BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | NON-CONSOLIDATED ANNUAL REPORT 2020 28 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) 11 1. Corporate Information The Barbados Public Workers’ Co-operative Credit Union Limited (the “Credit Union”) was registered on May 6, 1970, and continued under the Co-operatives Societies Act of Barbados 1990-23. Its registered office is located at “Olive Trotman House”, Keith Bourne Complex, Belmont Road, St. Michael. The principal activities of the Credit Union are the provision of savings products and credit facilities to its members and to educate them in co-operative principles. 2. Accounting Policies (a) Basis of preparation These non-consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). These non-consolidated financial statements have been prepared on a historical cost basis, except for investments measured at fair value through other comprehensive income. These non-consolidated financial statements are expressed and presented in Barbados dollars which is the functional currency, rounded to the nearest dollar. (b) New standards, amendments and interpretations mandatory for the first time for the financial year A number of new standards, amendments to standards and interpretations are effective for annual periods beginning January 1, 2019 and have been applied in preparing these non-consolidated financial statements. None of these have a significant effect on the non-consolidated financial statements except IFRS 16 disclosed below. IFRS 16 replaced leases guidance IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases – Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. IFRS 16 introduced a single, on-balance sheet lease accounting model for lessees. A lessee recognises a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. There are recognition exemptions for short-term leases and leases of low-value items. Lessor accounting remains similar to the previous standard – i.e. lessors continue to classify leases as finance or operating leases. The Credit Union applied IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at April 1, 2019. Accordingly, the comparative information presented for 2019 is not restated – i.e. it is presented, as previously reported, under IAS 17 and related interpretations. The details of the changes in accounting policies are disclosed below. Additionally, the disclosure requirements in IFRS 16 have not generally been applied to comparative information. Definition of a lease Previously, the Credit Union determined at contract inception whether an arrangement is or contains a lease under IFRIC 4 Determining whether an Arrangement contains a Lease. The Credit Union now assesses whether a contract is or contains a lease based on the definition of a lease, as explained in Note 2(j).
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