REC Silicon Annual Report 2019

76 Notes to the consolidated financial statements, REC Silicon Group REC Silicon Annual Report 2019 Analysis of aging of receivables at December 31, 2018 AGING OF RECEIVABLES PASTDUE (USD INMILLION) TOTAL CARRYING AMOUNT NOTDUE < 30 DAYS >30<90 DAYS >90<365 DAYS >365 DAYS Trade receivables 44.3 27.7 2.2 0.0 0.0 14.4 Provision for loss on trade receivables -14.4 0.0 0.0 0.0 0.0 -14.4 Other non-current and current receivables 1.9 1.9 0.0 0.0 0.0 0.0  Total receivables 31.7 29.5 2.2 0.0 0.0 0.0 Prepaid Costs 9.0 Total trade and other receivables 40.8 The provision for doubtful accounts includes the impact of adopting IFRS 9which requires the Company to estimate expected credit losses (ECL) based upon historical experience. The Company has prepared analyses to calculate an ECL estimated at 0.33 percent of sales. However, because expected credit losses are low and accounts receivable consists of relatively large outstanding balances, use of the ECL to record credit losses at the time of sale would result in provisions for losses on trade receivables for future sales. Therefore, the Company uses the ECL rate as a guideline and evaluates the potential that balances will not be received based upon days outstanding, customer payment histories, and other information regarding past due balances. In general, provisions are recorded for accounts which are greater than 60 days past due unless there is a clear indication that payment will be received. At December 31, 2019, approximately 72 percent of not due trade receivables were secured by bank guarantees. At December 31, 2018, approximately 22 percent of the not due receivables were secured by bank guarantees. In addition, primarily through the Export-Import Bank of the United States, accounts receivable secured by credit insurance were approximately 27 percent of the past due receivables at December 31, 2019. SENSITIVITIES Interest rate sensitivity A change in interest rates will affect interest payments on variable interest rate liabilities, cash, and restricted cash. The net effect of a one percentage point increase (decrease) in interest rates is estimated to affect profit or loss for the year by USD -0.1 (0.1) million calculated on outstanding amounts at December 31, 2019 and 2018. Exchange rate sensitivity The table below shows the estimated impact of a 10 percent increase in foreign currency rates compared to functional currencies for each entity. A decrease in the same percentagewould create the opposite effect. The amounts calculated in the table below are for RECSilicon ASA at period end and do not reflect fluctuations during the year. On January 1, 2018, RECSilicon ASA changed the functional and reporting currency fromNOK to USD. The table below for changes in 2019 and 2018 shows the effects on positions denominated in NOK. For 2019 and 2018 the exchange rate sensitivity for financial assets is primarily cash and financial liabilities denominated in NOK. Exchange rate sensitivity on financial instruments at December 31 CHANGE + 10%COMPAREDTO FUNCTIONAL CURRENCIES (USD INMILLION) 2019 2018 Financial assets 1.9 0.5 Financial liabilities -5.4 -5.4 Total -3.5 -4.9 Of which to equity USD receivables as part of net investment 0.0 0.0 Rest is to profit or loss -3.5 -4.9