Consolidated Annual Report 2019

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2019 54 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2019 (Expressed in Barbados dollars) 39 12. Financial Investments, continued The movement in expected credit loss allowance is as follows: Note 2019 2018 Balance at beginning of year $ - - Impact of IFRS 9 2(b) 2,636,001 - Balance at beginning of year (adjusted) 2,636,001 - Derecognition of expected credit loss allowance (ii) (1,828,217) - Expected credit loss on investments (110,000) - Balance at end of year $ 697,784 - (i) On October 1, 2018, the Government of Barbados restructured all of its treasury notes and debentures and some state owned debt resulting in the derecognition of the existing debt securities given the contractual cash flows of the new debt securities were significantly different. The carrying value of those debt securities was $20,369,309 (i.e. gross carrying value of $22,197,526 net of expected credit allowance of $1,828,217). The new series B and D bonds issued by the Government of Barbados effective October 1, 2018 was $16,331,378, resulting in a derecognition loss on investments of $4,037,931 which was recognized in the consolidated statement of income. $35,642 and $662,142 of the expected credit loss allowance at March 31, 2019 relate to debt securities classified as stage 1 and stage 3 respectively. 13. Loans and Advances (i) Loans and advances are comprised of the following: 2019 Consumer Business Mortgages Total Gross loans $ 744,604,500 34,611,621 476,186,497 1,255,402,618 Less: ECL allowance *** (21,085,445) (883,022) (6,185,296) (28,153,763) $ 723,519,055 33,728,599 470,001,201 1,227,248,855 Add: interest receivable 8,511,040 $ 1,235,759,895 *** Included in expected credit loss allowance as at March 31, 2019, is a provision for the undrawn loan commitments of $231,587.