Page 102 - RB GRENADA ANNUAL REPORT 2025_ONLINE

102 • Republic Bank (Grenada) Limited 2025 Annual Report • FINANCIALS

Notes to the Financial Statements

For the year ended September 30, 2025. Expressed in Thousands of Eastern Caribbean dollars ($’000), except where otherwise stated.

2 Material accounting policies (continued)
2.5 Summary of material accounting policies (continued)

r Earnings per share
Data on basic earnings per share has been computed by dividing the net profit attributable to equity holders by the
weighted average number of ordinary shares in issue during the year.

s Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into Eastern Caribbean Dollars (the
Bank’s functional and reporting currency) at rates of exchange prevailing at the date of the Financial statement.
Non-monetary assets and liabilities are translated at historic rates. Revenue and expenses denominated in foreign
currencies are translated into Eastern Caribbean dollars at mid-exchange rates. Realised gains and losses on foreign
currency positions are reported in the Statement of income.

t 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 Statement of income in the expense category that is consistent with the function of the intangible
assets.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognised in the Statement of income when the
asset is derecognised.

u Revenue recognition
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the
customer at an amount that reflects the consideration to which the Bank expects to be entitled in exchange for
goods or services. Revenue is measured at the fair value of the consideration received or receivable, taking into
account contractually defined terms of payment and excluding taxes or duty. The Bank has concluded that it is the
principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements, has pricing
latitude and is also exposed to credit risks.

The specific recognition criteria described below must also be met before revenue is recognised.