Republic Bank Limited
112
For the year ended September 30, 2015. Expressed in thousands of Trinidad and Tobago dollars ($’000) except where otherwise stated
Notes to theConsolidatedFinancial Statements
4
Financial
17 OTHER RESERVES
General
Net
Capital
Unallocated contingency
unrealised
reserves
shares
reserve
gains
Total
Balance at October 1, 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)
(276,753)
Shares purchased for profit
sharing scheme
–
(71,050)
–
–
(71,050)
Allocation of shares
–
52,185
–
–
52,185
Transfer to retained earnings
–
–
(12,201)
–
(12,201)
Balance at September 30, 2014
(94,538)
(72,134)
641,657
269,378
744,363
Realised gains transferred to net profit
–
–
–
(553)
(553)
Revaluation of available-for-sale investments
–
–
–
(222,044)
(222,044)
Translation adjustments
134,731
–
–
–
134,731
Share of changes recognised directly
in associate’s equity
(1,781)
–
–
–
(1,781)
Total income and expense for the year
recognised directly in equity
132,950
–
–
(222,597)
(89,647)
Shares purchased for profit
sharing scheme
–
(67,410)
–
–
(67,410)
Allocation of shares
–
49,195
–
–
49,195
Transfer from retained earnings
–
–
42
–
42
Balance at September 30, 2015
38,412
(90,349)
641,699
46,781
636,543
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, 2015 the balance in the
General contingency reserve of $641.7 million is part of Other reserves which totals $636.1 million.
