Page 107 - Paragon Annual Report 2

Notes to the consolidated financial statements (continued) 25 Financial risk management (continued)
Interest rate sensitivity analysis
The analysis shows the additional charge to Consolidated Income Statement assuming that the amount of the liability outstanding at the Consolidated Statement of Financial Position date was outstanding for the entire period.
100% movement in 3 month EUIBOR and LIBOR 76
Foreign exchange risk
The Group investments and activities are mainly located within the Eurozone as well as the UK.
Cover is arranged through a combination of internal hedging of risks by matching sales and purchases where practical and forward contracts where considered necessary. There was one open US Dollar forward contract at year-end but its fair value adjustment was not material.
Credit risk
The Group receives credit from funders and suppliers. Group policies are aimed at ensuring this credit is maintained at adequate levels for the purpose of funding the business operations.
Group policies are aimed at minimising losses from credit risk and require that credit terms are granted only to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures.
Individual exposures are monitored with customers subject to credit limits to ensure that the Group’s exposure to bad debts is not significant. Goods may be sold on a cash-with-order basis to mitigate credit risk.
An appropriate level of credit insurance cover has been arranged in the UK to ensure that we have a cost effective means of protection against increased credit risks in the current economic environment.
In determining the recoverability of a trade receivable the Group considers any change in the quality of the trade receivable from the date the credit was initially granted up to the reporting date, payment history, current relationship, latest market intelligence and the availability of credit insurance.
As illustrated in the following tables, the level of doubtful and partly impaired balances is low when compared to an accounts receivable balance of €109,285,000 and the provisions adequate.
Ageing of overdue and partly impaired receivables
Between 0 and 90 days 392 Between 91 and 120 days 181 Between 121 and 180 days 206 Over 181 days 1,389
2,168
| 103
2017
€000
175
2017
€000
293
227
336
1,977
Paragon Group Limited – 05258175
2016
€000
2016
€000
2,833