ANNUAL REPORT 2011 AVESCO GROUP PLC www.avesco.com


53


Other receivables relates to miscellaneous items such as rental deposits and Carnet deposits.


Company amounts owed by other Avesco Group companies are unsecured, repayable on demand and bear interest based on local inter bank rates. These receivables are not considered impaired as they are all due from subsidiary undertakings who will receive sufficient Group support to satisfy these debts. For both Group and Company there is no difference between the carrying value and fair value of trade and other receivables.


Management estimates impairment of trade receivables based on a combination of age of debt and knowledge of the customer. Therefore debts falling due over our standard terms of 30 days are not necessarily considered impaired. As of 30 September 2011, the value of trade receivables relating to customers with no impairment of their trade receivables balance is £16,683,000 (2010: £13,610,000). The ageing analysis of the trade receivables is as follows:


2011


Group Current


31-60 days 61-90 days 91-120 days 121+ days


At 30 September


£000s 13,014


2,351 811


345 731


17,252 2010


£000s 10,296


2,112 632 287 928


14,255


As of 30 September 2011, the value of the trade receivables relating to customers with part or the whole of their trade receivables balance impaired is £569,000 (2010: £645,000). The ageing analysis of these trade receivables is as follows:


2011 Group


0-30 days 31-60 days 61-90 days 91-120 days 121+ days


At 30 September


£000s 16


12


80 42


419 569


The Group provision for impairment of trade receivables at 30 September 2011 is £535,000 (2010: £622,000). Movements in the provision are as follows: 2011


Group At 1 October


Provision for receivables impairment made during the year Receivables written off during the year Unused amounts reversed Exchange differences


At 30 September


£000s (622)


(555) 598 47 (3)


(535) 2010


£000s -


- -


8


637 645


2010


£000s (753)


(281) 345 57 10


(622)


The creation and release of provision for impaired receivables has been included in ‘operating expenses’ in the income statement. Amounts charged to the doubtful debt allowance account are generally written off when there is no expectation of recovering additional cash. The other classes within trade and other receivables do not contain impaired assets.


Management do not consider that there is any impairment in other receivables in the current or prior year.


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