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 (continued)

Amendment to IAS 7 and IFRS 7 - Supplier finance , (effective for annual periods beginning on or after 1 January 2024 (with transitional reliefs in the first year). The amendments require additional disclosures that complement the existing disclosures in these two Standards. The disclosures enhance the transparency of supplier finance arrangements and their effects on an entity’s liabilities, cash flows and exposure to liquidity risk. The disclosure requirements are the IASB’s response to investors’ concerns that some companies’ supplier finance arrangements are not sufficiently visible, hindering investors’ analysis. Amendments to IAS 21 - Lack of Exchangeability , (effective for annual periods beginning on or after 1 January 2025 (with transitional reliefs in the first year). The amendments include both updates to guidance to assist preparers in correctly accounting for foreign currency items and increases the level of disclosure required to help users understand the impact of a lack of exchangeability on the financial statements. The amendments:  Introduce a definition of whether a currency is exchangeable, and the process by which an entity should assess this exchangeability.  Provide guidance on how an entity should estimate a spot exchange rate in cases where a currency is not exchangeable.  Require additional disclosures in cases where an entity has estimated a spot exchange rate due to a lack of exchangeability, including the nature and financial impact of the lack of exchangeability, and details of the spot exchange rate used and the estimation process. The additional disclosure requirements provide useful information about the additional level of estimation uncertainty, and risks arising for the entity due to the lack of exchangeability. IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, effective for annual reporting periods beginning on or after January 1, 2024, (with earlier application permitted as long as IFRS S2 Climate-related Disclosures is also applied). IFRS S1 requires an entity to disclose information about its sustainability-related risks and opportunities that are useful to users of general-purpose financial reports in making decisions relating to providing resources to the entity. The standard also requires entities to disclose information about all sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s cash flows, its access to finance or cost of capital over the short, medium or long term (collectively referred to as ‘sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s prospects’).

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