Financial statements

NOTE 8



INVENTORIES

Details of this heading in the balance sheet at 31 December 2017 are as follows:

(Amounts in euros) 31/12/2017 31/12/2016
Raw materials and consumables 3.314.399,15 3.953.172
Commercial supplies 64.420 92.896
Advances to suppliers 3.256 11.495
Provisions for impairment losses -547.707 -1.405.028
Total 2.834.369 2.652.534

The Company made a provision for impairment losses in respect of obsolescent items of inventory.

In December 2017 the project to replace the FTTH access network was completed, involving the retirement of equipment for which provision had been made in 2016. This resulted in a significant reduction in the Company’s provision for impairment losses recognised at the end of the reporting period.

The movements in impairment provisions during the year were as follows:

(Amount in euros) Balance at 01/01/2017 Allocations Applications Balance at 31/12/2017
Provisions for impairment losses -1.405.028 -61.686 919.007 -547.707