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
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