Gschäftsbericht 2018

102 | Galenica financial statements 2018 Finance Notes to the consolidated financial statements of the Galenica Group Tax loss carryforwards and tax credits in thousand CHF Tax loss carry- forwards/tax credits 2018 Tax effect Tax loss carry- forwards/tax credits 2017 Tax effect Tax loss carryforwards and tax credits 126,025 24,546 167,966 32,716 – of which capitalised as deferred tax assets (49,871) (9,705) (110) (22) – of which netted with deferred tax liabilities (73,040) (14,208) (164,661) (32,043) Unrecognised tax loss carryforwards and tax credits 3,114 633 3,195 651 Of which expire: – within 1 year 1 1 3 1 – in 2 to 5 years 2,858 581 1,844 369 – in more than 5 years 255 51 1,348 281 12. Inventories Accounting principles Inventories contains purchased merchandise carried at the lower of cost or net realisable value. The weighted average method is primarily used to determine cost. Value adjustments are recognised on inventories for slow moving items and excess stock. Cost of goods mainly include costs of goods and merchandise from the business sectors Retail and Services. Price discounts, rebates or supplier discounts and other payments received from suppliers that are not payment for distinct goods or services provided by Galenica and thus on the purchase of goods are directly deducted from costs of goods. in thousand CHF 2018 2017 Gross carrying amount as at 1 January 288,027 277,576 Addition to scope of consolidation 4,248 9,433 Change in inventories (1,518) 1,018 Gross carrying amount as at 31 December 290,757 288,027 Adjustment as at 1 January (13,810) (12,860) Addition (1,394) (1,553) Use 1,075 603 Adjustment as at 31 December (14,129) (13,810) Net carrying amount as at 31 December 276,628 274,217