|
Considering that IFRS 9 does not provide an explicit guide or any specific requirements we have opted to use a provision matrix approach to calculate the ECL. This involves allocating individual trade debtors into groups that share similar credit risk characteristics.
Customer’s risk rating was determined by applying the following criteria:
- Historical data spanning three years which include payment history and behavioural trends
- Economic environment that has a significant impact to each customer
- Geographical location of the customer.
The percentage used to calculate the ECL for each risk segment was determined by:
- Past three years specific impairment provisions
- Past three years specific bad debts written off
- Past three years trade credit insurance claims ratios
- Management’s forward-looking analysis of the FMCG environment
- An unbiased approach that involves evaluating a range of possible outcomes based on current economic trends.
The company makes use of selective trade credit insurance. For those debtors that are not insured, the full carrying
value of the outstanding debt was included in the calculation of the ECL. For those debtors that are insured, only the
uninsured portion of the debt was included in the calculation of the ECL.
A process of identifying specific impairments is included in the total impairment provision. Management will raise a
specific impairment provision when all internal and or pre-legal efforts to collect overdue debt has been exhausted.
|
Performing receivables |
|
|
(R’million) |
Low
risk |
Medium
risk
Level 1 |
Medium
risk
Level 2 |
Medium
risk
Level 3 |
Defaulted
receivables |
Total |
As at 30 September 2021 |
1 833,0 |
380,8 |
376,8 |
346,3 |
27,6 |
2 964,5 |
Allowance for doubtful debts* |
– |
(16,0) |
(4,6) |
(95,6) |
(27,6) |
(143,8) |
Net amount |
1 833,0 |
364,8 |
372,2 |
250,7 |
– |
2 820,7 |
% risk mitigating factor |
– |
(4,2%) |
(1,2%) |
(27,6%) |
(100%) |
(4,9%) |
2020# |
|
|
|
|
|
|
As at 30 September 2020 |
1 812,3 |
410,0 |
391,5 |
470,0 |
19,1 |
3 102,9 |
Allowance for doubtful debts* |
– |
(3,4) |
(4,9) |
(135,8) |
(19,1) |
(163,2) |
Net amount |
1 812,3 |
406,6 |
386,6 |
334,2 |
– |
2 939,7 |
% risk mitigating factor |
– |
(0,8%) |
(1,3%) |
(28,9%) |
(100%) |
(5,3%) |
# |
Excludes allowance for doubtful debts reversal relating to sundry debtors of R19,6 million (2020: R22,8 million raised). |
* |
Restated as the group reclassified customer rebates as part of continuous improvements in terms of IFRS 15. (Refer note 21.1). |
COMPANY |
|
|
|
GROUP |
|
|
(R’million) |
|
|
|
20.3 |
Past due analysis |
|
|
|
|
|
|
As at 30 September, the ageing of trade receivables was as follows: |
|
|
|
|
|
|
Not past due* |
2 805,3 |
2 277,3 |
|
|
|
|
Past due: |
|
|
|
|
|
|
Current to 60 days |
86,1 |
508,3 |
|
|
|
|
61 to 90 days |
18,8 |
68,3 |
|
|
|
|
91 to 180 days |
40,2 |
249,0 |
|
|
|
|
> 180 days |
14,1 |
– |
|
|
|
|
Total |
2 964,5 |
3 102,9 |
|
|
|
|
As at 30 September, the ageing of all other
receivables, excluding tax receivable and
prepayments was as follows: |
|
|
2,9 |
5,2 |
|
|
Not past due |
69,6 |
25,0 |
|
|
|
|
Past due: |
|
|
– |
0,3 |
|
|
Current to 60 days |
72,5 |
127,0 |
– |
– |
|
|
61 to 90 days |
0,4 |
131,0 |
7,2 |
– |
|
|
91 to 180 days |
7,1 |
0,8 |
48,0 |
73,8 |
|
|
> 180 days |
75,2 |
34,3 |
58,1 |
79,3 |
|
|
Total |
224,8 |
318,1 |
|
|
|
20.4 |
Trade receivable analysis |
|
|
|
|
|
|
Industry spread of trade receivables: |
|
|
|
|
|
|
Retail |
1 701,3 |
1 528,5 |
|
|
|
|
Wholesale/Distributors |
692,5 |
759,8 |
|
|
|
|
Export |
476,8 |
564,4 |
|
|
|
|
Other |
93,9 |
250,2 |
|
|
|
|
Total |
2 964,5 |
3 102,9 |
|
|
|
|
Geographical spread of trade receivables: |
|
|
|
|
|
|
South Africa |
2 448,3 |
2 488,1 |
|
|
|
|
Rest of Africa |
411,7 |
465,2 |
|
|
|
|
Europe |
36,8 |
55,1 |
|
|
|
|
Rest of the World |
67,7 |
94,5 |
|
|
|
|
Total |
2 964,5 |
3 102,9 |
|
|
|
20.5 |
Collateral held |
|
|
|
|
|
|
Fair value of collateral held |
52,6 |
34,1 |
|
|
|
|
Collateral held represents hawker deposits which may be applied against accounts which are in default |
|
|
# |
Restated as the group reclassified customer rebates as part of continuous improvements in terms of IFRS 15. (Refer note 21.1). |
* |
Debtors that are neither past due nor impaired are made up of customers with high credit ratings and with a sound payment history. |
|