Recognition and measurement

Trade and other receivables are considered financial assets. They are initially recorded at the fair value of the amounts to be received and are subsequently measured at amortised cost using the effective interest method. These financial assets are derecognised when the rights to receive cash flows from the financial assets have expired.

For trade receivables, the Group applies a simplified approach in calculating Expected Credit Losses (ECLs). Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. Further information about the Group’s accounting policy for impairment of financial assets, which includes trade and other receivables, is included in Note H8.

There have been no material impairment losses.

The Group did not have any material receivables that were past due or impaired at 30 June 2020 (2019: nil).