Trade and other receivables, net
|
| | | | | |
| 2017 | | 2016 |
Non-current | |
| | |
|
Trade receivables | 6,597 |
| | 1,802 |
|
Trade receivables | 6,597 |
| | 1,802 |
|
Advances to suppliers | 2,363 |
| | 1,930 |
|
Income tax credits | 6,955 |
| | 7,472 |
|
Non-income tax credits (i) | 1,863 |
| | 1,853 |
|
Judicial deposits | 3,191 |
| | 3,280 |
|
Other receivables | 1,138 |
| | 1,075 |
|
Non-current portion | 22,107 |
| | 17,412 |
|
Current | |
| | |
|
Trade receivables | 43,078 |
| | 61,546 |
|
Receivables from related parties (Note 31) | 10,218 |
| | 8,114 |
|
Less: Allowance for trade receivables | (1,002 | ) | | (643 | ) |
Trade receivables – net | 52,294 |
| | 69,017 |
|
Prepaid expenses | 11,565 |
| | 8,302 |
|
Advances to suppliers | 36,497 |
| | 21,451 |
|
Income tax credits | 2,046 |
| | 7,116 |
|
Non-income tax credits (i) | 38,865 |
| | 43,572 |
|
Cash collateral | 380 |
| | 3,546 |
|
Receivables from related parties (Note 31) | 176 |
| | 172 |
|
Other receivables | 8,284 |
| | 4,352 |
|
Subtotal | 97,813 |
| | 88,511 |
|
Current portion | 150,107 |
| | 157,528 |
|
Total trade and other receivables, net | 172,214 |
| | 174,940 |
|
(i) Includes US$ 1,086 (2016: 1,499) reclassified from Property, plant and equipment.
The fair values of current trade and other receivables approximate their respective carrying amounts due to their short-term nature. The fair values of non-current trade and other receivables approximate their carrying amount, as the impact of discounting is not significant.
The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies (expressed in US dollars):
|
| | | | | |
| 2017 | | 2016 |
Currency | |
| | |
|
US Dollar | 50,400 |
| | 54,012 |
|
Argentine Peso | 48,911 |
| | 45,641 |
|
Uruguayan Peso | 415 |
| | 762 |
|
Brazilian Reais | 72,488 |
| | 74,525 |
|
| 172,214 |
| | 174,940 |
|
As of December 31, 2017 trade receivables of US$ 5,052 (2016: US$ 14,641) were past due but not impaired. The ageing analysis of these receivables indicates that 318 and 5,264 are over 6 months in December 31, 2017 and 2016, respectively.
The Group recognizes an allowance for trade receivables when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables.
Delinquency in payments is an indicator that a receivable may be impaired. However, management considers all available evidence in determining when a receivable is impaired. Generally, trade receivables, which are more than 180 days past due are fully provided for. However, certain receivables 180+ days overdue are not provided for based on a case-by-case analysis of credit quality analysis. Furthermore, receivables, which are not 180+ days overdue, may be provided for if specific analysis indicates a potential impairment.
Movements on the Group’s allowance for trade receivables are as follows:
|
| | | | | | | | |
| 2017 | | 2016 | | 2015 |
At January 1 | 643 |
| | 481 |
| | 527 |
|
Charge of the year | 758 |
| | 387 |
| | 152 |
|
Unused amounts reversed | (133 | ) | | (178 | ) | | (27 | ) |
Used during the year | (193 | ) | | — |
| | (7 | ) |
Exchange differences | (73 | ) | | (47 | ) | | (164 | ) |
At December 31 | 1,002 |
| | 643 |
| | 481 |
|
The creation and release of allowance for trade receivables have been included in “Selling expenses” in the statement of income. Amounts charged to the allowance account are generally written off, when there is no expectation of recovering additional cash.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above.
As of December 31, 2017, approximately 89% (2016: 82%) of the outstanding unimpaired trade receivables (neither past due not impaired) relate to sales to 27 well-known multinational companies with good credit quality standing, including but not limited to Camara de Comercializacao de Energia Electrica CCEE, Louis Dreyfus Commodities Suisse S.A.T, Alimport, Czarnikow Group Limited, Establecimientos Las Marias, Mastellone Hnos.S.A., Bunge Agritrade S.A., ETG Commodities Ltd., among others. Most of these entities or their parent companies are externally credit-rated. The Group reviews these external ratings from credit agencies.
The remaining percentage as of December 31, 2017 and 2016 of the outstanding unimpaired trade receivables (neither past due nor impaired) relate to sales to a dispersed large quantity of customers for which external credit ratings may not be available. However, the total base of customers without an external credit rating is relatively stable.
New customers with less than six months of history with the Group are closely monitored. The Group has not experienced credit problems with these new customers to date. The majority of the customers for which an external credit rating is not available are existing customers with more than six months of history with the Group and with no defaults in the past. A minor percentage of customers may have experienced some non-significant defaults in the past but fully recovered.
