MCCU Annual Report - page 64

64
3.
Statement of Compliance, Basis of Preparation and Significant Accounting Policies (cont'd):
(n)
Liquid Assets -
(o)
League fees and stabilisation dues -
(p)
Comparative Information -
(q)
Risk Management -
(r)
Capital Management -
JCCUL has fixed the rate of league fees at 0.20% (2012 - 0.25%) of total assets. Stabilisation dues are
fixed at a rate of 0.35% (2012 - 0.35%) of total savings.
MANCHESTER CO-OPERATIVE CREDIT UNION (1977) LIMITED
For the purpose of the statement of cash flows, liquid assets include cash and cash equivalents which
consists of cash on hand, foreign and local savings accounts and current accounts held at banks.
There were no changes in the Credit Union’s approach to capital management during the year.
The Credit Union is required by the Jamaica Co-operative Credit Union League to maintain its
institutional capital at a minimum of eight percent (8%) of total assets. At the date of the statement of
financial position, the ratio of institutional and permanent share capital to total assets was 17.32% (2012 -
16.77%) which is in compliance with the requirements.
The Credit
Union’s
objectives when managing capital are to safeguard
it’s
ability to continue as a going
concern, to provide returns to its members, to provide benefits for other stakeholders, and to maintain a
strong capital base in order to support the development of its business. The Credit Union defines its
capital as
members’
permanent share capital, institutional capital and other eligible reserves. Its dividend
payout is made taking into account maintenance of an adequate capital base. At least twenty percent
(20%) of net income before honoraria must be transferred to reserves each year.
YEAR ENDED 31ST DECEMBER 2013
The Board of Directors have overall responsibility for the implementation and monitoring of the Credit
Union's management of risk. Its policies have been devised to identify and analyse the risks faced by the
Credit Union. The Board, through its executive officers and various committees, is responsible for
monitoring compliance with those policies and for reviewing their adequacy. All committees report
periodically to the Board.
NOTES TO THE FINANCIAL STATEMENTS - (CONT'D)
Where necessary, comparative figures have been re-classified to conform to changes in presentation in
the current year. In particular, comparatives have been adjusted to take into account the requirements of
IFRS.
MANCHESTER CO-OPERATIVE CREDIT UNION
ANNUAL REPORT 2013
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