ITF Trust Accounts 2019 Financial Statements

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NOTES (CONT.) (FORMING PART OF THE FINANCIAL STATEMENTS) 36. Financial instruments (continued) (e) Market risk (continued) Sensitivity (f) Capital management 37. Equity The following table shows a breakdown of the balance sheet line item 'Equity' and the movements during the year. Hedging Foreign Retained Total reserve currency earnings translation $000 $000 $000 $000 Equity Balance at 1 January 2018 1,199 (145) 56,772 57,826 Deficit for the year - - (5,489) (5,489) Other comprehensive loss (2,829) (38) - (2,867) Balance at 31 December 2018 (1,630) (183) 51,283 49,470 Balance at 1 January 2019 (1,630) (183) 51,283 49,470 Surplus for the year - - 5,893 5,893 Other comprehensive income 2,348 13 - 2,361 Balance at 31 December 2019 718 (170) 57,176 57,724 After consolidation, the group has no share capital or equivalent balances within equity. 38. Operating leases Non-cancellable operating lease rentals are payable as follows: 2018 $000 Less than one year 638 Between one and five years 1,991 Greater than five years - 2,629 39. Contingencies and capital commitments There were no contingencies provided for at 31 December 2019. There were no capital commitments at 31 December 2019. 40. Subsequent events Increases and decreases in the world equity markets have a material effect on the group's post-tax surplus for any year. The group has identified the MSCI World Index to be reflective of movements in world equity prices. Based on recent volatility an increase of 26.6% and a decrease of 9.5% are reasonably possible for which the impact on the group's post-tax surplus is estimated to be: There were no material subsequent events after the balance sheet date. The group's main assets are its investments and deposits, the management of which is charged to specialist investment managers who operate under investment guidelines which are regularly reviewed by the directors. There is a combined risk on this asset – firstly, the performance of the investment managers, and secondly, the performance of the bond and equity markets. The directors have taken a prudent view of future returns from the investments in their long-term financial planning and estimates. MSCI increase 26.6% - 2019 post-tax surplus increases by $8,072,000; MSCI decrease 9.5% - 2019 post-tax surplus decreases by $1,912,000. 32

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