Home' Trinidad and Tobago Guardian : January 5th 2017 Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
TRINIDAD AND TOBAGO CREATIVE INDUSTRIES COMPANY LIMITED
September 30, 2014
Expressed in Trinidad and Tobago Dollars
2 014 Consolidated Financial Statements (continued)
1. Reporting entity
Trinidad and Tobago Creative Industries Company Limited (the Company) was incorporated in the
Republic of Trinidad and Tobago on July 29, 2013 and commenced operations in January 2014. The
registered office of the Company is situated at 47 Long Circular Road, St James.
The principal activity of the Company is to stimulate and facilitate the business development and export
activities of the creative industries in Trinidad and Tobago to generate national wealth.
The Company's fully owned subsidiaries are Trinidad and Tobago Film Company Limited (FilmTT),
Trinidad and Tobago Fashion Company Limited (FashionTT) and Trinidad and Tobago Music Company
These consolidated financial statements were approved for issue by the directors on August 10, 2016.
2. Significant accounting policies
(a) Statement of compliance
These consolidated financial statements are prepared in accordance with International Financial
Reporting Standards (IFRS) and its interpretations adopted by the International Accounting
(b) Basis of preparation
These consolidated financial statements have been prepared on the historical cost basis.
(c) Functional and reporting currency
The consolidated financial statements are presented in Trinidad and Tobago dollars, which is the
Company's functional currency.
(d) Use of estimates and judgements
The preparation of these consolidated financial statements in conformity with IFRSs requires
management to make judgements, estimates and assumptions that affect the application of
policies and reported amounts of assets, liabilities, income and expenses. Actual results could
differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods
(e) Property, plant and equipment and depreciation
Items of property, plant and equipment are measured at cost less accumulated depreciation and
accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of
self-constructed assets includes the cost of materials and direct labour, any other costs directly
attributable to bringing the assets to a working condition for their intended use, the costs of
dismantling and removing the items and restoring the site on which they are located, and
capitalised borrowing costs. Purchased software that is integral to the functionality of the related
equipment is capitalised as part of the equipment.
When parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items of property, plant and equipment.
The gain or loss on disposal of property, plant and equipment is determined by comparing the
proceeds from disposal with the carrying amount of the property, plant and equipment, and
is recognised net within other income/other expenses in profit or loss. When revalued assets
are sold, any related amount included in the revaluation reserve is transferred to retained
The cost of replacing a component of an item of property, plant and equipment is recognised in
the carrying amount of the item if it is probable that the future economic benefits embodied within
the component will flow to the Company, and its cost can be measured reliably. The carrying
amount of the replaced component is derecognised. The costs of the day-to-day servicing
property, plant and equipment are recognised in profit or loss as incurred.
Depreciation is based on the cost of an asset less its residual value. Significant components
of individual assets are assessed and if a component has a useful life that is different from the
remainder of that asset, that component is depreciated separately.
Depreciation is charged using the straight line basis at the following rates which are designed to
write off the cost of the assets over their estimated useful lives:
Furniture and fittings
Depreciation methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate.
(f) Cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents comprise cash at hand
and in bank and amounts held in a money market account.
(g) Accounts payable
Accrued expenses are stated at cost.
A provision is recognised in the balance sheet when the company has a present legal or
constructive obligation as a result of a past event, and it is probable that an outflow of economic
benefits will be required to settle the obligation. If the effect is material, provisions are determined
by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments at the time value of money and, where appropriate, the risks specific to the liability.
(i) Revenue recognition
Revenue is recognised to the extent that it is probable that economic benefits will flow to the
Company and the revenue can be reliably measured. No revenue is recognised if there are
significant uncertainties regarding recovery of the consideration due, associated costs, or the
possible return of goods.
Unconditional grants related to the ongoing operations of the Company are recognised in the
statement of comprehensive income as revenue when the grant becomes receivable.
Subventions that compensate the Company for expenses incurred are recognised as revenue in
the statement of comprehensive income on a systematic basis in the same periods in which the
expenses are incurred.
Grants that compensate the Company for the cost of an asset are recognised in the statement of
comprehensive income as revenue on a systematic basis over the life of the asset.
All other revenue is recorded on an accruals basis.
(j) Lease payments
Payments under operating leases are recognised in the statement of comprehensive income on a
straight-line basis over the term of the lease. Lease incentives are recognised in the statement of
comprehensive income as an integral part of the total lease expense.
Income tax expense comprises current and deferred tax. Income tax expense is recognised in the
statement of comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year,
using tax rates enacted or subsequently enacted at the reporting date, and any adjustment to tax
payable in respect of previous years.
Deferred tax is recognised in respect of temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used for taxation
The carrying amounts of the Company's assets are reviewed at each balance sheet date to
determine whether there is any indication of impairment. If such an indication exists, the asset's
recoverable amount is estimated.
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 the statement of
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 belongs.
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.
(m) IFRS Not Yet Effective
A number of new standards, amendments to standards and interpretations are effective for annual
periods beginning after January 1, 2014, and have not been applied in preparing these financial
statements. None of these is expected to have a significant effect on the financial statements
of the Company, except for IFRS 9, which is not expected to become effective for accounting
periods beginning any earlier than January 1, 2017 and could change the classification and
measurement of financial assets. The Company does not plan to adopt this standard early and
the extent of the impact is likely to be insignificant.
3. Property, Plant and Equipment Furniture and
equipment Computers Software Total
Year ended September 30, 2014
Additions for the year
146,838 438,113 268,554 853,505
Balance at September 30, 2014
146,838 383,037 268,554 798,429
Charge for the year
Balance at September 30, 2014
Net book value
Balance at September 30, 2014
111,846 345,967 208,826 666,639
4. Grant and other Receivable
5. Stated Capital
Unlimited number of common shares on no par value
Issued and fully paid capital 10 common shares of no par value
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT’D.)
2. Significant accounting policies (continued)
(i) Revenue recognition (continued)
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