ITF

34 2024 ITF Annual Report and Financial Statements Notes Notes (continued, forming part of the financial statements) 37. Financial instruments (con nued) Impairment of financial assets The group has trade receivables that are subject to the expected credit loss model. While cash and cash equivalents and contract assets (accrued income) are also subject to the impairment requirements of IFRS 9, the iden fied impairment loss was immaterial. The group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a life me expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteris cs and the days past due. The expected loss rates are based on the payment profiles of sales over a period before the balance sheet date and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking informa on on macroeconomic factors affec ng the ability of the customers to se le the receivables. On that basis, the loss allowance as at 31 December 2024 and 2023 was determined as follows: Expected loss 2024 % Gross carrying amount 2024 $000 Loss allowance 2024 $000 Expected loss 2023 % Gross carrying amount 2023 $000 Loss allowance 2023 $000 Not past due 0.0% 5,719 - 0.0% 19,056 - Past due (0-30 days) 0.0% 925 - 0.0% 8,123 - Past due (31-180 days) 0.0% 16,363 - 0.4% 6,318 (25) Past due (more than 180 days) 15.7% 7,845 (1,232) 11.2% 3,924 (441) 30,852 (1,232) 37,421 (466) 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: $22.6m (2023: $20.7m). The closing loss allowances for trade receivables as at 31 December 2024 reconcile to the opening loss allowances as follows: 2024 $000 2023 $000 Balance at 1 January 466 394 Receivables wri en off during the year as uncollectable 217 - Increase in loss allowance recognised in profit or loss during the year 983 72 Balance at 31 December 1,232 466

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