Annual Report 2015
81
2 SIGNIFICANT ACCOUNTING POLICIES
(continued)
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 July 1, 2014.
IFRS
Subject of Amendment
IAS 16 -
Property, Plant and Equipment and IAS 38 Intangible Assets - Revaluation method - proportionate restatement
of accumulated depreciation/amortisation
IAS 24 -
Related Party Disclosures - Key management personnel
IAS 40 -
Investment Property - Interrelationship between IFRS 3 and IAS 40 (ancillary services)
IFRS 2 -
Share-based Payment - Definitions of vesting conditions
IFRS 3 -
Business Combinations - Accounting for contingent consideration in a business combination
IFRS 3 -
Business Combinations - Scope exceptions for joint ventures
IFRS 8 -
Operating Segments - Aggregation of operating segments
IFRS 8 -
Operating Segments - Reconciliation of the total of the reportable segments’ assets to the entity’s assets
IFRS13 -
Fair Value Measurement - Scope of paragraph 52 (portfolio exception)
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 $4.4 billion,
the Group also holds Treasury Bills and other deposits of $5.9 billion with the Central Bank of Trinidad and Tobago as at
September 30, 2015. Interest earned on these balances for the year was $38.2 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.
In accordance with statutory provisions, HFC Bank (Ghana) Limited is required to maintain reserves in the form of certain
cash resources with the Bank of Ghana.
