/ 1 3 3
NOTES TO THE FINANCIAL STATEMENTS
C A M B R I D G E I N D U S T R I A L T R U S T
A N N U A L R E P O R T 2 0 1 5
7.
Trade and other receivables (Cont’d)
Impairment losses
The ageing of trade receivables at the reporting date is as follows:
Gross
receivables
Impairment
losses
Gross
receivables
Impairment
losses
2015
2015
2014
2014
$’000
$’000
$’000
$’000
Group
Past due 0 – 30 days
890
–
97
–
Past due 31 – 120 days
375
16
18
–
More than 120 days past due
1,368
1,356
2,193
1,197
2,633
1,372
2,308
1,197
Trust
Past due 0 – 30 days
778
–
97
–
Past due 31 – 120 days
375
16
18
–
More than 120 days past due
1,368
1,356
2,193
1,197
2,521
1,372
2,308
1,197
The movements in impairment loss in respect of trade receivables are as follows:
Group and Trust
2015
2014
$’000
$’000
At 1 January
1,197
–
Impairment losses made
175
1,197
At 31 December
1,372
1,197
Trade receivables are individually assessed for impairment at the end of the financial year. The impairment loss
relate to two debtors that are in financial difficulties and have defaulted in payments.
One of the debtors is in liquidation with its outstanding balances fully provided for while the other debtor is on
a repayment schedule in respect of the past due balances. For the latter debtor, a provision of approximately
$1.2 million was made for the outstanding balances which were over 120 days past due and in excess of the bank
guarantees held by CIT. The Manager has issued the debtor, who is no longer occupying the property, a statutory
demand letter and is actively pursuing the outstanding balance.
The Manager believes that no additional allowance is necessary in respect of the remaining trade receivables as
these receivables are mainly due from tenants that have good payment records and sufficient securities in the
form of bankers’ guarantees, insurance bonds or cash security deposits as collaterals.
Source of estimation uncertainty
The Manager maintains an allowance for impairment at a level considered adequate to provide for potential
uncollectible receivables. The level of this allowance is evaluated on the basis of factors that affect the collectability
of debtors, their payment behaviour and known market factors. The Manager continually reviews the age and
status of receivables and identifies accounts for which impairment allowances are required.
The Group and the Trust’s exposure to credit risk related to trade and other receivables is disclosed in Note 25.
