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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)3. Signifcant accounting estimates, assumptions and judgments (continued)Provision for expected credit losses of trade receivablesThe Group uses a provision matrix to calculate ECLs for trade receivables. The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography, product type, customer type and rating). The provision matrix is initially based on the Group%u2019s historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a signifcant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Group%u2019s historical credit loss experience and forecast of economic conditions may also not be representative of customer%u2019s actual default in the future. The information about the ECLs on the Group%u2019s trade receivables is disclosed in Note 10.Provision for expected credit losses of other fnancial assetsThe Group%u2019s ECL calculations are outputs of complex models with a number of underlying assumptions regarding the choice of variable inputs and their interdependencies. Elements of the ECL models that are considered accounting judgements and estimates include:%u2022 The Group%u2019s internal credit grading model, which assigns PDs to the individual grades%u2022 The Group%u2019s criteria for assessing if there has been a signifcant increase in credit risk and so allowances for fnancial assets should be measured on a LTECL basis and qualitative assessment.%u2022 The segmentation of fnancial assets when their ECL is assessed on a collective basis.%u2022 Development of ECL models, including the various formulas and the choice of inputs.%u2022 Determination of associations between macroeconomic scenarios and, economic inputs, such as unemployment levels and collateral values, and the efect on PDs, EADs and LGDs.%u2022 Selection of forward-looking macroeconomic scenarios and their probability weightings, to derive the economic inputs into the ECL models.Provision for expected credit losses of other fnancial assetsIt has been the Group%u2019s policy to regularly review its models in the context of actual loss experience and adjust when necessary.FINANCIAL REPORT 75