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)

12. Accounts receivable, prepaid expenses and other assets

2023 $

2022 $

Accounts receivable

11,232,793

13,499,549

Staff loans

316,440

178,014

Prepaid expenses

7,885,070 19,763,742 39,198,045

8,217,174 18,189,651 40,084,388

Notes and coins inventory

(8,269,965)

Less: Allowance for impairment on receivables

(9,682,461)

30,928,080

30,401,927

16,203,943

Current

14,923,003

14,724,137

Non-current

15,478,924

30,928,080

30,401,927

Staff loans accrue interest at a rate of 4% per annum 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 $39,074 (2022: $55,237) at the statement of financial position date. This amount is included in prepaid expenses.

The cost of notes and coins inventory includes cost of the production of notes and coins by printers/minters, freight and other related charges.

The Bank’s receivables have been assessed for indicators of impairment as required by IFRS 9. The Bank applies the IFRS 9 simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance for all trade receivables. To measure ECL on a collective basis, receivables are grouped on similar credit risk and ageing. Receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the entity, and a failure to make contractual payments for a period of greater than 90 days past due.

As of 31 March 2023, receivables had lifetime expected credit losses of $9,682,461 (2022: $8,269,965).

Allowance for impairment on accounts receivable

The movement in allowance for impairment on accounts receivable is as follows: 2023 $

2022 $

Balance, beginning of year Allowance during the year

1,925,544 6,344,421

8,269,965 1,412,496

8,269,965

Balance at end of year

9,682,461

93