Non-Consolidated Annual Report 2014

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED

NON-CONSOLIDATED ANNUAL REPORT 2014

BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED

Notes to the Non-consolidated Financial Statements

For the year ended March 31, 2014

(Expressed in Barbados dollars)

Accounting Policies...(continued)

(b) Significant accounting judgments, estimates and assumptions...(continued)

Measurement of fair values

A number of the Credit Union’s accounting policies and disclosures require the measurement of fair

values, for both financial and non-financial assets and liabilities.

The Credit Union has an established control framework with respect to the measurement of fair values.

This includes the services of a professional valuation team that has overall responsibility for

overseeing all significant fair value measurements, including Level 3 fair values. This team reports

directly to the Credit Risk Manager. They also review market estimates where assets and liabilities are

traded in active markets.

Significant valuation issues are reported to the Asset Liability Committee (ALCO) which has oversight

of the Credit Union’s investment policy. This Committee meets quarterly to review any challenges as it

relates to the carrying value of the Credit Union’s assets and liabilities.

When measuring the fair value of an asset or a liability, the Credit Union uses market observable data

as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on

the inputs used in the valuation techniques as disclosed in Note 24.

If the inputs used to measure the fair value of an asset or a liability might be categorized in different

levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the

same level of the fair value hierarchy as the lowest level input that is significant to the entire

measurement.

The Credit Union recogni

es transfers between levels of the fair value hierarchy at the end of the

reporting period during which the change has occurred.