NOTES TO THE FINANCIAL STATEMENTS
8 Trade and other receivables (Cont’d)
Impairment losses
The ageing of trade receivables at the reporting date is as follows:
Gross Impairment
Gross Impairment
Group and Trust
receivables
2014
losses
2014
receivables
2013
losses
2013
$’000
$’000
$’000
$’000
Past due 0 – 30 days
97
–
448
–
Past due 31 – 120 days
18
–
209
–
More than 120 days past due
2,193
1,197
984
–
2,308
1,197
1,641
–
The movements in impairment loss in respect of trade receivables are as follows:
Group and Trust
2014
2013
$’000
$’000
At 1 January
–
–
Impairment losses made
1,197
–
At 31 December
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 current tenant), a provision
of approximately $1.0 million was made for the outstanding balances which were over 120 days past due and
in excess of the bank guarantees held by CIT. An instalment plan has been established with the tenant and the
Manager is actively monitoring the tenant’s performance under this plan.
The Manager believes that no additional allowance is necessary in respect of the remaining trade receivables
during the financial year as these receivables are mainly due from tenants that have good payment records and
sufficient security in the form of the 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 reviews the age and
status of receivables and identifies accounts that are to be provided for allowance on a continuous basis.
The Group and the Trust’s exposure to credit risk related to trade and other receivables is disclosed in Note 25.
CAMBRIDGE INDUSTRIAL TRUST | ANNUAL REPORT 2014
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