Trade Receivables

3 Months Ended

Mar. 31, 2020

The following table shows the breakdown in trade receivables net book value for the presented periods:


	December 31, 2019		March 31, 2020

	(in thousands)
Trade accounts receivables	$	497,800	$	387,524
(Less) Allowance for credit losses	(16,068)		(23,084)
Net book value at end of period	$	481,732	$	364,440

Changes in allowance for credit accounts are summarized below:


	2019		2020

	(in thousands)
Balance at January 1	$	(25,918)	$	(16,068)
Allowance for credit losses through retained earnings (*)	—		(3,498)
Allowance for credit losses	(5,282)		(6,997)
Reversal of provision	5,931		2,989
Currency translation adjustment	100		490
Balance at March 31	$	(25,169)	$	(23,084)

(*) From January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost issued by the Financial Accounting Standards Board (FASB). ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. This results in earlier recognition of credit losses. We adopted ASU 2016-13 effective January 1, 2020 with the cumulative effect of adoption recorded as an adjustment to retained earnings (note 1).

The amount charged to allowance for credit losses for the three months ended March 31, 2020 increased compared to the same period in the prior year due to the application of the expected credit loss model beginning on January 1, 2020 as well as an increase in the provision due to the expected impact of COVID-19 on the Company's future cash collections.

The reversal of provision decreased during the three month period ended March 31, 2020, mainly due to lower payments received and write-offs of long outstanding receivables already reserved for which it is certain we will not collect the receivable. During the three months ended March 31, 2020, the Company recovered $0.6 million previously written off, accounted for as a reversal of provision.

The Company mitigates its credit risk with respect to accounts receivables by performing credit evaluations and monitoring agencies and advertisers' accounts receivables balances.