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) h) Property and equipment

Property and equipment are initially recognised at cost less accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Land and buildings are subsequently carried at fair value, based on periodic independent valuations by a professional qualified valuer. These revaluations are carried out with sufficient regularity to ensure that the carrying value of land and buildings does not differ materially from that which would be determined using fair value at the end of the reporting period. Changes in fair value are recognised in other comprehensive income and accumulated in the revaluation reserve except to the extent that any decrease in value in excess of the credit balance on the revaluation reserve, or reversal of such a transaction, is recognised in profit or loss. At the date of revaluation, the accumulated depreciation on the revalued property is eliminated against the gross carrying amount of the asset, and the net amount is restated to the revalued amount of the asset. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Bank and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the statement of profit or loss during the financial period in which they are incurred. Depreciation is calculated using the straight-line method at rates estimated to write down the cost or valuation of such assets to their residual values over their estimated useful lives as follows: Buildings 50 years; Furniture and Equipment 5 – 15 years; Motor vehicles 5 – 7 years; Land improvements 10 years; Building improvements 10 years; Computer systems 3 – 5 years. Land is not depreciated. Donated property is recorded at fair value at the time of receipt. Property and equipment are periodically reviewed for impairment or when indicators exist that there may be impairment. When the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount. No property and equipment were impaired as at 31 March 2024 (2023: nil). Gains and losses on the disposal of property and equipment are determined by comparing proceeds with carrying amount and are taken into account in determining operating profit. When revalued assets are sold, the amounts included in other reserves are transferred to retained earnings.

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