Consolidated Annual Report 2023

66 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Barbados Public Workers’ Co-operative Credit Union Limited Notes to the Consolidated Financial Statements March 31, 2023 (expressed in Barbados dollars) 34 2 Accounting Policies …continued s) Provisions, contingent assets and contingent liabilities Provisions for legal disputes or other claims are recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic resources will be required from the Group and amounts can be estimated reliably. Timing or amount of the outflow may still be uncertain. Provisions are not recognised for future operating losses. Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their present values, where the time value of money is material. Any reimbursement that the Group is virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision. In those cases where the possible outflow of economic resources as a result of present obligations is considered improbable or remote, no liability is recognised. Such situations are disclosed as contingent liabilities unless the outflow of resource is remote. 3 Net Interest Income 2023 $ 2022 $ Interest income calculated using the effective interest method Loans and advances 103,879,564 101,328,189 Financial investments 1,500,215 1,791,207 Cash resources 340,950 347,003 105,720,729 103,466,399 Interest expense Deposits 26,610,370 28,082,044 Lease liability 354,378 364,648 Loans payable 1,092 713 26,965,840 28,447,405 Net interest income 78,754,889 75,018,994

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