36. Receivables from customers
SELECTED ACCOUNTING PRINCIPLES
Receivables from customers include amounts invoiced and receivables classified as revenue, including revenues subject to revaluation, which have not been measured and invoiced due to the customer settlement system used. The accounting policy in the scope of accrued revenue is described in Note 15.
Receivables from customers are measured at the amounts originally invoiced or estimated, including in accordance with the methodology described in Note 55 to consolidated financial statements (taking into account the effect of discounting, if material), taking into account the revaluation allowance.
Impairment allowances are recognised for both overdue and current receivables based on probability-weighted credit loss to be incurred should any of the following events occur:
The process of estimating the allowance for receivables is divided into the following stages:
For receivables from customers, the Group separated a portfolio of strategic counterparties (a counterparty with credit exposure exceeding PLN 2 million) and a portfolio of the remaining counterparties.
For the portfolio of strategic counterparties, the risk of insolvency of strategic counterparties is assessed based on ratings assigned to the counterparties using an internal scoring model and appropriately restated to account for the probability of default. The expected credit loss, in line with IFRS 9 Financial Instruments, is calculated based on the estimated potential recoveries from security interests.
For receivables from other counterparties, historical repayment figures are expected to reflect the credit risk (including forward-looking adjustments) that will be incurred in future periods. The expected credit losses for this group of counterparties were estimated using the receivables ageing matrix and the percentage ratios assigned to the various ranges and groups (including receivables claimed at court, receivables from counterparties in bankruptcy) allowing to estimate the value of receivables from customers expected to be outstanding.
The recovery rate adopted for trade receivables from other counterparties as at 31 December 2022 is shown in the table below
| Receivables from customers | |||||
|---|---|---|---|---|---|
| Not overdue | Overdue | ||||
| <30 days | 30-90 days | 90-180 days | 180-360 days | >360 days | |
| 99.72% | 97.63% | 85.84% | 27.36% | 11.71% | 3.71% |
In order to take into account the impact of future factors (in relation to strategic and other counterparties), the Group adjusts the parameters related to the probability of default using the quotations of Credit Default Swap instruments for individual ratings. The Probability of Default is implied from the quotations of Credit Default Swap instruments over a two-year horizon and a six-month horizon, averaged for counterparties rated within a particular rating.
Revaluation allowances of receivables are recognised in such cost categories which correspond to the function of the assets component, i.e. in costs of operating activity or financial costs – depending on the type of receivables the allowance refers to.
PROFESSIONAL JUDGEMENT AND ESTIMATES
In accordance with the requirements of IFRS 9 Financial Instruments , the Group estimates impairment losses on receivables from customers attributable to expected credit losses. The allowance calculation methodology is described above.
| As at 31 December 2022 |
As at 31 December 2021 |
|
|---|---|---|
| Value of items before allowance/write-down | ||
| Receivables from buyers, of which: | 3 795 | 3 363 |
|
Additional assessment of revenue from sales of electricity and distribution services |
925 | 1 094 |
| Receivables claimed at court | 232 | 217 |
| Total | 4 027 | 3 580 |
| Allowance/write-down | ||
| Receivables from buyers | (62) | (65) |
| Receivables claimed at court | (146) | (193) |
| Total | (208) | (258) |
| Value of item net of allowance (carrying amount) | ||
| Receivables from buyers | 3 733 | 3 298 |
| Receivables claimed at court | 86 | 24 |
| Total, of which: | 3 819 | 3 322 |
| Current | 3 819 | 3 322 |
Ageing of receivables from customers as at 31 December 2022
| Past due | |||||||
|---|---|---|---|---|---|---|---|
| Not past due | < 30 days | 30-90 days | 90-180 days | 180-360 days | > 360 days | Total | |
| Value of item before allowance/write-down | 3 510 | 195 | 56 | 25 | 44 | 197 | 4 027 |
| Allowance/write-down | (17) | (5) | (9) | (17) | (31) | (129) | (208) |
| Net Value | 3 493 | 190 | 47 | 8 | 13 | 68 | 3 819 |
Ageing of receivables from customers as at 31 December 2021
| Past due | |||||||
|---|---|---|---|---|---|---|---|
| Not past due | < 30 days | 30-90 days | 90-180 days | 180-360 days | > 360 days | Total | |
| Value of item before allowance/write-down | 3 012 | 286 | 38 | 20 | 32 | 192 | 3 580 |
| Allowance/write-down | (28) | (4) | (6) | (20) | (32) | (168) | (258) |
| Net Value | 2 984 | 282 | 32 | − | − | 24 | 3 322 |
Change in allowances on receivables from customers
| Year ended 31 December 2022 |
Year ended 31 December 2021 |
|
| Opening balance | (258) | (261) |
|
Recognised |
(3) | (6) |
|
Utilized |
5 | 7 |
|
Reversed |
48 | 2 |
| Closing balance | (208) | (258) |
Breakdown of impairment losses by counterparty portfolio as at 31 December 2022
| Receiveables claimed at court | ||||
|---|---|---|---|---|
| Receiveables from buyers | Court and enforcement proceedings | Bankruptcy proceedings | Total | |
| Mass counterparties | (46) | (68) | (43) | (157) |
|
Strategic counterparties |
(16) | (17) | (18) | (51) |
| Total counterparties | (62) | (85) | (61) | (208) |
Breakdown of impairment losses by counterparty portfolio as at 31 December 2021
| Receiveables claimed at court | ||||
|---|---|---|---|---|
| Receiveables from buyers | Court and enforcement proceedings | Bankruptcy proceedings | Total | |
| Mass counterparties | (38) | (103) | (32) | (173) |
| Strategic counterparties | (27) | (18) | (40) | (85) |
| Total counterparties | (65) | (121) | (72) | (258) |