Issue link: http://itf.uberflip.com/i/1503947
ITF Trust Annual Report and Financial Statements 2022 35 Expected loss 2022 % Gross carrying amount 2022 $000 Loss allowance 2022 $000 Expected loss 2021 % Gross carrying amount 2021 $000 Loss allowance 2021 $000 Not past due 1.0% 6,993 (67) 0.1% 4,580 (4) Past due (0-30 days) 0.0% 1,439 - 0.0% 527 - Past due (31-180 days) 0.1% 6,837 (8) 0.8% 2,983 (23) Past due (more than 180 days) 28.5% 1,118 (319) 9.6% 1,304 (125) 16,387 (394) 9,394 (152) Trade receivables are wri en off when there is no reasonable expecta on of recovery. Indicators that there is no reasonable expecta on of recovery include failure to engage in repayment plans and failure to make payments greater than 365 days past due. Impairment losses are presented as net impairment losses within opera ng profit. Subsequent recoveries of amounts previously wri en off are credited against the same line item. The group is also exposed to credit risk in rela on to investments that are measured at fair value through profit or loss. The maximum exposure at the end of the repor ng period is the carrying amount of these investments: $34.6m (2021: $39.6m). The closing loss allowances for trade receivables as at 31 December 2022 reconcile to the opening loss allowances as follows: c) Liquidity risk Financial risk management Liquidity risk is the risk that the group will not be able to meet its financial obliga ons as they fall due. The group has substan al cash and liquid investment balances and does not require any external funding of its opera ons. Processes are in place to issue invoices on a mely basis, monitor cash collec on closely and chase overdue balances promptly, in order to minimise liquidity risk. This is par cularly the case in respect of sponsorship income collec on, where the amounts involved can be significant. On that basis, the loss allowance as at 31 December 2022 and 2021 was determined as follows: 2022 $000 2021 $000 Balance at 1 January 152 276 Receivables wri en off during the year as uncollectable - (130) Increase in loss allowance recognised in profit or loss during the year 242 6 Balance at 31 December 394 152