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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
a) Basis of preparation
...continued
New, revised and amended standards and interpretations effective during the current year
Certain new standards, amendments to and interpretation of existing standards have been issued
that became effective during the current financial year. The Bank has assessed the relevance of all
such new standards, amendments and interpretations, and has adopted those which are relevant to
its operations.
Annual Improvements to IFRSs 2012 - 2014
The IASB annual improvements project for the 2012-2014 cycle resulted in amendments to the
following standards which may be relevant to the Bank’s operations. These amendments are
effective for annual reporting periods beginning on or after 1 January 2016.
Amendment to IAS 1, ‘Present
ation of Financial State
ments’
(Amendments). This amendment
forms part of the IASB’s Disclosure Initiative, which explores how financial statement
disclosures can be improved. It clarifies guidance in IAS 1 on materiality and aggregation, the
presentation of subtotals, the structure of financial statements and the disclosure of accounting
policies. The amendment also clarifies that the share of other comprehensive income (OCI) of
associates and joint ventures accounted for using the equity method must be presented in
aggregate as a single line item, classified between those items that will or will never be
subsequently reclassified to profit or loss.
IAS 16, ‘Property, Plant and Equipment’ and IAS 38, ‘Intangible Assets’ (Amendments)
-
Clarification of Acceptable Methods of Depreciation and Amortisation. In these amendments,
the IASB has clarified that the use of revenue-based methods to calculate the depreciation of
an asset is not appropriate because revenue generated by an activity that includes the use of an
asset generally reflects factors other than the consumption of the economic benefits embodied
in the asset. There is no impact from the adoption of the amendments on its financial
statements as it does not use revenue-based depreciation or amortisation methods.
IAS 19
, ‘Employee benefits’ (Amendment). The amendment clarifies that, when determining
the discount rate for post-employment benefit obligations, it is the currency that the liabilities
are denominated in that is important, and not the country where they arise. The assessment of
whether there is a deep market in high-quality corporate bonds is based on corporate bonds in
that currency, not corporate bonds in a particular country. Similarly, where there is no deep
market in high-quality corporate bonds in that currency, government bonds in the relevant
currency should be used. The amendment is retrospective but limited to the beginning of the
earliest period presented.