Republic Bank Limited
88
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
2 SIGNIFICANT ACCOUNTING POLICIES
(continued)
2.6 Summary of significant accounting policies
(continued)
j) Employee benefits
(continued)
iv) Share-based payments
Employees of the Group receive remuneration in the form of share-based payments, whereby employees render
services as consideration for equity instruments (equity-settled transactions).
k) Taxation
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined
using tax rates (and laws) that have been enacted or substantially enacted by the statement of financial position date and
are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised where it is probable that future taxable profit will be available against which the temporary
differences can be utilised.
Income tax payable on profits, based on the applicable tax law in each jurisdiction, is recognised as an expense in the period
in which profits arise. The tax effects of income tax losses available for carry forward are recognised as an asset when it is
probable that future taxable profits will be available against which these losses can be utilised.
l) Statutory reserves
The Trinidad and Tobago Financial Institutions Act 2008 requires that a minimum of 10% of the net profit after deduction
of taxes in each year be transferred to a statutory reserve account until the balance on this reserve is not less than the paid-
up capital. This requirement was met as at June 2012. In accordance with the Trinidad and Tobago Financial Institutions Act
2008, the Bank is also required to maintain statutory reserves of at least 20 times deposit liabilities.
The Banking Act of Grenada (No. 19 of 2005), requires that a minimum of 20% of the net profit after deduction of taxes in
each year be transferred to a statutory reserve fund until the balance on this reserve is equal to the paid-up capital. These
reserves are not available for distribution as dividends or for any other form of appropriation.
The Guyana Financial Institutions Act 1995 requires that a minimum of 15% of the net profit after deduction of taxes in
each year be transferred to a statutory reserve fund until the balance on this reserve is equal to the paid-up or assigned
capital.
The Offshore Banking Act of Barbados requires that a minimum of 25% of the net profits of each year before any dividend
is paid, be transferred to a statutory reserve account until the balance on this reserve is not less than the issued and paid-up
capital.
The Barbados Financial Institutions Act requires that a minimum of 25% of the net income in each year be transferred to a
general reserve account until the balance on this reserve is not less than the paid-up capital.
The Banking Act, 2004 and Amendment Act, 2008 of Ghana requires that proportions of 12.5% to 50% of net profit after
tax be transferred to a statutory reserve fund depending on the existing statutory reserve fund to paid-up capital.
