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ECCB ANNUAL REPORT 2016/2017
EASTERN CARIBBEAN CENTRAL BANK
NOTES TO THE FINANCIAL STATEMENTS
(expressed in Eastern Caribbean dollars)
March 31, 2017
Eastern Caribbean Central Bank
Notes to the Financial Statements
March 31, 2017
(expressed in Eastern Caribbean dollars)
2. Summary of significant accounting policies
…continued
l) Property, plant, equipment and depreciation
Property, plant and equipment are stated at historical cost or revalued amount less accumulated
depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
Land and buildings are shown at fair value based on external independent valuations less
subsequent depreciation for buildings. The revaluation was performed by independent professional
valuers. Revaluations are carried out with sufficient regularity to ensure that the carrying value of
land and buildings approximates fair value. Any accumulated depreciation at the date of
revaluation is eliminated against the gross carrying amount of the asset, and the net amount is
restated to the revalued amount of the asset.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will
flow to the Bank and the cost of the item can be measured reliably. The carrying amount of the
replaced part is derecognised. All other repairs and maintenance are charged to the income
statement during the financial period in which they are incurred.
Increases in the carrying amount arising on revaluation of land and buildings are credited to other
comprehensive income or loss
and shown as other reserves in shareholders’ equity. Decreases that
offset previous increases of the same asset are charged in other comprehensive income or loss and
debited against other reserves directly in equity; all other decreases are charged to the income
statement.
Depreciation is calculated using the straight-line method at rates estimated to write down the cost
or valuation of such assets to their residual values over their estimated useful lives as follows:
Buildings
2.63% to 14.29%
Furniture and office equipment
10% to 20%
Motor vehicles
20%
Land improvements
20%
Computer systems
33.33%
Land is not depreciated. Donated property is recorded at fair value at the time of receipt.
Property, plant and equipment are periodically reviewed for impairment or when indicators exist
that there may be impairment. When the carrying amount of an asset is greater than its estimated
recoverable amount, it is written down immediately to its recoverable amount. No property, plant
and equipment were impaired as at March 31, 2017 (2016: Nil).
Gains and losses on the disposal of property, plant and equipment are determined by comparing
proceeds with carrying amount and are taken into account in determining operating profit. When
revalued assets are sold, the amounts included in other reserves are transferred to retained earnings.