Accounting rules
Trade and other receivables
Trade receivables are initially recognised at the transaction price and subsequently measured at amortised cost using effective interest rates, less impairment. If there is no difference between the initial value and the amount (amounts) at maturity (maturities) (payment), interest charged using the effective rate does not apply.
Impairment of receivables is determined on the basis of expected credit losses. Expected credit losses take into account the counterparty’s previous default events as well as potential estimated credit losses. An impairment loss is recognised as cost in the statement of comprehensive income at the end of each reporting period.
Significant judgements and estimates
Impairment of trade and other receivables
Impairment of receivables is determined on the basis of expected credit losses. Expected credit losses take into account previous counterparty default events as well as potential estimated credit losses (note 38.1), Potential credit losses are estimated taking into account the type, age, and stage of recovery, with the following stages used: current receivable, overdue receivable prior to court, receivable in court or enforcement proceeding, receivable in bankruptcy or court arrangement. Receivables are written off as costs based on existing internal regulations, taking into account provisions of the Act on corporate income tax.
Trade and other receivables
| As at | ||
|---|---|---|
| 31 December 2021 | 31 December 2020 | |
| Current trade and other receivables | ||
| Trade receivables | 1 999 479 | 1 434 284 |
| Tax (excluding income tax) and other benefit receivables | 270 360 | 218 734 |
| Hedge deposits for futures transactions to purchase CO2 emission allowances | 684 270 | 285 137 |
| Other receivables | 469 829 | 325 204 |
| Advances | 4 098 | 3 082 |
| Prepaid property insurance | 13 070 | 5 345 |
| Current trade and other receivables gross | 3 441 106 | 2 271 786 |
| Minus: impairment of receivables | (128 534) | (139 595) |
| Net current trade and other receivables | 3 312 572 | 2 132 191 |
| Non-current trade and other receivables | ||
| Trade receivables | 4 172 | 3 594 |
| Collateral for futures transactions to purchase CO2 emission allowances | 67 224 | 65 142 |
| Other receivables | 3 038 | 3 645 |
| Non-current trade and other receivables gross | 74 434 | 72 381 |
| Minus: impairment of receivables | – | – |
| Net non-current trade and other receivables | 74 434 | 72 381 |
Impairment losses are mainly recognised on trade receivables.