Page 83 - InterEnergo - Annual Report 2020
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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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