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TRADE AND OTHER ACCOUNTS RECEIVABLE CURRENT, AND NON- CURRENT ACCOUNTS RECEIVABLE
 12 Months Ended
Dec. 31, 2020
TRADE AND OTHER ACCOUNTS RECEIVABLE CURRENT, AND NON- CURRENT ACCOUNTS RECEIVABLE [Abstract]  
TRADE AND OTHER ACCOUNTS RECEIVABLE CURRENT, AND NON- CURRENT ACCOUNTS RECEIVABLE

NOTE 8 - TRADE AND OTHER ACCOUNTS RECEIVABLE CURRENT, AND NON- CURRENT ACCOUNTS RECEIVABLE


   As of   As of 
   December 31,   December 31, 
   2020   2019 
   ThUS$   ThUS$ 
Trade accounts receivable   532,106    1,073,599 
Other accounts receivable   194,454    275,876 
Total trade and other accounts receivable   726,560    1,349,475 
Less: Expected credit loss   (122,193)   (100,402)
Total net trade and  accounts receivable   604,367    1,249,073 
Less: non-current portion – accounts receivable   (4,986)   (4,725)
Trade and other accounts receivable, current   599,381    1,244,348 

The fair value of trade and other accounts receivable does not differ significantly from the book value.


To determine the expected credit losses, the Company groups accounts receivable for passenger and cargo transportation; depending on the characteristics of shared credit risk and maturity.


   As of December 31, 2020   As December 31, 2019 
   Expected   Gross book   Impairment loss   Expected   Gross book   Impairment loss 
Portfolio maturity  loss rate (1)   value (2)   Provision   loss rate (1)   value (2)   Provision 
   %   ThUS$   ThUS$   %   ThUS$   ThUS$ 
Up to date   4%   302,079    (11,112)   2%   875,889    (16,433)
From 1 to 90 days   4%   103,615    (4,049)   8%   56,537    (4,253)
From 91 to 180 days   66%   15,989    (10,501)   28%   16,922    (4,747)
From 181 to 360 days   80%   40,621    (32,627)   39%   47,865    (18,459)
more of 360 days   92%   69,802    (63,904)   74%   76,386    (56,510)
Total   23%   532,106    (122,193)   9%   1,073,599    (100,402)

(1) Corresponds to the consolidated expected rate of accounts receivable.


(2) The gross book value represents the maximum credit risk value of trade accounts receivables.


Currency balances composition of the Trade and other accounts receivable and non-current accounts receivable are as follow:


   As of   As of 
   December 31,   December 31, 
Currency  2020   2019 
   ThUS$   ThUS$ 
         
Argentine Peso   6,517    47,079 
Brazilian Real   221,952    537,224 
Chilean Peso   44,737    131,543 
Colombian Peso   1,292    2,288 
Euro   24,370    32,711 
US Dollar   292,125    436,774 
Korean Won   79    8,172 
Mexican Peso   4,624    6,093 
Australian Dollar   49    20,964 
Pound Sterling   5,647    7,428 
South African Rand   -    2,982 
Uruguayan Peso (New)   792    1,375 
Thai Bht   -    1,559 
Swiss Franc   754    535 
Russian Ruble   -    896 
Japanese Yen   77    1,222 
Swedish crown   129    2,012 
New Zealand Dollar   -    1,148 
Costa Rican Colon   -    1,390 
Other Currencies   1,223    5,678 
Total   604,367    1,249,073 

The movements of the provision for impairment losses of the Trade Debtors and other accounts receivable are as follows:


       Adoption             
   Opening   adjustment       (Increase)   Closing 
   balance   IFRS 9 (*)   Write-offs   Decrease   balance 
Periods  ThUS$   ThUS$   ThUS$   ThUS$   ThUS$ 
From January 1 to December 31, 2018   (87,909)   (10,524)   8,620    (8,178)   (97,991)
From January 1 to December 31, 2019   (97,991)   -    12,569    (14,980)   (100,402)
From January 1 to December 31, 2020   (100,402)   -    30,754    (52,545)   (122,193)

Once pre-judicial and judicial collection efforts are exhausted, the assets are written off against the allowance. The Company only uses the allowance method rather than direct write-off, to ensure control.


The historical and current renegotiations are not very relevant, and the policy is to analyze case by case to classify them according to the existence of risk, determining if their reclassification corresponds to pre-judicial collection accounts.


The maximum credit-risk exposure at the date of presentation of the information is the fair value of each one of the categories of accounts receivable indicated above.


   As of December 31, 2020   As of December 31, 2019 
   Gross exposure   Gross   Exposure net   Gross exposure   Gross   Exposure net 
   according to   impaired   of risk   according to   Impaired   of risk 
   balance   exposure   concentrations   balance   exposure   concentrations 
   ThUS$   ThUS$   ThUS$   ThUS$   ThUS$   ThUS$ 
Trade accounts receivable   532,106    (122,193)   409,913    1,073,599    (100,402)   973,197 
Other accounts receivable   194,454    -    194,454    275,876    -    275,876 

There are no relevant guarantees covering credit risk and these are valued when they are settled; no materially significant direct guarantees exist. Existing guarantees, if appropriate, are made through IATA.