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## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

Substantially all of the accounts receivable for the power segment are with government authorities. Refer to note 10 (b) and 10 (c) for further detail of credit risk and economic dependence. 

The utilities – water segment accounts receivable are composed of: 

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The aging of net trade receivables at Bristol Water was: 

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As at December 31, 2013, based on a review of collection rates, $25,775 of trade receivables in the utilities – water segment were considered impaired and have been provided for (December 31, 2012 – $21,907). The increase in the provision for impairment of trade receivables at Bristol Water comprised: 

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Charges for impaired receivables have been included in the consolidated statement of income as part of operating expenses. 

The other classes within trade and other receivables do not contain impaired assets. 

Bristol Water has created an IAS 39 portfolio provision, but cannot identify which receivables are specifically impaired. Bristol Water policy is to consider the receivables impairment to be allocated on a collective basis and only impaired for the purposes of IFRS 7 disclosures when the loss can be specifically identified with the receivable. 

Bristol Water is required to continue providing residential customers with water regardless of payment. 

## NOTE 7. OTHER ASSETS 

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(1) Inventory as at December 31, 2013 is net of $370 provision for obsolescence (December 31, 2012 - $383). 

The cost of inventories recognized in operating expenses for the year ended December 31, 2013 was $6,419 (December 31, 2012 – $5,929). 

