Home' Trinidad and Tobago Guardian : June 21st 2016 Contents B9
Statement of Cash Flows (cont'd)
Year ended March 31, 2016
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale/maturity of investments
Purchase of investments
Net cash from investing activities
Net movement in cash and cash equivalents
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR
CASH AND CASH EQUIVALENTS REPRESENTED BY:
Cash deposited with parent
Interest received during the year
Interest paid during the year
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
March 31, 2016
1. Incorporation and Principal Activity
Intercommercial Trust and Merchant Bank Limited (ITMBL) was incorporated in the Republic of
Trinidad and Tobago in January 2001 and commenced operations in October 2001. ITMBL is
a wholly owned subsidiary of Intercommercial Bank Limited (the Bank). Intercommercial Bank
Limited is a wholly owned subsidiary of Jamaica Money Market Brokers (Trinidad and Tobago)
Limited which is itself a wholly owned subsidiary of Jamaica Money Market Brokers Limited, a
company domiciled in Jamaica.
As a licensed trust company, merchant bank and finance house/finance company, it operates
under a licence from the Financial Institutions Act, 2008. Its principal activities include providing
medium and long term finance, mortgages, accepting medium and long term fixed deposits
from the public, invoice financing, trade and inventory financing, investment services, leasing,
project financing and arranging and underwriting issues of marketable securities. Its registered
office is situated at 77 Independence Square South, Port of Spain. The ultimate parent of
ITMBL is Jamaica Money Market Brokers Limited.
These financial statements were authorised for issue by the Board of Directors on May 13, 2016.
2. Basis of Preparation
(a) Statement of compliance
The financial statements are prepared in accordance with International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board.
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis except for
financial instruments at fair value through profit or loss and available-for-sale financial
assets which are measured at fair value.
(c) Functional and presentation currency
Items included in the financial statements 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 ITMBL's
functional and presentation currency, unless otherwise stated. All amounts are rounded
to the nearest thousand, unless otherwise indicated.
(d) Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires management
to make judgements, estimates and assumptions that affect the application of policies
and reported amounts of assets, liabilities, income and expenses. The estimates and
Notes to Financial Statements (cont'd)
March 31, 2016
2. Basis of Preparation (cont'd)
(d) Use of estimates and judgements (cont'd)
associated assumptions are based on historical experience and various other factors
that are believed to be reasonable under the circumstances, the results of which form the
basis of making the judgements about carrying values of assets and liabilities that are not
readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the period in which the estimate is revised if
the revision affects only that period, or in the period of the revision and future periods if
the revision affects both current and future periods.
Judgements made by management in the application of IFRS that have a significant effect
on the financial statements and estimates with a significant risk of material adjustment in
the next year are discussed in Note 4.
3. Significant Accounting Policies
The principal accounting policies adopted in the preparation of these financial statements are
set out below:
(a) Foreign currency
Transactions in foreign currencies are initially recorded at the exchange rates ruling at
the date of the transactions. Monetary assets and liabilities denominated in foreign
currencies are expressed in Trinidad and Tobago dollars at the rate of exchange ruling on
the reporting date. All differences are taken to the statement of comprehensive income.
Non-monetary items that are measured in terms of historical cost in a foreign currency
are translated using the exchange rates as at the dates of the initial transactions. Non-
monetary items measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value was determined.
(b) Financial assets and liabilities
ITMBL's financial assets and financial liabilities are recognised in the statement of
financial position when it becomes party to contractual obligations of the instrument.
ITMBL derecognises its financial assets when it loses control of the contractual rights that
comprise the financial assets. ITMBL loses such control if it realises rights to benefits
specified in the contract, the rights expire, or the Bank surrenders those rights. Financial
liabilities are derecognised only when the obligation is discharged, cancelled or expired.
(c) Cash and cash equivalents
Cash and equivalents include notes and coins on hand, balances held with Central Bank and
other financial institutions, which are highly liquid financial assets with less than 90 days to
maturity from the date of acquisition, are subject to insignificant risk of changes in their fair
value, and are used by ITMBL in the management of its short-term commitments.
The carrying amounts of ITMBL's assets, other than deferred tax assets (see accounting
policy (p)), 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 estimated
(see accounting policy (d)(i)) and an impairment loss is recognised whenever the carrying
amount of an asset exceeds its recoverable amount. Impairment losses are recognised
in the statement of comprehensive income.
When there is objective evidence that an available-for-sale financial asset is impaired,
the cumulative loss that had been recognised in reserves is recognised in the statement
of comprehensive income even though the financial asset has not been derecognised.
The amount of the cumulative loss that is recognised in the statement of comprehensive
income is the difference between the acquisition cost and current fair value, less any
impairment loss on that financial asset previously recognised in the statement of
(i) Calculation of recoverable amount
The recoverable amount of ITMBL's loans and advances is calculated as the present
value of estimated future cash flows, discounted at the original effective interest rate
(i.e. the effective interest rate computed at initial recognition of these financial assets).
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,
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