IBERSOL | Integrated Management Report 2022

INTEGRATED MANAGEMENT REPORT 2022 5.2.1. Clients Essentially, balances from Catering and Franchising activities (direct merchandise or through the logistics operator and royalties) amounting, respectively, to about 2.7 million euros and 2.8 million euros on December 31, 2022 (2.4 million euros and 2.7 million euros in 2021). Concerning clients debts, their ageing is as follows: Dec/2022 Dec/2021 Debt not due 13 229 827 2 251 063 Debt due: For less than 1 month 324 118 361 575 From one to three months 1 237 031 1 176 946 Over three months 2 651 700 2 579 869 Total Clients 17 442 675 6 369 453 Accumulated impairment losses -2 631 414 -2 674 804 14 811 261 3 694 649 The increase in balances receivable reflects the effect of the sale of goods in Decem- ber 2022, to Burger King restaurants, of the total debt not due on 31 December 2022, about 10 million euros relate to Iberking Restauração S.A. On the other hand, the growth in activity in 2022 and the resumption of Catering activity, namely in concessions in soccer stadiums, also explain the increase in the amount receivable from customers. The impairment of all customer debt with risk of default is recognized. 5.2.2. Other accounts receivable The balance of the caption other non-current accounts receivable is mainly composed of deposits and guarantees in Spain, resulting from lease contracts. Accounts receivable from other debtors are initially recognized at fair value and, in the case of medium and long-term debts, are subsequently measured at amortized cost, using the effective rate method, less impairment adjustment. The Group considers that this asset is not exposed to relevant credit risk, since in general these assets are directly associated with rent payment obligations. These guarantees may be executed by the beneficiaries in the event of contractual breach by Ibersol, such as in cases where the rent is not paid. 413