Consolidated Annual Report 2016

35 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED CONSOLIDATED ANNUAL REPORT 2016 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2016 (Expressed in Barbados dollars) 23 2. Accounting Policies, continued 2.4 Changes in accounting policy and disclosures, continued IFRS 9 — Financial Instruments In July 2014, the IASB released the final version of IFRS 9 Financial Instruments . This standard addresses classification and measurement of financial assets and replaces the multiple category and measurement models for debt instruments in IAS 39, Financial Instruments: Recognition and Measurement, with a new mixed measurement model having only two categories: amortised cost and fair value through profit or loss. IFRS 9 also replaces the models for measuring equity instruments, and such instruments are recognised either at fair value through profit or loss or at fair value through other comprehensive income. Where such equity instruments are measured at fair value through other comprehensive income, dividends are recognised in profit or loss insofar as they do not clearly represent a return on investment; however, other gains and losses (including impairments) associated with such instruments remain in accumulated comprehensive income indefinitely. Requirements for financial liabilities carried forward existing requirements in IAS 39, except that fair value changes due to credit risk for liabilities designated at fair value through profit and loss would generally be recorded in the statement of other comprehensive income. It also includes guidance on hedge accounting. The standard is effective for annual periods beginning on or after January 1, 2018, with earlier application permitted. The Group is currently evaluating the impact of the standard on its financial statements. 3. Net Interest Income 2016 2015 Interest income Loans and advances $ 85,361,672 76,893,379 Financial investments 1,915,658 1,676,025 Cash resources 2,184,945 2,360,547 89,462,275 80,929,951 Interest expense Deposits 30,791,965 28,328,098 Loans payable 2,185,721 2,847,879 32,977,686 31,175,977 Net interest income $ 56,484,589 49,753,974