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)

Currency in circulation (continued)

p)

DCash in circulation

The Digital Eastern Caribbean Dollar (DCash) is a securely minted digital version of the Eastern Caribbean dollar issued by the ECCB. DCash is compliant with the legal parameters for legal tender and only the ECCB (as the monetary authority) can issue the digital currency.

The values of notes and coins in circulation and DCash in circulation are disclosed in Note 17.

q)

Related parties

A related party is a person or entity that is related to the entity that is preparing its financial statements (referred to in IAS 24 Related Party Disclos ures as the “reporting entity , in this case, the Bank ”).

(a) A person or a close member of that person’s family is related to the Bank if that person:

(i) has control or joint control over the Bank; (ii) has significant influence over the Bank; or (iii) is a member of the key management personnel of the Bank or of a parent of the Bank.

(b) An entity is related to the Bank if any of the following conditions applies:

(i) The entity and the Bank are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others). (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member). (iii) Both entities are joint ventures of the same third party. (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity. (v) The entity is a post-employment benefit plan for the benefit of employees of either the Bank or an entity related to the Bank. (vi) The entity is controlled, or jointly controlled by a person identified in (a). (vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). (viii) The entity or its parent is provided with key management personnel services by the management entity. A related party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price is charged.

r)

Taxation

In accordance with Article 50 (8) (a) of the Eastern Caribbean Central Bank Agreement Act 1983, the Bank’s income is exempt from any form of taxation.

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