Working capital

  2020 2019
  € x 1,000 € x 1,000
Inventory 285,314 386,830
Trade receivables 104,006 140,740
Trade payables -137,829 -167,530
Trade working capital (TWC)
Other receivables 24,499 30,909
Other current liabilities -49,080 -43,389
Working capital


4.8.1 Inventories

  2020 2019
  € x 1,000 € x 1,000
Components for the purpose of production 168,222 193,119
Semi-finished goods 2,494 2,831
Trading and finished products 114,599 190,880
Balance at 31 December


In 2020, Accell Group wrote down inventories by € 10.1 million to lower net realisable value (2019: € 4.0 million) of which € 5.3 million is recognised as cost of materials and consumables (2019: € 1.7 million) and € 4.8 million as other operating expenses (2019: € 2.3 million). In 2020 Accell Group reversed write-downs of € 1.0 million (2019: € 1.4 million) recognised as a reduction of cost of materials and consumables of € 0.1 million (2019: € 0.1 million) and € 0.9 million as a reduction of other operating expenses (2019: € 1.3 million). At the reporting date, inventories with a carrying amount of approximately € 7.9 million (2019: € 9.3 million) were valued at lower net realisable value. Furthermore, inventories include goods in transit of € 63.8 million (2019: € 70.3 million) related to shipped goods for which Accell Group had acquired the economic ownership, but which have not yet been received.

Accounting policy

Inventories are measured at the lower of cost, using the first-in first-out (fifo) principle, and net realisable value. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and selling expenses.

4.8.2 Trade and other receivables


  2020 2019
  € x 1,000 € x 1,000
Trade receivables 104,006 140,740
Other receivables 24,499 30,909


Trade receivables

  2020 2019
  € x 1,000 € x 1,000
Trade receivables 109,932 150,141
Allowance for credit losses -5,927 -9,401
Balance at 31 December


The nominal value of trade receivables is considered close to the fair value. Trade receivables are non-interest-bearing and, depending on the season, are governed by a 30 to 150-day payment term.

The group applies the IFRS 9 simplified approach to measure expected credit losses. This uses a lifetime expected loss allowance for all trade receivables. On that basis, the loss allowance was determined as follows:


  Weighted average loss rate Trade receivables - gross Credit loss allowance Trade receivables - net
  2020 2020 2020 2020
    € x 1,000 € x 1,000 € x 1,000
Current (not past due) -0.3% 92,775 -310 92,465
Past due 0-90 days -4.5% 10,118 -456 9,661
Past due 91-360 days -25.8% 1,928 -497 1,431
Past due over 360 days -91.2% 5,112 -4,664 448
Total at 31 December



  Weighted average loss rate Trade receivables - gross Credit loss allowance Trade receivables - net
  2019 2019 2019 2019
    € x 1,000 € x 1,000 € x 1,000
Current (not past due) -0.2% 119,949 -237 119,712
Past due 0-90 days -15.3% 16,759 -2,561 14,198
Past due 91-360 days -16.5% 7,711 -1,273 6,438
Past due over 360 days -93.2% 5,722 -5,330 392
Total at 31 December


The loss allowances for trade receivables reconciles to the opening loss allowances as follows:

  2020 2019
  € x 1,000 € x 1,000
Balance at 1 January 9,401 8,749
Added through business combination - -
Amounts written off -1,978 -4,511
Credit losses recognised 1) -1,251 5,066
Effect of movement in exchange rates -245 98
Balance at 31 December
1) 2019: € 2,233 thousand is attributable to continuing operations and € 2,832 thousand is attributable to discontinued operations.

Other receivables

  2020 2019
  € x 1,000 € x 1,000
VAT receivable 2,225 7,301
Import duties receivable 2,890 35
Other taxes and social charges 482 99
Receivables from non-consolidated companies 727 261
Prepayments suppliers 3,940 4,311
Prepayments other 854 1,873
Bonus receivable 5,398 4,841
Receivables related to the sale of discontinued operations - 3,600
Other current assets 7,984 8,589
Balance at 31 December

Other receivables were assessed for impairment and impairment was deemed immaterial.


Accounting estimates trade receivables

For trade receivables, Accell Group applies a simplified approach to the calculation of expected credit losses by recognising a loss allowance based on lifetime expected credit losses at each reporting date. Individually significant trade receivables are tested for impairment on an individual basis. The remaining trade receivables are assessed collectively in groups that share similar credit risk characteristics and the days past due. Accell Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

Accell Group makes estimates in the measurement of discount accruals, included in trade receivables. When customers are given discounts, these reduce the transaction price and consequently the revenue. The conditional discounts in revenue are estimated based on accumulated experience supported by historical and current sales information. Expected sales volumes are determined taking into account (historical) sales patterns and other relevant information. A discount accrual is recognised for expected volume and year-end discounts payable to customers in relation to sales made until the end of the reporting period.

Accounting estimates other receivables

For other receivables, Accell Group establishes an impairment loss allowance on a collective and individual assessment basis, by considering past events, current conditions and forecasts of future economic conditions using the general approach under IFRS 9.

Bonus receivables are the best estimate of the expected amount to be received from suppliers and are based on (annual) agreements. The bonus is usually a fixed or graduated percentage of the purchase value and advance payments received. When receipt of a bonus can be expected with a reasonable level of certainty, it is reflected in the carrying value of inventory or cost of goods sold. 

Accounting policies

Trade and other receivables are held in order to collect the related cash flows. These receivables are measured at fair value and subsequently at amortised cost less any impairment losses. Trade and other receivables are derecognised when substantially all risks and rewards are transferred or if Accell Group does not retain control over the receivables.

Impairment losses related to financial assets are presented separately in the consolidated income statement. When Accell Group considers that there are no realistic expectations of recovering a trade receivable, the relevant amount is written off. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with Accell Group, and a failure to make contractual payments for a period longer than 360 days past due. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed through profit or loss.

4.8.3 Trade payables and other current liabilities

  2020 2019
  € x 1,000 € x 1,000
Trade payables 137,829 167,530
VAT payable 13,975 9,165
Import duties payable 473 996
Taxes on wages and social charges 4,067 3,339
Payables to non-consolidated companies 1,391 158
Personnel-related liabilities 13,249 11,625
Freight cost payable 441 438
Claims payable 228 290
Other invoices receivable 8,535 8,345
Interest and bank cost payable 639 591
Other current liabilities 6,083 8,442
Balance at 31 December


Accell Group operates one (2019: two) supply chain finance programme that enables participating suppliers to discount their invoices for earlier payment with a participating bank based on individual contractual agreements between the supplier and the participating bank. Trade payables at 31 December 2020 include an amount of € 21.4 million (2019: € 22.4 million) related to the participating suppliers.

Accounting judgement

Accell Group has analysed its supply chain finance programmes to determine whether it should derecognise its original liability, the trade payable to the supplier, and recognise a new interest-bearing liability to the bank. Based on the analysis of (a) the extinguishment criteria of the trade payable and/or (b) if the term of the trade payable had been substantially modified, Accell Group concluded that payment obligations to participating suppliers should remain in trade payables.

Accounting policy

Trade payables and other current liabilities are initially recognised at fair value (less any directly attributable transaction costs) and subsequently measured at amortised cost. A liability is recognised for the amount expected to be paid if Accell Group has a present legal or constructive obligation to pay this amount as a result of past service provided and the obligation can be reliably estimated. Trade payables and other liabilities are derecognised when the contractual obligation is either discharged or cancelled or has expired.