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Note 17 • Trade and other receivables

€’000

2010

2009

Trade receivables

52,246

44,484

Other receivables

29,735

20,824

Trade and other receivables

81,981

65,308

Exposure to credit risk

The maximum exposure to credit risk for trade receivables at the reporting date by geographic region was:

Carrying amount

€’000

2010

2009

CIS & Baltics

16,205

9,109

EMEA

27,722

27,297

Latin America

6,561

6,251

Asia

1,758

1,827

52,246

44,484

Impairment losses

The aging of trade receivables at the reporting date was:

Gross

Impairment

Gross

Impairment

€’000

2010

2010

2009

2009

Not past due

43,815

471

37,691

683

Past due 21 – 180 days

10,730

3,123

9,066

2,791

Past due 181 – 360 days

4,108

3,263

3,256

2,767

Past due 12 – 18 months

3,291

3,195

3,104

2,644

Past due > 18 months

14,255

13,901

14,987

14,735

76,199

23,953

68,104

23,620

Based on experience the Group records an impairment allowance on trade receivables not past due, which usually is around 1 percent. This allowance varies from market to market depending on the latest trends in collectability of the trade receivables.

The movement in the allowance for impairment in respect of trade receivables during the year was as follows:

€’000

2010

2009

Balance at 1st of January

23,620

21,305

Impairment loss recognised

5,504

4,659

Specific debt write offs against provision

(5,171)

(2,344)

Balance at 31 December

23,953

23,620

The allowance accounts in respect of trade receivables are used to record impairment losses unless the Group is satisfied that no recovery of the amount owing is possible. At that point the amount considered irrecoverable is written off against the financial asset directly.

The impairment loss on trade receivables recognised in the consolidated income statements is included in Selling and marketing expenses.

The impact of the Impairment Iran on the respective consolidated financial statements position is disclosed in note 29.



Financial Note 17 • Trade and other receivables | Oriflame Annual Report 2010
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