losses (and reversal of impairment losses) on equity instruments measured at FVOCI are also reported as other changes in fair value. (d) Impairment The Group and the Company assess on a forward looking basis the expected credit losses associated with its debt instruments carried at AC and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. The Group and the Company have the following financial instruments that are subject to the ECL model: (i) Trade receivables (ii) Trade contract assets (iii) Non-trade receivables: • intercompany balances • amounts due from associates/joint ventures • rechargeable job orders (‘RJO’) debtors • sundry deposits for rental spaces • rental receivables • staff loans/advances • investment in unquoted debt securities (iv) Financial guarantee contracts issuedWhile cash and cash equivalents are also subject to the impairment requirements of MFRS 9, the identified impairment loss is immaterial. 45 FINANCIAL INSTRUMENTS (CONTINUED) NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 FINANCIAL STATEMENTS Sec 5 305 Accounting Policy (continued) Financial instruments comprise financial assets and financial 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