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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER, 2010
(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)
(Continued)
2. Significant accounting policies (continued)
h) Taxation
Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from
or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted by the reporting date.
Deferred income tax
A deferred tax charge is provided, using the liability method, on all temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes.
Deferred tax assets are recognized for all deductible temporary differences, carry–forward of unused tax credits and unused tax losses,
to the extent that it is probable that future taxable profit will be available against which these deductible temporary differences, and
carry-forward of unused tax credits and tax losses can be utilised. The carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer probable that sufficient future taxable profit will be available to allow all
or part of the deferred tax assets to be utilised.
i) Employee benefits
The parent company employees are members of the Trinidad Cement Limited Employee’s pension plan, while Premix & Precast
Concrete Incorporated’s employees are members of the Arawak Cement Limited Employee’s pension plan. The pension plans are
generally funded by payments from employees and by the relevant Group companies, taking account of the rules of the pension plans
and recommendations of independent qualified actuaries.
The Group accounts for this defined benefit plan using the projected unit credit method. Under this method, the cost of providing
pensions is charged to the consolidated income statement so as to spread the regular cost over the service lives of the employees
in accordance with the advice of independent actuaries who carry out a full valuation every three years. The pension obligation
is measured at the present value of the estimated future cash outflows using interest rates of long term government securities. All
actuarial gains and losses are spread forward over the average remaining service lives of employees.
j) Financial instruments
Financial instruments carried on the statement of financial position include cash and bank balances including advances/overdrafts,
accounts payables, accounts receivables and borrowings. The particular recognition methods adopted are disclosed in the individual
policy statements associated with each items.
k) Cash and cash equivalents
For the purpose of the statement of cash flows, cash and cash equivalents include all cash and bank balances and overdraft balances
with maturities of less than three months from date of establishment.
l) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably
measured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates and sales taxes. The
following specific recognition criteria must be met before revenue is recognised:
Sales of concrete and other materials
Revenue from the sale of concrete and other materials is recognised when the significant risks and rewards of ownership of the goods
have passed to the buyer, usually on delivery of the goods.
Interest income
Interest income is recognized as interest accrues.
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