13. Trades and other accounts receivable

Trade and other accounts receivable as at December 31, 2011 and 2010, 2009 comprised of the following:


  Gross,
December 31,
2011
Doubtful
debt
allowance
Net,
December 31,
2011
Amounts due from customers for operating activities 28,311 (4,148) 24,163
Amounts due from customers for non-operating activities 2,572 (651) 1,921
Amounts due from commissioners and agents 1,624 - 1 ,624
Amounts due from personnel 89 - 89
Amounts due from other debtors 1,766 (186) 1,580
Total trade and other accounts receivable 34,362 (4,985) 29,377

  Gross,
December 31,
2010
Doubtful
debt
allowance
Net,
December 31,
2010
Amounts due from customers for operating activities 26,941 (4,470) 22,471
Amounts due from customers for non-operating activities 2,047 (852) 1,195
Amounts due from commissioners and agents 1,122 - 1,122
Amounts due from personnel 153 - 153
Amounts due from other debtors 1,085 (415) 670
Total trade and other accounts receivable 31,348 (5,737) 25,611

  Gross,
December 31,
2009
Doubtful
debt
allowance
Net,
December 31,
2009
Amounts due from customers for operating activities 23,359 (4,969) 18,390
Amounts due from customers for non-operating activities 2,119 (612) 1,507
Amounts due from commissioners and agents 1,157 - 1,157
Amounts due from personnel 79 - 79
Amounts due from other debtors 1,325 (215) 1,110
Total trade and other accounts receivable 28,039 (5,796) 22,243

As at December 31, 2011, 2010 and 2009 settlements with customers for operating activities included settlements with the following counterparties:


  December 31, 2011 December 31, 2010 December 31, 2009
Residential customers 12,734 11,524 11,301
Corporate customers 4,969 4,193 3,432
Governmental customers 5,374 5,635 3,020
Interconnected operators - domestic 3,814 4,272 4,529
Interconnected operators - international 1,420 1,314 1,029
Social security bodies 0 3 48
Less: doubtful debt allowance (4,148) (4,470) (4,969)
Total accounts receivable due from customers for operating activities 24, 163 22,471 18,390

Based on historic default rates, management believes that trade and other receivables are adequately provided.

As at December 31, 2011, 2010 and 2009 the share of accounts receivable that are past due but not impaired amounted to approximately nil, 4% and 6% of the Group’s total accounts receivable, respectively.

The following table summarizes the changes in the allowance for doubtful accounts receivable for the years ended December 31, 2011, 2010 and 2009:


  2011 2010 2009
Balance, beginning of year (5,880) (6,064) (5,645)
Bad debt expense (627) (682) (1,068)
Acquisition through business combinations (299) (137) (8)
Accounts receivable written-off 1,588 1,003 657
Balance, end of year (5,218) (5,880) (6,064)

As at December 31, 2011, 2010 and 2009 amounts due from other debtors include finance lease receivables of 241, 151 and nil, respectively.

The Group entered into two finance lease agreements for use the terrestrial optical fiber cables with OJSC FSK EES. The periods of leases approximate the remaining useful life of the optical fibers. Effective interest rates of the leases are in range of 27-28 % p.a. In 2011 the Group entered into finance lease agreement for use of telecommunication equipment with CJSC Astarta. The period of lease 3 years, effective interest rate is in range of 36 % p.a.

Finance income for the years ended December 31, 2011, 2010 amounted to 61 and 81, respectively, and are included in other investing and financial gain in these consolidated statements of comprehensive income.

Future minimum lease payments together with the present value of the net minimum lease payments as of December 31, 2011 and 2010 are as follows:


  December 31, 2011 December 31, 2010
  Gross
investments
in lease
Present value
of minimum
lease payments
Gross
investments
in lease
Present value of
minimum lease
payments
Current portion (less than 1 year) 86 25 39 2
More than 1 to 5 years 236 54 156 12
Over 5 years 415 162 336 137
Total 737 241 531 151

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