12 Trade receivables
|
in CHF 1,000 |
2022 |
2021 |
|
|
|
|
|
Trade receivables |
1,963,504 |
1,874,472 |
|
Less provision for impairment of trade receivables |
–18,535 |
–13,304 |
|
|
|
|
|
Total trade receivables, net |
1,944,969 |
1,861,168 |
Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days.
An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on days past due for groupings of various customer segments with similar loss patterns (i.e., geographical region and customer rating and coverage by letters of credit or other forms of credit insurance). The calculation reflects the probability weighted outcome and reasonable and supportable information that is available at the reporting date about past events, current conditions, and forecasts of future economic conditions.
The provision matrix is initially based on the group’s historical observed default rates. The group calibrates the matrix to adjust the historical credit loss experience with forward-looking information. For instance, if forecast economic conditions (i.e. gross domestic product) are expected to deteriorate over the next year which can lead to an increased number of defaults, the historical default rates are adjusted. At each reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.
The group applies the expected credit loss model under IFRS 9 and reviews its receivables periodically to determine an adequate impairment provision. Loss allowances are recognised based on lifetime ECLs at the reporting date. The aging of the receivables for the year 2022 and 2021 are as follows:
|
2022 |
|
|
|
|
in CHF 1,000 |
Expected credit loss rate |
Estimated total gross carrying amount at default |
Expected credit loss |
|
|
|
|
|
|
Not past due |
–0.1 % |
1,681,720 |
–1,507 |
|
Past due since 1–90 days |
–1.1 % |
217,727 |
–2,344 |
|
Past due since 91–180 days |
–6.9 % |
35,653 |
–2,469 |
|
Past due since 181–360 days |
–26.1 % |
16,171 |
–4,213 |
|
Past due since more than 360 days |
–65.4 % |
12,233 |
–8,002 |
|
|
|
|
|
|
Total trade receivables, gross |
–0.9 % |
1,963,504 |
–18,535 |
|
2021 |
|
|
|
|
in CHF 1,000 |
Expected credit loss rate |
Estimated total gross carrying amount at default |
Expected credit loss |
|
|
|
|
|
|
Not past due |
0.0 % |
1,616,421 |
–578 |
|
Past due since 1–90 days |
–0.5 % |
212,094 |
–996 |
|
Past due since 91–180 days |
–5.8 % |
29,899 |
–1,736 |
|
Past due since 181–360 days |
–30.8 % |
6,245 |
–1,924 |
|
Past due since more than 360 days |
–82.2 % |
9,813 |
–8,070 |
|
|
|
|
|
|
Total trade receivables, gross |
–0.7 % |
1,874,472 |
–13,304 |
Movements on the group’s provision for impairment of trade receivables are as follows:
|
|
2022 |
2021 |
|
|
|
|
|
On 1 January |
–13,303 |
–17,108 |
|
Disposal of subsidiaries |
3,247 |
– |
|
Allowance recognised |
–17,041 |
–3,436 |
|
Receivables written off during the year as uncollectible |
1,372 |
2,091 |
|
Unused amounts reversed |
6,650 |
5,116 |
|
Currency translation adjustments |
540 |
34 |
|
|
|
|
|
As of 31 December |
–18,535 |
–13,303 |
In 2022, SoftwareOne has recorded additional expected credit losses of TCHF 3,537 for receivables of clients in Russia in the consolidated income statement.