90
Notes to the Consolidated Financial Statements
In millions of
2023
2022
Balance as at 1 January
488
454
Changes in consolidation
14
44
In millions of
2023
2022
Addition to allowance
51
50
Trade receivables
3,368
3,104
Allowance used
(42)
(47)
Other receivables
1,111
926
Allowance released
(15)
(12)
Trade receivables due from associates and joint ventures
8
16
(1)
(5)
Other
Prepayments
532
485
Effect of movements in exchange rates
(7)
4
5,019
4,531
Balance as at 31 December
488
488
Introduction
The ageing of trade and other receivables (excluding prepayments) as at 31 December 2023 is as follows:
2023
Past due
In millions of
Total
Not past due
0-30 days
31-120 days
120 days
Gross
4,975
3,824
390
235
526
Allowance
(488)
(123)
(27)
(44)
(294)
4,487
3,701
363
191
232
2022
Past due
In millions of
Total
Not past due
0-30 days
31-120 days
120 days
Gross
4,534
3,378
442
259
455
Allowance
(488)
(100)
(24)
(49)
(315)
4,046
3,278
418
210
140
The movement in allowance for credit losses for trade and other receivables during the year is as follows:
Allowance for credit losses 2023 - Trade and other receivables
1,000
51
14
488
488
500
(42)
(15)
(1)
(7)
0
Other
7.2 Trade and other receivables
Trade and other receivables arise during ordinary activities, mainly relating to the sale and delivery of products to
customers.
Trade and other receivables contain a net impairment loss of €36 million (2022: €38 million) from contracts with
customers, which is included in expenses for raw materials, consumables and services.
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. Due to the macro-economic
environment and uncertainties including increasing inflationary pressure on HEINEKEN’s customers, judgement
is required in the calculation of expected credit losses. As part of these assessments, HEINEKEN has incorporated
all reasonable and supportable information available such as whether there has been a breach of payment
terms or deterioration of payment against payment terms, a request for extended payment terms or a request
for waived payment terms. For more information on HEINEKEN's credit risk exposure refer to note 11.5.
Accounting policies
Trade and other receivables are held by HEINEKEN 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.
Sustainability
Review
Financial
Statements
Other
Information
Report
of the
Supervisory
Board
Report
of the
Executive
Board
Balance
as at 1
January
Allowance
used
Allowance
released
Balance
as at 31
Heineken
N.V.
Annual
Report
2023
UP
o
uh
O
E
Effect of
movements
in exchange December
rates
Changes in Addition
consolidation to
allowance
