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 reported under “Impairment losses and reversals of impairment losses on financial assets (net)” in the consolidated income statement if the asset is used in ordinary activities and hence has an operative nature. If the asset is not used in ordinary activities, 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 discretionary decisions 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:

Trade and other receivables

 

 

Dec. 31, 2024

 

Dec. 31, 2023

€ 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

 

3,902

 

25

 

3,926

 

3,945

 

25

 

3,969

Gross other receivables

 

152

 

 

152

 

160

 

 

160

Gross trade and other receivables

 

4,053

 

25

 

4,078

 

4,105

 

25

 

4,130

Loss allowances on trade accounts receivable

 

-101

 

 

-101

 

-97

 

 

-97

Loss allowances on other receivables

 

-3

 

 

-3

 

-1

 

 

-1

Net trade and other receivables

 

3,949

 

24

 

3,974

 

4,007

 

25

 

4,031

thereof: current

 

3,922

 

24

 

3,947

 

3,979

 

25

 

4,004

thereof: non-current

 

27

 

 

27

 

28

 

 

28

In fiscal 2024, trade accounts receivable in Italy with a nominal value of € 44 million (2023: € 69 million) were sold for € 44 million (2023: € 69 million). These receivables did not involve any further rights of recourse against the Group.

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