Page 70 - Beeks Financial Cloud Group Annual Report 2021

68 Beeks Financial Cloud Group PLC For the year ended 30 June 2021

Notes to the Consolidated Financial Statements

Notes to

Financial Statements

collect all amounts due according to that is subject to the expected amount and the present value
the original terms of the receivables. credit loss model is trade of estimated future cash flows.
receivables, which consist of billed An assessment for impairment
Significant financial difficulties receivables arising from contracts. is undertaken at least at each
of the debtors, probability that reporting date.
the debtor will enter bankruptcy The Group has applied the
or financial reorganisation, and simplified approach to providing FINANCIAL LAIBILITIES
default or delinquency in payments for expected credit losses (“ECL”) Trade and other payables
(more than 90 days overdue) prescribed by IFRS 9, which permits Trade and other payables are
are considered indicators that the use of lifetime expected loss recognised initially at fair value
the trade and other receivables provision for all trade receivables. and subsequently measured at
may be impaired. The amount amortised cost using the effective
of the allowance is the difference The ECL model reflects a probability interest method. These amounts
between the asset’s carrying weighted amount derived from a represent liabilities for goods and
amount and the present value range of possible outcomes. To services provided to Beeks Financial
of estimated future cash flows, measure the ECL, trade receivables Cloud Group plc prior to the end
discounted at the original effective and contract assets have been of the financial period which are
FINANCE
interest rate. The carrying amount grouped based on shared credit unpaid as well as any outstanding
of the asset is reduced through risk characteristics and the tax liabilities.
the use of an allowance account, days past due. The Group has
and the amount of the loss is established a provision matrix Borrowings
recognised in the profit or loss based on the payment profiles Loans and borrowings are initially
within ‘administrative expenses’. of historic and current sales and recognised at the fair value
When a trade or other receivable the corresponding credit losses of the consideration received,
is uncollectible, it is written off experienced. The historical loss net of transaction costs. They
against the allowance account rates are adjusted to reflect current are subsequently measured at
for trade and other receivables. and forward-looking information amortised cost using the effective
Subsequent recoveries of amounts that might affect the ability of interest method.
previously written off are credited customers to settle the receivables,
against ‘admin costs’ in the income including macroeconomic factors Defined contribution schemes
statement. as relevant. The defined contribution scheme
provide benefits based on the
IFRS 9 requires an expected Provision against trade and other value of contributions made.
credit loss (“ECL”) model which receivables is made when there Contributions to the defined
requires The Group to account is evidence that The Group will contribution superannuation plans
for expected credit losses and not be able to collect all amounts are expensed in the period in which
changes in those expected credit due to it in accordance with the they are incurred.
losses at each reporting date to original terms of those receivables.
reflect changes in credit risk since The amount of the write-down Fair value measurement
initial recognition of the financial is determined as the difference When an asset or liability, financial
assets. The main financial asset between the asset’s carrying or non-financial, is measured at fair