Page 37 - Annual Report 2017

December3 1,2017
(expressed in United States Dollars)

1 General information

Caribbean Electric Utility Services Corporation ('CARILEC' or 'the Company') was incorporated as a not·for·profit company under the
Companies Act 1996 in Saint Lucia on March 20, 2000. CARILEC has no authorised share capital and its operations are to be carried
on without pecuniary gain to its members and any profits or other accretions to the assets of CARILEC are to be used in furthering its
undertaking. CARILEC is also exempt trom incorne tax under Section 25 of the Saint Lucia Income Tax Act. The principal activity of
CARILEC is the advancement of the capability of the Caribbean electric utility industry through the provision of training, conferences,
consulting, information services, technical assistance and other support services.
The registered office and principal place of business of the Company is Sans Souci, Castries, Saint Lucia.

2 Summary of sig nifica nt accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been
consistently applied to ail the years presente d, unless othelWise stated.

Basis of preparation
The accompanying financial statements of the Company have been prepared in accordance with International Financial Reporting
Standards (IFRS) and under the historical cost convention, as modified by the revaluation of available-for-sale financial assets.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a
higher degree of judgement or complexity or areas where assumptions and estimates are significant to the financial statements are
disclosed in Note 4.
Changes in accounting policy and disclosures
la) New and revised standards that are effective for an nuaI periods beginning on or after January 1, 2017.
• There are no IFRSs or IFRIC interpretations that are effective for the fi rst time for the financial year beginning on or after January
1, 2017 that would be expected to have a material impact on the Company.
lb) New standards, amendments and interpretations issued and effective for the financial year beginning January 1,20167
and not early adopted
At the date of the authorisation of these financial statements, certain new standards and amendments to existing standards have
been published by the IASB that are not yet effective, and have not been adopted early by the Company. Information on those
expected to be relevant to the Company's financial statements is provided below.
Management anticipates that ail relevant pronouncements will be adopted in the Company's accounting policies for the first
period beginning after the effective date of the pronouncement. New standards, interpretations and amendments not either
adopted or listed below are not expected to have a material impact on the Company's financial statements.
• IERS 9, 'Einanciallnstruments' The IASB recently released IERS 9 'Einancial lnstruments' (2014), representing the completion
of its project to replace lAS 39 'Financiallnstruments: Recognition and Measurement'. The new standard introduces extensive
changes to lAS 39's guidance on the classification and measurement of financial assets and introduces a new 'expected credit
loss' model for the impairment of financial assets. IFRS 9 also provides new guidance on the application of hedge accounting.
The Company has yet to assess the impact of IFRS 9 on the Company's financial statements. The new standard is required to be
applied for an nuai reporting periods beginning on or aher January 1, 2018.
• IFRS 15 'Revenue fram Contracts with Customers' (effective for reporting periods beginning on or after January 1, 2018.
IFRS 15 presents new requirements for the recognition of revenue, replacing lAS 18 'Revenue', lAS 11 'Construction Contracts',
and several revenue-related Interpretations. The new standard establishes a control·based revenue recognition model and
provides additional guidance in many areas not covered in detail under existing IFRSs, including how to account for
arrangements with multiple perlormance obligations, variable pricing, customer refund rights, supplier repurchase options,
and other common complexities. The Company has yet to assess the impact of IFRS 15 on the financial statements.