4.3.19Trade and Other Receivables

Trade and other receivables (summary)

The decrease in ’Trade debtors’ of US$(108) million is mainly due to the collection of upfront payment for FPSO Prosperity.

The increase in ’Other accrued income’ is mainly due to FPSO Prosperity joining the fleet and additional accrued income on FPSO Cidade de Anchieta not yet invoiced after the re-start of operations.

The decrease in prepayments of US$(23) million is mainly related to advance payments to yards related to the new multi-purpose floater hull (MPF).

The increase in accrued income in respect of delivered orders relates to FPSO Prosperity’s finalization project, including variation orders.

The increase in ’Other receivables’ mainly relates to advance payments made in relation to the Brazilian and Guyana fleet.

The carrying amounts of the Company’s trade debtors are distributed in the following countries:

Trade debtors (countries where Company’s trade debtors are distributed)

The trade debtors balance is the nominal value less an allowance for estimated impairment losses as follows:

Trade debtors (trade debtors balance)

The allowance for impairment represents the Company’s estimate of losses in respect of trade debtors. The allowance related to credit risk for significant trade debtors is built on specific expected loss components that relate to individual exposures. Furthermore, the Company uses historical credit loss experience as well as forward-looking information to determine a 1% expected credit loss rate on individually insignificant trade receivable balances. The creation and release for impaired trade debtors due to credit risk are reported in the line item ’Net impairment losses on financial and contract assets’ of the consolidated income statement. Amounts charged to the allowance account are generally written off when there is no expectation of recovery.

The aging of the nominal amounts of the trade debtors are:

Trade debtors (aging of the nominal amounts of the trade debtors)

Not past due are those receivables for which either the contractual or ’normal’ payment date has not yet elapsed. Past due are those amounts for which either the contractual or the ’normal’ payment date has passed. Amounts that are past due but not impaired relate to a number of Company joint ventures and independent customers for whom there is no recent history of default, or the receivable amount can be offset by amounts included in current liabilities.

For the closing balance and movements during the year of allowances on trade receivables, please refer to note 4.3.27 Financial Instruments − Fair Values and Risk Management.