Note 8: Debtors and other receivables
Te Motu Regional Economic Development Trust: Model financial statements 2008/09.
Debtors and other receivables
| NZ IAS 1.75(b) | Actual 2009 |
Actual 2008 |
|||||
|---|---|---|---|---|---|---|---|
| Gross debtors and other receivables | 76,099 | 150,713 | |||||
| Less provision for impairment | (23,790) | (41,150) | |||||
| Total debtors and other receivables | 52,309 | 109,563 | |||||
| Fair value | |||||||
| NZ IFRS 7.25,29(a) | Debtors and other receivables are non-interest bearing and receipt is normally on 30-day terms. Therefore, the carrying value of debtors and other receivables approximates their fair value. | ||||||
| Impairment | |||||||
| NZ IFRS 7.36(d) | The carrying amount of receivables that would otherwise be past due or impaired whose terms have been renegotiated is $16,745 (2008 $32,300). | ||||||
| NZ IFRS 7.37(a) | The status of receivables as at 30 June 2009 and 2008 are as follows: | ||||||
| 2009 | 2008 | ||||||
| Gross | Impairment | Net | Gross | Impairment | Net | ||
| Not past due | 25,113 | 0 |
25,113 | 49,735 | 0 |
49,735 | |
| Past due 1-30 days | 16,742 | (5,234) | 11,508 | 33,157 | (9,053) | 24,104 | |
| Past due 31-60 days | 11,415 | (4,282) | 7,133 | 22,607 | (7,406) | 15,201 | |
| Past due 61-90 days | 9,132 | (5,948) | 3,184 | 18,086 | (10,288) | 7,798 | |
| Past due > 91 days | 13,697 | (8,326) | 5,371 | 27,128 | (14,403) | 12,725 | |
| Total | 76,099 | (23,790) | 52,309 | 150,713 | (41,150) | 109,563 | |
| NZ IFRS 7.37(b) | The provision for impairment has been calculated based on a review of significant debtor balances and a collective assessment of all debtors (other than those determined to be individually impaired) for impairment. The collective impairment assessment is estimated on the basis of historical loss experience of the Trust's debtors. | ||||||
| Actual 2009 |
Actual 2008 |
||||||
| Individual impairment | 15,000 | 25,480 | |||||
| Collective impairment | 8,790 | 15,670 | |||||
| Total provision for impairment | 23,790 | 41,150 | |||||
| Individually impaired receivables have been assessed as impaired because of the significant financial difficulties being experienced by the debtor and Trust management concluding that it is remote that the overdue amounts will be recovered. | |||||||
| NZ IFRS 7.16 | Movements in the provision for impairment of receivables are as follows: | ||||||
| Actual 2009 |
Actual 2008 |
||||||
| Balance at 1 July | 41,150 | 40,540 | |||||
| NZ IFRS 7.20(e) | Additional provisions made during the year (note 6) | 24,901 | 42,832 | ||||
| Receivables written-off during period | (42,261) | (42,222) | |||||
| Balance at 30 June | 23,790 | 41,150 | |||||
| NZ IFRS 7.36(b),37(c) | The Trust holds no collateral or other credit enhancements for financial instruments that give rise to credit risk, including those instruments that are overdue or impaired. | ||||||
Note 7: Cash and cash equivalents
