GCS ANNUAL REPORT 2014
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FOR THE FINANCIAL YEAR ENDED 30 JUNE <strong>2014</strong><br />
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br />
(CONTINUED)<br />
NOTE 8. TRADE AND OTHER RECEIVABLES<br />
Current<br />
<strong>2014</strong><br />
$’000<br />
2013<br />
$’000<br />
Trade receivables 27,329 39,800<br />
Allowance for impairment (666) (740)<br />
26,663 39,060<br />
Other receivables 879 859<br />
27,542 39,919<br />
a. Terms and conditions relating to the above financial instruments<br />
i. Trade receivables are non-interest bearing and generally on 30 day terms; and<br />
ii. other receivables relate to minor Group transactions arising outside normal operating activities. Interest may be charged at commercial rates and terms<br />
are generally 30 days.<br />
b. Impaired trade receivables<br />
The Group recognised a loss of $1,884,668 in impaired trade receivables during the year ended 30 June <strong>2014</strong> (2013: $399,347). The Group carries<br />
an allowance for impaired trade receivables of $666,147 (2013: $739,549). The individual allowance for impaired receivables are segmented as<br />
Commercial; $551,464 (2013: $611,052), Residential; $57,388 (2013: $38,273), Resource, Industrial, Oil & Gas; $57,295 (2013: $90,224). It is<br />
anticipated a portion of these receivables will be recoverable. Refer to Note 32 for additional information and ageing on impaired trade receivables.<br />
Movements in the allowance for impaired trade receivables are as follows:<br />
At the beginning of the financial year 740 776<br />
Allowance for impairment, recognised during the year 1,811 363<br />
Receivables written off as uncollectable (1,885) (399)<br />
666 740<br />
The establishment of the allowance for impaired receivables is included in ‘other expenses’ in the profit and loss. Amounts charged to the provision are<br />
written off when there is no expectation of recovery.<br />
c. Credit risk<br />
Refer to Note 32 for information on credit risk policies.<br />
NOTE 9. INVENTORIES<br />
Current<br />
Inventory 2,211 6,117<br />
Construction work in progress 3,578 204<br />
5,789 6,321<br />
Inventories recognised as an expense during the year ended 30 June <strong>2014</strong> amounted to $13,718,253 (2013: $13,374,944).<br />
Obsolete stock was included in this amount of $634,991 (2013: $112,000).<br />
80 GLOBAL CONSTRUCTION SERVICES LIMITED <strong>ANNUAL</strong> <strong>REPORT</strong> <strong>2014</strong>
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