Note 8: Receivables
Accounting policy
Short-term receivables are recorded at their face value, less an allowance for expected losses and any provision for impairment.
A receivable is considered impaired when there is sufficient evidence that we will not be able to collect the amount due. The amount of the impairment is the difference between the carrying amount of the receivable and the present value of the amount expected to be collected.
No credit losses are anticipated because our debtors are primarily public organisations that can charge taxes and levies and/or receive funding from the Crown. We also note that we have not experienced any material losses over the previous two years. The allowance for credit losses at 30 June 2024 and 30 June 2023 was determined as 0%.
Breakdown of receivables and further information
The ageing profile of receivables at year-end is detailed below:
| 30 June 2024 | Gross $000 |
Estimates of losses % |
Expected credit losses $000 |
Impaired credit losses $000 |
Net $000 |
|---|---|---|---|---|---|
| Not past due | 18,777 | 0% | - | - | 18,777 |
| Past due 1-30 days | 1,650 | 0% | - | - | 1,650 |
| Past due 31-60 days | 209 | 0% | - | - | 209 |
| Past due 61-90 days | 274 | 0% | - | - | 274 |
| Past due over 90 days | 455 | 0% | - | - | 455 |
| Carrying amount | 21,365 | - | - | 21,365 |
| 30 June 2023 | Gross $000 |
Estimates of losses % |
Expected credit losses $000 |
Impaired credit losses $000 |
Net $000 |
|---|---|---|---|---|---|
| Not past due | 13,162 | 0% | - | - | 13,162 |
| Past due 1-30 days | 1,435 | 0% | - | - | 1,435 |
| Past due 31-60 days | 475 | 0% | - | - | 475 |
| Past due 61-90 days | 128 | 0% | - | - | 128 |
| Past due over 90 days | 321 | 0% | - | - | 321 |
| Carrying amount | 15,521 | - | - | 15,521 |
The receivables balance at 30 June 2024 also reflects a debtor from the Crown of $7.939 million (June 2023: 1.789 million) arising from the recognition of Crown revenue earned in 2023/24 but not reflected by the equivalent receipt (draw down) of cash as at 30 June 2024.
Movements in the provision for impairment and allowance for credit loss of receivables were as follows:
| Actual 2023/24 $000 |
Actual 2022/23 000 |
|
|---|---|---|
| Balance at 1 July | - | - |
| Additional provisions made during the year | - | - |
| Receivables written off during the year | - | - |
| Balance at 30 June | - | - |