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Chartered Accountants& Business Advisors

AMGECU CREDIT UNIONCO-OPERATIVE SOCIETY LIMITED

FINANCIAL STATEMENTS

31 DECEMBER 2015


AMGECU CREDIT UNION CO-OPERATIVE SOCIETY LIMITED

31 DECEMBER 2015

INDEX

Statement of Management Responsibilities 1

Independent Auditors' Report 2

Statement of Financial Position 3

Statement of Comprehensive Income 4

Statement of Changes in Equity 5 - 6

Statement of Cash Flows 7

Notes to the Financial Statements 8 - 44

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AMGECU Credit Union Co-operative Society Limited

Statement of Management Responsibilities

it is the responsibility of management to prepare financial statements for each financial year

which give a true and fair view of the state of affairs of the Credit Union as at the end of the

financial year and of the operating results of the Credit Union for the year. It is also

management's responsibility to ensure that the Credit Union keeps proper accounting records

which disclose with reasonable accuracy at any time the financial position of the Credit Union.

They are also responsible for safeguarding the assets of the Credit Union.

Management is responsible for the preparation and fair presentation of these financial

statements in accordance with International Financial Reporting Standards. This responsibility

includes designing, implementing and maintaining internal control relevant to the preparation

and fair presentation of financial statements that are free from material misstatement, whether

due to fraud or error, selecting and applying appropriate accounting policies, and making

accounting estimates that are reasonable in the circumstances.

Management accepts responsibility for the annual financial statements, which have been

prepared using appropriate accounting policies supported by reasonable and prudent judgments

and estimates, in conformity with International Financial Reporting Standards. Management are

of the opinion that the financial statements give a true and fair view of the state of the financial

affairs of the Credit Union and of its operating results. Management further accepts

responsibility for the maintenance of accounting records which may be relied upon in the

preparation of financial statements, as well as adequate systems of internal financial control.

Nothing has come to the attention of Management to indicate that the Credit Union will not

remain a going concern for at least the next twelve months from the date of this statement.

Sec et ral nager Accountant4* Ma , 201 .

4m March, 2016.

4 Borde Street, Port of Spain, Republic of Trinidad and Tobago

P.O. Box 1587, Port of Spain, Republic of Trinidad and Tobago

Telephone: (868) 627-2907,627-1054,623-2397,782-3922, 782-3983~ Fax: (868) 624-4464

E-Mail: [email protected] // Website: www.ameecu.com


INDEPENDENT AUDITORS' REPORT

The MembersAMGECU Credit Union Co-operative Society Limited

We have audited the accompanying financial statements ofAMGECU Credit Union Co-operative SocietyLimited, which comprise the statement of financial position as at 31 December 2015 and the statements ofcomprehensive income, changes in equity and cash flows for the year then ended, and a summary ofsignificant accounting policies and other explanatory information.

Managements Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with International Financial Reporting Standards, and for such internal control asmanagement determines is necessary to enable the preparation of financial statements that are free frommaterial misstatement, whether due to fraud or error.

Auditors'ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with International Standards on Auditing. Those standards require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonable assurancewhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditors' judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud or error.In making those risk assessments, the auditors consider internal control relevant to the entity's preparationand fair presentation of the financial statements in order to design audit procedures that are appropriate inthe circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity'sinternal control. An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by management, as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position ofAMGECU Credit Union Co-operative Society Limited as of 31 December 2015, and of its financialperformance and its cash flows for the year then ended in accordance with International FinancialReporting Standards.

Port-of-Spain

4 March 2016

Direct tel (868) 624-4569 I Direct fax (868) 624-4388

Email [email protected]

PKF I 90 Edward Street I Port-of-Spain 1 PO Bag 250 Belmont I Trinidad I WI

Directors Rene6-Lisa Philip | Mark K. Superville

3.


STATEMENT OF FINANCIAL POSITION

ASSETS31 December

Notes 2015 2014

(Restated)Current Assets:

Cash in hand and at bank 5 $ 9,989,128 $ 7,915,958

Other financial assets 6 27,778,552 29,287,234

Accounts receivable 7 705,828 806,012

Amounts due from member companies 8 853,600 821,016

Total Current Assets 39,327,108 38,830,220

Non-Current Assets:Loans to members 9 109,514,555 103,983,395

Other financial assets 10 19,967,682 18,773,246

Employee benefit assets 11 5,671,000 4,082,000

Investment properties 12 11,629,456 11,709,903

Fixed assets 13 3,085,398 3.106,887

Total Non-Current Assets 149,868,09I 141,655,431

Total Assets S 189,195.199 5 180.485.651

LIABILITIES AND MEMBERS' EQUITY

Current Liabilities:Accounts payable and accrued charges 14 $ 854,904 $ 665,270

Christmas Savings Plan 15 202,681 179,271

Education Savings Plan 16 190,383 180,027

Total Current Liabilities 1,247,968 1,024,568

Non-Current Liabilities:Members' savings and pooled funds 17 9,045,191 7,785,488

Employee benefit obligation 18 87,000 53,000

Members' shares 19 151,378,917 146,177,091

Total Non-Current Liabilities 160,511,108 154,015,579

Total Liabilities 161,759,076 155,040,147

Members' Equity:Reserve Fund 20 11,838,080 11,077,917

Building Fund 21 100,000 100,000

Education Fund 21 200,000 200,000

Charitable Fund 21 50,000 50,000

Investment Re-measurement Reserve 22 5,642,110 5,077,435

Undivided surplus 9,605,933 8,940,152

Total Members' Equity 27,436,123 25,445,504

Total Liabilities and Members' Equity S 189,195.199 S 180,485,651

These financial stat ts were approved by the Board of Directors and authorise iss eo 4 March 2016

and signed on the al y: ,

President See e ar a Su isory Committee

(The accompanying notes form an in al pa these financial state nts)

4.


STATEMENT OF COMPREHENSIVE INCOME

31 DecemberNotes 2015 2014

(Restated)Income:

Interest on loans to members $ 10,433,722 $ 9,876,746

Investment income 27 1,472,469 1,973,099

Miscellaneous income 28 662,947 629,365

Total Income 12,569,138 12,479,210

Expenses:

Administrative expenses 29 2,317,746 2,145,239

Board and committee expenses 30 400,410 389,447

Depreciation 290,393 282,622

Fund expenses 31 171,095 195,482

Impairment of financial assets - 1,284,922

Interest on members' savings and pooled funds 32 50,751 51,456

Investment property expenses 83,241 89,559

Personnel costs 33 1,661,668 1,532,112

Total Expenses 4,975,304 5,970,839

Net surplus for the year 7,593,834 6,508,371

Other Comprehensive Income:

Items that may be reclassified subsequently toprofit or loss:

Net gain/(loss) on equity investments 564,675 (828,863)

Items that will not be reclassified subsequently toprofit or loss:

Net actuarial gain on employee benefit asset andobligation 34 1,369,000 128,000

Total Other Comprehensive Income for the year 1,933,675 (700,863)

Total Comprehensive Income S 9.527.509 $ 5.807,508

(The accompanying notes form an integral part of these financial statements)

5.


STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMEBR 2015

InvestmentRe-

Reserve Building Education Charitable measurement UndividedFund Fund Fund Fund Reserve Surplus Total

Balance as at 1 January 2015

(Restated) $11,077,917 $ 100,000 $ 200,000 $ 50,000 $ 5,077,435 $ 8,940,152 $25,445,504

Total comprehensive income - - - - 564,675 8,962,834 9,527,509

Transfer from net surplus 759,383 - 159,148 4,912 - (923,443)

11,837,300 100,000 359,148 54,912 5,642,110 16,979,543 34,973,013

Entrance fees 780 - - - - (780)

Fund expenses - - (159,148) (4,912) - 164,060

Dividends paid (net) - 2014 - - - - - (7,536,890) (7,536,890)

Balance as at31 December 2015 $11.838,080 S 100,000 $ 200,000 $ 50,000 $ 5,642.110 $ 9,605.933 $27.436.123


6.


STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMEBR 2015

InvestmentRe- Property

Reserve Building Education Charitable measurement Revaluation UndividedFund Fund Fund Fund Reserve Reserve Total

Balance as at 1 January 2014 aspreviously reported $10,400,535 $ 100,000 $ 200,000 $ 50,000 $ 4,822,516 $ 834,125 $ 9,482,113 $25,889,289

Restatement (Note 23) - - - - - (834,125) 58,911 (775,214)

10,400,535 100,000 200,000 50,000 4,822,516 - 9,541,024 25,114,075

Total comprehensive income - - - - (828,863) - 6,636,371 5,807,508

Transfer from net surplus 650,837 - 143,269 24,570 - - (818,676)

11,051,372 100,000 343,269 74,570 3,993,653 - 15,358,719 30,921,583

Entrance fees 1,200 - - - - - (1,200)

Fund expenses - - (143,269) (24,570) - - 167,839

Impairment of financial assets - - - - 1,284,922 - - . 1,284,922

Transfer of realised gains ondisposal of financial assets - - - - (201,140) - - (201,140)

Transfer from ex-members 808 - - - - - - 808

Transfer from unclaimedshares 24,537 - - - - - - 24,537

Dividends paid (net) - 2013 - - -

- - - (6,585,206) (6,585,206)

Balance as at31 December 2014( Restated) $11,077,917 $ 100,000 $ 200,000 $ 50,000 $ 5,077,435 $ - $ 8,940,152 $25.445,504

(The accomDRBVine notes form an interral Dart of these financial statements)

7.


STATEMENT OF CASHFLOWS

31 December

2015 2014(Restated)

Cash Flows from Operating Activities:Net surplus for the year $ 7,593,834 $ 6,508,371

Employee Benefit/Obligation - IAS #19 Adjustment (186,000) (171,000)Depreciation 290,393 282,622

Impairment of financial assets - 1,284,922

Loss/(gain) on disposal of investments 121,443 (205,709)

Interest on investments (1,099,412) (1,174,240)

Provision for loan losses expense 252,086 100,004

Adjusted net surplus for the year 6,972,344 6,624,970

Net change in amounts due from member companies (32,584) 304,432

Net change in accounts receivable and prepayments 100,184 (152,706)

Net change in accounts payable and accrued charges 189,634 137,298

Net change in Christmas savings plan 23,410 (9,350)

Net change in Education savings plan 10,356 7,730

Transfers to Reserve Fund - 25,345

Cash generated from Operating Activities 7,263,344 6,937,719

Interest received 1,099,412 1,174,240

Cash Flows from Investing Activities:Net movement in members' loans (5,783,246) (12,111,435)

Net change in fixed assets and investment properties (188,457) (176,086)

Additions to investments (15,487,843) (9,298,337)

Sale of investments 16,245,321 10,239,998

Proceeds from disposal of fixed asset - 17,240

Cash used in Investing Activities (5,214,225) (11,328,620)

Net cash flow before financing activities 3,148,531 (3,216,661)

Cash Flows from Financing Activities:Net change in members' savings and pooled funds 1,259,703 (349,613)

Net change in members' shares 5,201,826 8,614,209

Dividends paid (net) (7,536,890) (6,585,206)

Cash (used in)/generated from Financing Activities (1,075,361) 1,679,390

Net change in cash and cash equivalents 2,073,170 (1,537,271)

Cash and cash equivalents at beginning of year 7,915,958 9,453,229

Cash and cash equivalents at end of year $ 9.989.128 $ 7,915,958

Represented by:Cash in hand and at bank $ 9.989,128 $ 7,915,958


8.


NOTES TO THE FINANCIAL STATEMENTS

31 DECEMBER 2015

1. Incorporation and Principal Activities:

The Society was incorporated under the Co-operative Societies Act of the Republic of Trinidadand Tobago Ch 81:03 on 28th March 1956. The registered office of the Credit Union is located at#4 Borde Street, Port of Spain. The Society operates in the capacity of a Credit Union for thebenefit of employees of Ansa Mc Al Limited and its subsidiary companies.

During the year ended 31 December 2011, the Society changed its name to AMGECU CreditUnion Co-operative Society Limited.

2. Significant Accounting Policies:

(a) Basis of financial statements preparation

These financial statements are prepared in accordance with International FinancialReporting Standards (IFRS), and are expressed in Trinidad and Tobago dollars and statedin whole dollars. These financial statements are stated on the historical cost basis, exceptfor the measurements at fair value of available-for-sale investments and certain otherfinancial instruments.

(b) Use of estimates

The preparation of financial statements in conformity with International FinancialReporting Standards requires the use of certain critical accounting estimates and requiresmanagement to exercise its judgement in the process of applying the Society's accountingpolicies. It also requires the use of assumptions that affect the reported amount of assetsand liabilities and disclosure of contingent assets and liabilities at the date of the financialstatements and the reported amounts of the income and expenditure during the reportingperiod. Although these estimates are based on management's best knowledge of currentevents and actions, actual results may ultimately differ from those estimates.

(c) New Accounting Standards and Interpretations

i) The Society has not applied the following standard that became effective during thecurrent year, as it does not apply to the activities of the Society or have a materialimpact on its financial statements:

IFRS 7 Financial Instruments: Disclosures - Mandatory effective date andtransition disclosures (effective for accounting periods beginning on orafter 1 January 2015).

ii) The Society has not applied the following standards, revised standards andinterpretations that have been issued but are not yet effective as they either do notapply to the activities of the Society or have no material impact on its financialstatements, except for IFRS 9 Financial Instruments:

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations -

Amendments regarding changes in methods of disposal (effective foraccounting periods beginning on or after 1 January 2016).

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31 DECEMBER 2015

2. Significant Accounting Policies (Cont'd):

(c) New Accounting Standards and Interpretations (cont'd)

IFRS 7 Financial Instruments: Disclosures - Servicing contracts and applicabilityto condense interim financial statements (effective for accounting periodsbeginning on or after 1 January 2016).

IFRS 9 Financial Instruments (effective for accounting periods beginning on orafter 1 January 2018).

IFRS 10 Consolidated Financial Statements - Amendments regarding the sale orcontribution of assets between an investor and its associate or jointventure (effective for accounting periods beginning on or after 1 January2016).

IFRS 10 Consolidated Financial Statements - Amendments regarding theapplication of consolidation exception (effective for accounting periodsbeginning on or after 1 January 2016).

IFRS 11 Joint Arrangements - Amendments regarding the accounting foracquisitions of an interest in a joint operation (effective for accountingperiods beginning on or after 1 January 2016).

IFRS 12 Disclosure of Interest in Other Entities - Amendments, regarding theapplication of consolidation exception (effective for accounting periodsbeginning on or after 1 January 2016).

IFRS 14 Regulatory Deferral Accounts (effective for accounting periodsbeginning on or after 1 January 2016).

IFRS 15 Revenue from Contracts with Customers (effective for accountingperiods beginning on or after 1 January 2017).

IFRS 16 Leases (effective for accounting periods beginning on or after 1 January2019).

IAS 1 Presentation of Financial Statements - Amendments resulting fromdisclosure initiative (effective for accounting periods beginning on orafter 1 January 2016).

IAS 7 Statement of Cash Flows - Amendments resulting from disclosureinitiative (effective for accounting periods beginning on or after 1 January2017).

IAS 12 Income Taxes - Amendments resulting from recognition of deferred taxassets for unrealised losses (effective for accounting periods beginning onor after 1 January 2017).

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31 DECEMBER 2015


(c) New Accounting Standards and Interpretations (cont'd)

IAS 16 Property, Plant and Equipment - Amendments regarding the clarificationof acceptable methods of depreciation and amortisation (effective foraccounting periods beginning on or after 1 January 2016).

IAS 16 Property, Plant and Equipment - Amendments bringing bearer plants intothe scope of IAS 16 (effective for accounting periods beginning on orafter 1 January 2016).

IAS 19 Employee Benefits: Disclosures - Amendments regarding discount rate:regional market issue (effective for accounting periods beginning on orafter 1 January 2016).

IAS 27 Separate Financial Statements - Amendments reinstalling the equitymethod as an accounting option for investments in subsidiaries, jointventures and associates in an entity's separate financial statements(effective for accounting periods beginning on or after 1 January 2016).

IAS 28 Investment in Associates - Amendments regarding the sale orcontribution of assets between investor and its associate or joint venture(effective for accounting periods beginning on or after 1 January 2016).

IAS 28 Investment in Associates - Amendments regarding the application ofconsolidation exception (effective for accounting periods beginning on orafter 1 January 2016).

IAS 34 Interim Financial Reporting - Amendments regarding disclosure ofinformation "elsewhere in the interim financial report" (effective foraccounting periods beginning on or after 1 January 2016).

IAS 38 Intangible Assets - Amendments regarding the clarification of acceptablemethods of depreciation and amortisation (effective for accountingperiods beginning on or after 1 January 2016).

IAS 41 Agriculture - Amendments bringing bearer plants into the scope of IAS16 (effective for accounting periods beginning on or after 1 January2016).

The adoption of IFRS 9 Financial Instruments may result in significant changes in theSociety's classification and presentation of financial instruments.

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31 DECEMBER 2015


(d) Fixed assets

Fixed assets are stated at historical cost less accumulated depreciation. Depreciation isprovided on the straight-line basis.

The following rates considered appropriate to write-off the assets over their estimateduseful lives are applied:

Land and Building - 2%

Office improvements - 25%

Computer equipment - 33%

Furniture and equipment - 25%

No depreciation is provided on freehold land or capital work-in-progress.

The assets' residual values and useful lives are reviewed at each Statement of FinancialPosition date, and adjusted as appropriate. An asset's carrying amount is written downimmediately to its recoverable amount if the asset's carrying amount is greater than itsestimated recoverable amount.

Gains and losses on disposals are determined by comparing the proceeds with thecarrying amount and are recognised within the "Gain /Loss on Disposal" account in theStatement of Comprehensive Income.

e) Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation(including property under construction for such purposes). Investment properties aremeasured initially at cost, including transaction costs. Subsequent to initial recognition,investment properties are measured at cost less accumulated depreciation and accumulatedimpairment losses, which are included in profit or loss in the period in which they arise.

An investment property is derecognized upon disposal or when the investment property ispermanently withdrawn from use and no future economic benefits are expected from thedisposal. Any gain or loss arising on derecognition of the property (calculated as thedifference between the net disposal proceeds and the carrying amount of the asset) isincluded in profit or loss in the period in which the property is detecognized.

The Society utilises the same depreciation rates and basis used for its fixed assets for theInvestment Properties.

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31 DECEMBER 2015


(f) Financial instruments

Financial instruments carried on the Statement of Financial Position include cashresources, investments, loans, deposits and other liabilities. The standard treatment forrecognition, de-recognition, classification and measurement of the Credit Union'sfinancial instruments are noted in notes (i) - (iv) below, whilst additional information onspecific categories of this Credit Union's financial instruments are disclosed in notes 5-

8,10.

i) Recognition

The Credit Union initially recognizes loans, advances and deposits on the datethat they are originated. All other financial assets and liabilities (including assetsand liabilities designated at fair value through profit or loss) are initiallyrecognized on the transaction date on which this Credit Union becomes a party tothe contractual provision of the instrument.

ii) De-recognition

This Credit Union de-recognizes a financial asset when the contractual rights tothe cash flows from the asset expire, or it transfers the rights to receive thecontractual cash flows on the financial asset in a transaction in whichsubstantially all the risks and rewards of ownership of the financial asset aretransferred.

iii) Classification

This Credit Union classifies its financial assets into the following categories:Cash and cash equivalents, financial assets at fair value through profit and loss;loans and receivables; held-to-maturity; and available-for sale assets.Management determines the classification of its investments at initialrecognition.

Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand, deposits with banks and short

term highly liquid investments with maturities of three months or less whenpurchased. These are shown at cost which approximates market value.

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31 DECEMBER 2015


(f) Financial instruments (cont'd)

iii) Classification (cont'd)

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed ordeterminable payments that are not quoted in an active market. They arisewhen this Credit Union provides money directly to its members with no intentionof trading the receivable. Loans to members are stated at principal amountsoutstanding net of allowances for loan losses. Specific provisions are made forpotential losses on non-performing loans on the basis of net realizable value.Periodic portfolio reviews are conducted during the course of each year todetermine the adequacy of provisions. Loans are secured by various forms ofcollateral, including charges over tangible assets, certificates of deposit, andassignment of funds held with other financial institutions.

Held to maturity

Held-to-maturity investments are non-derivative financial assets with fixed ordeterminable payments and fixed maturities that this Credit Union's managementhas the positive intention and ability to hold to maturity. If this Credit Unionwere to sell other than an insignificant amount of held-to-maturity assets, theentire category would be compromised and re-classified as available-for-sale.

Available-for-sale

Available-for-sale investments are those intended to be held for an indefiniteperiod of time, and may be sold in response to needs for liquidity or changes ininterest rates, exchange rates or equity prices.

Members' deposits

Members' deposits are stated at the principal amounts invested by memberstogether with any capitalised interest. Members' deposits bear interest at ratesthat are not significantly different from current market rates and are assumed tohave discounted cash flow values which approximate carrying values.

Members' shares

Members' shares are classified as equity and stated at fair value.

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31 DECEMBER 2015



iv) Measurement

Financial instruments are measured initially at cost, including transaction costs.Subsequent to initial recognition, all financial assets at fair value through profitand loss and available-for-sale assets are measured at fair value, based on theirquoted market price, at the Statement of Financial Position date, without anydeduction for transaction costs. Where the instrument is not actively traded orquoted on recognized exchanges, fair value is determined using discounted cashflow analysis.

Any available-for-sale asset that does not have a quoted market price in an activemarket and where fair value cannot be reliably measured is stated at cost,including transaction costs, less impairment losses. Gains and losses, bothrealized and unrealized, arising from the change in the financial assets at fairvalue through profit and loss are reported in other income.

All non-trading financial liabilities, originated loans and receivables and held-to-

maturity assets are measured at amortised costs less impairment losses.Amortized cost is calculated on the effective interest method.

On disposal or on maturity of an investment, the difference between the netproceeds and the carrying amount is included in the Statement of ComprehensiveIncome. When available-for-sale assets are sold, converted or otherwisedisposed of, the cumulative gain or loss recognized in equity is transferred to theStatement of Comprehensive Income.

v) Impairment of financial assets

The Credit Union assesses at each Statement of Financial Position date whetherthere is objective evidence that a financial asset or group of financial assets isimpaired.

A financial asset or group of financial assets is impaired and impairment lossesare incurred if and only if, there is objective evidence of impairment as a result ofone or more events that occurred after the initial recognition of the asset (a "lossevent") and that event (or events) has an impact on the estimated future cashflows of the financial asset or group of financial assets that can be reliablyestimated.

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31 DECEMBER 2015



v) Impairment of financial assets (cont'd)

Objective evidence that a financial assets or group of financial assets is impairedincludes observable data that comes to the attention of the Credit Union about thefollowing loss events:

* Significant financial difficulty of the issuer or obligor.

* A breach of contract, such as default or delinquency in interest or principalpayments.

* It becoming probable that the borrower will enter in bankruptcy or otherfinancial reorganization.

* The disappearance of an active market for that financial asset because offinancial difficulties.

* Observable data indicating that there is a measurable decrease in theestimated cash flows from a group of financial assets since the initialrecognition of those assets, although the decrease cannot yet be identifiedwith individual financial assets in the group, including adverse changes in thepayment status of borrowers in the Credit Union or national or economicconditions that correlate with defaults on assets in the Credit Union.

(g) Income recognition

Interest on members' loans and fixed deposits are accounted for on the accrual basis.Interest on saving and current accounts and dividend income are accounted for on thecash basis.

(h) Members' special deposits

Members' special deposits bear interest at rates approved by the Board of Directors. TheBoard of Directors periodically reviews these rates.

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31 DECEMBER 2015


(i) Employee benefits

The Alston's Pension Fund Plan covers monthly paid employees. This is a contributorydefined pension plan that offers members' retirement benefits in accordance with thePlan's Trust Deed and Rules. Trustees administer the pension plan and the Trust isentirely divorced from the Credit Union's finances.

The pension accounting cost for the plan is assessed using the project unit credit method.Under this method, the cost of provided pensions is charged to the statement ofcomprehensive income so as to spread the regular cost ofa qualified actuary, who carriesout a full valuation of the plan every year.

The Credit Union also provides post retirement health benefits to their retirees. Theentitlement to these benefits is based on the employee remaining in service up to theretirement age and the completion of a minimum service period. The expected costs ofthese benefits are accrued over the period of employment, using an accountingmethodology similar to that of the defined benefit plan.

(j) Unclaimed Dividends

In accordance with Bye Law 8(a) of the Credit Union, all dividends to membersremaining unclaimed after one (1) year from the date of declaration are transferred toUnclaimed Dividends. Any sum remaining unclaimed in this account for two (2) yearsmay be transferred to the Reserve Fund.

(k) Dividends

Dividends are recommended by the Board of Directors and approved by the members atthe Annual General Meeting. Dividends are an appropriation of retained earnings asdisclosed in the Statement of Changes in Members' Equity and Reserves. In accordancewith IAS # 10, the dividends are not accounted for as a liability at year-end.

The dividends are computed on the basis of the average number of shares in issuethroughout the year, the average being determined on the basis of the number of shares inissue at the end of each month.

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(1) Foreign Currency

Transactions in foreign currencies are translated at the rate of exchange ruling at thetransaction date. Foreign monetary assets and liabilities denominated in foreigncurrencies are expressed in Trinidad and Tobago dollars at rates of exchange prevailing atthe Statement of Financial Position date. Resulting translation differences and profits andlosses from trading activities are included in the Statement of Comprehensive Income.

3. Financial Risk Management:

Financial risk factors

The Society's activities are primarily related to the use of financial instruments. The Societyaccepts funds from members and earns interest by investing in equity investments, governmentsecurities and on-lending to members at higher interest rates.

Financial Instruments

The following table summarizes the carrying amounts and fair values of the Society's financialassets and liabilities:

2015Carrying Fair

Value Value

Financial AssetsCash in hand and at bank $ 9,989,128 $ 9,989,128

Other financial assets (Short-term investments) 27,764,254 27,778,552

Accounts receivables and prepayments 705,828 705,828

Amounts due from Members' Companies 853,600 853,600

Loans to members 109,514,555 109,514,555

Other financial assets (Long-term investments) 14,341,450 19,967,682

Employee benefit assets 5,671,000 5,671,000

Financial LiabilitiesAccounts payable and accrued charges 854,904 854,904

Members' deposits: Christmas Saving Plan (short-term) 202,681 202,681

Members' deposits: Education Saving Plan (short-term) 190,383 190,383

Members' savings and pooled funds (long-term) 9,045,191 9,045,191

Employee benefit obligation 87,000 87,000

Members' shares 151,378,917 151,378,917

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31 DECEMBER 2015

3. Financial Risk Management (Cont'd):

Financial Instruments (cont'd) -

2014

Carrying FairValue Value

Financial AssetsCash in hand and at bank $ 7,915,958 $ 7,915,958

Other financial assets (Short-term investments) 28,939,471 29,287,234Accounts receivables and prepayments 806,012 806,012

Amounts due from Members' Companies 821,016 821,016

Loans to members 103,983,395 103,983,395Other financial assets (Long-term investments) 14,010,058 18,773,246

Employee benefit assets 4,082,000 4,082,000

Financial LiabilitiesAccounts payable and accrued charges 665,270 665,270

Members' deposits: Christmas Saving Plan (short-term) 179,271 179,271Members' deposits: Education Saving Plan (short-term) 180,027 180,027Members' savings and pooled funds (long-term) 7,785,488 7,785,488

Employee benefit obligation 53,000 53,000Members' shares 146,177,091 146,177,091

The Society is exposed to interest rate risk, credit risk, liquidity risk, currency risk, operationalrisk, compliance risk and reputation risk arising from the financial instruments that it holds. Therisk management policies employed by the Society to manage these risks are discussed below:

(a) Interest rate risk -

Interest rate risk is the risk that the fair value or future cash flows of a financialinstrument will fluctuate because of changes in market interest rates.

The Society is exposed to interest rate risk through the effect of fluctuations in theprevailing levels of interest rates on interest bearing financial assets and liabilities,including investments in bonds, loans, customer deposits and other funding instruments.

19.



31 DECEMBER 2015



(a) Interest rate risk -

The exposure is managed through the matching of funding products with financialservices and monitoring market conditions and yields.

i) Bonds

The Society invests mainly in medium term bonds consisting of fixed rateinstruments.

The market values of the fixed rate bonds are not very sensitive to changes ininterest rates. The market values of the floating rate bonds are sensitive tochanges in interest rates. The longer the maturity of the bonds, the greater is thesensitivity to changes in interest rates. Because these assets are being held tomaturity and are not traded, any changes in market values will not impact theStatement of Income.

ii) Loans

The Society generally invests in fixed rate loans to members for terms thataverage five years, however, mortgage loans can extend to a maximum of twenty(20) years. These are funded mainly from member deposits and shares and loanrepayments.

20.



31 DECEMBER 2015



Interest rate sensitivity analysis

The Society's exposure to interest rate risk is summarized in the table below, which analyses assets andliabilities at their carrying amounts categorized according to their maturity dates.

2015

Non-Effective Up to 1 to Over Interest

Rate A 5_years 5m Bearing Total

Financial AssetsCash in hand and at bank 0.01% $ 9,562,304 $ - $ - $ 426,824 $ 9,989,128Other financial assets 4.02% 27,778,552 -

- - 27,778,552Accounts receivables and prepayments -

- - - 705,828 705,828

Amounts due from Members' Companies - -

- - 853,600 853,600Loans to members 12.00% . 2,242,? 18 32,700,131 74,572,206 - _LO9,H4,Other financial assets 400% - 2,676,916 17,290,766 - 19,967,682Employee benefit assets 5.00% - -

- 5,671,000 5,671,000

Financial LiabilitiesAccounts payable and accrued charges -

- -

- 854,904 854,904Members' deposits: Christmas Saving 1.00% 202,681 - -

- 202,681Members' deposits: Education Saving 1.00% 190,383 - -

- 190,383Members' savings and pooled funds 0.75% 9,045,191 - - - 9,045,191Employee benefit obligation 5.00% - -

- 87,000 87,000Members' shares 5.30% 151,378,917 - - - 151,378,917

21.



31 DECEMBER 2015



Interest rate sensitivity analysis (cont'd)2014

Non-

Effective Up to 1 to Over InterestRate & M & Bearing Total

Financial AssetsCash in hand and at bank 0.01% $ 6,491,233 $ - $ - $ 1,424,725 $ 7,915,958Other financial assets 4.02% 28,939,471 - - - 28,939,471Accounts receivables and prepayments - - - - 806,012 806,012Amounts due from Members' Companies - - - - 821,016 821,016Loans to members 12.00% 3,498,806 80,731,379 19,753,210 - 103,983,395Other financial assets 4.00% 1,546,839 3,107,052 14,119,355 - 18,773,246Employee benefit assets 5.00% - - - 4,082,000 4,082,000

Financial LiabilitiesAccounts payable and accrued charges - - - - 665,270 665,270Members' deposits: Christmas Saving 1.00% 179,272 - - - 179,272Members' deposits: Education Saving 1.00% 180,027 - - - 180,027Members' savings and pooled funds 1.00% 7,785,489 - - - 7,785,489Employee benefit obligation 5.00% - - - 53,000 53,000Members' shares 5.60% 146,177,091 - - - 146,177,091

22.



31 DECEMBER 2015



(b) Credit risk -

Credit risk arises when a failure by counter parties to discharge theirobligations could reduce the amount of future cash inflows from financialassets on hand at the Statement of Financial Position date. The Society reliesheavily on a written Loan Policy Manual, which sets out in detail the currentpolicies governing the lending function and provides a comprehensiveframework for prudent risk management of the credit function. Adherence tothese guidelines is expected to communicate the Society's lendingphilosophy; provide policy guidelines to team members involved in lending;establish minimum standards for credit analysis, documentation, decisionmaking and post-disbursement administration; as well as create thefoundation for a sound credit portfolio.

The Society's loan portfolio is managed and consistently monitored by theCredit Committee and is adequately secured by collateral and wherenecessary, provisions have been established for potential credit losses ondelinquent accounts.

Cash balances are held with high credit quality financial institutions and theSociety has policies to limit the amount of exposure to any single financialinstitution.

The Society also actively monitors global economic developments andgovernment policies that may affect the growth rate of the local economy.

(c) Liquidity risk -

Liquidity risk is the risk that arises when the maturity dates of assets andliabilities do not match. An unmatched position potentially enhancesprofitability, but can also increase the risk of losses. The Society hasprocedures with the object of minimizing such losses such as maintainingsufficient cash and other highly liquid current assets and by having availablean adequate amount of committed credit facilities.

The Society is able to make daily calls on its available cash resources tosettle financial and other liabilities.

23.



31 DECEMBER 2015



(c) Liquidity risk (cont'd)

i) Risk management

The matching and controlled mismatching of the maturities and interest rates ofassets and liabilities are fundamental to the management of the Society. TheSociety employs various asset/liability techniques to manage liquidity gaps.Liquidity gaps are mitigated by the marketable nature of a substantial segment ofthe Society's assets as well as generating sufficient cash from new and renewedmembers' deposits and shares.

To manage and reduce liquidity risk the Society's management actively seeks tomatch cash inflows with liability requirements.

ii) Liquidity Rap

The Society's exposure to liquidity risk is summarized in the table below whichanalyses assets and liabilities based on the remaining period from the Statementof Financial Position date to the contractual maturity date.

2015

Up to 1 to Over

Total

Financial AssetsCash in hand and at bank $ 9,989,128 $ - $ - $ 9,989,128Other financial assets 27,778,552 - - 27,778,552Accounts receivables and prepayments 705,828 - - 705,828Amounts due from Members' Companies 853,600 - - 853,600Loans to members 2,242,218 32,700,131 74,572,206 109,514,555Other financial assets - 2,676,916 17,290,766 19,967,682Employee benefit assets - - 5,671,000 5,671,000

Financial LiabilitiesAccounts payable and accrued charges 854,904 - - 854,904Members' deposits: Christmas Saving 202,681 - - 202,681Members' deposits: Education Saving 190,383 - - 190,383Members' savings and pooled funds 9,045,191 - - 9,045,19.1Employee benefit obligation - - 87,000 87,00()Members' shares 151,378,917 - - 151,378,917

24.



31 DECEMBER 2015



(c) Liquidity risk (cont'd)2014

Up to 1 to Over

& & Total

Financial AssetsCash in hand and at bank $ 7,915,958 $ - $ - $ 7,915,958Other financial assets 29,287,234 - - 29,287,234

Accounts receivables and prepayments 806,012 - - 806,012Amounts due from Members' Companies 821,016 - - 821,016Loans to members 3,498,806 80,731,379 19,753,210 103,983,395

Other financial assets 1,546,839 3,107,052 14,119,355 18,773,246

Employee benefit assets - - 4,082,000 4,082,000

Financial LiabilitiesAccounts payable and accrued charges 665,270 - - 665,270

Members' deposits: Christmas Saving 179,272 - - 179,272Members' deposits: Education Saving 180,027 - - 180,027Members' savings and pooled funds 7,785,489 - - 7,785,489Employee benefit obligation - - 53,000 53,000Members' shares 146,129,730 - - 146,129,730

(d) Currency risk -

Currency risk is the risk that the value of financial instruments will fluctuate due tochanges in foreign exchange rates. Currency risk arises when future commercialtransactions and recognized assets and liabilities are denominated in a currency that is notthe Society's measurement currency. The Society is exposed to foreign exchange riskarising from various currency exposures primarily with respect to the United StatesDollar. The Society's management monitors the exchange rate fluctuations on acontinuous basis and acts accordingly.

(e) Operational risk -

Operational risk is the risk derived from deficiencies relating to the Society's informationtechnology and control systems, as well as the risk of human error and natural disasters.The Society's systems are evaluated, maintained and upgraded continuously. Supervisorycontrols are installed to minimize human error. Additionally, staff is often rotated andtrained on an on-going basis.

25.



31 DECEMBER 2015



(f) Compliance risk -

Compliance risk is the risk of financial loss, including fines and other penalties, which arisefrom non-compliance with laws and regulations of the state. The risk is limited to asignificant extent due to the supervision applied by the Inspector of Financial Institutions atthe Central Bank of Trinidad and Tobago, as well as by the monitoring controls applied bythe Society. The Society has an Internal Audit Department which does routine reviews oncompliance.

(g) Reputation risk -

The risk of loss of reputation arising from the negative publicity relating to the Society'soperations (whether true or false) may result in a reduction of its clientele, reduction inrevenue and legal cases against the Society. The Society engages in public social endeavoursto engender trust and minimize this risk.

4. Critical Accounting Estimates and Judgments:

The preparation of financial statements in accordance with International Financial ReportingStandards requires management to make judgments, estimates and assumptions in the process ofapplying the Credit Union's accounting policies. See Note 2 (b).

Estimates and judgments are continually evaluated and are based on historical experience and otherfactors, including expectations of future events, which are believed to be reasonable under thecircumstances. The Credit Union makes estimates and assumptions concerning the future.However, actual results could differ from those estimates as the resulting accounting estimates will,by definition, seldom equal the related actual results. The estimates and assumptions that have asignificant risk of causing a material adjustment to the carrying amounts of assets and liabilitieswithin the next financial year are discussed below:

Changes in accounting estimates are recognised in the Statement of Comprehensive Income in theperiod in which the estimate is changed, if the change affects that period only, or in the period ofthe change and future periods if the change affects both current and future periods.

26.



31 DECEMBER 2015

4. Critical Accounting Estimates and Judgments (Cont'd):

The critical judgments, apart from those involving estimations, which have the most significanteffect on the amounts recognised in the financial statements, are as follows:

i) Whether investments are classified as held to maturity investments, available for sale orloans and receivables.

ii) Which depreciation method is used for fixed assets.

The key assumptions concerning the future and other key sources of estimation uncertainty at theStatement of Financial Position date (requiring management's most difficult, subjective orcomplex judgments) that have a significant risk of causing a material adjustment to the carryingamounts of assets and liabilities within the next financial year are as follows:

i) Impairment of assets

Management assesses at each Statement of Financial Position date whether assets areimpaired. An asset is impaired when the carrying value is greater than its recoverableamount and there is objective evidence of impairment. The recoverable amount is thepresent value of the future cash flows. Provisions are made for the excess of the carryingvalue over its recoverable amount.

ii) Fixed assets

Management exercises judgment in determining whether future economic benefits can bederived from expenditure to be capitalised and in estimating the useful lives and residualvalues of these assets.

5. Cash in Hand and at Bank:

31 December

2015 2014

Cash in hand $ 10,000 $ 10,000Cash in transit 416,824 1,414,725Trinidad and Tobago Unit Trust Corporation

- TT$ Income Fund 2,718,327 704,908- US$ Money Market Fund 2,861,711 2,568,236

Bourse Savinvest Structured Fund - 1,339,124RBC Royal Bank (Trinidad and Tobago) Limited -

Dividend Account 187,687 2,493

RBC Royal Bank (Trinidad and Tobago) Limited -

Multilplier Account 3,794,579 1,876,472

S 9.989,128 S 7,915.958

27.



31 DECEMBER 2015

6. Other Financial Assets:

31 December

2015 2014

Held-to-maturity

Caribbean Finance Company Limited $ 3,822,088 $ 3,657,501

Available-for-sale

Trinidad and Tobago Unit Trust Corporation- Income and Growth Fund 4,374,190 4,303,093

RBC Royal Bank (Trinidad and Tobago) Limited -ROYTRIN Mutual Funds 2,678,118 1,751,046Bourse Securities Limited - Savinvest Fund - 975,834Mutual Funds held with Republic Securities - MSCI 374,774 466,550KCL Capital Market Brokers Limited - Pooled funds 1,000,000 1,881,606AIC Securities Limited - 3,000,000Ansa Merchant Bank Limited 8,119,409 7,174,691Firstline Securities Limited 4,000,000 4,000,000Home Mortgage Bank - Mortgage Participation Fund 1,303,899Guardian Asset Management Limited 2,106,074 2,076,913

23,956,464 25,629,733

S 27.778,552 $ 29,287.234

7. Accounts Receivable and Prepayments:

31 December

2015 2014

Interest receivable on fixed deposits $ 135,845 $ 176,580Interest on loans 294,834 235,058Prepayments 60,116 53,486Family Indemnity Plan claims receivable - 119,789Staff Advances - 7,411Bond interest receivable 143,067 183,288Other receivables 28,991Rentreceivable 42,975 30,400

$ 705.828 5 806.012

28.



31 DECEMBER 2015

8. Amounts due from Members' Companies:

31 December

2015 2014

MBM Crown and Equipment $ - $ 65,068Alstons Marketing Company Limited - 159,540Alstons Shipping Limited 55,164 59,146Alstons Building Enterprises Limited 149,463Ansa Finance and Merchant Bank Limited 16,465 18,189Ansa Polymer 124,064 126,996Ansa Technologies Limited 27 27Carib Glassworks Limited - 104,047Penta Paints Caribbean Limited 57,246 42,559Windsor Construction Company Limited 18,597 18,930Trinidad Publishing Company Limited 42,436 43,064Ansa Mc Al Limited 63,949 55,840Ansa Mc Al Chemicals Limited - 190Brick Fource Limited/Bestcrete 105,606 -

Standard Distributors Limited 142,495Caribbean Development Company Limited 1,000Trinidad and Tobago Insurance Limited (TATL) (3,000) 29,455Tatil Life Assurance Limited - 28,154Tatil Life - Agents 48,173Trinidad Match Factory Limited 8,976 6,011Pensioners - 48,050OTC payroll group 22,939 15,750

$ 853.600 S 821,016

9. Loans to Members:

Loans to members are stated at principal outstanding net of provision for loan losses. Theprovision for loan losses is based on the Board's evaluation of the loan portfolio under currenteconomic conditions and past loan loss experience.

31 December

2015 2014

Loans to members $ 111,477,287 $105,694,041Less: Provision for loan losses (1,962,732) (1,710,646)

$ 109.514,555 $103.983,395Provision for loan losses

Balance at beginning of year $ 1,710,646 $ 1,610,642 ,

Charge for the year 252,086 100,004

Balance at end of year $ 1,962,732 $ 1,710.646



31 DECEMBER 2015

10. Other Financial Assets:31 December

2015 2014

Held-to-maturity

Government of the Republic of Trinidad and Tobago bonds $ 1,222,166 $ 1,199,701

Government of Belize - Guaranteed mortgage note 233,870 144,499PETROTRIN bonds 2,676,916 2,836,020

Less: Provision for diminution of investment 4,132,952 4,180,220

(233,870) (144,499)

3,899,082 4,035,721Available-for-sale

Angostura Holdings Limited - 1,000 shares (2014: 1,000) 13,970 13,500Ansa Mc Al Limited - 19,000 shares (2014: 19,000) v 1,265,970 1,261,600Ansa Merchant Bank Limited - 11,500 shares (2014: 11,500) / 448,040 453,675CLICO Investment Fund - 32,900 (2014 : Nil) 748,475Coca Cola Bottling Company - 2,086 shares (2014: 2,086) 2,577,629 1,164,145East Caribbean Financial Holdings Ltd. - 25,000 shares (2014: 25,000) 399,750 339,250First Caribbean International Bank Ltd.-37,600 shares (2014: 32,600) 38,076 163,000First Citizens Bank Limited - 103,301 shares (2014: 103,301) / 3,615,535 3,828,335Grace Kennedy and Company Limited -25,000 shares (2014: 33,000) 101,250 120,450Guardian Holdings Limited - 46,047 shares (2014: 46,047) 610,123 610,123Guardian Media Limited - 3,000 shares (2014: 3,000) / 59,250 59,310

Jamaica Money Market Brokers Limited - 10,000 shares (2014: 10,000) 5,500 4,300Massy Holdings Limited - 18,900 shares (2014: 18,900) / 1,161,405 1,289,925National Commercial Bank Jamaica Ltd.-Nil shares (2014: 10,000) / - 11,500National Enterprises Limited - 25,000 shares (2014: 25,000) / 409,250 435,500One Caribbean Media Limited - 10,000 shares (2014: 10,000) 220,000 250,000Point Lisas Industrial Development Co. Ltd.-22,191 shares (2014: 27,191) 86,989 101,966Prestige Holdings Limited - 38,397 shares (2014: 15,000) / 387,809 143,400Republic Bank Limited - 4,800 shares (2014: 4,800) / 537,264 574,752Royal Bank of Canada - 1,659 shares (2014: 1,659) / 576,370 729,276Sagicor Financial Corporation -7,000 shares (2014: 90,000) 43,400 535,500Scotiabank Trinidad and Tobago Limited - 19,000 shares (2014: 19,000) 1,176,860 1,168,880Trinidad Cement Limited - 28,200 shares (2014: 28,200) / 112,518 70,500Unilever Caribbean Limited - 9,901 shares (2014: 9,901) / 676,238 638,615West Indian Tobacco Company Limited -5,197 shares (2014: 5,197) 656,329 630.552

15,928,000 14,598,054Sagicor Financial Corporation 6.5% Preference shares -

20,000 shares (2014: 20,000) / 140,600 139,471

16,068,600 14,737,525

5 19.967.682 $ 18.773.246

30.



31 DECEMBER 2015

11. Employee Benefit Assets:

31 December

2015 2014

Amount Recognised in the Statement of Financial Position

Present value ofthe Defined Benefit Obligation $ 2,708,000 $ 2,354,000

Fair value of Plan assets (8,379,000) (8,192,000)

(5,671,000) (5,838,000)Unrecognised asset due to Limit in Paragraph 58 - 1,756,000

Asset recognised on the Statement of Financial Position (5,671,000) (4,082,000)

Net Amount Recognised in the Statement of Income

Current service cost 40,000 39,000Net interest cost (204,000) (189,000)Administrative expenses 2,000

Income recognised in the Statement of Income (162,000) (150,000)

Net Amount Recognised in Other Comprehensive Income

Experience losses/(gains) - Demographic 292,000 229,000Experience gains - Financial 64,000 (34,000)Effect of Limit in Paragraph 58 (b) (1,755,000) (318,000)

Actuarial (gains)/losses recognised in Other ComprehensiveIncome (1,399,000) (123,000)

Movement in Asset Recognised in the Statement of FinancialPosition

Employee Benefit Asset as at end ofyear (4,082,000) (3,784,000)Net amount recognised in the Statement of Income (162,000) (150,000)Net amount recognised in Other Comprehensive Income (1,399,000) (123,000)Contributions (28,000) (25,000)

Employee Benefit Asset as at end ofyear S (5.671.000) $ (4.082.000)

31.



31 DECEMBER 2015

11. Employee Benefit Assets (Cont'd):

31 December

2015 2014

Local Equities 35% 35%Local Bonds 33% 31%Foreign Investments 19% 14%Real Estate/Mortgages 2% 2%Short Term Securities 11% 16%

100% 100%

2015 2014

Actual Return on Plan Assets S 256.000 S 326,000

Principal actuarial assumptions at the Statement of Financial Position date (expressed as weightedaverages):

2015 2014

Discount Rate at December 31 5.00% 5.00%

Future Salary increases 3.00% 3.00%

The Company is expected to contribute $28,800 to its defined benefit plan in fiscal 2016.

Sensitivity ofPresent Value ofDefined Benefit Obligation

1% increase 1% decrease

Discount Rate (300,000) 378,000Salary Growth 66,000 (58,000)

32.



31 DECEMBER 2015

12. Investment properties:

Borde Street Dundonald SaganCost Apartments Street Drive Total

Balance as at 1 January 2015 $ 4,096,717 $ 4,384,860 $ 4,047,700 $12,529,277

Additions 73,070 - - 73,070

Balance as at 31 December 2015 4,169,787 4,384,860 4,047,700 12,602,347

Accumulated Depreciation

Balance as at 1 January 2015 723,112 90,981 5,281 819,374

Charge for the year 106,589 35,003 11,925 153,517

Balance as at 31 December 2015 829,701 125,984 17,206 972,891

Net Book Value

Balance as at 31 December 2015 $ 3,340.086 $ 4.258,876 $ 4.030.494 $11,629.456

Balance as at 31 December 2014 S 3.373,605 $ 4.293.879 $ 4.042.419 $11,709.903

33.



31 DECEMBER 2015

13. Fixed Assets:

FurnitureLand and Office Computer and

Cost Building Improvements Equipment Equipment Total

Balance as at 1 January 2015 (Restated) $ 3,073,418 $ 399,117 $ 570,329 $ 788,401 $ 4,831,265Additions - 34,595 13,370 67,422 115,387

Balance as at 31 December 2015 3,073,418 433,712 583,699 855,823 4,946,652


Balance as at 1 January 2015 (Restated) 165,190 350,782 534,322 674,084 1,724,378Charge for the year 25,468 21,104 24.287 66,017 136,876

Balance as at 31 December 2015 190,658 371,886 558,609 740,101 1,861,254

Net Book Value

Balance as at 31 December 2015 S 2.882.760 $ 61,826 $ 25,090 5 115.722 5 3,085.398

Balance as at 31 December 2014 (Restated) $ 2,908,228 $ 48,335 $ 36.007 $ 114,317 5 3.106.887

34.



31 DECEMBER 2015

13. Fixed Assets (Cont'd):

FurnitureLand and Office Computer and

Cost Building Improvements Equipment Equipment Total

Balance as at 1 January 2014 (Restated) $ 3,073,418 $ 384,466 $ 547,560 $ 735,325 $ 4,740,769

Additions - 14,651 22,769 53,076 90,496

Balance as at 31 December 2014 (Restated) 3,073,418 399,117 570,329 788,401 4,831,265


Balance as at 1 January 2014 (Restated) 139,722 336,104 501,713 609,524 1,587,063

Charge for the year 25,468 14,678 32,609 64,560 137,315

Balance as at 31 December 2014 (Restated) 165,190 350,782 534,322 674,084 1,724,378

Net Book Value

Balance as at 31 December 2014 (Restated) $ 2,908,228 $ 48.335 $ 36.007 $ 114,317 $ 3.106.887

Balance as at 31 December 2013 (Restated) $ 2,933,696 $ 48,362 $ 45.847 5 125,801 $ 3.153,706



31 DECEMBER 2015

14. Accounts Pavable and Accrued Charges:

31 December

2015 2014

Accounts payable and accrued charges $ 440,308 $ 277,195CUNA Insurance premium 71,561 75,411

CUNA Indemnity Insurance Plan 117,500 116,048Suspense account 124,280 91,696

Apartment rental deposit 39,190 39,400Member Special Deposit interest payable 260 189Members' Education savings interest payable 281 272Members' Christmas savings interest payable 171 (242)Statutory deductions payable 260 -

Accrued vacation leave 61,093 65,301

$ 854,904 $ 665,270

15. Christmas Savings Plan:

The Christmas Savings Plan is a facility established for members. This Plan runs in a twelve (12)month cycle (November to October) and paid an interest of 1% per annum.

16. Education Savings Plan:

The Education Savings Plan is a facility established for members. This Plan runs in a twelve (12)month cycle (June to May) and paid an interest of 1% per annum.

17. Members' Savings and Pooled Funds:

31 December

2015 2014

Members' pooled fund and accrued interest $ 3,692,984 $ 3,456,264

Members' savings deposits 4,869,509 3,912,714

Members' special deposit 482,698 416,510

$ 9,045.191 $ 7,785,488

36.



31 DECEMBER 2015

18. Employee Benefit Obligation:31 December

2015 2014

Amount Recognised in the Statement of Financial Position

Present value of the Defined Benefit Obligation $ 87,000 $ 53,000

Liability recognised on the Statement of Financial Position 87,000 53,000

Net Amount Recognised in the Statement of Income

Current service cost 4,000 4,000

Interest cost 3,000 3,000

Cost/(Income) recognised in the Statement of Income 7,000 7,000

Net Amount Recognised in Other Comprehensive Income

Experience gains - Demographic 30,000 (5,000)

Actuarial gains recognised in Other Comprehensive Income 30,000 (5,000)

Movement in Liability Recognised in the Statement of Financial

Position

Employee Benefit Obligation as at beginning ofyear 53,000 54,000

Net amount recognised in the Statement of Income 7,000 7,000

Net amount recognised in Other Comprehensive Income 30,000 (5,000)

Contributions (3,000) (3,000)

Employee Benefit Obligation as at end of year $ 87,000 S 53.000

37.



31 DECEMBER 2015

18. Employee Benefit Obligation (Cont'd):

Principal actuarial assumptions at the Statement of Financial Position date (expressed as weighted

averages):

2015 2014

Discount Rate at 31 December 5.00% 5.00%

Future Medical Claims Inflation 3.00% 3.00%

The Company is expected to contribute $3,000 to its post retirement medical plan in 2016.

Sensitivity of Present Value of Defined Benefit Obligation

1% increase 1% decrease

Medical Inflation Rate $ 12.000 $ (9.000)

19. Members' Shares Account:

In accordance with existing International Financial Reporting Standards and given the substance

and nature of members' shares, this balance is accounted for as a liability and not as capital of the

Credit Union. The Credit Union Bye Laws 12 (a) allows for the issue of an unlimited number ofshares of $5 each.

38.



31 DECEMBER 2015

20. Reserve Fund:

The Co-operatives Act 1971 Section 47 (2) requires that at least 10% of the net surplus of theSociety for the year be transferred to a Reserve Fund. In accordance with Bye-Laws 19 and 22 ofthe Credit Union, this reserve may be used only with the approval of the Commissioner for badloans and loans and other losses sustained through extraordinary circumstances over which theCredit Union has no control.

21. Other Funds:

At a Special Meeting of the Board of Directors held on 21 February 2011, a decision was taken toestablish the following funds from January 2011:

Building Fund for construction projects - $100,000

Charitable Fund for charitable donations - $ 50,000

Education Fund for educational programs - $100,000

At a Meeting of the Board of Directors held on 30 January 2014, a decision was taken to increase

the Education Fund to $200,000 as at 31 December 2013.

22. Investment Re-measurement Reserve:

In accordance with IAS #39, the Board of Directors has created an investment re-measurementreserve which includes unrealised gains/losses on available-for-sale investments.

23. Restatement:

An independent valuation of the Credit Union's property located at #4 Borde Street, Port of Spainwas done by Brent Augustus and Associates Limited as at 19 October 2010. The valuation reportsubmitted by the valuator indicated that the market value of the property was $7,500,000, whichwas $834,125 more than the net book value recorded by the Society. The Credit Union amendedthe value of the property in its financial statements for the year ended 31 December 2010 toreflect the valuation. The surplus was recorded in a Property Revaluation Reserve account.

The amendment to the value of the property was done in error as the Society had not adopted theFair Value Model under IAS 16 Property, Plant and Machinery for the measurement of fixedassets subsequent to initial recognition. Under the Credit Union's accounting policies the CostModel, where the asset is carried at cost less accumulated depreciation and impairment, is usedfor the measurement of fixed assets subsequent to initial recognition.

39.



31 DECEMBER 2015

23. Restatement (Cont'd):

The financial statements for the year ended 31 December 2014 has been restated to reverse thefair value adjustment made to property at #4 Borde Street. The restatement has been made inaccordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors and theNet Surplus for the year ended 31 December 2014 has increased by $18,127. The UndividedSurplus as at 1 January 2014 has also increased by $58,911 due to the required adjustment to thedepreciation expense on the related asset for the years 2010 to 2013. Amendments have beenmade to the relevant cost and accumulated depreciation accounts under Fixed Assets to reflect theadjustment in the value of the property in the Credit Union's financial statements.

Additionally, the Society has amended its classification of three (3) properties from Fixed Assetsto Investment Properties in accordance with IAS 40 Investment Properties. The cost and therelated accumulated depreciation have been reclassified in the financial statements for the year

ended 31 December 2014.

24. Related Party Transactions:

Parties are considered to be related if one party has the ability to control the other party orexercise significant influence over the other party in making financial decisions.

Key management personnel are those persons having the authority and responsibility forplanning, directing and controlling the activities of the Society.

A number of transactions are entered into with related parties in the normal course of business.These transactions were carried out on commercial terms at market rates.

Balances and transaction with related parties and key management personnel during the year wereas follows:

31 December

2015 2014

Assets, Liabilities and Members' Equity

Loans and other receivablesLoans to directors, committee members, key management

personnel $ 6,792,478 $ 6,465,708

Shares, deposits and other liabilitiesDirectors, committee members, key management personnel $ 3,831,622 $ 3,505,572

Interest and other incomeInterest on loans - directors, committee members, key management

personnel $ 1,743 $ 379,044

Key management compensationShort-term benefits $ 571,385 $ 448,584

40.



31 DECEMBER 2015

25. Fair Values:

Fair value is the amount for which an asset could be exchanged, or a liability settled betweenknowledgeable, willing parties in an arm's length transaction. The existence of published pricequotation in an active market is the best evidence of fair value. Where market prices are notavailable, fair values are estimated using various valuation techniques, including using recentarm's length market transactions between knowledgeable, willing parties, if available, current fairvalue of another financial instrument that is substantially the same and discounted cash flowanalysis.

The following methods have been used to estimate the fair values of various classes of financialassets and liabilities:

a) Current assets and liabilities -

The carrying amounts of current assets and liabilities are a reasonable approximation ofthe fair values because of their short-term nature.

b) Members' Loans -

Loans are net of specific provisions for losses. These assets result from transactionsconducted under typical market conditions and their values are not adversely affected byunusual terms. The inherent rates of interest in the portfolio approximate marketconditions and yield discounted cash flow values which are substantially in accordancewith financial statement amounts.

c) Investments -

The fair values of investments are determined on the basis of market prices available at31 December 2015.

d) Members' deposits -

Members' deposits bear interest at rates that are not significantly different from currentrates and are assumed to have discounted cash flow values which approximate carryingvalues.

26. Capital Risk Management:

The Society manages its capital to ensure that it will be able to continue as a going concern whilemaximising the return to members, whilst providing value to its members by offering loan andsavings facilities. The Society's overall strategy remains unchanged from previous years.

The capital structure of the Society consists of equity attributable to members, which comprisesreserves and undivided surplus.

41.



31 DECEMBER 2015

27. Investment Income:

31 December

2015 2014

Interest on fixed deposits and savings accounts $ 413,759 $ 519,724

Interest on current account 10,516 7,658

(Loss)/gain on disposal of investments (121,443) 205,709

CUNA commissions 70,225 65,768

Other investment income 1,099,412 1,174,240

$ 1,472.469 $ 1,973,099

28. Miscellaneous Income:

31 December

2015 2014

Loan processing fees $ 80,407 $ 98,465

Rental income - Car park 162,052 135,679

Rental income - Apartments 390,000 390,000

Entrance fees 780 1,200

Gain on foreign exchange 26,761

Other income 2,947 4,021

$ 662.947 $ 629.365

42.


SCHEDULES TO THE FINANCIAL STATEMENTS

31 DECEMBER 2015

29. Administrative Expenses:

31 December

2015 2014

Advertising and promotion $ 42,729 $ 21,139Annual general meeting 180,298 239,208Audit fees 75,900 75,900Bad and doubtful debts 252,086 100,004Bank charges 46,808 18,643Cable expenses (Flow) 3,838 3,721Computer expenses 37,021 24,865CUNA premiums 861,548 970,658Electricity 30,329 27,714Insurance 63,460 62,422Investment commissions and fees 12,510Legal dues 45,461 24,797Legal and professional fees 220,724 59,823Loss on foreign exchange - 47,547Maintenance I 14,072 86,157Member relation expense 4,764 3,951Office expenses 49,876 69,937Postage and courier 21,873 20,756Printing and stationery 63,432 88,307Rates and taxes 9,444 9,748Security 94,043 103,651Telephone and internet 87,530 86,291

$ 2,317,746 $ 2,145,239

30. Board and Committee Expenses:

31 December

2015 2014

Committee stipend allowance $ 111,595 $ 83,600Committee meeting expenses 42,105 46,266Honorarium 162,237 199,022Sport Committee expenses 84,473 60,559

$ 400.410 $ 389,447

43.



31 DECEMBER 2015

31. Fund Expenses:

31 December

2015 2014

Charity Fund expenses $ 4,912 $ 24,570

Education Fund expenses 159,148 143,269

Retirees Fund expenses 7,035 27.643

S 171.095 $ 195.482

32. Interest on Members' Savings and Pooled Funds:

31 December

2015 2014

Interest on members' savings and pooled funds $ 38,351 $ 39,284

Special deposit interest 4,408 4,854

Education savings plan interest 1,689 1,658

Christmas savings plan interest 6,303 5,660

$ 50.751 S 51.456

33. Personnel Costs:

31 December

2015 2014

Contract services $ 28,168 $ 31,690

Employee Assistance Progrram 3,200

Employee Benefit Asset/Obligation - IAS # 19 adjustment (186,000) (171,000)Group life insurance 11,902 14,222

Incentives and bonuses 145,571 93,000

Medical insurance plan 33,732 41,661National Insurance scheme 112,170 102,861

Pension fund 43,275 25,275

Salaries 1,411,825 1,333,774

Subsistence - 1,172

Training 53,840 43,997

Uniforms 3,985 15,460

$ 1.661,668 S 1.532.112

44.


SCHEDULES TO THE FINANCIAL STATEMENTS

31 DECEMBER 2015

34. Net Actuarial (Loss)/Gain on Employee Benefit Assets /Obligation:

31 December

2015 2014

Actuarial gain on Employee Benefit Asset $ 1,399,000 $ 123,000

Actuarial (loss)/gain on Employee Benefit Obligation (30,000) 5,000

$ 1.369.000 $ 128.000

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amgecu credit uniona * ** -- the key to your dreams amgecu credit union co-operative society...