SANDYPORT HOMEOWNERS ASSOCIATION LIMITED

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021 (CONTINUED)

(Expressed in Bahamian dollars)

3.BASIS OF PREPARATION

a. Presentation of financial statements - The financial statements are presented in accordance with IAS 1, Presentation of Financial Statements (Revised 2007).

b. Management’s use of judgments and estimates - The Association uses accounting estimates and assumptions in the preparation of the financial statements. Although these estimates are based on management’s best knowledge of current events and transactions, actual results may ultimately differ from those estimates. The effect of any changes in estimates will be recorded in the Association’s financial statements when determinable. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

4.NEW OR REVISED STANDARDS OR INTERPRETATIONS

Overall considerations

The Association has not applied the following new and revised IFRSs that have been issued but are not yet effective.

•Amendments to IAS 16, Property, plant and equipment - Proceed before intended use*

•Amendments to IAS 37, Onerous Contracts - Costs of Fulfilling Contract*

•Amendments to IFRS 3, Business Combinations - Reference to Conceptual Framework*

•Annual Improvements to IFRS Standards 2018-2020, IFRS 9 and IFRS 16*

•Amendments to IAS 1, Classification of Liabilities**

•Amendments to IAS 1 and Practice Statement 2, Disclosure of Accounting Policies**

•Amendments to IAS 8, Definition of Accounting Estimates**

•Amendments to IAS 12, Deferred Tax related to Assets and Liabilities arising from a single transaction**

*Effective for annual periods beginning on or after January 1, 2022.

**Effective for annual periods beginning on or after January 1, 2023