Directors Report and Accounts 2021/22 - Report - Page 18
NOTES TO THE FINANCIAL STATEMENTS
10. INVESTMENTS
At 30 September 2022 the Society had share investments of £139k (2021: £118k). These represent a USD denominated
investment in Oikocredit of £114k (2021: £94k) and EUR denominated investments in social banks of £25k (2021: £24k). The
movement in value of these investment is due to exchange differences. The Directors consider the value of the investments to
be supported by underlying assets.
11. LOANS AND ADVANCES TO CUSTOMERS
2022
2021
£’000
£’000
42,569
34,596
6,035
7,402
(12,519)
(10,222)
36,085
31,776
Repayable:
In not more than one year
In more than one year
Provisions for bad debts
Bad debts
The following table explains the bad debt charge and provision for the financial year:
2021/22
Explanation (of 2021/22 charges and year end position)
£’000
£’000
Provision 1 October
10,222
Released during the year
(1,890) Write-offs of brought forward provision
Year-end provisions
(doubtful debts)
658*
2020/21
9,026
Year-end provisions include 67 producer (2021: 63) and 3 buyer (2021: 4)
accounts. Newest customer is 1 year with the Society and longest is 26
years. 19 accounts are in America, 49 in Africa and 2 in the UK.
(395)
836*
Adjustment to previous
provisions
1,119* Amounts added or no longer needed in relation to previous provisions due to
a change of circumstances of the customer during the financial year
132*
Income not recognised
1,042
Credited to provision rather than income, due to recovery of the customer
accounts being doubtful
960
Effect of currency
retranslation
1,368
Reflecting the changes in values of previous EUR and USD provisions
(337)
Provision 30 September
12,519
Total of 70 accounts represented (2021: 67 accounts)
10,222
* These figures, together with a gain of £48k (2021: charge £44k) relating to foreign exchange gains on the conversion of the currency provisions to GBP and small
write-offs/recoveries during the year, comprise the charge of £1,729k (2021: £1,012) in the Statement of Comprehensive Income on page 13.
Provisions are based on an assessment of the recoverability of customer accounts in arrears or with known cashflow problems.
Where a provision is deemed to be necessary, because there is an expectation that the Society will not recover the full
amount due, a specific impairment charge will be made based on the detail of the account in question. The Society works with
customers in arrears and exercises forbearance where possible, seeking to find a resolution which gives time for a customer to
trade successfully again. Even when a 100% provision has been allocated and/or a debt has been fully written off the books,
efforts continue to recover due amounts until such point as the Society knows that no further recovery is possible.
Shared Interest Society Limited - Directors’ Report and Financial Statements for the year ended 30 September 2022
page 18