Separate Annual Report 2021

96 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) 69 23. Financial Risk Management, continued Credit risk, continued Financial investments, continued Assessment of corporate investments (term deposits), continued The Credit Union has identified the following qualitative and quantitative indicators as those where cost might not be representative of fair value as the following; • Significant change in the performance of the investee compared with that of the market; • Changes in expectations that the 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 Credit Union 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 that of the Barbados Light & Power Limited which is held as a security deposit. While each investment contract carries a fixed term, they can be called prior to maturity with the penalty of forgone interest.

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