Page 120 - RFHL ANNUAL REPORT 2025 ONLINE_NEW

118 • Republic Financial Holdings Limited 2025 Annual Report • FINANCIALS

Notes to the Consolidated Financial Statements

For the year ended September 30, 2025. 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.

An associate is an entity over which the Group has significant influence. Significant influence is the power to participate
in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.

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, 2024, except for
the adoption of new standards and interpretations below.

Several amendments and interpretations apply for the first time in 2025. 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.

IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 – Amendments to IAS 1 – Classification of
Liabilities as Current or Non-current and Non-current Liabilities with Covenants (effective January 1, 2024)
The IASB issued amendments to paragraphs 69 to 76 of IAS 1 Presentation of Financial Statements to specify the
requirements for classifying liabilities as current or non-current.

The amendments clarify:
• What is meant by a right to defer settlement
• That a right to defer must exist at the end of the reporting period
• That classification is unaffected by the likelihood that an entity will exercise its deferral right
• That only if an embedded derivative in a convertible liability is itself an equity instrument, would the terms of a liability
not impact its classification
• Disclosures