Boskalis Annual Report 2020

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18. NON-CURRENT FINANCIAL ASSETS OTHER NON-CURRENT RECEIVABLES

2019

2020

Balance as at 1 January

1,377

9,214

Loan granted (to joint venture) Repaid loan (by joint venture)

7,874 - 280

220

-

Decrease due to first time in consolidation

-

- 6,628

Currency translation differences and other movements

243

116

Balance as at 31 December

9,214

2,922

Other non-current receivables generally comprise loans to joint ventures and associates, and long-term advance payments to suppliers.

19. INVENTORIES

2019

2020

Fuel and materials

27,117 76,121 103,238

25,040 66,090 91,130

Spare parts and other inventories

During 2020 a provision is provided for obsolete inventory of EUR 7.2 million (2019: nil).

20. UNBILLED AND DEFERRED REVENUE Unbilled and deferred Group revenue relates to the contracting and execution of construction projects and to services. The recognition of revenue, timing of billings and cash collections result in unbilled receivables, accounts receivable and deferred revenue. In the contracting business amounts are billed as work progress in accordance with contractual terms, either at periodic intervals or upon achievement of contractual milestones. In the event that billing occurs subsequent to revenue recognition, unbilled revenue is recognized (as an asset). In the event that payments are received from customers based on deposits or invoices in advance of revenue recognition, deferred revenue is recognized (as a liability). In the services business amounts are billed based on contractually agreed schedules and/or milestones. As revenue is recognized/allocated to a large extent on the basis of sailing days, unbilled revenue or deferred revenue is recognized for the difference between revenues recognized and invoices issued.

2019

2020

Unbilled revenue Deferred revenue

279,981 - 315,756 - 35,775

206,670 - 357,510 - 150,840

Unbilled and deferred revenue of the Group is influenced by the mix of projects and services that are executed at a certain point of time. Inherent to the Group’s activities, the nature and amount of unbilled and deferred revenue depends on the specifics of the projects, due to the variety clients and to the ever- changing client base, contracts with different payment conditions, milestones and other details of contracts executed within a wide spectrum of economic environments. Furthermore, different payments terms are agreed in the contracts with customers and usually depend on the jurisdiction in which the services are performed. In 2020 approximately 97% of the unbilled amount of EUR 279,981 thousand at 31 December 2019 was invoiced to customers by the Group (2019: 91% of the unbilled amount of EUR 304,856 thousand as at 31 December 2018). During 2020 unbilled revenue was not materially impacted by business combinations (during 2019: nil). Almost the entire amount of deferred revenue at 31 December 2019 relates to work performed in 2020. Contract revenue recognized, unbilled revenue and deferred revenue are subject to judgements and estimates. Especially judgements and estimates on the progress of execution of the projects are the basis for allocating total (project) revenue to cumulative (project) revenues recognized in the Consolidated Statement

ANNUAL REPORT 2020 – BOSKALIS A NUAL REPORT 2020 -- BOSKALIS