8.8.2
Trade and other receivables
| 2019 | 2018 | |
| € x 1,000 | € x 1,000 | |
| Trade receivables | 140,740 | 128,343 |
| Other receivables | 30,909 | 21,387 |
| Total | 171,649 | 149,730 |
Trade receivables
Trade receivables consists of:
| 2019 | 2018 | |
| € x 1,000 | € x 1,000 | |
| Trade receivables | 150,141 | 137,092 |
| Allowance for credit losses | -9,401 | -8,749 |
| Balance at 31 December | 140,740 | 128,343 |
The nominal value of the trade receivables is considered close to equal to the fair value. Trade receivables are non-interest-bearing and, depending on the season, are governed by a 30 to 150-day payment term.
The group applies the IFRS 9 simplified approach to measure expected credit losses which uses a lifetime expected loss allowance for all trade receivables. On that basis, the loss allowance was determined as follows:
| 2019 | ||||
| Weighted-average loss rate | Trade receivables - gross | Credit loss allowance | Trade receivables - net | |
| € x 1,000 | € x 1,000 | € x 1,000 | € x 1,000 | |
| Current (not past due) | -0.2% | 119,949 | -237 | 119,712 |
| Past due 0-90 days | -15.3% | 16,759 | -2,561 | 14,198 |
| Past due 91-360 days | -16.5% | 7,711 | -1,273 | 6,438 |
| Past due over 360 days | -93.2% | 5,722 | -5,330 | 392 |
| Total at 31 December | 150,141 | -9,401 | 140,740 | |
| 2018 | ||||
| Weighted-average loss rate | Trade receivables - gross | Credit loss allowance | Trade receivables - net | |
| € x 1,000 | € x 1,000 | € x 1,000 | € x 1,000 | |
| Current (not past due) | -0.2% | 108,964 | -271 | 108,693 |
| Past due 0-90 days | -2.3% | 14,259 | -329 | 13,930 |
| Past due 91-360 days | -23.5% | 6,518 | -1,531 | 4,987 |
| Past due over 360 days | -90.0% | 7,351 | -6,618 | 733 |
| Total at 31 December | 137,092 | -8,749 | 128,343 | |
The loss allowances for trade receivables reconciles to the opening loss allowances as follows:
Other receivables
The other receivables can be specified as follows:
| 2019 | 2018 | |
| € x 1,000 | € x 1,000 | |
| VAT receivable | 7,301 | 6,248 |
| Import duties receivable | 35 | - |
| Other taxes and social charges | 99 | 220 |
| Receivables from non-consolidated companies | 261 | 201 |
| Prepayments suppliers | 4,311 | 2,963 |
| Prepayments other | 1,873 | 1,937 |
| Bonus receivable | 4,841 | 4,169 |
| Receivables related to the sale of discontinued operations | 3,600 | - |
| Other current assets | 8,589 | 5,649 |
| Balance at 31 December | 30,909 | 21,387 |
Other receivables were assessed for impairment and impairment was deemed immaterial.
Accounting estimates trade receivables
For trade receivables, Accell Group applies a simplified approach to the calculation of expected credit losses by recognizing a loss allowance based on lifetime expected credit losses at each reporting date. Individually significant trade receivables are tested for impairment on an individual basis. The remaining trade receivables are assessed collectively in groups that share similar credit risk characteristics and the days past due. Accell Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.
Accell Group makes estimates in the determination of discount accruals, included in trade receivables. When discounts are provided to customers, these reduce the transaction price and consequently the revenue. The conditional discounts in revenue are estimated based on accumulated experience supported by historical and current sales information. Expected sales volumes are determined taking into account (historical) sales patterns and other relevant information. A discount accrual is recognized for expected volume and year-end discounts payable to customers in relation to sales made until the end of the reporting period.
Accounting estimates other receivables
For other receivables, Accell Group establishes an impairment loss allowance on a collective and individual assessment basis, by considering past events, current conditions and forecasts of future economic conditions using the general approach under IFRS 9.
Bonus receivables is the best estimate of the expected amount to be received from suppliers and are based on (annual) agreements. The bonus is usually a fixed or graduated percentage of the purchase value and advance payments received. When receipt of a bonus can be expected with a reasonable level of certainty, it is reflected in the carrying value of inventory or cost of goods sold.
Accounting policies
Trade and other receivables are held in order to collect the related cash flows. These receivables are measured at fair value and subsequently at amortized cost less any impairment losses. Trade and other receivables are derecognized when substantially all risks and rewards are transferred or if Accell Group does not retain control over the receivables.
Impairment losses related to financial assets are presented separately in the consolidated income statement. When Accell Group considers that there are no realistic expectations of recovering a trade receivable, the relevant amount is written off. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with Accell Group, and a failure to make contractual payments for a period longer than 360 days past due. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through profit or loss.