TRADE RECEIVABLES AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2021

Disclosure Trade Receivables and Other Current Assets [Abstract]

TRADE RECEIVABLES AND OTHER CURRENT ASSETS

TRADE RECEIVABLES AND OTHER CURRENT ASSETS

Brookfield Renewable’s trade receivables and other current assets as at December 31 are as follows:

(MILLIONS)	2021		2020
Trade receivables	$	629	$	614
Collateral deposits(1)	434		1
Prepaids and others	354		64
Inventory	31		26
Income tax receivables	39		15
Other short-term receivables	139		162
Current portion of contract asset	57		46
	$	1,683	$	928

(1)Collateral deposits are related to energy derivative contracts that Brookfield Renewable enters into in order to mitigate the exposure to wholesale market electricity prices on the future sale of uncontracted generation, as part of Brookfield Renewable's risk management strategy.

As at December 31, 2021, 82% (2020: 84%) of trade receivables were current. Brookfield Renewable does not expect issues with collectability of these amounts. Accordingly, as at December 31, 2021 and 2020 an allowance for doubtful accounts for trade receivables was not deemed necessary. Trade receivables are generally on 30-day terms and credit limits are assigned and monitored for all counterparties. In determining the recoverability of trade receivables, management performs a risk analysis considering the type and age of the outstanding receivables and the credit worthiness of the counterparties. Management also reviews trade receivable balances on an ongoing basis.