Page 67 - UTC Annual Report 2011

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Trinidad & Tobago Unit Trust Corporation
to the Consolidated
financial statements
Unit Trust Corporation
Annual Report 2011
For the year ended 31 December, 2011
Expressed in Trinidad & Tobago Dollars
IFRIC 19 provides guidance on the accounting for the extinguishment of a financial liability by the issue of equity
instruments; and
IAS 24 (revised), Related Party Disclosures, clarifies and simplifies the definition of a related party and removes the
requirement for government-related entities to disclose details of all transactions with the government and other
government-related entities.
New standards, amendments and interpretations issued but not effective for the financial year beginning
1 January, 2011 and not early adopted
IFRS 9 - ‘Financial Instruments’. This standard is the first step in the process to replace IAS 39, ‘Financial
Instruments: Recognition and Measurement’. IFRS 9 introduces new requirements for classifying and
measuring financial assets. Though initially announced as mandatory from 1 January 2013, the standard at
present is not mandatory until 1 January 2015 but is available for early adoption. The Group proposes to
adopt IFRS 9. It is not practicable at present to assign a dollar value to the potential impact of adoption by
the Group of IFRS 9.
IFRS 10 – Consolidated Financial Statements. IFRS 10 establishes control as the single basis for consolidation
of an entity. It states that an investor can control an entity with less than 50% of the voting rights. It
provides specific application guidance for agency relationships. IFRS 10 is mandatory from 1 January 2013,
and is expected to have a significant impact on the presentation of the Group’s Consolidated Financial
Statements as the Group will be required to consolidate most of the Funds under management line by line.
IFRS 11 – Interests in Joint Ventures deals with how a joint arrangement of which two or more parties have
joint control should be classified. The standard is not expected to have a material impact on the Group’s
financial statements in the immediate future.
IFRS 12 – Disclosure of Interests in Other Entities is mandatory from 1 January 2013, and extends the
disclosure requirements of entities that have interests in subsidiaries, joint arrangements, associates or
unconsolidated structured entities. Adoption of this standard is not expected to have a material impact on
the Group’s financial statements.
IFRS 13 – Fair Value Measurement - provides a single source of guidance for fair value measurements and
disclosures about fair value measurements. In general the disclosure requirements are more extensive than
those required under other standards. Adoption of this standard should not materially impact the Group’s
financial statements.
b) Basis of Consolidation
The Consolidated Financial Statements comprise the financial statements of the Corporation and its subsidiaries
drawn up as at 31 December, 2011 and include all the assets and liabilities and results of operations of the Group.
Subsidiaries are entities over which the Group has the power to govern the financial and operating policies. Subsidiar-
ies are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from
the date that control ceases.
a) Basis of Preparation