Notes to the financial statements (continued) Section 4: Debt and equity (continued) 17. Financial risk management (continued) C. Credit risk (continued) i. Critical accounting estimates and judgements: impaired trade receivables (continued) Movements in the allowance for impairment of trade receivables during the reporting years presented, are shown in table 39 below. There is no collateral security in place in respect of these amounts. ii. Trade receivables past due but not impaired The ageing analysis of trade receivables past due but not impaired as at the reporting dates presented, is shown in table 40 overleaf. D. Liquidity risk Liquidity risk is the risk Western Power will encounter difficulty in meeting obligations associated with financial liabilities as they fall due. Western Power is governed by the Treasury Management Standard which requires active management of cash and ensures adequate facilities are in place to satisfy ongoing funding requirements. This includes actively managing working capital for immediate needs, and the debt portfolio within maturity guidelines to mitigate refinancing risk.
i. Working capital As at 30 June 2025, Western Power reported a working capital surplus of $78 million (30 June 2024: $110 million surplus). This included current liabilities of $251 million for deferred income (30 June 2024: $239 million) – relating to developer and customer contributions – which usually do not require an outflow of cash resources, but rather are subsequently recognised as revenue at the point the developers or customers are connected to the network in satisfaction of the performance obligation of the underlying connection contract (refer to note 15 for further details). When these amounts are excluded, working capital shows current assets exceeding current liabilities by $335 million (30 June 2024: $348 million).
Table 39: Critical accounting estimates and judgements: impaired trade receivables
2024/25 $M
2023/24 $M
Note
6
At 1 July Charged in the reporting year Allowed for in the reporting year Allowance for impairment reversed
5
5(c)(i)
- -
1 - 1 - 6
Total charged in the reporting year Previously allowed for and written off in the reporting year
6 (1)
At 30 June
5
Western Power Annual Report 2025
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