Rangatira Annual Report 2023 - Flipbook - Page 49
Ra n g a t i ra An n u a l Re p ort 2023
Rangatira Group
Notes to the Consolidated
Financial Statements (continued)
For the year ended 31 March 2023
Note 6 Trade Receivables
Trade receivables without significant financing components are initially recognised at transaction cost and subsequently measured
at amortised cost. Impairment losses are calculated using the expected credit loss model, as permitted under NZ IFRS 9, which
uses a lifetime expected loss allowance. Changes in the carrying amount of the allowance account are recognised through profit or
loss.
Trade receivables (I)
Expected credit loss allowance
GST and other receivables
Total trade and other receivables
2023
$000
2022
$000
18,090
14,440
(238)
(55)
17,852
14,385
1,451
1,139
19,303
15,524
The average credit period on sales of goods is 36 days (2022: 42 days). No interest is charged on the trade receivables or on the outstanding balances.
The Group has provided fully for all receivables over 180 days because historical experience is such that receivables that are past due beyond 180 days
are generally not recoverable. Trade receivables between 40 days and 180 days are provided for based on estimated irrecoverable amounts from the
sale of goods, determined by reference to past experience.
(I)
Included in the Group’s trade receivables balance are debtors that are over 30 days at the reporting date with a carrying amount of
$2,972,000 (2022: $1,242,000). The Group has not provided for these as there has not been a significant change in credit quality and
the Group believes the amounts are still considered recoverable. The Group does not hold any collateral over these balances.
Before accepting any new customers, the Group uses an assessment criteria for potential customers’ credit quality and defines credit
limits by customer.
2023
2022
$000
$000
Ageing profiles of debtors:
30-60 days
1,785
1,006
61-90 days
829
332
91-180 days
358
630
2,972
1,968
2023
$000
2022
$000
55
55
Total
Movement in expected credit loss allowance:
Balance at beginning of the year
Amounts provided for during the year
(Increase)/decrease in allowance recognised in profit
Balance at the end of the year
114
-
3
-
172
55
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. Accordingly, the Directors believe that there is no further credit provision
required in excess of the expected credit loss allowance.
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