Trade and Non-trade Receivables a n) Existence, -through confirmation hve Procedure f tow? widence needed? — official recerpty — Test of Suvsequen Receipts 2) Completeness cutoff period Evidence needed ? Sale Invoice aud Shipping report If Salts mavoite lag > yung possession ang Wahaingd. avaiuatiou = Things 40 (0 discount sider: Allowance for sales ttyr Account Allowance Foy Doub Discount On Notes / Alowane for [mpairment 0% S All ave cot TA accounts, 4H 4 5 fy yg 5 Zmm PAS 31 —> Incurred Loy model IFRS 4 Expected Lov Model A tao. 1-12 month expected 10% Stage Z - lifetime 1055 (Siguifi'cant Mmcrtase im credit ri9k ) rstage J- Objective evidence Of Impairment Agmg Receivavle Income Recoguitioy® : SL=6L jif wot equal the, auditor will weewe ie it! Stage 1 y fae vaiuc tffeawe vate Ip uarrtamcile va but pot yer equal pari, Stage. 2 Sta 23 carrying vale x effective vate the difference iy reflected ay difference ga 6L and sales NOTES RECEIVABLE ee &) Existence, IMspectovd vecevnputation Of Gufivmation wateregt Trade Or nop-trade L Qvnm now cuntint Always CurrentSample Problem A.Received woits dated jan 4,2015,collecible a, follows Dee 41,2015 20 (15M 2077 IM 201g 500k Privcipal IM rhe note bears av interest of 5% poyavle tach year starting December 41,2015 bated om outstauding balance. effe dive el. the pagent of a equipunent that doy with O51 of PIM rate tS Ib 1 for Sold on aud fcc pep P 500K py = 27649804 Notts Receivable Acc, Dopreucition viscount ov NR Iu rpnent Gain on Sale of Equip 4000600 00000 299019 350000b 464991 FAG4A?! 1960179 14549 ANS rapsi/15 fie apie | yaune Shortcut 1 0700 -1,5™M 79294 #150000 = 7129294 /1966174 took Tok |20%0%4 19k IM 25k 500K camputing ¢ffectve intertot vate = 7Q1944— Avnorti tation 229194 — Effective lmtercst =B, t 1420706 Additiowal scenanod At the tnd of 20l6, the issuer of the note suffers from a financial difficulty. heue the imttrtsi for the remaining @ years will not be collected aud the payment of Primcipa@! io to be Cxpected for 2 years, starting Wis avd 2020. Effective rate at the end of 2010 ig at 4%. So: : ov PIM «859334 500K 795030 Inparment lf 220614 1445433 pli724854)m PAS 34 —s Incurred log5 model IFRS 4 az Expected Loss Model ca 1-12 month expected lo aStage 2 - lifetime 1055 (Siguif’cant lucrtase in ctdit risk ) 4stage 3 - Objective evidence OF Impairment Agim Receivable : SL=EL j1f ot equal , tae auditor will recowerle itl ye VOR If varrecomcile: Wa but not yer Equal porn, vate | the difference iy reflected ay difference Ga GL aud salts Iacomne Recoguition Stage 1 > sae varue * Hie Stage 2 Stage ? eae NoTeS RECEIVABLE a ana h) Evisteuce, imspectlovt rtcomputatiou Of Coufimation Trade or nop trade Lb cukiny Ronunent Alwoys (urevit carrying value % effective taterest