| GRAP 108 on Statutory Receivables requires an entity to assess at each reporting date if a statutory receivable, or a group of statutory receivables is impaired. This assessment is required to determine if the likelihood of collecting the receivable has reduced.
An entity needs to assess if there is an indicator that individually significant statutory receivables and groups of similar individually insignificant statutory receivables are impaired. If there is no indication that an individually significant statutory receivable is impaired, the receivable is grouped with similar receivables and collectively assessed for impairment. For example, grouping receivables based on the type of debtor, such as all commercial or individual customers, or grouping receivables based on the transaction type, such as taxes, fines or grants.
Statutory receivables may be impaired if an indicator has been triggered. A list of minimum indicators is included in GRAP 108. If an indicator is triggered, the entity calculates the estimated future cash flows it expects to receive and compares it to the receivable’s carrying amount, or the carrying amounts of the group. In estimating the future cash flows, management considers all the relevant facts and circumstances at the reporting date, along with the timing of the cash flows. If the effect of time value of money is material, the estimated cash flows are discounted using a rate that reflects the current risk free rate, adjusted for any risks not included in the cash flows.
An impairment loss is recognised in surplus or deficit if the receivable’s carrying amount, or the carrying amounts of the group, is higher than the estimated future cash flows. | 
