Page 28 - Bahamas Waste inside pages

December 31, 2018
NOTES TO FINANCIAL STATEMENTS
(Expressed in Bahamian Dollars)
3. SuMMARY OF SIgNIFICANT ACCOuNTINg pOLICIES (CONTINuED)
Expense Recognition
Expenses are recognized in the statement of comprehensive income when there is a decrease in future economic benefit related to a decrease in an asset or an increase in a liability has arisen that can be measured reliably.
Taxes
There are no income taxes imposed on the Company in the Commonwealth of The Bahamas. However, effective January 1, 2015, the Bahamas introduced Value Added Tax (VAT) at a standard rate of 7.5% which was increased to 12% effective July 1, 2018. VAT is billed on all services rendered and paid on all goods and services consumed. The difference between amounts billed and paid in connection with VAT is reflected in the statement of financial position as Value added tax payable. Such amount is payable monthly in accordance with the Company’s filing requirements. The Company is also liable for a business license fee which is calculated at 1.25% of turnover, as defined in the Bahamas Business License Act, from the preceding calendar year.
provisions
A provision is recognized in the statement of financial position when the Company has a legal or constructive obligation as a result of a past event, it is probable that an outflow of economic resources will be required to settle the obligation and the amount can be reasonably estimated. Any provision for warranties is based on estimates made by management from historical data. Management is of the view that no provision is necessary as of December 31, 2018 (2017 – $Nil).
Employee benefits
The Company recognizes a liability net of amounts already paid and an expense for services rendered by employees during the accounting period. Short-term benefits given by the Company to its employees include salaries and wages, insurance, profit sharing and bonuses, and other monetary benefits. The Company’s pension plan is a defined contribution plan under which the Company pays fixed contributions into a separate entity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to the defined contribution pension plan are recognized as an employee benefit expense in profit or loss when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available.
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BAHAMAS WASTE LIMITED ANNUAL REPORT 2018