/ . 9 6
E U R O S P O R T S G L O B A L L I M I T E D
Notes to
the F iNaNci al statemeNts
3 1 ma r ch 2 0 1 5
23 .
F i nanc i a l i n s t r umen t s : i n f o rma t i on on F i nanc i a l r i s k s ( Con t ’ d )
23D. Credit risk on Financial assets
Financial assets that are potentially subject to concentrations of credit risk and failures by counterparties to discharge
their obligations in full or in a timely manner consist principally of cash balances with banks, cash equivalents and
receivables. The maximum exposure to credit risk is: the total of the fair value of the financial assets; the maximum
amount the entity could have to pay if the guarantee is called on; and the full amount of any payable commitments
at the end of the reporting year. Credit risk on cash balances with banks is limited because the counter-parties are
entities with acceptable credit ratings. For credit risk on receivables, an on-going credit evaluation is performed on the
financial condition of the debtors and a loss from impairment is recognised in profit or loss. The exposure to credit risk
with customers is controlled by setting limits on the exposure to individual customers and these are disseminated to
the relevant persons concerned and compliance is monitored by management. There is no significant concentration
of credit risk on receivables, as the exposure is spread over a large number of counter-parties and customers.
Note 17 discloses the maturity of the cash and cash equivalents balances.
The Group generally does not grant credit terms except for distributors of watches where an average credit term of 30
days is granted. However, the Group may grant credit terms to customers on a case by case basis, depending on the
contract value, relationship with the customer and payment track record of the customer. But some customers take
a longer period to settle the amounts.
(a)
Ageing analysis of the age of trade receivable amounts that are past due as at the end of reporting year but not
impaired:
group
2015
$’000
2014
$’000
Trade receivables:
Less than 30 days
156
802
31 to 60 days
51
169
61 to 90 days
79
–
Over 90 days
1,318
328
Total
1,604
1,299
(b)
Ageing analysis as at the end of reporting year of trade receivable amounts that are impaired:
group
2015
$’000
2014
$’000
Trade receivables:
Over 90 days
276
231
Total
276
231
Other receivables are normally with no fixed terms and therefore there is no maturity. Trade receivable amounts
that are over 365 days are fully provided as at 31 March 2015 and 31 March 2014.
