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

12 Months Ended

Dec. 31, 2022

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 December 31, 2022			As of December 31, 2021
	ThUS$			ThUS$
Trade accounts receivable		952,625			765,050
Other accounts receivable		135,459			209,925
Total trade and other accounts receivable		1,088,084			974,975
Less: Expected credit loss		(67,232	)		(81,004	)
Total net trade and accounts receivable		1,020,852			893,971
Less: non-current portion – accounts receivable		(12,743	)		(12,201	)
Trade and other accounts receivable, current		1,008,109			881,770

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, 2022								As December 31, 2021
Portfolio maturity	Expected loss rate (1)			Gross book value (2)		Impairment loss Provision			Expected loss rate (1)			Gross book value (2)		Impairment loss Provision
	%			ThUS$		ThUS$			%			ThUS$		ThUS$
Up to date		1	%		745,334		(8,749	)		2	%		570,307		(8,806	)
From 1 to 90 days		3	%		142,780		(3,758	)		10	%		116,613		(11,840	)
From 91 to 180 days		15	%		8,622		(1,297	)		31	%		11,376		(3,567	)
From 181 to 360 days		79	%		8,269		(6,565	)		72	%		3,864		(2,766	)
more of 360 days		98	%		47,620		(46,863	)		86	%		62,890		(54,025	)
Total					952,625		(67,232	)					765,050		(81,004	)

(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 Trade and other accounts receivable and non-current accounts receivable are as follow:

Currency	As of December 31, 2022		As of December 31, 2021
	ThUS$		ThUS$
Argentine Peso		25,559		7,282
Brazilian Real		389,451		352,027
Chilean Peso		36,626		53,488
Colombian Peso		6,779		5,657
Euro		12,506		24,548
US Dollar		510,916		429,091
Korean Won		6,337		844
Mexican Peso		1,536		2,428
Australian Dollar		9,808		62
Pound Sterling		9,149		13,105
Uruguayan Peso (New)		45		860
Swiss Franc		2,621		361
Japanese Yen		2,802		106
Swedish crown		223		490
Other Currencies		6,494		3,622
Total		1,020,852		893,971

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

	Opening balance			Write-offs		(Increase) Decrease			Closing balance
Periods	ThUS$			ThUS$		ThUS$			ThUS$
From January 1 to December 31, 2020		(100,402	)		30,754		(52,545	)		(122,193	)
From January 1 to December 31, 2021		(122,193	)		26,435		14,754			(81,004	)
From January 1 to December 31, 2022		(81,004	)		5,966		7,806			(67,232	)

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 significant, and the policy is to analyze case by case to classify them according to the existence of risk, determining they need to be reclassified 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, 2022							As of December 31, 2021
	Gross exposure according to balance		Gross impaired exposure			Exposure net of risk concentrations		Gross exposure according to balance		Gross Impaired exposure			Exposure net of risk concentrations
	ThUS$		ThUS$			ThUS$		ThUS$		ThUS$			ThUS$
Trade accounts receivable		952,625		(67,232	)		885,393		765,050		(81,004	)		684,046
Other accounts receivable		135,459		-			135,459		209,925		-			209,925

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.