Consolidated Annual Report 2018

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2018 44 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2018 (Expressed in Barbados dollars) 29 2. Accounting Policies, continued (e) Standards in issue but not yet effective, continued IFRS 9 Financial Instruments , continued (iii) Impairment of financial assets, continued Preliminary impact assessment The most significant impact on the Credit Union’s financial statements from the implementation of IFRS 9 is expected to result from the new impairment requirements. The Credit Union is not yet able to provide quantitative information about the expected impact, since the Credit Union is in the process of building and testing models, assembling data and calibrating the impairment stage transfer criteria. However, the Credit Union expects loss allowances under IFRS 9 to be larger and more volatile than under IAS 39. (iv) Classification – Financial liabilities IFRS 9 largely retains the existing requirements in IAS 39 for the classification of financial liabilities. However, under IAS 39 all fair value changes of liabilities designated as at FVTPL are recognised in profit or loss, whereas under IFRS 9 these fair value changes will generally be presented as follows: • the amount of change in the fair value that is attributable to changes in the credit risk of the liability is presented in OCI; and • the remaining amount of change in the fair value is presented in profit or loss. The Credit Union has not designated any financial liabilities as at FVTPL and it has no current intention to do so. The Credit Union’s preliminary assessment did not indicate any material impact regarding the classification of financial liabilities under IFRS 9. (v) Disclosures IFRS 9 will require extensive new disclosures, in particular about credit risk and ECLs. The Credit Union’s assessment included an analysis to identify data gaps against current processes and the Credit Union is in the process of implementing the system and controls changes that it believes will be necessary to capture the required data. (vi) Transition Changes in accounting policies resulting from the adoption of IFRS 9 will generally be applied retrospectively, except as described below.