Notes to Consolidated Financial Statements - Barbados Investment ...

Notes to Consolidated Financial Statements
March 31, 2009
(Expressed in Barbados dollars)
6. Investments
The investment held by the Corporation is classified as available-for-sale and is stated at fair value, with any resultant gain or loss being recognised directly in
equity. The investment is represented by shares held in a publicly listed entity.
When the investment classified as available-for-sale is sold, collected or otherwise disposed of, or when the carrying amount of the investment is impaired, the
cumulative gain or loss recognized in equity is transferred to the income statement.
Investments available-for-sale are recognised/derecognised by the Corporation on the date it commits to purchase/sell the investments.
7. Sinking fund investments
Under the terms of the Prospectus issued in relation to the issue of $12,000,000 - 8 3/4% Investment and Development Bonds 2008, the Corporation was
required to set up a sinking fund by half yearly appropriations from its resources in order to provide for the redemption of bonds surrendered or maturing under
the bond issue. The bonds were redeemed on March 31, 2008.
In April 2008, the Corporation set up a sinking fund by monthly appropriations from its resources to provide for the repayment of the principal on the RBTT
$38 million loan (US$19 million) in the year 2022.
The balance in the sinking fund account is made up as follows:
2009 2008
$ $
Balance at beginning of year 1,703,410 -
Appropriation to Sinking Fund 1,670,682 1,670,682
Interest earned on amounts invested 56,350 32,728
3,430,442 1,703,410
Cash transfers to Capital Account (to be replenished) (2,000,030) -
Balance at end of year 1,430,412 1,703,410
Represented by:
Investment in term deposits 1,430,412 1,703,410
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BARBADOS INVESTMENT AND DEVELOPMENT CORPORATION ANNUAL REPORT 2009