Plastic2Oil Inc (PTOI)

[dreaminbig]

Mucho Stockpile?

http://www.sec.gov/Archives/edgar/data/1381105/000121390012001206/f10k2011_jbi.htm

NOTE 4 – INVENTORIES, NET (Consolidated P2O, Javaco)

Inventories at December 31 consist of the following:

Raw materials
$64,191

Finished goods
$402,907

Obsolescence reserve
(160,000)


Total inventories (Consolidated P2O, Javaco)
$307,098


As of December 31, 2011 and 2010, our reserve for inventory obsolescence was $160,000 and $115,000, respectively.

As at December 31, 2011, inventory includes $53,671 (2010 - $Nil) of general and administrative costs.

Changes in Accounting Policies Including Initial Adoption

During 2011, we started producing oil from recycled plastic, which required valuation of the plastic inventory and the oil inventory on hand. As a result, we determined that basing their inventory on a first-in-first-out basis (“FIFO”) ceased to be a viable accounting policy and that using the average cost as their basis for the lower of cost or market assessment would yield a more relevant policy in the future.

The change was applied retrospectively for all subsidiaries and did not have a material impact these consolidated financial statements.