Non-Consolidated Annual Report 2020

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | NON-CONSOLIDATED ANNUAL REPORT 2020 57 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Non-consolidated Financial Statements For the year ended March 31, 2020 (Expressed in Barbados dollars) 40 19. Statutory Reserves Section 197(2) of the Co-operative Societies (Amendment) Act, 2007-39 requires for the Credit Union 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. The movement in these reserves during the year is as follows: 2020 2019 Balance, beginning of year $ 134,058,639 120,529,279 Transfers to reserve - statutory 7,363,561 6,761,585 Transfers to reserve - voluntary - 6,734,415 7,363,561 13,496,000 141,422,200 134,025,279 Entrance fees 30,505 33,360 Balance, end of year $ 141,452,705 134,058,639 20. Other Reserves Other reserves is comprised of the following: 2020 2019 Fair value reserve (i) $ 1,406,356 1,055,000 Special funds (ii) 1,070,138 803,309 Donated equity (iii) 26,909 26,909 Defined benefit plan (iv) (214,667) (546,240) Reserve for interest on non-performing loans (v) 5,210,079 3,234,150 $ 7,498,815 4,573,128 (i) Fair value reserve The fair value reserve represents the net effect of fair value gains or losses on FVOCI investment securities held. The movement on the fair value reserve for the year is as follows: 2020 2019 Balance, beginning of year $ 1,055,000 820,000 Unrealised fair value gain 351,356 235,000 Balance, end of year $ 1,406,356 1,055,000