51
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)
The following table presents the Group’s financial instruments that are measured at fair value.
March 31, 2013
Total
Level 1
Level 2
Level 3
Balance
Investment securities
Available-for-sale
- Equity securities
$ 1,439,684
-
604,710
2,044,394
March 31, 2012
Total
Level 1
Level 2
Level 3
Balance
Investment securities
Available-for-sale
- Equity securities
$ 1,744,066
-
594,000
2,338,066
The following table below shows a reconciliation of all movements in the fair value of financial investments categorized within level
3 between the beginning and end of the reporting period
2013
2012
Balance - beginning of year
$ 594,000
550,100
Purchases
10,710
43,900
Balance – end of year
$ 604,710
594,000
27. CAPITAL MANAGEMENT
The Group’s objectives when managing capital, which is a broader concept than the ‘equity’ on the face of the statement of financial
position, are:
• To comply with the capital requirements set by the regulators of financial institutions where the Group operates;
• To safeguard the Group’s ability to continue as a going concern so that it can continue to provide returns to its shareholder
and benefits for other stakeholders; and
• To maintain a strong capital base to support the development of its business.
Capital adequacy and the use of regulatory capital are monitored daily by the Group’s management, employing techniques based on
policies and guidelines regulated by both the Co-operative Societies Act and the Financial Institutions Act.
The Group’s approach to managing capital did not change during the period.
Regulatory capital requirement
Under governing legislation which became effective March 31, 2008, the Credit Union is required to transfer from net surplus for the
year an amount equivalent to the greater of 25% of net surplus or 0.5% of total assets until the capital to total assets ratio equals
10%. (Note 21)
For Capita Financial Services Inc., the Central Bank of Barbados requires that the entity (a) hold the minimum level of the regulatory
capital and (b) maintain a certain ratio of total regulatory capital to the risk-weighted asset at or above the internationally agreed
minimum of 8%.
The Group has complied with all externally imposed capital requirements.
