Credit Union Annual Report 2022 - Flipbook - Page 56
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2022
2.4 Summary of accounting policies (continued)
Investment property
Property that is held for capital appreciation or which the Credit Union has an undetermined purpose is classified as
investment property. Investment property comprises principally of land which is not depreciated. Investment
properties are measured initially at cost, including transaction costs and are subsequently measured at depreciated cost
less any accumulated impairment losses. Valuations will be performed every three years for disclosure purposes
with any impairment losses being recognized in the Statement of Comprehensive Income.
Fixed assets and computer software
Fixed assets are carried at historical cost less accumulated depreciation and are depreciated on the straight -line basis at
the following rates and estimated useful lives:
Building
Computer equipment
Furniture and fittings
Motor vehicles
Computer software
2.5%, 10%, 33.3%
20%, 25%
12.5% to 20%
20%
25%, 10%, 33.3%
(40 years, 10 year and 3 years)
(5 years, 4 years)
(8 years to 5 years)
(5 years)
(4 years, 10 years and 3 years)
Freehold land is not depreciated.
Assets under construction relate to assets which are in the process of being constructed or developed and are
currently not in use. No depreciation is charged on such assets. Upon completion, these assets will be transferred to their
appropriate asset category and depreciation will commence on the first day that the assets become available for use.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Assets
that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An asset’s carrying amount is written down immediately to its
recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. The recoverable
amount is the higher of the asset’s fair value less costs to sell and its value in use.
Dividends on members’ shares
Dividends on members’ shares are discretionary. Dividends, if any, are proposed by the Board of Directors and are subject
to ratification by the members at their AGM at which time an accrual is recognized. The obligation to pay the dividend
arises on ratification by the members and accordingly no provision for dividends in respect of the results for the year
ended July 31, 2022, has been made in these financial statements.
Employee benefit plans
The Credit Union’s employees participate in a defined contribution pension plan. The cost of Credit Union’s
contributions to the defined contribution pension plan is expensed as incurred. The Credit Union has no legal or
constructive obligations to pay further contributions if the plan does not hold sufficient assets to pay all employees the
benefits relating to employee service in the current and prior periods.
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