liabilities as below: (continued) Financial assets (continued) (d) Impairment (continued) ECL represents a probability-weighted estimate of the difference between the present value of the cash flows according to the contract and present value of the cash flows the Group and the Company are expected to receive, over the remaining life of the financial instruments. For financial guarantee contracts, the ECL is the difference between the expected payments to be reimbursed to the holder of the guaranteed debt instrument less any amounts that the Company expects to receive from the holder, the debtor or any other party. The measurement of ECL reflects: (i) An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes; (ii) The time value of money; and (iii) Reasonable and supportable informationthat is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions. For trade receivables, trade contract assets and lease receivables, the Group and the Company apply the MFRS 9 simplified approach, which requires expected lifetime losses to be recognised from initial recognition of the receivables, except for those which are in default or credit impaired are assessed individually. For non-trade receivables, at each reporting date the Group and the Company measure ECL through a loss allowance at an amount equal to 12 months ECL if credit risk on a financial instrument or a group of financial instruments has not increased significantly since initial recognition. The Group and the Company use the three-stage approach for non-trade receivables which reflect their credit risks and how the loss allowances are determined for each of those stages. Summary of the assumptions underpinning the Group’s and the Company’s ECL model for non-trade receivables are as follows: Types of non-trade receivables Stage 1 Low credit risk (12 months ECL Model) Stage 2 Significant increase in credit risk (Lifetime ECL Model)