(1) This procedure supports the Finance Management Policy and describes how to identify bad debts and expected credit losses for trade receivables and explains how these items are treated in the accounts of Charles Sturt University (the University). (2) See the Finance Management Policy. (3) In relation to trade receivables, the accounting treatments for estimated credit losses and bad debts will comply with the requirements of Australian Accounting Standard AASB9 Financial Instruments or its most recent successor. (4) A debtor is a person or organisation that owes money to the University or one of its controlled entities. Amounts owed by a debtor that are known to be uncollectable must be written-off. (5) A debt will be recommended for write-off where: (6) A debt must only be written off if a write-off recommendation is approved by the delegated authority. (7) The University will maintain full and accurate records of all recovery actions and communications with debtors of outstanding invoices. The University may use a debt collection agency to recover outstanding payments from debtors. (8) Debts will be written-off and reported in accordance with Delegation Schedule C - Finance and reported to the Finance Committee and the University's auditors as appropriate. (9) A provision for impairment of trade receivables is reviewed and adjusted each reporting period to reflect the change in the risk of a default occurring over the expected life of the debt in accordance with AASB 9.5.5 (Financial Instruments - Impairment). (10) The assessment of expected credit losses is made using a range of factors including both past due information and forward looking information where such information is obtainable without undue cost or effort. (11) The assessment of debtors for expected credit losses occurs within the following parameters: (12) Nil. (13) Nil.Finance Procedure - Expected Credit Losses and Bad Debts
Section 1 - Purpose
Section 2 - Policy
Section 3 - Procedures
General
Bad debts
Estimated credit losses on trade receivables
Top of PageSection 4 - Guidelines
Section 5 - Glossary
Section 6 - Document Context
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Compliance drivers
N/A
Review requirements
As per the Policy Framework Policy.
Document class
Management