Credit Union Annual Report 2022 - Flipbook - Page 86
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2022
22. Financial risk management (continued)
July 31, 2021
Under Six
Months
Six Months
to One Year
One Year to
Four Years
Five Years to
Ten Years
Cash inflows
Cash on hand and at bank $
– $
– $
– $
–
Fixed deposits
87,670,602
–
–
–
Securities at fair value
through P&L
–
–
–
–
Mortgages and personal
loans
27,405,760
21,652,216
144,154,744
122,314,522
$ 115,076,362 $ 21,652,216 $ 144,154,744 $ 122,314,522
Cash outflows
Accounts payable and
accrued expenses
Members’ shares
Members’ deposits:
- Regular savings
- Term deposits
$
Over
Ten Years
$
Non-Fixed
Maturity
Total
– $ 46,060,135 $ 46,060,135
–
–
87,670,602
–
2,781,773
2,781,773
164,551,354
–
480,078,596
$ 164,551,354 $ 48,841,908 $616,591,106
1,391,225 $
324,185,988
– $
– $
–
3,848,374
24,826,251
20,373,435
$
– $
30,668,652
– $ 1,391,225
–
403,902,700
20,936,002
1,487,716
$ 348,000,931 $
–
–
–
279,913
–
–
4,128,287 $ 24,826,251 $ 20,373,435
–
–
$ 30,668,652 $
–
20,936,002
–
1,767,629
– $ 427,997,556
$
– $ 20,554,540
Off-balance sheet cash
outflows
Loan commitments
$
Net exposure
$ (253,479,109) $ 17,523,929 $ 119,328,493 $ 101,941,087
20,554,540 $
– $
– $
–
– $
$ 133,882,702 $ 48,841,908 $ 168,039,010
23. Financial instruments and other – fair values
Fair values approximate amounts at which financial assets and liabilities could be exchanged between willing parties
and are determined using judgement and after consideration of uncertainties. Therefore, the aggregate fair value
amounts should not be interpreted as being realizable in an immediate settlement of the instruments.
The main assumptions and valuation techniques used at arriving at fair values are outlined below.
The carrying value of cash and cash equivalents approximates their carrying value a s they are placed for periods of
three months or less. Securities at fair value through profit and loss are held at market value on the Statement of
Financial Position. Mortgage and personal loans are at fixed rates of interest. The directors consider that the carrying
value of loans approximate fair value as the fixed interest rates on these loans approximate current market rates, and due
to the inherent characteristics of the loan book and the linkage of certain members shares which act as collateral agai nst
those members’ loans. However, the lack of any formal secondary market for these types of assets means that in
practice, it may not be feasible to liquidate or exchange such assets for consideration which approximates carrying
value.
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