REPUBLIC BANK LIMITED
56
Notes to theConsolidatedFinancial Statements
For the year ended September 30, 2014. Expressed in thousands of Trinidad and Tobago dollars ($’000), except where otherwise stated
1 Corporate information
Republic Bank Limited (the ‘Parent’) is incorporated in the Republic of Trinidad and Tobago and was continued under the provision of the
Companies Act, 1995 on March 23, 1998. Its registered office is located at Republic House, 9-17 Park Street, Port of Spain.
The Republic Bank Group (the ‘Group’) is a financial services group comprising fourteen (14) subsidiaries and four (4) associated companies. The
Group is engaged in a wide range of banking, financial and related activities in Trinidad and Tobago, the Caribbean and Ghana. A full listing of the
Group’s subsidiary companies is detailed in Note 29 while associate companies are listed in Note 6. Republic Bank Limited is the ultimate Parent of
the Group and is listed on the Trinidad and Tobago Stock Exchange.
Until October 31, 2012, the CL Financial Group held through its various subsidiaries, 51.4% of the shares of Republic Bank Limited, of which
Colonial Life Insurance Company (Trinidad) Limited (CLICO) and CLICO Investment Bank Limited (CIB) combined, held 51.1%.
CLICO Investment Bank Limited (CIB) which owned together with its subsidiary First Company Limited 18.3% of the shareholding of Republic
Bank Limited was on October 17, 2011 ordered by the High Court to be wound up and the Deposit Insurance Company appointed liquidator.
Accordingly, this 18.3% shareholding is under the control of the Deposit Insurance Company.
On November 1, 2012, 24.8% of Republic Bank formerly owned by Colonial Life Insurance Company (Trinidad) Limited (CLICO) was transferred
into an investment fund launched by the Government of the Republic of Trinidad and Tobago and called the CLICO Investment Fund (the Fund).
The Trustee of the Fund is the CLICO Trust Corporation Limited which holds the 24.8% shareholding in Republic Bank Limited in trust solely for the
benefit of subscribing Unit holders of the Fund. The Fund is as a consequence the largest shareholder in Republic Bank Limited.
Effective November 1, 2012, the CL Financial Group is no longer considered a related party of Republic Bank Limited.
2 Significant accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been
consistently applied across the Group.
2.1 Basis of preparation
The financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRS), and are stated
in Trinidad and Tobago Dollars. These consolidated financial statements have been prepared on a historical cost basis, except for the
measurement at fair value of investment securities classified as available-for-sale and at fair value through profit or loss financial instruments.
The preparation of consolidated financial statements in conformity with International Financial Reporting Standards requires management
to make estimates and assumptions. Actual results could differ from those estimates. Significant accounting judgements and estimates in
applying the Group’s accounting policies have been described in Note 3.
2.2 Basis of consolidation
The consolidated financial statements comprise the financial statements of Republic Bank Limited and its subsidiaries as at September
30 each year. The financial statements of subsidiaries are prepared for the same reporting year as the parent company, using consistent
accounting policies.
All intercompany balances and transactions, including unrealised profits arising from intra-group transactions have been eliminated in
full. Unrealised losses are eliminated unless costs cannot be recovered.
Subsidiary companies
Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies generally accompanying a
shareholding of more than 50% of the voting rights. Subsidiaries are fully consolidated from the date on which control is transferred to the
Group. They are de-consolidated from the date that control ceases.
The Group uses the purchase method of accounting to account for the acquisition of subsidiaries. The cost of an acquisition is measured
as the fair value of the assets, equity instruments and intangible assets given and liabilities incurred or assumed at the date of exchange plus
costs directly attributable to the acquisition. The excess of the cost of the acquisition over the fair value of the Group’s share of the identifiable
net assets acquired is recorded as goodwill.
Non-controlling interest represents the portion of the profit and net assets not owned, directly or indirectly, by the Bank and are presented
separately in the consolidated statement of income, consolidated statement of comprehensive income and within equity in the consolidated
financial position, separately from the equity holders of the parent.
