Page 149 - NIB Annual Report 12-13 | 13-14

TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2014
20. Financial instruments, continued
(c) Market risk, continued (iii) Fair value
The fair values of financial assets and liabilities as determined by management, together with the carrying amounts shown on the statement of financial position, were as follows:
Cash and
cash equivalents
Contributions and other receivables
Current portion of long-term receivables
Available-for-sale financial assets
Long-term receivables Long-term deposits Accounts payable
and accrued expenses
Carrying amount
34,315,837
4,418,572
623,909
133,870,860 3,480,997 4,164,598
Fair value
34,315,837 4,418,572 623,909
133,870,860 3,480,997 4,164,598
Carrying amount
44,905,495
2,790,567
643,082
147,024,963 2,913,800 4,164,598
(1,171,423) 201,271,082
Fair value
44,905,495
2,790,567
643,082
147,024,963 2,913,800 4,164,598
(1,171,423)
201,271,082 179,402,660 179,402,660
2014 (US$)
2013 (US$)
(1,472,113)
(1,472,113)
NIB’s equity securities classified as available-for-sale financial assets are listed on US and non-US stock exchanges. For such investments, a one percent increase in value at the reporting date would have increased income in the statement of income, expenses and reserves by US$986,919 (2013 – US$858,006) and an equal change in the opposite direction would have decreased income in the statement of income, expenses and reserves by US$986,919 (2013 – US$858,006)
The value of NIB’s investment holdings with TCI Bank has been reduced by management’s best estimate following TCI Bank entering provisional and then full liquidation. A 10% increase or decrease in the provision on the gross, non- secured, non-equity, balance would have increased / decreased the change in fair value and net income in the statement of income, expenses and reserves for the year by US$1.75 million (2013 – US$1.75 million).
Fair Value Hierarchy
No fair value hierarchy disclosures are made as NIB only applies quoted prices in active markets for identical assets. NIB’s available-for-sale financial instruments are carried at fair value.
2013 & 2014 ANNUAL REPORT |145 53