57 SEPARATE FINANCIAL STATEMENTS 2023 Barbados Public Workers’ Co-operative Credit Union Limited Notes to the Separate Financial Statements March 31, 2023 (expressed in Barbados dollars) 29 2 Accounting policies …continued o) Recognition of income and expenses …continued Interest income and expense …continued Presentation …continued 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 The Credit Union 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 Credit Union 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. p) Taxation The Credit Union is exempt from corporation tax under Section 9(1)(g) of the Income Tax Act. q) Loan commitments ‘Loan commitments’ are firm commitments to provide credit under pre-specified terms and conditions. Loan commitments issued are measured at the sum of (i) the loss allowance determined in accordance with IFRS 9 and (ii) the amount of any fees received, less, if the commitment is unlikely to result in a specific lending arrangement, the cumulative amount of income recognised. Derecognition policies for financial assets [see Note 2(d)] are applied to loan commitments issued and held. Liabilities arising from loan commitments are included within “other liabilities” on the statement of financial position.
RkJQdWJsaXNoZXIy MTA2MDM=