CAPITA FINANCIAL SERVICES INC. (ST. LUCIA BRANCH) Notes to the Financial Statements March 31, 2024 (expressed in Eastern Caribbean dollars) 53 21 Fair Value of Financial Instruments Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and is best evidenced by a quoted market price, if one exists. Financial assets and liabilities are carried at amounts, which approximate to their fair value at the statement of financial position date. Fair value estimates are made at a specific point in time, based on market conditions and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. For financial assets and financial liabilities that are liquid or have short term maturity, it is assumed that the carrying amounts approximate their fair value. These include Cash resources, due from related company, other assets due to head office and other liabilities. The fair value of debt securities is based on quoted prices where available, or otherwise based on an appropriate yield curve with the same remaining term to maturity. The fair value of loans and advances largely approximates carrying value as the Branch's portfolio comprises mainly variable rate loans. The fair value of deposits takes account of certain fixed rate deposits which have been discounted at current interest rates. The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of financial position are shown in the table below: 2024 2023 Carrying amount $ Fair value $ Carrying amount $ Fair value $ Assets: Cash resources 5,511,967 5,511,967 5,197,502 5,197,502 Loans and advances 29,764,589 30,373,666 29,716,002 29,823,621 Due from related company 1,325,266 1,325,266 675,567 675,567 Other assets 268,658 268,658 310,703 310,703 36,870,480 37,479,557 35,899,774 36,007,393 Liabilities: Customer deposits 34,128,072 34,716,769 32,438,101 31,890,039 Other liabilities 260,796 260,796 223,444 223,444 Loans payable 1,587,530 1,587,530 1,653,084 1,695,929 35,976,398 36,565,095 34,314,629 33,809,412
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