Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Trade Accounts Receivable

Trade Accounts Receivable
12 Months Ended
Dec. 31, 2019
Trade Accounts Receivable (Abstract)  
Trade accounts receivable
6. Trade accounts receivable


        2019     2018  
Trade account receivables     Ps. 260,727       208,116  
Expected credit loss         (13,640 )     (9,340 )
      Ps. 247,087       198,776  


Trade accounts receivable from customers detailed above are measured at their amortized cost. The average related to the turnover of accounts receivable is 30 days. No interest is charged on outstanding trade receivables.


The Group always measures the loss allowance for trade receivables at an amount equal to lifetime ECL. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date. See Note 20 for information on exposure to credit and market risks.


There has been no change in the estimation techniques or significant assumptions made during the current reporting period.


The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or when the trade receivables are over one year past due, whichever occurs earlier. None of the trade receivables that have been written off is subject to enforcement activities.


The following table details the risk profile of trade receivables based on the Group's provision matrix. As the Group's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished between the Group's different customer base.


Trade receivables – days past due
December 31, 2019       Not past
    14-21     21 – 28     >28     Total  
Expected credit loss rate         2 %     20 %     49 %     42 %        
Estimated total gross carrying amount at default     Ps. 207,032       12,098       7,045       29,807       255,982  
Expected credit loss     Ps. 3,950       2,454       3,477       12,634       22,515  


Trade receivables – days past due
December 31, 2018       Not past due     14-21     21 – 28     >28     Total  
Expected credit loss rate         1 %     16 %     37 %     38 %        
Estimated total gross carrying amount at default     Ps. 194,366       13,794       5,681       33,438       247,279  
 Expected credit loss     Ps. 1,910       2,150       2,108       12,531       18,699  


The following table shows the movement in lifetime ECL that has been recognized for trade and other receivables in accordance with the simplified approach set out in IFRS 9.


Balance as at January 1, 2018     Ps. (4,333 )
Expected credit loss         (18,699 )
Amounts written off         13,692  
Balance as at 31 December 2018         (9,340 )
Expected credit loss         (22,515 )
Amounts written off         18,215  
Balance as at December 31, 2019     Ps. (13,640 )