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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
e) Financial Instruments,
continued
Held to maturity financial investments
Held to maturity financial investments are non-derivative financial assets with fixed or determinable
payments and fixed maturities, which the Group has the intention and ability to hold to maturity.
After initial measurement, held to maturity financial investments are subsequently measured at
amortised cost using the effective interest rate method (EIR), less any impairment losses. Amortised
cost is calculated by taking into account any discount or premium on acquisition and fees that are
an integral part of the effective interest rate. The Group has reported government securities which
have all been classified under the held to maturity classification.
Impairment losses are reported as a deduction from the carrying value of the investment (through
an allowance account) or investment balance. The amount recorded for impairment is the cumulative
loss measured as the difference between the amortised cost and the current fair value, less any
impairment loss on that investment previously recognised in the statement of income.
If the Group were to sell or reclassify more than an insignificant amount of held to maturity
investments before maturity (other than in certain specific circumstances), the entire category would
be tainted and would have to be reclassified as available-for-sale. Furthermore, the Group would be
prohibited from classifying any financial asset as held to maturity for the current and during the
following two financial years.
Available-for-sale financial investments
Available-for-sale investments include equity securities. Equity securities classified as available-for-
sale are those which are neither classified as held for trading nor designated at fair value through
profit or loss.
After initial measurement, available-for-sale financial investments are subsequently re-measured at
fair value based on quoted bid prices or amounts derived from approved valuation models.
Unrealised gains and losses on available-for-sale securities are recognised directly in the fair value
reserve in equity and reported under other comprehensive income.
When the investment is disposed of, the cumulative gain or loss previously recognised in equity is
recognised in the statement of income.
Unquoted equity instruments for which fair values cannot be measured reliably are recognised at
cost less impairment.
