JPSCU AR 2018 finan web

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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.
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) Key Audit Matter Expected Credit Loss ('ECL) on Financial Assets We therefore determined that impairment on loans receivbale and investment securities has a high degree of estimated uncertainty. In addition, disclosure regarding the entity's application if IFRS 9 are key to understanding the change from IAS 39 as well as explaining the key judgments and materila inputs to the IFRS9 ECL results. Other information How the matter was addressed during the audit Our procedures in this area includes the following; If, based on the work we have performed, we conclude that there is a material misstatement in this other information, we are required to report that matter to those charged with governance. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, and the Co-operative Societies Act, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Credit Union’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Credit Union or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Credit Union’s financial reporting process. Evaluation of the appropriateness of theentity's impairment methodology including (SICR) criteria presented Assessment of the assumptions for probaility of default, loss given defaulat and exposure at default. Assessment of the adequacy of the disclosure of the key assumption of the key assumptions and judgements as well as the detials of transition adjustment for compliance with IFTRS 9. Management is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements and our auditor's report thereon. The Annual Report is expected to be made available to us after the date of this auditor's report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
Page 1: Financial Statements as at December
Page 6 and 7: g REPORT OF THE INDEPENDENT AUDITOR
Page 8 and 9: STATEMENT OF FINANCIAL POSITION as
Page 10 and 11: STATEMENT OF CHANGES IN EQUITY For
Page 16 and 17: NOTES TO THE FINANCIAL STATEMENTS F
Page 54 and 55:
NOTES TO THE FINANCIAL STATEMENTS F
Page 56 and 57:
Page 58 and 59:
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