Page 114 - 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
(e)
Revenue and expense recognition
(i) Contribution and surcharge income
Contribution income is recognised on an accruals basis, at the requisite statutory rates, utilising employer monthly contribution statements, which are settled in arrears.
Surcharges are recognised on a cash basis when payment is received, which is not in accordance with IFRS which requires that they be recognised on an accruals basis.
(ii) Rental income
Rental income is recognised in the statement of income, expenses and reserves on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income over the term of the lease.
(iii) Investment income
Investment income comprises interest income on funds invested (including available-for-sale financial assets), dividend income, gains on the disposal of available-for-sale financial assets and change in market value of available-for- sale financial assets.
Interest income is recognised in the statement of income, expenses and reserves as it accrues, using the effective interest rate method.
Dividend income is recognised in the statement of income, expenses and reserves on the date that NIB’s right to receive payment is established, which, in the case of quoted securities, is the ex-dividend date.
Gains on the disposal of available-for-sale financial assets are included in the statement of income, expenses and reserves in the period in which they arise.
(iv) Benefits, general and administrative expenses
Expenditure on benefits is recognised when NIB’s obligation to make a payment has been established, which is generally upon approval of a claim.
General and administrative expenses are recognised on an accruals basis.
Long-term benefits such as retirement pension, old age non contributory, survivors, invalidity pension, retirement, funeral and survivors grants are generally recognised upon approval of a claim subject to the provisions of sections 3(1), 53(1), 14(1), 7(1), 3(4), 20(1) and 14(2) of the TCI National Insurance (Benefit) Regulations (the Benefit Regulations), respectively.
110| The National Insurance Board of The Turks and Caicos Islands
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