Financial Statements 2021

2. Notes to the IFRS Consolidated Financial Statements / 2.5 Operational Assets and Liabilities

the Consolidated Income Statement when the receivables are derecognised, impaired or amortised. Impairment and allowances of trade receivables and contract assets are measured at an amount equal to the life-time expected loss as described in “– Note 37: Financial Instruments”.

Trade receivables arise when the Company provides goods or services directly to a customer with no intention of trading the receivable. Trade receivables include claims arising from revenue recognition that are not yet settled by the debtor. Trade receivables are initially recognised at their transaction prices and are subsequently measured at amortised cost less any allowances for impairment. Gains and losses are recognised in

Contract Assets, Contract Liabilities and Trade Receivables Significant changes in contract assets and contract liabilities during the period are as follows:

2021

2020

Contract assets

Contract liabilities

Contract assets

Contract liabilities

(In € million)

Revenue recognised that was included in the contract liability balance at 1 January Increases due to cash received, excluding amounts recognised as revenue (1) Transfers from contract assets recognised at 1 January Increase as a result of changes in the measure of progress

-

(19,311)

-

(20,327)

-

17,792

-

20,915

(5,765)

- -

(4,353)

- -

6,045

4,188

(1) Including final payments received from customers and others parties in anticipation.

As of 31 December 2021, trade receivables amounting to €210 million (2020: €189 million) will mature after more than one year. The respective movement in the allowance for doubtful accounts in respect of trade receivables and contract assets during the period was as follows:

2021

2020

(In € million)

Allowance balance at 1 January

(306)

(397)

47

162

Utilisations / disposals and business combinations

Additions

(104)

(71)

Allowance balance at 31 December

(363)

(306)

2

Trade Liabilities Trade liabilities of €9,693 million (2020: €8,722 million) increased by €+971 million, mainly in Airbus. As of 31 December 2021, trade liabilities amounting to €89 million (2020: €67 million) will mature after more than one year.

23. Inventories

31 December 2021

31 December 2020

Gross amount

Write- down

Net book value

Gross amount

Write- down

Net book value

(In € million)

Raw materials and manufacturing supplies

3,773

(705)

3,068

3,934

(606)

3,328

19,553

(2,010)

17,542

21,225

(2,495)

18,730

Work in progress

5,356

(800)

4,556

5,919

(691)

5,228

Finished goods and parts for resale

3,491

(119)

3,372

3,173

(58)

3,115

Advance payments to suppliers

Total

32,173

(3,634)

28,538

34,251

(3,850)

30,401

39

Airbus / Financial Statements 2021