Annual Report 2010 - SBM Offshore

The ageing of the nominal amounts of the trade debtors are:
2010 2009
in thousands of US$ Gross Impairment Gross Impairment
Not past due 208,834 - 217,356 -
Past due 0-30 days 64,333 - 74,444 -
Past due 31-120 days 43,741 - 50,134 -
Past due 121- 365 days 28,956 - 33,386 -
More than one year 28,194 (4,853) 14,846 (5,495)
Total 374,058 (4,853) 390,166 (5,495)
Not past due are those receivables for which either the contractual
or “normal” payment date has not yet elapsed. Past
due are those amounts for which either the contractual or
the “normal” payment date has passed. Amounts that are
past due but not impaired relate to a number of independent
customers for whom there is no recent history of default or
the receivable amount can be offset by amounts included in
current liabilities.
For the amounts that are past due and impaired, the movements
in the allowance for impairment for trade debtors are
as follows:
in thousands of US$ 2010 2009
At 1 January (5,495) (1,517)
Addition (223) (4,319)
Recognised expenses 788 371
Foreign exchange difference 77 (30)
At 31 December (4,853) (5,495)
The allowance for impairment represents the Company’s
estimate of losses in respect of trade debtors. The allowance
is built on specific expected loss components
that relate to individual exposures. The allowance is not
discounted when created. The creation and release for
impaired trade debtors have been included in gross margin
in the income statement. Amounts charged to the allowance
account are generally written off when there is no expectation
of recovery. The other classes within the trade and other
receivables do not contain allowances for impairment.
Financial Review / Financial Statements 2010
SBM Offshore – Annual Report 2010 153