25
BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
ANNUAL REPORT 2013
f) Reimbursable shares
Reimbursable shares represent amounts due to the estates of deceased members.
g) Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets
that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and
value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash-generating units). Non-financial assets that suffered impairment are reviewed for possible
reversal of the impairment at each reporting date. Impairment losses are recognised in the statement of income.
h) Offsetting financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position if, and
only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net
basis, or to realise the asset and settle the liability simultaneously.
i) Property and equipment
Property and equipment are carried at cost less accumulated depreciation and accumulated impairment losses. Subsequent
costs are included in the asset’s carrying amount or recognised as a separate asset, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other
repairs and maintenance are included in the statement of income during the financial period in which they are incurred.
Gains and losses on disposals are determined by comparing proceeds with carrying amounts and these are included in
the statement of income. The assets’ residual values, useful lives and depreciation methods are reviewed and adjusted, if
appropriate, at each statement of financial position date.
Items of property and equipment are depreciated from the date they are available for use. Depreciation is recognised in the
statement of income on the straight-line basis, at rates designed to write off the cost of the assets over the periods of their
estimated useful lives. Land is not depreciated.
The following group annual rates apply:
Buildings
2% - 4%
Motor vehicles
20%
Furniture and equipment
10% - 33.33%
Leasehold improvements
10% - 33.33%
j) Leases
Leased assets
For assets leased out under finance leases, the present value of the lease payments at the start of the lease is recognised as
a receivable and is included in loans and advances. The difference between the gross receivable and the present value of the
receivable is recognised as unearned finance income. Lease income is recognised over the term of the lease using the net
investment method (before tax) which reflects a constant periodic rate of return.
Assets held under other leases are classified as operating leases and are not recognised in the Group’s statement of financial
position.
Lease payments
For assets leased out under operating leases, the total payments received are included as other operating income in the
statement of income on the straight-line basis over the period of the lease.
Payments made under operating leases are recognised in the statement of income on a straight-line basis over the term of
the lease.
When an operating lease is terminated before the lease period has expired, any payment required to be made by the lessor by
way of penalty is recognised as an expense in the period in which termination takes place.
Notes to the Consolidated Financial Statements
For the year ended March 31, 2013, with comparative figures for 2012
(Expressed in Barbados dollars)
