FirstCaribbean International Bank (Bahamas) Limited

Notes to Consolidated Financial StatementsFor the year ended October 31, 2009(Expressed in thousands of Bahamian dollars)2. Accounting Policies (Continued)2.3 Adoption of new accounting policiesThe accounting policies adopted are consistent with those used in the previous financial year except as follows:The Bank has adopted the following new and amended IFRS and International Financial Reporting InterpretationsCommittee (“IFRIC”) interpretations during the year. Adoption of these revised standards and interpretations did nothave any effect on the financial performance or position of the Bank.IFRIC 13 Customer Loyalty ProgrammesIFRIC 13 requires customer loyalty credits to be accounted for as a separate component of the sales transaction inwhich they are granted. The Bank takes part in VISA supplied credit card loyalty programmes. Under these programmes,the Bank reimburses VISA for the cost of points redeemed. The fair values of the points earned by thecustomer are recognised by the Bank as revenue when it fulfils its obligation in respect of the awards.As the existing accounting treatment adopted by the Bank for customer loyalty programmes is consistent with IFRIC13, the adoption of this interpretation has had no significant impact on the current or comparative results of the Bank.IFRIC 14 IAS 19 – The Limit of a Defined Benefit Asset, Minimum Funding Requirements and their InteractionIFRIC 14 addresses the interaction between minimum funding requirements and the limit placed by paragraph 58 ofIAS 19 on the measurement of the defined benefit asset or liability. This interpretation has had no significant impacton the current or comparative results of the Bank.IFRIC 16 Hedges of a Net Investment in a Foreign OperationIFRIC 16 applies to an entity that hedges the foreign currency risk arising from its net investments in foreign operationsand wishes to qualify for hedge accounting in accordance with IAS 39. This interpretation has had no significantimpact on the current or comparative results of the Bank.2.4 Summary of Significant Accounting Policies(1) Segment reportingA business segment is a group of assets and operations engaged in providing products and services that are subjectto risks and returns that are different from those of other business segments. A geographical segment is engaged inproviding products or services within a particular economic environment that is subject to risks and returns that aredifferent from those of segments operating in other economic environments. Segments with a majority of revenueearned from external customers, and whose revenue, results or assets are 10% or more of all the segments are reportedseparately.(2) Foreign currency translationThe consolidated financial statements are presented in Bahamian dollars, which is the Bank’s functional and presentationalcurrency.Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at ratesprevailing at the date of the consolidated financial statements and non-monetary assets and liabilities are translated athistoric rates. Revenue and expenses denominated in foreign currencies are translated into the Bank’s functional currencyusing prevailing average monthly exchange rates. Realized and unrealized gains and losses on foreign currencypositions are reported in income of the current year. Translation differences on non-monetary items, such as equitiesclassified as available-for-sale securities, are included in the available-for-sale reserve in equity.23