ZaraAnnual-English2010

Consolidated Financial Statements | Notes To The Consolidated Financial Statements December 31, 2010 Annual Report 2010
9.
ACCOUNTS RECEIVABLE
10.
OTHER DEBIT BALANCES
2010 2009
This item consists of the following:
JD
JD
Accounts receivable 9,972,760 7,745,569
2010 2009
JD
JD
Less: provision for doubtful accounts (618,020) (743,910)
9,354,740 7,001,659
Refundable deposits 808,071 649,305
Advance payments to contractors 607,662 1,802,419
Prepaid expenses 1,642,371 1,529,064
Movement in the allowance for doubtful accounts is as follows:
Advance payments on purchase of land 7,441,028 4,142,298
2010 2009
JD
JD
Others 692,801 239,854
11,191,933 8,362,940
Beginning balance 743,910 897,101
Charge for the year 402,579 562,215
Reversal (55,661) (560,553)
11.
CASH AND CASH EQUIVALENTS
Write-offs (473,408) (154,853)
Ending balance 618,020 743,910
2010 2009
As at 31 December, the ageing of unimpaired accounts receivables is as follows:
JD
JD
Past due but not impaired
Neither past due nor
impaired 1-30 days 31-90 days 91-120 days > 120 days Total
JD JD JD JD JD JD
Cash on hand 159,108 310,228
Current accounts 7,774,408 4,437,231
Term deposits 2,042,994 2,340,842
9,976,510 7,088,301
2010 1,095,005 5,057,641 2,944,245 113,829 144,020 9,354,740
2009 773,534 3,012,689 2,998,868 163,172 53,396 7,001,659
Cash and cash equivalents include current accounts and term deposit bearing annual interest rates ranging from
1% to 4.75%.
Unimpaired receivables are expected, on the basis of past experience, to be fully recoverable. It is not the
practice of the Group to obtain collateral over receivables and the vast majority are, therefore, unsecured.
For the purpose of the consolidated statement of cash flows, cash and cash equivalents comprise the following:
2010 2009
JD
JD
Cash in hand and at banks 9,976,510 7,088,301
Bank overdraft (1,838,716) (1,309,842)
8,137,794 5,778,459
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