E3. Trade receivables
AP Accounting principles
Trade receivables are recognized at amortized cost after a provision is made for doubtful receivables. The provision for doubtful receivables is based on an individual assessment of each customer. Any impairment of trade receivables affects SCA’s operating profit. SCA’s trade receivables are generally current and are not discounted.
SEKm |
2015 |
2014 |
2013 |
Trade receivables, gross |
17,132 |
17,091 |
14,570 |
Provision to reserves for doubtful receivables |
–303 |
–264 |
–218 |
Sub-total |
16,829 |
16,827 |
14,352 |
Acquisition of Vinda, see Note F6 |
– |
– |
1,068 |
BS TE3:1 Total |
16,829 |
16,827 |
15,420 |
SEKm |
2015 |
2014 |
2013 |
Trade receivables neither overdue nor impaired |
15,127 |
14,742 |
12,785 |
Trade receivables overdue but not impaired |
|
|
|
< 30 days |
1,200 |
1,513 |
1,184 |
30–90 days |
266 |
413 |
234 |
> 90 days |
236 |
159 |
149 |
Trade receivables overdue but not impaired |
1,702 |
2,085 |
1,567 |
Sub-total |
16,829 |
16,827 |
14,352 |
Acquisition of Vinda, see Note F6 |
– |
– |
1,068 |
Total |
16,829 |
16,827 |
15,420 |
SCA’s customer structure is dispersed, with customers in many different areas of business. In 2015, SCA’s ten largest customers accounted for 22.5% of the Group’s sales. The single largest customer accounted for 3.5% of sales. More information is available in the section on credit risks.
In total, the Group has collateral mainly in the form of credit insurance taken out amounting to SEK 1,593m (1,513; 2,028). Of this amount, SEK 767m (454; 459) relates to the category Trade receivables overdue but not impaired.
SEKm |
2015 |
2014 |
2013 |
Value, January 1 |
–264 |
–218 |
–190 |
Provision for possible loan losses |
–127 |
–51 |
–54 |
Confirmed losses |
71 |
14 |
7 |
Increase due to acquisitions |
– |
–9 |
– |
Decrease due to divestments |
– |
0 |
6 |
Decrease due to reversal of provisions for possible loan losses |
9 |
13 |
13 |
Translation differences |
8 |
–13 |
0 |
Value, December 31 |
–303 |
–264 |
–218 |
The expense for the period for doubtful receivables amounted to SEK –118m (–38; –41). This amount includes approximately SEK 40m pertaining to the impairment of trade receivables in Egypt due to restrictions in the Egyptian financial market.