NOTES TO THE FINANCIAL STATEMENTS AT 31ST DECEMBER, 2013
(continued)
3.
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
The development of estimates and the exercise of judgment in applying accounting policies may have a material impact on
the Credit Union’s reported assets, liabilities, revenues and expenses. The items that may have the most effect on the finan
cial statements are set out below.
Valuation of property
The Credit Union utilizes professional valuators to determine the fair value of its properties. Valuations are determined
through the application of a variety of different valuation methods which are all sensitive to the underlying assumptions
chosen.
Impairment of loans
Provision is made for doubtful debts based on the specific identification of doubtful balances. As debts become uncollect
ible they are written off against the provision.
Fair value of available-for-sale investments
The fair values of financial instruments that are not quoted in active markets are determined using the last traded value for
the investment. Where no such value exist the investment is carried at cost.
4.
MEMBERS’ LOANS
2013
2012
169,675,663
4,057,366
148,890,170
3,557,366
$165,618,297
$145,332,804
Land at cost – 1st January, 2013
Additions during the year
4,673,129
24,736
4,659,317
13,812
Balance at 31st December, 2013
$4,697,865
$4,673,129
General loans
Less: allowance for doubtful loans
66
5.
INVESTMENT PROPERTY