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19. Trade and other receivables
| All figures in £ millions | 2007 | 2006 |
|---|---|---|
| Current | ||
| Trade receivables | 750 | 768 |
| Royalty advances | 84 | 91 |
| Prepayments and accrued income | 48 | 34 |
| Other receivables | 59 | 58 |
| Receivables from related parties | 5 | 2 |
| 946 | 953 | |
| Non-current | ||
| Royalty advances | 68 | 80 |
| Prepayments and accrued income | 4 | 4 |
| Other receivables | 57 | 40 |
| 129 | 124 |
Trade receivables are stated at fair value, net of provisions for bad and doubtful debts and anticipated future sales returns. The movements on the provision for bad and doubtful debts are as follows:
| All figures in £ millions | 2007 | 2006 |
|---|---|---|
| At beginning of year | (46) | (45) |
| Exchange differences | (1) | 3 |
| Income statement movements | (19) | (23) |
| Utilised | 15 | 21 |
| Acquisition through business combination | (3) | (2) |
| Disposal through business disposal | 2 | – |
| At end of year | (52) | (46) |
Concentrations of credit risk with respect to trade receivables are limited due to the Group’s large number of customers, who are internationally dispersed.
The ageing of the Group’s trade receivables is as follows:
| All figures in £ millions | 2007 | 2006 |
|---|---|---|
| Within due date | 811 | 810 |
| Up to three months past due date | 161 | 177 |
| Three to six months past due date | 43 | 62 |
| Six to nine months past due date | 7 | 6 |
| Nine to 12 months past due date | 13 | 8 |
| More that 12 months past due date | 4 | 1 |
| Total trade receivables | 1,039 | 1,064 |
| Less: provision for sales returns | (281) | (243) |
| Transfer to non-current assets held for sale | (8) | (53) |
| Net trade receivables | 750 | 768 |
The Group’s provision for bad and doubtful debts is specific to individual debts identified during the bad debt review process. Consequently the ageing analysis above is presented after deducting the associated specific bad debt provision. The Group reviews its bad debt provision at least twice a year following a detailed review of receivable balances and historic payment profiles. Management believe all the remaining receivable balances are fully recoverable.