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)

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.

Reimbursable shares

Reimbursable shares represent amounts due to the estates of deceased members.

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.

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.