Page 108 - RFHL ANNUAL REPORT 2024_ONLINE

106 Notes to the Consolidated Financial Statements
For the Year Ended September 30, 2024.
Expressed in millions of Trinidad and Tobago dollars, except where otherwise stated.

2. Material accounting policies (continued)

2.6 Summary of material accounting policies
a Cash and cash equivalents
For the purpose of presentation in the Consolidated statement of cash flows, cash and cash equivalents consist of
highly liquid investments including cash on hand, due from banks, Treasury Bills and bankers’ acceptances with
original maturities of three months or less. Bankers’ acceptances and due from banks with maturities greater than
three months are classified as investments.

b Statutory deposits with Central Banks
Deposits with the Central Banks and other regulatory authorities represent mandatory reserve deposits and are not
available for use in day-to-day operations. These amounted to $7.3 billion (2023: $7.8 billion).

c Financial instruments - initial recognition
i Date of recognition
Financial assets and liabilities, with the exception of loans and advances to customers and balances due
to customers, are initially recognised on the trade date, i.e. the date that the Group becomes a party to the
contractual provisions of the instrument. This includes regular way trades: purchases or sales of financial assets
that require delivery of assets within the time frame generally established by regulation or convention in the
market place. Loans and advances to customers are recognised when funds are transferred to the customers’
accounts. The Group recognises balances due to customers when funds are transferred to the Group.

ii Initial measurement of financial instruments
The classification of financial instruments at initial recognition depends on their contractual terms and the
business model for managing the instruments, as described in Note 2.6 (d) (i). Financial instruments are initially
measured at their fair value, except in the case of financial assets recorded at Fair Value through Profit or Loss
(FVPL), transaction costs are added to, or subtracted from, this amount.

iii Measurement categories of financial assets and liabilities
The Group classifies all of its financial assets based on the business model for managing the assets and the assets’
contractual terms, measured at either:
• Amortised cost, as explained in Note 2.6 (d) (i)
• FVPL, as explained in Note 2.6 (d) (ii)

Financial liabilities, other than loan commitments and financial guarantees, are measured at amortised cost.

d Financial assets and liabilities
i Other assets, Due from banks, Treasury Bills, Advances and Investment securities
The Group only measures Other assets, Due from banks, Treasury Bills, Advances to customers and Investment
securities at amortised cost if both of the following conditions are met:
• The contractual terms of the financial asset give rise on specified dates to cash flows that are Solely Payments
of Principal and Interest (SPPI) on the principal amount outstanding, and
• The financial asset is held within a business model with the objective to hold financial assets in order to
collect contractual cash flows.