JPSPCCU 2017 Financial Statements

Notes to the Financial Statements
For the year ended 31st December 2017
(Expressed in Jamaican Dollars unless otherwise indicated)
3. Statement of Compliance, Basis of Preparation and Significant Accounting Policies (cont'd):
(k) Impairment cont'd -
In respect of held-to-maturity investments and receivables, the impairment loss is reversed if the subsequent increase
in recoverable amount can be related objectively to an event occurring after the impairment loss was recognised.
In respect of other assets, an impairment loss is reversed if there has been a change in the estimates used to determine
the recoverable amount.
An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation or amortisation, if no impairment loss has been
recognised.
(l) Provisions -
Provisions are recognized when the Credit Union has a present legal or constructive obligation as a result of past
events, if it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, and a reliable estimate of the amount of the obligation can be made.
Employee entitlements to annual leave are recognized when they accrue to employees. A provision is made for the
estimated liability for annual leave as a result of services rendered by employees up to the date of the statement of
financial position.
(m) Members' Shares
Permanent Shares
Permanent Shares may be transferred by members to another member but are not available for withdrawal.
Permanent shares are classified as equity.
Voluntary
Members voluntary shares represent deposit holdings of the Credit Union's members, to satisfy membership
requirements and to facilitate eligibility for loans and other benefits. These shares are classified as financial
liabilities. Returns to members on these shares are determined at the discretion of the Credit Union, are denoted as
interest and are reported as expense in the income statement in the period in which approved.
(n) Foreign Currency Transactions -
Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in
which the Credit Union operates. The Credit Union's primary economic environment is Jamaica, and as such, its
functional and presentation currency is Jamaican dollars.
Transactions and balances
Foreign currencies at the date of the statement of financial position are stated at the rates of exchange ruling on that
date. Transactions in foreign currencies are converted at the rates of exchange ruling at the date of those transactions.
Gains and losses arising from fluctuations in exchange rates are included in the statement of comprehensive income.
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JPS & Partners Co-operative Credit Union