Lendlease Annual Report 2024

Financial Statements 135 June 2024 June 2023 20.c. Investment Properties $m $m At balance date, capital commitments existing in respect of the purchase, construction or development of investment properties, contracted but not provided for in the financial statements, are as follows: Due within one year 80 108 Due between one and five years 81 108 Due later than five years - - Total 161 216 21. Loans and Receivables Accounting Policies Loans and receivables, which include trade and other receivables, are non derivative financial assets with fixed or determinable payments that are not equity securities. They arise when the Group provides money, goods or services directly to a debtor with no intention of trading the receivable. Contract debtors represent receivables where the right to receive payment from customers remains conditional. Other receivables include receivables related to investment management, property development and miscellaneous items. Loans and receivables are carried at amortised cost using the effective interest method, which applies the interest rate that discounts estimated future cash receipts over the term of the loans and receivables. Cash flows relating to short term trade and other receivables are not discounted if the effect of discounting is immaterial. The discount, if material, is then recognised as revenue over the remaining term. The Group assesses provision for impairment of loans and receivables based on expected loss, and books a provision if material. The Group considers reasonable and supportable information that is relevant and available. This includes both quantitative and qualitative information and analysis, based on the Group’s historical impairment experience, credit assessment of customers and any relevant forward looking information. The amount of the provision is recognised in the Income Statement. Retentions receivable on construction contracts represent deposits held by the Group until the satisfaction of conditions specified in the contract are met. June 2024 June 2023 Note $m $m Current Trade receivables 561 651 Less: Impairment (34) (29) 527 622 Related parties 444 339 Retentions 293 282 Contract debtors 21.a 250 250 Accrued income 21.a 105 114 Other receivables 603 692 Total Current 2,222 2,299 Non Current Trade receivables - 2 Related parties 301 485 Less: Impairment 1 (66) (10) 235 477 Retentions 50 70 Other receivables 163 892 Total non current 448 1,439 Total loans and receivables 2,670 3,738 1. On 27 May 2024 the Group announced a strategy update with key actions to simplify the organisational structure, exit international construction and accelerate the release of capital from its offshore development project and assets. As a result of this strategy update, the recoverability of Development receivables in these regions was reassessed and an impairment charge of $59 million was recognised for the year. As at the reporting date, $428 million of the trade debtors were current (30 June 2023: $514 million) and $133 million were past due (30 June 2023: $137 million). Of the past due amount, $99 million was not impaired (30 June 2023: $108 million). ‘Past due’ is defined under accounting standards to mean any amount outstanding for one or more days after the contractual due date. Of the total trade debtors, 9.4 per cent (30 June 2023: 7.7 per cent) are aged greater than 90 days. Other than trade debtors, no other loans and receivables are considered past due at 30 June 2024 (30 June 2023: $nil).