Notes to the group financial statements l Note 4.2

4.2 Trade and other receivables
 

Trade receivables are amounts due from customers for merchandise sold or services rendered in the ordinary course of business and are accounted for as loans and receivables in accordance with the accounting policy disclosed in note 7.1.

Prepayments and other receivables are stated at their nominal values.

As the functional currencies of MTN South Sudan Limited and MTN Syria (JSC) are currencies of hyperinflationary economies, prepayments relating to these subsidiaries are restated by applying the change in the general price indices from the date of payment to the current reporting date.
 
   2017
Rm  		       2016
Rm 		   
Trade receivables (note 7.1.4) 19 402        19 828    
Less: Allowance for impairment of trade receivables (note 7.1.4) (2 753)       (2 538)   
Net trade receivables  16 649        17 290    
Loan to Irancell Telecommunication Company Services (PJSC)1  2 071        1 954    
Receivable from Irancell Telecommunication Company Services (PJSC)2  3 355        9 930    
Prepayments and other receivables3  3 085        4 188    
Sundry debtors and advances4  4 862        4 001    
   30 022        37 363    
1 This balance relates to a loan receivable from Irancell and attracts interest at 12% per annum. The loan was due in a bullet payment on 30 September 2017 but remains outstanding at year-end, and engagements on repatriation are ongoing with the Organisation for Investment, Economic and Technical Assistance of Iran (OIETAI) and the Central Bank of Iran (CBI).
2 With effect from 25 August 2015, MTN Mauritius and Irancell agreed for the unpaid dividends to bear interest at 8% per annum. R6 509 million of the outstanding balance was received during the current financial year.
3 Prepayments and other receivables include prepayments for base transceiver station (BTS) sites and other property leases.
4 Sundry debtors and advances include advances to suppliers.

An impairment loss of R836 million (2016: R459 million) was incurred in the current year. This amount is included in other operating expenses in profit or loss (note 2.4).

Scancom Limited (MTN Ghana) has secured facilities through the pledge of its trade and other receivables amounting to R1 055 million (2016: R1 047 million) (note 6.1).

The group does not hold any collateral for trade and other receivables.

The group’s exposure to credit and currency risk relating to trade and other receivables is disclosed in note 7.1.

Notes to the group financial statements l Note 4.2