Trinidad and Tobago Unit Trust Corporation
Notes
to the Consolidated
Financial Statements
FOR THE YEAR ENDED
31 DECEMBER, 2012
Expressed in
Trinidad and Tobago dollars
A48
Impaired assets
Impairment charges are computed in accordance with IFRS and
the Group’s accounting policies. In summary, an asset is considered
impaired where there is no longer reasonable assurance of
collection (within the contractually established timeframe) of the
full amount of principal and interest due to deterioration in the
credit quality of the counterparty or any other factor which may
affect contractual performance. In other words, an asset is impaired
if its estimated recoverable amount is less than its carrying amount.
The Corporation’s accounting policies require review for impairment
of all financial assets at each reporting period or more regularly when
individual circumstances require. The assessment includes a review
of the collateral held (including re-confirmation of its enforceability)
and the anticipated receipts for that financial asset.
Collective Investment Schemes -
Registered as local unit trust schemes
During the course of 2012, seven assets were impaired across the
Funds. The impairment charges recognised are summarized in the
following Table. No impairment charge was required in respect of
the local Collective Investment Schemes at 31 December, 2011.
2012
2011
$’000
$’000
Growth and Income Fund
21,811
-
TT$ Income Fund
79,434
-
Universal Retirement Fund
1,900
-
US$ Income Fund
211,017
-
Total
314,162
-
Collective Investment Schemes -
Registered as overseas subsidiary companies
With regard to the overseas Funds, no impairment losses were
recorded for the years ended 31 December, 2012 and 31 December,
2011.
Proprietary Investments
An impairment charge of $160,000 was recognised for the
proprietary investments of the Corporation in 2012. No impairment
charge was required in respect of these investments as at 31
December, 2011.
29) FINANCIAL RISK MANAGEMENT
(continued)
Credit risk
(continued)
Unit Trust Corporation
Annual Report 2012
