Page 20 University of Technology, Jamaica Notes to the Financial Statements 31 March 2020 (expressed in Jamaican dollars unless otherwise indicated) 3. Financial Risk Management (Continued) (a) Credit risk (continued) Credit review process (continued) Loss Allowance To measure ECLs, trade receivables (mainly from students, scholarship donors and Students’ Loan Bureau) are grouped by aging buckets. Lifetime ECLs are determined by taking into consideration historical rates of default for the totals of aged receivables as well as the estimated impact of forward-looking information. In determining historical rates of default, trade receivables were assessed individually under each aging bucket and were used as a proxy for historical losses. On this basis, the University’s loss allowance for trade receivables was determined as follows: 31 March 2020 Current 2019 2018 2017 Before 2017 Total $’000 $’000 $’000 $’000 $’000 $’000 Gross carrying amount 158,242 777,878 196,577 53,292 316,752 1,502,741 Expected loss rate 2.10% 8.42% 28.34% 73.05% 100.00% Loss allowance 3,323 65,465 55,710 38,930 316,752 480,180 1 April 2019 Current 2018 2017 2016 Before 2016 Total $’000 $’000 $’000 $’000 $’000 $’000 Gross carrying amount 226,452 522,702 170,024 56,033 234,652 1,209,863 Expected loss rate 2.26% 2.07% 21.42% 81.16% 100% Loss allowance 5,115 10,820 36,419 45,476 234,652 332,482 University of Technology, Jamaica 136
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