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NOTES
100 • Consolidated financial statements
PANDORA ANNUAL REPORT 2016
SECTION 3: INVESTED CAPITAL AND WORKING CAPITAL ITEMS, CONTINUED
TRADE RECEIVABLES
DKK million
2016
2015
Analysis of trade receivables at 31 December
Not past due
1,394
1,033
Up to 30 days
211
193
Between 30 and 60 days
41
85
Between 60 and 90 days
19
47
Over 90 days
8
2
Total past due, not impaired
279
327
Total trade receivables at 31 December
1,673
1,360
Analysis of movements in bad debt write-downs
Write-downs at 1 January
24
23
Additions
50
10
Utilised
-3
-5
Unused amounts reversed
-22
-5
Exchange rate adjustments
-1
1
Write-downs at 31 December
48
24
3.4
PANDORAs customers comprise distributors, franchisees
and consumers. While consumers pay cash, management
monitors payment patterns of the other groups of customers
and estimate the need for a write-down. Credit ratings of
customers and market specific development are taken into
account in order to assess the need for further impairment.
Historically PANDORA has not suffered any significant
losses.
Accounting policies
Trade receivables are initially recognised at fair value and
subsequently at amortised cost using the effective interest
rate method, less impairment. Any losses arising from write-
down are recognised in the income statement as sales costs.
A write-down for bad or doubtful debts is made if
there is any indication of impairment of a receivable or a
portfolio of receivables. The write-down is calculated as the
difference between the carrying amount and the present
value of estimated future cash flows associated with the
receivable. The discount rate used is the effective interest
rate for the individual receivable or portfolio of receivables
at the time of recognition.