Consolidated Annual Report 2014

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED ANNUAL REPORT 2014 59 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2014 (Expressed in Barbados dollars) 45 20. Statutory Reserves 2014 2013 Statutory reserve (i) $ 81,891,199 71,494,178 General reserve (ii) - 46,044 $ 81,891,199 71,540,222 (i) Statutory reserve The movement in this reserve during the year is as follows: 2014 2013 Balance, beginning of year $ 71,494,178 62,907,875 Transfers to reserve – statutory * 4,382,960 4,135,300 Transfer to reserve – statutory ** 167,746 - Transfers to reserve - voluntary 5,824,590 4,433,568 81,869,474 8,568,868 Entrance fees 21,725 17,435 Balance, end of year $ 81,891,199 71,494,178 * Section 197(2) of the Co-operative Societies (Amendment) Act 2007-39 requires for the Credit Union that an appropriation equivalent to the greater of one half of one per cent (0.5%) of total assets or twenty-five per cent (25%) of net surplus shall be credited to the reserve fund annually until capital equals ten per cent (10%) of total assets. The Registrar of Co-operatives may increase the appropriation amount to forty per cent (40%) of net surplus or one per cent (1%) of total assets in certain circumstances. ** Under the provisions of the Financial Institutions Act, a subsidiary is required to transfer a minimum of 15% of its after tax profits to a reserve fund until such fund equals the share capital. A transfer of $167,746 was required during 2014 (2013 - Nil). (ii) General reserve The general banking reserve of a subsidiary represents an appropriation of retained earnings equivalent to the excess of loan loss reserve requirement in accordance with statutory requirements compared to the loan loss provision calculated in accordance with IFRS. However, where the IFRS loan loss reserve exceeds the statutory requirements, the amount previously appropriated is released to retained earnings. During the year, an amount of $4 6 ,044 (2013 - $nil) was transferred from the general reserve to retained earnings . i t r, t f , ( 13 - il) s tr sfer ed fro the general reserve to retained earni gs.