RWS Annual Report 2022 web - Flipbook - Page 132
Notes to the Consolidated Financial Statements (continued)
15. TRADE AND OTHER RECEIVABLES
Accounting policy
Trade and other receivables are carried at amortised cost less expected credit losses. They are included in current
assets, except for maturities greater than 12 months after the balance sheet date. These are classified as non current
assets. Trade receivables are non-interest bearing and generally on terms ranging from 30 to 120 days. Due to their
short maturities, the carrying amount of trade and other receivables approximates to their fair value.
The Group has no significant concentration of credit risk, with exposure spread over a large number of customers and
geographies.
Accrued income relates to the Group’s rights to consideration for work performed but not billed at the reporting date
for language and professional services. Accrued income balances are transferred to trade receivables when there is an
unconditional right to consideration, generally, when an invoice is issued to the customer.
Both trade receivables and accrued income amounts are initially stated at fair value and subsequently at amortised
cost using the effective interest method less an estimate made for expected credit losses. The Group applies the
IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all
trade receivables and contract assets. In order to estimate the expected credit losses, the Group reviews outstanding
amounts at year end based on historical rates of default adjusted for forward looking information where material.
Other receivables represent security deposits held in respect of office leases and recoverable taxes.
2022
Gross
2022
Provisions
2022
Net
2021
Gross
2021
Provisions
2021
Net
Trade receivables
151.2
(2.3)
148.9
136.3
(2.6)
133.7
Other receivables
7.3
-
7.3
9.4
-
9.4
13.1
-
13.1
13.8
-
13.8
Prepayments
Accrued income
At 30 September
51.7
(0.5)
51.2
35.6
(0.7)
34.9
223.3
(2.8)
220.5
195.1
(3.3)
191.8
Trade receivables net of allowances are held in the following currencies at the
reporting date:
2022
£m
Sterling
18.9
9.8
Euros
24.0
30.3
3.0
2.9
88.7
81.6
Japanese Yen
US Dollars
Swiss Francs
Other
The following table provides information about the exposure to
credit risk for trade receivables at 30 September 2022:
Not past due
Gross
amount
£m
1.3
0.9
13.0
8.2
148.9
133.7
Loss
allowance
£m
Net amount
£m
114.8
-
114.8
Past due 1-30 days
19.3
-
19.3
Past due 31-60 days
7.8
-
7.8
Past due 61-90 days
3.6
-
3.6
Past due > 90 days
132
2021
£m
RWS — Annual Report 2022
NOTES TO THE CONSOLIDATED STATEMENTS
5.7
(2.3)
3.4
151.2
(2.3)
148.9
