ECCB 2023-2024 Annual Report

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2024 (Expressed in Eastern Caribbean dollars)

2. Material accounting policies (continued) a) Basis of preparation (continued)

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 - Classification of Liabilities as Current or Non-current, will apply retrospectively for annual reporting periods beginning on or after 1 January 2024. The amendments promote consistency in application and clarify the requirements in determining if a liability is current or non-current. Under existing IAS 1 requirements, companies classify a liability as current when they do not have an unconditional right to defer settlement of the liability for at least twelve months after the end of the reporting period. As part of its amendments, the requirement for a right to be unconditional has been removed and instead, now requires that a right to defer settlement must have substance and exist at the end of the reporting period. Covenants with which the company must comply after the reporting date (i.e. future covenants) do not affect a liability’s classification at that date. However, when non-current liabilities are subject to future covenants, companies will now need to disclose information to help users understand the risk that those liabilities could become repayable within twelve months after the reporting date. The amendments are not expected to have a significant impact the Bank’s financial statements. Amendments to IAS 1FRS 16, Leases – Lease Liability in a Sale and Leaseback (effective for annual periods beginning on or after January 1, 2024). The amendments require a seller-lessee to account for variable lease payments that arise in a sale-and-leaseback transaction as follows:  On initial recognition, include variable lease payments when measuring a lease liability arising from a sale-and-leaseback transaction.  After initial recognition, apply the general requirements for subsequent accounting of the lease liability such that no gain or loss relating to the retained right of use is recognized. Seller-lessees are required to reassess and potentially restate sale-and-leaseback transactions entered into since the implementation of IFRS 16 in 2019. The Bank does not expect the amendments to have a significant impact on its financial statements.

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