realisable value. Cost is the specific amount per unit charged by the supplier or contract manufacturer of the product. Costs are tracked through the system using the first-in, first-out (FIFO) method. An exercise is conducted to determine those products where they are not expected to be able to be sold. The Company has various strategies that are used to manage inventory before specific products need to be deemed as not being able to be sold. These management strategies include promotional activity, the allocation of owned brand products to member stores and contractual relationships with suppliers where suppliers have committed to take back product. Despite the use of these strategies there are still specific items deemed not able to be sold. The items are then reduced to a net realisable value of zero and the value of these items is therefore no longer included in the inventory balance. The balance of items revalued to zero as at 30 June 2021 was $186,615. At 30 June 2020 this balance was $160,000. This is an increase of $26,615. During the year there was $37,488 of stock items physically removed from the warehouse that were not sold. The increase in stock items revalued to zero at balance date was $26,615. The net amount of $64,103 forms a part of the expense line cost of sales – product which has a total of $27,639,681. Inventory items are assets primarily held for the purpose of trading. The products are purchased from suppliers to be immediately available for sale to customers. Of the $4,310,331 of inventory an estimate is that $4,031,055 will be sold by 30 June 2022 and $279,276 will be sold subsequent to that. Note 10: Other Assets
2021 $
2020 $
Prepayments
213,829
252,686
Other assets
19,577
21,212
233,406
273,898
Note 11: Payables
Unsecured Trade payables
4,158,032
4,301,274
Other payables and accrued expenses
73,741
150,182
4,231,773
4,451,456
GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 I 57
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