Company: TNRSF
Filing Date: 2025-02-21
Form Type: 6-K
Source: 0001171843-25-000987
Chunk: 26

Company: TENARIS SA
Filing Date: 2025-02-21
Form: 6-K
Chunk 26
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ories
Inventories are stated at the lower between cost and net realizable value.
The cost of finished goods and goods in process is comprised of raw materials, direct labor, utilities, freights and other direct costs
and related production overhead costs, and it excludes borrowing costs. The allocation of fixed production costs, including depreciation
and amortization charges, is based on the normal level of production capacity. Inventories cost is mainly based on the FIFO method. Tenaris
estimates the net realizable value of inventories by grouping, where applicable, similar or related items. Net realizable value is the
estimated selling price in the ordinary course of business, less any estimated costs of completion and selling expenses. Goods in transit
as of year-end are valued based on the supplier’s invoice cost.

Tenaris establishes an allowance for obsolete or slow-moving inventories
related to finished goods, supplies and spare parts. For slow moving or obsolete finished products, an allowance is established based
on management’s analysis of product aging. An allowance for obsolete and slow-moving inventory of supplies and spare parts is established
based on management's analysis of such items to be used as intended and the consideration of potential obsolescence due to technological
changes, aging and consumption patterns.

#### KTrade and other receivables
Trade and other receivables are recognized initially at fair value that
corresponds to the amount of consideration that is unconditional unless they contain significant financing components. The Company holds
trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortized cost
using the effective interest method. Due to their short-term nature, their carrying amount is considered to be the same as their fair
value.

Tenaris applies the IFRS 9 “Financial Instruments” simplified
approach to measure expected credit losses, which uses a lifetime expected loss allowance for all trade receivables. To measure the expected
credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss
rates are based on the payment profiles of sales over a period of three years and the corresponding historical credit losses experienced
within this period. The expected loss allowance also reflects current and forward-looking information on macroeconomic factors affecting
the ability of each customer to settle the receivables.

A credit account is typically considered in default when the customer has
failed to make the required minimum payments for an extended period of time. Management considerations, including customer-specific analyses,
are carried