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Note 12. Current Assets - Contract Assets





Services and sale of goods



Less: Allowance for expected credit losses





Hearing Australia has recognised a reversal of impairment of expected credit losses of $12,000 (2018: a reversal of impairment of $25,000) in profit or loss for the year ended 30 June 2019.

Accounting policy for contract assets
Contract assets are recognised when Hearing Australia has transferred goods or services to the customer but where the Hearing Australia is yet to establish an unconditional right to consideration. Contract assets are treated as financial assets for impairment purposes.

Under the current claims process with the DOH, Hearing Australia is remunerated on completion of a fitting which occurs when a customer returns for their follow up appointment. Services and sale of goods classified as contract assets represents revenue activities that are partially completed, usually when a customer has been fitted with a hearing device and has yet to return for the follow up appointment.