ECCB 2014-2015 Annual Report and Statement of Accounts

EASTERN CARIBBEAN CENTRAL BANK

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (expressed in Eastern Caribbean dollars) March 31, 2015

2.

Summary of significant accounting policies …continued

c) New and revised accounting standards and interpretations …continued

Standards, interpretations and amendments to existing standards effective during the current year ...continued

— — IAS 36 - ‘Impairment of Assets’ (Amendments) - Recoverable Amount Disclosures for Non-Financial Assets – (effective 1 January 2014). The amendments clarify the disclosure requirements in respect of fair value less costs of disposal. The amendments require disclosure of additional information about the fair value measurement of impaired assets when the recoverable amount is based on fair value less costs of disposal. The amendments also require disclosure of information about the discount rates that have been used when the recoverable amount is based on fair value less costs of disposal using a present value technique. The amendments harmonise disclosure requirements between value in use and fair value less costs of disposal. There was no material impact on the Bank from the adoption of these amendments during the year. — — IAS 39 ‘Financial Instruments: Recognition and Measurement’ (Amendments) - (effective 1 January 2014). Under IAS 39, an entity is required to discontinue hedge accounting for a derivative that has been designated as a hedging instrument where the derivative is novated to a central counterparty; this is because the original derivative no longer exists. The new derivative with the central counterparty is recognised at the time of the novation. As a result, the amendment to IAS 39 provides relief from discontinuing hedge accounting when novation of a hedging instrument to a central counterparty meets specified criteria. There was no material impact on the Bank from the adoption of these amendments during the year. — — IFRIC 21 - Levies (effective 1 January 2014). IFRIC 21 sets out the accounting for an obligation to pay a levy that is not income tax. IFRIC 21 is applicable to all levies other than outflows that are within the scope of other standards (e.g. IAS 12) and fines or other penalties for breaches of legislation. Levies are imposed by governments in accordance with legislation. The interpretation clarifies that an entity recognises a liability for a levy when the activity that triggers payment, as identified by the relevant legislation, occurs. It also clarifies that a levy liability is accrued progressively only if the activity that triggers payment occurs over a period of time, in accordance with the relevant legislation.

Standards, amendments and interpretations issued but not yet effective

Certain new standards, amendments and interpretations of existing standards have been issued and are effective for annual periods beginning on or after 1 January, 2015 or later periods and have not been early adopted by the Bank. The Bank is currently assessing the impact of adopting these standards, amendments and interpretations and has determined that the following may be relevant to its operations.

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ECCB ANNUAL REPORT 2014/2015