BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
NON-CONSOLIDATED ANNUAL REPORT 2016
30
BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED
Notes to the Non-consolidated Financial Statements
For the year ended March 31, 2016
(Expressed in Barbados dollars)
14
2.
Accounting Policies,
continued
(c) Summary of significant accounting policies,
continued
d) Financial instruments,
continued
Non-derivative financial assets – Measurement,
continued
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 rate method (EIR), 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 loan impairment
expense.
Non-derivative financial liabilities - Classification, Recognition/Derecogniton and
Measurement
The Credit Union classifies non-derivative financial liabilities into the other financial liabilities
category.
The Credit Union’s financial liabilities include customer deposits, loans payable, reimbursable
shares and other liabilities. The Credit Union 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.
e)
Reimbursable shares
Reimbursable shares represent amounts due to the estates of deceased members.
