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
A15
o) Borrowings
Borrowings are recognised initially at fair value, and are
subsequently stated at amortised cost. The Corporation does not
borrow to finance the acquisition, construction or production of
qualifying assets.
p) Segment Reporting
A segment is a distinguishable component of the Group that
is engaged in providing similar products or services which are
subject to risks and rewards that are different from those of other
segments. In this context the Group consists of one segment as all
the Group’s activities are incidental to its main activity of mutual
fund management.
q) Separate Funds Under Management
The assets and liabilities pertaining to pension and other funds,
which are managed in accordance with specific Investment
Management Agreements, are not included in the Consolidated
Statement of Financial Position of the Corporation. The market
value of these portfolios as at 31 December, 2012 is $650 million
(2011: $485 million).
2) SIGNIFICANT ACCOUNTING POLICIES
(continued)
r) Taxation
The Corporation is exempt from Corporation Tax; however, it is
subject to the Green Fund Levy. Corporation tax is payable on
profits realised by the subsidiaries and is recognised as an expense
in the period in which profits arise.
Taxes are based on the applicable tax laws in each jurisdiction.
The tax effects of taxation losses available for carry forward, are
recognised as an asset when it is probable that future taxable
profits will be available against which the losses can be utilized.
Deferred tax is provided in full, using the liability method, on
temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the Consolidated
Financial Statements. Deferred tax is determined using tax rates
that have been enacted by the date of the Consolidated Statement
of Financial Position and are expected to apply when the related
deferred tax asset is realised or the deferred corporation tax liability
is settled.
Deferred tax assets are recognised where it is probable that future
taxable profit will be available against which the temporary
differences can be utilised.
s) Comparative Information
Certain changes in presentation have been made in these Financial
Statements. These changes had no effect on the operating results
or net income after tax of the Group for the previous year.
Unit Trust Corporation
Annual Report 2012
