TomTom 2015 Annual Report Download - page 97

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CONSOLIDATED FINANCIAL STATEMENTS
TOMTOM / ANNUAL REPORT AND ACCOUNTS 2015 / 96
The following table sets out details of the age of trade accounts receivable that are not overdue, as the payment terms specified in the
terms and conditions established with the group's customers have not been exceeded, and an analysis of overdue amounts and related
provisions for doubtful trade accounts receivable:
(€ in thousands) 2015 2014
Of which:
Not overdue 134,891 118,289
Overdue < 3 months 4,128 13,422
3 to 6 months 199 2,826
Over 6 months 3,611 2,275
less provision -4,236 -3,546
TRADE RECEIVABLES (NET) 138,593 133,266
The provisions recorded in 2015 and 2014 are mainly related to the overdue amounts.
Trade accounts receivable include amounts denominated in the following major currencies:
(€ in thousands) 2015 2014
EUR 78,923 71,358
GBP 20,764 24,785
USD 18,898 22,914
Other 20,008 14,209
TRADE RECEIVABLES (NET) 138,593 133,266
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) 2015 2014
Prepayments 21,905 12,673
VAT and other taxes 9,770 3,389
Unbilled revenue 14,150 9,475
Deferred cost of sales14,603 4,721
Other receivables 3,105 2,940
TOTAL OTHER RECEIVABLES 53,533 33,198
1. Deferred cost of sales related to cost of providing services which have been paid in advance.
The carrying amount of the other receivables and prepayments approximates their fair value.