ar11-lr-final

Notes to and forming part of the Financial Statements – continued
For the 52 WEEK period ended 31 July 2011
18. Cash and Cash Equivalents
GROUP GROUP PARENT PARENT
2011 2010 2011 2010
$000 $000 $000 $000
Cash on hand and at bank 16,916 16,786 2,526 2,530
Deposits at call – interest rate: 2.50% (2010: 3.15%) 6,100 84,440 – –
23,016 101,226 2,526 2,530
Cash on hand and at bank includes EFTPOS (electronic funds transfer point of sale) transactions which have not been cleared by
the bank. The Group’s balance date is always a Sunday which means the three previous day’s store sales, which have been paid by
EFTPOS, remain uncleared at balance date.
19. Inventories
GROUP 2011 2010
$000 $000
Finished goods 243,395 231,143
Inventory adjustments (9,725) (9,453)
Retail stock 233,670 221,690
Goods in transit from overseas 28,993 32,916
262,663 254,606
Inventory adjustments for stock obsolescence are provided at balance date and the movement in the adjustments recognised within
cost of sales in the Income Statement.
Goods in transit from overseas
Goods in transit from overseas are recognised when title to the goods is passed to the Group. Title to the goods is passed when
valid documents (which usually include a ‘bill of lading’) are received, and terms, as set out in a supplier’s letter of credit or in the
supplier’s terms of trade, are met.
The parent has no inventories.
20. Trade and Other Payables
GROUP 2011 2010
$000 $000
Trade creditors 98,053 89,173
Goods in transit creditors 12,130 12,918
Unearned income (includes laybys, gift vouchers and Christmas club deposits) 8,457 7,743
Interest accruals 1,349 1,539
Payroll accruals 8,924 8,683
128,913 120,056
Trade payables are normally unsecured and non-interest bearing and are usually settled within 60 days of recognition. Due to the
short term nature of these payables, their carrying value is assumed to approximate their fair value. With the exception of an accrual
for $0.949 million (2010: $0.949 million) relating to interest payable on the fixed rate senior bond the parent has no other payables.
Notes to and forming part of the Financial Statements – continued
For the 52 WEEK period ended 31 July 2011
21. Trade and Other RECEIVABLES
GROUP 2011 2010
$000 $000
Trade receivables 14,336 11,056
Allowance for impairment (681) (742)
13,655 10,314
Other debtors and prepayments 10,160 6,069
Employee share purchase plan loans 1,976 2,637
25,791 19,020
Less: Non-current employee share purchase plan loans (1,413) (2,091)
Current trade and other receivables 24,378 16,929
Other debtors includes an insurance receivable of $3.302 million (2010: $Nil) for insured losses sustained in the Canterbury
earthquakes (refer note 12).
(a) Trade receivables
Trade receivables arise from sales made to customers on credit or through the collection of rebates from suppliers not otherwise
deducted from suppliers’ payable accounts. Trade receivables are non-interest bearing and are generally on 30 to 60 day terms.
Due to the short term nature of trade and other receivables, their carrying value is assumed to approximate their fair value.
Collateral is not held as security, nor is it the Group’s practice to transfer (on-sell) receivables to special purpose entities.
An ageing analysis of trade receivables at balance date is set out below:
GROUP
0 TO 30
31 TO 60
61 TO 90
> 90
Total
DAYS
DAYS
DAYS
DAYS
$000 $000 $000 $000 $000
As at 31 July 2011
Trade receivables 14,336 10,457 2,278 643 958
Allowance for impairment (681) (11) (7) (95) (568)
13,655 10,446 2,271 548 390
As at 1 August 2010
Trade receivables 11,056 8,198 1,680 613 565
Allowance for impairment (742) (32) (70) (152) (488)
10,314 8,166 1,610 461 77
Trade receivables greater than 60 days are considered to be past their due date. Collectability of trade receivables is reviewed on an
ongoing basis at an operating unit level. Individual debts that are known to be uncollectable are written off when they are identified.
An impairment provision is recognised when there is objective evidence that the Group will not be able to collect the receivable.
Financial difficulties of the debtor or debts more than 60 days overdue are considered objective evidence of possible impairment.
The amount of the provision represents the difference between the asset’s carrying amount and the estimated recoverable amount.
Movements in the provision for impairment loss were as follows:
GROUP 2011 2010
$000 $000
Opening balance 742 888
Charge to the income statement 260 243
Trade receivables written off (321) (389)
Closing balance 681 742
FINANCIAL STATEMENTS 56
FINANCIAL STATEMENTS 57