Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements 2.7 Capital Structure and Financial Instruments

The Company applies the low credit risk exemption allowing the Company to assume that there is no significant increase in credit risk since initial recognition of a financial instrument, if the instrument is determined to have low credit risk at the reporting date. Similarly, the Company has determined that its trade receivables and contract assets generally have low credit risk. The Company applies the simplified approach permitted by IFRS 9 of measuring expected credit losses of trade receivables and contract assets on a lifetime basis from initial recognition.

Investment grade instruments — The Company considers a significant increase in credit risk to have occurred, if there is a downgrade by four notches such that the instrument moves into a high yield bucket as a direct result of the downgrade. With respect to instruments that were high yield at initial recognition, a downgrade by four notches is considered as a significant increase in credit risk.

Stage 1

Stage 2

Stage 3

Credit impaired ECL

12 ‑ month ECL

Life ‑ time ECL

(In € million)

Total

At 1 January 2023

17.22

8.35

26.71

52.28

Change in financial assets

(0.83)

10.11

27.08

36.36

Change in risk parameters

(8.09)

4.55

(4.08)

(7.62)

At 31 December 2023

8.30

23.01

49.71

81.02

Stage 1

Stage 2

Stage 3

Credit impaired ECL

12 ‑ month ECL

Life ‑ time ECL

(In € million)

Total

At 1 January 2022

12.08

20.74

18.77

51.59

Change in financial assets

3.82

(5.44)

(1.47)

(3.09)

Change in risk parameters

1.32

(6.95)

9.41

3.78

At 31 December 2022

17.22

8.35

26.71

52.28

The following table breaks down the gross carrying amount of loans and receivables as of 31 December 2023 and 2022, separately showing those that are impaired, renegotiated or past due:

Past due > 9 and ≤ 12 months

Past due > 6 and ≤ 9 months

Past due > 3 and ≤ 6 months

Past due > 12 months Impairment

Past due ≤ 3 months

Renegotiated / not past due / not impaired

Gross impaired

Not past due

Total

(In € million)

31 December 2023

Trade receivables

3,620

0

249

410

127

101

125

452

(359)

4,725

Contract assets

1,850

0

0

0

0

0

0

0

(1)

1,849

Others

2,934

1

147

337

134

32

50

700

(191)

4,144

Total

8,404

1

396

747

260

134

175 1,152

(551)

10,717

88

Airbus

Financial Statements 2023