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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)When the Group has neither transferred nor retained substantially all the risks and rewards and has retained control of the asset, the asset continues to be recognised only to the extent of the Group%u2019s continuing involvement, in which case, the Group also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that refects the rights and obligations that the Group has retained.Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration the Group could be required to pay.If continuing involvement takes the form of a written or purchased option (or both) on the transferred asset, the continuing involvement is measured at the value the Group would be required to pay upon repurchase. In the case of a written put option on an asset that is measured at fair value, the extent of the entity%u2019s continuing involvement is limited to the lower of the fair value of the transferred asset and the option exercise price.Financial liabilitiesA fnancial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. Where an existing fnancial liability is replaced by another from the same lender on substantially diferent terms, or the terms of an existing liability are substantially modifed, such an exchange or modifcation is treated as a derecognition of the original liability and the recognition of a new liability. The diference between the carrying value of the original fnancial liability and the consideration paid is recognised in proft or loss.58 GUARDIAN MEDIA LIMITED AND ITS SUBSIDIARIES ANNUAL REPORT 2018