ECCB 2022-2023 Annual Report and Financial Statements

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2023 (Expressed in Eastern Caribbean dollars)

2. Summary of significant accounting policies (continued)

g) Financial assets and financial liabilities (continued)

(ix) Impairment of financial assets (continued)

Measurement of expected credit losses (ECL) (continued)

Write-offs

Financial assets and the related impairment allowances, are written off, either partially or in full, when there is no realistic prospect of recovery.

Presentation of allowance for ECL

Loss allowances for ECL are presented in the statement of financial position as follows:

 Financial assets measured at amortised cost: as a deduction from the gross carrying amount of the assets;

 Debt instruments measured at fair value through OCI - the ECLs are not recognised in the statement of financial position because the carrying amounts of these assets remain their fair values. However, the loss allowance is disclosed and is recognised in the fair value reserve in equity with a corresponding charge to the statement of profit or loss. The accumulated loss recognised in OCI is recycled to profit or loss upon derecognition of the financial assets.

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