Caribbean Utilities Company, Ltd.  2011  Annual Report Management’s Discussion and Analysis 24 with Canadian GAAP requires  management to make estimates and  assumptions that affect the reported  amounts of assets and liabilities  and the disclosure of contingent  assets and liabilities at the date of  the financial statements and the  reported amounts of revenues  and expenses during the period. Estimates are based on historical  experience, current conditions  and various other assumptions  believed to be reasonable under  the circumstances. Due to changes  in facts and circumstances and the  inherent uncertainty involved in  making estimates, actual results may  differ significantly from the current  estimates. Estimates are reviewed  periodically and, as adjustments  become necessary, are reported in  earnings in the period in which they  become known. The Company’s  critical accounting estimates relate to: Revenue derived from the sale  of electricity is taken to income on  a bills-rendered basis, adjusted for  unbilled revenues. Customer bills are  Kilowatt-hour sales throughout the  month are based on meter readings  that establish electricity consumption  since the last meter reading. The  kWh accrual for the period is based  on estimated electricity sales to  The Company’s defined benefit  pension plan is subject to judgments  utilised in the actuarial determination  of the expense and related obligation.  There are currently two participants  in the Company’s defined benefit  pension plan. The main assumptions  utilised by Management in  determining pension expense and  obligations were the discount rate  for the accrued benefit obligation,  pension commencement date,  inflation and the expected rate of  return on plan assets. As at December  31, 2011, the Company had an  issued throughout the month based  on meter readings that establish  electricity consumption since the  last meter reading. The unbilled  revenue accrual for the period  is based on estimated electricity  sales to customers since the last  meter reading. The estimation  process for accrued unbilled  electricity consumption will result  in adjustments of electricity revenue  in the periods they become known  when actual results differ from the  estimates. As at December 31, 2011,  the amount of unbilled revenue  recorded in Accounts Receivable  - Trade was $4.6 million (December  31, 2010: $4.4 million). Consumers  are billed at the beginning of each  month leading to the accrual of  approximately three weeks of unbilled  revenue. customers since the last meter  reading. The estimation process for  electricity consumption will result in  adjustments of kWh sales statistics  in the periods they become known  when actual results differ from the  estimates. As at December 31, 2011,  the amount of estimated kWh sales  was 33.2 million kWh (2010: 36.2  million kWh). As bills are generated  at the beginning of each month it  is necessary to accrue for kWh for  accurate reporting.  Employee Future Benefits Kilowatt-hour Sales Revenue Recognition Selected Annual Financial Information (in $ thousands except Basic Earnings per Class A Ordinary Share, dividends paid per Class A Ordinary Share and where otherwise indicated Twelve Twelve  Twelve  months ended months ended  months ended  December 31, 2011 December 31, 2010  December 31, 2009  Operating revenues  218,099 180,096  158,809 Net earnings  20,390 19,879  20,013 Net earnings applicable to common shares  19,484 18,926  18,831 Total assets  421,820 398,964  399,546 Debt  208,448 195,290  200,159 Preference shares  250 250  250 Total shareholders’ equity  176,035 173,841  171,942 Earnings per Class A Ordinary Share  0.68 0.67  0.67 Diluted earnings per Class A Ordinary Share  0.68 0.67  0.67 Dividends declared per Class A Ordinary Share  0.660 0.660  0.660 Dividends declared per Class B Preference Shares including bonus  3.72 3.72  4.73