All financial instruments are carried at fair value or amounts that approximate fair value, except for the non-current portion of fixed rate receivables, payables and interest-bearing borrowings, which are carried at amortised cost. The carrying amounts for investments, cash, cash equivalents as well as the current portion of receivables, payables and interest-bearing borrowings approximate fair value due to the short-term nature of these instruments. The fair values have been determined using available market information and discounted cash flows.

For all of the above mentioned financial asset categories the carrying value approximates the fair value with the exception the Angolan Bonds included within long-term financial asset and trade and other receivables where the fair value as at 30 September 2020 exceeds the carrying value by R22 million (30 September 2019: R30 million). note that the Angolan Bonds are measured at amortised cost, however, had they been measured at fair value they would represent a level 2 financial instruments valued in line with comparable hedging instruments.

For all of the abovementioned categories the carrying value approximates the fair value with the exception of non-current interest bearing liabilities where the fair value as at 30 September 2020 has been calculated as R95 million (2019: R33 million).

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable.

Barloworld's treasury follows a centralised cash management process, including cash management systems across bank accounts in South Africa to minimise risk and related interest costs. Barloworld's international cash management is managed by the treasury departments in the respective businesses.

iii) Other price risk

The Group is exposed to price risk arising out of the following:

Barloworld share price

The Group has a liability to option holders in terms of the long term share based payments (refer note 35).

Barloworld share price sensitivity analysis

Impact of a 10% increase in the Barloworld share price as at 30 September

c. Credit risk

Credit risk exposure

Each of the Group's operating segments has credit terms appropriate for their industry. Credit risk on vehicles supplied to external dealerships is generally secured by a dealer floorplan with a bank, who settle within the credit terms. The average credit period on these sales ranges from 30 to 90 days. When dealing with sales to external retail, construction or mining customers, full settlement or confirmation of financing from a respected financial institution is required before delivery. These measures minimise the credit risk. Credit risk exposures to customers for parts, services, maintenance and repair contracts, vehicle rental and fleet leasing and are managed by monthly review of trade receivables ageing. The risk is mitigated by stringent background checks and credit limits for all customers, continuous review of credit limits, as well as legal action against defaulting customers. The average credit period on these sales is 30 days, however, extended credit terms may be negotiated during the account application process. It is Group policy to deposit cash with major banks and financial institutions with strong credit ratings.

The carrying amount of the financial assets represents the Group's maximum exposure to credit risk without taking into consideration any collateral provided.

No credit guarantee insurance is held against the carrying value of trade and other receivables within the Group, therefore expected credit losses are considered across all operating debtors.

The outbreak of COVID-19, as well as the related economic lockdowns has negatively impacted the cash flow generating ability of many entities which increased credit risk in parts and service sales which are considered riskier and appropriate and adequate expected credit losses were raised. Due to the short-term nature of the credit terms given, the expected credit loss allowance can be assessed upfront and on an ongoing basis with little change arising from changes in general economic circumstances

Forward-looking information utilised in the expected credit loss models:

The expected credit loss allowance has increased from 11.9% to 15.6% taking into consideration the worsening of the factors disclosed above. There has been no material change in the estimation techniques applied in determining the ECLs from the prior year. The gross receivables, disclosed below, are inclusive of VAT applicable to various jurisdictions and the allowance for credit losses excludes VAT.

The following table details the risk profile of trade receivables based on the Group's provision matrix. As the Group's historical credit loss experience shows significantly different loss patterns for the different customer segments, the provision for loss allowance is further distinguished between the Group's different operation.

d. Liquidity risk

Liquidity risk arises when the Group cannot meet its contractual cash outflows as they fall due and payable. The Group manages liquidity risk by monitoring forecast cash flows, maintaining a balance between long-term and short-term debt and ensuring that adequate unutilised borrowing facilities are maintained. Unutilised bank facilities amounted to R15.7 billion (2019: R10.5 billion). There has been no change to this approach during the current year .

Maturity profile of financial liabilities

The maturity profile of the financial instruments is summarised as follows (based on contractual undiscounted cash flows):

During 2018, the Barloworld Equipment division entered into a Risk Share Agreement with Caterpillar Financial Corporation Financeira, S.A., E.F.C. - Sucursal em Portugal and Barloworld Equipment UK Limited. The Risk Share Agreement only relates to certain agreed upon customer risk profiles and relates to exposure at default less any recoveries. As at 30 September 2020, the maximum exposure of this guarantee was estimated to be R106 million (2019: R294.2 million) representing 25% of the capital balance outstanding

During 2018, the Barloworld Equipment division entered into Risk Share Agreement with Caterpillar Financial Services South Africa Proprietary Limited. The Risk Share Agreement only relates to certain agreed upon customer risk profiles and relates to exposure at default less any recoveries. As at 30 September 2020, the gross maximum exposure of this guarantee was estimated to be R148 million (30 Sep 2019: R116.2 million) representing 25% of the capital balance outstanding.

During 2018, the Vostochnaya Technica Equipment division entered into a Risk Share Agreement with Caterpillar Financial LLC. The Risk Share Agreement only relates to certain agreed upon customer risk profiles and relates to exposure at default less any recoveries. As at 30 September 2020, the maximum exposure of this guarantee was estimated to be R21 million (2019: R48 million) representing 40% - 60% of the capital balance outstanding.

Barloworld also provides certain guarantees on behalf of NMI, Maponya, Bartrac and BHBW of which non-performance by these associates and joint ventures will result in contractual cash flows to be made by Barloworld which has been included in abovementioned maturity analysis.

As these risk share agreements relate to a contractual payment in the event of default they are accounted for as financial instruments (financial guarantee contracts)