Page 102 - Learn Africa 2021 Annual Report

Learn Africa Plc
Notes to the Financial Statements (cont’d)

For the year ended 31 March 2021

31 March 2021 Trade receivables–Days past due
181-360 361-720 721-1080
Current 1-180 days days days days >1080 days Total
₦’000 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000
Expected credit loss rate - - 24.96% 34.52% - 42.02% -
Gross carrying amount - - 42,701 363,788 - 1,213,544 1,620,033
Expected credit loss - - 10,660 125,569 - 509,951 646,180

31 March 2020
Expected credit loss rate 1.37% 4.80% 21.87% 21.87% 34.66% 58.27% -
Gross carrying amount - 500,000 137,913 - 288,504 791,288 1,717,705
Expected credit loss - 24,000 30,000 - 100,000 461,483 615,483

Set out below is the movement in the allowance for expected credit losses/impairment
allowance of trade receivables:
2021 2020
₦’000 ₦’000
At 1 April 615,483 481,807
Provision for expected credit loss 30,697 133,676
At 31 March 646,180 615,483

Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable
progressing through successive stage delinquency to write-off. These rates are multiplied
by scalar factors to reflect differences between economic conditions during the period
over which the historical data has been collected, current conditions and the Company’s
view of economic conditions over the expected lives of the receivables.

Expected credit loss measurement - other financial assets

The Company applied the general approach in computing expected credit losses (ECL) for
short-term deposits and staff loans. The Company recognises an allowance for expected
credit losses (ECLs) for all debt instruments not held at fair value through profit or loss.
ECLs are based on the difference between the contractual cash flows due in accordance
with the contract and all the cash flows that the Company expects to receive, discounted at
an approximation of the original effective interest rate.

ECLs are recognised in two stages. For credit exposures for which there has not been a
significant increase in credit risk since initial recognition, ECLs are provided for credit
losses that result from default events that are possible within the next 12-months (a

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