Consolidated Annual Report 2020

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2020 98 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) 81 27. Fair Value, continued The fair values of financial assets and liabilities, together with the carrying amounts shown in the consolidated statement of financial position are shown in the table below: 2020 2019 Carrying Carrying Amount Fair Value Amount Fair Value Assets Cash resources $ 308,160,914 308,160,914 252,492,100 252,492,100 Financial investments – Amortized cost 22,024,523 22,024,523 22,529,971 22,529,971 – FVOCI 3,371,656 3,371,656 3,061,754 3,061,754 Loans and advances 1,311,950,864 1,314,219,709 1,235,759,895 1,238,893,573 Other assets 13,182,812 13,182,812 12,654,668 12,654,668 $ 1,658,690,769 1,660,959,614 1,526,498,388 1,529,632,066 Liabilities Deposits $ 1,527,678,285 1,615,238,120 1,400,074,381 1,502,142,145 Loan payable 1,341,586 1,341,586 13,520,176 13,520,176 Reimbursable shares 13,229,324 13,229,324 12,289,404 12,289,404 Other liabilities 16,864,866 16,864,866 14,621,052 14,621,052 $ 1,559,114,061 1,646,673,896 1,440,505,013 1,542,572,777 Determination of fair value and fair value hierarchy The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities. The fair value of financial instruments traded in active markets is based on quoted market prices at the statement of financial position date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry Group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in Level 1. Level 2 : other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. The fair value of financial instruments that are not traded in an active market (for example, over-thecounter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

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