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Diahuebs 30 di Juni 2022

Notes to the Abbreviated Financial Statements

1. Incorporation and principal activities of the Company An asset’s carrying amount is written down immediately to its Financial instruments
Fatum Life Aruba N.V. (the Company) is a Company domiciled in recoverable amount if the asset’s carrying amount is greater than
Aruba and has its registered office at L.G. Smith Boulevard #162. its estimated recoverable amount. (a) Initial recognition and measurement
The Company was incorporated on 7 March 2008, however offi- Financial assets and liabilities are recognised when the Compa-
cially started its operations on 1 January 2009. Fatum Life N.V. Gains and losses on disposals are determined by comparing pro- ny becomes a party to the contractual provisions of the instru-
(the parent) was incorporated in Curacao on 27 December 2002. ceeds with carrying amount. These are included in the statement ment. Regular way purchases and sales of financial assets are
The address of the registered office is, Cas Coraweg 2, Curacao. of income. recognised on settlement date, the date on which the Compa-
The ultimate parent of the Company is Guardian Holdings Limited, ny commits to purchase or sell the asset. Regular way pur-
Trinidad and Tobago. Investment properties chases or sales are purchases or sales of financial assets that
Freehold or leasehold properties held for long-term rental yields require delivery of assets within the time frame established by
The Company is engaged in life insurance operations. that are not occupied by the Company are classified as invest- regulation or convention in the marketplace.
These financial statements were authorized for issue by the Board ment properties. Investment properties comprise freehold land
Directors of Fatum Life Aruba N.V. on 23 June, 2022. and buildings. They are measured initially at cost, including trans- At initial recognition, the Company measures financial assets at
action costs. Subsequent to initial recognition, investment proper- its fair value plus, in the case of financial assets not at fair value
2. Significant Accounting Policies ties are stated at fair value. Fair value is based on active market through profit or loss, transaction costs that are directly attrib-
These explanatory notes are an extract of the detailed notes in- prices, adjusted as necessary, for any difference in the nature, lo- utable to the acquisition of financial assets. Transaction costs of
cluded in the audited financial statements. cation, or condition of the specified asset. Fair value is determined financial assets carried at fair value through profit or loss are
annually by accredited external valuators. Investment properties expensed in the statement of income.
2.1 Basis of preparation are not subject to depreciation. Any appreciation or diminution in
These abbreviated financial statements are derived from the au- value is recognized in the statement of income. The Company’s financial assets include cash and short-term
dited financial statements of the Company which have been pre- deposits, investment in debt and equity securities, interest re-
pared according to Book 2 of the Civil Code of Aruba and in accor- If investment properties become owner-occupied, they are reclas- ceivable, receivables arising from insurance contracts and rein-
dance with International Financial Reporting Standards (IFRS) sified as property, plant and equipment, and their fair value at the surance contracts and other loans and receivables.
issued by the International Accounting Standards Board (IASB). date of reclassification becomes its cost for subsequent accounting
The abbreviated financial statements do not contain all the disclo- periods. Alternatively, where properties classified as held for use Financial liabilities are initially measured at fair value, and,
sures required by International Financial Reporting Standards. become investment properties because of a change in use, these where applicable, adjusted for transaction costs. The Compa-
properties are accounted for as investment properties and any ny’s financial liabilities include trade, intercompany and other
The abbreviated financial statements and the audited financial differences arising between the carrying amount and the fair value payables.
statements have been prepared under the historical cost conven- of these items at the date of transfer are recognized in equity as a
tion, as modified by financial assets and financial liabilities at fair revaluation of property. However, if a fair value gain reverses a (b) Classification and subsequent measurement
value through profit or loss. previous impairment loss, the gain is recognized in the statement
of income. Debt instruments
The preparation of financial statements in conformity with IFRS Subsequent to initial recognition, the Company’s debt instru-
requires the use of certain critical accounting estimates. It also Investment properties are derecognized when either they have ments are measured in accordance with the business models
requires management to exercise its judgment in the process of been disposed of or when the investment property is permanent- determined by the Company’s respective business units for
applying the Company’s accounting policies. Areas involving a ly withdrawn from use and no future economic benefits are ex- managing the asset and the cash flow characteristics of the
higher degree of judgment or complexity, or areas where assump- pected from its disposal. Upon disposal, any surplus previously asset. There are three measurement categories into which the
tions and estimates are significant to the financial statements, are recorded in the property revaluation reserve in equity is trans- Company classified its debt instruments:
disclosed in Note 3. ferred to retained earnings.
(i) Amortised cost: Assets that are held for collection of con-
Foreign currency translation Investment in Associate tractual cash flows where those cash flows represent solely
The Company’s investment in associated companies is accounted payments of principal and interest are measured at amor-
(a) Functional and presentation currency for using the equity method of accounting. An associate is an en- tised cost. The carrying amounts of these assets are adjusted
Items included in the financial statements are measured using tity in which the Company has significant influence and which is by any expected credit loss allowance recognised. In addi-
the currency of the primary economic environment in which neither a subsidiary nor a joint venture. Significant influence is the tion to certain debt securities, the Company’s loans and
the entity operates (the ‘functional currency’). The financial power to participate in the financial and operating policy decisions receivables are carried at amortised cost.
statements are presented in thousands of Aruban Florins, of the investee, but is not control or joint control over those policies. (ii) Fair value through other comprehensive income: Assets
which is also the Company’s presentation and functional that are held for collection of contractual cash flows and for
currency. Under the equity method, the investment in associates is carried selling the financial assets, where the assets’ cash flows
in the statement of financial position at cost plus post acquisition represent solely payments of principal and interest, are
(b) Transactions and balances in the financial statements changes in the Company’s share of net assets of the associates. measured at fair value through other comprehensive in-
Foreign currency transactions are translated into the functional Goodwill relating to associates is included in the carrying amount come. Movements in the carrying amount are taken
currency using the exchange rates prevailing at the dates of of the investment and is not amortized. The statement of income through other comprehensive income except for the rec-
the transactions. Foreign exchange gains and losses resulting reflects the share of the results of operations of the associates. ognition of impairment gains or losses, interest revenue
from the settlement of such transactions and from the transla- When there has been a change recognized directly in the equity and foreign exchange gains and losses which are rec-
tion at year-end exchange rates of monetary assets and liabil- of the associates, the Company recognizes its share of any chang- ognised in profit or loss.
ities denominated in foreign currencies are recognized in the es and discloses this, when applicable, in the statement of chang- (iii) Fair value through profit or loss: Assets that do not meet
statement of income. es in equity. the criteria for amortised cost or fair value through other
comprehensive income are measured at fair value through
Property, plant and equipment The financial statements of the associates are prepared for the profit or loss. A gain or loss on a debt investment that is
All property, plant and equipment are stated at historical cost less same reporting period as the parent company. Where necessary, subsequently measured at fair value through profit or loss is
accumulated depreciation. Historical cost includes expenditure that adjustments are made to bring their accounting policies in line recognised in the statement of income in the period in
is directly attributable to the acquisition of the items. with the Company. which it arises. The Company may, on initial recognition,
irrevocably designate a financial asset that otherwise meets
Subsequent costs are included in the asset’s carrying amount or After application of the equity method, the Company determines the requirements to be measured at amortised cost or fair
recognized as a separate asset, as appropriate, only when it is whether it is necessary to recognize an additional impairment loss value through other comprehensive income as fair value
probable that future economic benefits associated with the item on the Company’s investment in associates. The Company deter- through profit or loss, if doing so eliminates or significantly
will flow to the Company and the cost of the item can be mea- mines at each statement of financial position date, whether there reduces an accounting mismatch that would otherwise
sured reliably. All other repairs and maintenance are charged to is any objective evidence that the investment in associates is im- arise. Financial assets held for trading, or are managed and
the statement of income during the financial period in which they paired. If this is the case, the Company calculates the amount of whose performance is evaluated on a fair value basis, are
are incurred. impairment as the difference between the recoverable amount of measured at fair value through profit or loss.
the associates and its carrying value and recognizes the amount in (iv) The Company reclassifies debt instruments when and only
Depreciation on assets is charged over the estimated useful lives the statement of income. when its business model for managing those assets chang-
of the assets using the following rates and methods: es. The reclassification takes place from the start of the first
• installations: straight line method, 10% per annum The Company discontinues the use of the equity method from the reporting period following the change. Such changes are
• Office furniture & equipment: date when the investment ceases to be an associate or when the expected to be infrequent.
straight line method, 10 - 25% per annum investment is classified as held for sale.
The Company holds 23.1% interest in Guardian Resorts Interna-
tional Inc.
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