Vector Annual Report 2020

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9. Trade and other receivables continued Expected credit losses

In assessing credit losses for trade receivables, the group applies the simplif ied approach and records lifetime expected credit losses (“ECLs”) on trade receivables. The group consider both quantitative and qualitative inputs. Quantitative data includes past collection rates, industry statistics, ageing of receivables, and trading outlook. Qualitative inputs include past trading history with the group. Lifetime ECLs result from all possible default events over the expected life of a trade receivable. The group considers the probability of default upon initial recognition of the trade receivable, based on reasonable and available information on the group’s customers and groups of customers. The group’s trade receivables are monitored in two groups: business customers, and mass market residential customers. The group’s customer acceptance process includes a check on credit history, prof itability, and the customer’s external credit rating if available. Different levels of sale limits are also imposed on customer accounts by nature. The group have assessed the impact COVID–19 had on the group’s customers and determined the effect to be insignif icant.

10. Intangible assets

CAPITAL WORK IN PROGRESS $M

TRADE NAMES $M

CUSTOMER INTANGIBLES $M

TOTAL $M

GOODWILL $M

EASEMENTS $M

SOFTWARE $M

NOTE

Carrying amount 30 June 2018

33.9 49.9

16.8 16.8

61.1

15.8 1,269.6 16.8 1,333.6

11.3 1,408.5 11.3 1,705.0

Cost

276.6

Accumulated amortisation Accumulated impairment

(16.0)

– – –

(215.5)

(1.0)

– –

(232.5)

– – – –

– –

– – – – –

(64.0)

(64.0)

Additions Transfers

– –

38.1

38.1

0.5

30.6

(31.1)

Acquisition of business

– – –

0.1

7.4

– – –

7.5

Impairment

10.1

(3.9) (5.9)

(42.7)

(46.6) (34.3)

Amortisation for the period Carrying amount 30 June 2019

(26.6)

(1.8)

24.1 49.9

17.3 17.3

65.2

14.0 1,234.3 16.8 1,341.0

18.3 1,373.2 18.3 1,742.3

Cost

299.0

Accumulated amortisation Accumulated impairment

(21.9)

– – –

(233.8)

(2.8)

– –

(258.5) (110.6)

(3.9)

– –

– – – – –

(106.7)

– – – –

– –

49.0

49.0

Additions Transfers

0.5

45.3

(45.8)

– – – –

(65.8)

– – – –

(65.8)

Sale of Kapuni gas interests

(0.2)

(0.2)

Disposals

(15.4)

(12.2)

(4.4)

(32.0) (40.8)

Impairment

10.1

(4.5)

(34.5)

(1.8)

Amortisation for the period Carrying amount 30 June 2020

4.2

17.8 17.8

75.8

1,164.1

21.5 1,283.4 21.5 1,724.4

49.9

343.2

16.8 1,275.2

Cost

(26.4) (19.3)

– –

(267.4)

(4.6)

– –

(298.4) (142.6)

Accumulated amortisation Accumulated impairment

(12.2)

(111.1)

THE INTERPLAY OF TODAY AND TOMORROW

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