annual report - Harvey Norman Company Reports & Announcements

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
5.
Trade and Other Receivables (Current) (continued)
(a) Trade receivables and allowance for doubtful debts (continued)
Movements in the allowance for doubtful debts for trade debtors were as follows:
C O N S O L I D A T E D
2012 2011
$000 $000
At 1 July 990 3,289
Charge for the year (22) 1,780
Foreign exchange translation (2) (275)
Amounts written off (121) (3,804)
At 30 June
(b) Consumer finance loans
For terms and conditions, allowance for doubtful debts and collateral held for consumer finance loans refer
to Note 10.
(c) Finance lease receivables
Finance lease receivables are reconciled to amounts receivable in respect of
finance leases as follows:
Aggregate of minimum lease payments and guaranteed residual values:
Not later than one year 11,610 10,658
Later than one year but not later than five years 9,687 14,089
21,297
24,747
Future finance revenue:
Not later than one year (1,703) (1,973)
Later than one year but not later than five years (808) (1,493)
Net finance lease receivables
845
18,786
990
21,281
Reconciled to:
Trade and other receivables (Current)
Trade and other receivables
9,907 8,685
(Non-current – Note 10)
8,879
12,596
18,786
21,281
The consolidated entity offers finance lease arrangements as part of the consumer finance business. Finance leases
are offered in respect of motor vehicles, livestock and fixtures and fittings with lease terms not exceeding 4 years. All
finance leases are at fixed rates for the term of the lease.
Included in the consolidated entity‟s current and non-current finance lease receivables, there are no lease
receivables that are past due at the reporting date. Any defaults in repayments by customers are secured by the
leased assets. The collateral that is held by the consolidated entity relates to the underlying leased assets. As at
balance date, there are no events that require the consolidated entity to sell or re-pledge the leased assets.
Finance receivables are reconciled to amounts receivable in respect of finance leases.
(d) Non trade debts receivable and allowance for doubtful debts
Non trade receivables are generally interest bearing and are normally payable at call. An allowance has been
made for estimated irrecoverable non trade receivable amounts. An impairment loss of $1.45 million (2011: $0.20
million) has been recognised by the consolidated entity in the current year for the non trade debtors. These amounts
have been included in the other expenses line item in the Income Statement.
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