For assets in the scope of the IFRS 9 impairment model, impairment losses are generally expected to increase and become more volatile. The Company has determined that the application of IFRS 9’s impairment requirements at January 1, 2018 results in an additional impairment allowance as follows.
| (€ in thousands) | |||||
| Loss allowance at December 31, 2017 under IAS 39 | 482 | ||||
| Additional impairment recognized at January 1, 2018 on: | |||||
| Trade and other receivables as at December 31, 2017 | 62 | ||||
| Additional trade receivables recognized on adoption of IFRS 15 | 1 | ||||
| Loss allowance at January 1, 2018 under IFRS 9 | 545 |
The following tables provides information about the exposure to credit risk and ECLs for trade receivables as of January 1, 2018 and June 30, 2018. This was calculated after a specific assessment of the trade receivables and after recording a specific debt allowance.
| January 1, 2018 | ||||||||||||
| Equivalent to external | ||||||||||||
| credit rating | Probability of | Gross carrying | Impairment loss | Net carrying | ||||||||
| Grades | (Standard & Poor’s) | default | amount | allowance | amount | |||||||
| (€ in thousands) | ||||||||||||
| Grades 1-4: | Low risk | BBB+ to AAA | 0.2% | 3,274 | 5 | 3,269 | ||||||
| Grades 5-7: | Fair risk | B+ to BBB | 1.3% | 1,674 | 22 | 1,652 | ||||||
| Grades 8-9: | Substandard | CCC- to B | 7.0% | 363 | 25 | 338 | ||||||
| Grade 10: | Doubtful | C to CC | 25.0% | 14 | 3 | 11 | ||||||
| Grade 11: | Loss | D | 100.0% | 8 | 8 | -- | ||||||
| 5,333 | 63 | 5,270 | ||||||||||
| June 30, 2018 | ||||||||||||
| Equivalent to external | ||||||||||||
| credit rating | Probability of | Gross carrying | Impairment loss | Net carrying | ||||||||
| Grades | (Standard & Poor’s) | default | amount | allowance | amount | |||||||
| (€ in thousands) | ||||||||||||
| Grades 1-4: | Low risk | BBB+ to AAA | 0.2% | 1,730 | 3 | 1,727 | ||||||
| Grades 5-7: | Fair risk | B+ to BBB | 1.3% | 1,964 | 26 | 1,938 | ||||||
| Grades 8-9: | Substandard | CCC- to B | 7.0% | 448 | 31 | 417 | ||||||
| Grade 10: | Doubtful | C to CC | 25.0% | 172 | 43 | 129 | ||||||
| Grade 11: | Loss | D | 100.0% | 94 | 94 | -- | ||||||
| 4,408 | 197 | 4,211 | ||||||||||
