17. Trade and other receivables

in thousand EUR   2020   2019
Trade receivables, third parties   9 517   5 232
Trade receivables, associates   12   48
Allowance for expected credit losses   –1 029   –785
Total trade receivables net   8 500   4 495
Other current receivables   3 023   6 283
Total trade and other receivables net   11 523   10 778

The carrying amounts of the receivables approximate to their fair values. Other receivables mainly contain credit balances from governments, therefore the expected credit loss is immaterial.

Allowance for credit losses for trade receivables
in thousand EUR   2020   2019
At 1 January   785   914
Increase of allowance for credit losses   490   –62
Reversal of allowance for credit losses   –0   –56
Utilisation of loss allowances   –20  
Currency effects   –226   –11
At 31 December   1 029   785

The exposure to credit risk is covered with the impairment for expected credit losses under IFRS 9 on trade receivables. It contains collectively assessed positions (Lifetime ECL), using the simplified approach, as well as individually assessed positions.

The individual allowances for credit losses include receivables past due more than 12 months, where the Group is in negotiation with the debtors for a solution.

The standard payment terms for trade receivables are in most instances Cash Against Documents (CAD) or Letter of Credit (L/C). The trade receivables are not interest-bearing, and the Group considers them to be credit impaired when internal or external information give cause for serious concern to receive the outstanding amount. The credit ratings for the lifetime ECL base on the aging buckets of the trade receivables. Taking into consideration the terms and conditions established with customers, the lifetime expected credit loss allowance for trade receivables is as follows:

in thousand EUR   Expected
credit loss
default rate
Not overdue   0.5–0.6%   7 640   3 288
Less than 30 days overdue   0.5–0.6%   605   781
31 to 60 days overdue   1.7–2.0%   66   120
61 to 180 days overdue   10.0%   138   139
More than 180 days overdue   15.0%   142   256
Individually impaired   100.0%   938   696
Total trade receivables gross       9 529   5 280
Allowance for expected credit losses       –1 029   –785
Total trade receivables net       8 500   4 495
Accounting policies

Trade accounts receivable are recognized initially at fair value and subsequently measured at amortized cost less allowances. The allowances base on the simplified approach of full lifetime expected credit losses as defined by the impairment model of IFRS 9. To calculate these allowances the trade accounts receivables are clustered into ageing buckets and each of these buckets weighted with a certain percentage. Doubtful accounts are assessed individually to analyze if a significant increase in credit risk occurred and an individual impairment is needed. Indications for such impairments are substantial financial problems on the part of the customer, a declaration of bankruptcy, or a significant delay in payment occurring.