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 (continued)
Trade receivables (continued) The loss allowance for trade receivables was determined as follows:
2024
Up to 90 days past due
More than 90 days past due
Current
Total
Expected loss rate
1%
13%
69%
NA¹ 225
Gross carrying amount ($M)
143
39
43
Loss allowance ($M)
(1)
(5)
(30)
(36)
2023
Up to 90 days past due
More than 90 days past due
Current
Total
Expected loss rate
1%
4%
61%
NA¹ 211
Gross carrying amount ($M)
135
35
41
Loss allowance ($M)
(1)
(1)
(25)
(27)
1. NA―Not applicable. The closing loss allowances for trade receivables reconciles to the opening loss allowance as follows:
2024
2023 $M $M
Opening loss allowance
27 21
26
Increase in loss allowance recognised in the profit and loss during the year
5
Receivables written off during the year as uncollectible Disposals through loss of control of subsidiary 1
(12)
(2) (2)
—
Closing loss allowance
36
27
1. Relates to the sale of the Group’s controlling interest in A25 (refer to Note B21). Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual payments for an extended period. Other receivables Other receivables are financial assets at amortised cost and include other receivables and bank term deposits. Other receivables accounting policy The Group initially recognises other receivables at fair value and subsequently at amortised cost using the effective interest method, less expected credit losses. The Group applies the general approach to measuring expected credit losses which uses 12 months of expected credit losses after reporting date. However, if at reporting date the credit risk of a financial asset has significantly increased since its initial recognition, the loss allowance is calculated based on the lifetime of expected credit losses.
137
136
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