Notes to the Consolidated Financial Statements continued
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Reportofthe Reportofthe Financial Other
Contents Overview Executive Board Supervisory Board Statements Information
32. Financial risk management and financial instruments continued
Impairment losses
The ageing of trade and other receivables (excluding current derivatives) at the reporting date was:
In millions of EUR Gross 2015 Impairment 2015 Gross 2014 Impairment 2014
Not past due
2,475 (54)
2,296
(49)
Past due 0-30 days
207 (13)
185
(11)
Past due 31-120 days
233 (64)
197
(61)
More than 120 days
347 (310)
347
(283)
3,262 (441)
3,025
(404)
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 2015 2014
Balance as at 1 January
404
418
Changes in consolidation
7
2
Impairment loss recognised
103
85
Allowance used
(29)
(38)
Allowance released
(42)
(66)
Effect of movements in exchange rates
(2)
3
Balance as at 31 December
441
404
The movement in the allowance for impairment in respect of loans to customers during the year was as follows:
In millions of EUR
2015
Balance as at 1 January
135
150
Changes in consolidation
1
Impairment loss recognised
10
Allowance used
(21)
Allowance released
(14)
(6)
Effect of movements in exchange rates
(1)
2
Balance as at 31 December
121
135
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 EUR14 million gain (2014: EUR4 million expense) in respect of loans to customers and EUR61 million expense(2014:
EUR19 million expense) 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 HEINEKEN
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 HEINEKEN will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by
delivering cash or another financial asset. HEINEKEN's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due. under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to HEINEKEN's reputation.
118 Helneken N.V. Annual Report 2015