CSL Ltd Annual Report 2020

CSL Limited Annual Report 2020 127 Contract assets and deferred revenue (contract liabilities): The completion of performance obligations often differs from contract payment schedules. A contact asset is initially recognised for revenue earned from satisfying a performance obligation (AASB 15); however, the receipt of consideration is conditional upon the full satisfaction of the performance obligation within the contract. Upon completing the full performance obligation, the amount recognised as contract assets is reclassified to trade receivables. Amounts billed in accordance with customer contracts, but where the Group had not yet provided a good or service, are recorded and presented as part of deferred revenue. Deferred revenue is recognised as revenue when the Group performs under the contract Other current receivables are recognised and carried at the nominal amount due upon an unconditional right to payment. Non-current receivables are recognised and carried at amortised cost. They are non-interest bearing and have various repayment terms. As at 30 June 2020, the Group had made provision for expected credit loss of $25.3m (2019: $17.5m). 2020 US$m 2019 US$m Opening balance at 1 July 17.5 21.5 Additional allowance/(utilised/written back) 7.8 (3.5) Currency translation differences (0.0) (0.5) Closing balance at 30 June 25.3 17.5 Non-trade receivables do not include any impaired or overdue amounts and it is expected they will be received when due. The Group does not hold any collateral in respect to other receivable balances. Key Judgements and Estimates In applying the Group’s accounting policy to trade and other receivables with governments and related entities in South Eastern Europe as set out in Note 11, significant judgement is involved in assessing the expected credit loss of trade or other receivable amounts. Matters considered include recent trading experience, current economic and political conditions and the likelihood of continuing support from agencies such as the European Central Bank. (b) Trade and other payables 2020 US$m 2019 US$m Current Trade payables 458.3 422.6 Accruals and other payables 1,067.1 951.5 Share-based payments (EDIP) – 33.6 Carrying amount of current trade and other payables 1,525.4 1,407.7 Non-current Accruals and other payables 223.8 86.5 Carrying amount of non-current other payables 223.8 86.5 Trade and other payables represent amounts reflected at notional amounts owed to suppliers for goods and services provided to the Group prior to the end of the financial year that are unpaid. Trade and other payables are non-interest bearing and have various repayment terms but are usually paid within 30 to 60 days of recognition. Receivables and payables include the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, taxation authorities is included in other receivables or payables in the balance sheet.