ECCB 2016/2017 Annual Report

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

Use of judgments and estimates

In preparing these financial statements, management has made judgements, estimates and

assumptions that affect the application of the Bank’s accounting policies and the reported amounts

of assets, liabilities, income and expenses. Actual results may differ from these estimates. The

areas involving a higher degree of judgement or complexity, or areas where assumptions and

estimates are significant to the financial statements are disclosed in note 3(j).

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are

recognized prospectively.

d) Foreign currency translation

Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary

economic environment in which the ECCB operate

s (the “functional currency”).

The financial

statements are presented in Eastern Caribbean dollars, which is the ECCB’s functional and

presentation currency.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates

prevailing at the dates of the transactions or valuation where items are re-measured. Foreign

exchange gains and losses resulting from the settlement of such transactions and from the

translation at year-end exchange rates of monetary assets and liabilities denominated in foreign

currencies are recognised in the statement of profit or loss. Changes in fair value of monetary

securities denominated in foreign currency classified as available-for-sale are analysed between

translation differences resulting from changes in the amortised cost of the security and other

changes in the carrying amount of the security.

Translation differences related to changes in the amortised cost are recognised in profit or loss, and

other changes in the carrying amount, except impairment, are recognised in other comprehensive

income or loss.

All foreign exchange gains and losses recognised in the statement of profit or loss are presented

net. Foreign exchange gains and losses on other comprehensive income or loss items are presented

in other comprehensive income or loss.

Comparative information

There have been no changes in presentation

of the Bank’s financial statements

in the current year.

The financial statements provide comparative information in respect of the previous period.