C17. Trade and other receivables

The total carrying value of trade and other receivables was distributed as follows.

SEK in millions

Dec 31, 2015

Dec 31, 2014

Currency swaps, forward exchange contracts and currency options held-for-trading

351

152

Subtotal (see Fair value hierarchy levels – Note C25)

351

152

Accounts receivable at amortized cost

10,549

11,724

Loans and receivables at amortized cost

3,739

4,401

Subtotal (see Categories – Note C25 and Credit risk – Note C26)

14,639

16,276

Other current receivables

667

1,022

Deferred expenses

1,784

1,789

Total trade and other receivables

17,090

19,087

Former segment region Eurasia is classified as held for sale and discontinued operations as of December 31, 2015 and therefore not included in the figures for 2015. The comparative year 2014 has not been restated. For further information, see Note C34 “Discontinued operations and assets classified as held for sale.” For accounts receivable and loans and receivables, including claims on associated companies, the carrying values equal fair value as the impact of discounting is insignificant. Loans and receivables mainly comprise accrued call, interconnect and roaming charges. TeliaSonera offers a diversified portfolio of mass-market services and products in a number of highly competitive markets, resulting in a limited credit risk concentration to individual markets and customers.

For accounts receivable and loans and receivables, as of the end of the reporting period, concentration of credit risk by geographical area and by customer segment was as follows.

SEK in millions

Dec 31, 2015

Dec 31, 2014

Geographical area

   

Nordic countries

10,862

11,223

Baltic countries

1,513

1,451

Other countries

1,913

3,451

Total carrying value

14,288

16,125

Customer segment

   

Consumers

6,520

6,084

Business customers

5,551

6,714

Other operators

2,048

3,208

Distributors

169

119

Total carrying value

14,288

16,125

The geographic concentration to the Nordic operations reflects a relatively higher share of post-paid customer contracts. In most cases, customers are billed in local currency. Receivables from and payables to other operators for international fixed-line traffic and roaming are normally settled net through clearing-houses. Refer to Note C25 “Financial assets and liabilities by category and level” and section “Credit risk management” in Note C26 “Financial risk management” for more information on financial instruments classified by category/fair value hierarchy level and exposed to credit risk, respectively.

As of the end of the reporting period, allowance for doubtful and ageing of accounts receivable, respectively, were as follows.

SEK in millions

Dec 31, 2015

Dec 31, 2014

Accounts receivable invoiced

11,710

13,203

Allowance for doubtful accounts receivable

-1,161

-1,479

Total accounts receivable

10,549

11,724

Accounts receivable not due

7,411

8,590

Accounts receivable past due but not impaired

3,138

3,134

of which less than 30 days

1,559

1,896

of which 30–180 days

647

807

of which more than 180 days

932

431

Total accounts receivable

10,549

11,724

As of the end of the reporting period, ageing of loans and receivables were as follows.

SEK in millions

Dec 31, 2015

Dec 31, 2014

Loans and receivables not due

3,332

3,838

Loans and receivables past due but not impaired

407

563

of which less than 30 days

211

521

of which 30–180 days

118

2

of which more than 180 days

78

40

Total loans and receivables

3,739

4,401

Receivables past due as of the end of the reporting period were not provided for as there had been no significant change in credit quality and the amounts were still considered recoverable. Balances past due more than 180 days mainly referred to other operators. See also section “Credit risk management” in Note C26 “Financial risk management” for information on mitigation of risks related to accounts receivable.

Total bad debt expenses were SEK 481 million in 2015 and SEK 606 million in 2014. Recovered accounts receivable in these years were SEK 266 million and SEK 63 million, respectively. Refer to Note 8 “Other operating income and expenses” for more information on recovered accounts receivable in 2015.

The allowance for doubtful accounts receivable changed as follows.

SEK in millions

Dec 31, 2015

Dec 31, 2014

Opening balance

1,479

1,549

Net of charges for doubtful receivables in the period and receivables written off

29

-127

Operations acquired and divested

3

3

Unused allowances reversed

-46

-29

Exchange rate differences

-108

83

Reclassification to assets classified as held for sale

-196

Closing balance

1,161

1,479

© TeliaSonera 2015
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