130 / 174
(expressed in Eastern Caribbean dollars)
March 31, 2017
116
ECCB ANNUAL REPORT 2016/2017
EASTERN CARIBBEAN CENTRAL BANK
NOTES TO THE FINANCIAL STATEMENTS
Eastern Caribbean Central Bank
Notes to the Financial Statements
March 31, 2017
(expressed in Eastern Caribbean dollars)
52
3. Financial risk management
…
continued
f) Fair value
…
continued
(i) Financial instruments not measured at fair value…
continued
Carrying value
Fair value
Off-balance sheet financial instruments
2017
2016
2017
2016
$
$
$
$
Eastern Caribbean Securities Exchange Limited undertaking
and guarantee
–
–
4,874,845
4,874,845
Determination of Fair Value
The following methods and assumptions have been used to estimate the fair value of each class of financial instrument for which it is practical to
estimate a value:
Short-term financial assets and liabilities: The carrying value of these financial assets and liabilities is a reasonable estimate of their fair value
because of the short maturity of these instruments. Short-term financial assets are comprised of regional and foreign currencies, balances with
other central banks, balances with foreign banks, money market instruments and money at call, treasury bills, balances with local banks, due
from participating governments, interest receivable, and accounts receivable. Short-term financial liabilities are comprised of demand and
deposit liabilities
–
domestic and foreign, interest payable and certain other liabilities.
Long-term loans and receivables: The estimated fair value of long-term loans and receivables is based on discounted cash flows using
prevailing market interest rates for debts with similar credit risk and remaining terms to maturity. Some of the financial assets included in
participating government
s’
securities and accounts receivable are long term.