JPSCU AR 2018 finan web

NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31st December 2018
(Expressed in Jamaican Dollars unless otherwise indicated)
1. Identification:
The Co-operative is incorporated under the laws of Jamaica and is registered under the Co-operative Societies Act.
Membership is limited to employees, ex-employees, pensioners of the Jamaica Public Service Company Limited, the
Rural Electrification Programme, the Jamaica Private Power Company, the Jamaica Energy Partners, Digicel (Jamaica)
Limited, UC Rusal Limited and Collector General, the staff of the Credit Union, spouse, children , parents, brothers,
sisters, aunts and uncles, nieces and nephews of members and spouses of children.
The Credit Union's registered office is located at 65 ¾ Half-Way-Tree Road, Kingston , Jamaica and has branches in
Ewarton-St Catherine, Kirkvine Manchester and Ocean Boulevard-Kingston.
The Co-operative's main activities are:-
(a) the promotion of thrift;
(b) the provision of loans to members exclusively for provident and productive purposes; and
(c) to receive the savings of its members either as payment on shares or as deposits.
The Co-operative is exempt from Income Tax under Section 59 (1) of the Co-operative Societies Act and Section 12 of
the Income Tax Act.
Membership in the Credit Union is obtained by the holding of members' shares, which should be at least one thousand
(1,000) voluntary shares and one thousand (1,000) permanent shares. These shares are issued at par value of $1 each.
Voluntary shares are deposits available for withdrawal on demand, while permanent shares are paid in cash and
invested in risk capital. Individual membership may not exceed 20% of the total of the members' shares of the Credit
Union.
Monies paid for Permanent Shares may not be withdrawn in whole or in part and may not be pledged to secure credit
facilities with the Credit Union.
An individual ceasing to be a member of the Credit Union, shall be entitled to a redemption of any amount held as
Permanent Shares. Permanent Shares are redeemable only upon transfer to another member. To facilitate this, the
Credit Union has established a Redemption Reserve Account.
2. Adoption of Standards, Interpretations and Amendments:
(a) Standards and Interpretations in respect of published standards that are in effect:
The International Accounting Standards Board (IASB) issued certain new standards and interpretations as well as
amendments to existing standards, which became effective during the year under review. Management has assessed
the relevance of these new standards, interpretations and amendments and has adopted and applied in these financial
statements, those standards which are considered relevant to the Credit Union were:-
JPS & Partners Co-operative Credit Union 16