NOTES TO THE FINANCIAL STATEMENTS
13. Trade and other receivables:// CONTINUED
At 30 June, the exposure to credit risk for trade and other receivables by type of counterparty was as follows.
2017 $000
2016 $000
Not credit impaired
Credit impaired
Not credit impaired
Credit impaired
Business customers
56,099 11,179
59 96
56,398
806
Mass market customers Third party asset damages
8,936 3,153 3,099
47
2,156 7,650
2,957
2,115
Residential and other
289
293
Total gross carrying amount
77,084
3,401
71,586
3,261
Loss allowance
(186)
(2,874)
(484)
(2,583)
76,898
527
71,102
678
The following table provides information about the exposure to credit risk and expected credit losses for trade receivables as at 30 June.
2017 $000
2016 $000
Carrying amount
Loss allowance
Carrying amount
Loss allowance
Not past due
60,783
111
55,217
3
Past due 1-30 days Past due 31-120 days
6,022 3,616 7,004
42
8,441 2,558 5,564
38
284
136
Past due more than 120 days
2,623 3,060
2,890 3,067
Balance at 30 June
77,425
71,780
Policies
Receivables are initially recognised at fair value. They are subsequently adjusted for credit impairment losses. Discounting is not applied to receivables where collection is expected to occur within the next twelve months. In assessing credit losses for trade receivables, the group applies the simplified approach and records lifetime expected credit losses (“ECLs”) on trade receivables. Lifetime ECLs result from all possible default events over the expected life of a trade receivable. The group considers the probability of default upon initial recognition of the trade receivable, based on reasonable and available information on the group’s customers and groups of customers. The group’s trade receivables are monitored in two groups: business customers, and mass market residential customers. In assessing ECLs on trade receivables the group considers both quantitative and qualitative inputs. Quantitative data includes past collection rates, industry statistics, ageing of receivables, and trading outlook. Qualitative inputs include past trading history with the group. The group’s customer acceptance process includes a check on credit history, profitability, and the customer’s external credit rating if available. Different levels of sale limits are also imposed on customer accounts by nature.
Credit risk
93
Vector://AR 17
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