Consolidated Annual Report 2019

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2019 94 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) 79 27. Fair Value, continued 2018 Total Level 1 Level 2 Level 3 balance Investment securities Equity securities - FVOCI $ 1,623,030 - 318,565 1,941,595 - FVTPL - - 778,079 778,079 $ 1,623,030 - 1,096,644 2,719,674 The following table below shows a reconciliation of all movements in the fair value of financial investments categorised within Level 3 between the beginning and end of the reporting period. 2019 2018 Balance - beginning of year $ 1,096,644 1,085,704 Purchases 106,417 10,940 Balance – end of year $ 1,203,061 1,096,644 There were no transfers in or out of Level 3 during the year ended March 31, 2019 (2018: NIL). The financial investments classified as Level 3 securities are carried at cost as fair value cannot be reliably estimated. Therefore no significant unobservable inputs have been considered in determining its value. The application of sensitivity analysis is therefore not relevant. 28. Capital Management The Group’s objectives when managing capital, which is a broader concept than the ‘equity’ on the face of the consolidated statement of financial position, are: • To comply with the capital requirements set by the regulators of financial institutions where the Group operates; • To safeguard the Group’s ability to continue as a going concern so that it can continue to provide returns to its shareholder and benefits for other stakeholders; and • To maintain a strong capital base to support the development of its business. Capital adequacy and the use of regulatory capital are monitored daily by the Group’s management, employing techniques based on policies and guidelines regulated by both the Co-operative Societies Act and the Financial Institutions Act. The Group’s approach to managing capital did not change during the period.