| GRAP 108 on Statutory Receivables requires an entity to consider at each reporting date, if a statutory receivable is impaired. A statutory receivable is impaired if there is evidence that the collection of the receivable has decreased due to a debtor being credit-impaired, for example when a debtor applied for debt counselling because of financial difficulty, or because the debtor is in default. The impairment loss is calculated by comparing the carrying amount of the receivable to the estimated future cash flows. The estimated cash flows are based on amounts that management expects to receive based on facts and circumstances at the reporting date following past defaults or impairment events.
The new GRAP 104 (2019) becomes effective on 1 April 2025, and applies a different impairment approach to that in GRAP 108. Under GRAP 104(2019), a contractual receivable will be impaired if the credit risk of the receivable increased significantly since initial recognition. For this assessment, management considers all reasonable and supportable information about past events, current conditions and forecasts of future economic conditions that is available without undue cost and effort. The cash flows are estimated by considering the contractual terms of the receivable through its expected life. | 
