Note 14: Trade and other receivables
In € millions |
2016 |
2017* |
||
|
||||
Trade receivables |
2,272 |
1,700 |
||
Prepaid expenses |
55 |
29 |
||
Tax receivables other than income tax |
180 |
112 |
||
Receivables from associates and joint ventures |
13 |
– |
||
FX and commodity contracts |
29 |
11 |
||
Other receivables |
238 |
112 |
||
Total |
2,787 |
1,964 |
||
Trade receivables are presented net of an allowance for impairment of €84 million (2016: €107 million). In 2017, €45 million of impairment losses were recognized in the statement of income (2016: €48 million), of which €42 million was related to continuing operations and €3 million was related to discontinued operations. An amount of €37 million was reversed (2016: €26 million), of which €32 million was related to continuing operations and €5 million was related to discontinued operations.
In 2016, Other receivables included the current part of the escrow account of the Akzo Nobel (CPS) Pensions Scheme in the UK amounting to €54 million, which was settled in 2017.
In € millions |
2016 |
2017 |
Performing trade receivables |
2,058 |
1,505 |
|
|
|
Past due trade receivables and not impaired |
|
|
< 3 months |
185 |
140 |
> 3 months |
13 |
31 |
Impaired trade receivables |
123 |
108 |
Allowance for impairment |
(107) |
(84) |
Total trade receivables |
2,272 |
1,700 |
With respect to the trade and other receivables that are neither impaired nor past due, there are no indications as of reporting date that the debtors will not meet their payment obligations.
In € millions |
2016 |
2017 |
Balance at January 1 |
102 |
107 |
Additions charged to income |
48 |
45 |
Release of unused amounts |
(26) |
(37) |
Utilization |
(19) |
(19) |
Classified as held for sale |
– |
(6) |
Currency exchange differences |
2 |
(6) |
Balance at December 31 |
107 |
84 |
The addition to and release of the allowance for impairment have been included in the statement of income under Selling expenses for continuing operations and under profit for the period from discontinued operations for the Specialty Chemicals business.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables mentioned. We do not hold any collateral for trade receivables. We do not have a significant customer concentration.