Tucows 2015 Annual Report Download - page 78

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We record provisions for possible uncollectible accounts receivable and contingent liabilities which may arise in
the normal course of business. The allowance for doubtful accounts is calculated by taking into account factors such as our
historical collection and write-off experience, the number of days the customer is past due and the status of the customer's
account with respect to whether or not the customer is continuing to receive service. The contingent liability estimates are
based on management's historical experience and various other assumptions that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about the reported amounts of liabilities and
expenses that are not readily apparent from other sources. Historically, credit losses have been within our expectations and
the reserves we have established have been appropriate. However, we have, on occasion, experienced issues which have
led to accounts receivable not being fully collected. Should these issues occur more frequently, additional provisions may
be required.
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