IGO Interactive Annual Report 2018

Notes to the consolidated financial statements 30 June 2018 (continued) 7 Cash and cash equivalents (continued) (c) Recognition and measurement Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. Bank overdrafts are included within borrowings in current liabilities on the balance sheet. 8 Trade and other receivables 2018 $'000 2017 $'000 Current Trade receivables 50,858 50,047 GST Receivable 738 4,372 Sundry debtors 40,563 2,139 Prepayments 1,934 2,825 94,093 59,383 2018 $'000 2017 $'000 Non-current Other receivables 29,495 14 29,495 14 (a) Recognition and measurement (i) Trade receivables Trade receivables are generally received in the current month, or up to four months after the shipment date. The receivables are initially recognised at fair value. Trade receivables are subsequently revalued by the marking-to-market of open sales. The Group determines mark-to-market prices using forward prices at each period end for copper and zinc concentrates and nickel ore. (ii) Other receivables Other receivables include amounts outstanding on the sale of the Jaguar Operation. The discounted values (using a discount rate of 3.5%) of the outstanding cash proceeds of $15,520,000 and $29,480,000 are shown in current and non-current receivables respectively. Refer further information at Note 23(b). (iii) Impairment of trade receivables Collectibility of trade receivables is reviewed on an ongoing basis. Individual debts that are known to be uncollectible are written off when identified. An allowance is made for doubtful debts based on credit losses expected over the life of the trade receivable taking into account information about past events, current conditions and forecasts of further economic conditions. On confirmation that the trade receivable will not be collectible, the gross carrying value of the asset is written off against the associated provision. Independence Group NL 19 IGO ANNUAL REPORT 2018— 83 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2018