67
Straco Corporation Limited • Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
10
Trade and other receivables (cont’d)
Based on historical default rates, the Group and Company believe that no impairment allowance is necessary in respect of trade and other receivables,
other than those already provided for. These receivables are mainly due from customers that have a good payment record with the Group.
The main components of the impairment allowances are a specific loss component of $214,619 (2013: $210,452).
Source of estimation uncertainty
The Group maintains allowance for doubtful receivables at a level considered adequate to provide for potential uncollectible receivables. The level of
this allowance is evaluated by the Group on the basis of factors that affect the collectibility of the accounts. These factors include, but are not limited
to, the length of the Group’s relationship with receivables, their payment behaviour and known market factors. The Group reviews the age and status
of receivables and identifies accounts which require allowance to be made on a continuous basis. The amount and timing of recorded expenses for any
period would differ if the Group made different judgement or utilised different estimates. An increase in the Group’s allowance for doubtful accounts
would increase the Group’s recorded operating expenses and decrease trade and other receivables.
11
Cash and cash equivalents
Group
Company
2014
2013
2014
2013
$
$
$
$
Cash at bank and in hand
14,344,316
7,010,448
3,770,236
728,633
Fixed deposits
98,121,035
101,044,612
–
17,509,647
Cash and cash equivalents in the statements of financial position
112,465,351
108,055,060
3,770,236
18,238,280
Deposits pledged
(18,048,480)
–
–
–
Cash and cash equivalents in the statements of cash flows
94,416,871
108,055,060
3,770,236
18,238,280
The weighted average effective interest rates per annum relating to fixed deposits of the Group and the Company are 3.3485 % (2013: 3.3978%) and
0.7531% (2013: 0.2091%), respectively. Interest rates reprice at intervals of between one to 24 months.
Deposits pledged represent bank balances of certain subsidiaries pledged as security to obtain credit facilities (see note 15).
