I - Cost of Sales: General principles 

4. Non-proportional cost of sales

4.6. Write-downs on inventories (R25600)

Write-downs (and reversals) recorded by an entity on inventories due to:

• Slow moving
• Obsolescence (end of shelf-life)
• Off-specification / bad-quality
• Damages
• Costs above net realizable value
• Customer no longer in business
• Market no longer exists
• Customer requirements changed