REPUBLIC BANK LIMITED
58
Notes to theConsolidatedFinancial Statements
For the year ended September 30, 2014. Expressed in thousands of Trinidad and Tobago dollars ($’000), except where otherwise stated
2 Significant accounting policies
(continued)
2.3 Changes in accounting policies
(continued)
i)
New accounting policies/improvements adopted
(continued)
IFRS 13 - Fair Value Measurement (effective January 1, 2013)
IFRS 13 does not affect when fair value is used, but rather describes how to measure fair value where fair value is required or permitted
by IFRS. Fair value under IFRS 13 is defined as ‘the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date’ (i.e. an ‘exit price’). ‘Fair value’ as used in IFRS 2 Sharebased Payments
and IAS 17 Leases is excluded from the scope of IFRS 13. This IFRS has not materially impacted the fair value measurements of the Group.
Additional disclosures, where required, are provided in Note 23 - Fair value.
IAS 19 - Employee Benefits (Revised) (effective January 1, 2013)
The revised standard includes a number of amendments that range from fundamental changes to simple clarifications and re-wording.
The more significant changes include the following:
For defined benefit plans, the ability to defer recognition of actuarial gains and losses (i.e. the corridor approach) has been removed.
As revised, actuarial gains and losses are recognised in other comprehensive income (OCI) when they occur. Amounts recorded in the
consolidated statement of income are limited to current and past service costs, gains or losses on settlements and net interest income
(expense). All other changes in the net defined benefit asset/liability are recognised in OCI with no subsequent recycling to consolidated
statement of income.
Expected returns on plan assets are no longer recognised in profit or loss. Expected returns are replaced by recording interest income
in profit or loss, which is calculated using the discount rate used to measure the pension obligation.
Objectives for disclosures of defined benefit plans are explicitly stated in the revised standard, along with new or revised disclosure
requirements. These new disclosures include quantitative information of the sensitivity of the defined benefit obligation to a reasonably
possible change in each significant actuarial assumption.
Termination benefits will be recognised at the earlier of when the offer of termination cannot be withdrawn, or when the related
restructuring costs are recognised under IAS 37.
The distinction between short-term and other long-term employee benefits will be based on expected timing of settlement rather
than the employee’s entitlement to the benefits.
