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2014 ANNUAL REPORT
2 Significant accounting policies
(continued)
2.4 Standards in issue not yet effective
(continued)
IFRIC 21 - Levies (effective January 1, 2014)
IFRIC 21 is applicable to all levies other than outflows that are within the scope of other standards (e.g. IAS 12) and fines or other penalties
for breaches of legislation. Levies are defined in the interpretation as ‘outflows of resources embodying economic benefits imposed by
government on entities in accordance with legislation.’
The interpretation clarifies that an entity recognises a liability for a levy when the activity that triggers payment, as identified by the
relevant legislation, occurs. It also clarifies that a levy liability is accrued progressively only if the activity that triggers payment occurs over a
period of time, in accordance with the relevant legislation. For a levy that is triggered upon reaching a minimum threshold, the interpretation
clarifies that no liability is recognised before the specified minimum threshold is reached.
2.5 Improvements to International Financial Reporting Standards
The annual improvements process of the International Accounting Standards Board deals with non-urgent but necessary clarifications and
amendments to IFRS. The following amendments are applicable to annual periods beginning on or after January 1, 2013.
IFRS
Subject of Amendment
IAS 40 -
Investment Property
IFRS 1 -
First-time Adoption of International Financial Reporting Standards
IFRS 3 -
Business Combinations
IFRS 13 -
Fair Value Measurement
2.6 Summary of significant accounting policies
a) Cash and cash equivalents
For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents consist of highly liquid
investments, cash at hand and at bank, Treasury Bills and bankers’acceptances with original maturities of three months or less.
b) Statutory deposits with Central Banks
Pursuant to the provisions of the Central Bank Act, 1964 and the Financial Institutions Act, 2008, the Bank and its subsidiary, Republic
Finance and Merchant Bank Limited are required to maintain with the Central Bank of Trinidad and Tobago statutory balances in relation
to the deposit liabilities of the institutions. Other than statutory deposits of $4.1 billion, the Group also holds Treasury Bills and other
deposits of $6.2 billion with the Central Bank of Trinidad and Tobago as at September 30, 2014. Interest earned on these balances for the
year was $21.6 million.
Pursuant to the Banking Act of Grenada 1988, Republic Bank (Grenada) Limited is required to maintain specified assets as a reserve
requirement to its deposit liabilities.
Pursuant to the Guyana Financial Institutions Act 1995, Republic Bank (Guyana) Limited is required to maintain with the Bank of
Guyana statutory reserve balances in relation to the deposit liabilities of the institution.
In accordance with statutory provisions, Republic Bank (Barbados) Limited, is required to maintain reserves in the form of certain cash
resources and government securities with the Central Bank of Barbados.
c) Financial instruments
The Group’s financial assets and financial liabilities are recognised in the consolidated statement of financial position when it becomes
party to the contractual rights or obligation of the instrument. A financial asset is derecognised when the rights to receive the cash flows
from the asset have expired or where the Group has transferred all the risks and rewards of ownership of the asset. A financial liability
is derecognised when the obligation under the liability is discharged, cancelled or has expired. All ‘regular way’ purchases and sales are
recognised at settlement date.
