Download Financial Statements - Ports of Auckland

Ports of Auckland Limited & Subsidiaries financial report 09
NOTES TO THE FINANCIAL STATEMENTS (continued)
30 June 2009
12 Receivables and prepayments
Group
Parent
2009
$’000
2008
$’000
2009
$’000
2008
$’000
Trade receivables 14,163 15,815 14,149 15,815
Provision for doubtful receivables (130) (282) (123) (282)
Net trade receivables 14,033 15,533 14,026 15,533
Prepayments 473 645 468 641
14,506 16,178 14,494 16,174
The fair value of trade receivables approximates their carrying values.
(a) Impaired receivables
As at 30 June 2009 current trade receivables of the Group with a nominal value of $141,000 (2008: $225,000) were impaired.
The amount of the provision was $40,000 (2008: $108,000). The individually impaired receivables mainly relate to customers, which
are in unexpectedly difficult economic situations. It was assessed that a portion of the receivables is expected to be recovered.
The ageing of these receivables is as follows:
Group
Parent
2009
$’000
2008
$’000
2009
$’000
2008
$’000
3 to 6 months 141 225 135 225
141 225 135 225
Past due but not impaired
As at 30 June 2009, trade receivables of $4,195,000 (2008: $6,430,000) were past due but not impaired. These relate to a number of
independent customers for whom there is no recent history of default. The ageing analysis of these trade receivables is as follows:
2009
$’000
Group
2008
$’000
2009
$’000
Parent
2008
$’000
Up to 3 months 4,195 6,430 4,187 6,430
3 to 6 months 95 208 89 208
4,290 6,638 4,276 6,638
Movements in the provision for impairment of receivables are as follows:
Group
Parent
2009
$’000
2008
$’000
2009
$’000
2008
$’000
At 1 July 282 309 282 309
Provision for impairment recognised during the year 17 71 10 71
Receivables written off during the year as uncollectible (42) (82) (42) (82)
Unused amount reversed (127) (16) (127) (16)
130 282 123 282
The creation and release of the provision for impaired receivables has been included in ‘administration expenses’ in the income statement.
Amounts charged to the provision for doubtful receivables are generally written off when there is no expectation of recovering
additional cash.
The other classes within trade and other receivables do not contain impaired assets and are not past due.
(b) Bad and doubtful trade receivables
The company has recognised a loss of $48,000 (2008: $84,000) in respect of bad and doubtful trade receivables. The loss has been
included in ‘administration expenses’ in the income statement.
(c) Credit risk
The Group has policies in place to ensure that the sales of services are made to customers with appropriate credit history.
At 30 June 2009 73% (2008: 67%) of the trade receivables balance represented amounts owed by the Group’s ten largest customers.
The Group has no history of defaults with these major customers.