4.7 Change in restricted cash
Restricted cash corresponds notably to voucher reserve funds. These funds, which are equal to the face value of vouchers in circulation, are subject to specific regulations in some countries, such as France for the Ticket Restaurant and Ticket CESU solutions. In particular, use of the funds is restricted and they must be clearly segregated from the Group’s other cash. The funds remain Edenred’s property and are invested in locally regulated interest-bearing financial instruments. Restricted cash also includes funds relating to PPS Direct clients.
Restricted cash corresponds to funds subject to special regulations in the following countries: the United Kingdom (€879 million), France (€813 million), Belgium (€408 million), the United States (€89 million), Romania (€87 million), Brazil (€36 million), Mexico (€32 million), Taiwan (€31 million), Italy (€19 million), the United Arab Emirates (€12 million), Bulgaria (€11 million) and Uruguay (€8 million).
4.8 Trade and other receivables and payables
Trade receivables
In accordance with IFRS 9, impairment of trade and other receivables is recognized on the basis of expected losses and no longer on incurred losses. A provision for impairment will therefore need to be recognized as soon as the receivable arises. For receivables with no significant financing component, the Group applies the alternative model, which consists in recognizing a provision equal to the lifetime expected losses on the contract.
