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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)
21. STATUTORY RESERVES (CONTINUED)
Section 197(2) of the Co-operative Societies (Amendment) Act 2007-39 requires for the Credit Union that an appropriation
equivalent to the greater of one half of one per cent (0.5%) of total assets or twenty-five per cent (25%) of net surplus shall
be credited to the reserve fund annually until capital equals ten per cent (10%) of total assets. The Registrar of Co-operatives
may increase the appropriation amount to forty per cent (40%) of net surplus or one per cent (1%) of total assets in certain
circumstances.
(ii) General reserve
The general banking reserve of a subsidiary represents an appropriation of retained earnings equivalent to the excess of
loan loss reserve requirement in accordance with statutory requirements compared to the loan loss provision calculated
in accordance with IFRS. However, where the IFRS loan loss reserve exceeds the statutory requirements, the amount
previously appropriated is released to retained earnings.
During the year, an amount of $nil (2012 - $295,069) was transferred from retained earnings to the general reserve.
22. OTHER RESERVES
2013
2012
Fair value reserve
$ 593,705
678,465
Special funds
592,397
549,327
Donated equity
26,909
26,909
$ 1,213,011
1,254,701
Fair value reserve
The fair value reserve represents the net effect of fair value gains or losses on available-for-sale investment securities held.
The movement on the fair value reserve for the year is as follows:
2013
2012
Balance, beginning of year
$ 678,465
875,000
Unrealised fair value losses
(84,760)
(196,535)
Balance, end of year
$ 593,705
678,465
Special funds
The special reserve funds comprise the following:
(i) Social Outreach Fund
The Social Outreach Fund was created to provide charitable donations to members in need of financial assistance.
(ii) Education Fund
The Education Fund was established to provide grants and scholarships to members pursuing educational programmes.
(iii) Development Fund
In June 2004, the general membership approved the establishment of the Development Fund to assist with the
exploratory cost relating to projects of a developmental nature.
(iv) BCCUL Training/Education Fund
The BCCUL Training/Education Fund was instituted in June 2002 to finance the education of credit union members and
the general public in credit union philosophy and operations.
