37
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)
14. DEFERRED EXPENSES
Deferred expenses represent expenditure incurred in the implementation of new and automated services and were previously
amortised over a three year period. All amounts incurred are now expensed immediately.
The movement during the year is as follows:
2013
2012
Balance, beginning of year
$ -
1,215,996
Amounts incurred during the year
179,822
88,460
Amortisation charge and write-offs for the year (Note 6)
(179,822)
(1,304,456)
Balance, end of year
$ -
-
15. OTHER ASSETS
Other assets are comprised of the following:
2013
2012
Accounts receivable
$ 4,059,362
3,081,985
Prepaid expenses
1,649,210
1,557,535
Premiums receivable
779,252
674,543
Interest receivable on cash resources
124,141
90,095
Dividend receivable
55,000
55,000
$ 6,666,965
5,459,158
16. INTANGIBLE ASSET
2013
2012
Goodwill
$ 2,910,000
2,910,000
Impairment tests for goodwill
Goodwill is allocated to one cash-generating unit (CGU).
The recoverable amount for the CGU has been determined using value-in-use calculations. These calculations use cash flow
projections based on financial budgets approved by management covering a three year period. Cash flows beyond the three
year period are extrapolated using the estimated growth rate stated below. The growth rate does not exceed the long-term
average growth rates for the country in which the CGU operates.
Key assumptions used for value-in-use calculations
Key assumptions are those to which the CGU’s recoverable amount is most sensitive. The value-in-use calculation was based on
a discount rate of 7% and a growth rate of 5%.
Sensitivity to changes in assumptions
Management believes that no reasonably possible change in any of the above key assumptions would cause the carrying value
of the unit to exceed its recoverable amount.
Intangible asset – licences
During the year ended March 31, 2012, licences of $291,192 were fully amortised.
