b'A N N U A L R E P O R T 2 0 1 7 - 2 0 1 8NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS30th June 2017(Expressed in Trinidad and Tobago Dollars)4.Summary of significant accounting policies (continued)k.Basis of allocation (continued)ii.Other incomeOther income comprising investment income less expenses, penalty income and pension asset income is allocated to the benefit funds in the ratio of their opening fund balances.Investment expenses comprise direct staff costs and overhead expenses of the investments department and other direct expenses including mortgage management fees and provisions for diminution in value of investments.iii. Fund ratiosBased on the recommendations of the Eighth Actuarial Review and maintained in the Ninth Actuarial Review, NIBTT implemented the following: short-term benefit fund and employment injury benefit fund balances will be maintained at 2.0 times and 10 times the respective benefits incurred during the current year, the remaining excess of income over expenditure is to be allocated to the long-term benefit fund.These fund allocations are based solely on the ratios recommended by the independent actuary and do not represent NIBTTs liability to beneficiaries at 30 June 2018.l.Revenue recognitioni.Contribution and benefitsContributionincomeisgenerallyaccountedforonthecashbasis.Anaccrualismadeatthe statement of financial position date to take account of all collections up to 15 July of the following year that relate to the current year. Where the 15 July occurs on a weekend or a public holiday, the following working day will be used to process the accrual. Contribution arrears and related penalty and interest are recognised when received as a result of uncertainty in collection and the challenge in estimating and determining contributors in default. Benefit expenditure is generally accounted for on a cash basis. Benefits paid in the final month of the year which relate to the following year are reflected as a prepayment at the statement of financial position date.ii.Investment incomeIncome from investments is accounted for on the accrual basis. Interest from commercial loans and debentures is not accrued where instalments are in arrears for more than twelve months.m.Employee benefitsi.Short termEmployee benefits are all forms of consideration given by NIBTT in exchange for service rendered by its employees. These include current or short-term benefits such as salaries, bonuses, NIS contributions, annual leave, and non-monetary benefits such as medical care and loans; post-employment benefits such as pensions; and other long-term employee benefits such as termination benefits.Employee benefits that are earned as a result of past or current service are recognised in the following manner: short-term employee benefits are recognised as a liability, net of payments made, and charged as expense. Post-employment benefits are accounted for as described on the next page.46'