MCCU Annual Report - page 60

60
3.
Statement of Compliance, Basis of Preparation and Significant Accounting Policies (cont'd):
(c)
Loans to Members and Provisions for Loan Impairment (cont'd) -
(d)
Investments -
(e)
Property, Plant and Equipment -
YEAR ENDED 31ST DECEMBER 2013
MANCHESTER CO-OPERATIVE CREDIT UNION (1977) LIMITED
Regulatory loan loss reserve requirements that exceed the provision required under International
Financial Reporting Standards - IAS 39 "Financial Instruments" are dealt with in a non-distributable loan
loss reserve as a transfer from unappropriated surplus.
Land and Buildings are shown at deemed cost less subsequent depreciation for building. Under IFRS 1,
a first time adopter may elect to use a previous GAAP revaluation of an item of property, plant and
equipment as its deemed cost. The Credit Union has elected to apply this provision. All other property,
plant and equipment are stated at historical cost less accumulated depreciation and impairment if any.
Held to maturity securities are those with fixed or determinable payments and fixed maturity. A positive
intent and ability to hold to maturity must be demonstrated.
All purchases and sales of investment securities are recognised at settlement date.
Available-for-sale securities are those intended to be held for an indefinite period of time and which may
be sold in response to needs for liquidity or changes in interest rates or market prices. They are initially
recognized at cost, which includes transaction costs, and subsequently re-measured at fair value based on
quoted bid prices or amounts derived from cash flow models. Unrealised gains or losses arising from
changes in fair value of available-for-sale securities are recognized in members' equity. When the
securities are disposed of or impaired, the related accumulated unrealised gains or losses included in
members' equity are transferred to the statement of comprehensive income.
Investments are classified as available-for-sale or held-to-maturity securities. Management determines
the appropriate classification of investments at the time of purchase.
NOTES TO THE FINANCIAL STATEMENTS - (CONT'D)
MANCHESTER CO-OPERATIVE CREDIT UNION
ANNUAL REPORT 2013
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