Home' Trinidad and Tobago Guardian : October 21st 2015 Contents B17
The Paria Fund
30 June 2015
1. Description of the Fund
The following brief description of The Paria Fund (the "Fund") is provided for general information
purposes only. Reference should be made to the Trust Deed and Prospectus of the Fund for more
The Paria Fund is an open-ended mutual fund denominated in United States ("US") dollars and is
registered and regulated under the provisions of the Securities Industry Act, 1995 in Trinidad and Tobago.
An open-ended fund is one in which the number of units which may be issued in the fund is unlimited.
The Fund was established by the original trustee, First Citizens Bank Limited, under a Trust Deed dated
July 26th 2004, in order to provide investors with high current income through investment in a diversified
portfolio of high quality debt instruments. In July 2007, First Citizens Trustee Services Limited (the
"Trustee") was appointed Trustee to replace the original trustee who retired.
Subscriptions into the Fund are made by investors at a price per unit (the "subscription price") based
on the net asset value per unit of US$10 each. Units may be subscribed at an initial minimum value of
US$100 and in multiples of US$25 each thereafter.
The net profits of the Fund are calculated and accrued to the investor daily and distributed monthly.
Investors have the option to either receive a cash distribution, or to reinvest income distributions into
units at the prevailing subscription price as at the date of distribution.
Units are redeemed without charge at a price per unit (bid price) based on the net asset value per unit at
the date of receipt of the request for redemption. The Trustee seeks to maintain as far as is reasonably
possible a bid price of US$10 per unit. Units may be redeemed in cash up to a limit of US$50,000 or one
percent of the net asset value of the Fund, whichever is lower, during any sixty day period for any one
2. Summary of Significant Accounting Policies
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 otherwise stated.
2.1 Basis of preparation
The Fund's financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS) and are presented in United States (US) dollars. The financial statements
have been prepared under the historical cost convention, as modified by the revaluation of
available-for-sale financial assets.
(a) Use of estimates
The preparation of these financial statements in conformity with International Financial
Reporting Standards requires the use of estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of income and expenses during the
reporting period. Although these estimates are based on the Trustee's best knowledge of
current events and actions, actual results may differ from those estimates. 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.
(b) New and amended standards adopted by the Fund
There are no IFRS or IFRIC interpretations that are effective for the first time for the financial
year beginning on or after July 1, 2014 that was adopted and had a material impact on the
(c) New standards, amendments and interpretations issued but not effective for the financial
year beginning July 1, 2015 and not early adopted
The following new standards, interpretations and amendments, which have not been applied
in these financial statements, will or may have an effect on the Fund's future financial
IFRS 9, 'Financial instruments' -- This new standard introduces new requirements for the
classification, measurement and recognition of financial assets and financial liabilities and
replaces parts of IAS 39. The standard is tentatively effective for annual periods beginning
on or after January 1, 2018 with early adoption permitted. IFRS 9 is required to be applied
retrospectively. IFRS 9 uses business model and contractual cash flow characteristics to
determine whether a financial asset is measured at amortised cost or fair value, replacing the
four category classification in IAS 39. The determination is made at initial recognition. The
approach is also based on how an entity manages its financial instruments (its business model)
and the contractual cash flow characteristics of the financial assets. For financial liabilities, the
standard retains most of the IAS 39 requirements.
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. The Fund is yet to assess IFRS 9's full impact and intends to adopt IFRS 9 no later
than the accounting period beginning on or after January 1, 2018.
Other standards, amendments and interpretations to existing standards in issue but not yet
effective are not considered to be relevant to the Fund and have not been disclosed.
(d) Standards and amendments to published standards early adopted by the Fund
The Fund did not early adopt any new, revised or amended standards.
2.2 Foreign currency
(a) Functional and presentational currency
The accounting records as well as the financial statements of the Fund are maintained in
United States ("US") dollars. US dollars is the functional and reporting currency of the Fund
and subscriptions and redemptions are performed in US dollars. The Trustee considers the US
dollar to be the currency that most faithfully represents the economic effects of the underlying
transactions, events and conditions.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions. Foreign currency assets and liabilities are
translated into the functional currency using the exchange rate prevailing at the statement of
financial position date.
Foreign exchange gains and losses arising from translation of financial assets and liabilities are
included in the statement of comprehensive income.
For the year ended
CASH FLOWS FROM OPERATING ACTIVITIES
Net investment income for the year
Adjustments to reconcile net investment income for the
year to net cash used in operating activities:
Purchase of available-for-sale financial assets
Proceeds from the sale and maturity
of available-for-sale financial assets
Realised loss on disposal of
available-for-sale financial assets
Changes in working capital:
Increase in interest receivable
Increase in other receivable
Decrease/(increase) in due from related party
Increase/(decrease) in due to related party
(Decrease)/increase in accrued expenses and other payables
Net cash used in operating activities
CASH FLOWS FROM FINANCING ACTIVITIES
Subscription proceeds received
Net cash provided by financing activities
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS
Beginning of year
End of year
Supplemental Cash Flow Disclosures
The accompanying notes form an integral part of these financial statements.
(Expressed in United States Dollars)
(Expressed in United States Dollars)
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