IBERSOL | Annual Report 2020

ANNUAL REPORT 2020 The main activity of the Group is the operation of stores of several own brands and franchises (Note 3.b), and the preferred payment method for its sales is by cash, debit card (or other type of card, for example, “cartão refeição”). With the appearance of sales platforms for home delivery, sales charged through the intermediary are grow- ing. The greater volume of credits results from the activity of delivery through Aggre- gators, from catering sales, although the advance payment model was implemented at the time of contracting the event, as well as from the supply of goods and royalties to franchisees. In other debtors, debts to suppliers for recovery of charges for marketing and rappel contributions are not at risk, as they are covered by credits from the same suppliers. As at 31 December 2020, the accounts receivable, not past due and without impair- ment, in the amount of 1,131,032 Euros (2,474,797 Euros in 2019), do not present rel- evant balances referring to customers and other debtors with a history of default (2019: approximately 213 thousand Euros). Impairment losses in 2020 and 2019 regarding other current assets are broken down as follows: Exercício findo em 31 de dezembro de 2020 Opening balance Currency Conversion Cancellation Losses in the Year (note 24) Impairment reversion (note 24) Closing balance Clients c/a 2.378.212 - -1.132.793 1.178.651 -43.383 2.380.687 Other debtors 207.449 -6.883 - 3.449 - 204.015 2.585.661 -6.883 -1.132.793 1.182.100 -43.383 2.584.702 Exercício findo em 31 de dezembro de 2019 Opening balance Currency Conversion Cancellation Losses in the Year (note 24) Impairment reversion (note 24) Closing balance Clients c/a 2.712.748 - -931.803 1.002.267 -405.000 2.378.212 Other debtors 218.372 -10.923 - - - 207.449 2.931.120 -10.923 -931.803 1.002.267 -405.000 2.585.661 369