Under IFRS, overdue trade receivables do not need to be reclassified as other receivables. Even when overdue, trade receivables are receivables arising mainly from the company's principal trading activities and therefore continue to be classified as "trade receivables". However, it must be assessed whether they are impaired, and the allowances recognised as a result of that assessment reflect the net value of trade receivables.
Other receivables are receivables arising from transactions other than trading activities. For example, loans given to another company, staff advances or rent receivables, which are not a direct part of trading activity, fall into this category.
In short, even if overdue, trade receivables continue to be classified as trade receivables; they are not transferred to "other receivables". (Transactions with related parties and certain specific transactions need to be assessed by company management.)
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