Skip to main content

Note 12 - Trade and other receivables

 

 

 

 

$ million

 

Dec 31, 2021

Dec 31, 2020

 

Current

Non-current

Current

Non-current

Trade receivables

34,717

21,781

Lease receivables

228

1,285

186

1,380

Other receivables [A]

8,240

3,761

7,251

4,109

Amounts due from joint ventures and associates

1,048

499

726

829

Prepayments and deferred charges

8,975

1,520

3,681

1,323

Total

53,208

7,065

33,625

7,641

[A]

“Other receivables” at December 31, 2021, included current income tax receivables of $550 million and non-current income tax receivables of $366 million (2020: current income tax receivables $412 million, non-current income tax receivables $882 million).

The fair value of financial assets included above approximates the carrying amount and was determined from predominantly unobservable inputs.

Other receivables at December 31, 2021, include receivables from certain governments in their capacity as joint arrangement partners of $1,225 million (2020: $1,357 million), after provisions for impairments, that are overdue in part or in full. Recoverability and timing thereof are subject to uncertainty, however, the ultimate risk of default on the carrying amount is considered to be low.

Provisions for impairments deducted from trade and other receivables amounted to $1,497 million at December 31, 2021 (2020: $968 million).

Allowance for expected credit losses – trade receivables

Shell uses a provision matrix to calculate expected credit losses (ECLs) for trade receivables. The provision matrix is initially based on Shell’s historical observed default rates. Shell calculates the ECL to adjust the historical credit loss experienced with forward-looking information. The ECL at December 31, 2021, is $155 million (2020: $112 million), which represents 0.45-0.51% (2020: 0.27-0.51%) of all trade receivables.

A loss allowance provision of $876 million (2020: $349 million) was established, in addition to all other impairments to trade receivables as at December 31, 2021, that are outside of the provision matrix calculations.

Lease receivables

Lease contracts where Shell is the lessor are classified as finance leases or operating leases. Receivables for lease contracts classified as finance leases are as follows:

 

 

$ million

 

Dec 31, 2021

Dec 31, 2020

Less than one year

278

262

Between 1 and 5 years

852

859

5 years and later

715

852

Total undiscounted lease payments receivable

1,845

1,973

Unearned finance income

339

407

Net investment in leases

1,506

1,566

In addition, at December 31, 2021, Shell is entitled to contractual payments under operating leases of $431 million (2020: $248 million).