Page 67 - NIB Annual Report 12-13 | 13-14

TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2013
13. Property and equipment – net, continued
On January 18, 2013 TCIG granted a lease, in accordance with the provisions of the Crown Land Ordinance, to NIB for the aforementioned 0.56 acres of land. The term of the lease agreement is 999 years from the date of commencement of the lease term, being December 28, 2012. The total lease payment throughout the term of the lease is US$70,000 and amortised over 999 years. Annual amortisation is included as part of depreciation expense in the statement of income, expenses and reserves.
The cost of the building and the total payments for the leased land were paid in full by NIB in November 2012 as part of the Omnibus Agreement between NIB and TCIG (note 24).
No impairment losses were recognised for the years ended March 31, 2013 and 2012.
14. Investment in TCI Bank Limited
At March 31, 2013 NIB owned 2,000,000 (2012 – 2,000,000) ordinary shares in TCI Bank with an issued value of US$2,000,000 (2012 – US$2,000,000), representing approximately 15.95% of the total issued ordinary shares of TCI Bank.
NIB was represented on the board of directors of TCI Bank.
As disclosed in notes 8, 11 and 25 to these financial statements NIB also held a current account and certificates of deposit with TCI Bank at March 31, 2013 and 2012 and there was also a note receivable due from TCI Bank at March 31, 2012.
The fair value of this investment at March 31, 2013 and 2012 was assessed by NIB’s management to be US$nil as a consequence of TCI Bank entering provisional liquidation on April 9, 2010 and liquidation on October 29, 2010.
15. Accounts payable and accrued expenses
Deferred contribution income US$ Accrued benefits
Unpaid liquidator’s costs on debenture loan (note 8(a)) Accounts payable
Other accrued expenses Claims payable to TCIG
2013
393,995 323,916 300,000 243,710 210,492
– US$ 1,472,113
2012
217,358 114,874 300,000 108,986 140,313
6,150,000 7,031,531
Under the Ordinance NIB is liable for any medical costs for beneficiaries arising from employment injury.
2013 & 2014 ANNUAL REPORT | 63 42