Body Class:
Dark Green
P11 Trade Receivables and Customer Finance
Credit risk management is governed on a Group level.
For further information, see Notes to the Consolidated Financial Statements – Note C14, “Trade Receivables and Customer Finance” and Note C20, “Financial Risk Management and Financial Instruments”.
| Trade receivables and customer finance | ||
| 2010 | 2009 | |
| Trade receivables excluding associated companies and joint ventures |
57 | 70 |
| Allowances for impairment | –24 | –37 |
| Trade receivables, net | 33 | 33 |
| Trade receivables related to associated companies and joint ventures |
3 | 9 |
| Trade receivables, total | 36 | 42 |
| Customer finance | 2,599 | 1,829 |
| Allowances for impairment | –93 | –393 |
| Customer finance, net | 2,506 | 1,436 |
| Movements in allowances for impairment | ||||
| Trade receivables | Customer finance | |||
| 2010 | 2009 | 2010 | 2009 | |
| Opening balance | 37 | 2 | 393 | 94 |
| Additions | – | 38 | – | 355 |
| Utilization | – | – | –87 | –12 |
| Reversal of excess amounts | –10 | – | –206 | –20 |
| Translation difference | –3 | –3 | –7 | –24 |
| Closing balance | 24 | 37 | 93 | 393 |
| Aging analysis as per December 31, 2010 | |||||||
| Amount | Of which neither impaired nor past due |
Of which impaired not past due |
Of which past due in the following time intervals |
Of which past due and impaired in the following time intervals |
|||
| less than 90 days |
90 days or more |
less than 90 days |
90 days or more |
||||
| Trade receivables excluding associated companies and joint ventures |
57 | 16 | – | 4 | 13 | 1 | 23 |
| Allowances for impairment of receivables | –24 | – | – | – | – | –1 | –23 |
| Trade receivables related to associated companies and joint ventures |
3 | 3 | – | – | – | – | – |
| Customer finance | 2,599 | 2,020 | 516 | 24 | – | 18 | 21 |
| Allowances for impairment of customer finance | –93 | – | –54 | – | – | –18 | –21 |
| Aging analysis as per December 31, 2009 | |||||||
| Amount | Of which neither impaired nor past due |
Of which impaired not past due |
Of which past due in the following time intervals |
Of which past due and impaired in the following time intervals |
|||
| less than 90 days |
90 days or more |
less than 90 days |
90 days or more |
||||
| Trade receivables excluding associated companies and joint ventures |
70 | 12 | – | 18 | 3 | 1 | 36 |
| Allowances for impairment of receivables | –37 | – | – | – | – | –1 | –36 |
| Trade receivables related to associated companies and joint ventures |
9 | 5 | – | 4 | – | – | – |
| Customer finance | 1,829 | 709 | 1,043 | 1 | – | 20 | 56 |
| Allowances for impairment of customer finance | –393 | – | –317 | – | – | –20 | –56 |
| Outstanding customer finance | ||
| 2010 | 2009 | |
| On-balance sheet customer finance | 2,599 | 1,829 |
| Financial guarantees for third parties | 212 | 135 |
| Total customer finance | 2,811 | 1,964 |
| Accrued interest | 34 | 18 |
| Less third-party risk coverage | –1,353 | –382 |
| Parent Company’s risk exposure | 1,492 | 1,600 |
| On-balance sheet credits, net carrying value | 2,506 | 1,436 |
| Of which short term | 1,479 | 590 |
| Credit commitments for customer finance | 1,104 | 762 |
During 2010 the Parent Company transferred certain customer finance assets to third parties, and continues to recognize a part of such assets corresponding to the extent of its continuing involvement. The total carrying amount of the original assets transferred is SEK 3,808 million, the amount of the assets that the Parent Company continues to recognize is SEK 190 million, and the carrying amount of the associated liabilities is SEK 190 million. Maturity date for major part of the issued guarantees occurs in 2019 the latest.
