Home' Trinidad and Tobago Guardian : October 24th 2014 Contents B18
Year ended 30 June
Net income for the year
Adjustment for items not involving cash:
Appreciation cost of units redeemed
Net cash from operating activities before working capital changes
Net change in accounts receivable
Net change in accounts payables
CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES
Net purchase of financial assets available-for-sale
Proceeds from disposal/redemption of financial assets available-for-sale
CASH USED IN INVESTING ACTIVITIES
Subscriptions (net of distribution to unit holders)
CASH PROVIDED BY FINANCING ACTIVITIES
(Decrease)/increase in cash and cash equivalents for the year
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at the end of the year
Cash and cash equivalents
The accompanying notes form an integral part of these financial statements.
(Expressed in Trinidad and Tobago dollars)
The Immortelle Income and Growth Fund
30 June, 2014
1. Description of the Fund
The Immortelle Income and Growth Fund (the Fund) is an open ended Mutual Fund in which units are
issued. It was established by First Citizens Bank Limited under a Trust Deed dated 11 July 2005 in order to
facilitate participation in the domestic, regional and international corporate and government sectors by the
investing public through the purchase of units in the Fund. Operations commenced on 15 September
2005. The Investment Manager of the Fund is First Citizens Asset Management Limited. Under a
Supplemental Trust Deed dated 24 July 2007, First Citizens Trustee Services Limited was appointed Trustee
of the Fund.
Subscriptions to the Fund are made by investors and are based on the net asset value per unit determined
on each business day. Units may be subscribed at a minimum value of TT$500.
Redemptions from the Fund will be at the redemption price less any stamp duty or taxation leviable thereon
on the relevant redemption date. The redemption price will be the Net Asset Value per Unit calculated at
the close of the business day on which the redemption form was submitted.
The Trustee/Custodian applies a redemption charge as follows: -
Not to exceed 2.5% per annum up to 1 year
Not to exceed 1.5% per annum from 1-2 years
Distributions are made annually subsequent to the Fund's financial year. Distributions payable will ordinarily
be reinvested automatically in additional units of the Fund at the issue price at the relevant distribution
date, unless investors request a cash distribution.
(e) Management fees
Management fees are paid to the Trustee and the Distribution Agent, each at a rate of 0.25% per annum
on the average Net Asset Value of the Fund. The Investment Manager is paid up to a maximum of 2% per
annum on the average Net Asset Value of the Fund.
Tax on interest income is withheld on distributions paid to non-resident unit holders at rates applicable to
the country in which the unit holders reside.
2. Summary of Significant Accounting Policies
The principal accounting policies adopted in the preparation of these financial statements are set out below. These
policies have been consistently applied to all years presented, unless otherwise stated.
(a) Basis of preparation
The financial statements of the Fund have been prepared in accordance with International Financial
Reporting Standards (IFRS) under the historical cost convention, as modified by the revaluation of financial
The preparation of financial statements in conformity with IFRS requires the use of certain critical
accounting estimates. It also requires the Trustee to exercise its judgment in the process of applying the
Fund's accounting policies. The areas involving a higher degree of judgment or complexity or areas where
assumptions and estimates are significant to the financial statements are disclosed in Note 3.
(i) Standards, amendment and interpretations which are effective and have been adopted by the Fund
There are no standards, interpretations or amendments to existing standards that are effective for the
first time for the financial year beginning 1 July 2013 that would be expected to have a material
impact on the Fund
(ii) Standards effective after 1 July 2013 that have been early adopted by the Fund
The Fund has not early adopted any new standards, interpretations or amendments
(iii) Standards, amendments and interpretations issued but not yet effective and not early adopted by the
Fund (although relevant to the Fund's operations):
A number of new standards, amendments to standards and interpretations are effective for annual
periods beginning after 1 July 2013, and have not been applied in preparing these financial
statements. These are not expected to have a significant effect on the financial statements of the
Fund with the exception of the following set out below:
IAS 32 Financial instruments: Presentation, on offsetting financial assets and financial liabilities --
Amendment to IAS 32 (effective for annual periods beginning on or after 1 January 2014 and
applicable to the Fund from 1 July 2014). This amendment updates the application guidance in IAS
32, 'Financial instruments: Presentation', to clarify some of the requirements for offsetting financial
assets and financial liabilities on the balance sheet. This amendment is not expected to significantly
impact the financial statements of the Fund.
IAS 36 Impairment of assets -- Amendments to IAS 36 (effective for annual periods beginning on or
after 1 January 2014 and applicable to the Fund from 1 July 2014). These amendments address the
disclosure of information about the recoverable amount of impaired assets if that amount is based on
fair value less costs of disposal. These amendments are not expected to significantly impact the
financial statements of the Fund.
Annual improvements 2012 -- (effective for annual periods beginning on or after 1 July 2014 and
applicable to the Fund from 1 July 2014). These amendments include changes from the 2010-12 cycle
of the annual improvements project that affect seven (7) standards. These improvements are not
expected to significantly impact the financial statements of the Fund
liabilities and contingent assets'; and
Annual improvements 2013 -- (effective for annual periods beginning on or after 1 July 2014 and
applicable to the Fund from 1 July 2014). The amendments include changes from the 2011-2-13 cycle
of the annual improvements project that affect 4 standards. These improvements are not expected to
significantly impact the financial statements of the Fund.
IFRS 9 -- Financial instruments -- classification and measurement -- (effective for annual periods
beginning on or after 1 January 2018 and applicable to the Fund from 1 July 2018). This standard on
classification and measurement of financial assets and financial liabilities will replace IAS 39, 'Financial
instruments: Recognition and measurement'. IFRS 9 has two measurement categories: amortised cost
and fair value. All equity instruments are measured at fair value. A debt instrument is measured at
amortised cost only if the entity is holding it to collect contractual cash flows and the cash flows
represent principal and interest. For liabilities, the standard retains most of the IAS 39 requirements.
These include amortised-cost accounting for most financial liabilities, with bifurcation of embedded
derivatives. The main change is that, in cases where the fair value option is taken for financial
liabilities, the part of a fair value change due to an entity's own credit risk is recorded in other
comprehensive income rather than the income statement, unless this creates an accounting
mismatch. This change will mainly affect financial institutions. While the new standard is expected to
significantly impact the Fund's presentation of fair value changes arising on financial assets
available-for-sale, is not expected to impact the net asset value calculations.
(iv) Standards, amendments and interpretations issued which are not yet effective and not relevant to the
IFRS 10 - Consolidated financial statements, IFRS 12 and IAS 27 for investment entities --
Amendments (effective for annual periods beginning on or after 1 January 2014). These
amendments mean that many funds and similar entities will be exempt from consolidating most of
their subsidiaries. Instead, they will measure them at fair value through profit or loss. The
amendments give an exception to entities that meet an 'investment entity' definition and which
display particular characteristics. Changes have also been made IFRS 12 to introduce disclosures that
an investment entity needs to make.
IAS 39 - Financial instruments: Recognition and measurement, on novation of derivatives and hedge
accounting -- Amendment (effective for annual periods beginning on or after 1 January 2014). These
narrow-scope amendments allow hedge accounting to continue in a situation where a derivative,
which has been designated as a hedging instrument, is novated to effect clearing with a central
counterparty as a result of laws or regulation, if specific conditions are met (in this context, a novation
indicates that parties to a contract agree to replace their original counterparty with a new one). This
relief has been introduced in response to legislative changes across many jurisdictions that would lead
to the widespread novation of over-the-counter derivatives. These legislative changes were prompted
by a G20 commitment to improve transparency and regulatory oversight of over-the-counter
derivatives in an internationally consistent and non-discriminatory way. Similar relief will be included
in IFRS 9, 'Financial instruments'.
(Expressed in Trinidad and Tobago dollars)
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