11. Trade Receivables

Audited information

in CHF m

 

31.12.2018

 

31.12.2017

Gross accounts receivable – trade

 

996

 

1 144

Gross accounts receivable – associates and joint ventures

 

26

 

18

Less: provision for doubtful accounts receivable

 

–5

 

–16

Total

 

1 017

 

1 146

The following summarizes the movement in the provision for doubtful accounts receivable:

in CHF m

 

2018

 

2017

As per 1 January

 

–16

 

–30

Charged to the income statement

 

–13

 

–18

Amounts used

 

4

 

4

Acquired in business combinations

 

 

–1

Unused amounts reversed

 

18

 

29

Exchange rate differences

 

2

 

At 31 December

 

–5

 

–16

There is no concentration of credit risk with respect to trade receivables, as the Group has a large number of internationally dispersed customers.

The Group applies the  9 simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance for all trade receivables within stage 1 and 2. The estimated expected loss rates are based on historical credit losses and are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Group recognizes impairment of trade receivables in »Selling, general and administrative costs« in the income statement.

The maximum credit risk on trade receivables is equal to their fair value.

Collaterals are only required in rare cases (2018: CHF 2 million, 2017: CHF 2 million).

The loss allowance for trade receivables as at 31 December 2018 and 1 January 2018 (on adoption of IFRS 9) was determined as follows:

in CHF m

Current

30 – 60 days overdue

61 – 90 days overdue

More than 90 days overdue

Individually Impaired

Total

31 December 2018

 

 

 

 

 

 

Expected loss rate (in %)

0.34

1.64

1.77

2.66

 

 

Gross carrying amount trade receivables

947

12

6

57

1 022

Loss allowance

3

2

5

in CHF m

Current

30 – 60 days overdue

61 – 90 days overdue

More than 90 days overdue

Individually Impaired

Total

1 January 2018

 

 

 

 

 

 

Expected loss rate (in %)

0.47

2.00

2.16

2.18

 

 

Gross carrying amount trade receivables

1 060

19

7

67

9

1 162

Loss allowance

5

2

9

16

The carrying amounts of the Group’s trade receivables are denominated in the following currencies:

in CHF m

 

31.12.2018

 

31.12.2017

EUR

 

384

 

410

USD

 

300

 

391

CNY

 

64

 

89

BRL

 

45

 

55

JPY

 

35

 

39

INR

 

39

 

28

Other

 

150

 

134

Total

 

1 017

 

1 146

As of 31 December 2018, »Total trade receivables – net« include an amount of CHF 145 million (2017: CHF 141 million) past due, but not impaired. These relate to a number of customers for whom there is no recent history of default.

IFRS

The International Financial Reporting Standards (IFRS) are international accounting standards. View entire glossary

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