BMW 2007 Annual Report Download - page 107

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Receivables that are overdue by between 1 and 30
days do not normally result in bad debt losses since
the overdue nature of the receivables is primarily at-
tributable to the timing of receipts around the month-
end. In the case of trade receivables, collateral is
generally held in the form of vehicle documents and
bank guarantees so that the risk of bad debt loss is
extremely low.
Some trade receivables were overdue for which
an impairment allowance was not recognised. Over-
due balances are catagorised into the following time
windows:
As at the end of the previous year, there were no
trade receivables at the balance sheet date which
have been renegotiated and which were otherwise
overdue or otherwise required recognition of an
impairment allowance.
in euro million 31.12. 2007 31.12. 2006
Gross carrying amount 2,717 2,335
Allowance for impairment 45 77
Net carrying amount 2,672 2,258
Allowance for impairment and credit risk
Allowances for impairment on trade receivables developed as following during the year under report:
in euro million 31.12. 2007 31.12. 2006
1 – 30 days overdue 327 473
31 – 60 days overdue 63 8
61 – 90 days overdue 24 4
91 – 120 days overdue 14 3
More than 120 days overdue 46 33
474 521
31 December 2007 Allowance for impairment recognised on a Total
in euro million specific item basis group basis
Balance at 1 January 68 9 77
Allocated/reversed – 11 2 – 9
Utilised – 18 – 4 – 22
Exchange rate impact and other changes – 1 – – 1
Balance at 31 December 38 7 45
31 December 2006 Allowance for impairment recognised on a Total
in euro million specific item basis group basis
Balance at 1 January 74 6 80
Allocated/reversed 6 3 9
Utilised – 12 – – 12
Exchange rate impact and other changes – – –
Balance at 31 December 68 9 77