Note 15 - Trade and other receivables
|
|
|
|
$ million |
|---|---|---|---|---|
|
Dec 31, 2023 |
Dec 31, 2022 |
||
|
Current |
Non-current |
Current |
Non-current |
Trade receivables |
36,273 |
— |
39,334 |
— |
Lease receivables |
188 |
1,032 |
206 |
1,090 |
Other receivables |
9,642 |
2,801 |
9,737 |
3,247 |
Amounts due from joint ventures and associates |
1,014 |
278 |
2,722 |
423 |
Prepayments and deferred charges |
6,156 |
2,187 |
14,511 |
2,160 |
Total |
53,273 |
6,298 |
66,510 |
6,920 |
The fair value of financial assets included above approximates the carrying amount and was determined from predominantly unobservable inputs.
Other receivables at December 31, 2023, included receivables from certain governments in their capacity as joint arrangement partners of $296 million (2022: $717 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. Other receivables at December 31, 2023, also included current income tax receivables of $558 million (2022: $363 million) and non-current income tax receivables of $568 million (2022: $469 million).
Current prepayments and deferred charges at December 31, 2023, mainly decreased compared to prior year due to lower gas and power prices and a lower outstanding collateral position.
Provisions for impairments deducted from trade and other receivables amounted to $1,251 million at December 31, 2023 (2022: $1,510 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, 2023, was $185 million (2022: $214 million), which represents 0.51-0.54% (2022: 0.45-0.54%) of all trade receivables.
A loss allowance provision of $415 million (2022: $841 million) was established in addition to all other impairments to trade receivables as at December 31, 2023, 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, 2023 |
Dec 31, 2022 |
Less than one year |
238 |
257 |
Between 1 and 5 years |
848 |
792 |
5 years and later |
453 |
532 |
Total undiscounted lease payments receivable |
1,539 |
1,581 |
Unearned finance income |
260 |
270 |
Net investment in leases |
1,279 |
1,311 |
In addition, at December 31, 2023, Shell is entitled to future contractual payments under operating leases of $312 million (2022: $389 million).
