Notes to the Group financial statements

for the year ended 31 March 2009

19. Trade and other receivables

(a) The analysis of trade and other receivables disclosed in the Group balance sheet is as follows:

	Current 2009 US$m	Non-current 2009 US$m	Current 2008 US$m	Non-current 2008 US$m
Trade receivables	546	–	768	–
Less: provision for impairment of trade receivables	(25)	–	(24)	–
Less: other provisions in respect of trade receivables	(17)	–	(19)	–
Trade receivables – net	504	–	725	–
Amounts owed by associates	2	–	3	–
VAT recoverable	1	–	1	–
Other prepayments and accrued income	231	5	302	9
	738	5	1,031	9

The accounting policies for loans and receivables set out in note 2 have been applied to financial instruments of US$590m (2008: US$856m) within the above items. VAT recoverable of US$1m (2008: US$1m) and prepayments of US$152m (2008: US$183m) are not regarded as financial instruments.

There is no material difference between the fair value of trade and other receivables and the book value stated above. All non-current trade and other receivables are due within five years from the balance sheet date.

(b) The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies:

	Current 2009 US$m	Non-current 2009 US$m	Current 2008 US$m	Non-current 2008 US$m
US dollar	312	4	327	4
Sterling	177	–	306	–
Brazilian real	89	–	87	–
Euro	93	–	250	4
Other	67	1	61	1
	738	5	1,031	9

(c) Trade receivables of US$366m (2008: US$530m) were neither past due nor impaired and these are further analysed as follows:

	Current 2009 US$m	Current 2008 US$m
New customers (of less than six months’ standing)	24	41
Existing customers (of more than six months’ standing) with no defaults in the past	336	478
Existing customers (of more than six months’ standing) with defaults in the past which were fully recovered	6	11
	366	530

None of these trade receivables has been renegotiated in the year (2008: US$nil).

(d) Trade receivables of US$134m (2008: US$180m) were past due but not considered impaired and these are further analysed as follows:

	Current 2009 US$m	Current 2008 US$m
Up to three months	108	148
Three to six months	20	20
Over six months	6	12
	134	180

(e) Trade receivables of US$29m (2008: US$39m) were considered partially impaired and provided for and these are further analysed as follows:

	Current 2009 US$m	Current 2008 US$m
Up to three months	9	7
Three to six months	9	10
Over six months	11	22
	29	39
Impairment provision	(25)	(24)
	4	15

The other classes within trade and other receivables at the balance sheet dates do not include any impaired assets.

(f) Movements on the impairment provision are as follows:

	2009 US$m	2008 US$m
At 1 April	24	14
Differences on exchange	(3)	1
Additions through business combinations	–	9
Provision for receivables impairment	13	17
Provision utilised in respect of debts written off	(6)	(14)
Unused amounts reversed	(3)	(3)
At 31 March	25	24

The impairment provision has been determined by reference to the age of the receivable and an assessment of the portion of the receivable expected to be recovered. Amounts charged and credited to the Group income statement in respect of this provision are included in administrative expenses. Other provisions in respect of trade receivables mainly comprise credit note provisions.