12. Trades and other accounts receivable

Trade and other accounts receivable as at 31 December 2014 and 2013 comprised of the following:

  Gross, 31 December 2014 Doubtful debt allowance Net, 31 December 2014
Amounts due from customers for operating activities 40,336 (5,114) 35,222
Amounts due from customers for non-operating activities 9,283 (2,158) 7,125
Amounts due from commissioners and agents 1,330 - 1,330
Amounts due from personnel 141 - 141
Amounts due from lessees for financial lease 666 - 666
Amounts due from other debtors 1,148 (576) 572
Total trade and other accounts receivable 52,904 (7,848) 45,056
    Gross, 31 December 2013 Doubtful debt allowance Net, 31 December 2013
Amounts due from customers for operating activities 37,304 (4,670) 32,634
Amounts due from customers for non-operating activities 6,246 (1,658) 4,588
Amounts due from commissioners and agents 1,536 - 1,536
Amounts due from personnel 191 - 191
Amounts due from lessees for financial lease 4 - 4
Amounts due from other debtors 1,331 (460) 871
Total trade and other accounts receivable 46,612 (6,788) 39,824

As at 31 December 2014, 2013 settlements with customers for operating activities included settlements with the following counterparties:

  31 December 2014 31 December  2013
Residential customers 12,434 12,201
Corporate customers 5,654 5,006
Governmental customers 12,349 12,931
Interconnected operators – domestic 7,039 5,005
Interconnected operators – international 2,860 2,161
Less: doubtful debt allowance (5,114) (4,670)
Total accounts receivable due from customers for operating activities 35,222 32,634

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

As at 31 December 2014, 2013 the share of accounts receivable that are past due but not impaired amounted to approximately nil.

The following table summarizes the changes in the allowance for doubtful accounts receivable, advances and other assets for the years ended 31 December 2014, 2013:

  2014 2013
Balance, beginning of year (7,049) (6,552)
Bad debt expense (2,182) (2,140)
Accounts receivable written-off 1,176 1,643
Balance, end of year (8,055) (7,049)

As at 31 December 2014 and 2013 amounts due from other debtors include short-term portion of finance lease receivables of 666 and 6 respectively. Long-term portion of finance lease receivables of 2,517 and 174 as at 31 December 2014 and 2013 respectively is included into non-current receivables (refer Note 10).

Increase in finance lease receivables is due to transferring to companies of the group T2 RTK Holding terrestrial optical fibre cables under finance lease in April 2014. The lease agreement is non-cancellable for the period from 5 years till 18 years, which differs in each macroregional branches. Leasing period equals approximately the remaining useful life of the optical fibres. Effective interest rate of the lease is 13% p.a. Lease payments are denominated in Roubles.

Finance income for the years ended 31 December 2014 and 2013 amounted to 320 and 46 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 at 31 December 2014 and 2013 are as follows:

  31 December 2014
  Gross investments in lease Present value of minimum lease payments
Current portion (less than 1 year) 1,046 666
More than 1 to 5 years 2,498 1,385
Over 5 years 1,724 1,132
Total 5,268 3,183
  31 December 2013
  Gross investments in lease Present value of minimum lease payments
Current portion (less than 1 year) 50 6
More than 1 to 5 years 191 27
Over 5 years 321 147
Total 562 180

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