Non-Consolidated Annual Report 2018

38 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | NON-CONSOLIDATED ANNUAL REPORT 2018 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Non-consolidated Financial Statements For the year ended March 31, 2018 (Expressed in Barbados dollars) 23 2. Accounting Policies, continued (e) Standards in issue but not yet effective, continued IFRS 9 Financial Instruments IFRS 9 is effective for annual periods beginning on or after January 1, 2018, with early adoption permitted; the Credit Union is therefore required to adopt IFRS 9 from January 1, 2018. The standard replaces IAS 39 Financial Instruments: Recognition and Measurement and sets out requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell non ‑ financial items. (i) IFRS 9 Implementation Strategy The Credit Union’s IFRS 9 implementation process is governed by a Committee whose members include representatives from risk, finance, operations and IT functions. The Committee meets on a regular basis to challenge key assumptions, approve decisions and monitor the progress of the implementation work across the Credit Union, including evaluation of whether the project has sufficient resources. The Credit Union is in the process of completing a detailed impact assessment including most of the accounting analysis and will then commence work on the design and build of models, systems, processes and controls. (ii) Classification – Financial assets IFRS 9 contains a new classification and measurement approach for financial assets that reflects the business model in which assets are managed and their cash flow characteristics. IFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). The standard eliminates the existing IAS 39 categories of held to maturity, loans and receivables and available for sale. A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL: • the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and • the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.