Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2024
Section B: Notes to the Group financial statements for the year ended 30 June 2024
B7 Working capital The Group’s working capital balances are summarised as follows:
2024
2023 $M $M
Current assets Cash and cash equivalents
2,041
2,081
Trade and other receivables Prepayments
41
31
Trade receivables Other receivables Bank term deposits
189 143 255 628
184 148
44
407
Current liabilities Trade and other payables
(487)
(482)
Net working capital
2,182
2,006
Cash and cash equivalents For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts are shown within borrowings in current liabilities. All cash balances are interest bearing. The amount shown in cash and cash equivalents includes $11 million not available for general use as at 30 June 2024 (2023: $22 million). This comprises amounts required to be held in maintenance and funding reserves and prepaid tolls. Trade receivables Trade receivables accounting policy Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components in which case they are recognised at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method, less expected credit losses. Trade receivables are generally due for settlement no more than 30 days from revenue recognition. The Group applies the simplified approach to measuring expected credit losses which uses a lifetime of expected loss allowance for all trade receivables. The expected loss rates are based on the payment profiles of toll revenue over historical periods and the corresponding historical credit losses experienced. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of customers to settle the receivables.
136
135
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