16. Trade and other payables
2020 | 2019 | |
|---|---|---|
Current | ||
Trade payables and accrued expenses | 708 | 951 |
Accrued distribution costs | 404 | 400 |
Green commodity scheme obligations | 211 | 189 |
Other | 28 | 16 |
Total trade and other payables | 1,351 | 1,556 |
Trade payables are unsecured and are generally settled within 32 days from end of month of the date of recognition.
ACCOUNTING POLICY
Trade and other payables
Trade and other payables represent liabilities for goods and services provided to AGL prior to the end of the reporting period that are unpaid and arise when AGL becomes obliged to make future payments in respect of the purchase of these goods and services.
Green commodity scheme obligations
Green commodity scheme obligations represent liabilities to satisfy surrender obligations under the various renewable energy and energy efficiency schemes administered by the Commonwealth and State governments. Given the schemes are surrendered on a calendar year basis, the liability is calculated based on the best estimated unit cost at the time of expected surrender.
CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS
Accrued distribution costs
AGL recognises distribution costs once the gas and electricity has been delivered to the customer and is measured through a regular review of usage meters. Management estimates customer consumption between the last invoice date and the end of the reporting period when determining distribution costs for the financial period. Various assumptions and financial models are used to determine the estimated unbilled consumption.