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when financial asset held at amortised cost is impaired. This determination requires significant judgement. In making this judgement, the Group evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its cost; and the financial health of and short- term business outlook for the investee, including factors such as industry and sector performance, changes in technology and operational and financing cash flow.

Estimates

Expected credit losses are the credit losses that are estimated to occur over the life of the financial instrument. The expected credit loss is determined by evaluating loans and receivables and assessing whether the credit risk has increased since initial recognition. Financial assets at amortised cost are classified as follows:

• Stage 1, where the credit risk has not increased significantly then a loss allowance equal to a 12 month expected credit loss is recognised by (i) reviewing loans with shared risk characteristics and (ii) applying a probability assessment of a loss default within 12 months;
• Stage 2, where the loan is past due and based on past experience the asset is considered to be credit impaired, a loss allowance equal to a lifetime expected credit loss is recognised by (i) reviewing loans with shared risk characteristics and (ii) applying a probability assessment of a loss default;
• Stage 3, where an asset is considered to be credit impaired because of past due status and other events that have a detrimental effect on future cash flows an impairment allowance is recognised.

The allowance for expected credit losses, as disclosed in note 9, is calculated based on information available at the time of preparation. The actual credit losses in future years may be higher or lower.

22. Accounting Standards Issued not yet Adopted

There are new accounting standards that have been issued or amended but have not yet been applied by the Group in these financial statements. The standards that are considered relevant to the Group are as follows: