ESR AR 2019 EN

Notes to the Consolidated Financial Statements 31 December 2019 193 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ESR Annual Report 2019 23. TRADE RECEIVABLES As at 31 December As at 31 December 2019 2018 USD’000 USD’000 Rental income receivables 4,303 4,889 Management fees due from the joint ventures of the Group 12,338 16,058 Management fees due from funds managed by the Group 65,686 34,309 Management fees due from minority shareholders of subsidiaries 383 – Construction income receivables 5,837 7,481 Solar energy income receivables 350 320 88,897 63,057 The Group’s trading terms with its customers are mainly on credit, except for new customers, where payment in advance is normally required. The Group seeks to maintain strict control over its outstanding receivables to minimize credit risk. Overdue balances are reviewed regularly by senior management. In view of the aforementioned and the fact that the Group’s trade receivables related to various diversified customers, there is no significant concentration of credit risk. The Group does not hold any collateral or other credit enhancements over its trade receivable balances. The balances of trade receivables are non-interest-bearing. An aging analysis of the trade receivables as at 31 December 2019 and 2018, based on the invoice date and net of loss allowance, is as follows: As at 31 December As at 31 December 2019 2018 USD’000 USD’000 Within 90 days 81,069 36,292 91 to 180 days 4,324 23,015 Over 180 days 3,504 3,750 Total 88,897 63,057 The Group has applied the simplified approach to providing impairment for ECLs prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for all trade receivables. To measure the ECLs, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The ECLs below also incorporate forward-looking information. The impairment as of 31 December 2019 and 2018 is determined as follows: 31 December 2019 31 December 2018 Current Current USD’000 USD’000 Expected credit loss rate < 0.001% < 0.001% Gross carrying amount (USD’000) 88,897 63,057 Impairment (USD’000) – –