Home' Trinidad and Tobago Guardian : June 29th 2017 Contents 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
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
carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its
Income tax expense represents the sum of the tax charge and deferred taxes.
i) Current tax
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
Deferred tax assets are generally recognised for all deductible temporary differences to the extent
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)
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
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
from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will
be received and the amount of the receivable can be measured reliably.
Present obligations arising under onerous contracts are recognised and measured as provisions. An
onerous contract is considered to exist where the Company has a contract under which the unavoidable costs
from the contract.
present value of the underlying lease payments. Each lease payment is allocated between the liability and
lease is terminated before the lease period has expired, any payment required to be made to the
lessor by way of penalty is recognised as an expense in the period in which termination takes place.
m) Financial Instruments
profit and loss) are added to or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the
assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are
by regulation or convention in the marketplace.
pairment loss decreases and the decrease can be related objectively to an event occurring after the
loss to the extent that the carrying amount of the investment at the date the impairment is reversed
does not exceed what the amortised cost would have been had the impairment not been recognised.
Trade and other receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost.
A provision for impairment of trade receivables is established when there is objective evidence that
the Company will not be able to collect all amounts due according to the original terms of receivables.
re organisation, and default or delinquency in payments are considered indicators that the trade
receivable is impaired. The carrying amount of the asset is reduced through the use of an allowance
expenses'. When a trade receivable is uncollectible, it is written off against the allowance account
for trade receivables. Subsequent recoveries of amounts previously written off are credited against
Financial liabilities and equity instruments
An equity instrument is any contract that evidences a residual interest in the asset of an entity after
deducting all of its liabilities. Equity instruments issued by a group entity are recognised at the
proceeds received, net of direct issue costs.
subsequently measured at amortised cost using the effective interest method, with interest expense
recognised on an effective yield basis. The effective interest method is a method of calculating the
effective interest rate is the rate that exactly discounts estimated future cash payments through the
on initial recognition.
Trade and other payables
Trade and other payables are recognised initially at fair value based on the original invoice and sub-
sequently measured at amortised cost.
(n) Derivative Financial Instruments
interest rate and foreign exchange rate risks, including foreign exchange forward contracts, interest
rate swap and cross currency swaps. Derivatives are initially recognised at fair value at the date the
derivative contracts are entered into and are subsequently remeasured to their fair value at the end
the derivative is designated and effective as a hedging instrument, in which event the timing of the
4. Critical accounting judgements and key sources of estimation uncertainty
and assumptions used. Key sources of uncertainty require the use of estimates. The 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 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.
Key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation
Useful lives and residual values of property and equipment
The estimates of useful lives as translated into depreciation rates are detailed in the property, plant
and equipment policy above. These rates and the residual lives of the assets are reviewed annually
taking cognizance of the forecasted commercial and economic realities and through benchmarking of
accounting treatments within the industry.
Deferred taxation assets
Deferred tax assets are recognised to the extent it is probable that the taxable income will be available
business plans, which include estimates and assumptions regarding economic growth, interest,
Management applies its judgement to the facts and advice it receives from its attorneys, advocates
and other advisors in assessing if an obligation is probable, more likely than not, or remote. Such
judgement is used to determine if the obligation is recognised as a liability or disclosed as a
5. Property and equipment
Tangible asset - 2015
At 1 October 2014
519,348,555 7,134,933 4,568,215
Impairment (refer to note 25) (289,409,930)
At 30 September 2015
231,189,374 7,283,424 4,627,006
Links Archive June 28th 2017 June 30th 2017 Navigation Previous Page Next Page