Notes to the financial statements
11. Trade and other receivables continued
At 30 June, the exposure to credit risk for trade and other receivables by type of counterparty was as follows.
2023 $M
2022 $M
Not credit impaired
Credit impaired
Not credit impaired
Credit impaired
75.2
1.5
Business customers
43.4
1.8
Mass market customers (includes customer contributions)
13.0
0.9 6.0
12.9
–
–
Third party asset damages
–
5.5 0.8 8.1
4.4
–
Residential and other Total gross amount
5.0
92.6
8.4
61.3
–
(4.8)
Loss allowance
–
(4.0)
Total carrying amount
92.6
3.6
61.3
4.1
The following table provides information about the exposure to credit risk and expected credit losses for trade and other receivables as at 30 June.
2023 $M
2022 $M
Gross amount
Loss allowance
Gross amount
Loss allowance
84.2
–
Not past due
53.0
–
6.9 2.4 7.5
(0.2) (0.3) (4.3) (4.8)
Past due 1-30 days Past due 31-120 days
7.5 3.1 5.8
(0.2) (0.4) (3.4) (4.0)
Past due more than 120 days
Balance at 30 June
101.0
69.4
Policies
Trade receivables are predominantly billed receivables. Sales to business customers are billed monthly. Trade receivables from mass market, residential and other customers are recognised as they are originated. Other receivables represent the amount of contractual cash flows that the group expects to collect from third parties but that did not arise from contracts with customers. Where contractual cash flows are expected or contracted to be received after 12 months, the balance is presented as non-current. In assessing credit losses for trade receivables, the group applies the simplified approach and records lifetime expected credit losses (“ECLs”) on trade receivables. The group considers 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, profitability, and the customer’s external credit rating if available. Different levels of sale limits are also imposed on customer accounts by nature.
Expected credit losses
75
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