Notes to the Group annual financial statements

for the period ended 3 March 2013
    Group
    2013   2012  
    Rm   Rm  
18.   Trade and other receivables      
  Trade and other receivables   2 606.9   2 282.0  
  Allowance for impairment losses   (246.0)  (161.4) 
  Total trade and other receivables, net of allowance for impairment losses   2 360.9   2 120.6  
  The ageing of trade and other receivables at end of period was:      
  Trade and other receivables not impaired      
  Within payment terms   1 888.6   1 728.2  
  Exceeding payment terms by less than 14 days   112.0   78.6  
  Exceeding payment terms by more than 14 days   48.9   45.2  
    2 049.5   1 852.0  
  Trade and other receivables with impairments      
  Within payment terms   241.3   217.4  
  Exceeding payment terms by less than 14 days   27.5   21.1  
  Exceeding payment terms by more than 14 days   288.6   191.5  
    557.4   430.0  
  The movement in the allowance for impairment of trade and other receivables during the period was as follows:      
  Balance at beginning of period   161.4   183.2  
  Irrecoverable debts written off   (26.6)  (76.1) 
  Additional impairment losses recognised   111.2   68.5  
  Prior allowances for impairment reversed   —   (14.2) 
  At end of period   246.0   161.4  
  The fair value of trade and other receivables is estimated as the present value of future cash inflows discounted at a market-related interest rate.  
  The Group makes allowance for specific trade debtors which have clearly indicated financial difficulty and the likelihood of repayment has become impaired. More than 80% (2012: 80%) of the balance relates to customers that have an excellent credit history with the Group.  
  Impairment losses are recorded in the allowance account until the Group is satisfied that no recovery of the amount owing is possible, at which point the amount is considered irrecoverable and is written off against the financial asset directly.