Non-Consolidated Annual Report 2018

58 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) 43 16. Loans Payable Loans payable is comprised of the following: 2018 2017 Housing Credit Fund $ - 5,317,376 $ - 5,317,376 The Housing Credit Fund loans are repayable over twenty-five years and are secured by an equivalent value of first legal mortgages over residential properties. The interest rate on all loans at year end was 3.00% (2017 – 3.00%). During the year, the Credit Union fully repaid the remainder of its Housing Credit Fund loans. The Credit Union has not had any defaults of principal and interest or other breaches with respect to its loans payable during the years ended March 31, 2018 and 2017. 17. Other Liabilities Other liabilities is comprised of the following: 2018 2017 Accounts payable and accrued expenses $ 4,790,935 4,166,362 Amounts payable re Goodwill Credit Union (Note 26) 89,144 90,396 Fair value adjustment - staff loans (i) 2,910,176 3,208,731 Interest rebate payable 203,026 203,026 Unallocated receipts to members 2,092,161 713,015 $ 10,085,442 8,381,530 (i) Fair value adjustment staff loans The fair value adjustment - staff loans represents the deferred interest income on staff loans associated with the difference between the market value and the carrying value of the loans as a result of the interest rates on the staff loans being lower than the market interest rate. This balance is partially offset by the prepaid employee benefit recorded and included in other assets (Note 14). The deferred interest income will be recognised over the term of the staff loans.