CREDUT UNION REPORT 2013.pdf April 2013 | Page 60

NOTES TO THE FINANCIAL STATEMENTS AT 31ST DECEMBER, 2013 1. CORPORATE INFORMATION The Credit Union was established in 1947 and originally registered in March 1958 under the Co-operative Societies Ordinance as amended by the Co-operative Societies Act No. 8 of 2011 for the purpose of affording members of the Credit Union the opportunity to accumulate savings and to obtain credit for provident or productive purposes at reasonable rates of interest. The Credit Union employed on average forty (40) persons during the year (2012 – 40). 2. SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Preparation These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and are expressed in Eastern Caribbean Currency Dollars. The financial statements have been prepared under the historical cost convention. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Credit Union’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to these financial statements are disclosed in Note 3. (b) New accounting Standards, Amendments and Interpretations i) There are no new standards, amendments and interpretations that are effective for the first time for the financial year begin ning on or after 1st January, 2013 that would be expected to have a material impact on the Company’s financial statements. ii) Amendments and interpretations issued but not effective for the financial year beginning 1st January, 2013 and not early adopted. These either do not apply to the activities of the Group or have no material impact on its financial statements. IFRS 10 Consolidated financial statements- Effective for annual periods beginning on or after 1st January, 2014. IFRS 12 Disclosure of interest in other entities- Effective for annual periods beginning on or after 1st January, 2014. IAS 19 Employee benefits – Defined benefits plan - Effective for annual periods beginning on or after 1st July, 2013. IAS 27 Separate financial statements – investment entities – Effective for annual periods beginning on or after 1st January, 2014. 59