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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)Impairment of fnancial assets (Policy applicable from 1 January 2018)Overview of the ECL principlesAs described in Note 2 (iii), the adoption of IFRS 9 has fundamentally changed the Group%u2019s trade receivable impairment method by replacing IAS 39%u2019s incurred loss approach with a forwardlooking ECL approach. From 1 January 2018, the Group has been recording the allowance for expected credit losses for all trade receivables and other debt fnancial assets not held at FVPL, in this section all referred to as %u2018fnancial instruments%u2019. Equity instruments are not subject to impairment under IFRS 9.The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss or LTECL), unless there has been no signifcant increase in credit risk since origination, in which case, the allowance is based on the 12 months%u2019 expected credit loss (12mECL). The Group%u2019s policies for determining if there has been a signifcant increase in credit risk are set out in Note 25.The 12mECL is the portion of LTECLs that represent the ECLs that result from default events on a fnancial instrument that are possible within the 12 months after the reporting date.The Group has established a policy to perform an assessment, at the end of each reporting period, of whether a fnancial instrument%u2019s credit risk has increased signifcantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the fnancial instrument. For trade and other receivables, the Group applies a simplifed approach in calculating ECLs. FINANCIAL REPORT 59