ECCB 2025-2026 Annual Report

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2026 (Expressed in Eastern Caribbean dollars)

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

New standards, interpretations and amendments to existing standards effective in the current financial year Certain new standards, interpretations and amendments to existing standards have been published that became effective during the current financial year. The Bank has assessed the relevance of all such new standards, interpretations and amendments and has concluded that the following are relevant to its operations: Amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates (effective for annual reporting periods beginning on or after 1 January 2025). These amendments add requirements to help entities to determine whether a currency is exchangeable into another currency, and the spot exchange rate to use when it is not. Therefore, the amendments will impact an entity when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. With these amendments, entities will be better able to assess exchangeability between two currencies and determine the spot rate when exchangeability is lacking. This amendment did not have a significant impact on the Bank. 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. Amendments to IFRS 9, ‘Financial Instruments’ and IFRS 7, ‘Financial Instruments: Disclosures’, - ‘Classification and Measurement of Financial Instruments’ , (effective for annual periods beginning on or after 1 January 2026). On 30 May 2024, the IASB issued targeted amendments to IFRS 9 and IFRS 7 to respond to recent questions arising in practice, and to include new requirements not only for financial institutions but also for corporate entities. These amendments: (a) clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic and cash transfer system; (b) clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion; (c) add new disclosures for certain instruments with contractual terms that can change cash flows (such as some financial instruments with features linked to the achievement of environment, social and governance targets): and (d) update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).

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