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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)2. Signifcant accounting policies (continued)viii) Financial assets and liabilities (continued)Reclassifcation of fnancial assets and liabilities (continued)Pass-through arrangements are transactions whereby the Group retains the contractual rights to receive the cash fows of a fnancial asset (the %u2018original asset%u2019), but assumes a contractual obligation to pay those cash fows to one or more entities (the %u2018eventual recipients%u2019), when all of the following three conditions are met:%u2022 The Group has no obligation to pay amounts to the eventual recipients unless it has collected equivalent amounts from the original asset, excluding short-term advances with the right to full recovery of the amount lent plus accrued interest at market rates%u2022 The Group cannot sell or pledge the original asset other than as security to the eventual recipients%u2022 The Group has to remit any cash fows it collects on behalf of the eventual recipients without material delay. In addition, the Group is not entitled to reinvest such cash fows, except for investments in cash or cash equivalents including interest earned, during the period between the collection date and the date of required remittance to the eventual recipients. A transfer only qualifes for derecognition if either:%u2022 The Group has transferred substantially all the risks and rewards of the asset; or%u2022 The Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the assetThe Group considers control to be transferred if and only if, the transferee has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without imposing additional restrictions on the transfer.FINANCIAL REPORT 57