BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
CONSOLIDATED ANNUAL REPORT 2016
74
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)
62
26. Fair Value
, continued
The following table below shows a reconciliation of all movements in the fair value of financial
investments categorised within Level 3 between the beginning and end of the reporting period.
2016
2015
Balance - beginning of year
$
682,522
664,348
Purchases
71,916
18,174
Balance – end of year
$
754,438
682,522
There were no transfers in or out of Level 3 during the year ended March 31, 2016 (2015: nil).
The financial investments classified as Level 3 securities are carried at cost as fair value cannot be
reliably estimated. Therefore no significant unobservable inputs have been considered in determining
its value. The application of sensitivity analysis is therefore not relevant.
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.
