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

a)

Basis of preparation ... continued

New, revisedandamendedstandardsandinterpretations issuedbutnotyet effective … continued

The Bank is currently assessing the impact that the future adoption of these new standards and amendments to existing standards will have on its financial statements.

The Bank did not early-adopt any new or amended standards for the year ended March 31, 2016.

Neither the Bank’s member governments nor others have the power to amend the financial statements after issue.

b)

Associates Associates are all entities over which the Bank has significant influence but not control, generally accompanied by a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for by the equity method of accounting and are initially recognised at cost. The Bank’s share of its associates’ post-acquisition profits or losses is recognised in the statement of income or loss, and its share of post-acquisition movements in other comprehensive income or loss is recognised in other comprehensive income or loss with a corresponding adjustment to the carrying amount of the investment. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Bank’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Bank does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. The Bank determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Bank calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount adjacent to ‘share of profit (loss) of associates’ in the income statement. Unrealised gains on transactions between the Bank and its associates are eliminated to the extent of the Bank’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. For the preparation of the financial statements, common accounting policies for similar transactions and other events in similar circumstances are used.

Dilution gains and losses in associates are recognised in the statement of income or loss.

50

ECCB A nnual R eport 2015/2016