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3. Notes

25. Trade and other receivables

25. Trade and other receivables

€ million

2020

2019

Trade receivables

758

700

Less: provision for impairment

- 16

- 14

Trade receivables – net

742

686

VAT receivable

38

40

Interest receivables

9

12

Prepaid expenses

140

129

Accrued income

0

0

Other receivables

84

62

Royalty receivables

18

21

Trade and other receivables

1 031

950

The carrying amount of trade and other receivables approximates their fair values. With respect to trade receivables, the fair value is estimated to be the carrying amount less the provision for impairment and for all other receivables the carrying value approximates fair value given the short-term maturity of these amounts.

There is some concentration of credit risk with respect to trade receivables. For some credit exposures in critical countries, such as the Southern European countries, the Group obtained credit insurance. The Group co-operates with dedicated wholesalers in certain countries. The largest outstanding trade receivable in 2020 from a single customer is 14% (2019: 15%) from McKesson Corp. U.S..

The aging analysis of the Group trade receivables at year-end is as follows:

 

2020

2019

€ million

Gross carrying amounts

Impairment

Gross carrying amounts

Impairment

Not past due

682

0

678

0

Past due – less than one month

51

0

7

0

Past due more than one month and not more than three months

9

- 3

3

0

Past due more than three months and not more than six months

4

0

4

0

Past due more than six months and not more than one year

3

- 8

1

- 5

Past due more than one year

9

- 5

7

- 9

Total

758

- 16

700

- 14

Based on historical default rates, the Group believes that no provision for impairment is necessary in respect of trade receivables not past due. This concerns 91% (2019: 96%) of the outstanding balance at the statement of financial position date.

The movement in the provision for impairment in respect of trade receivables is shown below:

€ million

2020

2019

Balance at January 1

- 14

- 9

Impairment charge recognized in the income statement

- 7

- 4

Utilization/reversal of provision for impairment

3

0

Effects of movements in exchange rates

2

- 1

Balance at December 31

- 16

- 14

The other classes within trade and other receivables do not contain impaired assets.

The carrying amounts of the Group trade and other receivables are denominated in the following currencies:

€ million

2020

2019

EUR

327

296

USD

382

359

JPY

120

66

GBP

45

57

CNY

37

39

CHF

15

14

KRW

8

9

Other currencies

97

110

Trade and other receivables

1 031

950

The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable mentioned above.

The Group does not hold any collateral as security.