LensCrafters 2013 Annual Report Download - page 121

INFORMATION ON THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CURRENT ASSETS
6. CASH AND CASH EQUIVALENTS
Cash and cash equivalents are comprised of the following items (amounts in thousands of Euro):
As of December 31
2013 2012
Cash at bank and post office 607,499 779,683
Checks 7,821 7,506
Cash and cash equivalents on hand 2,676 2,904
Total 617,995 790,093
7. ACCOUNTS RECEIVABLE
Accounts receivable consist exclusively of trade receivables and are recognized net of allowances to adjust
their carrying amount to the estimated realizable value. Accounts receivable are due within 12 months (amounts in
thousands of Euro):
As of December 31,
2013 2012
Accounts receivable 715,527 733,854
Allowance for doubtful accounts (35,231) (35,098)
Total accounts receivable 680,296 698,755
The following table shows the allowance for doubtful accounts roll-forward (amounts in thousands of Euro):
2013 2012
Balance as of January 1 35,098 35,959
Increases 5,534 3,941
Decreases (4,313) (4,212)
Translation difference and other (1,088) (590)
Balance as of December 31 35,231 35,098
The book value of the accounts receivable approximates their fair value.
As of December 31, 2013, the gross amount of accounts receivable was equal to Euro 715.5 million (Euro
733.9 million as of December 31, 2012), including an amount of Euro 23.4 million covered by insurance and other
guarantees (3.3% of gross receivables). The bad debt fund as of December 31, 2013 amounted to Euro 35.2 million
(Euro 35.1 million as of December 31, 2012).
Write-downs of accounts receivable are determined in accordance with the Group credit policy described in
Note 3 “Financial Risks.”
Accruals and reversals of the allowance for doubtful accounts are recorded within selling expenses in the
consolidated statement of income.
The maximum exposure to credit risk, as of the end of the reporting date, was represented by the fair value of
accounts receivable which approximates their carrying amount.
The Group believes that its exposure to credit risk does not call for other guarantees or credit enhancements.
The table below summarizes the quantitative information required by IFRS 7 based on the categories of
receivables pursuant to Group policies: