Page 126 - RFHL ANNUAL REPORT 2025 ONLINE_NEW

124 • 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)
2.5 Improvements to IFRS Accounting Standards (continued)

IFRS Subject of Amendment

IFRS 1 First-time Adoption of International Financial Reporting Standards – Hedge accounting by a first-
time adopter
IFRS 7 Financial Instruments: Disclosures – Gain or loss on derecognition
IFRS 7 Financial Instruments: Disclosures – Disclosure of deferred difference between fair value and
transaction price
IFRS 7 Financial Instruments: Disclosures – Introduction and credit risk disclosures
IFRS 9 Financial Instruments – Lessee derecognition of lease liabilities
IFRS 9 Financial Instruments – Transaction price
IFRS 10 Consolidated financial statements – Determination of a ‘de facto agent’
IAS 7 Statement of cash flows – Cost method

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 $7.7 billion (2024: $7.3 billion). The Group has $1.6 billion
(2024: $1.3 billion) held with Central Banks above the Statutory limit and is disclosed in cash and cash equivalents.

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 FVPL, transaction costs are added to, or subtracted
from, this amount.