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2. Signifcant accounting policies (continued)iii) Changes in accounting policies and disclosures (continued)New and amended standards and interpretations (continued)IFRS 9, %u2018Financial Instruments%u2019IFRS 9, %u2018Financial Instruments%u2019 replaces IAS 39, %u2018Financial Instruments: Recognition and Measurement%u2019 for annual periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for fnancial instruments: classifcation and measurement; impairment; and hedge accounting.%u2022 Phase 1 %u2013 Classifcation and measurement of fnancial instruments, was early adopted by the Group in its consolidated fnancial statements for the year ended 31 December 2011. The exemption given in the transitional provision for early application was applied and hence the Group did not restate the comparative information in the year of application.The Group applied Phase II - Impairment, of IFRS 9 prospectively, with an initial application date of 1 January 2018. The Group has not restated the comparative information, which continues to be reported under the relevant aspects of IAS 39. Diferences arising from the adoption of IFRS 9 have been recognised directly in retained earnings and other components of equity. The adoption of Phase II has fundamentally changed the Group%u2019s accounting for trade receivable impairments by replacing IAS 39%u2019s incurred loss approach with a forward-looking expected credit loss (ECL) approach. IFRS 9 requires the Group to record an allowance for ECLs for all trade receivables and other debt fnancial assets not held at FVPL. The Group has adopted the simplifed approach for its trade receivable portfolio and allowance is based on the ECLs associated with the probability of default over the life of the asset. Upon adoption of IFRS 9 the Group recognised additional impairment on the Group%u2019s trade receivable of $488 thousand, which resulted in a decrease in retained earnings of $488 thousand as at 1 January 2018. Phase III - Hedge accounting, of IFRS 9 had no impact on the Group%u2019s fnancial statements.GUARDIAN MEDIA LIMITED AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2018(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)44 GUARDIAN MEDIA LIMITED AND ITS SUBSIDIARIES ANNUAL REPORT 2018