Page 112 - 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
(b)
Provisions, continued
Per IAS 26 NIB has an option as to whether it discloses the actuarial present value of promised retirement benefits on the statement of financial position, in the notes to the financial statements or in an accompanying actuarial report. NIB has elected to disclose the actuarial present value of promised retirement benefits in a note to the financial statements (note 22). The actuarial present value of other long-term benefits was not quantified which is not in accordance with IAS 37, ‘Provisions, Contingent Liabilities and Contingent Assets’, which requires that a provision be recognised.
Property and equipment
(i) Recognition and measurement
Property and equipment are measured at cost less accumulated depreciation and impairment losses (note 3(f)(ii)).
Cost includes expenditures that are directly attributable to the acquisition of property and equipment.
Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment.
Gains or losses arising from the disposal of property and equipment are reflected in the statement of income, expenses and reserves.
(ii) Subsequent costs
The cost of replacing an item of property and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to NIB and its cost can be reliably measured. The carrying amount of the replaced part is derecognised. The cost of the day- to-day servicing of property and equipment is recognised in the statement of income, expenses and reserves, as incurred.
(iii) Depreciation
Depreciation is recognised in the statement of income, expenses and reserves on a straight-line basis over the estimated useful lives of each part of an item of property and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Land is not
(c)
108| The National Insurance Board of The Turks and Caicos Islands
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depreciated.