Page 29 - Bahamas Waste inside pages

NOTES TO FINANCIAL STATEMENTS
(Expressed in Bahamian Dollars)
December 31, 2018
3. SuMMARY OF SIgNIFICANT ACCOuNTINg pOLICIES (CONTINuED)
Related parties
A related party is a person or entity that is related to the Company. A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.
(a) A person or a close member of that person’s family is related to the Company if that person:
(i) has control or joint control over the Company;
(ii) has significant influence over the Company; or
(iii) is a member of the key management personnel of the Company or of a parent of the Company.
(b) An entity is related to the Company if any of the following conditions applies:
(i) The entity and the Company are members of the same Company (which means that each parent,
4. CASH
subsidiary and fellow subsidiary is related to the others).
(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member
of a Company of which the other entity is a member).
(iii) Both entities are joint ventures of the same third party.
(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
(v) The entity is a post-employment benefit plan for the benefit of employees of either the Company or an
entity related to the Company.
(vi) The entity is controlled, or jointly controlled by a person identified in (a).
(vii) A person identified in (a) (i) has significant influence over the entity or is a member of the key
management personnel of the entity (or of a parent of the entity).
For the purpose of the statement of cash flows, cash comprises cash on hand and at the bank at the date of the statement of financial position.
The Company has an agreement with the RBC Royal Bank (Bahamas) Limited (RBC) for an overdraft facility of $300,000 (2017: $300,000). The facility is unsecured and bears interest at a rate of Nassau Prime interest rate +3.00% or 7.25% (2017 – +3.00% or 7.25%) per annum. The Company also maintains an overdraft facility at CIBC FirstCaribbean International Bank (Bahamas) Limited (CIBC) of $100,000 (2017: $100,000). The facility is unsecured and bears interest at a rate of Nassau Prime interest rate + 3.00% or 7.25% (2017 – +3.00% or 7.25%). At December 31, 2018 and 2017, the Company had $400,000 of undrawn funds available from its approved overdraft facilities. Additionally, the Company has undrawn facilities of $ $450,000 (2017 – $450,000) with CIBC in respect of the customs bonds and cheque guarantee. The Company also has an unsecured Corporate VISA facility from RBC with a limit of $50,000 (2017 – $50,000). As of December 31, 2018, none of this amount was used (2017 – $Nil).
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BAHAMAS WASTE LIMITED ANNUAL REPORT 2018