Separate Annual Report 2021

47 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) 24 2. Accounting Policies, continued (e) Significant accounting judgments, estimates and assumptions, continued Impairment of non-derivative financial assets, continued Incorporation of forward looking information The Credit Union formulated three economic scenarios: a base case, which is the central scenario, developed internally based on consensus forecasts, and two less likely scenarios, one upside and one downside scenario. The central scenario is aligned with information used by the Credit Union for other purposes such as strategic planning and budgeting. External information considered includes economic data and forecasts published by governmental bodies and monetary authorities in the region where the Credit Union operates, international organisations such as the International Monetary Fund and selected private-sector forecasts. The scenario probability weightings applied in measuring ECL are as follows: 2021 March 31 Upside Central Downside Scenario probability weighting 20% 50% 30% Macro-economic variables used in these scenarios include (but are not limited to), unemployment rates, GDP growth rates, inflation rates and price indices. Forward looking macro-economic information and assumptions relating to COVID-19 have been considered in these scenarios, including potential impacts of COVID-19, recognising that uncertainty still exists in relation to the duration of COVID-19 related restrictions and the anticipated impact of government stimulus and regulatory actions. Periodically, the Credit Union carries out stress testing of more extreme shocks to calibrate its determination of the upside and downside representative scenarios.