Page 82 - InterEnergo - Annual Report 2020
P. 82

Interenergo                       Accounting report                                                                    Interenergo                       Accounting report

            2.4.7  Derivatives                                                                                                     2.4.9  Prepayments, contract assets and other assets

             in EUR                                                               31 Dec 2020     31 Dec 2019                        in EUR                                                               31 Dec 2020    31 Dec 2019
             Derivatives (assets)                                                   5,293,775       8,389,941                        Prepayments, contract assets and other assets                        11,695,507       7,437,375
               Assets relating to commodity forward contracts                        5,293,775       8,389,941                        Prepayments                                                           8,694,142       4,040,445
             Derivatives (liabilities)                                              -5,065,860     -5,865,698                         Contract assets                                                       2,500,931       2,877,577
               Assets relating to commodity forward contracts                       -5,043,303      -5,865,137                        Other assets                                                           500,435         519,353

               Assets relating to foreign currency forward contracts                  -22,557           -560
                                                                                                                                   Receivables for prepayments refer to advance payment made on the basis of electricity purchase contracts
            The value of derivatives is derived from the fair value estimate of commodity forwards with physical settlement        and guarantees provided for trading at European energy exchanges. Their value depends on the volume of
            and cross-border transmission capacity contracts related to electricity trading and foreign exchange forwards          electricity purchased at individual energy exchanges in the respective period; relative to December 2019, more
            arising from currency risk hedging, open on the reporting day. The stated assets and liabilities are to be treated     purchases of electricity at energy exchanges were recorded in December 2020, which resulted also in higher
            collectively; the assets refer to the group of contracts, whose fair value is positive, whereas the liabilities refer   relevant receivables.
            to the group of contracts, whose fair value is negative. If a contract is signed with a partner with a netting         Other assets refer to short-term deferred operating costs, primarily to the purchase of cross-border transmission
            clause, the positive and negative fair values of individual contracts with that partner are shown in a netted          capacities, annual memberships, subscriptions and insurances.
            amount for the relevant periods. In the financial year, the Company discloses expenses from the valuation of
            derivatives (commodity forward contracts) in the fair value of EUR 2,274,332 (Note 2.4.16). The effects of trading     Contract assets relate to Company’s rights to compensation for performance obligations fulfilled under
                                                                                                                                   contracts with customers. Contract assets are transferred to receivables when the right to payment becomes
            with standardized futures contracts are recorded as revenue for the period in the amount of EUR 5,271,592
            (Note 2.4.16).                                                                                                         unconditional, but after time period elapses. This occurs when the Company issues an invoice to the customer
                                                                                                                                   in accordance with the billing specifics agreed in the contract. Contract assets refer to non-charged sale of
                                                                                                                                   goods and service as the Company deferred accrued income from the December electricity sale at the year-
            2.4.8  Trade and other receivables                                                                                     end of 2020, which primarily relate to the electricity sales on power exchanges and sales of cross-border
                                                                                                                                   transmission capacities in December 2020. The value of income is based on the confirmed contracts on the
                                                                                                                                   sale of electricity including delivery in December 2020.
             in EUR                                                               31 Dec 2020     31 Dec 2019
             Trade and other receivables                                           26,029,010      26,829,824                      Contract balances relating to contracts with customers
               Trade receivables to domestic customers                               7,507,561       2,068,085

               Trade receivables to foreign customers                                7,198,009      19,524,723                       in EUR                                                               31 Dec 2020    31 Dec 2019
               Receivables to related entities                                      11,113,089       4,584,005                        Receivables include in 'Trade and other receivables'                  25,818,658     26,176,813
               Tax receivables                                                        998,645        1,447,459                        Contract assets included in 'Prepayments, contract assets and other assets'   2,500,931  2,877,577
               Other receivables                                                       -1,421           2,282                         Contract liabilities included in 'Trade and other payables'                  0              0
               Bad debt allowance                                                    -786,873        -796,731
                                                                                                                                   Changes in the value of contract assets

            Current trade receivables to customers refer to the sale of electricity and cross-border transmission capacities
            in December 2020. Trade receivables and trade payables can be set off in accordance with provisions of the               in EUR                                                                    2020            2019
            standard EFET agreement. The set-offs include receivables to domestic, foreign and related customers, who                Balance at 1 Jan                                                      2,877,577       8,957,024
            on the hand act also as suppliers.
                                                                                                                                      Increase                                                              2,500,931       2,877,577
            As at 31 December 2020, 75% of trade receivables were secured by means of credit insurance provided by an                 Transfer to receivables                                              -2,877,577      -8,957,024
            insurance company or other forms of credit insurance (2019: 69%). The Company formed EUR 1,103 of bad
            debt allowances in 2020 based on the expected credit loss model (2019: EUR 4,697).                                        (Recognition) / Reversal of impairment                                    -70               0
                                                                                                                                     Balance at 31 Dec                                                     2,500,861       2,877,577
            As at the reporting date as well as at 31 December 2019, the Company recorded no receivables to members
            of the Management Board and the Supervisory Board.

            80    Integrated Annual Report 2020                                                                                                                                                       Integrated Annual Report 2020  81
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