Notes to the Consolidated Financial Statements (continued)
7.2 Trade and other receivables
-
O O Qs
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
2019
2018*
Trade receivables
2,913
2,588
Other receivables
813
817
Trade receivables due from associates and joint ventures
12
8
Prepayments
385
382
4,123
3,795
Restated for IAS 37. Refer to note 4 for further details.
Trade and other receivables contain a net impairment loss of €65 million (2018: €38 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:
2019
Past due
In millions of
Total
Not past due
0-30 days
31-120 days
>120 days
Gross
4,172
2,814
455
313
590
Allowance
(434)
(44)
(10)
(57)
(323)
3,738
2,770
445
256
267
2018*
Past due
In millions of
Total
Not past due
0-30 days
31-120 days
>120 days
Gross
3,850
2,535
472
275
568
Allowance
(437)
(38)
(5)
(44)
(350)
3,413
2,497
467
231
218
Restated for IAS 37. Refer to note 4 for further details.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2019^ 80
Other Information
The movement in allowance for credit losses for trade and other receivables during the year was as follows:
Allowance for credit losses 2019 - Trade and other receivables
600
CU
O
437
1
4
434
1 400
'E
c
(73)
(4)
200
Balance as
at 1 January
Changes in Addition to Allowance
consolidation allowance used
Allowance
released
Effect of
movements in
exchange rates
Balance as at
31 December
In millions of
2019
2018
Balance as at 1 January
437
453
Policy changes
1
Changes in consolidation
1
1
Addition to allowance
69
42
Allowance used
(73)
(49)
Allowance released
(4)
(4)
Effect of movements in exchange rates
4
(7)
Balance as at 31 December
434
437
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.
