Strategic report Governance Financial statements Other information SECTION 5: OTHER NOTES NOTES TO THE GROUP FINANCIAL STATEMENTS OTHER CONTINUED 5.7 Financial instruments continued The Group applies the simplified approach to providing for expected credit losses for receivables, allowing the use of lifetime expected loss provisions to be made. To determine expected credit losses financial assets have been grouped based on shared credit risk characteristics, being the number of days past due. 0-3 months 3-6 months 6-12 months Over 12 months Not due past due past due past due past due Total £m £m £m £m £m £m At 30 June 2021 Trade and other receivables: Trade receivables 736.5 3.4 1.7 1.5 1.4 744.5 Other receivables 4.1 – – – – 4.1 Accrued income 46.7 – – – – 46.7 Term deposits 60.0 – – – – 60.0 847.3 3.4 1.7 1.5 1.4 855.3 Investments held at fair value 0.9 – – – – 0.9 848.2 3.4 1.7 1.5 1.4 856.2 At 30 June 2020 Trade and other receivables: Trade receivables 656.6 2.6 2.1 1.3 1.2 663.8 Other receivables 2.6 – – – – 2.6 Accrued income 64.6 – – – – 64.6 Term deposits 230.0 – – – – 230.0 Derivative assets 0.1 – – – – 0.1 953.9 2.6 2.1 1.3 1.2 961.1 Investments held at fair value 0.6 – – – – 0.6 954.5 2.6 2.1 1.3 1.2 961.7 During the year, the Group has provided £nil (2020: £nil) in respect of receivables that are not expected • Financial institutions to be recovered. At the end of the reporting period, £0.1 million (2020: £0.1 million) of receivables are In respect of trade receivables, £225.7 million (2020: £263.3 million) is due from financial institutions impaired, all of which have been provided for in full. As a result, the carrying amount of impaired regulated by the FCA in the course of settlement as a result of daily trading and £5.4 million (2020: receivables is £nil (2020: £nil). £5.2 million) relates to revenue items due from financial institutions regulated by the FCA. The expected loss in relation to receivables is considered to be immaterial, due to the short-term • Individuals nature of the receivable balance and the small value of assets that are outstanding for long periods, In respect of trade receivables, the balance is related to amounts due from individual clients in the without any potential recourse allowing the Group to reclaim the balance. The majority of balances course of settlement as a result of daily trading. are related to underlying investments that the Group can sell to reclaim losses. The table on the following page shows the credit quality of financial assets that are neither past due nor impaired using the following counterparty grading: 170 Hargreaves Lansdown Report and Financial Statements 2021