ECCB 2015/2016 Annual Report

Eastern Caribbean Central Bank Notes to Financial Statements March 31, 2016 (expressed in Eastern Caribbean dollars) Eastern Caribbean Central Bank Notes to Financial Statements March 31, 2016 (expressed in Eastern Caribbean dollars) 11. Accou ts receivable and prep id expenses (expressed in Eastern Caribbean dollars) 11. Accounts receivable and prepaid expenses Accounts receivable and prepaid expenses 11.

EASTERN CARIBBEAN CENTRAL BANK

NOTES TO FINANCIAL STATEMENTS

March 31, 2016

2016 $ 2016 $

2015 $ 2015 $

26,067,510 7,058,880 900,928 34,027,318 7,058,880 900 928 34 27 318 (1,315,109) (1,315,109) 32,712,209 26,067,510

Prepaid expenses Accounts receivable Staff mortgage loans Accounts receivable Staff mortgage loans Prepaid expenses

26,701,922 5,968,211 1,095,312 33,765,445 5,968,211 1 095 31 33 7 5 445 - 26,701,922

Provision for impairment of receivables

- 33,765,445

Provision for impairment of receivables

Current

32,712,209 1 557 177

33,765,445 11 618 713

Current Non-current

12,557,177 20,1 5,032 32,712,209 20,155,032

11,618,713 22,146, 32

Non-current 33,765,445 Staff mortgage loans accrue interest at a rate of 4% per annum and are secured by real estate property with variable repayment terms. As the loans are granted at a preferential interest rate, this has given rise to a sh term employee benefit a se in th amount of $261,227 (2015: $328,414) at the s atement of financial position dat . This amount is included in prepaid expenses. The B nk’ receiv bles ave bee a sesse for indicators of impairment. Accounts receivable include amounts that are past due for which the Bank has recognised a specific provision for impairment of receiv ble after the as essment. The provision for impai ment of receivables is assess d by ref rence to collec ability by conducting aging analysis a d assessing the current financial condition of debtors. An amount due from the Eastern Caribbean Enterprise F nd (ECEF) was found to be impaired following the receipt of a letter from the Board of Directors of the ECEF dated 7 April 2016 indicating that the operations of the company h d e n susp nded. Accordingly, a provisi n for impair ent of $1,315,109 (2015: Nil) has been recorded. Such impairment loss was included in administrative a d general expenses for the year ended 31 March 2016. Reconciliation o provision for impairment on accounts receivable The moveme t in r isi for impairment on accounts receivable is as follows: 2016 $ 2015 $ Balance, beginning of year - - Provision during the year 1,315,109 - Amounts written off during the year - - Balance, end of year 1,315,109 - Staff mortgage loans accrue interest at a rate of 4% per annum and are secured by real estate property with variable repayment terms. As the loans are granted at a preferential interest rate, this has given rise to a short term employee benefit asset in the amount of $261,227 (2015: $328,414) at the statement of financial position date. This amount is included in prepaid expenses. The Bank’s receivables have been assessed for indicators of impairment. Accounts receivable include amounts that are past due for which the Bank has recognised a specific provision for impairment of receivables after the assessment. The provision for impairment of receivables is assessed by reference to collectability by conducting aging analysis and assessing the current financial condition of debtors. An amount due from the Eastern Caribbean Enterprise Fund (ECEF) was found to be impaired following the receipt of a letter from the Board of Directors of the ECEF dated 7 April 2016 indicating that the operations of the company had been suspended. Accordingly, a provision for impairment of $1,315,109 (2015: Nil) has been recorded. Such impairment loss was included in administrative and general expenses for the year ended 31 March 2016. Reconciliation of provision for impairment on accounts receivable The movement in provision for impairment on accounts receivable is as follows: 22,146,732 32,712,209 33,765,445 Staff mortgage loans accrue interest at a rate of 4% per annum and are secured by real estate property with variable repayment terms. As the loans are granted at a preferential interest rate, this has given rise to a short term employee benefit asset in the amount of $261,227 (2015: $328,414) at the statement of financial position date. This amount is included in prepaid expenses. The Bank’s receivables have been assessed for indicators of impairment. Accounts receivable include amounts that are past due for which the Bank has recognised a specific provision for impairment of receivables after the assessment. The provision for impairment of receivables is assessed by reference to collectability by conducting aging analysis and assessing the current financial condition of debtors. An amount due from the Eastern Caribbean Enterprise Fund (ECEF) was found to be impaired following the receipt of a letter from the Board of Directors of the ECEF dated 7 April 2016 indicating that the operations of the company had been suspended. Accordingly, a provision for impairment of $1,315,109 (2015: Nil) has been recorded. Such impairment loss was included in administrative and general expenses for the year ended 31 March 2016. Reconciliation of provision for impairment on accounts receivable The movement in provision for impairment on accounts receivable is as follows: 2016 $ 2015 $ Balance, beginning of year - - Provision during the year 1,315,109 - Amounts written off during the year - - Balance, end of year 1,315,109 -

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ECCB A nnual R eport 2015/2016

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