Cellmid 2017 Annual Report 45
Accounting Policy
Receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for impairment.
Collectability of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A
provision for impairment is established when there is objective evidence that the Group will not be able to collect all amounts
due according to the original terms of receivables.
Provision for impairment of receivables
The provision for impairment of receivables assessment 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 individual debtor’s financial position.
Impairment of receivables
The Group has recognised a loss of $8,485 (2016: $6,411) in profit or loss in respect of impairment of receivables for the year
ended 30 June 2017.
Past due but not impaired
Customers with balances past due but without provision for impairment of receivables amount to $18,150 as at 30 June 2017
(30 June 2016: $10,649).
The Group did not consider a credit risk on the aggregate balances after reviewing the credit terms of customers based on
recent collection practices.
Effective interest rates and credit risk
The Group has no significant concentration of credit risk with respect to any single counterparty or Group of counterparties
other than those receivables specifically provided for and mentioned within Note 24(a). The class of assets described as ‘trade
and other receivables” is considered to be the main source of credit risk related to the Group.
There is no interest rate risk for the balances of trade and other receivables. There is no material credit risk associated with
other receivables.
2017 2016
$ $
Trade receivables 386,850 282,047
Less: Provision for impairment (20,970) (21,430)
Other receivables 12,404 37,722
378,284 298,339
2017 2016
$ $
The ageing of the impaired receivables provided for above are as follows:
Over 6 months overdue 20,970 21,430
Movements in the provision for impairment of receivables are as follows:
Opening balance 21,430 15,019
Additional provisions recognised - 6,411
Receivables written off during the year as uncollectable (460) -
Closing balance 20,970 21,430