Nov 2019 Financial News

National Enterprises Limited - Notice of Reporting Modification

Nov 15, 2019

Pursuant to Section 64(1)b of the Securities Act 2012.

This notice is issued for shareholders' information.

NEL was created by the Government of the Republic of Trinidad and Tobago to give its citizens the opportunity to benefit from direct ownership of state-owned enterprises and a diversified portfolio of investments. It was intended that the benefit would take the form of cash flows from dividends and the capital appreciation of the investments in these companies.

National Enterprises Limited (NEL) had been presenting its financial statements using the equity accounting method for its investment in those companies where NEL holds at least 50% shareholding. In instances where NEL holds more than 50% shareholding but does not have the necessary control to consolidate as a subsidiary, specifically for Telecommunication Services of Trinidad and Tobago (TSTT) and Trinidad Nitrogen Company Limited, equity accounting was also applied.

Having considered NEL'.s initial mandate (2001) for the management of its investment in certain companies; given a change in accounting standards; and mindful of the objective of enhanced shareholder returns; it is appropriate to modify NEL'.s financial reporting to one of an investment company. This new approach will more accurately reflect the operations of the company and is in keeping with the treatment that International Financial Reporting Standard (IFRS) #10 requires.

A modification in the presentation of financial reporting from consolidation and equity accounting to investment entity fair value accounting will provide results that would better reflect the nature of NEL'.s operations and provide shareholders with a more transparent means of assessing the company's performance. This modification in financial reporting will be applied from the Financial Statements as at March 31, 2019.

For further information, please call (868) 612-1705 or 625-0015.
 

Source:
The Trinidad and Tobago Stock Exchange Limited
Friday 15th November, 2019