Notes to the Financial Statements
Notes to the Financial Statements
continued
continued
32 Financial instruments - continued 32 Financial instruments - continued
Trade receivables
Individual receivables which are known to be uncollectible are written off by reducing the carrying amount directly. The other
receivables are assessed collectively to determine whether there is objective evidence that an impairment has been incurred but not
yet identified. For these receivables the estimated impairment losses are recognised in a separate provision for impairment.
The Group considers that there is evidence of impairment if any of the following indicators are present:
Fair value measurements using significant unobservable inputs (level 3)
The following table presents the changes in level 3 items for the years ended 31 December 2016 and 31 December 2015:
Shares in
unlisted
companies
Opening balance 1 January 2015
Additions
Derivative
financial
instruments Total
€’000 Shares in
retail holding
and
management
companies
€’000 €’000 €’000
347 15 (9,151) (8,789)
25 - - 25
- - (275) (275)
372 15 (9,426) (9,039)
Additions - - - -
Unwinding of discount - - (283) (283)
Unwinding of discount
Closing balance 31 December 2015
Reclassification on consolidation
Disposals
Closing balance 31 December 2016
- (15) - (15)
(347) - - (347)
25 - (9,709) (9,684)
• significant financial difficulties of the receivable;
• probability that the receivable will enter bankruptcy or financial reorganisation; and
• default or delinquency in payments (more than 30 days overdue).
Receivables for which an impairment provision was recognised are written off against the provision when there is no expectation of
recovering additional cash.
Impairment losses are recognised in the Income Statement within other expenses. Subsequent recoveries of amounts previously
written off are credited against other expenses.
Movements in the provision for impairment of trade receivables that are assessed for impairment collectively are as follows:
At 1 January
The available-for-sale financial instruments comprise investments in unlisted entities. As the fair value for these investments do
not have a quoted market price in an active market and fair value cannot be reliably measured, they are measured at cost less
provision for impairment.
Provision for impairment recognised during the year
Acquisitions
Receivables written off during the year as uncollectible
Unused amount reversed
Financial risk management
The Group’s operations expose it to various financial risks. The Group has a risk management programme in place which seeks to limit
the impact of these risks on the financial performance of the Group and it is the policy to manage these risks in a non-speculative manner.
The Group has exposure to the following risks from its use of financial instruments: credit risk, liquidity risk, currency risk, interest rate
risk and price risk. This note presents information about the Group’s exposure to each of the above risks and the Group’s objectives,
policies and processes for measuring and managing the risk. Further quantitative disclosures are included throughout this note.
At 31 December
The Group’s risk management is carried out by a central finance department under policies approved by the Board of directors. Group
finance identifies, evaluates and manages financial risks in close co-operation with the Group’s operating units. The Board approves
written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate
risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.
2015
€’000
4,648 14,215
831 37
2,101 -
(470) (4,973)
(453) (4,631)
6,657 4,648
2016
€’000 2015
€’000
110,271 91,755
6,555 16,229
840 7,225
The ageing of trade receivables at 31 December 2016 and 2015 was:
Not past due
Past due:
0 - 30 days
30 - 60 days
Credit risk
Credit risk arises from credit to customers, loans to customers, loans to IPOS entities, loans to retail holding companies, deferred
consideration receivable, as well as cash and cash equivalents including deposits with banks and financial institutions.
The Group manages credit risk through the use of credit limits for customers, regular review of ageing and review of customer and
bank credit ratings.
2016
€’000
60 days
Total past due
Total trade receivables
329 8,201
7,724 31,655
117,995 123,410
Provision for impairment in long term receivables is outlined in note 14.
86 | Annual Report 2016
Annual Report 2016 | 87