2011 Report - Fortress Mutual Fund Ltd

Fortress Mutual Fund LimitedNotes to Consolidated Financial StatementsSeptember 30, 2011(expressed in Barbados dollars)1 Incorporation and principal activityFortress Mutual Fund Limited (“the Fund”) was incorporated in Barbados on December 4, 1996, is registeredunder the Companies Act of Barbados and is licensed under the Mutual Funds Act 2002-22 as an authorisedMutual Fund. The Fund maintains its registered office at 1 st Floor, Carlisle House, Hincks Street, Bridgetown,Barbados. The Fund’s primary objective is capital growth over the long term. The Investment Manager uses avalue approach to invest primarily in Caribbean and international equities.The Fund’s investment and administration activities are managed by Fortress Fund Managers Limited (theInvestment Manager).2 Summary of significant accounting policiesThe principal accounting policies applied in the preparation of these consolidated financial statements are setout below. These policies have been consistently applied to all years presented, unless otherwise stated.a) Basis of preparationThe financial statements have been prepared in accordance with International Financial ReportingStandards (“IFRS”). The financial statements have been prepared in accordance with the historical costconvention, as modified by the revaluation of certain financial assets and financial liabilities held at fairvalue through profit or loss.The preparation of financial statements in conformity with IFRS requires the use of certain criticalaccounting estimates. It also requires management to exercise its judgement in the process of applying theFund’s accounting policies. Although these estimates are based on management’s best knowledge ofcurrent events and conditions, actual results could differ from these estimates.Estimates and judgements are continually evaluated and are based on historical experience and otherfactors, including expectations of future events that are believed to be reasonable under the circumstances.Standards, amendments and interpretations that are issued but not yet effective which may be relevantfor the Fund’s operationsIFRS 10, ‘Consolidated financial statements’ builds on existing principles by identifying the conceptof control as the determining factor in whether an entity should be included within the consolidatedfinancial statements of the parent company. The standard provides additional guidance to assist in thedetermination of control where this is difficult to assess. The Fund is yet to assess IFRS 10’s fullimpact and intends to adopt IFRS 10 no later than the accounting period beginning on or after 1January 2015.(1)