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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)
67
11. Accounts receivable and prepaid expenses
2017
$
2016
$
Prepaid expenses
18,794,813
26,067,510
Accounts receivable
10,625,337
7,058,880
Staff mortgage loans
652,129
900,928
30,072,279
34,027,318
Provision for impairment of receivables
(1,255,109)
(1,315,109)
28,817,170
32,712,209
Current
13,586,940
12,557,177
Non-current
15,230,230
20,155,032
28,817,170
32,712,209
Staff mortgage loans accrue interest at a rate of 4% per annum and are secured by real estate property
with variable repayment terms. As the loans are granted at a preferential interest rate, this has given rise
to a short term employee benefit asset in the amount of $184,788 (2016: $261,227) at the statement of
financial position date. This amount is included in prepaid expenses.
The Bank’s
receivables have been assessed for indicators of impairment. Accounts receivable include
amounts that are past due for which the Bank has recognised a specific provision for impairment of
receivables after the assessment. The provision for impairment of receivables is assessed by reference
to collectability by conducting aging analysis and assessing the current financial condition of debtors.
An amount due from the Eastern Caribbean Enterprise Fund (ECEF) was found to be impaired
following the receipt of a letter from the Board of Directors of the ECEF dated 7 April 2016 indicating
that the operations of the company had been suspended. Accordingly, a provision for impairment of
$1,315,109 had been recorded for the year ended 31 March 2016. During the current financial year, the
provision has been reduced by $60,000 as a result of the recovery of impaired receivables.
Reconciliation of provision for impairment on accounts receivable
The movement in provision for impairment on accounts receivable is as follows:
2017
$
2016
$
Balance, beginning of year
1,315,109
-
Provision during the year
-
1,315,109
Amounts recovered during the year
(60,000)
-
Balance, end of year
1,255,109
1,315,109