11. 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.
2019 $M
2018 $M
NOT CREDIT IMPAIRED
CREDIT IMPAIRED
NOT CREDIT IMPAIRED
CREDIT IMPAIRED
62.4
2.8
Business customers
60.1
0.7
6.6 0.3 4.2
–
Mass market customers Third party asset damages
4.4 0.4 5.2
–
5.2 0.9 8.9
3.9
Residential and other
–
Total gross carrying amount
73.5
70.1
4.6
(0.2)
(4.2)
Loss allowance
(0.1)
(3.0)
73.3
4.7
70.0
1.6
The following table provides information about the exposure to credit risk and expected credit losses for trade receivables as at 30 June.
2019 $M
2018 $M
CARRYING AMOUNT
LOSS ALLOWANCE
CARRYING AMOUNT
LOSS ALLOWANCE
65.9
– –
Not past due
56.5
– –
7.1 2.9 2.1
Past due 1 – 30 days Past due 31 – 120 days
7.2 4.1 3.8
0.2 4.2 4.4
0.1 3.0 3.1
Past due more than 120 days
Balance at 30 June
78.0
71.6
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
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