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)p) Trade receivablesTrade receivables are carried at anticipated realisable value. Provision is made for specific doubtfulreceivables based on a review of all outstanding amounts at the year-end.q) BorrowingsBorrowings are initially recognised at the fair value of the consideration received less directlyattributable transaction costs. In subsequent periods, borrowings are stated at amortised costusing the effective interest method, any differences between proceeds and the redemption valueis recognised in the statement of earnings over the period of the borrowings.r) ProvisionsProvisions are recorded when the Group has a present or constructive obligation as a result ofpast events, it is probable that an outflow of resources will be required to settle the obligation,and a reliable estimate of the amount can be made.s) Earnings per shareEarnings per share are computed by dividing net profit for the year attributable to shareholdersof the parent, by the weighted average number of ordinary shares in issue during the year.t) Cash and cash equivalentsCash and cash equivalents include all cash and bank balances/advances, cash investments andoverdraft balances with maturities of less than three months from date of establishment.u) Equity compensation benefitsThe Group accounts for profit sharing entitlements which are settled in the shares of the parentcompany through an Employee Share Ownership Plan (ESOP) as an expense determined at marketvalue. The cost incurred in administering the Plan is recorded in the earnings statement of theparent company. The cost of the unallocated shares of the parent company is recognised as aseparate component within equity.v) Use of estimatesThe preparation of financial statements in conformity with International Financial ReportingStandards requires management to make estimates and assumptions that affect the reportedamount of assets and liabilities and disclosure of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenses during the reportingperiod. Actual results could differ from these estimates.Annual Report 200613