Changes in loans and receivables at amortised cost and their breakdown by maturity are as follows:
| (in € millions) | 2022 | 2021 |
|---|---|---|
| Beginning of period | Beginning of period20221,161 | Beginning of period20211,034 |
| Acquisitions during period |
Acquisitions during period 2022154 |
Acquisitions during period 2021142 |
| Acquisitions as part of business combinations |
Acquisitions as part of business combinations 20223 |
Acquisitions as part of business combinations 202156 |
| Impairment losses |
Impairment losses 2022(36) |
Impairment losses 2021(6) |
| Disposals during period |
Disposals during period 2022(58) |
Disposals during period 2021(71) |
| Other movements and currency translation differences |
Other movements and currency translation differences 202221 |
Other movements and currency translation differences 20216 |
| End of period | End of period20221,245 | End of period20211,161 |
| of which: |
of which: 2022
|
of which: 2021
|
| between 1 and 5 years |
between 1 and 5 years 2022287 |
between 1 and 5 years 2021307 |
| over 5 years |
over 5 years 2022958 |
over 5 years 2021855 |
Trade receivables are current financial assets and are initially measured at their fair value, which is generally their nominal value, barring any discounting effect. The Group uses the simplified approach as defined in IFRS 9, and therefore records impairment on its trade receivables to correspond with the expected credit loss at maturity.
At each balance sheet date, trade receivables are measured at their amortised cost less any impairment losses in the event of any non-recovery risks. The assessment of that risk takes into account payment delays and guarantees obtained.
The Group’s business model is to retain its trade receivables in order to collect the contractual cash flow when they fall due. However, in some cases, receivables may assigned to third parties (banks) on terms that meet IFRS 9 criteria, i.e. contractual cash flows along with substantially all of the related risks and rewards are assigned. In those cases, the receivables are derecognised.
Trade payables are current financial liabilities and are initially measured at their fair value, which is generally their nominal value, barring any discounting effect. Some Group entities have set up reverse factoring arrangements. These allow Group suppliers to assign their receivables before they fall due, and thereby receive payment earlier.
Inventories and work in progress are recognised at their cost of acquisition or of production by the entity. At each balance sheet date, they are measured at the lower of cost and net realisable value.
| Changes | ||||||
|---|---|---|---|---|---|---|
| (in € millions) | 31/12/2022 | 31/12/2021 | Business-related change in the WCR | Changes in consolidation scope | Other changes | |
| Inventories and work in progress (net) | 1,785 | 1,591 | 167 | 22 | 4 | |
| Trade and other receivables | 18,092 | 15,832 (*) | 2,068 | 171 | 22 | |
| Other current assets | 7,402 | 6,036 | 1,372 | 87 | (93) | |
| – Non-operating assets | (20) | (22) | 2 | – | – | |
| Inventories and operating receivables | I | 27,259 | 23,437 | 3,609 | 280 | (68) |
| Trade payables | (13,088) | (12,027) | (1,026) | (69) | 34 | |
| Other current liabilities | (20,315) | (16,736) | (3,718) | (88) | 228 | |
| – Non-operating liabilities | 1,661 | 450 | 1,199 | - | 12 | |
| Trade and other operating payables | II | (31,742) | (28,313) | (3,545) | (156) | 273 |
| Working capital requirement (excluding current provisions) | I+II | (4,483) | (4,876) | 64 | 124 | 205 |
| Current provisions | (6,599) | (6,123) (*) | (456) | (128) | 108 | |
| of which part at less than one year of non-current provisions | (146) | (188) | 37 | 4 | 1 | |
| Working capital requirement (including current provisions) | (11,082) | (10,998) | (392) | (4) | 313 | |
(*) Amounts adjusted following the final purchase price allocation for Cobra IS, acquired on 31 December 2021. See Note B.2, “Changes in consolidation scope in previous periods”.
(**) Mainly corresponding to cash flows relating to assets held for sale and related liabilities, along with currency translation differences.
Some Group entities, mainly in the Cobra IS business line, make use of agreements to assign accounts receivable and reverse factoring arrangements. At 31 December 2022, the amount of trade receivables assigned without recourse and derecognised was €130 million. The amount of receivables assigned by suppliers at 31 December 2022 as part of reverse factoring arrangements was €554 million. These amounts receivable from the Group are presented under trade payables.
