59 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) 32 2. Accounting Policies, continued (n) Recognition of income and expenses, continued For financial assets that were credit-impaired on initial recognition, interest income is calculated by applying the credit-adjusted effective interest rate to the amortised cost of the asset. The calculation of interest income does not revert to a gross basis, even if the credit risk of the asset improves. For information on when financial assets are credit-impaired, see Note 2(d). Presentation Interest income calculated using the effective interest method presented in the statement of profit or loss and OCI includes: – interest on financial assets and financial liabilities measured at amortised cost Interest expense presented in the statement of profit or loss and OCI includes: – financial liabilities measured at amortised cost; and – interest expense on lease liabilities. Fees and commission income Fees and commission income are generally recognised on an accrual basis when the service has been provided. Dividend income Dividend income is recognised when the right to receive the dividend is established. (o) Taxation A subsidiary is subject to income taxes in both Barbados and St. Lucia. Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not recognised in other comprehensive income or directly in equity. Current tax Current income tax assets and/or liabilities comprise those obligations to, or claims from, fiscal authorities relating to the current or prior reporting periods, that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the financial statements. The calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period in Barbados and St. Lucia.
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