Page 146 - RFHL ANNUAL REPORT 2025 ONLINE_NEW

144 • 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)
2.6 Summary of material accounting policies (continued)

z Customers’ liabilities under acceptances, guarantees, indemnities and letters of credit
These represent the Group’s potential liability, for which there are equal and offsetting claims against its customers in
the event of a call on these commitments. These amounts are not recorded on the Group’s Consolidated statement
of financial position but are detailed in Note 31 (b) of these Consolidated financial statements.

aa Equity reserves
The reserves recorded in equity on the Group’s Consolidated statement of financial position include:

Stated capital – ordinary stated capital is classified within equity and is recognised at the fair value of the consideration
received by the Group.

Translation reserves – used to record exchange differences arising from the translation of the net investment in foreign
operations

Unallocated shares – used to record the unallocated portion of shares purchased for the staff profit sharing scheme.
Such shares are presented in the notes to the Consolidated financial statements and are stated at cost.

Other reserves – represents regulatory reserve requirements for certain subsidiaries in the Group.

Statutory reserves that qualify for treatment as equity are discussed in Note 2.6 (r).

ab Hyperinflation
In 2021 the economy of Suriname was classified as a hyperinflationary economy under IAS 29 ‘Financial Reporting
in Hyperinflationary Economies’. Starting from July 2025, the economy of Suriname ceased to be classified as a
hyperinflationary economy. Therefore, all non-monetary items are presented in units of measure as of September 30,
2025.

ac Comparative information
Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current year.
These changes had no impact on the Group’s net assets, profit for the year and retained earnings for the year ended
September 30, 2024.

3 Significant accounting judgements, estimates and assumptions in applying the Group’s
accounting policies

The preparation of the Group’s Consolidated financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures
and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Other disclosures relating to the Group’s exposure to risks and uncertainties include:
a Risk management (Note 22)
b Capital management (Note 24)