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 issued but not yet effective …continued  IFRS 16, ‘Leases’ (effective for annual periods beginning on or after 1 January 2019) was issued in January 2016 and replaces IAS 17, ‘Leases’. A company can choose to apply IFRS 16 before the effective date but only if it also applies IFRS 15, ‘Revenue fr om Contracts with Customers’. The standard introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17. Accordingly, a lessor continues to classify its leases as operating leases or finance leases, and to account for those two types of leases differently. IFRS 16 also requires enhanced disclosures to be provided by lessors and lessees that will improve information provided to users of the financial statements.  Annual improvements 2014 – 2015, (effective for annual periods beginning on or after 1 January 2018). These amendments impact three standards as follows: (i) IFRS 1, ‘First - time adoption of IFRS’ regarding the deletion of short-term exemptions for first-time adopters regarding IFRS 7, IAS 19 and IFRS 10, effective 1 January 2018. (ii) IFRS 12, ‘Disclosure of interest in other entities’ regarding clarification of the scope of the standard. These amendments should be applied retrospectively for annual periods beginning on or after 1 January 2017. (iii) IAS 28 ‘Investments in associates and joint ventures’ regarding measuring an associate or joint venture at fair value effective 1 January 2018.  IFRIC 22, ‘Foreign currency transactions and advance consideration’, (effective for annual periods beginning on or after 1 January 2018). This IFRIC address foreign currency transactions or parts of transactions where there is consideration that is denominated or priced in a foreign currency. The interpretation provides guidance for when a single payment / receipt is made as well as for situations where multiple payment / receipts are made.