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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)
27
2. Summary of significant accounting policies
…continued
m) Intangible assets
Intangible assets are substantially comprised of acquired computer software programmes. These
are capitalised on the basis of the cost incurred to acquire and bring to use the specific software.
The Bank chooses to use the cost model for the measurement after recognition. These costs are
amortised using the straight-line method on the basis of the expected useful life of three years.
Generally, the identified intangible assets of the Bank have a definite useful life. Costs associated
with maintaining computer software programmes are recognised as an expense as incurred.
At each reporting date, intangible assets are reviewed for indications of impairment or changes in
estimated future economic benefits. If such indications exist, the intangible assets are analysed to
assess whether their carrying amount is fully recoverable. An impairment loss is recognised if the
carrying amount exceeds the recoverable amount.
n) Impairment of non-financial assets
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by
which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the
higher of
an asset’s fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash
inflows (cash-generating units). The impairment test also can be performed on a single asset when
the fair value less costs to sell or the value in use can be determined reliably. Non-financial assets
that suffer impairment are reviewed for possible reversal of the impairment at each reporting date.
o) Provisions
Provisions are recognised when the Bank has a present legal or constructive obligation as a result
of past events, it is more likely than not that an outflow of resources will be required to settle the
obligation, and the amount has been reliably estimated. Provisions are not recognised for future
operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. A provision is
recognised even if the likelihood of an outflow with respect to any one item included in the same
class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle
the obligation using a rate that reflects current market assessments of the time value of money and
the risks specific to the obligation. The increase in the provision due to passage of time is
recognised as interest expense.
p) Other liabilities and payables
Other liabilities and payables are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. These are classified as current liabilities if
payments are due within one year or less. If not, they are presented as non-current liabilities.