Non-Consolidated Annual Report 2018

40 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) 25 2. Accounting Policies, continued (e) Standards in issue but not yet effective, continued IFRS 9 Financial Instruments (cont’d) (ii) Classification – Financial assets (cont’d) Preliminary impact assessment (cont’d) • held-to-maturity investment securities measured at amortised cost under IAS 39 would in general also be measured at amortised cost under IFRS 9; • debt securities that are classified as available for sale under IAS 39 may, under IFRS 9, be measured at amortised cost, FVOCI or FVTPL, depending on the particular circumstances; • equity securities classified as available for sale under IAS 39 that are held for long-term strategic purposes would generally be designated as measured at FVOCI. The Credit Union’s assessment is however on-going and will include a detailed review of the contractual terms of all financial assets. At that stage, the final impact will be determined. (iii) Impairment of financial assets IFRS 9 replaces the ‘incurred loss’ model in IAS 39 with a forward ‑ looking ‘expected credit loss’ (ECL) model. This will require considerable judgement about how changes in economic factors affect ECLs, which will be determined on a probability ‑ weighted basis. The new impairment model will apply to the following financial instruments that are not measured at FVTPL: • financial assets that are debt instruments; • lease receivables; • financial guarantee contracts issued; and • loan commitments issued No impairment loss will be recognised on equity investments. Under IFRS 9, loss allowances will be measured on either of the following bases: • 12-month ECLs: these are ECLs that result from possible default events on a financial instrument within the 12 months after the reporting date; and • lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial instrument.