Econocom - 2020 annual report

06 consolidated financial statements

notes to the consolidated financial statements

Trade receivables items are broken down below by business, net of impairment.

31 Dec. 2020

31 Dec. 2019

Recei- vables invoiced, net of impair- ment

Recei- vables invoiced, net of impair- ment

Out- standing rentals

Out- standing rentals

in € millions

Revenue accruals

Revenue accruals

Total

Total

Technology Management & Financing

254.1

2.1

356.0 612.2 354.4 6.8 389.6 750.8

Digital Services & Solutions

132.6 68.3

- 200.9 155.8 93.8

- 249.6

Total

386.7 70.4 356.0 813.2 510.2 100.6 389.6 1,000.4

At

end-2020, the

€356.0 million in portion of the €356.0 million includes not

outstandingrentals includes a portion that is self-funded or refinanced with recourse for

only self-fundedoutstandingrentals but also a portion that will be refinanced (when

a gross amount of €185.9 million, of which a refinancingagreementexists) €143.9 million is non-current. The current

Impairment of receivables Initially, receivables are impaired taking into account expected credit losses, if material: short-term receivables (mainly for the DSS • business) are impaired on the basis of an average observed risk of default. This approach is based on the default rates observedindividuallyby each of the Group’s subsidiaries; long-term receivables (mainly for the TMF • business) are impaired by taking into accountthe customer’srisk profile, the value of the underlyingassets and a probabilityof occurrence.

Subsequently, if there is serious doubt as to its recoverability, a loss allowance is recognised for the amount that is not recoverable. Following the Covid-19 pandemic, the methods for determining provisions for impairment in accordance with IFRS 9 have not been modified, but risk analyses have been carried out on each case that so required.

Reclassifi- cation under assets held for sale

31 Dec. 2019 Additions Reversals

Other changes

31 Dec. 2020

in € millions

Impairment of doubtful receivables

(63.9)

(23.7)

18.3

(0.9)

(0.6)

(70.8)

212

2020 annual report