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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 ank
Notes to the Financial Statements
March 31, 2017
(expressed in Eastern Caribbean dollars)
3. Financial risk management
…
continued
f) Fair value
…continued
Fair Value Hierarchy
IFRS 7 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation
techniques are observable or unobservable. Observable inputs reflect market data obtained from
independent sources; unobservable inputs reflect the Bank’s market assumptions. These two types
of inputs have created the following fair value hierarchy:
-
Level 1: Quoted prices in active markets for identical assets and liabilities.
-
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
-
Level 3: Inputs for the assets or liabilities that are not based on observable market data. This
level includes equity investments and debt instruments with significant unobservable
components.
The hierarchy requires the use of observable market data when available. The Bank considers
relevant and observable market prices in valuations where possible.
The following table presents the Bank’s financial assets and liabilities that are measured at fair
value at March 31, 2017:
Level 1
Level 3
$
$
Financial assets
Commercial paper
449,921,422
-
Certificate of Deposits
333,372,856
-
Financial assets held for trading
139,184
-
Available-for-sale
–
foreign investment securities
2,939,511,859
-
Available-for-sale
–
domestic investment securities
-
624,186
3,722,945,321
624,186
Level 1
Level 3
$
$
Financial liabilities
Financial liabilities held for trading
701,403
-