11. Receivables

2019
$000
2018
$000
Current  
Accounts receivable 5,089 1,738
Less: Loss allowance (308) (222)
  4,781 1,516
GST receivables 195 360
Other receivables (accrued revenue) 740 844
TOTAL RECEIVABLES5,7162,720

Receivables include accounts and other receivables and are recognised at fair value less any loss allowance.

Accounts receivables are generally settled within 30 days and other receivables within 30 days.

The loss allowance reflects lifetime expected credit losses and represents the amount of receivables the department estimates are likely to be uncollectible and are considered doubtful.

Credit risk exposure of receivables

Receivables are monitored on an ongoing basis to ensure that exposure to bad debts is not significant. The entity applies the AASB 9 simplified approach to measuring expected credit losses. This approach recognises a loss allowance based on lifetime expected credit losses for all accounts receivables. To measure expected credit losses, receivables have been grouped based on shared risk characteristics and days past due.

No loss allowance was recorded for receivables from entities controlled by the NT Government or other government departments on the basis that any impairment would be immaterial due to their high credit ratings. The department has determined there are three receivables groups for measuring expected credit losses, based on their risk characteristics and demonstrated loss patterns.

The expected loss rates are based on historical observed loss rates, adjusted to reflect current and forward-looking information, including macroeconomic factors and their expected impacts on the default rates of each group. The department determines that change in the unemployment rate is correlated to the credit risk of its trade receivables and, from past experience, a 1 per cent change in the unemployment rate approximates a five per cent change in its default rates.

Other receivables were assessed for impairment in accordance with AASB 9, no loss allowance was recorded.

In accordance with the provisions of the Financial Management Act 1995, receivables are written off when there is no reasonable expectation of recovery.  Indicators that there is no reasonable expectation of recovery include a failure to make contractual payments for a period greater than 90 days past due.

Credit risk for the comparative year is assessed under AASB 139 and is based on objective evidence of impairment.

The loss allowance for receivables as at the reporting date is disclosed as below.

Internal receivables

2019

2018

Gross
receivables
$000
Loss
rate
%
Expected
credit losses
$000
Net receivables
$000
Ageing of receivables
$000
Impairment allowance
$000
Net receivables
$000
Not overdue 168 0 0 168 147 0 147
Overdue for less than 30 days 1 0 0 1 100 0 100
Overdue for 30 to 59 days 0 0 0 0 0 0 0
Overdue for 60 to 89 days 0 0 0 0 0 0 0
Overdue for
90 days and over
0 0 0 0 0 0 0
Total 169  0 169 247 0 247
External receivables:
Receivables Group: Salary Over payment Recovery

2019

2018

Gross
receivables
$000
Loss
rate
%
Expected
credit losses
$000
Net receivables
$000
Ageing of receivables
$000
Impairment allowance
$000
Net receivables
$000
Not overdue

2

44

(1)

1

0

0

0

Overdue for less than 30 days

0

50

0

0

0

0

0

Overdue for 30 to 59 days

0

58

0

0

0

0

0

Overdue for 60 to 89 days

0

58

0

0

0

0

0

Overdue for
90 days and over

1

59

(1)

0

4

(3)

1

Total

3

 

(2)

1

4

(3)

1

Reconciliation of loss allowance for receivables

2019
$000
2018
$000
Internal receivables   
Opening balance 0 0
Adjustment on adoption of AASB 9 0 0
Adjusted opening balance 0 0
   
Written off during the year 0 0
Recovered during the year 0 0
Increase/decrease in allowance recognised in profit or loss 0 0
Total internal receivables 0 0
   
External  receivables   
Opening balance 222 194
Adjustment on adoption of AASB 9 0 0
Adjusted opening balance 222 194
   
Written off during the year (4) (10)
Recovered during the year (10) (37)
Increase/decrease in allowance recognised in profit or loss 100 75
Total external receivables 308 222

Prepayments

Prepayments represent payments in advance of receipt of goods and services or that part of expenditure made in one accounting period covering a term extending beyond that period.


ANNUAL REPORT 2018-19 - DEPARTMENT OF PRIMARY INDUSTRY AND RESOURCES


Last updated: 23 October 2019

Give feedback about this page.

Share this page:

URL copied!