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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)
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2.
Accounting Policies...(continued)
(c) Summary of significant accounting policies...(continued)
d) Financial instruments...(continued)
Financial liabilities
The Credit Union’s financial liabilities include customer deposits, loans payable, reimbursable
shares and other liabilities. The Credit Union determines the classification of its financial
liabilities at initial recognition. All financial liabilities are recognised initially at fair value and in the
case of loans payable, net of directly attributable transaction costs.
After initial recognition, interest bearing loans and borrowings are subsequently measured at
amortised cost using the effective interest rate method. Gains and losses are recognised in the
statement of income when the liabilities are derecognised as well as through the effective
interest rate method (EIR) amortisation process. The EIR amortisation, if any, is included in the
statement of income.
A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires.
e)
Reimbursable shares
Reimbursable shares represent amounts due to the estates of deceased members.
f)
Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually
for impairment. Assets that are subject to amortisation are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs
to sell and value in use. Non-financial assets that suffered impairment are reviewed for possible
reversal of the impairment at each reporting date. Impairment losses are recognised in the
statement of income.
g)
Offsetting financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the statement
of financial position if, and only if, there is a currently enforceable legal right to offset the
recognised amounts and there is an intention to settle on a net basis, or to realise the asset and
settle the liability simultaneously.