Illustrating the application of paragraph 35N

Entity A manufactures cars and provides financing to both dealers and end customers. Entity A discloses its dealer financing and customer financing as separate classes of financial instruments and applies the simplified approach to its trade receivables so that the loss allowance is always measured at an amount equal to lifetime expected credit losses. The following table illustrates the use of a provision matrix as a risk profile disclosure under the simplified approach:

20XX CU'000	Trade receivables days past due
Dealer financing	Current	More than 30 days	More than 60 days	More than 90 days	Total
Expected credit loss rate	0.10%	2%	5%	13%	-
Estimated total gross carrying amount at default	CU20,777	CU1,416	CU673	CU235	CU23,101
Lifetime expected credit losses-dealer financing	CU21	CU28	CU34	CU31	CU114
Customer financing
Expected credit loss rate	0.20%	3%	8%	15%	-
Estimated total gross carrying amount at default	CU19,222	CU2,010	CU301	CU154	CU21,687
Lifetime expected credit losses, customer financing	CU38	CU60	CU24	CU23	CU145