Consolidated Annual Report 2019

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2019 68 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) 53 22. Statutory Reserves, continued * Section 197(2) of the Co-operative Societies (Amendment) Act 2007-39 requires for the Group that an appropriation equivalent to the greater of one half of one per cent (0.5%) of total assets or twenty-five per cent (25%) of net surplus shall be credited to the reserve fund annually until capital equals ten per cent (10%) of total assets. The Registrar of Co-operatives may increase the appropriation amount to forty per cent (40%) of net surplus or one per cent (1%) of total assets in certain circumstances. ** Under the provisions of the Financial Institutions Act, a subsidiary is required to transfer a minimum of 15% of its after tax profits to a reserve fund until such fund equals the share capital. A transfer of $71,127 was required during 2019 (2018 - $84,253). 23. Other Reserves 2019 2018 Fair value reserve (i) $ 1,384,868 1,154,631 Special funds (ii) 803,309 697,258 Donated equity (iii) 26,909 26,909 Defined benefit plan (iv) (546,240) 1,001,965 Reserve for interest on non-performing loans (v) 3,234,150 2,972,743 $ 4,902,996 5,853,506 Fair value reserve The fair value reserve represents the net effect of fair value gains or losses on FVOCI (2018 – available for sale) investment securities held. The movement on the fair value reserve for the year is as follows: 2019 2018 Balance, beginning of year $ 1,154,631 1,449,287 Unrealised fair value gain (loss) 230,237 (294,656) Balance, end of year $ 1,384,868 1,154,631