SANDYPORT HOMEOWNERS ASSOCIATION LIMITED

NOTES TO THE AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in Bahamian Dollars)

1. GENERAL INFORMATION

Sandyport Management Association Limited was incorporated under the laws of The Commonwealth of The Bahamas on May 25, 1990 as a wholly-owned subsidiary of Sandyport Development Association Limited (“Devco”). On September 14, 1998, the name of the Association was changed to Sandyport Homeowners Association Limited (the “Homeowners Association”).

On May 21, 2008, ownership of the common areas and common infrastructure of the Sandyport residential community was transferred from Devco to the Homeowners Association.

The principal activity of the Homeowners Association is to manage the Sandyport residential community in accordance with the terms of the authority granted to Devco by licenses issued to each property owner defining their rights and obligations in regard to the common areas. Devco assigned the said authority under these licenses to the Homeowners Association on November 3, 2009.

On January 2, 2010, Devco transferred the ownership of the Homeowners Association to the property owners of the Sandyport residential community. As at December 31, 2022 the Homeowners Association had 35 employees (2021: 27).

2. STATEMENT OF COMPLIANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS

The Homeowners Association’s audited financial statements are prepared in accordance with International Financial Reporting Standards (“IFRSs”) as issued by the International Accounting Standards Board (“IASB”) and are presented in Bahamian dollars, the Homeowners Association’s reporting currency.

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). The Homeowners Association has elected to present “the Statement of Maintenance Fund