These are financial assets classified as borrowing and receivables, which refer to accounts receivable from users of telecommunications services, from network use (interconnections) and from the sale of handsets and accessories. Accounts receivable are recorded at the price charged at the time of the transaction. The balances of accounts receivable also include services provided and not billed (“unbilled”) up to the balance sheet date. Accounts receivable from clients are initially recognized at fair value and subsequently measured at amortized cost using the effective interest rate method less the allowance for doubtful accounts (“impairment”).
Allowances for doubtful accounts were recognized as a reduction in the accounts receivable based on the profile of the subscriber portfolio, the overdue aging of accounts receivable, the economic situation, the risks involved in each case and the collection curve, at an amount deemed sufficient to support future losses.
The fair value of trade accounts receivable equals the book value recorded as of December 31, 2017 and 2016. A portion of the accounts receivable from clients is used to secure the total amount of BNDES borrowing (Note 19).
| 2017 | 2016 | |||
| Billed services | 1,390,616 | 1,175,091 | ||
| Unbilled services | 610,570 | 653,333 | ||
| Network use | 367,894 | 527,179 | ||
| Sale of goods | 661,180 | 956,056 | ||
| Other accounts receivable | 1,548 | 2,062 | ||
| 3,031,808 | 3,313,721 | |||
| Allowances for doubtful accounts | (464,745) | (370,452) | ||
| 2,567,063 | 2,943,269 | |||
| Current portion | (2,540,856) | (2,919,177) | ||
| Non-current portion | 26,207 | 24,092 |
Changes to the allowances for doubtful accounts were as follow:
| 2017 | 2016 | |||
| Opening balance | 370,452 | 351,381 | ||
| Additions | 316,387 | 266,442 | ||
| Write-off | (222,094) | (247,371) | ||
| Closing balance | 464,745 | 370,452 |
The aging of the accounts receivable is as follows:
| 2017 | 2016 | |||
| Current | 2,028,983 | 2,378,345 | ||
| Past due for up to 30 days | 271,560 | 231,024 | ||
| Past due for up to 60 days | 113,584 | 107,584 | ||
| Past due for up to 90 days | 109,568 | 135,164 | ||
| –Past due for more than 90 days | 508,113 | 461,604 | ||
| 3,031,808 | 3,313,721 |