17. Inventories
| Dec 31 2016 | Dec 31 2015 | |
|---|---|---|
| Finished goods | 833,602 | 863,428 |
| Semi-finished products and work in progress | 431,699 | 319,533 |
| Merchandise | 149,236 | 116,801 |
| Materials | 1,919,054 | 1,936,054 |
| Total | 3,333,591 | 3,235,816 |
| including inventories measured at: | ||
| cost | 3,309,542 | 493,696 |
| net realisable value | 24,049 | 2,742,120 |
Inventories are measured at the lower of cost or cost less write-downs to net realisable value less costs to sell.
In H1 2016, the Group reversed PLN 262,680 thousand of write-downs on inventories of crude oil and refining products, which had been recognised in 2015 due to changes in quoted prices of crude oil and refining products. The write-downs in 2015 had been made to bring the value of the inventories as at December 31st 2015 to their net realisable value. As at December 31st 2016, inventories of crude oil and refining products were carried at cost.
As at December 31st 2016, inventories securing liabilities under bank borrowings were valued at PLN 2,801,263 thousand (December 31st 2015: PLN 2,734,698 thousand.
17.1 Change in inventory write-downs
| 2016 | 2015 | |
|---|---|---|
| At beginning of period | 267,695 | 453,409 |
| Recognised | 18,582 | 267,840 |
| Exchange differences on translating foreign operations | 33 | 21 |
| Used | (1,281) | (328) |
| Reversed | (282,972) | (453,247) |
| At end of period | 2,057 | 267,695 |
The effect of revaluation of inventories is taken to cost of sales.