BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
CONSOLIDATED ANNUAL REPORT 2016
28
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)
16
2.
Accounting Policies,
continued
2.3 Summary of significant accounting policies,
continued
e) Financial Instruments,
continued
Available-for-sale financial investments,
continued
For available-for-sale financial investments, the Group assesses at each statement of financial
position date whether there is objective evidence that an investment is impaired. Where there is
evidence of impairment, the cumulative loss – measured as the difference between the acquisition
cost and the current fair value, less any impairment loss on that investment previously recognised
in the statement of income – is removed from other comprehensive income and recognised in the
statement of income. Impairment losses on equity investments are not reversed through the
statement of income; increases in their fair value after impairment are recognised directly in other
comprehensive income.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. After initial measurement, such financial assets are subsequently
measured at amortised cost using the effective interest method, less impairment.
Impairment losses are reported as a deduction from the carrying value of the loan (through an
allowance account) or balance and recognised in the statement of income as a provision for
impairment.
Financial liabilities
The Group’s financial liabilities include customer deposits, loans payable, reimbursable shares and
other liabilities. The Group determines the classification of its financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value and in the case of loans payable, net of
directly attributable transaction costs.
After initial recognition, interest bearing loans and borrowings are subsequently measured at
amortised cost using the effective interest rate method. Gains and losses are recognised in the
statement of income when the liabilities are derecognised as well as through the effective interest
rate method (EIR) amortisation process. The EIR amortisation, if any, is included in the statement
of income.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expires.
f) Reimbursable shares
Reimbursable shares represent amounts due to the estates of deceased members.
