Home' Trinidad and Tobago Guardian : June 29th 2017 Contents National Infrastructure Development Company Limited
c) Property and equipment
Property and equipment is recorded at cost less accumulated depreciation at rates which are expect-
ed to apportion the cost of the assets on a systematic basis over their estimated useful lives.
Depreciation is recognised on the straight-line basis over the estimated useful lives of the assets as
Furniture and fixtures
Water taxi assets:
• Leasehold improvements 2%
Assets under finance leases are depreciated over their expected useful lives on the same basis as
owned assets. However, when there is no reasonable certainty that ownership will be obtained by
the end of the lease term, assets are depreciated over the shorter of the lease term and their useful
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.
An item of property and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the assets. 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.
d) Intangible assets
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumu-
lated amortisation and accumulated impairment losses. Amortisation is recognised on a straight
line basis over their estimated useful lives. The estimated useful life and amortisation method are
reviewed at the end of each reporting period, with the effect of any changes in estimate being
accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired
separately are carried at cost less accumulated impairment losses. The rate utilised is 25%.
e) Derecognition of intangible assets
An intangible asset is derecognised on disposal, or when no future economic benefits are expected
from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured
as the difference between the net disposal proceeds and the carrying amount of the asset, are
recognised in profit or loss when the asset is derecognised.
f) Non-current assets held for resale
Non-current assets and disposal groups are classified as held for sale if their carrying amount will
be recovered principally through a sale transaction rather than through continuing use. This condi-
tion is regarded as met only when the asset (or disposal group) is available for immediate sale in
its present condition subject only to terms that are usual and customary for sale of such asset (or
disposal group) and its sale is highly probable. Management must be committed to the sale, which
should be expected to qualify for recognition as a completed sale within one year from the date of
When the Company is committed to a sale plan involving loss of control of a subsidiary all of the
assets and liabilities of that subsidiary are classified as held for sale when the criteria described
above are met, regardless of whether the Company will retain a non-controlling interest in its former
subsidiary after the sale.
When the Company is committed to a sale plan involving disposal of an investment, the investment
or the portion of the investment that will be disposed of is classified as held for sale when the crite-
ria described above are met, and the Company discontinues the use of the equity method in relation
to the portion that is classified as held for sale. Any retained portion of an investment in an associ-
ate or a joint venture that has not been classified as held for sale continues to be accounted for using
the equity method. The Company discontinues the use of the equity method at the time of disposal
when the disposal results in the Company losing significant influence over the associate or joint
g) Revenue recognition
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.
Government grants are not recognised until there is reasonable assurance that the Company will
comply with the conditions attaching to them and that the grants will be received. These are rec-
ognised in the Statement of Profit or Loss on a systematic basis over the periods in which the
Company recognises as expenses the related costs for which the grants are intended to compensate.
Specifically, government grants whose primary condition is that the Company should purchase,
construct or otherwise acquire non-current assets are recognised as deferred revenue in the
Statement of Financial Position and transferred to profit or loss on a systematic and rational basis
over the useful lives of the related assets.
Government grants that are receivable as compensation for expenses or losses already incurred or
for the purpose of giving immediate financial support to the Company with no future related costs
are recognised in profit or loss in the period in which they become receivable.
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 financing.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use are added to the cost of those assets until such time as the assets are substantially ready
for their intended use.
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 recognised on the basis of the effective interest rate method and is included in
i) Impairment of tangible and intangible assets other than goodwill
At the end of each reporting period, the Company reviews the carrying amounts of its tangible and
intangible assets to determine whether there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in
order to determine the extent of the impairment loss (if any).
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its car-
rying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recover-
able amount. An impairment loss is recognised immediately in profit or loss.
Income tax expense represents the sum of the tax charge and deferred taxes.
i) Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from
'profits before tax' as reported in the Statement of Profit or Loss because it excludes items of
income or expense that are taxable or deductible in other years and it further excludes items that
are not taxable or deductible. The liability for current tax is calculated using tax rates that have
been enacted or substantively enacted by the end of the reporting period.
ii) Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differ-
ences. Deferred tax assets are generally recognised for all deductible temporary differences to
the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised
if the temporary difference arises from goodwill or from the initial recognition (other than in a
business combination) of other assets and liabilities in a transaction that affects neither the tax-
able profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at
the end of each reporting period and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that
have been enacted or substantively enacted by the end of the reporting period. The measurement
of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of the reporting period, to recover or settle the
carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to income taxes levied by
the same taxation authority and the Company intends to settle its current tax assets and liabilities
on a net basis.
Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that the Company will be required to settle the obligation, and
a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured using the cash flows estimated to settle
the present obligation, its carrying amount is the present value of those cash flows.
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