7. Trade & Other Receivables
In this section...
- Annual Report 2008/09 homepage
- Chief Executive's overview
- Strategic context 2008/2009
- LINZ's performance 2008/2009
- Financial statements
- LINZ information
- Appendix
| Actual 2008 $000 |
Actual 2009 $000 |
|
|---|---|---|
| 4,044 | Debtors to non-related parties | 4,142 |
| (26) | Less: provision for doubtful debts | (47) |
| 4,018 | Net debtors | 4,095 |
| 5,752 | Monies receivable from the Crown | 3,132 |
| 9,770 | Total trade and other receivables | 7,227 |
Trade receivables are shown net of provision for doubtful debts amounting to $0.047 million (2008: $0.026 million) recognised in the current year.
All debtors are non-interest bearing and are normally settled on the 20th of the month following the date of invoice unless specific legislative terms apply; therefore, the carrying value of trade and other receivables approximates their fair value due to their short-term nature.
Those specific debtors that are insolvent are fully provided for. As at 30 June 2009, the Department has identified no debtors (2008: nil) that are insolvent.
The Department has no significant exposure to credit risk, as it has a policy that all customers who wish to trade on credit terms are subject to credit verification procedures, including an assessment of their independent credit rating. Risk limits are set for each individual customer; these risk limits are regularly monitored. In addition, receivable balances are monitored on an ongoing basis, with the result that the Department's exposure to bad debts is not significant.
All overdue receivables have been assessed for impairment and appropriate provisions applied, as follows:
| Actual 2008 $000 |
Actual 2009 $000 |
|
|---|---|---|
| 2 | Balance at 1 July | 26 |
| 24 | Additional provisions made during the year (see note 6) | 26 |
| – | Receivables written off during the period | (5) |
| 26 | Balance as at 30 June | 47 |
As at 30 June 2009 and 2008, all overdue receivables have been assessed for impairment and appropriate provisions applied, as detailed below:
| Gross | 2008 Impairment |
Net | Gross | 2009 Impairment |
Net | ||
|---|---|---|---|---|---|---|---|
| Not pass due | 3,570 | – | 3,570 | 3,518 | – | 3,518 | |
| Past due 1-30 days | 267 | – | 267 | 273 | – | 273 | |
| Past due 31-60 days | 149 | – | 149 | 109 | – | 109 | |
| Past due 61-90 days | 28 | – | 28 | 64 | – | 64 | |
| Past due > 91 days | 30 | (26) | 4 | 178 | (47) | 131 | |
| Total | 4,044 | (26) | 4,018 | 4,142 | (47) | 4,095 |
