2016 RASV Annual Report

5. TRADE AND OTHER RECEIVABLES (cont.)
At 31 March, the ageing analysis of trade receivables is as follows:
As at 31 March 2016 As at 31 March 2015
Trade Receivable Allowance Trade Receivable Allowance
Current 226,009 249,593
31 – 60 days 134,077 210,645
61 – 90 days - 25,045
91 days and over 7,043 (50,000) 18,299 (50,000)
Closing Balance 367,129 (50,000) 503,582 (50,000)
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost which is the original invoice amount
less an allowance for any uncollectible amount. Trade receivables are generally due for settlement within 30 days.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off by
reducing the carrying amount directly. A provision for impairment of trade receivables is raised when there is objective evidence that the
company will not be able to collect all amounts due according to the original terms of the receivables.
The provision for impairment of receivables requires a degree of estimation and judgement. The level of provision is assessed by taking
into account the recent sales experience, the ageing of receivables, historical collection rates and specific knowledge of the financial
position of individual debtors. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial
reorganisation and default or delinquency in payments (more than 60 days overdue) are considered indicators that the trade receivable
may be impaired. The amount of impairment allowance is the difference between the asset’s carrying amount and the present value of
estimated future cash flows. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.
Other receivables are recognised at amortised cost, less any provision for impairment.
6. PREPAYMENTS
2016 2015
$ $
Prepaid Insurance 222,032 232,657
Prepaid Other 336,743 195,013
558,775 427,670
Expenses paid in the current financial year for which the economic benefits have not been completely consumed at reporting date, have
been deferred and recorded as a prepayment in the Statement of Financial Position. Prepayments are amortised as an expense in the
Statement of Profit or Loss and Other Comprehensive Income in future years as the economic benefits of the payment are consumed.
Annual Report 2016 55