1.6.1  SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS SECTION 1.6  Trade receivables and on-trade loans DEVELOPMENT IN IMPAIRMENT LOSSES ON RECEIVABLES 1.6.1  ACCOUNTING POLICIES Consolidated financial statements SECTION 1: OPERATING ACTIVITIES 71 Carlsberg Group Annual Report 2013 In assessing credit risk, management analy- ses the need for write-downs for bad debt  losses due to customers’ inability to pay.  Impairment losses are based on an individu- al review for impairment based on custom- ers’ creditworthiness and expected ability  to pay, customer insolvency or anticipated  insolvency, and past due amounts as well as collateral received. Management also  uses mathematically computed impairment  losses based on customer segments, histori- cal information on payment patterns, terms  of payment and concentration maturity, as  well as information about the general eco- nomic situation in the markets/countries. The financial uncertainty associated with  write-downs for bad debt losses is usually  considered to be limited. However, if the  ability to pay deteriorates in the future,  further write-downs may be necessary. outstanding balances, mainly due to adverse  economic developments. Relying on historic  payment behaviour and extensive analysis  of the underlying customers’ credit ratings,  the Group believes that the unimpaired  amounts that are past due by more than 30 days are still collectable. No significant impairment losses were  incurred in respect of individual trade  receivables or on-trade loans in 2013 and  2012. The impairment losses at 31 December  2013 relate to several minor customers that  have – in different ways – indicated that  they do not expect to be able to pay their  Receivables are measured at amortised cost less  impairment losses. Regarding loans to the on-trade, any difference  between present value and the nominal amount  at the loan date is treated as a prepaid discount  to the customer, which is recognised in the income  statement in accordance with the terms of the  agreement. The market interest rate is used as the  discount rate, corresponding to the money market  rate based on the maturity of the loan with the  addition of a risk premium. The effective interest  rate on these loans is recognised in other operating  activities, net. The amortisation of the difference  between the discount rate and the effective inter- est rate is included as a discount in revenue. Impairment losses are calculated as the difference  between carrying amount and net realisable value,  including the expected net realisable value of any  collateral provided. Objective indication of impairment is assessed  for a portfolio of receivables when no objective  indication of individual impairment losses exists.  The portfolios are based on on-trade and off-trade  customers, and on-trade receivables and loans.  The objective indications used for portfolios are  based on historical experiences and actual market  developments. With regard to loans to the on-trade, the  individual Group companies manage and  control these loans as well as standard trade  credits in accordance with Group guidelines.  Derecognition of groups of receivables, e.g.  in business combinations or other structured  transactions, is based on management’s  judgement of contractual terms and other  factors related to the transaction. DKK million 2013 Trade receivables On-trade loans Other receivables Total 2012 Total Impairment at 1 January 667 -231 -163 -1,061 -949 Impairment loss recognised -171 -101 -10 -282 -347 Realised impairment losses 115 82 3 200 194 Reversed impairments 24 23 121 168 41 Acquisition of entities -7 -7 - -14 - Impairment at 31 December -706 -234 -49 -989 -1,061