NOTES TO THE FINANCIAL STATEMENTS AT 31ST DECEMBER, 2013
(continued)
2.
SIGNIFICANT ACCOUNTING POLICIES (continued)
(d) Financial instruments (continued)
Loans and receivables
Investments classified as loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted on the active market. They are included in current assets, except for maturities greater than twelve (12)
months after the statement of financial position date. These are classified as non-current assets. The Credit Union’s loans and
receivables comprise of treasury bills and fixed deposits which are stated at cost.
Available-for-sale
Investments are classified as available-for-sale as they are intended to be held for an indefinite period. These investments
may be sold in response to needs for liquidity or changes in interest rates or equity prices. These investments are carried at
fair value, based on quoted market prices where available. However, where a reliable measure is not available, cost is appropriate. The majority of these investments continue to be carried at cost as in almost all cases they are not traded on an active
market and methods of reasonable estimation of fair value are unavailable. Where available-for-sale investments are carried
at fair value unrealized gains or losses are recognized directly in equity until the investment is derecognised or determined
to be impaired at which time the cumulative gain or loss previously recorded in equity is recognized in profit or loss. Avail
able-for-sale investments are included in non-current assets unless management intends to dispose of the investment within
twelve (12) months of the date of the statement of financial position.
Fair Value
Fair value amounts represent the approximate values at which financial instruments could be exchanged
in current transactions between willing parties. However, the Credit Union’s financial instruments lack an
available trading market and therefore it is not possible to determine independently the estimated fair values.
The fair values of the financial instruments are therefore considered to approximate their book value.
Impairment of financial assets
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The Credit Union assesses at each statement of financial position date whether there is objective evidence that a financial
asset or group of financial assets is impaired.