Credit Union Annual Report 2022 - Flipbook - Page 87
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2022
23. Financial instruments and other – fair values (continued)
As noted in Note 9 members shares are non-interest bearing, however, they may attract dividends. The directors
consider that the carrying value of members’ shares approximate their fair value due to the inherent characteristics of
the instruments for the years ending July 31, 2022 and 2021. As outlined above, members shares are non-interest
bearing, may attract a dividend and an element of those members shares act as collateral against members ’ loans.
Members’ savings accounts are available on demand. Members’ term deposits are at rates that re-price on each roll over
date.
IFRS 13 requires the Credit Union to classify fair value measurements using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements.
The level in the fair value hierarchy within which the fair value measurement is categorized in its entirety is determined
on the basis of the lowest level input that is significant to the fair value measuremen t in its entirety. For this purpose,
the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement
uses observable inputs that require significant adjustment based on unobservable inputs, that meas urement is a Level 3
measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires
judgment, considering factors specific to the asset or liability. The determination of what constitutes ‘observable’
requires significant judgment by the Credit Union. The Credit Union considers observable data to be that market data
that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by
independent sources that are actively involved in the relevant market. The carrying amounts of the Credit Union’s
financial assets and liabilities at the balance sheet date approximated their fair value due to the relative short -term nature
of the balances and/or fact that interest rates on loans reflect rates for new similar loans. Per the fair value hierarchy of
IFRS 13, all financial assets and liabilities are classified as Level 2. The fair value of the investment property is
disclosed in Note 7, and is based upon prices for similar properties, and is considered a Level 2 fair value.
24. Interest income
Interest income comprises of the following:
2022
Mortgage loans
Personal loans
Total interest on loans
$
$
12,885,727
5,926,574
18,812,301
2021
$
$
11,351,558
5,950,966
17,302,524
25. Other income
Other income comprises of fee income related to member services, loan application fees, delinquent loan fees and
miscellaneous income.
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