C17. Trade and other receivables

The total carrying value of trade and other receivables was distributed as follows.

SEK in millions

Dec 31, 2016

Dec 31, 2015

Currency swaps, forward exchange contracts and currency options held-for-trading

259

351

Subtotal (see Fair value hierarchy levels – Note C25)

259

351

Accounts receivable at amortized cost

9,676

10,549

Loans and receivables at amortized cost

3,735

3,739

Subtotal (see Categories – Note C25 and Credit risk – Note C26)

13,670

14,639

Other current receivables

1,021

667

Deferred expenses

2,147

1,784

Total trade and other receivables

16,839

17,090

For accounts receivable and loans and receivables, including claims on associated companies, the carrying values equal fair value as the impact of discounting is insignificant. Loans and receivables mainly comprise accrued call, interconnect and roaming charges. Telia Company offers a diversified portfolio of mass-market services and products in a number of highly competitive markets, resulting in a limited credit risk concentration to individual markets and customers.

For accounts receivable and loans and receivables, as of the end of the reporting period, concentration of credit risk by geographical area and by customer segment was as follows.

SEK in millions

Dec 31, 2016

Dec 31, 2015

Geographical area

   

Nordic countries

10,726

10,862

Baltic countries

1,765

1,513

Other countries

920

1,913

Total carrying value

13,411

14,288

Customer segment

   

Consumers

3,737

6,520

Business customers

7,532

5,551

Other operators

1,947

2,048

Distributors

195

169

Total carrying value

13,411

14,288

The geographic concentration to the Nordic operations reflects a relatively higher share of post-paid customer contracts. In most cases, customers are billed in local currency. Receivables from and payables to other operators for international fixed-line traffic and roaming are normally settled net through clearing-houses. Refer to Note C25 “Financial assets and liabilities by category and level” and section “Credit risk management” in Note C26 “Financial risk management” for more information on financial instruments classified by category/fair value hierarchy level and exposed to credit risk, respectively.

As of the end of the reporting period, allowance for doubtful and ageing of accounts receivable, respectively, were as follows.

SEK in millions

Dec 31, 2016

Dec 31, 2015

Accounts receivable invoiced

10,517

11,710

Allowance for doubtful accounts receivable

-841

-1,161

Total accounts receivable

9,676

10,549

Accounts receivable not due

7,062

7,411

Accounts receivable past due but not impaired

2,614

3,138

of which less than 30 days

1,798

1,559

of which 30–180 days

640

647

of which more than 180 days

176

932

Total accounts receivable

9,676

10,549

As of the end of the reporting period, ageing of loans and receivables were as follows.

SEK in millions

Dec 31, 2016

Dec 31, 2015

Loans and receivables not due

3,518

3,332

Loans and receivables past due but not impaired

217

407

of which less than 30 days

123

211

of which 30–180 days

67

118

of which more than 180 days

27

78

Total loans and receivables

3,735

3,739

Receivables past due as of the end of the reporting period were not provided for as there had been no significant change in credit quality and the amounts were still considered recoverable. See also section “Credit risk management” in Note C26 “Financial risk management” for information on mitigation of risks related to accounts receivable.

Total bad debt expenses were SEK 455 million in 2016, excluding assets classified as held for sale, and SEK 481 million in 2015. Recovered accounts receivable were SEK 21 million in 2016, excluding assets classified as held for sale, and SEK 266 million in 2015. Refer to Note C8 “Other operating income and expenses” for more information on recovered accounts receivables.

The allowance for doubtful accounts receivable changed as follows.

SEK in millions

Dec 31, 2016

Dec 31, 2015

Opening balance

1,161

1,479

Net of charges for doubtful receivables in the period and receivables written off

-47

29

Operations acquired and divested

-303

3

Unused allowances reversed

-18

-46

Exchange rate differences

48

-108

Reclassification to assets classified as held for sale

-196

Closing balance

841

1,161