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 |