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GUARDIAN MEDIA LIMITED AND ITS SUBSIDIARIES ANNUAL REPORT 2021 73GUARDIAN MEDIA LIMITED AND ITS SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2021(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)2. Significant accounting policies (continued)ix. Financial assets and liabilities (continued)Impairment of financial assetsOverview of the ECL principlesThe Group records the allowance for expected credit losses for all trade receivable and other debt financial assets not held at FVPL, in this section all referred to as %u2018financial 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 significant increase in credit risk since origination, in which case, the allowance is based on the 12 months%u2019 expected credit loss (12mECL).The 12mECL is the portion of LTECLs that represent the ECLs that result from default events on a financial 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 financial instrument%u2019s credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument. For trade and other receivables, the Group applies a simplified approach in calculating ECLs as they do not contain a significant financing component. The ECL allowance is based on credit losses expected to arise over the life of the asset (LTECL).