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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)
2. Summary of significant accounting policies
…continued
a) Basis of preparation
...continued
New, revised and amended standards and interpretations issued but not yet effective
…continued
The Bank is currently assessing the impact that the future adoption of these new standards and
amendments to existing standards will have on its financial statements.
The Bank did not early-adopt any new or amended standards for the year ended March 31, 2017.
Neither the Bank’s member governments nor others have the power to amend the financial
statements after issue.
b) Associates
Associates are all entities over which the Bank has significant influence but not control, generally
accompanied by a shareholding of between 20% and 50% of the voting rights. Investments in
associates are accounted for by the equity method of accounting and are initially recognised at cost.
The Bank’s share of its associates’ post
-acquisition profits or losses is recognised in the statement
of profit or loss, and its share of post-acquisition movements in other comprehensive income or
loss is recognised in other comprehensive income or loss with a corresponding adjustment to the
carrying amount of the investment.
The cumulative post-acquisition movements are adjusted against the carrying amount of the
investment. When the Bank’s share of los
ses in an associate equals or exceeds its interest in the
associate, including any other unsecured receivables, the Bank does not recognise further losses,
unless it has incurred obligations or made payments on behalf of the associate.
The Bank determines at each reporting date whether there is any objective evidence that the
investment in the associate is impaired. If this is the case, the Bank calculates the amount of
impairment as the difference between the recoverable amount of the associate and its carrying
value
and recognises the amount adjacent to ‘share of profit (loss) of associates’ in the income
statement.
Unrealised gains on transactions between the Bank and its associates are eliminated to the extent of
the Bank’s interest in the associates.
Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred. For the preparation of the financial
statements, common accounting policies for similar transactions and other events in similar
circumstances are used.
Dilution gains and losses in associates are recognised in the statement of profit or loss.