BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2022 104 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2022 (Expressed in Barbados dollars) 73 25. Financial Risk Management, continued 25.2 Credit risk, continued Assessment of corporate investments (term deposits), continued The Group has identified qualitative and quantitative indicators where cost might not be representative of fair value as follows; • Significant change in the performance of the investee compared with that of the market • Changes in expectations that investee’s technical product milestones will be achieved; • A significant change in the market for the investee’s products, global economy, economic environment in which the entity operates; • Performance of competitors, matters such as fraud, commercial disputes, litigation, changes in management or strategy; or • Evidence of external transactions in the investee’s equity (take overs) Each investment was assessed based on the companies’ ability to meet its short-term obligations together with its historical relationship with the Group relative to meeting these same obligations. This back testing approach is allowed under IFRS 9 in relation to the ranking of investments based on the purpose for which the investment is held. The investments mentioned herein are best described as callable upon demand, with the exception of the Barbados Light & Power Limited which is held as a security deposit. The other investment contracts carry a fixed term. They can be called prior to maturity with the penalty of forgone interest.
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