SAMP 2003-01-01 2003-12-31 iso4217:USD pure shares Management Discussion and Analysis The financial statements have been prepared on the historical cost basis, except for the revaluation of land and buildings and certain financial instruments. The principal accounting policies adopted are set out below. Inventories are stated at the lower of cost and net realisable value. Included in inventory are: (a) raw materials, (b) supplies, (c) finished goods. Financial assets and financial liabilities are recognised on the Group's balance sheet when the Group has become a party to the contractual provisions of the instrument. The Group has these instruments: Receivables Payables Short term investments Trade receivables are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. Trade receivables include receivables from major customers. Trade receivables include related party receivables. Accounting Policies The financial statements have been prepared on the historical cost basis, except for the revaluation of land and buildings and certain financial instruments. The principal accounting policies adopted are set out below. Inventories Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the weighted average method. Net realisable value represents the estimated selling price less all estimated costs to completion and costs to be incurred in marketing, selling and distribution. Financial Instruments Financial assets and financial liabilities are recognised on the Group's balance sheet when the Group has become a party to the contractual provisions of the instrument.