Home' Trinidad and Tobago Guardian : December 29th 2015 Contents Tuesday, December 29, 2015 www.guardian.co.tt Guardian
TRINIDAD AND TOBAGO LIMITED
FINANCIAL RESULTS AS AT 31 OCTOBER 2015
Transactions in foreign currencies are translated at the rate of exchange ruling at the transaction date. Foreign
currency monetary assets and liabilities are translated at the rate of exchange ruling at the reporting date. Resulting
translation differences and profits and losses from trading activities are included in profit or loss.
Financial assets and liabilities
Financial instruments carried on the statement of financial position include cash resources, investment securities and
accounts payable. The standard treatment for recognition, derecognition, classification and measurement of SITTL's
financial instruments are noted below in notes (i) -- (iv), whilst, additional information on specific categories of SITTL's
financial instruments are discussed in Notes 3(d) - 3(e):
SITTL initially recognises financial assets and liabilities (including assets and liabilities designated at fair
value through profit or loss) on the trade date at which SITTL becomes a party to the contractual
provisions of the instrument.
SITTL derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or
it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which
substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in
transferred financial assets that is created or retained by SITTL is recognized as a separate asset or liability.
SITTL derecognises a financial liability when its contractual obligations are discharged, cancelled or
SITTL enters into transactions whereby it transfers assets recognized on its statement of financial position,
but retains either all risks or rewards of the transferred assets or a portion of them. If all or substantially all
risks and rewards are retained, then the transferred assets are not derecognised from the statement of
financial position. Transfers of assets with retention of all or substantially all risks and rewards include, for
example, securities lending and repurchase transactions.
SITTL classifies its financial assets into the following categories: financial assets at fair value through profit
or loss; receivables; held-to-maturity; and available-for-sale financial assets. Management determines the
classification of its investments at initial recognition.
Financial assets at fair value through profit or loss
This category includes financial assets held for trading or financial assets designated at fair value through
profit or loss. A financial asset is classified in this category if acquired principally for the purpose of selling in
the short-term or is so designated by management.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, deposits with banks and related companies and short-term highly liquid
investments with maturities of three months or less when purchased, including treasury bills and other bills eligible for
rediscounting with the Central Bank of Trinidad and Tobago. The carrying value approximates the fair value due to its
highly liquid nature and the fact that it is readily converted to known amounts of cash in hand and is subject to insignificant
risk of change in value.
Debt investments that SITTL has the intent and ability to hold to maturity are classified as held-to-maturity assets. All other
investments are classified as available-for-sale.
On disposal or on maturity of an investment, the difference between the net proceeds and the carrying amount is included
in profit or loss. When available-for-sale assets are sold, converted or otherwise disposed of, the cumulative gain or loss
recognized in equity is transferred to profit or loss.
Property, plant and equipment
Property, plant and equipment are carried at cost less accumulated depreciation, amortisation and impairment losses (see
3(g)). Depreciation and amortisation are calculated using the declining balance method at the following rates:
Equipment and furniture
10% to 25%
over the term of the respective leases.
The carrying amounts of SITTL assets, other than deferred tax assets (see Note 3(h)) are reviewed at each reporting date
to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its
recoverable amount. Impairment losses are recognised in profit or loss.
The recoverable amount of other assets is the greater of their net selling price and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate
largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.
An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Notes to Financial Statements
October 31, 2015
Incorporation and Business Activities
Scotia Investments Trinidad and Tobago Limited (SITTL) was incorporated in the Republic of Trinidad and Tobago, on August 23,
2007. On October 1, 2008 it became a wholly-owned subsidiary of Scotiatrust and Merchant Bank Trinidad and Tobago Limited
(Scotiatrust), also incorporated in the Republic of Trinidad and Tobago, and began trading on September 9, 2008. Scotiatrust was
amalgamated with Scotiabank Trinidad and Tobago Limited (SBTT) on May 27 2015 as a result of which SITTL became a wholly
owned subsidiary of SBTT. SITTL is licensed under the Financial Institutions Act, 2008 (FIA). SITTL's principal activity is the provision
of asset management services. The address of its registered office is 56-58 Richmond Street, Port of Spain.
SITTL's ultimate parent company is The Bank of Nova Scotia, which is incorporated and domiciled in Canada.
Basis of Preparation
Statement of compliance
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS)
issued by the International Accounting Standards Board.
Basis of measurement
The financial statements are prepared on the historical cost basis modified for the inclusion of available-for-sale
investments at fair value.
Functional and reporting currency
Items included in the financial statements of SITTL are measured using the currency of the primary economic
environment in which the entity operates ('the functional currency'). The financial statements are presented in
Trinidad and Tobago dollars which is SITTL's functional and presentation currency.
Significant Accounting Policies
The significant accounting policies adopted in the preparation of these financial statements are set out below.
Interest income is accounted for on the accrual basis for all investments using the effective interest
Fees and commissions
Fees and commissions are recognised in income when a binding obligation has been established.
Where such obligations are continuing, income is recognised over the term of the facility.
Statement of Cash Flows
Year ended October 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Profit (loss) before provision for taxation
Adjustments to reconcile loss before taxation
to net cash from operating activities:
Amortisation of bond discount
Change in other receivables
Change in other liabilities
Net cash (used in) from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from redemption of securities
Purchase of fixed assets
Net cash from investing activities
Net increase in cash and cash equivalents
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
The accompanying notes are an integral part of these financial statements.
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market. They arise when SITTL provides money or services directly to a debtor with no intention
of trading the receivable.
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and
fixed maturities that SITTL's management has the positive intention and ability to hold to maturity. Were
SITTL to sell other than an insignificant amount of held-to-maturity assets, the entire category would be
compromised and re-classified as available-for-sale and would prevent SITTL from classifying investment
securities as held-to-maturity for the current and the following two financial years. However, the following
circumstances would not trigger a reclassification:
not have a significant effect on the financial asset's fair value.
SITTL's control that could not have been reasonably anticipated.
Available-for-sale investments are those intended to be held for an indefinite period of time, and may be
sold in response to needs for liquidity or changes in interest rates, exchange rates or equity prices.
SITTL classifies its financial liabilities, other than financial guarantees and loan commitments, as measured
at amortised cost or fair value through profit or loss.
Financial instruments are measured initially at cost, including transaction costs.
Subsequent to initial recognition all financial assets at fair value through profit or loss and available-for-sale
assets are measured at fair value, based on their quoted market price at the reporting date without any
deduction for transaction costs. Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date in the
principal or, in its absence, the most advantageous market to which SITTL has access at that date.
Where the instrument is not actively traded or quoted on recognised exchanges, fair value is determined
using discounted cash flow analysis. Where discounted cash flow techniques are used, estimated future
cash flows are based on management's best estimates and the discount rate is a market related rate at the
reporting date for an instrument with similar terms and conditions.
Any available-for-sale asset that does not have a quoted market price in an active market and where fair
value cannot be reliably measured, is stated at cost, including transaction costs, less impairment losses.
Gains and losses arising from the change in the fair value of available-for-sale investments subsequent to
initial recognition are accounted for as changes in the investment revaluation reserve and recognized in
other comprehensive income (OCI).
Gains and losses, both realized and unrealized, arising from the change in the financial assets at fair value
through profit or loss are recognized in profit or loss.
All non-trading financial liabilities are measured at amortised cost and receivables and held-to-maturity
assets are measured at amortised cost less impairment losses.
Amortised cost measurement
Amortised cost is calculated on the effective interest rate method. Premiums and discounts, including initial
transaction costs, are included in the carrying amount of the related instrument and amortised based on
the effective interest rate of the instrument.
Financial assets and financial liabilities are offset and the net amount presented in the statement of
financial position only when SITTL has a legally enforceable right to set off the amounts and it intends to
either settle them on a net basis or to realise the asset and settle the liability simultaneously.
Income and expenses are presented on a net basis when permitted under IFRS, or for gains and losses
arising from a group of similar transactions.
Designation at fair value through profit or loss
Management designates financial assets and financial liabilities at fair value through profit or loss when the
assets or liabilities are managed and reported internally on a fair value basis, or the designation eliminates
or significantly reduces an accounting mismatch that would otherwise arise.
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