16 Trade and other receivables
Trade and other receivables have been analysed between non-current and current as follows:
Trade receivables do not carry interest and are stated net of allowances for doubtful receivables, an analysis of which is as follows:
At each reporting date, the company and each of its subsidiaries evaluate the recoverability of trade receivables and record provisions for doubtful receivables based upon experience.
Ageing of gross receivables
The following table provides information regarding the ageing of gross receivables:
The above analysis in respect of gross trade receivables reconciles to net trade receivables by deduction of the allowance for doubtful receivables of £206.6 million (2009: £192.8 million, 2008: £171.7 million).
The group manages its regulated bad debt risk by providing against gross trade receivables. This allowance is calculated by reference to customer categories rather than on the age profile of gross debtor balances. It is therefore not possible to age the allowance for doubtful receivables.
Amounts owed by subsidiary undertakings are a sum of all subsidiary balances where the total of debt and interest is in a net receivable position. Amounts owed by subsidiary undertakings are shown net of an allowance for doubtful receivables of £nil (2009: £nil).
Trade and other receivables is split as follows:
The directors consider that the carrying amount of trade and other receivables approximates to their fair value at 31 March 2010, 31 March 2009 and 31 March 2008.
The group’s average credit period taken on sales is 33 days (2009: 31 days, 2008: 33 days).