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Financial assets and liabilities | 6 Months Ended
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Jun. 30, 2020
Financial Instruments [Abstract] |
Financial assets and liabilities |
Note 14 | Financial assets and liabilities
FAIR VALUE The following table provides the fair value details of financial instruments measured at amortized cost in the consolidated statements of financial position.
|  |  | JUNE 30, 2020 |  | DECEMBER 31, 2019 |
| CLASSIFICATION | FAIR VALUE METHODOLOGY | CARRYING VALUE | FAIR VALUE | CARRYING VALUE | FAIR VALUE
CRTC tangible benefits obligation | Trade payables and other liabilities and other non-current liabilities | Present value of estimated future cash flows discounted using observable market interest rates | 12 |  | 12 |  | 29 |  | 29 |
CRTC deferral account obligation | Trade payables and other liabilities and other non-current liabilities | Present value of estimated future cash flows discounted using observable market interest rates | 82 |  | 86 |  | 82 |  | 85 |
Debt securities and other debt | Debt due within one year and long-term debt | Quoted market price of debt | 21,517 |  | 25,068 |  | 18,653 |  | 20,905 |
The following table provides the fair value details of financial instruments measured at fair value in the consolidated statements of financial position.
|  |  | FAIR VALUE |  |
| CLASSIFICATION | CARRYING VALUE OF ASSET (LIABILITY) | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OBSERVABLE MARKET DATA (LEVEL 2)(1) | NON-OBSERVABLE MARKET INPUTS (LEVEL 3)(2)
June 30, 2020 |  |  |  |  |
Publicly-traded and privately-held investments | Other non-current assets | 122 |  | 2 |  | — |  | 120 |
Derivative financial instruments | Other current assets, trade payables and other liabilities, other non-current assets and liabilities | 522 |  | — |  | 522 |  | — |
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability(3) | Trade payables and other liabilities | (138) |  | — |  | — |  | (138) |
Other | Other non-current assets and liabilities | 91 |  | 2 |  | 147 |  | (58) |
December 31, 2019 |  |  |  |  |
Publicly-traded and privately-held investments | Other non-current assets | 129 |  | 2 |  | — |  | 127 |
Derivative financial instruments | Other current assets, trade payables and other liabilities, other non-current assets and liabilities | 165 |  | — |  | 165 |  | — |
MLSE financial liability(3) | Trade payables and other liabilities | (135) |  | — |  | — |  | (135) |
Other | Other non-current assets and liabilities | 71 |  | 1 |  | 128 |  | (58) |
(1)Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates. (2)Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments. (3)Represents BCE’s obligation to repurchase the BCE Master Trust Fund's (Master Trust Fund) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recognized in Other (expense) income in the consolidated income statements. The option has been exercisable since 2017. CREDIT RISK We are exposed to credit risk from operating activities and certain financing activities, the maximum exposure of which is represented by the carrying amounts reported in the statements of financial position. We are exposed to credit risk if counterparties to our trade receivables and derivative instruments are unable to meet their obligations. The concentration of credit risk from our customers is minimized because we have a large and diverse customer base. There was minimal credit risk relating to derivative instruments at June 30, 2020 and December 31, 2019. We deal with institutions that have investment-grade credit ratings, and as such we expect that they will be able to meet their obligations. We regularly monitor our credit risk and credit exposure. The following table provides the change in allowance for doubtful accounts for trade receivables, which reflects an increase for the period ended June 30, 2020, mainly as a result of the impact of the COVID-19 pandemic.
| NOTE |
Balance, January 1, 2020 |  | (62) |
Additions |  | (90) |
Usage |  | 48 |
Balance, June 30, 2020 | 10 | (104) |
In many instances, trade receivables are written off directly to bad debt expense if the account has not been collected after a predetermined period of time. The following table provides further details on trade receivables, net of allowance for doubtful accounts.
| June 30, 2020 | December 31, 2019
Trade receivables not past due | 1,926 |  | 2,082 |
Trade receivables past due |  |
Under 60 days | 395 |  | 541 |
60 to 120 days | 252 |  | 232 |
Over 120 days | 112 |  | 64 |
Trade receivables, net of allowance for doubtful accounts | 2,685 |  | 2,919 |
MARKET RISK CURRENCY EXPOSURES We use forward contracts, options and cross currency basis swaps to manage foreign currency risk related to anticipated purchases and sales and certain foreign currency debt. During the first half of 2020, we entered into foreign exchange forward contracts with a notional amount of $1,453 million in U.S. dollars ($2,039 million in Canadian dollars) to hedge the foreign currency risk associated with amounts drawn under our $4 billion Canadian dollar committed credit facilities. These foreign exchange contracts have matured at June 30, 2020. A loss of $30 million and $14 million, for the three and six months ended June 30, 2020, respectively, relating to these foreign exchange forward contracts is recognized in Other (expense) income in the consolidated income statements, which offsets the foreign currency gain on the repayment of drawdowns under the credit facilities. A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a gain (loss) of $1 million ($55 million) recognized in net earnings from continuing operations at June 30, 2020 and a gain (loss) of $228 million recognized in Other comprehensive (loss) income from continuing operations at June 30, 2020, with all other variables held constant. A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the Philippines Peso would result in a gain (loss) of $2 million in Other comprehensive (loss) income from continuing operations at June 30, 2020, with all other variables held constant. The following table provides further details on our outstanding foreign currency forward contracts and options as at June 30, 2020.
TYPE OF HEDGE | BUY CURRENCY | AMOUNT TO RECEIVE | SELL CURRENCY | AMOUNT TO PAY | MATURITY | HEDGED ITEM
Cash flow | USD | 200 |  | CAD | 279 |  | 2020 | Commercial paper
Cash flow | USD | 370 |  | CAD | 480 |  | 2020 |  | Anticipated transactions
Cash flow | PHP | 1,012 |  | CAD | 26 |  | 2020 |  | Anticipated transactions
Cash flow | USD | 588 |  | CAD | 768 |  | 2021 | Anticipated transactions
Economic | USD | 26 |  | CAD | 36 |  | 2021 | Anticipated transactions
Economic - put options | USD | 209 |  | CAD | 284 |  | 2020 | Anticipated transactions
Economic - put options | USD | 214 |  | CAD | 284 |  | 2021 |  | Anticipated transactions
Economic - call options | USD | 149 |  | CAD | 201 |  | 2020 |  | Anticipated transactions
Economic - call options | CAD | 87 |  | USD | 60 |  | 2020 |  | Anticipated transactions
Economic - call options | USD | 47 |  | CAD | 65 |  | 2021 |  | Anticipated transactions
Economic - call options | CAD | 68 |  | USD | 47 |  | 2021 |  | Anticipated transactions
Economic - options (1) | USD | 60 |  | CAD | 81 |  | 2020 |  | Anticipated transactions
Economic - options (1) | USD | 120 |  | CAD | 161 |  | 2021 |  | Anticipated transactions
(1) Foreign currency options with a leverage provision and a profit cap limitation. INTEREST RATE EXPOSURES During Q1 2020, we entered into a series of interest rate options to economically hedge the dividend rate resets on $582 million of our preferred shares having varying reset dates in 2021. The fair value of these interest rate options at June 30, 2020 was a net liability of $5 million, recognized in O ther current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the consolidated statements of financial position. A loss of $3 million and $5 million for the three and six months ended June 30, 2020, respectively, relating to these interest rate options is recognized in Other (expense) income in the consolidated income statements. A 1% increase (decrease) in interest rates would result in a decrease (increase) of $31 million ($38 million) in net earnings from continuing operations at June 30, 2020. EQUITY PRICE EXPOSURES We use equity forward contracts on BCE’s common shares to economically hedge the cash flow exposure related to the settlement of equity settled share-based compensation plans and the equity price risk related to a cash-settled share-based payment plan. The fair value of our equity forward contracts at June 30, 2020 was a net liability of $39 million, recognized in Other current assets, Trade payables and other liabilities, Other non-current assets and O ther non-current liabilities in the consolidated statements of financial position. The fair value of our equity forward contracts at December 31, 2019 was an asset of $40 million recognized in O ther current assets and Other non-current assets in the consolidated statements of financial position. A loss of $9 million and $37 million for the three and six months ended June 30, 2020, respectively, relating to these equity forward contracts is recognized in Other (expense) income in the consolidated income statements. A 5% increase (decrease) in the market price of BCE’s common shares at June 30, 2020 would result in a gain (loss) of $40 million recognized in net earnings from continuing operations, with all other variables held constant. COMMODITY PRICE EXPOSURE In Q1 2020, we entered into fuel swaps to economically hedge the purchase cost of fuel in 2020 and 2021. The fair value of our fuel swaps at June 30, 2020 was an asset of $2 million included in O ther current assets and Other non-current assets in the consolidated statements of financial position. A gain of $6 million and $2 million for the three and six months ended June 30, 2020, respectively, is recognized in Other (expense) income in the consolidated income statements. A 25% increase (decrease) in the market price of fuel at June 30, 2020 would result in a gain (loss) of $4 million recognized in net earnings from continuing operations, with all other variables held constant.

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