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Accounts Receivable, Net
 9 Months Ended
Sep. 30, 2020
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Accounts receivable, net Accounts receivable, net

Accounts receivable from customers are recognized initially at fair value and subsequently measured at amortized cost less allowance for expected credit losses. Losses on accounts receivable are estimated based on historical credit loss experience of receivables with similar risk characteristics. Historical loss experience is adjusted to reflect any management expectations that current or future conditions will differ from conditions that existed for the period over which historical information is evaluated.

To determine expected credit losses, customer receivables are disaggregated by credit characteristics, type of customer service, customer line of business, and receivable aging.
 
For the three months ended September 30, 2020
For the nine months ended September 30, 2020
(in millions of Canadian dollars)
Freight
Non-freight
Total
Freight
Non-freight
Total
Allowance for credit losses, opening balance(1)
$
(26
)
$
(14
)
$
(40
)
$
(27
)
$
(16
)
$
(43
)
Current period credit loss provision, net
—

—

—

1

2

3

Allowance for credit losses, closing balance
$
(26
)
$
(14
)
$
(40
)
$
(26
)
$
(14
)
$
(40
)

(1) 
Opening balance at January 1, 2020 was restated as described in Note 2.
 
As at September 30, 2020
(in millions of Canadian dollars)
Freight
Non-freight
Total
Total accounts receivable
$
705

$
175

$
880

Allowance for credit losses
(26
)
(14
)
(40
)
Total accounts receivable, net
$
679

$
161

$
840



Receivables are considered to be in default and are written off against the allowance for credit losses when it is probable that all remaining contractual payments due will not be collected in accordance with the terms of the customer contracts. Subsequent recoveries of amounts previously written off are credited to earnings in the period recovered.