ECCB 2015/2016 Annual Report

EASTERN CARIBBEAN CENTRAL BANK

NOTES TO FINANCIAL STATEMENTS

(expressed in Eastern Caribbean dollars)

March 31, 2016

2.

Summary of significant accounting policies… continued

Basis of preparation ... continued

a)

On the statement of financial position, domestic assets and liabilities are those which are located within the Eastern Caribbean Currency Union, regional assets and liabilities are those which are located within other Caribbean territories and foreign assets and liabilities are those which are located outside of the Caribbean.

The financial statements were authorised for issue by the Board of Directors on 10 June 2016.

New, revised and amended standards and interpretations effective during the current year

Certain new standards, amendments to and interpretation of existing standards have been issued that became effective during the current financial year. The Bank has assessed the relevance of all such new standards, amendments and interpretations, and has adopted those which are relevant to its operations. Annual Improvements to IFRSs 2010 - 2012 Cycle The IASB annual improvements project for the 2010-2012 cycle resulted in amendments to the following standards which may be relevant to the Bank’s operations. These amendments are effective for annual reporting periods beginning on or after 1 July 2014. — — IFRS 13, ‘Fair value measurements’ (Amendment). When IFRS 13 was published, certain paragraphs of IAS 39 and IFRS 9 were deleted as consequential amendments. This led to a concern that entities no longer had the ability to measure short-term receivables and payables at invoice amounts where the impact of not discounting is immaterial. The IASB has amended the basis for conclusions of IFRS 13 to clarify that it did not intend to remove the ability to measure short-term receivables and payables at invoice amounts in such cases. — — IAS 16, ‘Property, plant and equipment’ and IAS 38, ‘Intangible assets’ (Amendments). Both standards have been amended to clarify how the gross carrying amount and the accumulated depreciation/amortisation are treated where an entity uses the revaluation model. The carrying amount of the asset is to be restated to the revalued amount. The split between gross carrying amount and accumulated depreciation is treated in one of two ways: a. The gross carrying amount is restated in a manner consistent with the revaluation of the carrying amount, and the accumulated depreciation/amortisation is adjusted to equal the difference between the gross carrying amount and the carrying amount after taking into account accumulated impairment losses.

b. The accumulated depreciation/amortisation may be eliminated against the gross carrying amount of the asset.

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ECCB A nnual R eport 2015/2016