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51GUARDIAN MEDIA LIMITED AND ITS SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20152. Signifcant accounting policies (continued)viii) Financial instruments (continued)Loans and receivables Loans and receivables are non-derivative fnancial assets with fxed or determinable payments that are not quoted in an active market. After initial measurement, such fnancial assets are subsequently measured at amortised cost using the EIR method, less impairment. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in fnance income in the statement of proft or loss. The losses arising from impairment are recognised in the statement of proft or loss in fnance costs for loans and in cost of sales or other operating expenses for receivables.De%u2013recognition of fnancial assetsThe Group derecognises a fnancial asset only when the contractual rights to the cash fows from the asset expire, or when it transfers the fnancial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred fnancial asset, the Group continues to recognise the fnancial asset and also recognises a collateralised borrowing for the proceeds received.Impairment of fnancial assetsThe amount of the impairment loss recognised is the difference between the asset%u2019s carrying amount and the present value of estimated future cash fows refecting the amount of collateral and guarantee, discounted at the fnancial asset%u2019s original effective interest rate.(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)