Page 36 - GROUP 3 NAKED HOTEL LIMITED ANNUAL REPORT

NOTES TO THE FINANCIAL

STATEMENTS

1. Identification
Naked Hotel Limited is a public company that was incorporated on July 4, 1998, in Jamaica. It
started operation on January 2, 2001 and made its initial public offering (IPO) on July 3, 2009.
The company’s shares are quoted on the Jamaica stock exchange. Naked Hotel Limited is located
at 00 Gloucester Avenue, Montego Bay, Jamaica, West Indies. The Hotel caters for, and provides
an all-inclusive atmosphere for adults.

2. Significant Accounting Policies

a) Statement of Compliance
The financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRS) issued by the International Accounting Standards Board (IASB), interpretations
issued by the International Financial Interpretation Committee of the IASB, and recommendations
by the Institute of Chartered Accountants of Jamaica and comply with the provisions of the
Companies Act.
b) Basic of Preparation
The financial statements are presented in Jamaican dollars ($) which is the measuring currency of
the company.

The financial statements are prepared under the historical cost convention.
The preparation of the financial statements in accordance with IFRS requires management to make
estimates and assumptions that affect the reported amount of assets, liabilities and contingent
assets and liabilities at the Balance Sheet date and the income and expenses for the year then ended.
Actual amounts could differ from those estimates.

c) Depreciation
Depreciation is calculated on the straight-line method at a rate estimated to write off the assets
over their expected useful lives. Annual rates are as follows:

On cost %
Buildings 2½%
Furniture and fittings 10%
Equipment 20 %
The cost of land is $30,250,000. Land is not depreciated.

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