Allowance for impairment losses on receivables

The entity maintains an allowance for impairment losses on receivables at a level considered adequate to provide for uncollectible receivables. The level of this allowance is evaluated by the entity on the basis of factors that affect the collectability of the accounts. These factors include, but are not limited to, the length of the entity’s relationship with debtors and, their payment behavior and known market factors. The entity reviews the age and status of the receivable, and identifies accounts that are to be provided with allowance on a regular basis. The amount and timing of recorded expenses for any period would differ if the entity made different judgment or utilized different estimates. An increase in the allowance for impairment losses on receivables would increase the recorded operating expenses and decrease current assets. 

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