Page 7 - Bahamas Waste inside pages

Impairment of Trade Receivables
As of December 31, 2018, the Company’s trade receivables and allowance for impairment losses are $3,218,462 and $867,345, respectively (see note 5).
Significant judgments are made in assessing the impairment of trade receivables. On January 1, 2018 a new accounting standard for financial instruments (“IFRS 9”) became effective, which requires impairment of financial assets to be calculated based on expected credit losses (“ECL”), rather than the “Incurred losses” model previously applied under IAS 39.
IFRS 9 is a new and complex accounting standard requiring use of even more subjective estimates and significant judg- ments to determine both the timing and measurement of impairment losses.
Key judgments and estimates in respect of the timing and measurement of ECL include:
• Assumptions used in the ECL calculation such as historical default rates and forward-looking information (inflation and GDP growth rates).
• The identification of exposures with a significant deterioration in credit quality.
• Completeness and accuracy of underlying data used to calculate expected credit losses.
• Accuracy and adequacy of related financial statement disclosures under IFRS 9.
• Reviewedtheinternalcontrolsimplementedby the Company to assess recoverability of its trade receivables and determination of the related allowance for impairment losses;
• Testedandassessedkeyinputs,assumptions,and formulas used by management to calculate the allowance for impairment losses;
• Comparedthedefaultratesusedbymanagement against historical analysis of related trade accounts receivable;
• Evaluatedforward-lookinginformationused through trend analysis and corroboration using publicly available information;
• Evaluatedthedisclosuresmadeinthefinancial statements.
• AsIFRS9wasadoptedatthestartofthe2018fiscal year, we evaluated related opening balances to gain assurance on the transition to IFRS 9. This included testing related adjustments and disclosures made on the transition.
Other Information
Management is responsible for the other information. The other information comprises the information included in the Company’s 2018 Annual Report, but does not include the financial statements and our auditors’ report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
BAHAMAS WASTE LIMITED ANNUAL REPORT 2018
7