Our performance in 2009 - Sappi

134
Notes to the group annual financial statements continued
US$ million 2009 2008
14. Other non-current assets
Loans to the Sappi Limited Share Incentive Trust participants 6 6
Financial assets* 33 22
Post-employment benefits – pension asset (refer to note 27) 52 117
Acquisition costs** – 10
Other loans 10 13
101 168
** Details of investments are available at the registered offices of the respective companies.
** Acquisition costs relate to the acquisition of M-real’s coated graphic paper business. These costs were recorded as non-current assets in 2008 pending the
successful completion of the Acquisition. In 2009, the costs were recorded as part of the purchase consideration of the Acquisition (refer to note 34).
US$ million 2009 2008
15. Inventories
Raw materials 155 163
Work in progress 83 62
Finished goods 347 324
Consumable stores and spares 207 176
792 725
The charge to the group income statement relating to the write down of inventories to net realisable value amounted to
US$10 million (2008: US$11 million and 2007: US$12 million).
The cost of inventories recognised as an expense and included in cost of sales amounted to US$4,467 million (September
2008: US$4,552 million and September 2007: US$4,150 million).
US$ million 2009 2008
16. Trade and other receivables
Trade accounts receivable, gross 682 579
Allowance for credit losses (15) (5)
Trade accounts receivable, net 667 574
Prepayments and other receivables 191 124
Management rate the quality of the trade and other receivables, which are neither past
due nor impaired, periodically against its internal credit rating parameters. The quality
of these trade receivables is such that management believe no impairment provision
is necessary, except in situations where they are part of individually impaired trade
receivables.
The carrying amount of US$858 million (2008: US$698 million) represents the group’s
maximum credit risk exposure from trade and other receivables.
Prepayments and other receivables primarily represent prepaid insurance and other
sundry receivables.
858 698
Trade receivables (including securitised trade receivables) to turnover (%) 16% 13%