Page 110 - NIB Annual Report 12-13 | 13-14

TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2014
3. Significant accounting policies, continued
(a) Non-derivative financial instruments, continued
Financial assets and liabilities are offset, and the net amount presented on the statement of financial position, when, and only when, NIB has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
NIB has the following non-derivative financial instruments: cash and cash equivalents, contributions and other receivables, available-for-sale financial assets, long-term receivables, long-term deposits, investment in TCI Bank Limited and accounts payable and accrued expenses.
(i) Loans and receivables
Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition loans and receivables held for investment purposes are measured at fair value with changes in fair values recognised in the statement of income, expenses and reserves in accordance with International Accounting Standard 26, ‘Accounting and Reporting by Retirement Benefit Plans’ (IAS 26).
Loans and receivables not held for investment purposes are measured at amortised cost subsequent to initial recognition.
Loans and receivables comprise: cash and cash equivalents, contributions and other receivables, long-term receivables and long-term deposits.
Cash and cash equivalents comprise cash on hand, cash at investment managers and cash at banks - savings and current accounts.
Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash, are subject to an insignificant risk of change of value and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.
Debt instruments that are not quoted in an active market are classified as loans and receivables.
Contributions and other receivables comprise outstanding contributions from private employers and the self-employed, interest receivable and other receivables.
106| The National Insurance Board of The Turks and Caicos Islands
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