Consolidated Annual Report 2021

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2021 62 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) 35 2. Accounting Policies, continued (s) Provisions, contingent assets and contingent liabilities Provisions for legal disputes or other claims are recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic resources will be required from the Group and amounts can be estimated reliably. Timing or amount of the outflow may still be uncertain. Provisions are not recognised for future operating losses. Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their present values, where the time value of money is material. Any reimbursement that the Group is virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision. In those cases where the possible outflow of economic resources as a result of present obligations is considered improbable or remote, no liability is recognised. Such situations are disclosed as contingent liabilities unless the outflow of resource is remote. 3. Net Interest Income 2021 2020 Interest income calculated using the effective interest method Loans and advances $ 98,016,747 104,169,233 Financial investments 1,783,781 1,739,976 Cash resources 203,053 397,778 100,003,581 106,306,987 Interest expense Deposits 29,515,042 30,538,190 Lease liability 237,028 305,020 Loans payable 411 113,779 29,752,481 30,956,989 Net interest income $ 70,251,100 75,349,998

RkJQdWJsaXNoZXIy MTA2MDM=