Telstra 2007 Annual Report Download - page 157

Telstra Corporation Limited and controlled entities
154
Notes to the Financial Statements (continued)
(a) Trade receivables and allowance for doubtful debts
The ageing of trade receivables at 30 June 2007 is detailed below:
The movement in the allowance for doubtful debts in respect of trade
receivables is detailed below:
Our policy requires customers to pay us in accordance with agreed
payment terms. Depending on the customer segment, our settlement
terms are generally 14 to 30 days from date of invoice. All credit and
recovery risk associated with trade receivables has been provided for
in the balance sheet.
Our trade receivables include our customer deferred debt and White
Pages® directory charges. Our customer deferred debt allows eligible
post paid mobile customers the opportunity to repay the cost of their
mobile handset and approved accessories monthly over 12, 18 or 24
months. The loan is provided interest free to our mobile postpaid
customers. Similarly, the White Pages® directory entries can be repaid
over 12 months.
Trade receivables have been aged according to their original due date
in the above ageing analysis, including where repayment terms for
certain long out standing trade receivables have been renegot iated.
We hold security for a number of trade receivables in the form of
guarantees, deeds of undertaking, letters of credit and deposit s.
During fiscal 2007 and 2006, t he securities we called upon were
insignificant.
We have used the following basis to assess the allowance loss for
trade receivables:
• a statistical approach to determine the historical allowance rate
for each debt tranche, and applying this allowance rate to the debt
tranches at the end of the reporting period;
• an individual account by account assessment based on past credit
history; and
• any prior knowledge of debt or insolvency or other credit risk.
11. Trade and other receivables (continued)
Telstra Group Telstra Entity
As at 30 June As at 30 June
2007 2006 2007 2006
Gross Allowance Gross Allowance Gross Allowance Gross Allowance
$m $m $m $m $m $m $m $m
Not past due (i). . . . . . . . . . . . . . . 1,765 -1,664 (14) 1,404 - 1,255 (14)
Past due 0 - 30 days . . . . . . . . . . . . 677 (3) 678 (2) 504 (3) 537 (2)
Past due 31 - 60 days . . . . . . . . . . . 186 (11) 166 (13) 130 (6) 123 (8)
Past due 61 - 90 days . . . . . . . . . . . 82 (13) 70 (10) 59 (9) 44 (6)
Past due 91 - 120 days . . . . . . . . . . 72 (21) 63 (16) 50 (12) 46 (8)
Past 120 days. . . . . . . . . . . . . . . . 188 (113) 144 (103) 139 (96) 96 (86)
2,970 (161) 2,785 (158) 2,286 (126) 2,101 (124)
Telstra Group Telstra Entity
Year ended 30 June Year ended 30 June
2007 2006 2007 2006
$m $m $m $m
Opening balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (158) (159) (124) (125)
- additional provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27) (23) (18) (21)
- addition due to acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) (2) --
- reduction due to disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1---
- amounts used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 710 4
- amounts reversed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 719 618
- foreign currency exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . 1---
Closing balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (161) (158) (126) (124)