The total carrying value of trade and other receivables was distributed as follows.
|
|
December 31, | |
|---|---|---|
| SEK in millions | 2008 | 2007 |
| Accounts receivable |
|
|
| Invoiced receivables | 14,094 | 13,771 |
| Allowance for doubtful receivables | -968 | -729 |
| Total accounts receivable at amortized cost | 13,126 | 13,042 |
| Currency swaps, forward exchange contracts and currency options held-for-trading | 1,072 | 141 |
| Loans and receivables at amortized cost | 6,089 | 5,162 |
| Subtotal (see Categories – Note 27 and Credit risk – Note 28) | 20,287 | 18,345 |
| Other current receivables | 1,763 | 1,283 |
| Deferred expenses | 1,193 | 1,159 |
| Total trade and other receivables | 23,243 | 20,787 |
For Accounts receivable and Loans and receivables, the carrying values equal fair value as the impact of discounting is insignificant. Loans and receivables mainly comprise accrued call, interconnect and roaming charges. TeliaSonera offers a diversified portfolio of mass-market services and products in a number of highly competitive markets, resulting in a limited credit risk concentration to individual markets and customers.
For Accounts receivable and Loans and receivables, as of the balance sheet date, concentration of credit risk by geographical area and by customer segment was as follows.
|
Geographical area SEK in millions |
December 31, 2008 |
|---|---|
| Nordic countries | 13,591 |
| Baltic countries | 1,484 |
| Eurasia | 1,716 |
| Other countries | 2,424 |
| Total carrying value | 19,215 |
|
Customer segment SEK in millions |
December 31, 2008 |
|---|---|
| Residential customers | 6,278 |
| Business customers | 6,325 |
| Other operators | 5,770 |
| Distributors | 842 |
| Total carrying value | 19,215 |
The geographic concentration to the Nordic operations reflects a relatively higher share of post-paid customer contracts. In most cases, customers are billed in local currency. Receivables from and payables to other operators for international fixed-line traffic and roaming are normally settled net through clearing-houses. Refer to Notes 27 “Financial Assets and Liabilities by Category” and 28 “Financial Risk Management” for more information on financial instruments classified by category and exposed to credit risk, respectively.
As of the balance sheet date, ageing of Accounts receivable and Loans and receivables were as follows.
|
|
December 31, | |
|---|---|---|
| SEK in millions | Accounts receivable | Loans and receivables |
| Not due | 8,504 | 4,196 |
| Receivables past due but not impaired |
|
|
| Less than 30 days | 2,414 | 1,665 |
| 30 – 180 days | 1,073 | 85 |
| More than 180 days | 1,135 | 143 |
| Total past due but not impaired | 4,622 | 1,893 |
| Total carrying value | 13,126 | 6,089 |
Receivables past due as of the balance sheet date were not provided for as there had not been a significant change in credit quality and the amounts were still considered recoverable. Balances past due more than 180 days mainly referred to other operators. See also section “Credit risk management” in Note 28 “Financial Risk Management” for information on mitigation of credit risks related to accounts receivable.
Total bad debt expenses were SEK 433 million in 2008 and SEK 448 million in 2007. Recovered accounts receivable in these years were SEK 29 million and SEK 27 million, respectively.
The allowance for doubtful accounts receivable changed as follows.
|
|
December 31, | |
|---|---|---|
| SEK in millions | 2008 | 2007 |
| Opening balance | 729 | 791 |
| Provisions for receivables impaired | 254 | 345 |
| Receivables written-off as uncollectible | -24 | -336 |
| Unused amounts reversed | -50 | -77 |
| Exchange rate differences | 59 | 6 |
| Closing balance | 968 | 729 |