SANDYPORT HOMEOWNERS ASSOCIATION LIMITED

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

(Expressed in Bahamian Dollars)

3. BASIS OF PREPARATION (CONTINUED) b. Management’s use of judgments and estimates

The Homeowners 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 Homeowners 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

New and revised standards that are effective for annual periods beginning on or after January 1, 2023

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

• 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*

• Amendments to IFRS 17, Insurance Contracts*

• Amendments to IFRS 10 and IAS 28, Sale or contribution of assets between an investor and its associate or joint venture**

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

**In December 2015, the IASB decided to defer the application date of this amendment until such time as the IASB has finalized its research project on the equity method.