IFRS 7 para 37, age analysis of financial assets past due but not impaired and analysis of impaired assets

Euromoney Institutional Investor PLC – Annual report – 30 September 2017

Industry: financial services 

[Note IFRS 9 not yet adopted]

16 Trade and other receivables

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The average credit period on sales of goods and services is 30 days. Trade receivables beyond 60 days overdue are provided for based on estimated irrecoverable amounts from the sale of goods and services, determined by reference to past default experience.

Credit terms for customers are determined in individual territories. There are no customers who represent more than 5% of the total balance of trade receivables.

As at 30 September 2017, trade receivables of £25.2m (2016: £28.0m) were not yet due.

Ageing of past due but not impaired trade receivables:

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The Group has not provided for these trade receivables as there has been no significant change in their credit quality and the amounts are still considered recoverable. These relate to a number of independent customers for whom there is no recent history of default. The average age of these receivables is 66 days (2016: 73 days). The Group does not hold any collateral over these balances.

Ageing of trade receivables impaired and partially provided for:

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The amount of the provision for impaired trade receivables was £3.7m (2016: £5.3m). It was assessed that a portion of the receivables is expected to be recovered.

Movements on the Group provision for impairment of trade receivables are as follows:

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In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the customer base being large and unrelated. Accordingly, the Directors believe that there is no further credit risk provision required in excess of the allowance for doubtful debts.

The allowance for doubtful debts does not include individually impaired trade receivables which have been placed under liquidation as these trade receivables are written off directly to the Income Statement.

 

 

 

 

 

 

 

 

 

 

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