Notes to the financial statements (continued) Section 3: Operational assets and liabilities (continued) 10. Inventories A. Accounting policy Inventories are valued at the lower of cost or net realisable value. The cost of inventories is based on the weighted average cost principle, and includes expenditure incurred in acquiring inventories and bringing them to their existing location and condition. Cost may also include transfers from equity of any gains or losses on qualifying cash flow hedges of foreign currency purchases of inventories. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated completion and selling costs.
B. Amounts recognised in statement of financial position Inventories consist of materials required for the maintenance and operation of the network, as well as for general construction works. See table 16 below. C. Amounts recognised in profit or loss Inventories expensed to profit or loss during the reporting year ended 30 June 2025 were $74 million (30 June 2024: $58 million). As at 30 June 2025, the write down of inventory to net realisable value was $1.243 million (30 June 2024: $0.935 million).
Table 16: Amounts recognised in statement of financial position
2024/25 $M
2023/24 $M
Current
Raw materials and stores
247 247
185 185
100
Western Power Annual Report 2025
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