Notes to the financial statements
26. Trade and Other Receivables
| PLN '000 | Dec 31 2010 | Dec 31 2009 |
|---|---|---|
| (restated) | ||
| Trade receivables | 1,740,890 | 1,460,751 |
| Receivables from the state budget other than corporate income tax | 39,914 | 43,103 |
| Receivables under franchise agreements, including: | 1,919 | 1,167 |
| - investment receivables under start-up packages | 1,919 | 1,167 |
| Security deposits receivable | 4,896 | 3,442 |
| Investment receivables | 2,298 | 57 |
| Other receivables (1) | 32,022 | 28,334 |
| NNet receivables | 1,821,939 | 1,536,854 |
| Impairment losses on receivables | 182,213 | 180,497 |
| Gross receivables | 2,004,152 | 1,717,351 |
(1) Including the amount relating to excise tax on inter-warehouse transfers in the amount of PLN 20,911 thousand (December 31st 2009: PLN 13,504 thousand).
The payment period for trade receivables in the regular course of business is 7–60 days. The concentration of risk related to sales is limited due to a large number of business partners.
As at December 31st 2010, the Group's receivables in the amount of PLN 2,143 thousand were subject to assignment by way of security for liabilities under loans and credit facilities (as at December 31st 2009: PLN 1,497 thousand).
Impairment Losses on Receivables
| PLN '000 | Note |
Year ended Dec 31 2010 |
Year ended Dec 31 2009 |
|---|---|---|---|
| At beginning of period | 180,497 | 155,611 | |
| Increase (1), including: | 13,481 | 44,791 | |
| - changes in Group structure | 2 | - | 21,243 |
| Reversal (2) | (5,008) | (12,980) | |
| Use, including: | (6,616) | (6,925) | |
| - changes in Group structure | - | (3,596) | |
| At end of period | 182,354 (3) | 180,497 |
(1) Including the amounts charged to other operating expenses (2010: PLN 12,556 thousand, 2009: PLN 41,758 thousand) and to interest expense under finance expenses.
(2) Including the amounts charged to other operating expenses (2010: PLN 4,827 thousand, 2009: PLN 12,980 thousand).
(3) Including an impairment loss on non-current investment receivables in the amount of PLN 141 thousand (see Note 25).
The table below presents the age analysis of past due receivables on which no impairment losses had been recognised as at December 31st 2010 and December 31st 2009.
| PLN '000 | Dec 31 2010 | Dec 31 2009 |
|---|---|---|
| Up to 1 month | 53,961 | 52,186 |
| From 1 to 3 months | 8,862 | 5,688 |
| From 3 to 6 months | 2,765 | 175 |
| From 6 months to 1 year | 261 | 2,850 |
| Over 1 year | 5,754 | 538 |
| Total | 71,603 | 61,437 |
There is no significant concentration of credit risk regarding trade receivables of the Group. As at the balance-sheet date, the Group's maximum exposure to credit risk is best represented by the carrying amounts of these instruments.
The Group manages credit risk related to the payment terms under commercial contracts using such forms of security as security (deposit) mortgage on real estate (hipoteka kaucyjna), bank and insurance guarantees, agreements on assignment of receivables or term deposits, registered pledges, promissory notes and sureties.
This is a translation of a document originally issued in Polish
The notes to the financial statements, presented on following pages, are their integral part.
