Page 40 - Bahamas Waste inside pages

December 31, 2018
NOTES TO FINANCIAL STATEMENTS
(Expressed in Bahamian Dollars)
40
17. FINANCIAL RISk MANAgEMENT (CONTINuED)
Fair value hierarchy
When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level 1: Level 2:
Level 3:
Quoted market prices (unadjusted) in an active market for an identical instrument.
Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
18. CApITAL MANAgEMENT
The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions.
To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders, or issue new shares. No changes were made in the objectives, policies, or processes during the years ended December 31, 2018 and 2017.
The Company monitors capital ratios which compare income, assets, and liabilities to capital. The Company does not have any statutory or regulatory capital requirements and as such, management adjusts capital levels as required for the Company’s future development plans and returns the capital to its shareholders in line with the dividend policy approved by the Board of Directors (see Note 14).
19. SuBSEquENT EvENTS
There were no significant events occurring after the reporting period that require adjustment to or disclosure in the financial statements.
BAHAMAS WASTE LIMITED ANNUAL REPORT 2018