Issue link: http://itf.uberflip.com/i/1547012
Expected loss 2025 % Gross carrying amount 2025 $000 Loss allowance 2025 $000 Expected loss 2024 % Gross carrying amount 2024 $000 Loss allowance 2024 $000 Not past due 0.0 8,180 - 0.0 5,719 - Past due (0-30 days) 0.0 12,235 - 0.0 1,235 - Past due (31-180 days) 0.0 2,119 - 0.0 16,363 - Past due (more than 180 days) 44.4 6,983 (3,103) 15.7 7,845 (1,232) 29,517 (3,103) 13,162 (1,232) Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation 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 operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item. The group is also exposed to credit risk in relation to investments that are measured at fair value through profit or loss. The maximum exposure at the end of the reporting period is the carrying amount of these investments: $30.0m (2024: $22.6m). The closing loss allowances for trade receivables as at 31 December 2025 reconcile to the opening loss allowances as follows: 38. Financial instruments (continued) (b) Credit risk (continued) 2025 $000 2024 $000 Balance at 1 January 1,232 466 Receivables written off during the year as uncollectable (159) (217) Increase in loss allowance recognised in profit or loss during the year 2,029 983 Balance at 31 December 3,102 1,232 (c) Liquidity risk Financial risk management Liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due. The group has substantial cash and liquid investment balances and does not require any external funding of its operations. Processes are in place to issue invoices on a timely basis, monitor cash collection closely and chase overdue balances promptly, in order to minimise liquidity risk. This is particularly the case in respect of sponsorship income collection, where the amounts involved can be significant. The following are the undiscounted contractual maturities of financial liabilities, including estimated interest payments and excluding the effect of netting agreements: ITF Trust Annual Report and Consolidated Financial Statements 39