6.3.18Trade and Other Receivables

Trade and other receivables (summary)

Note

2015

2014

Trade debtors

287

305

Other receivables

87

125

Other prepayments and accrued income

174

249

Accrued income in respect of delivered orders

74

153

Taxes and social security

18

26

Current portion of loan to joint ventures and associates

6.3.15

66

121

Total

705

978

The decrease in other receivables and other prepayments relate to the nearing completion stage of construction of the Company’s finance lease under construction. The accrued income in respect of delivered orders come down in the period upon execution of the carry over works for FPSOs Cidade de Ilhabela and N'Goma.

The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivables as mentioned above. The Company does not hold any collateral as security.

The carrying amounts of the Company’s trade debtors are distributed in the following countries:

Trade debtors (countries where Company’s trade debtors are distributed)

2015

2014

Angola

165

144

Brazil

26

42

Equatorial Guinea

20

39

Australia

20

23

USA

14

3

Malaysia

10

16

Nigeria

8

5

Netherlands

0

1

Other

24

33

Total trade debtors

287

305

The trade debtors balance is the nominal value less an allowance for estimated impairment losses as follows:

Trade debtors (trade debtors balance)

2015

2014

Nominal amount

297

318

Impairment allowance

(10)

(13)

Total trade debtors

287

305

The allowance for impairment represents the Company’s estimate of losses in respect of trade debtors. The allowance is built on specific expected loss components that relate to individual exposures. The creation and release for impaired trade debtors have been included in gross margin in the income statement. Amounts charged to the allowance account are generally written off when there is no expectation of recovery. The other classes within the trade and other receivables do not contain allowances for impairment.

The ageing of the nominal amounts of the trade debtors are:

Trade debtors (ageing of the nominal amounts of the trade debtors)

2015

2014

Nominal

Impairment

Nominal

Impairment

Not past due

59

-

114

0

Past due 0-30 days

50

-

29

-

Past due 31-120 days

54

-

80

(2)

Past due 121- 365 days

60

0

73

(2)

More than one year

74

(10)

23

(8)

Total

297

(10)

318

(13)

Not past due are those receivables for which either the contractual or ‘normal’ payment date has not yet elapsed. Past due are those amounts for which either the contractual or the ‘normal’ payment date has passed. Amounts that are past due but not impaired relate to a number of Company Joint ventures and independent customers for whom there is no recent history of default or the receivable amount can be offset by amounts included in current liabilities.

The increase of trade debtors aged more than one year mostly relates to one contract for which some legal documents pending signature temporarily prevent the joint venture to settle the Company’s receivable.