TomTom 2014 Annual Report Download - page 69

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Trade accounts receivable include amounts denominated in the following major currencies:
(€ in thousands) 2014 2013
EUR 71,358 57,146
GBP 24,785 12,507
USD 22,914 33,193
Other 14,209 12,583
TRADE RECEIVABLES (NET) 133,266 115,429
Accounting policy
Trade receivables are initially recognised at fair value, and subsequently measured at amortised cost (if the time value is material), using the
effective interest method, less provision for impairment. A provision for impairment of trade receivables is established 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. The amount of the
provision is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original
effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is
recognised in the income statement within 'Cost of sales'. When a trade receivable is uncollectible, it is written off against the allowance
account for trade receivables. Subsequent recoveries of amounts previously written off are credited against 'Cost of sales' in the income
statement.
19. Other receivables and prepayments
(€ in thousands) 2014 2013
Prepayments 12,673 6,247
VAT and other taxes 3,389 6,551
Unbilled revenue 9,475 11,057
Deferred cost of sales 4,721 10,969
Other receivables 2,940 3,297
TOTAL OTHER RECEIVABLES 33,198 38,121
The carrying amount of the other receivables and prepayments approximates their fair value.
20. Other financial assets/liabilities
Other financial assets/liabilities include derivative financial instruments carried at fair value through profit or loss.
2014 2013
(€ in thousands) Assets Liabilities Assets Liabilities
Derivatives at fair value through profit or loss 1,186 –23 376 –236
The notional principal amounts of the outstanding forward foreign exchange and option contracts on 31 December 2014 were €54 million
(2013: €69 million).
All the group's outstanding options and forwards have a contractual maturity of less than one year.
Accounting policy
Derivatives are initially and subsequently measured at fair value. Gains or losses arising from changes in fair value of derivatives are recognised
in the income statement, except for derivatives designated as hedging instruments, in a highly effective hedge relationship, for which cash
flow hedge accounting is applied. Transaction costs are expensed in the income statement.
21. Cash and cash equivalents
(€ in thousands) 2014 2013
Cash and equivalents 148,614 119,361
Deposits 4,335 138,424
TOTAL CASH AND CASH EQUIVALENTS 152,949 257,785
Cash and cash equivalents consist of cash held by the group partly invested in short-term bank deposits with an original maturity of three
months or less. The carrying amount of cash and cash equivalents approximates its fair value.
All cash and cash equivalents are available for immediate use by the group.
Accounting policy
Cash and cash equivalents are stated at face value and comprise cash on hand, deposits held on call with banks, and other short-term highly
liquid investments that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value.
CONTENTS OVERVIEW MANAGEMENT
BOARD REPORT CORPORATE
GOVERNANCE SUPERVISORY
BOARD REPORT FINANCIAL
STATEMENTS SUPPLEMENTARY
INFORMATION
ANNUAL REPORT AND ACCOUNTS 2014 / 69