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TAG overview

Results

(25) Trade and other receivables

Operating Assets Liabilities and Contingent Liabilities

(25) Trade and other receivables

Accounting and measurement policies

Trade and other receivables

Trade accounts receivable without significant financing components that are not the subject of a factoring agreement are measured at the amount of the unconditional claim for consideration on initial recognition. For additions to trade accounts receivable, loss allowances are recognized to allow for expected credit losses.

At initial recognition, other receivables are measured at fair value plus the direct transaction costs incurred upon acquisition of the asset.

Trade accounts receivable that are potentially designated to be sold on account of a factoring agreement are measured at fair value through other comprehensive income.

The measurement policies applied in determining loss allowances for trade and other receivables are shown in Note (42) “Management of financial risks” in the “Credit risks” section.

Loss allowances and reversals of loss allowances are presented under the item “Impairment losses and reversals of impairment losses on financial assets (net)” in the consolidated income statement if the asset can be characterized as operational. If the asset can be characterized as financial, it is recognized in financial income or financial expenses.

Further information on the accounting and measurement policies governing financial assets can be found in Note (36) “Other financial assets”.

Significant discretion and sources of estimation uncertainty

Trade and other receivables

Information on the significant discretion and estimation uncertainty concerning trade and other receivables can be found in Note (42) “Management of financial risks”.

Trade and other receivables were measured as follows:

 

 

Dec. 31, 2020

 

Dec. 31, 2019

€ million

 

Subsequently measured at amortized cost

 

Subsequently measured at fair value through other compre­hensive income

 

Total

 

Subsequently measured at amortized cost

 

Subsequently measured at fair value through other compre­hensive income

 

Total

Gross trade accounts receivable

 

3,106

 

19

 

3,125

 

3,227

 

25

 

3,251

Gross other receivables

 

196

 

 

196

 

340

 

 

340

Gross trade and other receivables

 

3,302

 

19

 

3,321

 

3,567

 

25

 

3,591

Loss allowances on trade accounts receivable

 

-73

 

 

-73

 

-77

 

 

-77

Loss allowances on other receivables

 

-2

 

 

-2

 

-4

 

 

-4

Net trade and other receivables

 

3,227

 

19

 

3,246

 

3,485

 

24

 

3,510

therof: current

 

3,202

 

19

 

3,221

 

3,463

 

24

 

3,488

therof: non-current

 

25

 

 

25

 

22

 

 

22

In fiscal 2020, trade accounts receivable in Italy with a nominal value of € 31 million (2019: € 22 million) were sold for € 30 million (2019: € 22 million). These receivables did not involve any further rights of recovery against the Group.