JPSCU AR 2018 finan web

NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31st December 2018
(Expressed in Jamaican Dollars unless otherwise indicated)
3. Statement of Compliance, Basis of Preparation and Significant Accounting Policies (cont'd):
(j)
Property, Plant and Equipment
Property, plant and equipment are periodically reviewed for impairment. Where the carrying amount of an asset is
greater than its estimated recoverable amount, it is written down immediately to its recoverable amount. Land and
Buildings are shown at deemed cost less subsequent depreciation for building. Under IFRS 1, a first-time adopter
may elect to use a previous GAAP revaluation of an item of property, plant and equipment as its deemed cost.
The Credit Union has elected to apply this provision. All other property, plant and equipment are stated at historical
cost less accumulated depreciation and impairment if any.
Computer & Other Equipment 33.33%
Computer Software 20%
Furniture & Fixtures 10%
ATM 12.5%
Garden Tools 33.33%
Investment Property & Other Buildings 2.5%
Software 33%
Equipment 20%
Land is not depreciated.
Gains or losses on disposal of Property, Plant and equipment are determined by their carrying amount and are taken
into account in determining operating profit.
(k) Impairment -
The Credit Union recognises loss allowances for expected credit losses (ECL) on financial assets that are debt
instruments that are not measured at Fair Value Through Profit & Loss (FVTPL).
Loss allowances are measured at an amount equal to lifetime ECL except for the following are measured as a 12-
month ECL:
- debt investment securities that are low in risk
- other financial instruments (other than lease receivables) on which credit risk not not increased significantly.
12-month ECL are the portion of ECL that result from default events of a financial instrument that are possible within
the 12 months after the reporting date. Financial instruments for which a 12-month ECL is recognised is referred to
as Stage 1 financial instrument.
Lifetime ECL are the ECL that result from all possible default events over the expected life of the financial instrument.
Financial Instruments for which lifetime ECL is recognised and is not credit-impared is referred to Stage 2 financial
instruments.
At each repoirting date, the credit union assesses whether the financial assets carried at amortised cost are creditimpaired
(referred to a Stage 3 financial assets)
JPS & Partners Co-operative Credit Union 24