JPSCU AR 2018 finan web

REPORT OF THE INDEPENDENT AUDITORS
TO THE REGISTRAR OF CO-OPERATIVES
AND FRIENDLY SOCIETIES
RE JPS & PARTNERS CO-OPERATIVE CREDIT UNION LIMITED
(A SOCIETY REGISTERED UNDER THE CO-OPERATIVE SOCIETIES ACT)
Opinion
We have audited the financial statements of JPS & Partners Co-operative Credit Union Limited, which
comprise the statement of financial position as at 31st December 2018, the statement of comprehensive
income, statements of changes in equity, cash flows for the year then ended, and explanatory notes to the
financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of
the Credit Union as at 31st December 2018, and of its financial performance and its cash flows for the
year then ended in accordance with International Financial Reporting Standards (IFRSs).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Credit Union, in accordance with the
International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants
(IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key Audit Matter
How the matter was addressed during the audit
Our procedures in this area includes the
Expected Credit Loss ('ECL) on Financial Assets following;
IFRS 9 was implemented by the entity on January 1, Obtaining an understanding of the models
2018. The adopted standard is new and complex and used by the entity for the calculation of
requires the entity to recognise expected credit losses expected credit losses including
('ECL') on financial assets, the determination of which is governance over the determination of key
highly subjective and requires managment to maje judgments.
significant judgment and estimates
The key areas requiring greater management judgment
include the identification of significant increase in credit
risk ('SICR"), the determination of probabilities of default,
loss given default, exposure at default and the
implication of forward-looking information.
Significant management judgement is used in
determining the appropriate variables and assumptions
used in the ECL computations, which increase the risk
of ,material mistatement.
Testing the design and operating
effectiveness of the key controls over the
completeness and accuracy of the key
data inputs into IFRS 9 impairment
models for investments.
Testing the completeness and accuracy of
the data used in the models of the
underling accounting records based on a
sample basis.