REPUBLIC BANK LIMITED
86
Notes to theConsolidatedFinancial Statements
For the year ended September 30, 2014. Expressed in thousands of Trinidad and Tobago dollars ($’000), except where otherwise stated
17 Other reserves
(continued)
Capital
Unallocated
General
Net
Total
reserves
shares
contingency
unrealised
reserve
gains
Balance at September 30, 2013
64,560
(53,269)
653,858
387,033
1,052,182
Realised gains transferred
to net profit
–
–
–
(276,227)
(276,227)
Revaluation of available-for-sale
investments
–
–
–
158,572
158,572
Translation adjustments
(150,828)
–
–
–
(150,828)
Share of changes recognised
directly in associate’s equity
(8,270)
–
–
–
(8,270)
Total income and expense for the
year recognised directly in equity
(159,098)
–
–
(117,655)
(276,754)
Shares purchased for profit
sharing scheme
–
(71,050)
–
–
(71,050)
Allocation of shares
–
52,185
–
–
52,185
Transfer from retained earnings
–
–
(12,201)
–
(12,201)
Balance at September 30, 2014
(94,538)
(72,134)
641,657
269,378
744,363
General contingency reserves
Specific provisions are made for non-performing advances based on the difference between the loan balances and the discounted realisable value
of collateral held. These provisions are charged through the consolidated statement of income.
A General Contingency Reserve is created as an appropriation of retained earnings, for the difference between the specific provision and non-
performing advances. When the collateral is realised, the reserve is released back to retained earnings. The General Contingency Reserve serves to
enhance the Group’s non-distributable capital base. As at September 30, 2014 the balance in the General Contingency Reserve of $641.7 million is
part of Other Reserves which totals $744.4 million.
Unallocated shares in the staff profit sharing scheme
The staff profit sharing scheme purchases Republic Bank Limited shares to build its stock for allocation in the annual profit sharing exercise. As at
September 30, 2014, shares costing $72 million (2013: $53 million) remain unallocated from the profit sharing scheme. (Note 26(a)).
Number of Shares (’000)
2014
2013
Balance brought forward
648
1,229
Add shares purchased
597
–
Allocation of shares
(635)
(581)
Balance carried forward
610
648
