‘Trade and other receivables’ includes the sum of €3 million (€104 million in 2016) that concerns related parties (ProRail and the Dutch national government).

As at 31 December 2016, the ‘Other receivables’ included the current part of the receivable (€120 million) payable by SPF (the Railway Pensions Fund) and the current portion of the receivable relating to the franchise fee correction mechanism (€15 million).

The ageing of trade receivables as at the reporting date was as follows.

Impairment losses

The movement in the provision for impairments of trade receivables during the year was as follows.

Accounting policies

The trade and other receivables are stated at fair value (plus any directly attributable transaction costs) upon initial recognition. Subsequent to initial recognition, they are recognised at amortised cost using the effective interest method.

The Group has formed a provision for impairment equal to the size of the estimated losses from trade and other receivables. The most important elements of this provision are a specific loss provision for significant individual positions and a group loss provision for groups of comparable assets concerning losses that have been incurred but not yet identified. The group loss provision is determined on the basis of historic payment data for comparable financial assets.

Provisions for trade receivables are made in the case of an impairment, unless the Group is certain that it will not be possible to recover the amount owed. In that case, the amount is considered irrecoverable and is written off directly against the financial asset.

Projects in progress commissioned by third parties

The trade and other payables are specified in note 21.

Accounting policies

Projects in progress commissioned by third parties are stated at cost plus profit taken as at the balance sheet date, less a provision for anticipated losses and less invoiced instalments in proportion to the progress of the project. The cost encompasses all expenditure relating directly to specific projects and an attributable portion of the fixed and variable indirect costs incurred in connection with the contract activities, based on normal production capacity.

A receivable is created if the sum of the expenses incurred (including the recognised profit or loss) exceeds the sum of the invoiced instalments. If the sum of the costs incurred (including the recognised profit or loss) is less than the sum of the invoiced instalments, the item is classified as a liability.

Contractual revenue and expenses arising from projects in progress commissioned by third parties are accounted for in the income statement in proportion to the stage of completion of the project. The stage of completion is determined by ascertaining the costs of the work done in relation to the total expected cost. As soon as the profit/loss can be reliably estimated, a proportionate part of the profit is credited to the income statement. Expected losses on projects are recognised immediately and in full in the income statement.