UTech Annual Report 2019-20

Page 23 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) Exposure to credit risk for investments (continued) ECL Staging 2019 12-month ECL Stage 2 – Lifetime ECL Stage 3 – Lifetime ECL Total $’000 $’000 $’000 $’000 As at 1 April 2019 Reverse Repurchase at amortised cost 1,850,084 - - 1,850,084 Debt securities at amortised cost 330,955 - - 330,955 Gross carrying amount 2,181,039 - - 2,181,039 ECL (84) - - (84) Gross carrying amount, net of ECL 2,180,955 - - 2,180,955 The gross carrying amount net of ECL reconciles to the total investments as follows 2020 $’000 2019 $’000) Gross carrying amount, net of ECL 1,822,807 2,181,039 SICR The University considers financial assets to have experienced a significant increase in credit risk when the following factor has been met: Receivables which have exceeded the contractual payment period. Receivables within this category are continuously monitored by the University’s management to ensure all collection options are exercised to bring these accounts up to date. Incorporation of forward-looking information Historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability for settlement of the receivables. The University has identified indicators such as trends in macroeconomic fundamentals, and accordingly adjusts the historical loss rates based on expected changes in these factors. University of Technology, Jamaica 139

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