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)

Basis of preparation (continued)

a)

New standards, interpretations and amendments to existing standards that are not yet effective and have not been early adopted At the date of authorisation of these financial statements, certain new and amended standards and interpretations have been issued, which are not yet effective and have not been early-adopted by the Bank. The ECCB has assessed and determined that the following new and amended standards and interpretations are relevant to its operations. Amendments to IAS 1, Presentation of Financial Statements and IFRS Practice Statement 2, Making Materiality Judgements (effective for annual periods beginning on or after 1 January 2023). The amendments to IAS 1 require entities to disclose their material accounting policies rather than their significant accounting policies. The amendments aim to help entities provide useful accounting policy disclosures. The key amendments include:  requiring companies to disclose their material accounting policies instead of their significant accounting policies;  clarifying that accounting policies related to immaterial transactions, other events or conditions are themselves immaterial and do not need to be disclosed; and  clarifying that not all accounting policies that relate to material transactions, other events or conditions are themselves material. “Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those statements.” To support the amendments to IAS 1, the IASB also amended IFRS Practice Statement 2, Making Materiality Judgements”, to provide guidance on the concept of materiality and its application to accounting policy disclosures. Amendments to IAS 8 , Definition of Accounting Estimates Accounting Policies, Changes in Accounting Estimates and Errors (effective for annual periods beginning on or after January 1, 2023). The amendments clarify how companies distinguish changes in accounting policies from changes in accounting estimates, with a primary focus on the definition of and clarifications on accounting estimates. The distinction between the two is important because changes in accounting policies are applied retrospectively, whereas changes in accounting estimates are applied prospectively. The amendments also clarify that accounting estimates are monetary amounts in the financial statements subject to measurement uncertainty. The amendments also clarify the relationship between accounting policies and accounting estimates by specifying that a company develops an accounting estimate to achieve the objective set out by an accounting policy. The Bank is currently assessing the impact of these amendments on the Bank’s financial statements. The Bank is currently assessing the impact of thes e amendments on the Bank’s financial statements. The amendments are consistent with the following refined definition of material:

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