Airways Corporation of New Zealand Limited Annual Report 2018 2019
NOTES TO THE FINANCIAL STATEMENTS
SECTION A How the numbers are calculated CONTINUED
A6 TRADE AND OTHER RECEIVABLES
CHAIR AND CEO’S REVIEW
2019 ($000’s)
2018 ($000’s)
As at 30 June
Trade accounts receivable
23,643
24,271
Contract assets
2,623
1,347
INVESTING IN THE FUTURE
Total trade and other receivables 25,618 Collectability of trade receivables is reviewed on an ongoing basis and uncollectible debts are written off. The Group uses the simplified model to determine expected credit loss. A provision for expected credit losses (ECL) is recognised for groups of trade receivables that have been grouped based on shared credit risk characteristics and the days past due. The amount of the ECL will reflect the specific circumstances of individual debtors, including the expected ability and intent to pay, however as a guide and based on previous historical observed default rates for different groupings: i) debt which is greater than 90 days but less than one year overdue is provided for at 10%; ii) debt which is greater than one year but less than two years old is provided for at 50%; and iii) debt which is greater than two years old is provided for at 100%. In addition to this, consideration is also given to other economics factors which could contribute to further expected credit losses. In relation to customers using ATM services (typically airlines), these factors include significant increases or decreases in forecast flight volumes, both of which are indicators of changing credit risk. For other customers, this assessment is completed based on the specific economic circumstances for all material debtors such as financial stability. Amounts are written off as a bad debt when evidence suggests there is no reasonable expectation of recovery, including receiver reports. The net impairment losses are recognised in profit or loss under other operating costs. Any subsequent recoveries of amounts previously provided for, or written off as bad debts, are credited against the same line item. The value of Airways’ ECL, in proportion to total trade receivables, is set out below: 26,266
INTEGRATING DRONES INTO OUR AIRSPACE
AIRWAYS INTERNATIONAL
SUSTAINABILITY
AIRWAYS BOARD OF DIRECTORS
FINANCIALS
FINANCIAL PERFORMANCE
91 days – year overdue ($000’s)
PERFORMANCE AND PROGRESS AGAINST SCI METRICS
1 –90 days overdue ($000’s)
1 –2 years overdue ($000’s)
2+ years overdue ($000’s)
Current ($000’s)
Total ($000’s)
As at 30 June 2019 Unimpaired trade receivables
19,306
4,124
7
–
–
23,437
FINANCIAL STATEMENTS
Impaired trade receivables
–
–
182
148
874
1,204
RISK GROUP STRUCTURE UNRECOGNISED ITEMS OTHER INFORMATION NOTE STRUCTURE HOW THE NUMBERS ARE CALCULATED
Total trade receivables due
19,306
4,124
189
148
874 24,641
Expected credit loss
–
–
(37)
(95)
(866)
(998)
Trade receivables recognised 19,306
4,124
152
53
8 23,643
As at 30 June 2018 Unimpaired trade receivables
19,773
3,725
21
2
1
23,522
AUDIT REPORT
Impaired trade receivables
13
43
772
319
859
2,006
Total trade receivables due
19,786
3,768
793
321
860 25,528
EVA KEY PERFORMANCE INDICATORS
Expected credit loss
(11)
(38)
(212)
(163)
(833)
(1,257)
Trade receivables recognised 19,775
3,730
581
158
27
24,271
ADDITIONAL FINANCIAL INFORMATION
GOVERNANCE AT AIRWAYS
45
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