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Trade and Other Receivables
 12 Months Ended
Dec. 31, 2022
Text block [abstract]  
Trade and Other Receivables
17. Trade and Other Receivables
20222021
$m
$m
Current
Trade receivables3,4353,586
Construction contract assets (i)
606565
Total trade receivables and construction contract assets, gross
4,0414,151
Loss allowance
(125)(131)
Total trade receivables and construction contract assets, net
3,9164,020
Amounts receivable from equity accounted investments
3731
Prepayments269251
Other receivables
347267
Total4,5694,569

Non-current
Other receivables164239

(i)Includes unbilled revenue and retentions held by customers in respect of construction contracts at the balance sheet date amounting to $402 million and $204 million respectively (2021: $361 million and $204 million respectively). The movements in these balances during the year was as follows:


               Unbilled revenue                Retentions
2022202120222021
$m
$m
$m
$m
At 1 January
361297204202
Translation adjustment
(19)(4)(9)(1)
Additional contract balances recognised
348318144130
Invoiced in the year
(279)(239)--
Received from customers
--(135)(125)
Written off during the year
-(11)--
Disposals(9)--(2)
At 31 December
402361204204

Trade receivables, construction contract assets and deferred divestment consideration, which is included in other receivables, are measured at amortised cost (less any expected credit loss allowance) as the Group’s business model is to “hold to collect” contractual cash flows, and the cash flows arising from trade and other receivables are solely payments of principal and interest. The carrying amount of trade receivables, construction contract assets and deferred divestment consideration closely approximate their fair value.
Valuation and qualifying accounts (expected credit loss allowance)
The movements in the expected credit loss allowance for receivables during the financial year were as follows:

202220212020
$m
$m
$m
At 1 January
131140133
Translation adjustment
(8)(5)5
Disposed of during year
(5)(1)(4)
Written off during year
(19)(14)(23)
Arising on acquisition (note 30)
21-
Net remeasurement of expected credit loss allowance
241029
At 31 December
125131140
Given the common profile of CRH’s customers, how customer credit risk is managed at appropriate Group locations, and the breadth and scale of its international operations, a disclosure of concentrations of credit risk by segment best enables users of financial statements to assess CRH’s credit risk exposure. The following table sets out the gross carrying value of trade receivables and construction contract assets and expected credit loss allowance by segment:
 Trade receivables and construction contract assets, grossExpected credit loss allowance
202220212020202220212020
$m
$m
$m
$m
$m
$m
Americas Materials
1,7641,7351,475222734
Building Products (i)
914989830222523
Europe Materials
1,3631,4271,403817983
Total Group
4,0414,1513,708125131140
(i) Analysis of Building Products segment by geographic location:
Americas747821676161917
Europe167168154666
Total914989830222523

Customer credit risk is managed according to established policies, procedures and controls. Customer credit quality is assessed in line with strict credit rating criteria and credit limits are established where appropriate. Outstanding customer balances are regularly monitored for evidence of customer financial difficulties including payment default, breach of contract, etc.
Significant balances are reviewed individually while smaller balances are grouped and assessed collectively. Receivables balances are in general unsecured and non-interest-bearing. Customer credit risk arising in the context of the Group’s receivables is not significant and the total expected credit loss allowance for impairment of trade receivables and construction contract assets amounts to 3.1% of the Group’s gross trade receivables and construction contract assets (2021: 3.2%). The Group considers the ageing of past due receivables a key factor in assessing credit risk. The trade receivables and construction contract assets balances disclosed above comprise a large number of customers spread across the Group’s activities and geographies with balances classified as “not past due” representing 69% of the total gross trade receivables and
construction contract assets balance at the balance sheet date (2021: 68%). There have been no significant changes to the Group’s credit risk parameters or to the composition of the Group’s trade receivables and construction contract assets portfolio during the financial year.
The Group applies the simplified approach to providing for expected credit losses (ECL) permitted by IFRS 9 which requires expected lifetime losses to be recognised from initial recognition of the receivables. Receivables such as those which relate to bonded government contracts and receivables which fall under credit insurance are considered lower risk and would not attract a material ECL. Considering the uncertain economic outlook for the next 12 months, our ECL allowance adequately represents the risk of default on our receivables balances.
Trade receivables are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the company. Where recoveries are made, these are recognised in the Consolidated Income Statement.

Aged analysis
The aged analysis of net trade receivables and construction contract assets at the balance sheet date was as follows:

Americas Materials
Building Products
Europe Materials
Total
Americas Materials
Building Products
Europe Materials
Total
20222022202220222021202120212021
$m
$m
$m
$m
$m
$m
$m
$m
Not past due
1,2255849882,7971,1396261,0502,815
Past due:
- less than 60 days415190218823469227223919
- 60 days or greater but less than 120 days
737642191747444192
- 120 days or greater
29423410526373194
Total trade receivables, net
1,7428921,2823,9161,7089641,3484,020

Trade receivables and construction contract assets are in general receivable within 90 days of the balance sheet date.