BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
CONSOLIDATED ANNUAL REPORT 2016
24
BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED
Notes to the Consolidated Financial Statements
For the year ended March 31, 2016
(Expressed in Barbados dollars)
12
2.
Accounting Policies,
continued
2.2 Significant accounting judgments, estimates and assumptions,
continued
Taxes
A subsidiary is subject to income taxes in both Barbados and St. Lucia. Significant estimates are
required in determining the provision for income taxes. Where the final tax outcome is different from the
amounts that were initially recorded, such differences will impact the income tax and deferred tax
provisions in the period in which such determination is made.
Deferred tax assets are recognised in respect of tax losses to the extent that it is probable that taxable
income will be available against which the losses can be utilised. Judgment is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and level of future
taxable income, together with future tax planning strategies.
Intangible assets
The Group’s financial statements include goodwill arising from acquisitions. In accordance with IAS 36,
goodwill is reviewed for impairment annually. This requires the use of estimates for determination of
future cash flows expected to arise from each cash-generating unit and an appropriate discount rate to
calculate present value.
2.3 Summary of significant accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements
are set out below. They have been applied consistently to all periods presented.
a) Foreign currency
The Group’s consolidated financial statements are presented in Barbados dollars which is the
Group’s presentation currency. The functional currency of the St. Lucia branch of a subsidiary is
Eastern Caribbean dollars.
Monetary assets and liabilities denominated in foreign currencies are translated into Barbados
dollars at the rates of exchange ruling at the statement of financial position date. Transactions
arising during the year denominated in foreign currencies are translated into Barbados dollars and
recorded at the rates of exchange prevailing on the dates of the transactions. Differences arising
from fluctuations in exchange rates are included in the statement of income.
Assets and liabilities of the St. Lucia branch are translated into the Group’s presentation currency at
the rate of exchange as at the statement of financial position date, and the statement of income is
translated at the average exchange rates for the year. Exchange differences arising on translation
are taken directly to a separate component of equity.
Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency
are translated using the exchange rates as at the dates of the initial transactions. Non-monetary
items measured at fair value in a foreign currency are translated using the exchange rates at the
date when the fair value is determined. Translation differences on non-monetary items, such as
equities classified as available-for-sale investments, are recognised in other comprehensive income.
