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82
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
c)
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.
e)
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.