Notes to the Consolidated Financial Statements (continued) 7.2 Trade and other receivables - O Q, Introduction Report of the Executive Board Report of the Supervisory Board Trade and other receivables arise in the course of ordinary activities like the sale of inventory, proceeds for contract brewing or royalty fees. In millions of 2018 2017 Trade receivables 2,588 2,582 Other receivables 762 672 Trade receivables due from associates and joint ventures 8 23 Prepayments 382 399 3,740 3,676 Trade and other receivables contain a net impairment loss of €38 million (2017: €13 million) from contracts with customers, which is included in expenses for raw materials, consumables and services. The ageing of the trade and other receivables (excluding prepayments) as per reporting date can be shown as follows: 2018 Past due In millions of Total Not past due 0-30 days 31-120 days 120 days Gross 3,795 2,480 472 275 568 Allowance (437) (38) (5) (44) (350) 3,358 2,442 467 231 218 2017 Past due In millions of Total Not past due 0-30 days 31-120 days 120 days Gross 3,730 2,477 487 255 511 Allowance (453) (46) (19) (42) (346) (3,277) 2,431 468 213 165 Financial Statements Sustainability Review Heineken N.V. Annual Report 2018 Other Information The movement in allowance for credit losses for trade and other receivables during the year was as follows: Allowance for credit losses 2018 - Trade and other receivables 600 42 453 1 1 C (49) (4) (7) 2 400 E c 200 Balance as Policy Changes in Addition to Allowance Allowance Fx Balance as at at 1 January change consolidation allowance used released movements 31 December In millions of 2018 2017 Balance as at 1 January 453 448 Policy change 1 Changes in consolidation 1 55 Impairment loss recognised 42 105 Allowance used (49) (45) Allowance released (4) (92) Effect of movements in exchange rates (7) (18) Balance as at 31 December 437 453 Accounting estimates HEINEKEN determines on each reporting date the impairment of trade and other receivables using a model (e.g. flow rate method) which estimates the lifetime expected credit losses that will be incurred on these receivables. Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics. For more information on HEINEKEN's credit risk exposure refer to note 11.5. Accounting policies Trade and other receivables are held by HEINEKEN in order to collect the related cash flows. These receivables are measured at fair value and subsequently at amortised cost minus any impairment losses. Trade and other receivables are derecognised by HEINEKEN when substantially all risks and rewards are transferred or if HEINEKEN does not retain control over the receivables.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 80