Separate Annual Report 2021

45 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | SEPARATE FINANCIAL STATEMENTS 2021 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Separate Financial Statements For the year ended March 31, 2021 (Expressed in Barbados dollars) 22 2. Accounting Policies, continued (e) Significant accounting judgments, estimates and assumptions, continued Measurement of fair values A number of the Credit Union’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Credit Union has an established control framework with respect to the measurement of fair values. This includes the services of a professional valuation team that has overall responsibility for overseeing all significant fair value measurements, including investment fair values. This team reports directly to the Group Financial Controller. They also review market estimates where assets and liabilities are traded in active markets. Significant valuation issues are reported to the Finance, Investment and Asset Management Committee (FIAMC) which has oversight of the Credit Union’s investment policy. This Committee meets monthly to review any challenges as it relates to the carrying value of the Credit Union’s assets and liabilities. When measuring the fair value of an asset or a liability, the Credit Union uses market observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as disclosed in Note 24. If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Credit Union recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. Given market volatility during the year, the Credit Union reviewed the appropriateness of the inputs to its fair values. As a result and as part of the process to determine fair values of financial instruments since the onset of the pandemic, the Credit Union has applied a heightened level of judgment than would otherwise generally be required with the objective of determining the fair value that is most representative of those financial instruments.