NOTES TO THE FINANCIAL STATEMENTS
Altura Credit Union Limited NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2024 1. LEGAL AND REGULATORY FRAMEWORK
Altura Credit Union Limited is established under the Credit Union Act 1997, as amended. Altura Credit Union Limited is registered with the Registry of Credit Unions and is regulated by the Central Bank of Ireland. The registered office and principal place of business of the Credit Union is McDermott Street, Gorey, Co Wexford. 2. ACCOUNTING POLICIES Statement of compliance and basis of preparation 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”). The financial statements have been prepared on the historical cost basis as modified by the recognition of certain non-financial assets measured at fair value. 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. Going concern The financial statements are prepared on the going concern basis. The directors of Altura Credit Union Limited believe this is appropriate as the Credit Union: - Is generating annual operational surpluses; - Maintains an appropriate level of liquidity; and - Has reserves that are currently above the minimum requirements of the Central Bank. Income (i) Interest on members' loans Interest on loans to members is recognised using the effective interest method, and is calculated and The Credit Union primarily has investments that are valued at amortised cost, and uses the effective interest method to recognise investment income. Investment income from bank term deposits is recognised when received or receivable. The Credit Union has an investment in a Collective Investment Scheme which is initially measured at cost and is subsequently measured at market value. Net gains and losses, including any interest or dividend income and expense and foreign exchange gains and losses, are recognised in the Income and Expenditure account in ‘other investment income and gains/losses’ under ‘other interest income and similar income’. (iii) Other income Other income which includes commissions receivable on insurance products and foreign exchange services arises in connection to specific transactions. Income relating to individual transactions is recognised when the transaction is completed. Interest on Members’ Deposits, Dividends to Members & Loan Interest Rebates Interest on members’ deposits Interest on members’ deposits is recognised using the effective interest method. Dividend on shares and loan interest rebates accrued on a daily basis. (ii) Investment income Dividends are made from current year’s surplus and the dividend reserves set aside for that purpose. The Board’s proposed distribution to members each year is based on the dividend and loan interest rebate policy of the Credit Union. The rate of dividend and loan interest rebate recommended by the Board will reflect: - the risk profile of the Credit Union, particularly in its loan and investment portfolios; - the Board’s desire to maintain a stable rather than a volatile rate of dividend each year; and - members’ legitimate dividend and loan interest rebate expectations; all dominated by prudence and the need to sustain the long-term welfare of the Credit Union. For this reason, the Board will seek to build up its reserves to absorb unexpected shocks and still remain above minimum regulatory requirements. The Credit Union accounts for dividends and rebates of loan interest when members ratify such payments at the Annual General Meeting.
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