ECCB 2017-2018 Annual Report and Statement of Accounts

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ECCB ANNUAL REPORT 2017/2018

(expressed in Eastern Caribbean dollars) Eastern Caribbean Central Bank Notes to the Financial Statements March 31, 2018 (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, 2018

Standards, interpretations and amendments to published standards 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.  Amendment to IAS 7, ‘Statement of cash flows on disclosure initiatives’, (effective for annual reporting periods beginning on or after January 1, 2017). These amendments introduce an additional disclosure that will enable users of financial statements to evaluate changes in liabilities arising from financing activities. The amendments are part of the IASB’s Disclosure initiative, which continues to explore how financial statement disclosure can be improved. This amendment did not have any significant impact on the Bank’s financial statements.  Amendment to IAS 12, ‘Income Taxes’ on recognition of deferred tax assets for unrealised losses, (effective for annual reporting periods beginning on or after January 1, 2017). These amendments on the recognition of deferred tax assets for unrealised losses clarify how to account for deferred tax assets related to debt instruments measured at fair value. The amendment to IAS 12 did not have any significant impact on the Bank’s financial statements. Standards, interpretations and amendments to published standards that are not yet effective and have not been early adopted At the date of authorisation of these financial statements, certain new standards, interpretations and amendments to existing standards have been issued which are mandatory for periods commencing after April 1, 2017. The Bank has not early adopted any of these in preparing these financial statements. The Bank has assessed the relevance of all such new standards, interpretations and amendments to existing standards and the potential impact of each on the Bank’s performance, financial position or disclosures in the period of initial adoption is outlined below: IFRS 9 Financial Instruments IFRS 9 is effective for annual periods beginning on or after January 1, 2018, with early adoption permitted; the Bank is therefore required to adopt IFRS 9 from April 1, 2018. The standard replaces IAS 39 Financial Instruments: Recognition and Measurement and sets out requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items. (i) IFRS 9 Implementation Strategy The Bank’s IFRS 9 implementation process is being governed by a Steering Committee whose members include representatives from different departments of the Bank. The Committee meets on a regular basis to challenge key assumptions, approve decisions and monitor the progress of the implementation work across the Bank. All decisions are ultimately approved by the Board of Directors.

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