2006 - Eastern Caribbean Securities Exchange

Notes to the Consolidated Financial Statementsfor the year ended 31st December, 2006Expressed in Thousands of Trinidad and Tobago dollars2. Significant accounting policies (continued)d) Property, plant and equipment (continued)Leasehold land and improvements are amortised over the remaining term of the lease. Thelimestone reserves contained in the leasehold land at a subsidiary is valued at fair market valuedetermined at the date of acquisition of the subsidiary. A depletion charge is recognised basedon units of production from those reserves. All other limestone reserves which are contained inlands owned by the Group are not carried at fair value but the related land is stated at historicalcost.It is the Group’s policy to capitalise interest on borrowings specific to capital projects duringthe period of construction. In 2006, the total capitalised interest was $26.8 million (2005-$6.3million). Repairs and renewals are expensed when the expenditure is incurred.e) InvestmentsUnquoted equity investments, classified as long term, are stated at cost and provision is onlymade where there is an impairment in value.f) InventoriesPlant spares, raw materials and consumables are valued at the lower of weighted average costand net realisable value. Net realisable value is arrived at after review by technical personnel.Work in progress and finished goods are valued at the lower of cost, including attributableproduction overheads, and net realisable value. Net realisable value is the estimate of the sellingprice less the costs of completion and direct selling expenses.g) Foreign currency translationThese consolidated financial statements are presented in thousands of Trinidad and Tobagodollars, which is the functional and presentation currency of the Parent. Transactions originatingin foreign currencies are recorded in the functional currencies of Group companies at the rates ofexchange ruling at the dates of the transactions. Assets and liabilities in foreign currencies aretranslated at rates ruling at the balance sheet date. Differences arising therefrom are reflectedin the current year’s results.Income statements of foreign entities are translated into the Group’s functional and presentationcurrency, Trinidad and Tobago dollars, at average exchange rates for the year and the balancesheets are translated at the year end exchange rates.Exchange differences arising from the translation of the net investment in foreign subsidiaries atthe balance sheet date are taken to the currency translation account within equity.Annual Report 2006