Year ended 31 July 2006
17. Trade and other receivables
| Current | 2006
£m |
2005
£m |
|---|---|---|
| Trade receivables | 2,309 | 1,964 |
| Less: provision for impairment | (41) | (32) |
| Net trade receivables | 2,268 | 1,932 |
| Other receivables | 107 | 131 |
| Prepayments and accrued income | 275 | 135 |
| 2,650 | 2,198 |
| Non-current | ||
|---|---|---|
| Other receivables | 36 | 37 |
£5 million has been charged to operating profit in respect of impairment losses recognised in the year on receivables (2005: credit of £14 million). Other receivables classified as non-current include an amount of £31 million (2005: £32 million) which has been discounted at a rate of 5.2% (2005: 4.5%) due to the long-term nature of the receivable. The fair value of the remaining balances in trade and other receivables approximates to book value.
Concentration of credit risk in trade receivables is limited as the Group’s customer base is large and unrelated. Accordingly, management consider that there is no further credit risk provision required above the current provision for impairment.
