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) 15. Property and equipment (continued) Measurement of fair values Valuation techniques and significant unobservable inputs

The last independent valuation of the Bank’s land and buildings was performed as at 31 March 2021. The properties were stated at fair market value, as appraised by the independent valuer. The values for the properties were determined using the following methodologies which best reflect the nature of the property: the comparable sales approach and the cost approach. Land and buildings shown at revalued amounts are included in in Level 3 on the fair value hierarchy. The following table shows the valuation techniques used in measuring Level 3 fair values, as well as the significant unobservable inputs used.

Inter-relationship between key unobservable inputs and fair value measurement The estimated fair value would increase /(decrease) if:  Sales value of comparable properties were higher/(lower)  Comparability adjustment were higher/(lower) The estimated fair value would increase /(decrease) if:  the estimated costs of construction for buildings were higher/(lower) The estimated fair value would increase /(decrease) if:  Sales value of comparable properties were higher/(lower)  Comparability adjustment were higher/(lower)

Valuation techniques

Significant unobservable Inputs  Adjustment to price based on land sales in the area – EC$20 to EC$30 per square foot for commercial; EC$20 to EC$25 per square foot for residential  Condition of building  Construction cost per square foot - EC$1,800 to EC$2,200  Mark-up based on standard scale comparable properties – Sale price EC$1.5m to EC$1.8m for the area  Comparable adjustment  Details of sales of

Category

Sales Comparable Approach

Land

Commercial Property

Cost Approach

Sales Comparable Approach

Residential Property

100