Home' Trinidad and Tobago Guardian : August 10th 2017 Contents Financial Statements
30 September 2014
(Expressed in Trinidad and Tobago dollars)
Repairs and renovations are normally expensed as they are incurred.
Expenses are reported as assets only if the amounts involved are
substantial and one or more of the following conditions is satis ed: the
original useful life is prolonged, the production capacity is increased, the
quality of the products is enhanced materially or production costs are
The gain or loss arising on the disposal or retirement of an item of o ce
furniture and equipment is determined as the di erence between the
sales proceeds and the carrying amount of the asset and is recognised
in the statement of income of pro t or loss and other comprehensive
The carrying amount o ce furniture and equipment is reviewed
whenever events or changes in circumstances indicate that impairment
may have occurred.
c) Government grants
InvesTT Limited's operations are funded by grants provided by the
Government of the Republic of Trinidad and Tobago ('GORTT').
Government subventions are recognised where there is reasonable
assurance that the subvention will be received and all attached
conditions will be complied with. When the subvention relates to an
expense item, it is recognised as income over the period necessary to
match the subvention on a systematic basis to the cost that it is intended
to compensate. Where the subvention relates to an asset it is recognised
as deferred income and released to income in equal amounts over the
useful life of the related asset.
d) Foreign currency transactions
Items included in the nancial statements of the Company are measured
using the currency that best re ects the economic substance of the
underlying events and the circumstances relevant to the Company ('the
functional currency'). The functional and presentation currency of the
Company is the Trinidad and Tobago dollar.
Foreign currency transactions are translated into the functional currency
using the exchange rates prevailing at the date of the transactions.
Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation of monetary assets and liabilities
denominated in foreign currencies are recognised in the statement of
pro t or loss.
e) Financial assets
Financial assets within the scope of IAS 39 are classi ed as nancial
assets at fair value through the pro t or loss, loans and receivables,
held-to-maturity investments, or available-for-sale nancial assets, as
appropriate. When nancial assets are recognized initially, they are
measured at fair value, plus, directly attributable transaction costs.
The Company determines the classi cation of its nancial assets on
initial recognition and where allowed and appropriate, re-evaluates
this designation at each nancial year end. Financial assets held by the
Company includes cash and cash equivalents, amounts due from related
parties and government grants receivable.
f) Trade and other payables
Trade payables are obligations to pay for goods or services that have
been acquired in the ordinary course of business from suppliers. Trade
payables are classi ed as current liabilities if payment is due within one
year or less (or in the normal operating cycle of the business if longer). If
not, they are presented as non-current liabilities
Trade payables and other payables are recognised at fair value.
g) Derecognition of nancial assets and liabilities
A nancial asset is derecognized when:
• The rights to receive cash ows from the asset have expired;
• The Company retains the right to receive cash ows from the asset,
but has assumed an obligation to pay them in full without material
delay to a third party under a 'pass through' arrangement; or
• The Company has transferred its rights to receive cash ows
from the asset and either (a) has transferred substantially all the
risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
When the Company has transferred its rights to receive cash ows
from an asset and has neither transferred nor retained substantially all
the risks and rewards of the asset nor transferred control of the asset,
the asset is recognized to the extent of the Company's continuing
involvement in the asset.
A nancial liability is derecognized when the obligation under the
liability is discharged or cancelled or expires.
When an existing nancial liability is replaced by another from the
same lender on substantially di erent terms, or the terms of an existing
liability are substantially modi ed, such an exchange or modi cation is
treated as a derecognition of the original liability and the recognition of
a new liability, and the di erence in the respective carrying amounts is
recognized in the statement of pro t or loss and other comprehensive
InvesTT Limited is an Investment Promotion Agency under the Ministry
of Trade and Industry whose entire operations are funded by through
GORTT grants, consequently their operations do not involve the sale of
commercial supplies, as a result no taxation in the form of Corporation
Tax, Value Added Tax or Business Levy has been incurred.
Provisions are recognised when the Company has a present obligation
(legal or constructive) as a result of a past event, if 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 ows estimated to settle the present obligation, its carrying
amount is the present value of those cash ows.
When some or all of the economic bene ts required to settle a provision
are expected to be recovered from a third party, a receivable is
recognised as an asset if it is virtually certain that the reimbursement will
be received and the amount of the receivable can be measured reliably.
j) Share capital
Ordinary shares are classi ed as equity.
Equity instruments are measured at the fair value of the cash or other
resources received or receivable, net of the direct costs of issuing the
equity instruments. If payment is deferred and the time value of money
is material, the initial measurement is on a present value basis.
2. Summary of signi cant accounting policies (continued)
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