b'FORGING TRANSFORMATION. FOSTERING SUSTAINABILITY. NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018(Expressed in Trinidad and Tobago Dollars)4.Summary of significant accounting policies (continued)h.Property, plant and equipment (continued)Freehold and leasehold properties2% on buildingsImprovements to premises:OwnedEqual annual instalments over a period of ten yearsLeasedEqual annual instalments over the period of the leaseMachinery, equipment, furniture and fixturesMachinery 7.5% - 25%Artwork and motor vehicles25%Gains and losses on disposal of property, plant and equipment are determined by comparing proceeds with their carrying amount and are recognised in the revenue and expenditure accounts.i.Properties being developed for sale (Inventory)Properties available for sale are carried at cost less provisions for impairment. The provision is estimated as the difference between the cost and the selling price of the units available for sale less the estimated cost to complete the units.j.ProvisionsProvisions for environmental restoration, restructuring costs and legal claims are recognised when: the NIBTT has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Restructuring provisions comprise lease termination penalties and employee termination payments. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.k.Basis of allocationContribution income and other income have been allocated to the various fund accounts on the basis set out in the Actuarial Review.i.Contribution incomeContribution income is allocated as follows:20182017%%Long-term benefits fund8989Short-term benefits fund66Employment injury benefit fund5510010045'