Jamaica Stock Exchange (JSE) advises that at a meeting of its Board of Directors held on July 20, 2016, the decision was taken to change its accounting policies with regard to the recognition of the value of its Land and Buildings in its financial statements.
JSE states that the change to be made is from the “cost model” to the “revaluation model” for land and buildings, as the latter model reflects the fair value of assets at the date of their most recent valuation, less subsequent depreciation and impairment. JSE notes that although both the cost and revaluation models are compliant with International Accounting Standards (IAS 16 – Plant Property & Equipment), the revaluation model is considered best practice for listed companies and will, in the board’s opinion, present a more realistic view of the JSE’s assets, liabilities and equity.
JSE advises that this accounting policy change will result in an increase of the JSE’s Total Assets by approximately one hundred and forty one million Jamaican dollars (J$141m) based on the professional valuation performed during June 2016. A Revaluation Surplus Reserve, which will form a part of shareholders’’ equity, will also be created in the same amount and both will be reflected in the JSE’s Financial Statements for July 2016 onward and quarterly reports from September 2016 onward.
