41 (Expressed in Trinidad and Tobago Dollars) NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS 30th June 2017 4 Summary of significant accounting policies (continued) f. Impairment of financial assets (continued) (i) Losses on loans and advances NIBTT reviews its problem loans and advances at each reporting date to assess whether an allowance for impairment should be recorded in the audited statement of comprehensive income. In particular, judgement by management is required in the estimation of the amount and timing of future cash flows when determining the level of allowance required. Such estimates are based on assumptions about a number of factors and actual results may differ, resulting in future changes to the allowance. In addition to specific allowances against individually significant loans and advances, NIBTT also makes a collective impairment allowance where applicable, against exposures which, although not specifically identified as requiring a specific allowance, have a greater risk of default than when originally granted. This takes into consideration factors such as any deterioration in country risk, industry, and technological obsolescence, as well as identified structural weaknesses or deterioration in cash flows. g. Investment properties Investment properties are properties held by NIBTT to earn rental income or for capital appreciation or both. Property held for a currently undetermined future use is regarded as investment properties as such property is regarded as held for capital appreciation. Some properties comprise a portion that is held to earn rentals or for capital appreciation and another portion that is held for use in the production or supply of goods or services or for administrative purposes. If these portions can be sold separately or leased out separately under a finance lease, the entity accounts for the portions separately as investment properties or property plant and equipment (Note 4 h.) respectively. If the portions cannot be sold separately, the property is investment property only if an insignificant portion is held for use in the production or supply of goods or services or for administrative purposes. Otherwise it is considered property plant and equipment (Note 4 h.) Investment properties are initially measured at cost. After initial recognition, investment properties are measured at fair value based on valuations conducted by an independent professional valuator. Gains and losses arising from the change in fair value are included in the statement of comprehensive income. The valuators have adopted standard valuation methods and assumed good title, vacant possession and no unduly restrictive covenants or onerous or unusual outgoings running with the land. h. Property, plant and equipment Propertyheldforfutureuseasowner-occupiedproperty,propertyheldforfuturedevelopment and subsequent use as owner-occupied property, property occupied by employees and owner-occupied property awaiting disposal are deemed to be property, plant and equipment.