Notes to the consolidated financial statements continued
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Report of the
Report of the
Contents
Overview
Executive Board
Supervisory Board
Financial
statements
Other
information
32. Financial risk management and financial instruments
Impairment losses
The ageing of trade and other receivables (excluding current derivatives) at the reporting date was:
In millions of EUR
Gross 2014
Impairment
2014
Gross 2013
Impairment
2013
Not past due
2,296
(76)
2,016
(83)
Past due 0-30 days
185
(9)
281
(15)
Past due 31-120 days
197
(36)
191
(33)
More than 120 days
347
(283)
312
(287)
3,025
(404)
2,800
(418)
The movement in the allowance for impairment in respect of trade and other receivables (excluding current derivatives) during the year was
as follows:
In millions of EUR
2014
2013
Balance as at 1 January
418
461
Changes in consolidation
2
(3)
Impairment loss recognised
85
66
Allowance used
(38)
(66)
Allowance released
(66)
(32)
Effect of movements in exchange rates
3
(8)
Balance as at 31 December
404
418
The movement in the allowance for impairment in respect of loans to customers during the year was as follows:
In millions of EUR
2014
2013
Balance as at 1 January
150
158
Changes in consolidation
3
Impairment loss recognised
10
Allowance used
(21)
5
Allowance released
(6)
(14)
Effect of movements in exchange rates
2
(2)
Balance as at 31 December 135 150
Impairment losses recognised for trade and other receivables (excluding current derivatives) and loans to customers are part of the other
non-cash items in the consolidated statement of cash flows.
The income statement impact of EUR4 million (2013: EUR14 million) in respect of loans to customers and EUR19 million (2013: EUR34 million)
in respect of trade and other receivables (excluding current derivatives) were included in expenses for raw materials, consumables and services.
The allowance accounts in respect of trade and other receivables and held-to-maturity investments are used to record impairment losses,
unless ElEINEKEN is satisfied that no recovery of the amount owing is possible; at that point, the amount considered irrecoverable is written off
against the financial asset.
Liquidity risk
Liquidity risk is the risk that EIEINEKEN will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled
by delivering cash or another financial asset. ElEINEKEN's approach to managing liquidity is to ensure, as far as possible, that it will always
have sufficient liquidityto meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses
or risking damage to EHEINEKEN's reputation.
116
Eleineken N.V. Annual Report 2014