Page 98 - RFHL ANNUAL REPORT 2024_ONLINE

96 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)
2.2 Basis of consolidation (continued)

Subsidiaries are all entities over which the Group has the power to direct the relevant activities, have exposure or rights
to the variable returns and the ability to use its power to affect the returns of the investee, generally accompanying a
shareholding of more than 50 percent of the voting rights.

When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
facts and circumstances in assessing whether it has power over an investee, including:
• The contractual arrangement with the other vote holders of the investee
• Rights arising from other contractual arrangements
• The Group’s voting rights and potential voting rights

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes
to one or more of the three elements of control.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated
from the date that control ceases and any resultant gain or loss is recognised in the Consolidated statement of income.
Any investment retained is recognised at fair value.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

Non-controlling interests represent interests in subsidiaries not held by the Group.

2.3 Changes in accounting policies
The accounting policies adopted in the preparation of the Consolidated financial statements are consistent with those
followed in the preparation of the Group’s annual financial statements for the year ended September 30, 2023, except
for the adoption of new standards and interpretations below.

Several amendments and interpretations apply for the first time in 2024. These are also described in more detail below.
The Group has not early adopted any standards, interpretations or amendments that have been issued but are not yet
effective.

IFRS 17 Insurance Contracts (effective January 1, 2023)
In these Consolidated financial statements, the Group has applied IFRS 17 Insurance Contracts for the first time. IFRS 17
replaces IFRS 4 Insurance Contracts for annual periods beginning on or after January 1, 2023.

The Group has applied the transitional provisions to IFRS 17. The nature of the changes in accounting policies can be
summarised, as follows:

Changes to classification and measurement
The adoption of IFRS 17 did not change the classification of the Group’s insurance and reinsurance contracts.

IFRS 17 establishes specific principles for the recognition and measurement of insurance contracts issued and reinsurance
contracts held by the Group. The Group’s General and Life insurance contracts issued and related reinsurance contracts
held are eligible to be measured using the Premium Allocation Approach (‘PAA’). All other insurance contracts issued
and held by the Group are required to be measured using the General Measurement Model (‘GMM’).