Ageing of accounts receivable
(NOK million) 31.12.2021 31.12.2020
Not due 3 799 3 263
Less than 30 days 587 504
30-60 days 288 274
60-90 days 168 116
More than 90 days 541 539
Allowance for bad debt -264 -264
Accounts receivable 5 118 4 432
Accounting policy
Accounts receivable 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.
3.6 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) 31.12.2021 31.12.2020
Public charges and holiday pay 332 344
Received dividend from associates or joint ventures 303 257
Other accrued expenses 1 139 902
Total current provisions, ref. Note 3.7 206 146
Total 1 979 1 650
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.
3.7 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.
2021
(NOK million) Claims Environmental Other Total
Balance sheet 1 January 287 105 67 460
Provisions arising during the year 11 - 26 37
Utilised -65 - -21 -87
Unused amounts reversed -6 - -11 -17
Currency translation effects - - 1 1
Balance as of 31 December 228 105 61 394
Current, ref. Note 3.6 168 - 38 206
Non-current 60 105 24 188
Total 228 105 61 394
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 3.6 90 - 56 146
Non-current 198 105 11 314
Total 287 105 67 460
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 2.3.
Jotun Group
Jotun Annual Report 2021 I 31