Trinidad Cement Limited
Annual Report 2012
50
Notes to the Consolidated Financial Statements
For the year ended 31 December, 2012
(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)
1. Incorporation and activities
Trinidad Cement Limited (the “Parent Company”) is
a limited liability company incorporated and resident
in the Republic of Trinidad and Tobago and its shares
are publicly traded on the Trinidad and Tobago Stock
Exchange (TTSE), Jamaica Stock Exchange (JSE),
Barbados Stock Exchange (BSE), Eastern Caribbean
Securities Exchange (ECSE) and theGuyanaAssociation
of Securities Companies and Intermediaries Inc.
(GASCI). Trinidad Cement Limited is the ultimate parent
of the Group. The Group (Trinidad Cement Limited and
its Subsidiaries) is involved in the manufacture and
sale of cement, lime, premixed concrete, packaging
materials and the winning and sale of sand, gravel and
gypsum. The registered office of the Parent Company is
Southern Main Road, Claxton Bay, Trinidad.
A listing of the Group’s subsidiary companies is detailed
in Note 23.
2. Significant accounting policies
(i) Basis of preparation
The consolidated financial statements of the Group
are prepared under the historical cost convention.
Statement of compliance
These consolidated financial statements have been
prepared in accordance with International Financial
Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB).
Changes in accounting policy and disclosures
The accounting policies adopted are consistent
with those of the previous financial year except that
the Group has adopted the following amendments
to IFRS effective as of 1 January, 2012:
• IAS 12 Income Taxes (Amendment) – Deferred
Taxes: Recovery of Underlying Assets – Effective
1 January, 2012
• IFRS 1 First-time Adoption of International
Financial Reporting Standards (Amendment)
– Severe Hyperinflation and Removal of Fixed
Dates for First-time Adopters – Effective 1 July,
2011
• IFRS 7 Financial Instruments: Disclosures
(Amendment) – Effective 1 July, 2011
The adoption of the standards or interpretations is
described below:
IAS 12 Income Taxes – Recovery of Underlying
Assets
The amendment clarified the determination of
deferred tax on investment property measured at
fair value and introduces a rebuttable presumption
that deferred tax on investment property measured
using the fair value model in IAS 40 should be
determined on the basis that its carrying amount
will be recovered through sale. It includes the
requirement that deferred tax on non-depreciable
assets that are measured using the revaluation
model in IAS 16 always be measured on a sale
basis. The amendment is effective for annual
periods beginning on or after 1 January, 2012 and
has no effect on the Group’s financial position,
performance or its disclosures.
IFRS 1 First-time Adoption of International
Financial Reporting Standards (Amendment)
– Severe Hyperinflation and Removal of Fixed
Dates for First-time Adopters
The IASBprovidedguidanceonhowanentityshould
resume presenting IFRS financial statements
when its functional currency ceases to be subject
to hyperinflation. The amendment is effective for
annual periods beginning on or after 1 July, 2011.
The amendment had no impact to the Group.
IFRS 7 Financial Instruments: Disclosures –
Enhanced Derecognition Disclosure Require-
ments
The amendment requires additional disclosure
about financial assets that have been transferred
but not derecognised to enable the user of the
Group’s financial statements to understand the
relationship with those assets that have not been
derecognised and their associated liabilities. In
addition, the amendment requires disclosures
about the entity’s continuing involvement in
derecognised assets to enable the users to
evaluate the nature of, and risks associated with,
such involvement. The amendment is effective for
annual periods beginning on or after 1 July, 2011.
The Group does not have any assets with these
characteristics so there has been no effect on the
presentation of its financial statements.
