12. Trade Receivables

Audited information

in CHF m

 

31.12.2019

 

31.12.2018

Gross accounts receivable – trade

 

963

 

996

Gross accounts receivable – associates and joint ventures

 

25

 

26

Less: provision for doubtful accounts receivable

 

–5

 

–5

Total trade receivables – net

 

983

 

1 017

Reclassified to held for sale (see )

 

–303

 

Total as reported in the balance sheet

 

680

 

1 017

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

in CHF m

 

2019

 

2018

As per 1 January

 

–5

 

–16

Charged to the income statement

 

–7

 

–13

Amounts used

 

3

 

4

Unused amounts reversed

 

3

 

18

Exchange rate differences

 

1

 

2

At 31 December

 

–5

 

–5

Reclassified to held for sale (see )

 

–1

 

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 (2019: CHF 2 million, 2018: CHF 2 million).

The loss allowance for trade receivables as at 31 December 2019 and 2018 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 2019

 

 

 

 

 

 

 

 

 

 

 

 

Expected loss rate (in %)

 

0.41

 

1.95

 

2.12

 

4.06

 

 

 

 

Gross carrying amount trade receivables

 

948

 

18

 

9

 

13

 

 

988

Loss allowance

 

4

 

 

 

1

 

 

5

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

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

in CHF m

 

31.12.2019

 

31.12.2018

EUR

 

337

 

384

USD

 

330

 

300

CNY

 

63

 

64

BRL

 

46

 

45

JPY

 

25

 

35

INR

 

36

 

39

Other

 

146

 

150

Total trade receivables – net

 

983

 

1 017

Reclassified to held for sale (see )

 

–303

 

Total as reported in the balance sheet

 

680

 

1 017

As of 31 December 2019, »Total trade receivables – net« include an amount of CHF 110 million (2018: CHF 145 million) past due, but not impaired. These relate to a number of customers for whom there is no recent history of default.

IFRS

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