NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2018 (EXPRESSED IN TRINIDAD AND TOBAGO DOLLARS)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) i. Financial instruments (continued) The Company subsequently measures all equity instruments at fair value through other comprehensive income (FVOCI). The following therefore summarises classifications of Financial Instruments in the business models applied by the Company. Hold to Collect and Sell (FVOCI) Hold to Collect (Amortised Cost) Mutual Funds Cash Equity Instruments Term Deposits Accounts Receivables Impairment The Company assesses on a forward-looking basis the Expected Credit Loss (‘ECL’) associated with its debt instrument assets carried at amortised cost and FVOCI and with the exposure arising from loan commitments and financial guarantee contracts. The Company recognises a loss allowance for such losses at each reporting date. The measurement of ECL reflects: 44
i. An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes; ii. The time value of money; and iii. Reasonable and supportable information that is available without due cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions. Derecognition Financial assets, or a portion thereof, are derecognised when the contractual rights to receive the cash flows from the assets have expired, or when they have been transferred and either (i) the Company transfers substantially all the risks and rewards of ownership, or (ii) the Company neither transfers nor retains substantially all the risks and rewards of ownership and the Company has not retained control. Financial liabilities Classification and subsequent measurement In both the current and prior period, financial liabilities are classified as subsequently measured at amortised cost. Derecognition Financial liabilities are derecognised when they are extinguished (I.e. when the obligation specified in the contract is discharged, cancelled or expires). Under IAS 39 – Policies applicable for the year ended December 2017 Financial instruments Financial assets and financial liabilities are recognised on the Company’s Statement of Financial Position when the Company becomes a party to the contractual provisions of the instrument. EPL ANNUAL REPORT 2018