Notes to the Consolidated Financial Statements - FirstCaribbean ...

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Notes to the Consolidated Financial Statements
October 31, 2007
(expressed in thousands of United States dollars)
2.4 Summary of significant accounting policies (continued)
(22) Comparatives
Where necessary, comparative figures have been adjusted to comply
with changes in presentation in the current year as noted in note 2.3
Change in accounting policies, change in accounting estimates and
errors.
2.5 Future changes in accounting polices
New standards, interpretations and amendments to published standards
relevant to the Group that are not yet effective
Certain new standards, interpretations and amendments to existing standards
have been published that are mandatory for the Group’s accounting periods
beginning on or after November 1, 2007 or later periods but which the
Group has not early adopted, as follows:
(i) IAS 1, (Revised) Presentation of Financial Statements (effective from
annual periods beginning on or after January 1, 2009). IAS 1 (Revised)
will require the disclosure of all non-owner changes in equity either
in one statement of comprehensive income or in two statements (a
separate statement of income and a statement of comprehensive
income), will require additional disclosures about an entity’s capital and
will change the titles of financial statements.
(ii) IAS 23 (Revised), Borrowing Costs (effective from annual periods
beginning on or after January 1, 2009). IAS 23 will remove the option
of immediately recognising as an expense, borrowing costs that relate
to assets that take a substantial period of time to get ready for use or
sale. An entity will therefore now be required to capitalise borrowing
costs as part of the cost of such assets. The capitalisation of borrowing
costs relating to assets measured at fair value is not however required
by IAS 23.
(iii) IFRS 7, Financial Instruments: Disclosures, and a complementary
amendment to IAS 1, Presentation of Financial Statements – Capital
Disclosures (effective from annual periods beginning on or after January
1, 2007). IFRS 7 introduces new disclosures to improve the information
about financial instruments. It requires the disclosure of qualitative and
quantitative information about exposure to risk arising from financial
instruments, including specified minimum disclosures about credit risk,
liquidity risk and market risk, including sensitivity analysis to market
risk. It replaces IAS 30, Disclosures in the Financial Statements of Banks
and Similar Financial Institutions, and disclosure requirements in IAS 32,
Financial Instruments: Disclosure and Presentation. It is applicable to
all entities that report under IFRS. The amendment to IAS 1 introduces
disclosures about the level of an entity’s capital and how it manages
capital. The Group assessed the impact of IFRS 7 and the amendment
to IAS 1 and concluded that the main additional disclosures will be
sensitivity analysis to market risk and the capital disclosures required by
the amendment to IAS 1.
(iv) IFRS 8, Operating Segments (effective from annual periods beginning
on or after January 1, 2009). IFRS 8 will replace IAS 14 Segment
Reporting and increases the level of disclosure required and extends
the scope to include entities that meet certain requirements.
(v) IFRIC 11, IFRS 2: Group and Treasury Share Transactions (effective from
annual periods beginning on or after March 1, 2007). IFRIC 11 will
provide guidance on applying IFRS 2 in three circumstances.
(vi) IFRIC 13, Customer Loyalty Programmes (effective from annual periods
beginning on or after July 1, 2008). IFRIC 13 specifically seeks to explain
how entities should account for their obligations to provide free or
discounted goods and services (“awards”) to customers who redeem
award credits.
(vii) IFRIC 14, The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction (effective from annual periods
beginning on or after January 1, 2008). IFRIC 14 addresses the interaction
between minimum funding requirements and the limit placed by
paragraph 58 of IAS 19, Employee Benefits on the measurement of the
defined benefit asset or liability.