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BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
ANNUAL REPORT 2013
Notes to the Consolidated Financial Statements
For the year ended March 31, 2013, with comparative figures for 2012
(Expressed in Barbados dollars)
1. CORPORATE INFORMATION
Barbados Public Workers’ Co-operative Credit Union Limited and its subsidiaries (“the Group”) are registered under the relevant financial, co-
operative and corporate legislations within the countries in which they operate.
The parent company, Barbados Public Workers’ Co-operative Credit Union Limited (‘the Credit Union”) is a company incorporated and
domiciled in Barbados with its registered office at Olive Trotman House, Keith Bourne Complex, Belmont Road, St. Michael.
On 23 March 2010, the Credit Union incorporated a 100% owned subsidiary, BPW Financial Holdings Inc., the principal activity of which is to
hold the capital investments of the Group.
On 27 August 2010, BPW Financial Holdings Inc. obtained 100% control over Clico Mortgage & Finance Corporation now renamed Capita
Financial Services Inc.
The Group provides savings products, credit facilities, lease financing, brokerage services and serves as a general and life insurance agent to
its customer’s base. The Group’s operations span across Barbados and St. Lucia.
2. ACCOUNTING POLICIES
2.1 Basis of preparation
The consolidated financial statements have been prepared in Barbados dollars on a historical cost basis, except for available-for-sale
investments which have been measured at fair value.
Statement of compliance
The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB).
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Credit Union and its subsidiaries, disclosed in Note 1. The
financial statements of the subsidiaries are prepared for the same reporting year end as the Credit Union, using consistent accounting
policies. All intra–group balances, transactions, income and expenses are eliminated in full.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be
consolidated until the date when such control ceases. Control is achieved where the acquirer has the power to govern the financial and
operating policies of an entity so as to obtain benefits from its activities. The results of subsidiaries acquired or disposed of during the
year are included in the consolidated statement of income from the date of acquisition or up to the date of disposal.
2.2 Significant accounting judgments, estimates and assumptions
The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and the amounts reported in the financial statements and
accompanying notes. Actual amounts may differ from these estimates.
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognised in the period
in which the estimates are revised and in any future periods affected.
The estimates and judgments that have a significant risk of causing material adjustment to the carrying amount of assets and liabilities
within the next financial year are discussed below.
Fair value of financial instruments
The fair values of financial instruments where no active market exists or where quoted prices are not otherwise available are determined
by using valuation techniques. In these cases, the fair values are estimated from observable data in respect of similar financial
instruments or using models. Where market observable inputs are not available, they are estimated based on appropriate assumptions.
Impairment of assets
The Group assesses at each reporting date whether there is objective evidence that an asset or group of assets is impaired. An asset or a
group of assets is impaired and impairment losses are incurred if, and only if, there is objective evidence of impairment as a result of one
or more events that occurred after the initial recognition of the asset (a “loss event”) and that loss event (or events) has an impact on
the future cash flows of the asset or group of assets that can be reliably estimated.
