Page 122 - RFHL ANNUAL REPORT 2024_ONLINE

120 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 (continued)
t Earnings per share (continued)

The difference between the weighted average number of shares used as the denominator in calculating basic
earnings per share and that used for calculating diluted earnings per share is due to share options granted during
the year.

u Foreign currency translation
The individual financial statements of each Group entity is presented in the currency of the primary economic
environment, in which the entity operates (its functional currency). The Consolidated financial statements are
expressed in Trinidad and Tobago dollars, which is the functional currency of the parent.

Monetary assets and liabilities of the parent, which are denominated in foreign currencies are expressed in Trinidad
and Tobago dollars at rates of exchange ruling on September 30. Non-monetary assets and liabilities denominated
in foreign currencies are translated at historic rates. All revenue and expenditure transactions denominated in foreign
currencies are translated at mid-exchange rates and the resulting profits and losses on exchange from these trading
activities are dealt with in the Consolidated statement of income.

The assets and liabilities of subsidiary companies are translated into Trinidad and Tobago dollars at the mid-rates of
exchange ruling at the Consolidated statement of financial position date (except for the subsidiary bank in Suriname,
where the rates were impacted by the economy of which was considered hyperinflationary on July 1, 2021), and all
resulting exchange differences are recognised in OCI. All revenue and expenditure transactions are translated at an
average rate.

The results and financial position of a Group entity whose functional currency is the currency of a hyperinflationary
economy shall be translated into a different presentation currency using the following procedure: all amounts (i.e.
assets, liabilities, equity items, income and expenses, including comparatives) shall be translated at the closing rate
at the date of the most recent Statement of financial position date.

When amounts are translated into the currency of a non-hyperinflationary economy, comparative amounts shall
be those that were presented as current year amounts in the prior year financial statements (i.e. not adjusted for
subsequent changes in the price level or subsequent changes in exchange rates).

v Intangible assets
The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following
initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated
impairment losses.

The useful lives of intangible assets are assessed as finite and are amortised over the useful economic life and assessed
for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period
and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each
reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic
benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and
are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is
recognised in the Consolidated statement of income in the expense category that is consistent with the function of
the intangible assets.