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## 8. INVENTORIES 

Total inventories at the lower of cost and net realizable value on the statement of financial position are comprised of the following: 

<img src='content_image/173023.jpg'>

Expenses recognized in cost of sales for inventories during the year are comprised of the following: 

<img src='content_image/173024.jpg'>

The value of inventory subject to a reserve was $3.2 million (January 1, 2011: $4.1 million and as January 3, 2010: $3.6 million). 

## 9. ACCOUNTS RECEIVAblE 

Accounts receivable bear normal commercial credit terms, usually 30 days or less, and are non-interest bearing. The entire accounts receivable balance is pledged as collateral for the Company’s short-term bank loans. 

<img src='content_image/173025.jpg'>

As at December 31, 2011, trade receivables of an initial value of $0.2 million (January 1, 2011: $0.2 million; January 3, 2010: $0.3 million) were impaired and fully provided for. See below for the movements in the position for impairment of receivables. 

<img src='content_image/173026.jpg'>

