Republic Bank Limited
94
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
3 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
(continued)
Judgements
In the process of applying the Group’s accounting policies, management has made the following judgements, which have the most
significant effect on the amounts recognised in the consolidated financial statements:
Premises and Equipment (Note 7)
Management exercises judgement in determining whether costs incurred can accrue sufficient future economic benefits to the Group
to enable the value to be treated as a capital expense. Further judgement is used upon annual review of the residual values and useful
lives of all capital items to determine any necessary adjustments to carrying value.
Assessment of control
Management uses judgement in performing a control assessment review on all mutual funds and retirement plans sponsored by the
Group and its subsidiaries. This assessment revealed that the Group is unable to exercise power over the activities of the funds and is
therefore not deemed to be in control of any of the mutual funds and retirement plans.
4 ADVANCES
a) Advances
2015
Commercial
Retail and Corporate
lending
lending
Mortgages
Total
Performing advances
5,881,567
14,753,757
11,730,937
32,366,261
Non-performing advances
186,424
649,077
414,226
1,249,727
6,067,991
15,402,834
12,145,163
33,615,988
Unearned interest/finance charge
(43,807)
(64,467)
–
(108,274)
Accrued interest
10,100
81,259
20,412
111,771
6,034,284
15,419,626
12,165,575
33,619,485
Allowance for impairment losses
- Note 4 (b)
(116,142)
(360,283)
(135,062)
(611,487)
Net advances
5,918,142
15,059,343
12,030,513
33,007,998
