Page 49 - NZPM Annual Report 2020

NZPM GROUP LIMITED
Notes to the Consolidated Financial Statements for the year ended 31 March 2020

12. Trade and other receivables
2020 2019
$’000 $’000
Current assets
Trade receivables 22,358 23,885
Loss allowance (369) (339)
21,989 23,546

Prepayments 3,061 1,194
Government COVID-19 wage subsidy scheme 3,599 0
Accruals and other receivables 5,955 6,122
Total trade and other receivables 34,604 30,862

The average credit period on sales of goods is 30 days. No interest is charged on outstanding trade receivables. There have been no
changes in the estimation techniques or significant assumptions made during the current reporting period.

The Group measures the loss allowance for trade receivables at an amount equal to lifetime expected credit losses (ECL). The ECL on
trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the
debtor’s current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in
which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date.
The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there
is no realistic prospect of recovery. Other receivables are assessed collectively to determine whether there is objective evidence that a
potential loss has occurred but not yet been identified.

2020 2019
12.1. Risk profile of trade receivables
$’000 $’000
Age of receivables:
0-30 days 18,432 20,105
31-60 days 2,892 2,829
61-90 days 650 370
91-120 days 99 159
120+ days 285 422
Total trade receivables 22,358 23,885

Estimated total
Expected gross carrying
12.2. Loss allowance at lifetime ECL credit loss amount at Specific Lifetime
rate default provision ECL
% $’000 $’000 $’000
Age of receivables:
0-30 days 0.1 20 0 20
31-60 days 0.1 3 0 3
61-90 days 5.0 27 2 29
91-120 days 10.0 0 83 83
120+ days 20.0 0 234 234
Total loss allowance at 31 March 2020 50 319 369

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NZPM GROUP LIMITED ANNUAL REPORT 2020