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Accounts receivable | 12 Months Ended
--- | ---
Dec. 31, 2023
Notes and other explanatory information [abstract] |
Accounts receivable | 11. Accounts receivable
Schedule of accounts receivable |  |  |
| Notes | December 31, 2023 | December 31, 2022
Receivables from contracts with customers |  |  |
Third parties |  |  |
Iron Ore Solutions |  | 3,406 | 3,132
Energy Transition Metals |  | 743 | 984
Other |  | 3 | 35
Related parties | 31 | 89 | 211
Accounts receivable |  | 4,241 | 4,362
Expected credit loss |  | (44) | (43)
Accounts receivable, net |  | 4,197 | 4,319
Provisionally priced commodities sales – The Company is mainly exposed to iron ore and copper price risk. The Company's primary exposure lies in iron ore and copper price risk. The determination of the final sales price for these commodities is based on the pricing period outlined in the sales contracts, typically occurring after the revenue recognition date. Consequently, the Company initially recognizes revenue using a provisional invoice. Subsequently, the receivables associated with provisionally priced products are measured at fair value through profit or loss (note 20). Any fluctuations in the value of these receivables are reflected in the Company's net operating revenue. The sensitivity of the Company’s risk related to the final settlement of provisionally priced accounts receivables is detailed below:
Schedule of sensitivity of the company's risk on final settlement |  |  |  |
| December 31, 2023
| Thousand metric tons | Provisional price (US$/ton) | Variation | Effect on Revenue (US$ million)
Iron ore | 29,594 | 139 | +/- 10% | +/- 412
Copper | 95 | 8,026 | +/- 10% | +/- 76
Accounting policy Accounts receivable represent the aggregate amount receivable from the sale of products and services by the Company. Initially recognized at fair value, they are subsequently measured at amortized cost using the effective interest method, except for the component of provisionally priced commodities sales that are subsequently measured at fair value through profit or loss. The Company applies the IFRS 9 - Financial Instruments simplified approach for measuring expected credit losses. This approach utilizes a lifetime expected loss allowance for all accounts receivable. A provision matrix, established by the Company, forms the basis for this measurement. The matrix incorporates historical credit loss experience, adjusted for forward-looking factors specific to the economic environment, and considers any financial guarantees associated with these accounts receivables.

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- Definition The disclosure of trade and other receivables. [Refer: Trade and other receivables] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2023-01-01 -Paragraph 10 -Subparagraph e -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_10_e&doctype=Standard -URIDate 2023-03-23 + Details
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