How Are Overdue Trade Receivables Classified under IFRS?

Under IFRS (International Financial Reporting Standards), certain criteria are considered for the classification and reporting of trade receivables once they become overdue. In this case, trade receivables:

1. Doubtful trade receivables: Overdue receivables with collection risk may be classified as doubtful receivables when their collection becomes doubtful. The company must recognise an impairment loss allowance against the risk that the receivable will not be collected. This allowance is determined under IFRS 9 "Financial Instruments".

2. Impairment: When trade receivables become overdue, the company must assess whether they are impaired. Under IFRS 9, impairment is calculated using the expected credit loss (ECL) model. This model takes into account not only losses that have occurred but also expected future losses.

3. Reporting: The ageing of overdue receivables and the impairment calculation should be disclosed separately in the financial statements. They generally continue to be presented under "trade receivables" in the balance sheet, net of the allowance for doubtful or uncollectable receivables.

4. Disclosure in the notes: Details of the status and impairment of overdue receivables should be disclosed in the notes to the financial statements, including the ageing analysis and information on expected credit losses.

This classification is made taking into account factors such as the company's collection policies, the level of risk in the sector and economic conditions.