8 - Trade receivables

Accounting policies

Trade and other receivables

Trade and other receivables include amounts due from customers for services performed in the ordinary course of business.

Trade and other receivables are initially recognized at the amount as determined in accordance with IFRS 15 and subsequently measured at amortized cost, using the effective interest rate method, less expected credit losses (“ECL”). The fair value of the trade and other receivables approximates the carrying amount due to their short-term nature.

Expected credit losses

The Group recognizes an allowance for ECL on contract assets and trade receivables. ECLs are based on the difference between the contractual cash flows due and all the cash flows the Group expects to receive. The Group established a provision matrix that considers its historical credit loss experience, predicted future defaults, and debtor-specific forward-looking factors. The Group determines this loss allowance at each reporting date. The amounts actually written off in recent years are immaterial.

A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

Trade receivables and receivables from related parties consist of the following:

The composition of the gross trade receivables by age is as follows: