Notes to the financial statements (continued) Section 3: Operational assets and liabilities (continued) 8. Cash and cash equivalents (continued) D. Non-cash investing and financing activities See table 13 below. E. Changes in borrowing liabilities arising from financing activities Movements in borrowings during the reporting years presented, are shown in table 14 below. i. Non-cash movements Non-cash movements include the fair value of cash flow hedges re-classified to profit or loss over the terms of the borrowings and movements in accrued interest. F. Fair value of cash and cash equivalents The fair value of cash and cash equivalents is considered to be the same as the carrying amount. This is due to their short-term nature.
Trade receivables also include an estimate for the value of unbilled network tariff revenue. Trade and other receivables are classified as current assets unless collection is not expected for more than 12 months after the reporting date. Where payments are due after one year, they are measured at their net present value to reflect the economic cost of the delayed payment. Impairment An impairment allowance is recognised for the expected credit losses ( ECLs ) on trade receivables. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all cash flows expected to be received – discounted at the original effective interest rate, unless the effect of discounting would be immaterial. Western Power applies the simplified approach in calculating ECLs, that is, an impairment allowance is recognised for credit losses expected to result from all possible default events over the lifetime of the trade receivable. This is estimated using a provision matrix based on Western Power’s historical credit loss experience, adjusted for forward-looking factors specific to the receivables and economic environment. Amounts impaired are recognised in profit or loss. They are generally written off when there is no expectation of recovery. Indicators of this include failure of a debtor to engage in a repayment plan and/or if past due for a significant period. Any subsequent recoveries of amounts written off are credited to profit or loss.
9. Trade and other receivables
A. Accounting policy Trade and other receivables are initially recognised at fair value, being the value of the invoice sent to the customer, and subsequently measured at amortised cost less an allowance for impairment.
Table 13: Non-cash investing and financing activities
2024/25 $M
2023/24 $M
Note
Gifted network assets Additions to right-of-use assets
11(f)(i) 12(d)
75 30
66 18
Table 14: Changes in borrowing liabilities arising from financial activities
2024/25 $M
2023/24 $M
Note
7,538 955 (815) (6) 7,672
7,672 1,190 (827) (5) 8,030
At 1 July Cash movements
Proceeds from borrowings Repayments of borrowings Non-cash movements
8(e)(i)
At 30 June
98
Western Power Annual Report 2025
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