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.