(in millions of euros) | 31 December 2019 | 31 December 2018 |
Receivables from clients from work in progress | - | - |
Trade receivables | 445 | 305 |
Unbilled revenue | 305 | 268 |
Other taxes and social security charges | 86 | 42 |
Other receivables | 308 | 215 |
Total | 1,144 | 830 |
Trade and other receivables includes an amount of €3 million (2018: €8 million) relating to ProRail and the Dutch central government. The increase in trade and other receivables is mainly due to the start of the East Midland franchise in 2019 and increased receivables and account settlements with franchise authorities of Abellio.
Abellio ScotRail has an outstanding receivable in respect of Network Rail relating to the infrastructure works around Glasgow Queen Street Station in 2016, which still has an adverse impact on passenger numbers and revenue. Discussions are ongoing with Network Rail about the compensation to be received for lost revenues. Part of the compensation was already received in 2018. For the remaining compensation, Management recognised an estimate based on a calculation performed by an external party. As at 31 December 2019, Abellio ScotRail recorded a receivable for this, which involves significant estimation uncertainty due to the above.
The ageing of trade receivables as at the reporting date was as follows.
(in millions of euros) | 31 December 2019 | 31 December 2018 | ||
Gross | Provided for | Gross | Provided for | |
Not past due | 374 | - | 198 | - |
Past due 0-30 days | 46 | - | 86 | - |
Past due 31-120 days | 19 | 1 | 17 | 1 |
Past due 121-180 days | 3 | 1 | 1 | - |
Past due 181-360 days | 3 | 1 | 2 | 1 |
Past due more than one year | 4 | 1 | 4 | 1 |
Total | 449 | 4 | 308 | 3 |
Impairment losses
Movements in the provision for impairments of trade receivables during the year were as follows:
(in millions of euros) | 2019 | 2018 |
Balance as at 1 January | 3 | 4 |
Additions | 5 | 4 |
Use | -3 | -3 |
Release | -1 | -2 |
Balance as at 31 December | 4 | 3 |
Accounting policies
Trade and other receivables are stated at fair value plus any directly attributable transaction costs upon initial recognition. After initial recognition, they are recognised at amortised cost using the effective interest method.
The Group has formed a provision for impairment equal to the size of the estimated credit losses from trade and other receivables. The most important elements of this provision are a specific loss provision for significant individual positions and a group loss provision for groups of comparable assets concerning losses that are expected but have not yet been identified. The group loss provision is determined on the basis of historic payment data for comparable financial assets.
Provisions for trade receivables are made in the case of an impairment, unless the Group is certain that it will not be possible to recover the amount owed. In that case, the amount is considered irrecoverable and is written off directly against the financial asset concerned.
Construction contracts are stated at cost plus profit taken as at the balance sheet date, less a provision for anticipated losses and less progress billings. The cost encompasses all expenditure relating directly to specific projects and an attributable portion of the fixed and variable indirect costs incurred in connection with the contract activities, based on normal production capacity.
A receivable is created if the sum of the costs incurred (including the recognised profit or loss) exceeds the sum of the progress billings. If the sum of the costs incurred (including the recognised profit or loss) is less than the sum of the progress billings, the item is classified as a liability.
Contractual revenue and expenses arising from construction contracts are accounted for in the income statement in proportion to the stage of completion of the contract. The stage of completion is determined by ascertaining the costs of the work performed in relation to the total expected cost. As soon as the profit/loss can be reliably estimated, a proportionate part of the profit is credited to the income statement. Expected losses on contracts are recognised immediately and in full in the income statement.