psc - Kufpec

KUWAIT FOREIGN PETROLEUM EXPLORATION COMPANY K.S.C. (CLOSED)
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2010
7. TRADE AND OTHER RECEIVABLES
2010 2009
KD 000’s KD 000’s
Trade receivables 63,743 38,480
Less: Allowance for doubtful doubts (1,676) (1,720)
62,067 36,760
Due from joint venture participants 14,653 20,849
Prepaid expenses 984 960
Other receivables 38,015 9,710
115,719 68,279
The average credit period on sales is 60 days. No interest is charged on the overdue trade receivables. The
Group has provided fully for all irrecoverable trade receivables, determined by reference to past default
experience.
As at 31 December 2010, trade receivables of KD 58,567 thousand (2009: KD 34,376 thousand) were fully
performing.
Included in the Group’s trade receivables balance are debtors with a carrying amount of KD 3,500 thousand
(2009: KD 2,384 thousand) which are past due at the reporting date for which the Group has not provided as
there has not been a significant change in credit quality and the amounts are still considered recoverable.
Ageing of past due but not impaired
2010 2009
KD 000’s KD 000’s
61 – 90 days 2,460 1,238
91 – 120 days 1,040 1,146
Total 3,500 2,384
Movement in the allowance for doubtful debts is as follows:
2010 2009
KD 000’s KD 000’s
Balance at beginning of the year 1,720 1,692
Charge for the year - 28
Reversal of allowance for doubtful debts (44) -
Balance at end of the year 1,676 1,720
In determining the recoverability of a trade receivable, the Company considers any change in the credit
quality of the trade receivable from the date credit was initially granted up to the reporting date. The
concentration of credit risk is limited due to the customer base being large and unrelated. Accordingly,
management believes that there is no further credit provision required in excess of the allowance for
doubtful debts.
The maximum exposure to credit risk at the reporting date is the carrying amount of each class of trade
receivables mentioned above. All the impaired trade receivables are above 360 days (2009: 360 days).
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