ECCB 2017-2018 Annual Report and Statement of Accounts

136 ECCB ANNUAL REPORT 2017/2018 Eastern Caribbean Central Bank Notes to the Financial Statements March 31, 2018 (expressed in Eastern Caribbean dollars)

EASTERN CARIBBEAN CENTRAL BANK NOTES TO THE FINANCIAL STATEMENTS

(expressed in Eastern Caribbean dollars)

March 31, 2018

11. Accounts receivable and prepaid expenses

2018 $

2017 $

13,533,556 495,092 12,084,499 26,113,147

Accounts receivable Staff mortgage loans Prepaid expenses

10,625,337 652,129 18,794,813 30,072,279

Provision for impairment of receivables

(1,179,978)

(1,255,109)

24,933,169

28,817,170

Current

12,669,300

13,586,940

Non-current

12,263,869

15,230,230

24,933,169 28,817,170 Staff mortgage loans accrue interest at a rate of 4% per annum and are secured by real estate property with variable repayment terms. As the loans are granted at a preferential interest rate, this has given rise to a short-term employee benefit asset in the amount of $134,018 (2017: $184,788) at the statement of financial position date. This amount is included in prepaid expenses. The Bank’s receivables have been assessed for indicators of impairment. Accounts receivable include amounts that are past due for which the Bank has recognised a specific provision for impairment of receivables after the assessment. The provision for impairment of receivables is assessed by reference to collectability by conducting aging analysis and assessing the current financial condition of debtors. The provision for impairment of receivables has been reduced by $75,131 as a result of the recovery of impaired receivables during the financial year. Reconciliation of provision for impairment on accounts receivable The movement in provision for impairment on accounts receivable is as follows: 2018 $ 2017 $ Balance, beginning of year 1,255,109 1,315,109 Amounts recovered during the year (75,131) (60,000) Balance, end of year (1,179,978) 1,255,109