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A6 A6 | InCORPORATIOn AnD PRInCIPAL ACTIVITIES| Unit Trust Corporation Annual Report 2012 Trinidad and Tobago Unit Trust Corporation Notes to the Consolidated Financial Statements 1) INCORPORATION AND PRINCIPAL ACTIVITIES The Trinidad & Tobago Unit Trust Corporation (the Corporation) was established by the Unit Trust Corporation of Trinidad and Tobago Act (the Act), Chapter 83:03 of the Laws of the Republic of Trinidad and Tobago, generally to provide facilities for participation by members of the public in investing in shares and securities approved by the Board. The Finance Act of 1997 permitted expansion of the Corporation’s scope of business to include other financial services, such as merchant banking, trustee and card services. The Corporation controlled eight (8) subsidiary companies during 2012. 2) SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these Consolidated Financial Statements are stated below. These policies have been consistently applied to all years presented, unless otherwise stated. a) basis of Preparation i. The Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and the Act, under the historical cost convention, except as modified in respect of security valuation. The accounting policies in all material respects conform to IFRS. ii. These Consolidated Financial Statements are presented in Trinidad and Tobago dollars, which is the functional currency of the Corporation. All financial information presented in Trinidad and Tobago dollars has been rounded to the nearest thousand except where otherwise indicated. iii. The preparation of Consolidated Financial Statements in accordance with IFRS requires management to make judgements, estimates and assumptions. Management reviews these estimates and underlying assumptions on a regular basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. The significant areas in which management has had to exercise its judgement are: FOR THE YEAR ENDED 31 DECEMBER, 2012 Expressed in Trinidad and Tobago dollars the determination of impairment charges with respect to fixed assets, intangible assets and investment securities. iv. The accounting policies applied in the preparation of these Consolidated Financial Statements are consistent with those of the previous financial year. v. The Group adopted the following improvements to IFRS during 2012: » IFRS 1 – First time adoption of IFRS (Amendment) – Severe Hyper-inflation and Removal of Fixed Dates for Firsttime Adopters (effective 1 July 2011). The amendment provides guidance on how an entity should resume presenting IFRS Financial Statements when its functional currency ceases to be subject to hyper-inflation. Adoption of the amendment had no impact on the Consolidated Financial Statements. » IAS 1 – Presentation of Items of Other Comprehensive Income – Amendments to IAS 1 (effective 1 July 2012). The amendments to IAS 1 change the grouping of items presented in Other Comprehensive Income (OCI). Items that would be re-classified to profit or loss at a future point in time, e.g. upon disposal of the asset, must be presented separately from items that will never be reclassified. » IFRS 7 – Financial Instruments Disclosures. These amendments introduced enhanced disclosure with respect to the transfer of financial instruments including disclosure of the possible effects of any risks that may remain with the entity after the transfer. » IAS 12 – Income Taxes (Amendment)/Deferred Taxes – Recovery of underlying assets (effective 1 January 2012). The amendment clarifies the determination of deferred tax in investment property measured at fair value under IAS 40. The Group does not hold any investment property as defined by IAS 40. » IAS 19 – Employee Benefits. Significant amendments were made to IAS 19 in June 2011. The amendments are mandatory on 1 January 2013. The Group has early adopted the amendments. The amendments inter alia: clarify the distinction between short-term and other longterm employee benefits; require entities to report in their Statements of Financial Position the net surplus or deficit of defined benefit plans; and require the recognition of actuarial gains and losses in Other Comprehensive
Notes to the Consolidated Financial Statements Income (OCI). FOR THE YEAR ENDED 31 DECEMBER, 2012 Expressed in Trinidad and Tobago dollars vi. There are new IFRS and amendments to IFRS which the Corporation opted not to early adopt in 2012. These new standards and amendments were not applied in the preparation of these Consolidated Financial Statements. The Standards and amendments are: » 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 may be early adopted. » 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 and 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. This standard deals with the classification of arrangements where two or more parties have joint control. The standard is not expected to have a material impact on the Group’s financial statements in the immediate future. The standard is mandatory from 1 January 2013. » IFRS 12 – Disclosure of interests in Other Entities. This standard is mandatory from 1 January 2013 and extends the disclosure requirements of entities that have interests in subsidiaries, joint venture 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. This standard provides a single source of guidance for fair value measurements and related disclosures. In general, the disclosure requirements are more extensive than those under other standards. Adoption of this standard is expected to impact the presentation of the Group’s Consolidated 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, 2012 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. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. ‘non-controlling interest’ represents the portion of the profit and net assets not owned directly or indirectly by the Corporation. It is presented in the Consolidated Statement of Income, the Consolidated Statement of Comprehensive Income and the Consolidated Statement of Financial Position, separately from the parent’s shareholding interest. All material inter-company transactions and accounts have been eliminated in preparing the Consolidated Financial Statements. Accounting Policies of the subsidiaries are consistent with the policies of the Group. c) Investment securities The Group classifies its financial assets in the following categories: available-for-sale, held-to-maturity and loans and receivables. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of financial assets at initial recognition. Investment securities intended to be held for an indefinite period of time but which may be sold in response to liquidity requirements or market conditions, are classified as availablefor-sale. Available-for-sale investments are carried at fair value. Un-realised gains and losses from changes in the fair value on investments classified as available-for-sale are recognised in equity. When available-for-sale financial assets are disposed of or are impaired, the related fair value adjustments are re-classified to the Consolidated Statement of Income. Investment securities with fixed maturities that management has the intent and ability to hold to maturity are classified as held-tomaturity. Held-to-maturity investments are carried at amortised cost, less any adjustment necessary for impairment. Investment securities with fixed and determinable payments, but not quoted in an active market, are classified as loans and receivables. Loans and receivables are carried at amortised cost, using the effective interest method. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated A7 Unit Trust Corporation Annual Report 2012 A7
Page 3 and 4: Our mission is to create and enhanc
Page 5 and 6: ContentS 7 Corporate Information 10
Page 7 and 8: Unit Trust Corporation Annual Repor
Page 9 and 10: oard of direCtorS Leonardo Ambrose
Page 15 and 16: Performance HigHligHts Bonds 22.10%
Page 17 and 18: Performance HigHligHts Equities 90.
Page 19 and 20: Performance HigHligHts Equities 89.
Page 21 and 22: Bonds 48.80% Performance HigHligHts
Page 23 and 24: Performance HigHligHts 23 US DOLLAR
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Page 51 and 52: Notes to the Consolidated Financial

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