Credit Union Annual Report 2021 V2 - Flipbook - Page 56
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2021
2.4 Summary of accounting policies (continued)
Fair value measurement
The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction in the principal (or most advantageous) market at the measurement date under current market
conditions (i.e., an exit price) regardless of whether that price is directly observable or estimated using another valuation
technique. When the fair values of financial assets and financial liabilities recorded in the statement of financial position
cannot be derived from active markets, they are determined using a variety of valuation techniques that include the use of
valuation models. The inputs to these models are taken from observable markets where possible, but where this is not
feasible, estimation is required in establishing fair values. Judgements and estimates include considerations of liquidity
and model inputs related to items such as credit risk (both own and counterparty), funding value adjustments, correlation
and volatility.
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into Cayman Islands dollars at the
exchange rate prevailing on the balance sheet date. Revenue and expense items denominated in foreign currencies are
translated into Cayman Islands dollars at the exchange rate prevailing on the transaction date. Gains and losses on
translation are included in the Statement of Comprehensive Income.
The Credit Union translates its United States dollars to Cayman Islands dollars at a fixed rate of CI$0.82 to
US$1.00.
3. Cash on hand and at bank and fixed deposits
The composition of cash on hand and at bank is as follows:
2021
Cash on hand
Cash at bank
$
$
2,571,356
43,488,779
46,060,135
2020
$
$
1,549,454
49,446,615
50,996,069
The composition of fixed deposits is as follows:
Fixed deposits:
Original terms to maturity of 3 months or less
Original terms to maturity of greater than 3 months
2021
$
$
30,637,370
57,033,232
87,670,602
2020
$
$
52,950,600
1,262,878
54,213,478
During the financial year ending July 31, 2021, interest was earned on fixed deposits held in the amount of $273,086
(2020: $414,007).
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