Trade and Other Receivables

In thousands of Kazakhstani Tenge 31 December
2012		 31 December
2011
     
Trade and other receivables from dealers and distributors 7,406,783 5,324,152
Trade receivables from subscribers 2,396,607 1,989,370
Trade receivables for interconnect services 1,884,047 1,789,144
Trade receivables from roaming operators 558,486 540,696
Less: provision for impairment of trade receivables (976,315) (669,224)
Total financial assets 11,269,608 8,974,138
Advances to suppliers 1,067,051 3,380,910
VAT recoverable (net) 867,166 278,895
Prepaid other taxes 514,644 1,023,630
Deferred expenses 162,068 356,410
Other receivables 483,509 18,438
Total trade and other receivables 14,364,046 14,032,421

The Group classifies its accounts receivable into four classes: trade and other receivables from dealers and distributors, trade receivables from subscribers, trade receivables from roaming operators and trade receivables for interconnect services.

Trade and other receivables are denominated in currencies as follows:

In thousands of Kazakhstani Tenge 31 December 2012 31 December
2011
Tenge 10,711,122 8,433,442
US dollar 558,486 540,696
Total financial assets 11,269,608 8,974,138

Provision for impairment of trade receivables relates to trade receivables from subscribers and distributors. The ageing analysis of trade receivables is as follows:

In thousands of Kazakhstani Tenge   31 December
2012		 31 December
2011
Total neither past due nor impaired   10,110,622 8,374,523
Past due but not impaired      
due for 1 month   269,526 224,326
due for 2 months   134,853 127,137
due for 3 months   184,394 100,439
due for 4 to 6 months   148,045 73,172
due for more than 6 months   422,168 74,541
Total past due but not impaired   1,158,986 599,615
Impaired      
30 to 60 days   6,440 6,692
60 to 90 days   15,133 11,160
90 to 120 days   21,254 6,483
120 to 150 days   16,719 12,913
150 to 200 days   32,698 14,849
over 200 days   884,071 617,127
Total impaired   976,315 669,224
Provision for impairment of trade receivables   (976,315) (669,224)
Total financial assets   11,269,608 8,974,138

The main factors which the Group takes into account when considering the issue on impairment of receivables are their past due status and collectability.  As a result, the Group presented the above aging analysis of receivables. Impairment of receivables was assessed based on past due status of such receivables.

Neither past due nor impaired receivables represent receivables from companies and subscribers with no credit ratings assigned but their reliability is determined by the Company on the basis of long-term cooperation representing those companies which have a good credit history.  The Company’s management believes that neither past due nor impaired receivables in the amount of Tenge 10,110,622 thousand will be fully repaid in 2013.

Reconciliation of movements in the financial assets impairment provisions:

In thousands of Kazakhstani Tenge  
At 31 December 2010 752,338
Charge for the year 268,785
Receivables written off during the year as uncollectible (351,899)
At 31 December 2011 669,224
Charge for the year 440,768
Receivables written off during the year as uncollectible (133,677)
At 31 December 2012 976,315