18. Trade receivables

Excel

(€ in thousands)

2014

2013

Gross accounts receivables

136,812

118,546

Allowance for doubtful receivables

–3,546

–3,117

TRADE RECEIVABLES (NET)

133,266

115,429

The group expects to recover all receivables within a year. An allowance has been made for estimated unrecoverable amounts from the sale of goods. The carrying amount of trade receivables approximates their fair value. The group does not hold any collateral over these balances.

The group's exposure to credit risk is influenced mainly by the individual characteristics of each customer. There is some concentration of credit risk with certain of the group's large customers' accounts. Management actively monitors the credit risk related to these customers and takes pro-active action to reduce credit limits if required.

The following table summarises the movement in the allowance for doubtful trade receivables account:

Excel

(€ in thousands)

2014

2013

BALANCE AS AT 1 JANUARY

–3,117

–1,863

Additional receivables impairment

–1,321

–2,567

Receivables written off during the year as uncollectible

837

410

Unused amounts reversed

15

654

Translation effects

40

249

BALANCE AS AT 31 DECEMBER

–3,546

–3,117

The following table sets out details of the age of trade accounts receivable that are not overdue, as the payment terms specified in the terms and conditions established with the group's customers have not been exceeded, and an analysis of overdue amounts and related provisions for doubtful trade accounts receivable:

Excel

(€ in thousands)

2014

2013

Of which:

Not overdue

118,289

94,883

Overdue < 3 months

13,422

20,594

3 to 6 months

2,826

1,463

Over 6 months

2,275

1,606

less provision

–3,546

–3,117

TRADE RECEIVABLES (NET)

133,266

115,429

The provisions recorded in 2014 and 2013 are mainly related to the overdue amounts.

Trade accounts receivable include amounts denominated in the following major currencies:

Excel

(€ in thousands)

2014

2013

EUR

71,358

57,146

GBP

24,785

12,507

USD

22,914

33,193

Other

14,209

12,583

TRADE RECEIVABLES (NET)

133,266

115,429

Accounting policy

Trade receivables are initially recognised at fair value, and subsequently measured at amortised cost (if the time value is material), using the effective interest method, less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the group will not be able to collect all amounts due, according to the original terms of the receivables. The amount of the provision is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognised in the income statement within 'Cost of sales'. When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against 'Cost of sales' in the income statement.