63 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2022 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) 31 2. Accounting Policies, continued (n) Recognition of income and expenses, continued For financial assets that were credit-impaired on initial recognition, interest income is calculated by applying the credit-adjusted effective interest rate to the amortised cost of the asset. The calculation of interest income does not revert to a gross basis, even if the credit risk of the asset improves. For information on when financial assets are credit-impaired, see Note 2(d). Presentation Interest income calculated using the effective interest method presented in the statement of income and statement of comprehensive income includes: – interest on financial assets and financial liabilities measured at amortised cost Interest expense presented in the statement of income and statement of comprehensive income includes: – financial liabilities measured at amortised cost; and – interest expense on lease liabilities. Fees and commission income Fees and commission income are generally recognised on an accrual basis when the service has been provided. The Group offers to its membership certain value added services for which a fee or commission is derived either directly from the member or by way of the specific nature of the transaction via a third party provider. Those which are member specific are currently limited to legal fees, administrative charges for withdrawals relative to the management of their RRSP and recoveries relative to loans previously charged off. The Group provides an international MasterCard debit card to its membership from which income is earned on a transactional basis from the MasterCard proportionate to the spend on each transaction. Dividend income Dividend income relates to amounts earned on shares held within corporate entities. Dividends are recognised when the right to receive the dividend is established. (o) Taxation A subsidiary is subject to income taxes in both Barbados and St. Lucia. Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not recognised in other comprehensive income or directly in equity.
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