Annual report and accounts 2008

Notes contentsNotes to consolidated financial statements

22. Trade and other receivables

All figures in £ millions	2008	2007
Current
Trade receivables	1,030	750
Royalty advances	111	84
Prepayments and accrued income	62	48
Other receivables	135	59
Receivables from related parties	4	5
	1,342	946
Non-current
Royalty advances	102	68
Prepayments and accrued income	3	4
Other receivables	47	57
	152	129

Trade receivables are stated at fair value, net of provisions for bad and doubtful debts and anticipated future sales returns. The movements on the provision for bad and doubtful debts are as follows:

All figures in £ millions	2008	2007
At beginning of year	(52)	(46)
Exchange differences	(18)	(1)
Income statement movements	(27)	(19)
Utilised	27	15
Acquisition through business combination	(2)	(3)
Disposal through business disposal	—	2
At end of year	(72)	(52)

Concentrations of credit risk with respect to trade receivables are limited due to the Group’s large number of customers, who are internationally dispersed.

The ageing of the Group’s trade receivables is as follows:

All figures in £ millions	2008	2007
Within due date	1,110	819
Up to three months past due date	248	171
Three to six months past due date	60	51
Six to nine months past due date	21	12
Nine to 12 months past due date	15	19
More than 12 months past due date	20	19
Total trade receivables	1,474	1,091
Less: provision for bad and doubtful debts	(72)	(52)
Less: provision for sales returns	(372)	(281)
Transfer to non-current assets held for sale	—	(8)
Net trade receivables	1,030	750

The Group reviews its bad debt provision at least twice a year following a detailed review of receivable balances and historic payment profiles. Management believe all the remaining receivable balances are fully recoverable.