| Trade Accounts and Notes Receivable |
| 6. | Trade Accounts and Notes Receivable |
| Schedule
of trade accounts receivable, net and notes receivable |
|
|
| |
|
12.31.24 |
|
12.31.23 |
| Trade accounts receivable |
|
|
|
|
| Domestic market |
|
|
|
|
| Third parties |
|
2,420,942 |
|
1,860,089 |
| Related parties |
|
16,402 |
|
8,419 |
| Foreign market |
|
|
|
|
| Third parties |
|
4,395,420 |
|
3,496,442 |
| Related parties |
|
30,924 |
|
27,781 |
| |
|
6,863,688 |
|
5,392,731 |
| ( - ) Adjustment to present value ("APV") |
|
(39,291) |
|
(29,284) |
| ( - ) Expected credit losses |
|
(726,764) |
|
(591,479) |
| |
|
6,097,633 |
|
4,771,968 |
| Current |
|
6,075,013 |
|
4,766,071 |
| Non-current |
|
22,620 |
|
5,897 |
| |
|
|
|
|
| |
|
|
|
|
| Notes receivable |
|
61,628 |
|
83,863 |
| ( - ) Adjustment to present value ("APV") |
|
(5,910) |
|
(2,223) |
| ( - ) Expected credit losses |
|
(15,381) |
|
(15,379) |
| |
|
40,337 |
|
66,261 |
| Current |
|
32,302 |
|
64,731 |
| Non-current (1) |
|
8,035 |
|
1,530 |
| (1) | On December 31, 2024 the weighted average maturity is 2 years. |
For sales in
the foreign market on credit, the Company has insurance, letters of credit and other guarantees in the amount of R$1,441,599
(R$1,003,891 on December 31,
2023), which cover 78.8% (60.9% on December 31, 2023) of this modality.
The Company performs credit assignments with
no right of return to the BRF Clients’ Credit Rights Investment Fund, which has the sole purpose to acquire credit rights arising
from commercial transactions carried out between the Company and its clients in Brazil.
On December 31, 2024, FIDC BRF II has an
outstanding balance of R$959,434 (R$1,072,964 for the year ended December 31, 2023) relating to these credit rights, which were derecognized
from the Company's statements of financial position at the time of the assignment.
On December 31, 2024, receivables are mainly
represented by receivables arising from the sale of farms and various properties not linked to production.
The movements of the expected credit losses
are presented below:
| Schedule of allowance for doubtful
accounts |
|
| |
12.31.24 |
|
12.31.23 |
| Beginning balance |
(591,479) |
|
(604,167) |
| (Additions) reversals |
(28,817) |
|
(32,809) |
| Write-offs |
18,451 |
|
8,539 |
| Exchange rate variation |
(124,919) |
|
36,958 |
| Ending balance |
(726,764) |
|
(591,479) |
The aging of trade accounts receivable is as
follows:
| Schedule of aging of trade
accounts receivable |
|
|
|
| |
12.31.24 |
|
12.31.23 |
| Not overdue |
5,904,865 |
|
4,515,445 |
| Overdue |
|
|
|
| 01 to 60 days |
203,179 |
|
225,135 |
| 61 to 90 days |
9,228 |
|
46,347 |
| 91 to 120 days |
2,891 |
|
15,248 |
| 121 to 180 days |
9,307 |
|
11,101 |
| 181 to 360 days |
41,254 |
|
22,116 |
| More than 360 days |
692,964 |
|
557,339 |
| ( - ) Adjustment to present value ("APV") |
(39,291) |
|
(29,284) |
| ( - ) Expected credit losses |
(726,764) |
|
(591,479) |
| |
6,097,633 |
|
4,771,968 |
Trade accounts and notes receivables
|
Accounting policy:
Trade accounts and notes receivables:
accounts and notes receivable from customers: accounts receivable from customers are recorded at fair value and, where applicable, adjusted
to their present value. The Company measures the adjustment to present value (“AVP”) on the short- and long-term balances
of accounts receivable, which are recorded in a reduction account of the respective item against the items Sales revenue and Financial
income (expenses), net. The rate used by the Company represents the average of the Interbank Deposit Certificates plus a spread representing
the credit risk. On December 31, 2024, this rate was 14.32% p.a. (13.13% p.a. on December 31, 2023).
Assignment of receivables: Trade receivables
sold in assignment of receivables transactions are derecognized at the time of assignment, i.e. when the Company hands over control and
transfers substantially all the associated risks and rewards to the buyer.
Expected credit losses in accounts receivable
from customers and other receivables: the Company regularly assesses the historical losses on the customer portfolios it has in each
region, taking in consideration the dynamics of the markets in which it operates and instruments it has for reducing credit risks, such
as: letters of credit, insurance and collateral, as well as identifying specific customers whose risks are significantly different than
the portfolio, which are treated according to individual expectations.
Based on these assessments, estimated loss factors
are generated by portfolio and aging class, which, applied to the amounts of accounts receivable, generate the expected credit losses.
Additionally, the Company evaluates macroeconomic factors that may influence these losses and, if necessary, adjusts the calculation model.
Securities receivable with legal proceedings
in place are reclassified to noncurrent as well as the related estimated credit losses. The securities are written off against the estimated
loss when the Management considers that they are no longer recoverable after taking all appropriate actions to collect them. |
|