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28
NOTE 28
TRADE AND OTHER RECEIVABLES
Other Operating Assets and Liabilities
Accounting policy
– Trade and other receivables
Trade receivables are recognised initially at fair value and subsequently at amortised cost, using the effective
interest rate method, less provision for impairment. Trade receivables are due for settlement between 30 and 45
days from the date of recognition.
Collectibility of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible
are written off by reducing the carrying amount directly. An allowance account (provision for impairment of
trade receivables) is used when there is objective evidence that the Group will not be able to collect all amounts
due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability
that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more
than 30 to 45 days overdue) are considered indicators that the trade receivable is impaired. The amount of the
impairment allowance is the difference between the asset’s carrying amount and the present value of estimated
future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables
are not discounted if the effect of discounting is immaterial.
The amount of any impairment loss is recognised in the income statement. When a trade receivable for which an
impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against
the allowance account. Subsequent recoveries of amounts previously written off are credited to the income
statement.
Measurement
Loans and receivables are carried at amortised cost using the effective interest method.
2016
2015
$’000
$’000
Current Assets
Trade receivables
66,203
35,827
Less impairment of receivables
(6,382)
(1,733)
59,821
34,094
Loans to other parties – secured
25,185
22,246
Other receivables
25,410
14,311
Prepayments
6,359
4,697
Total current receivables
116,775
75,348
Non-current Assets
Loans to related entities
–
112
Loans to others – secured
26,877
–
Other receivables and prepayments
3,310
4,187
Total non-current receivables
30,187
4,299