Page 129 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
123
Notes to the Financial Statements
(Expressed in Renminbi unless otherwise indicated)
25 Accounts Receivable (Continued)
(b) Impairment of accounts receivable
Impairment loss in respect of accounts receivable are recorded using an allowance account unless the Group is
satisfied that recovery of the amount is remote, in which case the impairment loss is written off against accounts
receivable directly.
The following table summarizes the changes in impairment loss of doubtful accounts:
The Group
2012 2011
RMB million RMB million
Balance as at 1 January 4,400 4,851
Impairment loss recognized 4,576 3,683
Accounts receivable written off (3,702) (4,133)
Exchange differences – (1)
Balance as at 31 December 5,274 4,400
(c) Accounts receivable that are not impaired
Accounts receivable that are neither individually nor collectively considered to be impaired are as follows:
The Group
As at
31 December
2012
As at
31 December
2011
RMB million RMB million
Neither past due nor impaired 11,100 8,672
Less than 1 month past due 622 493
11,722 9,165
Receivables that were neither past due nor impaired relate to a wide range of customers for which there was no
recent history of default.
Receivables that were past due but not impaired relate to a number of independent customers that have a good
track record with the Group. Based on past experience, management believes that no impairment allowance is
necessary in respect of these balances as there has not been a significant change in credit quality and the
balances are still considered fully recoverable. The Group does not hold any collateral over these balances.