Annual Report 2008 in PDF - GKN

14 Other receivables and investments
Financial Statements
Notes to the Financial Statements
2008 2007
£m £m
Other investments — —
Indirect taxes and amounts recoverable under employee benefit plans 19 13
Other receivables 4 9
23 22
Other investments mainly comprise the Group’s net investment in GKN Aerospace Services Structures Corp. which is an entity in which the
Group has, since 2003, had a 100% share in the equity. This corporation operates under a proxy agreement with the United States Department
of Defense developing high technology, classified products for the Joint Strike Fighter. The agreement currently places significant restrictions
on the Group’s management and control of the business for the life of the contract so that, in accordance with IAS 27 it has been excluded
from the consolidation and treated as an investment. The investment, which is fully provided, is stated at cost less provision for diminution.
At 31 December 2008, under the accounting policies of GKN Aerospace Services Structures Corp., the excluded net liabilities were £8 million
(2007 – £5 million) and the operating loss for the year then ended was £1 million (2007 – £1 million). No goods or services were provided to
GKN Aerospace Services Structures Corp. by the Group during 2008 and 2007. GKN Aerospace Services Structures Corp. supplied goods to the
Group amounting to £1 million during 2008 (2007 – nil). Transactions between the Group and GKN Aerospace Services Structures Corp. are
priced on an ‘arm’s length’ basis.
15 Inventories
2008 2007
£m £m
Raw materials 315 264
Work in progress 242 176
Finished goods 161 112
718 552
Inventories of £64 million (2007 – £51 million) are carried at net realisable value. The amount of any write-down of inventory recognised as an
expense in the period was £4 million (2007 – £2 million).
16 Trade and other receivables
2008 2007
£m £m
Trade receivables 550 509
Amounts owed by joint ventures 11 10
Other receivables 39 19
Prepayments 16 14
Indirect taxes recoverable 29 19
Provisions for doubtful debts against trade receivables
645 571
At 1 January
Charge for the year:
(6) (5)
Additions (6) (3)
Unused amounts reversed 1 1
Amounts used 4 1
Currency variations (2) —
At 31 December
Ageing analysis of trade receivables and amounts owed by joint ventures past due but not impaired
(9) (6)
Up to 30 days overdue 47 40
31–60 days overdue 13 11
61–90 days overdue 6 4
More than 90 days overdue 11 7
Trade receivables subject to provisions for doubtful debts 15 12
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