WindarPhotonics AnnualReport 2018 All - Flipbook - Page 68
Notes to the Financial Statements
continued
20. Trade and other receivables (continued)
More than More thanMore than
30 days 60 days120 days
past duepast duepast dueTotal
€€€€
Gross carrying amount
19,500524,030 84,039627,569
Loss provision--(47,541) (47,541)
Net carrying amount
19,500
524,030 36,498580,028
Trade and other receivables represent financial assets and are considered for impairment on an expected credit
loss model, these assets have historically had immaterial levels of bad debt and are with credit worthy customers,
and as the Group trades with a concentrated number of customers and utilises export credit facilities the Group
has reviewed trade receivables on an individual basis. Additionally, the Group continues to trade with the same
customers and therefore the future expected credit losses have been considered in line with the past performance
of the customers in the recovery of their receivables. The implementation of IFRS 9 has therefore not resulted in a
change to the impairment provision in the current or prior year.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses using a lifetime expected
credit loss provision for trade receivables. The expected loss rates are based on the Group’s historical credit losses
experienced over the three year period prior to the period end. The historical loss rates are then adjusted for of
current and forward-looking information on factors affecting the Group’s customers including the area of operations
those debtors and the advancing market for wind power and the Group’s products. The assessment of the
expected credit risk for the year has not increased, when looking at the factors affecting the risk noted above.
Movements in the impairment allowance for trade receivables are as follows:
As at
As at
31 Dec 2018 31 Dec 2017
€
€
At 1 January under IAS 39
47,684
27,536
Restated through opening reserves
-
47,684
27,536
Increase during the year
Receivable written off during the
year as uncollectible
Impairment loss during the year
At 31 December
39,182
(39,325)
20,148
(143)
20,148
47,541
47,684
There is no material difference between the net book value and the fair values of trade and other
receivables due to their short-term nature.
Other classes of financial assets included within trade and other receivables do not contain impaired assets.
Of the net trade receivables €13,096 (2017: €152,407) was pledged as security for the invoice discounting facility.
The Group is committed to underwrite any of the debts transferred and therefore continues to recognise the
debts sold within trade receivables until the debtors repay or default. Since the trade receivables continue to
be recognised, the business model of the Group is not affected. The proceeds from transferring the debts of are
included in other financial liabilities until the debts are collected or the Group makes good any losses incurred by
the service provider.
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Windar Photonics - Annual Report and Accounts 2018