Ageing of accounts receivable
(NOK million) 31.12.2020 31.12.2019
Not due 3 263 3 243
Less than 30 days 504 612
30-60 days 274 300
60-90 days 116 134
More than 90 days 539 595
Allowance for bad debt -264 -189
Total 4 432 4 694
Accounting policy
Accounts receivables are recognised at transaction price. The Group applies a simplified approach when
accounting for expected credit losses. Therefore, the Group does not track changes in credit risk, but instead
recognises a loss allowance based on lifetime expected credit losses at period end. Allowances for bad debt are
based on an individual assessment of the trade receivable, considering all relevant information at the time of
reporting, including historical, current and future information.
Estimate and judgement
Allowances have been made for bad debt, which cover uncertain receivables to a reasonable extent. The
Management continues to assess the credit risks in order to ensure the credit risk never exceeds the allowance
for bad debt. For further description of credit risk, see Note 4.4.
3.7 OTHER CURRENT LIABILITIES
Other current liabilities are other payables, such as unpaid government charges and taxes, unpaid wages and
holiday pay and other accruals and provisions.
(NOK million) 31.12.2020 31.12.2019
Public charges and holiday pay 344 289
Received dividend from associates or joint ventures 257 323
Other accrued expenses 902 1 054
Total current provisions, ref. Note 3.8 146 370
Total 1 650 2 036
Prepaid dividends from associates or joint ventures are recognised as current liabilities until the final approval
by the General Assembly in the following year. Other accrued expenses are related to commissions, bonuses to
employees and other accrued expenses.
3.8 PROVISIONS
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Provisions consist mainly of product liability claims and environmental remediation costs related to specific cases
or events that have occurred before the year end, and where the costs involved are not certain, but based on best
estimates.
2020
(NOK million) Claims Environmental Other Total
Balance sheet 1 January 497 58 88 643
Provisions arising during the year 74 48 43 165
Utilised -249 -1 -23 -273
Unused amounts reversed -36 - -41 -76
Currency translation effects 1 - - 1
Balance as of 31 December 287 105 67 460
Current, ref. Note 3.7 90 - 56 146
Non-current 198 105 11 314
Total 287 105 67 460
2019
(NOK million) Claims Environmental Other Total
Balance sheet 1 January 443 63 49 556
Provisions arising during the year 203 4 69 276
Utilised -106 -8 -29 -143
Unused amounts reversed -46 - -2 -48
Currency translation effects 2 - 1 3
Balance as of 31 December 497 58 88 643
Current, ref. Note 3.7 291 1 78 370
Non-current 205 58 11 274
Total 497 58 88 643
Other provisions include obligations relating to ongoing restructuring programmes. The provision is expected to
be utilised within the next year.
Product liability claims are reported as other operating expenses, ref. Note 2.4.
Jotun Group
Jotun Annual Report 2020 I 31