20974 29Metals AR23 WEB V1 - Flipbook - Page 162
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29Metals 2023 Annual Report
Consolidated Financial Statements continued
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29Metals Appendix 4E and Annual Financial Report for 29Metals Limited and its Controlled Entities for the year ended 31 December 2023
Consolidated Financial Statements
Assets and Liabilities
Note 13: Trade and other receivables
ƵƌƌĞŶƚ
Trade receivables – at fair value
2023
2022
$’000
$’000
Trade receivables – at amortised cost
llowance for expected credit loss
(
)
ther receivables – at amortised cost
ecurit deposits – at amortised cost
dŽƚĂůĐƵƌƌĞŶƚƚƌĂĚĞĂŶĚŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐ
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Trade receivables (sub ect to provisional pricing) are non interest bearing are exposed to future commodit price movements over the QP and hence do
not satisf the ƐŽůĞůLJƉĂLJŵĞŶƚƐŽĨƉƌŝŶĐŝƉĂůĂŶĚŝŶƚĞƌĞƐƚ (‘^WW/’) test and as a result are measured at fair value up until the date of settlement. These
trade receivables are initiall measured at the amount which the Group expects to receive being the estimate of the price expected to be received at the
end of the QP.
pproximatel
of the provisional invoice (based on the provisional price (calculated as the average price in the wee prior to deliver )) is
received in cash when the goods are loaded onto the ship or accepted b the bu er under a holding certificate which reduces the initial receivable
recognised. The QP’s can range between one and five months post shipment and final pa ment is due within da s from the end of the QP.
Recognition and measurement
Trade receivables are carried at fair value. Provisional pa ments in relation to trade receivables are due for settlement within
recognition with an mar to mar et ad ustment due for settlement usuall from
da s.
da s from the date of
ther receivables are recognised initiall at fair value and subse uentl measured at amortised cost using the effective interest method less an
allowance for expected credit loss. f collection of trade and other receivables is expected in one ear or less (or in the normal operating c cle of the
business if longer) trade and other receivables are classified as current assets. f not the are presented as non current assets.
The Group recognises an allowance for Expected Credit Loss (‘>’) for all receivables not held at fair value through profit or loss. ECLs are based on the
difference between the contractual cash flows due in accordance with the contract and all the cash flows the Group expects to receive discounted at an
approximation of the original effective interest rate (‘/Z’). or receivables due in less than months the Group does not trac changes in credit ris but
recognises a loss allowance based on the financial asset’s lifetime ECL at each reporting date. The ECL is based on its historical credit loss experience in
the past two ears and current financial difficulties of the debtor and then is ad usted for forward loo ing factors specific to the debtor and the economic
environment. s at
ecember
no amount has been provided for (
). The allowance for credit loss amount of
at
ecember
has been offset against the receivable during the ear ended
ecember
.
The Group considers a receivable in default when contractual pa ments are da s past due. owever in certain cases the Group ma also consider a
receivable to be in default when internal or external information indicates that the Group is unli el to receive the outstanding contractual amounts in
full before ta ing into account an credit enhancements held b the Group. receivable is written off when there is no reasonable expectation of
recovering the contractual cash flows and usuall occurs when the asset is past due for more than one ear and not sub ect to enforcement activit .
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