7 Trade receivables
The Bekaert Textiles, CWS-boco and ELG divisions maintain programs for the continual sale of trade receivables to third parties. In accordance with IAS 39, as a rule these transfers qualify for derecognition of the receivables in question. Nevertheless, the divisions continue to handle the servicing of the receivables sold. In some cases, the division in question also retains a portion of the credit risk, the late payment risk or exchange rate risk from the receivables it sold. Out of EUR 24 million in receivables sold (previous year: EUR 29 million), the CWS-boco division recognised at the reporting date an asset of EUR 7 million (previous year: EUR 5 million) as a continuing involvement. A corresponding liability was also recognised in the same amount. The maximum exposure to loss from the sale of receivables as at the reporting date is EUR 7 million (previous year: EUR 7 million).
As in the previous year, no trade receivables are pledged as collateral for own liabilities at the reporting date.
The table below illustrates the changes in valuation allowances for trade receivables:
|As at 1 Jan.||12||15|
|Foreign currency, changes in the scope of consolidation and other changes||3|
|As at 31 Dec.||14||12|
The valuation allowances contain individual and portfolio-based allowances. The additions to valuation allowances are reported under other operating expenses. Once a bad debt is confirmed, the valuation allowance is utilised. Subsequent cash inflows in respect of written-off receivables are recognised in profit or loss. Reversals of valuation allowances are reported under other operating income.
As at the reporting date, the trade receivables that are past due, but not impaired, are structured as follows:
|EUR million||31 Dec. 2015||31 Dec. 2014|
|Carrying amount of past due, but not impaired receivables||58||46|
|of which past due for|
|< 3 months||47||42|
|3 to 6 months||6||4|
|> 6 to 12 months||4|
|> 12 months||1|
With regard to the receivables that are past due, but not impaired, there is no indication that the debtors will not discharge their payment obligations. The same applies for receivables which are neither past due nor impaired.