Siemens AG: Identifying differences and similarities between IFRS and GAAP (LO 10-11)

Presented below are excerpts from the 2018 annual report of Siemens AG, a German company that

operates in numerous industries, including technology, power generation, and medical diagnostics.

NOTE 1 Basis of presentation

Inventories?Inventories are valued at the lower of acquisition or production costs and net realizable

value, costs being generally determined on the basis of an average or first-in, first-out method.

NOTE 11 Inventories

Sep 30, (In millions of () 2018 2017 Raw materials and supplies 3,165 2,955 Work in progress 6,085 6, 165 Finished goods and products held for resale 3,871 3,972 Advances to suppliers 763 790 13,885 13,885