121 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | SEPARATE FINANCIAL STATEMENTS 2022 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Separate Financial Statements For the year ended March 31, 2022 (Expressed in Barbados dollars) 95 24. Fair Value, continued Significant unobservable inputs that have been considered in determining the fair value of Level 3 securities are as follows: Valuation technique The valuation assessment performed was based on a market approach and in particular, comparable company valuation multiples. In concluding using this approach, a median of the various market based multiples was considered. These multiples included the price to book value multiple, price to earnings multiple, EBITDA multiple, EBIT multiple and revenue multiple. Significant unobservable inputs Shareholding percentage Net assets Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) Earnings Before Interest and Tax (EBIT) Revenue Inter-relationship between key unobservable inputs and fair value measurement The estimated fair value would increase/(decrease) if: Shareholding increases/(decreases) Net assets were higher/(lower) EBITDA was higher/(lower) EBIT was higher/(lower) Revenue was higher/(lower) 25. Capital Management The Credit Union’s objectives when managing capital, which is a broader concept than the ‘equity’ on the face of the statement of financial position, are: • To comply with the capital requirements set by the regulators of financial institutions where the Credit Union operates; • To safeguard the Credit Union’s ability to continue as a going concern so that it can continue to provide returns to its members and benefits to other stakeholders, and • To maintain a strong capital base to support the development of its business. Capital adequacy and the use of regulatory capital are monitored daily by the Credit Union’s management, employing techniques based on policies and guidelines regulated by the Co-operative Societies Act. The Credit Union’s approach to managing capital did not change during the period. Regulatory capital requirement Under governing legislation which became effective March 31, 2008, the Credit Union is required to transfer from net surplus for the year an amount equivalent to the greater of 25% of net surplus or 0.5% of total assets until the capital to total assets ratio equals 10%. (Note 19) The Credit Union has complied with all externally imposed capital requirements.
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