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TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2014
3. Significant accounting policies, continued
(h) Taxation
Under current TCI law, NIB is not required to pay any taxes in TCI on either income or capital gains. Consequently, no tax liability or expense has been recorded in these financial statements.
(i) Actuarial present value of promised retirement benefits
IAS 26 permits the recognition of long-term liabilities for 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 recognise the actuarial present value of its promised retirement benefits in the notes to the financial statements (note 22). The actuarial present value of other long-term benefits has not been quantified.
(j) New standards, amendments to standards and interpretations not yet adopted
New and amended standards adopted by NIB
New standards, amendments and interpretations to published standards that became effective for the financial year beginning April 1, 2013 were either not relevant or not significant to NIB’s operations and accordingly did not have a material impact on NIB’s accounting policies or financial statements.
New standards, amendments and interpretations issued but not effective for the financial year beginning April 1, 2013 and not early adopted by NIB
The application of new standards and amendments and interpretations to existing standards that have been published but are not yet effective are not expected to have a material impact on NIB’s accounting policies or financial statements in the period of initial application.
4. Determination of fair values
A number of NIB’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes, as described below. Where applicable, further information about the assumptions made in determining fair value has been disclosed in the notes specific to that asset or liability.
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. Where an active market exists market price is used as the best evidence of the fair value of a financial instrument. Where no market price is available, the fair values presented have been estimated using present value or other estimation and valuation techniques based on market conditions existing at the reporting date.
116 | The National Insurance Board of The Turks and Caicos Islands
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