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
A14
k) Employee Benefits
Short-term employee benefits such as wages are recognised
in the accounting period during which services are rendered by
employees. Payments to defined contribution retirement benefit
plans are recognised as an expense when employees have
rendered service entitling them to the contributions. The Group’s
defined benefit obligations are calculated by estimating the value
of future benefits that employees have earned in return for their
service in the current and prior periods. The benefit is discounted
to determine its present value. Any unrecognized past service costs
and the fair value of the plan assets are deducted. The discount
rate approximates either high quality corporate bonds or the long-
term bond rate for government bonds for a duration similar to the
defined benefit obligations.
The defined benefit obligation calculations are performed by an
actuary regularly using the projected unit credit method. Should
the calculation result in a surplus, the surplus is not recognized as
an asset since the Group is not entitled to reduce its contributions
to the pension plan.
2) SIGNIFICANT ACCOUNTING POLICIES
(continued)
l) Cash and Cash Equivalents
Cash and Cash Equivalents include cash in hand, deposits held
at call with banks, other short-term investments with original
maturities of ninety days or less and bank overdrafts.
m) Provisions
Provisions are recognised when: the Group has a present or
constructive obligation as a result of past events; it is probable that
an outflow of resources will be required to settle the obligation;
and the amount has been reliably estimated. Provisions are not
recognised for future operating losses.
n) Revenue Recognition
Income comprises the fair value of the consideration received or
receivable for the rendering of services in the ordinary course of
the Group’s activities. Income is shown net of value-added tax,
discounts and after eliminating services within the Group.
Interest income is recognised in the Consolidated Statement of
Income using the effective interest method. Dividend income
is recognised when the right to receive payment is established.
Realised investment gains and losses are also recognised in the
Consolidated Statement of Income.
Unit Trust Corporation
Annual Report 2012
