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
A10
d) Security Valuation
The fair value of publicly traded securities is determined by
reference to the prevailing closing market prices at the end of the
reporting period.
The carrying amounts of financial assets and liabilities with a
maturity of less than three months are assumed to approximate
their nominal amounts.
The fair value of unquoted securities is determined using the last
traded price, which is provided by the issuer.
e) Impairment of Financial Assets
Assets carried at amortised cost
The Group assesses at each reporting date whether there is
objective evidence that a financial asset or group of financial assets
carried at amortised cost, is impaired. A financial asset or group of
financial assets is considered impaired and impairment losses are
recognised only if there is both:-
i. objective evidence of impairment as a result of one or more
events that occurred after the initial recognition of the asset
(a ‘loss event’); and
ii. the loss event has an impact on the future cash flows of the
financial asset or group of financial assets that can be reliably
estimated.
The criteria used by the Group to determinewhether an impairment
loss should be recognised include, evidence that:-
(a) the issuer, or obligor, is in significant financial difficulty;
(b) there has been a breach of contract, such as a default or
delinquency in interest payments or principal re-payments, by
the issuer or obligor;
(c) the issuer’s lender, for economic or legal reasons relating to
the issuer’s financial difficulty, has granted to the issuer a
concession that the lender would not otherwise consider;
(d) it is probable that the borrower will enter bankruptcy or other
financial reorganization;
(e) an activemarket for the financial asset has disappeared because
of financial difficulties; or
(f ) there is a measurable decrease in the estimated future cash
flows from a portfolio of financial assets since the initial
recognition of those assets, although the decrease cannot yet
be identified with the individual financial asset in the portfolio,
including:-
i) adverse changes in the payment status of borrowers in the
portfolio; and
ii) national or local economic conditions that correlate with
defaults on the assets in the portfolio.
2) SIGNIFICANT ACCOUNTING POLICIES
(continued)
Unit Trust Corporation
Annual Report 2012
