Nexa Resources S.A. | CIK:0001713930 | 3

  • Filed: 5/9/2018
  • Entity registrant name: Nexa Resources S.A. (CIK: 0001713930)
  • Generator: Merrill
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1713930/000110465918031781/0001104659-18-031781-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1713930/000110465918031781/nexa-20171231.xml
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  • ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory

     

    10Trade accounts receivable

     

    Accounting policy

     

    Trade accounts receivable are amounts due from customers for goods sold in the ordinary course of the Company’s business.

     

    Trade accounts receivable are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method, less a provision for uncollectible trade receivables. Trade accounts receivable from export sales are presented at the foreign exchange rates prevailing on the reporting date.

     

    Credit risk can arise from non-performance by counterparties of their contractual obligations towards the Company. To ensure an effective evaluation of credit risk, management applies comprehensive procedures related to the application for credit granting and approvals, renewal of credit limits, continuous monitoring of credit exposure in relation to established limits and events that trigger requirements for secured payment terms. As part of the Company’s process, the credit exposures with all counterparties are regularly monitored and assessed on a timely basis.

     

    The Company recognized provision for uncollectible trade receivables for notes overdue for more than 120 days, whose expectation of collection is unlikely, as well as for customers considered bankrupt or in judicial reorganization.

     

    (a)Composition

     

     

     

    Note

     

    2017

     

    2016

     

    Trade receivables

     

     

     

    181,084

     

    115,291

     

    Related parties

     

    13

     

    3,775

     

    6,389

     

    Provision for uncollectible trade receivables

     

     

     

    (2,146

    )

    (1,618

    )

     

     

     

     

     

     

     

     

     

     

     

     

    182,713

     

    120,062

     

     

     

     

     

     

     

     

     

     

    (b)Changes in the provision for uncollectible trade receivables

     

     

     

    2017

     

    2016

     

    Balance at the beginning of the year

     

    (1,618

    )

    (2,047

    )

    Reversals (additions), net

     

    (521

    )

    653

     

    Exchange variation losses

     

    (7

    )

    (224

    )

     

     

     

     

     

     

    Balance at the end of the year

     

    (2,146

    )

    (1,618

    )

     

     

     

     

     

     

     

    The additions to the provision for uncollectible trade receivables have been included in “selling expenses”. Amounts charged to the provision for uncollectible trade receivables are generally written off when there is no expectation of recovering additional cash.

     

    (c)Analysis by currency

     

     

     

    2017

     

    2016

     

    Brazilian Real

     

    66,486

     

    44,924

     

    US Dollar

     

    115,879

     

    74,868

     

    Other

     

    348

     

    270

     

     

     

     

     

     

     

     

     

    182,713

     

    120,062

     

     

     

     

     

     

     

     

    (d)Aging of accounts receivable

     

     

     

    2017

     

    2016

     

    To fall due

     

    163,196

     

    113,155

     

    Up to 3 months

     

    19,775

     

    6,054

     

    From 3 to 6 months

     

    914

     

    1,169

     

    Over 6 months

     

    974

     

    1,302

     

     

     

     

     

     

     

     

     

    184,859

     

    121,680

     

     

     

     

     

     

     

    Provision for uncollectible trade receivables

     

    (2,146

    )

    (1,618

    )

     

     

     

     

     

     

     

     

    182,713

     

    120,062