26 Trade Receivables

The trade receivables break down as follows:

 

 

Impaired

 

Not impaired

 

Carrying amount

in € million

 

Gross
amount

 

Impairment losses

 

Neither impaired nor past due at the end of the reporting period

 

less than 30 days

 

between 30 and 90 days

 

between 91 and 180 days

 

between 181 and 360 days

 

more than 360 days

 

Corresponds to maximum risk of loss*

*

The maximum default risk on the receivables from the sale of properties is limited to the margin and the transaction unwinding costs as the title to the properties remains with Vonovia as security until receipt of payment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receivables from the sale of properties

 

3.5

 

-2.7

 

18.8

 

112.2

 

1.4

 

0.5

 

1.6

 

0.1

 

135.4

Receivables from property letting

 

52.3

 

-24.3

 

 

 

 

 

 

 

28.0

Other receivables from trading

 

 

 

1.0

 

 

 

 

 

 

1.0

As of Dec. 31, 2016

 

55.8

 

-27.0

 

19.8

 

112.2

 

1.4

 

0.5

 

1.6

 

0.1

 

164.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receivables from the sale of properties

 

2.6

 

-1.8

 

325.0

 

1.1

 

0.7

 

0.5

 

0.3

 

1.6

 

330.0

Receivables from property letting

 

49.3

 

-27.8

 

 

 

 

 

 

 

21.5

Other receivables from trading

 

 

 

0.7

 

 

 

 

 

 

0.7

As of Dec. 31, 2015

 

51.9

 

-29.6

 

325.7

 

1.1

 

0.7

 

0.5

 

0.3

 

1.6

 

352.2

The carrying amounts of current trade receivables correspond to their fair values.

In principle, all impaired trade receivables are due and payable. As regards the trade receivables that are neither impaired nor past due, there was no indication on the reporting date that the debtors would not meet their payment obligations.

Receivables from the sale of properties arise on economic transfer of ownership. The due date of the receivable may, however, depend on the fulfillment of contractual obligations. Some purchase contracts provide for the purchase price to be deposited in an escrow account. Impairment losses for doubtful debts are recorded up to the amount of the posted proceeds from sales.

Receivables from property letting generally arise at the beginning of a month. When determining the impairment losses on rent receivables, a difference is made with regard to rent arrears between those under terminated contracts and those under continuing rental contracts. Furthermore, with rent receivables under continuing rental contracts, a difference is made between rent arrears resulting from existing payment difficulties and product-related rent arrears based on rent increases, ancillary cost bills and withheld rents.

Impairment losses on trade receivables developed as follows:

in € million

 

Trade receivables

 

 

 

Impairment losses as of Jan. 1, 2016

 

29.6

Addition

 

24.4

Utilization

 

-26.9

Reversal

 

-0.1

Impairment losses as of Dec. 31, 2016

 

27.0

 

 

 

Impairment losses as of Jan. 1, 2015

 

20.0

Addition

 

16.6

Utilization

 

-3.3

Reversal

 

-3.7

Impairment losses as of Dec. 31, 2015

 

29.6

The following table shows the expenses for the full derecognition of receivables, as well as income from the receipt of derecognized receivables:

in € million

 

2016

 

2015

 

 

 

 

 

Expenses for the derecognition of receivables

 

1.0

 

12.9

Income from the receipt of derecognized receivables

 

2.1

 

10.2