XML 27 R17.htm IDEA: XBRL DOCUMENT v3.23.2
Trade Receivables
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Trade Receivables

8. TRADE RECEIVABLES

Allowance for Credit Losses

The Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” as of January 1, 2023. The Company reports a loss allowance for expected credit losses on financial assets measured at amortized cost, mostly referring to trade receivables. In calculating expected credit losses the Company has determined a modified Loss Rate Method to be the most appropriate taking into consideration (i) data availability, (ii) familiarity with historical procedure and historical losses and (iii) compliance with the provisions of the standard with regard to the forecasting requirement. Receivables are grouped based on historical credit loss information, specific risk characteristics and any other credit factor determined appropriate such that the group of receivables shares a similar risk profile. An overall loss rate percentage is derived from an eight-quarter historical lookback period. The historical loss rate is then adjusted for reasonable and supportable forecasts with the adjusted

expected credit loss rates applied to the respective groupings trade receivable balances outstanding. Expected credit losses are reviewed periodically by management. Trade receivables are presented net of an allowance for credit losses.

The financial results for the three and six months ended June 30, 2023 are presented under the new standard, while the comparative periods presented are not adjusted and continue to be reported in accordance with the Company’s historical accounting policy.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Balance, beginning of the period

 

$

5,698

 

 

$

2,151

 

 

$

3,174

 

 

$

2,057

 

Accruals

 

 

374

 

 

 

749

 

 

 

1,108

 

 

 

925

 

ASC326 implementation

 

 

—

 

 

 

—

 

 

 

1,270

 

 

 

—

 

ASC326 quarterly adjustments

 

 

1,368

 

 

 

—

 

 

 

1,874

 

 

 

—

 

Releases of provision

 

 

(82

)

 

 

—

 

 

 

(86

)

 

 

—

 

Utilization of provision

 

 

(622

)

 

 

(55

)

 

 

(631

)

 

 

(122

)

Effect of foreign exchange rate

 

 

18

 

 

 

(41

)

 

 

45

 

 

 

(56

)

Balance, end of the period

 

$

6,754

 

 

$

2,804

 

 

$

6,754

 

 

$

2,804