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Diahuebs 30 di Juni 2022

Notes to the Abbreviated Financial Statements

1. Incorporation and principal activities of the Company Motor vehicles straight-line method, through other comprehensive income except for the rec-
Fatum General Insurance Aruba N.V. (the Company) is domiciled 25% per annum ognition of impairment gains or losses, interest revenue
in Aruba and has its registered office at L.G. Smith Boulevard Office furniture & equipment straight line method, and foreign exchange gains and losses which are rec-
#162, Aruba. The Company was incorporated on 7 March 2008, 10 - 25% per annum ognised in profit or loss.
however officially started its operations on 1 January 2009. Fatum (iii) Fair value through profit or loss: Assets that do not meet
General Insurance N.V. (the parent) was incorporated in Curaçao An asset’s carrying amount is written down immediately to its the criteria for amortised cost or fair value through other
on 27 December 2002. The address of the registered office is, recoverable amount if the asset’s carrying amount is greater than comprehensive income are measured at fair value through
Cas Coraweg 2, Curaçao. The ultimate parent of the Company is its estimated recoverable amount. profit or loss. A gain or loss on a debt investment that is
Guardian Holdings Limited, Trinidad and Tobago. subsequently measured at fair value through profit or loss is
Gains and losses on disposals are determined by comparing pro- recognised in the statement of income in the period in
The Company is engaged in underwriting all classes of general ceeds with carrying amount. These are included in the statement which it arises. The Company may, on initial recognition,
insurance business. of income. irrevocably designate a financial asset that otherwise meets
the requirements to be measured at amortised cost or fair
The financial statements of the Company were authorized for issue Intangible assets - Computer software value through other comprehensive income as fair value
by the Board of Managing Directors of Fatum General Insurance Acquired computer software licenses are capitalized on the basis through profit or loss, if doing so eliminates or significantly
Aruba N.V. on 29 June, 2022. of the costs incurred to acquire and bring to use the specific soft- reduces an accounting mismatch that would otherwise
ware. Costs that are directly associated with the development arise. Financial assets held for trading, or are managed and
2. Significant Accounting Policies of identifiable and unique software products controlled by the whose performance is evaluated on a fair value basis, are
These explanatory notes are an extract of the detailed notes in- Company, and which will probably generate economic benefits measured at fair value through profit or loss.
cluded in the audited financial statements. exceeding costs beyond one year, are also recognized as intangi-
ble assets. These costs are amortized over their estimated useful Business model assessment
2.1 Basis of preparation lives. The remaining useful lives of computer software and website The Company’s business units determine their business models
These abbreviated financial statements are derived from the audited development costs range from 1 to 6 years. Costs associated with at the level that best reflects how it manages groups of financial
financial statements of the Company which have been prepared developing or maintaining computer software programmes are assets to achieve its business objective. Factors considered by the
according to Book 2 of the Civil Code of Aruba and in accordance recognized as an expense as incurred. business units in determining the business model for a group of
with International Financial Reporting Standards (IFRS) issued by assets include:
the International Accounting Standards Board (IASB). The abbrevi- Financial instruments • the stated policies and objectives for the Company of assets
ated financial statements do not contain all the disclosures required and the operation of those policies in practice. These include
by International Financial Reporting Standards. (a) Initial recognition and measurement whether management’s strategy focuses on earning contrac-
Financial assets and liabilities are recognised when Company tual interest income, maintaining a particular interest rate profile,
The abbreviated financial statements and the audited financial becomes a party to the contractual provisions of the instru- matching the duration of the financial assets with the duration
statements have been prepared under the historical cost conven- ment. Regular way purchases and sales of financial assets are of any related liabilities or expected cash outflows or realising
tion, as modified by financial assets and financial liabilities at fair recognised on settlement date, the date on which the Company cash flows through sale of the assets;
value through profit or loss. commits to purchase or sell the asset. Regular way purchases • how performance of the Company of assets is evaluated and
or sales are purchases or sales of financial assets that require reported to management;
The preparation of financial statements in conformity with IFRS delivery of assets within the time frame established by regula- • the risks that affect the performance of the business model
requires the use of certain critical accounting estimates. It also requires tion or convention in the marketplace. (and the financial assets held within that business model) and
management to exercise its judgment in the process of applying how those risks are managed;
the Company’s accounting policies. The areas involving a higher At initial recognition, the Company measures financial assets at • how managers of the business are compensated (for example,
degree of judgment or complexity, or areas where assumptions its fair value plus, in the case of financial assets not at fair value whether the compensation is based on the fair value of the
and estimates are significant to the financial statements, are disclosed through profit or loss, transaction costs that are directly attrib- assets managed or on the contractual cash flows collected);
in Note 3. utable to the acquisition of financial assets. Transaction costs of • the frequency, volume and timing of sales of financial assets in
financial assets carried at fair value through profit or loss are prior periods, the reasons for such sales and expectations
Foreign currency translation expensed in the statement of income. about future sales activity.
(a) Functional and presentation currency The Company’s financial assets include cash and short-term The solely payment of principal and interest (SPPI) test
Items included in the financial statements are measured using deposits, investment in debt and equity securities, interest re- ‘Principal’ for the purpose of this test is defined as the fair value of
the currency of the primary economic environment in which the ceivable, receivables arising from insurance contracts and rein- the financial asset at initial recognition and may change over the
entity operates (the ‘functional currency’). The financial state- surance contracts and other loans and receivables. life of the financial asset (for example, if there are repayments of
ments are presented in thousands of Aruban Florins, which is principal or amortisation of the premium/discount). ‘Interest’ is
also the Company’s presentation and functional currency. Financial liabilities are initially measured at fair value, and, defined as consideration for the time value of money and for the
where applicable, adjusted for transaction costs. The Company’s credit risk associated with the principal amount outstanding during
(b) Transactions and balances in the financial statements financial liabilities include trade, intercompany and other payables. a particular period of time and other basic lending risks and costs,
Foreign currency transactions are translated into the functional as well as a profit margin.
currency using the exchange rates prevailing at the dates of the (b) Classification and subsequent measurement
transactions. Foreign exchange gains and losses resulting from Where the business model is to hold assets and collect contractual
the settlement of such transactions and from the translation at Debt instruments cash flows or to collect contractual cash flows and sell, the Com-
year-end exchange rates of monetary assets and liabilities de- Subsequent to initial recognition, the Company’s debt instru- pany assesses whether the financial assets’ cash flows represent
nominated in foreign currencies are recognized in the state- ments are measured in accordance with the business models solely payments of principal and interest. In making this assess-
ment of income. determined by the Company’s respective business units for ment, the business units consider whether the contractual cash
managing the asset and the cash flow characteristics of the flows are consistent with a basis lending arrangement i.e. the
Property, plant and equipment asset. There are three measurement categories into which the definition of interest. Where the contractual terms introduce ex-
All property, plant and equipment are stated at historical cost less Company classified its debt instruments: posure to risk or volatility that are inconsistent with a basic lending
depreciation. Historical cost includes expenditures that are directly arrangement, the related financial asset is classified and measured
attributable to the acquisition of the items. (i) Amortised cost: Assets that are held for collection of con- at fair value through profit or loss.
tractual cash flows where those cash flows represent sole-
Subsequent costs are included in the asset’s carrying amount or ly payments of principal and interest are measured at am- Equity instruments
recognized as a separate asset, as appropriate, only when it is ortised cost. The carrying amounts of these assets are Subsequent to initial recognition, the Company measures all equity
probable that future economic benefits associated with the item adjusted by any expected credit loss allowance recognised. investments at fair value, and changes in the fair value of equity
will flow to the Company and the cost of the item can be mea- In addition to certain debt securities, the Company’s loans instruments are recognised in the statement of income.
sured reliably. All other repairs and maintenance are charged to and receivables are carried at amortised cost.
the statement of income during the financial period in which they (ii) Fair value through other comprehensive income: Assets Financial liabilities
are incurred. that are held for collection of contractual cash flows and for Subsequent to initial recognition, the Company measures all financial
selling the financial assets, where the assets’ cash flows liabilities at amortised cost.
Depreciation on other assets is charged over the estimated useful represent solely payments of principal and interest, are
lives of the assets using the following rates and methods: measured at fair value through other comprehensive in-
come. Movements in the carrying amount are taken
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