Accounts Receivable – Trade, Gross (SF.BS.AccountsReceivable_TradeGross)
Accounts Receivable – Trade, Gross (SF.BS.AccountsReceivable_TradeGross) refers to receivables generated from sales of trading assets (such as inventories) or from services provided. Trade accounts receivable are confined to “current” assets, where “current” is defined as one year or one operating cycle of the company, whichever is longer. This information is classified as Accounts Receivable – Trade, Gross (SF.BS.AccountsReceivable_TradeGross) only when it is presented as such on the company’s balance sheet or in its notes.
When sales receipts are settled with a promissory note, such notes are treated as Notes Receivable – Short-Term (SF.BS.NotesReceivable_ST). However, when classification between accounts receivable and notes receivable is not clear, notes receivable are classified as Accounts Receivable (SF.BS.AccountsReceivable_TradeGross).
Receivables from the sale of merchandise or services provided to affiliates or other related companies are treated as “trade” receivables and included in Accounts Receivable – Trade, Gross (SF.BS.AccountsReceivable_TradeGross).
Companies sometimes report their trade accounts receivable, net of provision for doubtful accounts, and also provide the doubtful account value on the balance sheet. When this occurs, Sentieo calculates an Account Receivable – Trade, Gross (SF.BS.AccountsReceivable_TradeGross) value and shows the value for Provision for Doubtful Accounts (SF.BS.ProvisionForDoubtfulAccounts) on the balance sheet. When a company does not delineate between notes receivable and accounts receivable, and the information is provided in one line as notes and accounts receivable, Sentieo refers to the figure as Accounts Receivable – Trade, Net (SF.BS.AcctsReceivable_TradeNet).
Accounts Receivable – Trade, Gross (SF.BS.AccountsReceivable_TradeGross) includes:
- Factored receivables (with recourse)
- Finance/interest receivables in non-banking financial service companies
- Franchise/license fees receivable in technology companies
- Royalties receivable
- Current portion of long-term receivable (trade)
- Unbilled receivables (for Industrial companies, if reported under Receivables or as a separate line item) Accounts Receivable – Trade
Accounts Receivable – Trade, Gross (SF.BS.AccountsReceivable_TradeGross) does not include:
- Trade accounts receivable, net of provision for doubtful accounts (classified as Accounts Receivable – Trade, Net (SF.BS.AcctsReceivable_TradeNet))
- Unbilled utility revenue (classified as Unbilled Utility Revenues (SF.BS.UnbilledUtilityRevenues) for Utility companies)
- Finance/interest receivable in industries other than non-banking financial services (classified as Notes Receivable – Short-Term (SF.BS.NotesReceivable_ST))
- Taxes recoverable (classified as Receivables – Other (SF.BS.Receivables_Other))
- Receivables from individuals other than customers, such as employees, directors, officers (classified as Receivables – Other (SF.BS.Receivables_Other))
- Loans (receivable) to customers in non-banking financial service companies (loans as well as provisions for loan losses are classified as Notes Receivable – Short-Term (SF.BS.NotesReceivable_ST))
- (Short-term) Loans to employees, officers, directors, affiliates in industries other than non-banking financial service companies (classified as Receivables – Other (SF.BS.Receivables_Other))
- (Short-term) Loans to third parties (classified as Short-Term Investments (SF.BS.STInvestments))