NOTES TO THE FINANCIAL STATEMENTS AT 31ST DECEMBER, 2012 (continued)
3.
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The development of estimates and the exercise of judgment in applying accounting policies may have a material impact on the Bank’s reported assets, liabilities, revenues and expenses. The items which may have the most effect on these financial statements, are set out below. Valuation of property The Bank utilises professional valuators to determine the fair value of its properties. Valuations are determined through the application of a variety of different valuation methods which are all sensitive to the underlying assumptions chosen. Property, plant and equipment Management exercises judgment in determining whether future economic benefits can be derived from expenditures to be capitalized and in estimating the useful lives and residual values of these assets Impairment of loans receivable Provision is made for doubtful debts based on specific identification of doubtful balances. As debts become uncollectible they are written off against the provision.
Grenada Development Bank 2012 Annual Report
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