IFRS 9 example: lifetime ECL for trade receivables using a provision matrix

Below are calculations accompanying the example available on IFRScommunity.com under direct link below:

https://ifrscommunity.com/knowledge-base/ifrs-9-impairment/#ifrs_9_example_lifetime_ECL_trade_receivables_provision_m

Calculation of loss rate for Entity A for B2C segment

receivables
payments outstanding receivables ageing
sales in January 100,000 not overdue
paid on time 50,000 50,000 overdue 1-30 days
paid 1-30 days after due date 27,000 23,000 overdue 31-60 days
paid 31-60 days after due date 15,000 8,000 overdue 61-90 days
paid 61-90 days after due date 6,000 2,000 overdue 91+ days - not paid at all

As as 31 December 20X1, Entity A prepared ageing of its trade receivables and calculated lifetime ECL as follows:

amount ageing loss rate ECL allowance

300,000 not overdue 2.0% 6,000
140,000 overdue 1-30 days 4.0% 5,600
60,000 overdue 31-60 days 8.7% 5,217
23,000 overdue 61-90 days 25.0% 5,750
5,000 overdue 91+ days 100.0% 5,000
27,567
e_receivables_provision_matrix_01

loss rate
2.0%
4.0%
8.7%
25.0%
100.0%

CL as follows:

total ECL allowance