Note 7. Accounts Receivable, Net
| December 31, 2017 |
December 31, 2016 |
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Trade receivables |
Ps. | 26,856 | Ps. | 22,177 | ||||
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Allowance for doubtful accounts |
(1,375 | ) | (1,193 | ) | ||||
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The Coca-Cola Company (see Note 14) |
2,054 | 1,857 | ||||||
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Loans to employees |
128 | 229 | ||||||
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Other related parties |
— | 254 | ||||||
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Heineken Group (see Note 14) |
999 | 1,041 | ||||||
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Former shareholders of Vonpar (see Note 14) |
1,219 | — | ||||||
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Others |
2,435 | 1,857 | ||||||
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| Ps. | 32,316 | Ps. | 26,222 | |||||
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7.1 Trade receivables
Trade receivables representing rights arising from sales and loans to employees or any other similar concept, are presented net of discounts and the allowance for doubtful accounts.
Coca-Cola FEMSA has accounts receivable from The Coca-Cola Company arising from the latter’s participation in advertising and promotional programs and investment in refrigeration equipment and returnable bottles made by Coca-Cola FEMSA.
The carrying value of accounts receivable approximates its fair value as of December 31, 2017 and 2016.
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Aging of past due but not impaired (days outstanding) |
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| December 31, 2017 |
December 31, 2016 |
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60-90 days |
Ps. | 599 | Ps. | 610 | ||||
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90-120 days |
269 | 216 | ||||||
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120+ days |
1,206 | 1,539 | ||||||
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Total |
Ps. | 2,074 | Ps. | 2,365 | ||||
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7.2 Changes in the allowance for doubtful accounts
| 2017 | 2016 | 2015 | ||||||||||
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Opening balance |
Ps. | 1,193 | Ps. | 849 | Ps. | 456 | ||||||
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Allowance for the year |
530 | 467 | 167 | |||||||||
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Charges and write-offs of uncollectible accounts |
(400 | ) | (418 | ) | (99 | ) | ||||||
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Addition from business combinations |
86 | 94 | 401 | |||||||||
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Effects of changes in foreign exchange rates |
(32 | ) | 201 | (76 | ) | |||||||
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Venezuela deconsolidation effect |
(2 | ) | — | — | ||||||||
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Ending balance |
Ps. | 1,375 | Ps. | 1,193 | Ps. | 849 | ||||||
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In determining the recoverability of trade receivables, the Company considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the end of the reporting period. The concentration of credit risk is limited due to the customer base being large and disperse.
7.3 Receivable from The Coca-Cola Company
The Coca-Cola Company participates in certain advertising and promotional programs as well as in the Coca-Cola FEMSA’s refrigeration equipment and returnable bottles investment program. Contributions received by Coca-Cola FEMSA for advertising and promotional incentives are recognized as a reduction in selling expenses and contributions received for the refrigeration equipment and returnable bottles investment program are recorded as a reduction in the carrying amount of refrigeration equipment and returnable bottles items. For the years ended December 31, 2017, 2016 and 2015 contributions due were Ps. 4,023, Ps. 4,518 and Ps. 3,749, respectively.