10 URBAN DEVELOPMENT CORPORATION Notes to the Non-Consolidated Financial Statements (Continued) Year ended March 31, 2010 2.
Statement of compliance, basis of preparation and significant accounting policies (cont’d) (a)
Statement of compliance (cont’d):
IFRS 12, Disclosure of Interest in Other Entities (effective January 1, 2013), contains disclosure requirements for entities that have interests in subsidiaries, joint arrangements (ie joint operations or joint ventures), associates and/or unconsolidated structured entities. The disclosure requirements encompass risk exposures for the sponsor of such entities even if it no longer has any contractual involvement. These required disclosures aim to provide information to enable users to evaluate the nature of, and risks associated with an entity’s interests in other entities and the effects of those interests on the entity’s financial position, financial performance and cash flows. The corporation is required to understand what a structured entity is in the context of its operations; apply judgement in assessing whether it is ‘involved’ with a structured entity, which has the potential to broaden the transactions and relationships to which the disclosures may apply, particularly for those who sponsor, or perhaps even transact business with, but do not consolidate, structured entities; and assess the level of disclosure that it believes will be meaningful to users of the financial statements.
IFRS 13, Fair Value Measurement (effective January 1, 2013), defines fair value, establishes a framework for measuring fair value and sets out disclosure requirements for fair value measurements. It explains how to measure fair value and is applicable to assets, liabilities and an entity’s own equity instruments that, under other IFRSs, are required or permitted to be measured at fair value, or when disclosure of fair values is provided. It does not introduce new fair value measurements, nor does it eliminate the practicability exceptions to fair value measurements that currently exist in certain standards.
The corporation is assessing the impact of the above amendments, revisions, interpretations and new standards on its 2011-2014 financial statements. (b)
Basis of preparation: These non-consolidated financial statements are intended to show the affairs of the corporation as a stand-alone business. They are not intended to, and do not, show the consolidated financial position, results of operations, changes in equity and cash flows of the group. The corporation’s interests in the non-consolidated subsidiaries (note 5) are shown at cost, less impairment losses. Unless otherwise indicated, references to financial statements herein are to the non-consolidated financial statements. The financial statements are prepared on the historical cost basis, except for the revaluation of freehold lands, buildings and investment properties. The financial statements are presented in Jamaica dollars ($), which is the functional currency of the corporation.
Use of estimates and judgements: The preparation of the financial statements to conform to IFRS requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and contingent liabilities at the reporting date, and the profit or loss for the year then ended. Actual amounts could differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period of the revision and in future periods, where applicable.