Separate Annual Report 2021

51 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) 28 2. Accounting Policies, continued (j) Leases, continued Credit Union acting as a lessee, continued The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Credit Union’s estimate of the amount expected to be payable under a residual value guarantee, if the Credit Union changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment. When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Credit Union presents right-of-use assets in property and equipment and lease liabilities in other liabilities in the statement of financial position. Short-term leases and leases of low-value assets The Credit Union has elected not to recognise right-of-use assets and lease liabilities for leases of low- value assets and short-term leases, including leases of IT equipment. The Credit Union recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. (k) Reimbursable shares Reimbursable shares represent amounts due to the estates of deceased members. (l) 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. (m) 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. (n) 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 Credit Union and distributed via credits to members’ deposits.