XML 33 R26.htm IDEA: XBRL DOCUMENT
v3.21.2

ALLOWANCE FOR EXPECTED CREDIT LOSSES | 6 Months Ended
--- | ---
Jun. 30, 2021
Credit Loss [Abstract] |
ALLOWANCE FOR EXPECTED CREDIT LOSSES | ALLOWANCE FOR EXPECTED CREDIT LOSSESASU 2016-13 introduces a new credit loss methodology, requiring earlier recognition of potential credit losses. T he Company adopted ASU 2016-13 using the modified retrospective method from January 1, 2020. The provision is based on an assessment of the impact of current and expected future conditions, and at June 30, 2021 this is inclusive of the Company's estimate of the potential effect of the COVID-19 pandemic on credit losses. The duration and severity of COVID-19 and continued market volatility is highly uncertain and, as such, the impact on expected credit losses is subject to significant judgment and may cause variability in the Company’s allowance for credit losses in future periods. Movements in the allowance for expected credit losses may result in gains as well as losses recorded in income as changes occur in the balances of our financial assets and the risk profiles of our counterparties. The following table presents the impact of the allowance for expected credit losses on the Company's balance sheet line items for the six months ended June 30, 2021.
(in thousands of $) | Trade receivables | Other receivables | Related Party receivables | Investment in sales-type, direct financing leases and leaseback assets | Other long-term assets | Total
Balance at December 31, 2020 | 33 |  | 881 |  | 1,973 |  | 4,390 |  | 1,894 |  | 9,171 |
Reclassification to 'vessels and equipment, net' | — |  | — |  | — |  | (2,030) |  | — |  | (2,030) |
Change in allowance recorded in 'other financial items' | 40 |  | (68) |  | 680 |  | (1,368) |  | — |  | (716) |
Balance at June 30, 2021 | 73 |  | 813 |  | 2,653 |  | 992 |  | 1,894 |  | 6,425 |
The impact of the allowance for expected credit losses on the associates is disclosed in Note 10: Investment in associated companies. In March 2021, the drilling unit held by a wholly owned subsidiary of the Company (SFL Linus) was reclassified from direct financing lease to operating lease and has been presented within Vessels and Equipment. A previously recognized credit loss allowance of $2.0 million was derecognized as a result of the reclassification. Refer to Note 6: Vessels and Equipment, net and Note 9: Investment in sales-type leases, direct financing leases and leaseback assets.

X
- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI http://asc.fasb.org/topic&trid=2196771 + Details
Name: | us-gaap_AllowanceForCreditLossesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_CreditLossAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration