51 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) 34 12. Financial Investments, continued The movement in expected credit loss allowance is as follows: 2020 2019 Balance at beginning of year $ 697,784 - Impact of IFRS 9 - 2,636,001 Balance at beginning of year (adjusted) 697,784 2,636,001 Derecognition of expected credit loss allowance (i) - (1,828,217) Expected credit loss on investments (309,925) (110,000) Balance at end of year $ 387,859 697,784 (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. $36,101 and $351,758 (2019 - $35,642 and $662,142) of the expected credit loss allowance at March 31, 2020 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: 2020 Consumer Business Mortgages Total Gross loans $ 776,576,155 40,219,816 511,691,262 1,328,487,233 Less: ECL allowance (22,702,460) (575,115) (4,239,728) (27,517,303) $ 753,873,695 39,644,701 507,451,534 1,300,969,930 Add: interest receivable 10,880,934 $ 1,311,850,864
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