REPUBLIC BANK LIMITED
68
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)
2.6 Summary of significant accounting policies
(continued)
k) Fiduciary assets
The Group provides custody, trustee and investment management services to third parties. All related assets are held in a fiduciary
capacity and are not included in these consolidated financial statements as they are not the assets of the Group. These assets under
administration at September 30, 2014 totalled $31.8 billion (2013: $29.9 billion).
l) Earnings per share
Data on basic earnings per share has been computed by dividing the net profit attributable to equity holders of the parent, by the
weighted average number of ordinary shares in issue during the year.
For the diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all
dilutive potential ordinary shares. The Group has one category of dilutive potential ordinary shares, which are share options granted to
Executive Management.
The difference between the weighted average number of shares used as the denominator in calculating basic earnings per share and
that used for calculating diluted earnings per share is due to share options granted during the year.
m) Foreign currency translation
The individual financial statements of each group entity is presented in the currency of the primary economic environment, in which the
entity operates (its functional currency). The consolidated financial statements are expressed in Trinidad and Tobago dollars, which is the
functional currency of the parent.
Monetary assets and liabilities of the parent, which are denominated in foreign currencies are expressed in Trinidad and Tobago dollars
at rates of exchange ruling on September 30. Non monetary assets and liabilities denominated in foreign currencies are translated at
historic rates. All revenue and expenditure transactions denominated in foreign currencies are translated at mid-exchange rates and the
resulting profits and losses on exchange from these trading activities are dealt with in the consolidated statement of income.
The assets and liabilities of subsidiary companies are translated into Trinidad and Tobago dollars at the mid-rates of exchange ruling
at the statement of financial position date and all resulting exchange differences are recognised in other comprehensive income. All
revenue and expenditure transactions are translated at an average rate.
n) Interest income and expense
Interest income and expense are recognised in the consolidated statement of income for all interest-bearing instruments on an accrual
basis using the effective interest yield method. Interest income includes coupons earned on fixed income investment and trading
securities and accrued discount and premium on Treasury Bills and other discounted instruments.
o) Fee and commission income
Unless included in the effective interest calculation, fees and commissions are recognised on an accruals basis as the service is provided.
Fees and commissions not integral to effective interest arising from negotiating, or participating in the negotiation of a transaction from
a third party are recognised on completion of the underlying transaction. Portfolio and other management advisory and service fees
are recognised based on the applicable service contracts. Asset management fees related to investment funds are recognised over the
period the service is provided.
