TRADE AND OTHER RECEIVABLES

12 Months Ended

Dec. 31, 2022

Trade and other current receivables [abstract]

TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES

Trade and other receivables consisted of the following items as of December 31:

	2022	2021
Trade receivables (gross)*	530	838
Expected credit losses	(84)	(159)
Trade receivables (net)	446	679
Other receivable, net of expected credit losses allowance	10	11
Total trade and other receivables	456	690

* Includes contract assets (unbilled receivables), see Note 3 for further details

The following table summarizes the movement in the allowance for expected credit losses for the years ended December 31:

	2022	2021
Balance as of January 1	159	225
Accruals for expected credit losses	44	35
Recoveries	(6)	(9)
Accounts receivable written off	(64)	(28)
Reclassifications	(4)	—
Reclassification as held for sale	(28)	(56)
Foreign currency translation adjustment	(15)	(4)
Other movements	(2)	(4)
Balance as of December 31	84	159

Set out below is the information about the Group’s trade receivables (including contract assets) using a provision matrix:

					Days past due
	Unbilled Receivables		Current		< 30 days		Between 31 and 120 days		> 120 days		Total
December 31, 2022
Expected loss rate, %	0.0	%	0.6	%	15.4	%	31.0	%	97.1	%
Trade receivables	37		356		39		29		69		530
Expected credit losses	—		(2)		(6)		(9)		(67)		(84)
Trade receivables, net	37		354		33		20		2		446
December 31, 2021
Expected loss rate, %	0.0	%	1.8	%	3.6	%	33.3	%	95.7	%
Trade receivables	49		550		56		45		138		838
Expected credit losses	—		(10)		(2)		(15)		(132)		(159)
Trade receivables, net	49		540		54		30		6		679

ACCOUNTING POLICIES

Trade and other receivables

Trade and other receivables are measured at amortized cost and include invoiced amounts less expected credit losses.

Expected credit losses

The expected credit loss allowance (“ECL”) is recognized for all receivables measured at amortized cost at each reporting date. This means that an ECL is recognized for all receivables even though there may not be objective evidence that the trade receivable has been impaired.

VEON applies the simplified approach (i.e. provision matrix) for calculating a lifetime ECL for its trade and other receivables, including unbilled receivables (contract assets). The provision matrix is based on the historical credit loss experience over the life of the trade receivables and is adjusted for forward-looking estimates if relevant. The provision matrix is reviewed on a quarterly basis. Refer to Note 18 for our credit risk management policy.