(9) Accounts Receivable – Trade

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in TEUR, at 31 December

2014

2013

Accounts receivable – trade, gross

773,032

864,772

Allowances

−172,963

−180,929

Accounts receivable – trade, net

600,068

683,843

At 31 December 2014 and 2013, accounts receivable – trade have a maturity of less than twelve months and are non-interest bearing.

In the second quarter of 2014, a new billing system interface was implemented, which enables a largely automatic calculation of unbilled revenues in order to calculate deferred revenues. Additionally by applying a separate “Revenue Assurance Software” an automatic control of these deferred revenues is being performed. Due to the development of the system, the component of estimation could be reduced and the data quality was improved. The new interface accesses directly the billing data, which no longer have to be transferred from multiple different systems and aggregated in several automated and manual interfaces anymore. This change in accounting estimate resulted in a decrease in operating revenues and a decrease in accounts receivable – trade of TEUR 47,505 in the segment Austria. According to IAS 8 it does not have any effect on following periods.

The following is a roll-forward of the allowance for doubtful accounts receivable – trade:

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in TEUR

2014

2013

At 1 January

180,929

203,451

Foreign currency adjustment

−734

−858

Change in reporting entities

1,060

814

Reversed

−6,194

−5,287

Charged to expenses

48,718

43,272

Amounts written-off

−50,816

−58,470

Reclassification

0

−1,992

At 31 December

172,963

180,929

Thereof

 

 

Specific allowance

6,638

11,156

General allowance

166,325

169,774

The ageing of accounts receivable – trade is as follows:

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Gross

Allowance

Gross

Allowance

in TEUR, at 31 December

2014

2014

2013

2013

Not yet due

523,516

6,949

600,603

8,509

Past due 0–90 days

75,178

13,493

70,106

12,158

Past due 91–180 days

19,537

12,797

25,839

11,773

Past due 181–360 days

25,026

19,910

36,289

23,756

More than one year

129,775

119,815

131,935

124,733

Total

773,032

172,963

864,772

180,929

Telekom Austria Group has grouped accounts receivable – trade according to their exposure to different risks. Corresponding to the risk involved and based on historic experience, Telekom Austria Group determines a certain percentage of accounts receivable – trade of each category as doubtful.

There is no allowance for the following accounts receivable – trade not due.

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in TEUR, at 31 December

2014

2013

Not past due without valuation allowance

209,399

239,119

As these accounts receivable – trade mainly relate to deferred marketing expenses related to customer loyalty programmes, roaming credits, deferrals related to multiple deliverables and access fees invoiced in advance, there is no risk of non-fulfilment.

Bad debt expenses mainly relate to accounts receivable – trade due from business and private customers. Accounts receivable – trade due from national and international carriers are only considered doubtful when they are past due for more than 90 days.

Telekom Austria Group has neither collateral nor insurance for its accounts receivable – trade because the credit risk is sufficiently diversified due to the large number of customers.

As of 31 December 2013, accounts receivable contained receivables amounting to TEUR 384,103 sold under civil law to a special purpose entity under the Asset Backed Securitisation (ABS) Programme which was terminated in August 2014 (see Note (33)). In accordance with IFRS 10 (“Consolidated Financial Statements” – Relevant activities and direction of relevant activities), the special purpose entity (“SPE”) was consolidated, which resulted in the recognition of the accounts receivable in Telekom Austria Group’s Consolidated Financial Statements despite their sale.

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