39 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2020 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2020 (Expressed in Barbados dollars) 22 2. Accounting Policies, continued (i) Leases, continued Short-term leases and leases of low-value assets The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases, including leases of IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. Policy applicable before April 1, 2019 For contracts entered into before April 1, 2019, the Group determined whether the arrangement was or contained a lease based on the assessment of whether: • fulfilment of the arrangement was dependent on the use of a specific asset or assets; and • the arrangement had conveyed a right to use the asset. Leases were classified as operating leases and were not recognised in the Group’s consolidated statement of financial position. Payments made under operating leases were recognised in profit or loss on a straight-line basis over the term of the lease. As a lessor The Group has finance leases for commercial vehicles, theses finance lease are capitalized at amoritized cost in the Group’s consolidated statement of financial position. Leased assets For assets leased out under finance leases, the present value of the lease payments at the start of the lease is recognised as a receivable and is included in loans and advances. The difference between the gross receivable and the present value of the receivable is recognised as unearned finance income. Lease income is recognised over the term of the lease using the effective interest method (which reflects a constant periodic rate of return). For assets leased out under operating leases, the total payments received are included as other operating income in the consolidated statement of comprehensive income on the straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made by the lessor by way of penalty is recognised as an expense in the period in which termination takes place
RkJQdWJsaXNoZXIy MTA2MDM=