67 / 135
HALF-YEAR REPORT 2016
Notes to the Consolidated Financial Statements
For the six months ended 30 June 2016
/ 65
18 Trade and other receivables
(continued)
(a) Trade and bills receivables
(i) Ageing analysis
As at the balance sheet date, the ageing analysis of trade and bills receivables of the Group
based on invoice date and net of allowance for impairment losses is as follows:
30 June
2016
31 December
2015
HK$ million
HK$ million
Within 1 year
25,196
23,522
Over 1 year
4,957
4,947
30,153
28,469
Less: allowance for impairment losses
(1,190)
(1,136)
28,963
27,333
Each business unit has its own defined credit policy that is specific to the respective business
environment and market practice.
(ii) Impairment of trade and bills receivables
As at 30 June 2016, the Group’s trade and bills receivables of HK$549 million (31 December 2015:
HK$411 million) were individually determined to be impaired. These receivables mainly relate to
customers which were in financial difficulties. It is assessed that a portion of such receivables is
expected to be recovered. Consequently, specific allowance for impairment losses is recognised.
(iii) Trade and bills receivables that are not impaired
The ageing analysis of past due trade and bills receivables that are neither individually nor
collectively considered to be impaired is as follows:
30 June
2016
31 December
2015
HK$ million
HK$ million
Less than 1 year past due
1,097
1,365
Over 1 year past due
259
407
1,356
1,772
Receivables that are past due but not impaired are related to a number of third-party customers
that have a good track record with the Group. Based on past experience, management believes
that no impairment allowance is necessary in respect of these balances as there has not been a
significant change in credit quality and the balances are still considered to be fully recoverable.