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BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
CONSOLIDATED ANNUAL REPORT 2016
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)
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2.
Accounting Policies,
continued
2.3 Summary of significant accounting policies,
continued
b) Cash and cash equivalents
Cash and cash equivalents comprises cash on hand, balances with commercial banks, deposits
with Central Bank (excluding mandatory reserve deposits) and term deposits with an original
maturity of three months or less from the acquisition date.
c) Business combinations and goodwill
Business combinations are accounted for using the acquisition method as at the acquisition date –
i.e. when control is transferred to the Group. The cost of an acquisition is measured as the aggregate
of the consideration transferred, measured at acquisition date fair value and the amount of any non-
controlling interest in the acquiree. For each business combination, the acquirer measures the non-
controlling interest in the acquiree either at fair value or at the proportionate share of the acquiree’s
identifiable net assets. Acquisition costs incurred are expensed and included in the statement of
income. If the cost of acquisition is less than the fair values of the identifiable net assets acquired,
the discount on acquisition is recognised directly in the statement of income in the year of acquisition.
Goodwill acquired in a business combination is initially measured at cost, being the excess of the
cost of the business combination over the net fair value of the identifiable assets, liabilities and
contingent liabilities acquired.
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Goodwill is reviewed for impairment annually, or more frequently, if events or changes in
circumstances indicate that the carrying value may be impaired. For the purpose of impairment
testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each
of the Group’s cash–generating units (CGUs) or group of CGUs, which are expected to benefit from
the synergies of the combination, irrespective of whether other assets or liabilities of the acquiree
are assigned to those units. Each unit to which the goodwill is allocated represents the lowest level
within the Group at which the goodwill is monitored for internal management purposes. Goodwill is
included in the statement of financial position in intangible assets.
