ECCB 2016/2017 Annual Report

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ECCB ANNUAL REPORT 2016/2017

(expressed in Eastern Caribbean dollars) Eastern Caribbean Central Bank Notes to the Financial Statements March 31, 2017 (expressed in Eastern Caribbean dollars) 2. Summary of significant accounting policies …continued a) Basis of preparation ...continued

EASTERN CARIBBEAN CENTRAL BANK NOTES TO THE FINANCIAL STATEMENTS

March 31, 2017

New, revised and amended standards and interpretations effective during the current year Certain new standards, amendments to and interpretation of existing standards have been issued that became effective during the current financial year. The Bank has assessed the relevance of all such new standards, amendments and interpretations, and has adopted those which are relevant to its operations. Annual Improvements to IFRSs 2012 - 2014 The IASB annual improvements project for the 2012-2014 cycle resulted in amendments to the following standards which may be relevant to the Bank’s operations. These amendments are effective for annual reporting periods beginning on or after 1 January 2016.  Amendment to IAS 1, ‘Present ation of Financial State ments’ (Amendments). This amendment forms part of the IASB’s Disclosure Initiative, which explores how financial statement disclosures can be improved. It clarifies guidance in IAS 1 on materiality and aggregation, the presentation of subtotals, the structure of financial statements and the disclosure of accounting policies. The amendment also clarifies that the share of other comprehensive income (OCI) of associates and joint ventures accounted for using the equity method must be presented in aggregate as a single line item, classified between those items that will or will never be subsequently reclassified to profit or loss.  IAS 16, ‘Property, Plant and Equipment’ and IAS 38, ‘Intangible Assets’ (Amendments) - Clarification of Acceptable Methods of Depreciation and Amortisation. In these amendments, the IASB has clarified that the use of revenue-based methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset. There is no impact from the adoption of the amendments on its financial statements as it does not use revenue-based depreciation or amortisation methods.  IAS 19 , ‘Employee benefits’ (Amendment). The amendment clarifies that, when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important, and not the country where they arise. The assessment of whether there is a deep market in high-quality corporate bonds is based on corporate bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep market in high-quality corporate bonds in that currency, government bonds in the relevant currency should be used. The amendment is retrospective but limited to the beginning of the earliest period presented.