Page 19 - Kildare CU 2022 AR

NOTES TO
THE FINANCIAL STATEMENTS
1. Legal and regulatory framework
Kildare Credit Union Limited is established under the Credit Union Act 1997 (as amended). The Credit Union is registered with the Registrar of Credit Unions and is regulated by the Central Bank of Ireland. The principal place of business is Rea House, Bride Street, Kildare.
2. Accounting policies
2.1. Basis of preparation
The financial statements have been prepared on the going-concern basis and in accordance with accounting standards generally accepted in the UK and Republic of Ireland (as issued by the Financial Reporting Council) and the Credit Union Act 1997 (as amended). The financial statements are prepared on the historical cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.
2.2. Statement of compliance
These financial statements have been prepared in accordance with FRS 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland)(“FRS 102”).
2.3. Going concern
The financial statements are prepared on the going concern basis. The directors of Kildare Credit Union Limited believe this is appropriate as the Credit Union:
- Is generating annual surpluses;
- Maintains an appropriate level of liquidity; and
- Has reserves that are currently above the minimum requirements of the Central
Bank of Ireland.
2.4. Currency
The financial statements are prepared in Euro, which is the functional currency of the Credit Union. Monetary amounts in these financial statements are rounded to the nearest Euro.
2.5. Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Credit Union and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received. The following criteria must also be met before revenue is recognised:
Interest on Members’ Loans
Interest on Members Loans is recognised on an accruals basis using the effective interest rate method in accordance with FRS 102 and Section 110(1)(D) of the Credit Union Acts 1997 (as amended). An approximation of the effective interest rate method is calculated by taking the interest accrual at the reporting period adjusted for any accrual relating to impaired loans.
Investment Income
The Credit Union currently only has investments that are valued at amortised cost, and uses the effective interest rate method to recognise investment income.
Other Income
Other income such as commissions receivable on billpay and foreign exchange services arises in connection to specific transactions. Income relating to individual transactions is recognised when the transaction is completed.
For the year ended 30 September 2022
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