Financial statements | Contents
Section B: Notes to the Group financial statements for the year ended 30 June 2025
B7
Working capital (continued)
Trade receivables (continued) The loss allowance for trade receivables was determined as follows:
2025
Up to 90 days past due
More than 90 days past due
Current
Total
Expected loss rate
1%
15%
60%
NA¹ 278
Gross carrying amount ($M)
137
50
91
Loss allowance ($M)
(1)
(7)
(55)
(63)
2024²
Up to 90 days past due
More than 90 days past due
Current
Total
Expected loss rate
1%
11%
50%
NA¹ 242
Gross carrying amount ($M)
136
45
61
Loss allowance ($M)
(1)
(5)
(30)
(36)
1. NA―Not applicable. 2. Comparatives have been restated to align with current period presentation. The closing loss allowances for trade receivables reconciles to the opening loss allowance as follows:
2025
2024 $M $M
Opening loss allowance
36 31
27 21
Increase in loss allowance recognised in the profit and loss during the year
Receivables written off during the year as uncollectible
(4)
(12)
Closing loss allowance
63
36
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. 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.
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