2013 Apr 15 Annual Report 2012 - Phosphagenics

Notes to the consolidated fi nancial statements
7. TRADE AND OTHER RECEIVABLES
Current
2012
$’000
2011
$’000
Trade receivables 485 644
Allowance for impairment loss (100) (8)
385 636
Other receivables* 4,468 1,448
Goods and services tax (GST) recoverable 140 292
Total 4,993 2,376
Trade receivables are non interest bearing and are generally 45 day terms or as specifi ed in contracts
or agreements.
* Included within the other receivables balance is $4,459,143 relating to R&D tax incentives.
Allowance for impairment loss
A provision for impairment is recognised when there is objective evidence (such as the probability
of insolvency or signifi cant fi nancial diffi culty of the debtor) that the Group may not be able to collect
all the amounts due under the original terms of the invoice. Impaired debts are derecognised when they
are assessed as uncollectible. Debts totalling $100,104 were deemed impaired at 31 December 2012.
At 31 December, the ageing analysis of trade receivables is as follows:
Neither Past due but not impaired $’000
Period
Total
$’000
past due
or impaired
$’000
31-60 days
$’000
61-90 days
$’000
90+ days
$’000
31 December 2012 385 61 203 32 89
31 December 2011 636 238 159 224 15
91
Other balances within trade and other receivables do not contain impaired assets and are not past due.
It is expected that these other balances will be received when due.
Fair value and credit risk
Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair
value. The maximum exposure to credit risk is the fair value of receivables.
8. INVENTORIES
2012
$’000
2011
$’000
Raw materials (at cost) 535 739
Finished goods (at cost or net realisable value) 319 225
Total inventories at the lower of cost and net realisable value 854 964
During 2012, $104,300 (2011: $93,530) was recognised as an expense for inventories written off or a
provision raised for inventories adjusted to their net realisable value. This is recognised in cost of sales.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS