57 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2021 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2021 (Expressed in Barbados dollars) 30 2. Accounting Policies, continued (i) Leases, continued 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. (j) Reimbursable shares Reimbursable shares represent amounts due to the estates of deceased members. (k) Deposits Members’ deposits are initially measured at fair value, net of any transaction costs directly attributable to the issuance of the instrument. Members’ deposits are subsequently measured at amortized cost using the effective interest rate method. (l) Other liabilities Liabilities for trade creditors and other payables are classified as other financial liabilities and initially measured at fair value net of any transaction costs directly attributable to the issuance of the instrument and subsequently carried at amortized cost using the effective interest rate method. (m) Share capital Members’ shares are classified as other financial liabilities under the IAS 32, Financial Instruments: Disclosure and Presentation and are measured at par value. Dividends are paid on an annual basis at rates that are determined at the Annual General meeting of members. Dividends are calculated based on the monthly minimum share balance of each active member of the Group and distributed via credits to members’ deposits.
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