EasyJet 2008 Annual Report Download - page 63

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easyJet plc
Annual report and accounts 2008
Notes to the
financial statements
continued
12 Trade and other receivables
2008 2007
£million £million
Trade receivables 142.1 169.6
Less: provision for impairment of trade receivables (2.6) (1.2)
139.5 168.4
Other receivables 27.1 22.7
Recoverable supplemental rent on leased aircraft (pledged as collateral) 20.6 2.3
Prepayments and accrued income 49.7 30.2
236.9 223.6
Supplementary rent is pledged to lessors to provide collateral should an aircraft be returned in a condition that does not meet the requirements
of the lease and is refunded when qualifying heavy maintenance is performed, or is offset against the costs incurred at the end of the lease.
Allowance for credit losses
Movements in the provision for impairment of trade receivables are shown below:
2008 2007
£million £million
As at 1 October 1.2 1.4
Increase/(decrease) in provision 2.2 (0.2)
Amounts written off (0.8) –
As at 30 September 2.6 1.2
Trade receivables are monitored and allowances are created when there is evidence that amounts due, according to the terms of the receivable,
may not be collected.
The following amounts of trade and other receivables are past due but not impaired:
2008 2007
£million £million
Up to three months past due 13.4 27.0
Over three months past due 1.7 0.3
15.1 27.3
With respect to trade receivables that are neither impaired nor past due, there are no indications at the reporting date that the payment obligations
will not be met. Amounts due from trade receivables are short term in nature and largely comprise credit card receivables placed with high credit
quality financial institutions, accordingly, the possibility of default is considered to be unlikely.
The carrying amount of trade and other receivables that would otherwise be past due or impaired whose terms have been renegotiated is nil
in both the current and prior year.
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