Financial statements 2009

21. Trade accounts receivable

21. Trade accounts receivable

21. Trade accounts receivable
In CHF'000 31.12.2009 31.12.2008
Trade accounts receivable 302 361 355 978
Less: provision for impairment -26 754 -21 839
Trade accounts receivable related parties 6 286 11 705
     
Trade receivables – net 281 893 345 844
     
Amounts due from customers for contract work, of which kCHF -1'860 provision (2008: kCHF -1'252) 10 126 8 088
     
Total 292 019 353 932

Before accepting new customers, the Group performs a credit scoring to assess the potential customer's credit quality and defines credit limits by customer. Limits and scoring attributed are regularly reviewed. Furthermore, for low value added business deliveries, the Group usually works on a back to back basis.

The following table summarizes the movement in the provision for impairment:

In CHF'000 2009 2008
January 1 -21 839 -7 851
     
Change in scope -60
Provision for impairment charged to income statement -13 084 -16 743
Utilization 1 883 762
Reversal 6 217 1 720
Translation effects 69 333
     
December 31 -26 754 -21 839

The creation and release of provision for impairment are included in other operating expenses (sales expenses) in the income statement. Provisions recognized for the impairment of trade receivables amount to kCHF -13 084 (2008: kCHF -16 743). Amounts charged to the provision for impairment account are written-off when there is no expectation to recover additional cash.

The following table contains details of the trade accounts receivables ageing that are not overdue under the contractual payment terms and an analysis of overdue amounts that are not impaired:

In CHF'000 31.12.2009 31.12.2008
Not overdue 168 605 133 958
Past due and not impaired:    
– not more than one month 55 410 75 655
– more than one month and not more than three months 34 050 79 931
– more than three months and not more than six months 12 212 44 814
– more than six months and not more than one year 6 451 7 971
– more than one year 5 165 3 515
     
Total trade accounts receivable, net 281 893 345 844