Annual Report 2023

15. Trade debtors, accrued income and deferred costs

Accounting policies

Customers and debtor balances are amounts to be received regarding goods sold or services rendered in the ordinary course of the business. They are initially recognised at fair value, being subsequently measured at amortised cost in accordance with the effective interest rate method, net of any impairment losses (notes 2.4.1. and 2.5.).

 

 

2023

 

2022

Non-current

 

 

 

 

Other debtors

 

56

 

56

Deferred costs

 

3

 

3

Total

 

59

 

58

Current

 

 

 

 

Commercial customers

 

72

 

66

Other debtors

 

189

 

152

Other taxes receivable

 

11

 

9

Accrued income and deferred costs

 

423

 

345

Short-term investments that don’t qualify as cash equivalents

 

135

 

21

Total

 

829

 

593

Non-current debtors include €51 million (€50 million in 2022) relating to additional tax liquidation as well as pre-paid tax. The Group has already contested the amounts paid and made a legal claim for reimbursement (note 24).

The increase in other current debtors is mainly explained by advances for the acquisition of tangible fixed assets.

As of 31 December 2023, the Group had a treasury investment in the amount of €135 million, with maturities between February and May 2024, which do not qualify as a cash equivalent.

Accrued income includes basically supplementary gains contracted with suppliers, in the amount of €397 million (2022: €323 million).

The deferred costs include €5 million of rents pay in advance, €1 million of loans issued expenses, €5 million of insurance costs and €13 million of other costs attributable to future years and paid in 2023, or, if not yet paid, already charged by the entities.

Current debtors with overdue amounts are subject to an analysis of the probability of future losses, based on historical information, taking into account the nature of the commercial relationship established, as well as to existing collateral and credit insurance, with reinforcements/reversals of adjustments for impairment losses recognised when justified (see note 29.2.1.).

The ageing analysis of debtors that are past their due date is as follows:

 

 

2023

 

2022

Debtors balances not considered impaired

 

 

 

 

Less than 3 months past due

 

28

 

23

More than 3 months past due

 

8

 

11

Total

 

36

 

34

Debtors balances considered impaired

 

 

 

 

Less than 3 months past due

 

1

 

1

More than 3 months past due

 

7

 

8

Total

 

8

 

9

Of the debtors balances not considered impaired, €2 million (2022: €0.4 million) are covered by credit guarantees and credit insurance.

Movements on impairment of trade receivables are as follows:

 

 

2023

 

2022

Balance as at 1 January

 

15

 

17

Set up, reinforced and transfers

 

6

 

4

Unused and reversed

 

(6)

 

(6)

Used

 

(1)

 

(1)

Balance as at 31 December

 

14

 

15

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