Trade receivables

12 Months Ended

Dec. 31, 2021

Trade And Other Receivables [Abstract]

15 Trade receivables

Trade receivables are due primarily from distributors and retailers who sell directly to end customers.

Trade receivables disaggregated by nature of the relationship with the customers are as follows:


	31/12/21			31/12/20
Third parties		38,556			34,613
Related parties		8,028			7,202
Gross trade receivables		46,584			41,815
Allowance for doubtful accounts		(5,325	)		(7,881	)
Total trade receviables		41,259			33,934

Transactions with related parties are conducted at arm’s length (see note 43).

Trade receivables by geographic region are analysed as follows:


	31/12/21			31/12/20
Italian customers		10,678			10,259
Other European customers		12,252			11,128
North American customers		7,232			5,447
Chinese customers		7,059			6,873
South American customers		4,956			3,482
Other foreign customers		4,407			4,626
Gross trade receivables		46,584			41,815
Provision for doubtful accounts		(5,325	)		(7,881	)
Total trade receivables		41,259			33,934

The following tables provide the movements in the provision for doubtful accounts for the years ended December 31, 2021 and 2020.


	31/12/21			31/12/20
Balance at beginning of year		7,881			8,699
Charges – bad debt expense		76			1,802
Reductions – write off of uncollectible amounts		(2,015	)		(1,024	)
Reductions – reversal to profit and loss		(617	)		—
Reclassification to assets held for sale		—			(1,596	)
Balance at end of year		5,325			7,881

The Parent sold trade receivables to a financial institution for cash advances (for further details, see note 30(C)(iii)). These trade receivables have not been derecognized from the statement of financial position, because the Parent retains substantially all of the risks and rewards – primarily credit risk. The amount received on their transfer has been recognised as a secured bank borrowing (see note 25). The arrangement with the financial institution is such that the customers remit cash directly to the Parent and the Parent transfers the collected amounts to the financial institution. The receivables are considered to be held within a held‑to‑collect business model consistent with the Group’s continuing recognition of the receivables.

The following information shows the reporting-date carrying amount of trade receivables that have been transferred but have not been derecognised and the associated liabilities.


	31/12/21			31/12/20
Carrying amount of trade receivables transferred		29,778			24,855
Carrying amount of associated liabilities		(26,341	)		(22,246	)
Total, net		3,437			2,609

Information about the Group’s exposure to credit risk and impairment losses for trade receivables is included in note 30(C)(ii-a).