Notes to Consolidated Financial Statements - Barbados Investment ...

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Notes to Consolidated Financial Statements March 31, 2009 (Expressed in Barbados dollars) 2. Significant accounting policies, continued (d) Cash and cash equivalents Cash and cash equivalents are carried in the balance sheet at cost. For the purposes of the statement of cash flows, cash and cash equivalents comprise cash on hand and deposits held at call with other banks with original maturities of 90 days or less. (e) Revenue recognition Revenue from factory space rental and related interest charges is recognized on an accrual basis. Revenue from the sale of goods is recognized in the income statement when the significant risks and rewards of ownership have been transferred to the buyer. Other revenue is recognized at the point of delivery of the service. (f) Property, plant and equipment and development projects Property, plant and equipment and development projects are stated at cost less accumulated depreciation and impairment losses. Depreciation on property, plant and equipment and development projects is provided on the straight line method at rates which are calculated to write the assets off over their expected useful lives as follows: Buildings Furniture and fittings Computer hardware Computer software Machinery and equipment Vehicles 2.5% per annum 10% per annum 33.3% per annum 100% per annum 10% per annum 20% per annum Depreciation methods, useful lives and residual values are reviewed at each reporting date. Assets taken over from the former BIDC and the former BEPC are being depreciated over their remaining useful lives. Building repair and maintenance costs are charged to current operations and the cost of improvements capitalised. (g) Inventories Inventories are valued at the lower of cost and net realizable value. Cost is based on the first-in-first-out method. (h) Revenue and capital grants Revenue grants received from Government are taken to income in the period in which the related expenditure is incurred. Grants received from Government for capital expenditure are treated as deferred grants and amortised over the useful life of the assets purchased with grant funds. (See note 13) (i) (j) Capitalisation of interest Interest on loans obtained for the construction of development projects is capitalised during the period of construction. Pension scheme The Corporation operates a fully insured purchased annuity pension scheme for certain of its employees. The scheme takes the form of a defined contribution pension scheme. Pension costs are accounted for on the basis of contributions payable in the year. (Note 21) (k) Impairment The carrying amounts of the Group’s assets are reviewed at each balance sheet date to determine whether there is an indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset or its cashgenerating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement. For goodwill, assets that have an indefinite useful life and intangible assets that are not yet available for use, the recoverable amount is estimated at each balance sheet date. 34 BARBADOS INVESTMENT AND DEVELOPMENT CORPORATION ANNUAL REPORT 2009
Notes to Consolidated Financial Statements March 31, 2009 (Expressed in Barbados dollars) 2. Significant accounting policies, continued (l) Accounts receivable Tenants’ rent receivables are carried at original invoice amount less an estimate for doubtful receivables based on a review of all outstanding amounts at the year end. The provision for doubtful receivables is based on the specific identification of doubtful receivables. Additions to the provision are charged to current operations. As receivables become uncollectible they are written off against the provision. (m) Interest-bearing borrowings Interest-bearing borrowings are recognized initially at fair value less attributable transaction costs. They are subsequently stated at amortized cost with any difference between cost and redemption value recognized in the income statement over the period of the borrowing on an effective interest basis. (n) Investments The Company’s investments in equity are classified as available-for-sale financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other impairment losses and foreign exchange gains and losses on available-for-sale monetary items are recognized directly in equity. When an investment is derecognized, the cumulative gain or loss in equity is transferred to profit or loss. (o) New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations are not yet effective for the year ended March 31, 2009, and have not been applied in preparing these financial statements: • Revised IFRS 3 Business Combinations (2008) incorporates the following changes that are likely to be relevant to the Group’s operations: – The definition of a business has been broadened, which is likely to result in more acquisitions being treated as business combinations. – Contingent consideration will be measured at fair value, with subsequent changes therein recognised in profit or loss. – Transaction costs, other than share and debt issue costs, will be expensed as incurred. – Any pre-existing interest in the acquiree will be measured at fair value with the gain or loss recognised in profit or loss. – Any non-controlling (minority) interest will be measured at either fair value, or at its proportionate interest in the identifiable assets and liabilities of the acquiree, on a transaction-by-transaction basis. Revised IFRS 3, is effective for periods beginning on or after July 1, 2009. • Amendments to IAS 32 Financial instruments: Presentation and IAS 1, Presentation of Financial Statements is effective for annual periods beginning on or after January 1, 2009. The amendments allow certain instruments that would normally be classified as liabilities to be classified as equity if certain conditions are met. Where such instruments are reclassified, the entity is required to disclose the amount, the timing and the reason for the reclassification. • Amendment to IFRS 2 Share-based payment – Vesting Conditions and Cancellations is effective for annual periods beginning on or after January 1, 2009. Under the amendment, non-vesting conditions are taken into account in measuring the grant date fair value of the share-based payment and there is no true-up for differences between expected and actual outcomes. • IFRS 8 Operating Segments introduces the “management approach” to segment reporting. IFRS 8, is effective for periods beginning on or after January 1, 2009, and will require a change in the presentation and disclosure of segment information based on the internal reports regularly reviewed by the Group’s Chief Operating Decision Maker, in order to assess each segment’s performance and to allocate resources to them. BARBADOS INVESTMENT AND DEVELOPMENT CORPORATION ANNUAL REPORT 2009 35
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Page 4 and 5: Mission To be a dynamic Business De
Page 6 and 7: Board Of Directors Members of the B
Page 8 and 9: Chairman’s Report The Year in Rev
Page 10 and 11: Operating Environment Global Indust
Page 12 and 13: FIGURE 1 DISTRIBUTION OF INVESTMENT
Page 14 and 15: 2. The development of a viable, hig
Page 16 and 17: partnership was developed with the
Page 18 and 19: assistance aimed at overall export
Page 20 and 21: Table lV DOMESTIC EXPORTS TO CARICO
Page 22 and 23: appraisals were completed. Emphasis
Page 24 and 25: 2008/09 IN PICTURES The BIDC’s bo
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Page 28 and 29: Auditors’ Report To the Board of
Page 30 and 31: Consolidated Statement of Changes i
Page 32 and 33: Consolidated Statement of Cash Flow
Page 36 and 37: Notes to Consolidated Financial Sta
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Notes to Consolidated Financial Statements - Barbados Investment ...

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