4.2 CURRENT TRADE AND OTHER RECEIVABLES

The detail of “Current Trade and Other Payables” at 31 December 2017 and 2016 is as follows:

a) Trade receivables for sales and services

The detail of “Trade Receivables for Sales and Services” at 31 December 2017 and 2016 is as follows:

“Trade Receivables for Sales and Services” decreased by EUR 161 million from EUR 2,193 million at 31 December 2016 to EUR 2,032 million at 31 December 2017. This change is explained fundamentally by:

• The early application of IFRS 15 (see Note 1.3, Accounting policies), which gave rise to a reduction in the balance of “Trade Receivables for Sales and Services” of EUR 292 million.
• The exchange rate effect, which reduced the balance of this line item by EUR 53 million. This reduction is a result mainly of the fall in value of the main currencies in which the Group operates (except for the Polish zloty, which had a positive impact of EUR 10 million).
• The remainder of the change is explained mainly by the increase in this line item in Construction Poland (EUR +79 million) and Services UK (EUR +58 million).

Also, at 31 December 2017 a total of EUR 88 million had been deducted from “Trade Receivables for Sales and Services” relating to assets derecognised as a result of factoring arrangements, since it was considered that they met the conditions stipulated in IAS 39.20 regarding the derecognition of financial assets (31 December 2016: EUR 84 million).

Following is a detail, by type of debtor, of the main trade receivables:

This detail shows that 60% of the Group’s customers are public authorities and the rest are private sector customers.

In order to manage credit risk relating to private sector customers, the Group has implemented pre- and post-contracting measures. Pre-contracting measures include the consultation of debtor registers, ratings and solvency studies, while post-contracting measures during the execution of construction work include the follow-up of contractual incidents, non-payment events, etc.

The changes in the write-down of trade receivables were as follows:

Group management considers that the carrying amount of trade receivables approximates their fair value.

b) Other receivables

The detail of “Other Receivables” at 31 December 2017 and 2016 is as follows:

“Sundry Accounts Receivable” includes mainly receivables not relating to normal business activities. There are no items included in the change that are material taken individually.

Also, “Accounts Receivable Relating to Infrastructure Projects” includes current financial assets arising from the application of IFRIC 12 relating mainly to amounts receivable from public authorities in return for services rendered or investments made under a concession arrangement, as detailed in Note 3.3. The main change in this heading arose as a result of the payments made by public authorities of balances payable to Autema of EUR 52 million.

Lastly, “Receivable from Public Authorities” includes tax receivables from public authorities other than income tax receivables.