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59
17. TRADE RECEIVABLES (CONTINUED)
The group’s exposure to credit risk is infl uenced mainly by the individual characteristics of each customer. There is some concentration of
credit risk with certain of our large customers’ accounts. Management actively monitors the credit risk related to these customers and takes
pro-active action to reduce credit limits if required. In our Consumer business, credit risk is to some extent further mitigated by the purchase
of insurance, however it is not possible to insure all open credit exposures. Automotive, Licensing and Business Solutions customers are not
insured for credit risk.
The following summarises the movement in the allowance for doubtful trade receivables account:
(€ in thousands) 2012 2011
Balance as at 1 January – 1,814 – 3,360
Additional receivables impairment – 1,856 – 2,597
Receivables written-off during the year as uncollectible 1,163 2,166
Unused amounts reversed 635 2,025
Currency translation differences 9– 48
BALANCE AS AT 31 DECEMBER – 1,863 – 1,814
The following table sets out details of the age of trade accounts receivable that are not overdue, as the payment terms specifi ed in the
terms and conditions established with our customers have not been exceeded, and an analysis of overdue amounts and related provisions
for doubtful trade accounts receivable:
(€ in thousands) 2012 2011
Of which:
Not overdue 117,574 168,060
Overdue < 3 months 32,583 17,617
3 to 6 months 299 999
Over 6 months 1,241 77
Less provision – 1,863 – 1,814
TRADE RECEIVABLES (NET) 149,834 184,939
The provisions recorded in 2012 and 2011 are mainly related to the overdue amounts.
Trade accounts receivable include amounts denominated in the following major currencies:
(€ in thousands) 2012 2011
EUR 60,464 81,228
GBP 19,490 16,618
USD 53,772 70,072
Other 16,108 17,021
TRADE RECEIVABLES (NET) 149,834 184,939
18. OTHER RECEIVABLES AND PREPAYMENTS
(€ in thousands) 2012 2011
Prepayments 6,102 7,545
VAT and other taxes 7,599 6,410
Unbilled revenue 7,758 19,689
Deferred cost of sales 9,495 3,175
Other receivables 4,340 14,423
35,294 51,242
The carrying amount of the other receivables and prepayments approximates their fair value.