(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 reported under “Impairment losses and reversals of impairment losses on financial assets (net)” in the consolidated income statement if the asset can be caracterized 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, 2021 |
|
Dec. 31, 2020 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ 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 |
|
3,556 |
|
20 |
|
3,576 |
|
3,106 |
|
19 |
|
3,125 |
Gross other receivables |
|
156 |
|
– |
|
156 |
|
196 |
|
– |
|
196 |
Gross trade and other receivables |
|
3,712 |
|
20 |
|
3,732 |
|
3,302 |
|
19 |
|
3,321 |
Loss allowances on trade accounts receivable |
|
-58 |
|
– |
|
-59 |
|
-73 |
|
– |
|
-73 |
Loss allowances on other receivables |
|
-2 |
|
– |
|
-2 |
|
-2 |
|
– |
|
-2 |
Net trade and other receivables |
|
3,652 |
|
20 |
|
3,672 |
|
3,227 |
|
19 |
|
3,246 |
thereof: current |
|
3,626 |
|
20 |
|
3,646 |
|
3,202 |
|
19 |
|
3,221 |
thereof: non-current |
|
25 |
|
– |
|
25 |
|
25 |
|
– |
|
25 |
The increase in trade accounts receivable was driven by all business sectors, particularly Life Science.