Page 50 - NZPM Annual Report 2020
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NZPM GROUP LIMITED
Notes to the Consolidated Financial Statements for the year ended 31 March 2020
Estimated total
Expected gross carrying
credit loss amount at Specific Lifetime
rate default provision ECL
% $’000 $’000 $’000
Age of receivables:
0-30 days 0.1 20 18 38
31-60 days 0.1 3 9 12
61-90 days 5.0 16 15 31
91-120 days 10.0 5 35 40
120+ days 20.0 4 214 218
Total loss allowance at 31 March 2019 48 291 339
A loss allowance of $319,000 (2019: $291,000) relates to $743,000 (2019: $761,000) of individually impaired trade receivables for
customers that are experiencing unexpected economic difficulties. The balance of the loss allowance $50,000 (2019: $48,000) relates
to a provision for impairment of the remaining trade receivables based on a percentage of the categorised aged balances. The
Group expects that a portion of the receivables will be recovered. As at 31 March 2020, trade receivables of $688,000 (2019: $612,000)
were past due but not impaired. These relate to a number of independent customers for whom there is no recent history of default.
2020 2019
12.3. Movement in lifetime ECL
$’000 $’000
Balance at 1 April (339) (388)
Change in loss allowance during the year 39 (234)
Amounts (recovered)/written off during the year (69) 283
Balance at 31 March (369) (339)
13. Right to returned goods asset
2020 2019
$’000 $’000
Right to returned goods asset 1,046 1,351
Total right to returned goods asset 1,046 1,351
The right to returned goods asset represents the Group’s right to recover products from customers where customers exercise their
right of return under the Group’s returns policy. The Group uses its accumulated historical experience to estimate the number of
returns on a portfolio level using the expected value method. Refer to ‘refund liability’ note 21.
14. Inventories
2020 2019
$’000 $’000
Current assets
Finished goods 34,561 31,848
Goods in transit from overseas 2,192 2,980
Provision for impairment of inventories (696) (484)
Total inventories 36,057 34,344
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NZPM GROUP LIMITED ANNUAL REPORT 2020
