Home' Trinidad and Tobago Guardian : March 26th 2015 Contents A48
Guardian www.guardian.co.tt Thursday, March 26, 2015
National Infrastructure Development Company Limited
The company enters into various contracts with third parties for the execution of projects. All
costs incurred in relation to these contracts are recoverable from The Government of The
Republic of Trinidad and Tobago.
The principal accounting policies applied in the preparation of these financial statements are
set out below. These policies have been consistently applied to all the years presented, unless
The financial statements of the company have been prepared in accordance with
International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for
SMEs). They have been prepared under the historical cost convention.
The preparation of financial statements in conformity with IFRS for SMEs requires the use
of certain critical accounting estimates. It also requires management to exercise its
judgment in the process of applying the company's accounting policies. Areas involving
a higher degree of judgment due to their complexity, or areas where assumptions and
estimations are significant to the financial statements are disclosed in note 3.
The company's operations are heavily dependent on management fees, grants and
financing guarantees from the GORTT. These financial statements have been prepared
on a going concern basis on the assumption that funding in the form of management fees
and grants will be made available to the company by GORTT and the company will
continue to receive adequate funds to finance losses and future operations.
Items included in the financial statements of the company are measured using the
currency that best reflects the economic substance of the underlying events and the
circumstances relevant to the company (''the functional currency"). These financial
statements are presented in Trinidad and Tobago dollars.
Foreign currency transactions are translated into the functional currency using the
exchange rates prevailing at the dates of the transactions. Foreign exchange gains and
losses resulting from the settlement of such transactions and from the translation of
monetary assets and liabilities denominated in foreign currencies are recognised in the
statement of profit or loss.
Cash and cash equivalents include cash in hand, deposits held at call with banks, and
other short-term highly liquid investments with original maturities of three months or less
at the time of purchase, which are subject to an insignificant risk of changes in value.
Net realizable value is the estimated selling price in the ordinary course of business, less
applicable variable selling, marketing and distribution expenses.
Property, plant and equipment is recorded at cost less accumulated depreciation at rates
which are expected to apportion the cost of the assets on a systematic basis over their
estimated useful lives.
Property, plant and equipment are depreciated on the straight-line basis over the
estimated useful lives of the assets as follows:
Furniture and fixtures
Water taxi assets:
Repairs and renovations are normally expensed as they are incurred. Expenses are
added to assets only if the amounts involved are substantial and one or more of the
following conditions is satisfied: the original useful life of the relevant asset is prolonged,
its production capacity is increased, the quality of its output is enhanced materially or
production costs are reduced considerably.
The gain or loss arising on the disposal or retirement of an item of property, plant and
equipment is determined as the difference between the sales proceeds and the carrying
amount of the asset and is recognised in profit or loss.
The carrying amount of property, plant and equipment is reviewed whenever events or
changes in circumstances indicate that impairment may have occurred.
TIntangible assets acquired separately are reported at cost less accumulated amortisation
and impairment losses. Amortisation is charged on a straight line basis utilising rates,
which are sufficient to write off the assets over their estimated useful lives. The estimated
useful life and amortisation method are reviewed annually, with the effect of any changes
in estimate being accounted for on a prospective basis. The rate utilised is 25%.
Expenditure on research activities is recognised as an expense in the period in which it
The amount initially recognised for internally-generated intangible assets is the sum of the
expenditure incurred from the date when the intangible asset first meets the recognition
criteria listed above. Where no internally-generated intangible asset can be recognised,
development expenditure is recognised in the statement of profit or loss in the period in
which it is incurred.
Subsequent to initial recognition, internally-generated intangible assets are reported at
cost less accumulated amortisation and accumulated impairment losses, on the same
basis as intangible assets that are acquired separately.
Income and expenditure transactions are accounted for on the accrual basis.
Revenue comprises the fair value of the consideration received or receivable for the
services carried out in the ordinary course of the company's activities. Revenue is
shown net of rebates and discounts.
The company recognises revenue when the amount of revenue can be reliably
measured, it is probable that future economic benefits will flow to the entity and any
other specific criteria have been met for each of the company's activities.
Revenue is recognised at the time that work performed is certified and this is done on
an accrual basis.
Revenue is recognised upon sale of tender package.
Revenue is recognised as interest accrues.
The company receives Government Grants for the water taxi operations in two (2) forms
i.) As an operational grant to meet any shortfall created by the excess of operating
expenditure over ticketing income; and
ii.) As a capital grant to meet the total capital costs incurred in the acquisition of
capital items, including the cost of borrowing where a loan is secured for their
These are recognised in the statement of profit or loss.
Borrowings are initially measured at transaction price (that is the present value of cash
payable to the lender, including transactions costs). Borrowings are subsequently
stated at amortised cost. Interest expense is recognized on the basis of the effective
interest rate method and is included in finance costs.
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