14. Accounts receivable and prepayments
|
31 December 2013 |
31 December 2012 |
|
|---|---|---|
|
Trade accounts receivable |
760.5 |
630.4 |
|
Other financial receivables |
47.3 |
87.5 |
|
Less impairment provision |
(74.6) |
(107.8) |
|
Total financial receivables |
733.2 |
610.1 |
|
Prepayments to suppliers |
332.0 |
365.1 |
|
VAT and other taxes recoverable |
320.8 |
276.3 |
|
Prepayments for aircraft |
250.5 |
233.7 |
|
Deferred customs duties related to the imported aircraft under operating leases, current portion |
28.6 |
36.7 |
|
Other receivables |
36.5 |
31.5 |
|
Accounts receivable and prepayments |
1,701.6 |
1,553.4 |
Accounts receivable and prepayments include prepayments for acquisition of aircraft to be delivered within 12 months after the reporting date. Movements on the Prepayment for Aircraft line item are due to the approaching aircraft delivery dates as well as the refund of prepayments related to the delivery of aircraft in the current period.
Deferred customs duties of USD 28.6 million as of 31 December 2013 (31 December 2012: USD 36.7 million) relate to the current portion of customs duties related to imported aircraft under operating leases. These customs duties are recognised within operating costs in the Group’s consolidated statement of profit or loss over the term of the operating lease. The non-current portion of the deferred customs duties is disclosed in Note 19.
Financial receivables are analysed by currencies in Note 37. VAT and other taxes recoverable as well as deferred customs duties related to the imported aircraft under operating leases are denominated in roubles. Prepayments to suppliers are mainly denominated in roubles. Prepayments for aircraft are denominated in US Dollars and Euro.
As at 31 December 2013 and 31 December 2012, sufficient impairment provision was made against accounts receivable and prepayments.
The movements in the Group’s impairment provision for accounts receivable and prepayments are as follows:
|
Impairment provision |
|
|---|---|
|
1 January 2012 |
89.8 |
|
Increase in impairment provision during the year |
54.7 |
|
Provision use (Note 9) |
(12.3) |
|
Release of provision |
(30.0) |
|
Translation from the functional currency to the presentation currency |
5.6 |
|
31 December 2012 |
107.8 |
|
Increase in impairment provision during the year |
34.5 |
|
Provision use (Note 9) |
(18.1) |
|
Release of provision |
(42.6) |
|
Translation from the functional currency to the presentation currency |
(7.0) |
|
31 December 2013 |
74.6 |
Financial receivables are analysed by credit quality in Note 37.
Notes in Consolidated Statements:
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
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