Note 9. Accounts receivable
A significant percentage of our accounts receivable is derived from sales to a limited number of large multinational semiconductor device manufacturers located throughout the world. In order to monitor potential credit losses, we perform ongoing credit evaluations of our customers’ financial condition.
The carrying amount of accounts receivable is as follows:
|Overdue <30 days||5,949||3,046|
|Overdue 31-60 days||2,142||1,117|
|Overdue 61-120 days||1,785||3,443|
|Overdue >120 days||6,110||2,015|
An allowance for doubtful accounts receivable is maintained for potential credit losses based upon management’s assessment of the expected collectability of all accounts receivable. The allowance for doubtful accounts is reviewed periodically to assess the adequacy of the allowance. In making this assessment, management takes into consideration any circumstances of which we are aware regarding a customer’s inability to meet its financial obligations; and our judgments as to potential prevailing economic conditions in the industry and their potential impact on the Company’s customers.
The changes in the allowance for doubtful accounts receivable are as follows:
|Balance at beginning of year||(73)||(19)|
|Charged to selling, general and administrative expenses||–||(22)|
|Utilization of the provision||57||–|
|Foreign currency translation effect||(3)||(3)|
|Balance at end of year||(19)||(44)|
Accounts receivable are impaired and provided for on an individual basis. As of December 31, 2015, accounts receivable of €9.6 million were past due but not impaired. These balances are still considered to be recoverable because they relate to customers for whom there is neither recent history of default nor expectation this will incur.
For further information on credit risk see Note 16.