Net trade receivables During the year, a total expense of $3.7m (2019: $0.7m) was recognized in the Consolidated Income Statement in relation to the provision for doubtful debts and credit notes. The following table shows the aging of the Group's net trade receivables at 30 June 2020 2019 $m $m Not past due 29.7 55.0 Past due less than 30 days 7.7 23.8 Past due 30 - 60 days 3.0 5.6 Past due 61 - 90 days 2.1 3.1 Past due 91 - 120 days 3.0 0.9 Past due 120+ days 1.1 1.6 Closing balance 46.6 90.0

Why is valuation of trade receivable is a key audit matter?

1. Why the matter is significant. Your response should provide a narrative explanation as well as refer to account balances, relevant notes to the account and applicable accounting standards. and

2. How the matter could be addressed in the audit. Your response should include reference to relevant preventative and/or detective internal controls, specific audit tests that could be undertaken, the nature of these test (i.e. tests of control, analytical review and tests of detail) and applicable Auditing Standards.