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. Translation differences on trade receivables are recognized on the line net sales. SCA’s trade receivables are generally current and are not discounted.

Trade receivables

SEKm

2016

2015

2014

Trade receivables, gross

18,195

17,132

17,091

Provision to reserves for doubtful receivables

–384

–303

–264

BS TE3:1 Total

17,811

16,829

16,827

TE3:1 Analysis of credit risk exposure in trade receivables

SEKm

2016

2015

2014

Trade receivables neither overdue nor impaired

15,834

15,127

14,742

Trade receivables overdue but not impaired

 

 

 

< 30 days

1,439

1,200

1,513

30–90 days

297

266

413

> 90 days

241

236

159

Trade receivables overdue but not impaired

1,977

1,702

2,085

Total

17,811

16,829

16,827

SCA’s customer structure is dispersed, with customers in many different areas of business. In 2016, SCA’s ten largest customers accounted for 23.0% of SCA’s sales. The single largest customer accounted for 3.4% 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 867m (1,593; 1,513). Of this amount, SEK 59m (767; 454) relates to the category Trade receivables overdue but not impaired.

Provision to reserves for doubtful receivables

SEKm

2016

2015

2014

Value, January 1

–303

–264

–218

Provision for possible loan losses

–159

–127

–51

Confirmed losses

27

71

14

Increase due to acquisitions

–9

Decrease due to divestments

0

Decrease due to reversal of provisions for possible loan losses

56

9

13

Translation differences

–5

8

–13

Value, December 31

–384

–303

–264

The expense for the period for doubtful receivables amounted to SEK –103m (–118; –38). Of this amount, a major portion relates to bad debt losses in Greece.