Our results

Trade and other receivables

Accounting policy applied

Trade receivables include amounts due from customers for materials sold or services provided in the ordinary course of business of the enterprise. If a receivable can be expected to be paid within one year (or in the ordinary course of business of the enterprise, if it is longer), it is classified as current assets. Otherwise it is shown as non-current assets.

Trade receivables are initially recognized at their fair value, with the fair value at the moment of initial recognition being the nominal value resulting from issued sale invoices. After initial recognition, trade receivables and other financial receivables are measured at depreciated cost using the effective interest rate method, taking into account impairment losses. Other receivables that are not financial assets are measured as at the last day of the reporting period in the amount required to be paid.

Impairment losses for receivable value are made when objective proof exists that the Group will be unable to recover the due amounts. In line with accounting policy used, the following are created:

a) specific impairment losses:

- receivables from debtors in liquidation or bankruptcy - up to 100% of their value,

- receivables from debtors whose application for bankruptcy was rejected - up to 100% of their value,

- receivables from debtors involved in settlement or composition proceedings - up to 100% of their value,

- receivables questioned by debtor - up to 100% of their value,

- receivables from debtors involved in recovery proceedings - up to 100% of their value,

- receivables claimed in court - up to 100% of their value;

b) general impairment losses:

- receivables overdue from 6 to 12 months - up to 50% of their value,

- receivables overdue for more than 12 months - up to 100% of their value.

The amount of an impairment loss for receivable value is the difference between the current carrying amount and the recoverable value, which is lower. An impairment loss for receivables is recognized in other operating expenses.

SIGNIFICANT VALUES BASED ON PROFESSIONAL JUDGMENT AND ESTIMATES

As at the balance sheet date, the Group estimates whether objective proof of receivable item or receivable group impairment exists. If the recoverable value of an asset is lower than its balance sheet value, an impairment loss is made to bring it to the current level of planned cash flows.

Data in ths. PLN

 As at 31/12/2017 (audited)As at 31/12/2016 (audited)
Trade receivables844,834768,873
Impairment losses for trade receivables(156,028)(152,873)
 688,806616,000
   
Receivables from sale of non-financial non-current assets111-
State settlements1,6825,216
Guarantees, security deposits and bid bonds1,4741,415
VAT settlements37,27617,754
Other settlements2,0221,704
Total731,371642,089
Non-current assets1,8362,223
Current assets729,535639,866
Total731,371642,089

The trade and other receivables item includes receivables from related parties. Detailed information on trade receivables from related parties is presented in Note 30 to these Consolidated Financial Statements.

Age analysis of trade receivables

Data in ths. PLN

 As at 31/12/2017 (audited)As at 31/12/2016 (audited)
Non-overdue receivables606,299547,240
Overdue receivables  
up to 30 days59,38048,340
from 31 to 90 days15,0028,934
from 91 to 180 days3,9827,886
from 180 to 365 days1,4582,349
over 365 days2,6841,251
Total688,806616,000
Average age of receivables (days)5451

Changes of impairment losses for trade receivables

Data in ths. PLN

 As at 31/12/2017 (audited)As at 31/12/2016 (audited)
Balance at the beginning of the reporting period152,87387,252
Recognition11,43480,443
Reversal(5,173)(3,196)
Utilization(1,673)(13,380)
FX valuation(1,224)673
Foreign exchange differences resulting from translation of financial statements of foreign entities(209)1,081
Balance at the end of the reporting period156,028152,873