EASTERN CARIBBEAN CENTRAL BANK
ECCB
ANNUAL REPORT 2014/2015
54
2.
Summary of significant accounting policies
…continued
c) New and revised accounting standards and interpretations
…continued
Standards, interpretations and amendments to existing standards effective during the current
year
...continued
IAS 36 - ‘Impairment of Assets’ (Amendments) - Recoverable Amount Disclosures for Non-Financial
Assets – (effective 1 January 2014). The amendments clarify the disclosure requirements in respect of
fair value less costs of disposal. The amendments require disclosure of additional information about the
fair value measurement of impaired assets when the recoverable amount is based on fair value less costs
of disposal. The amendments also require disclosure of information about the discount rates that have
been used when the recoverable amount is based on fair value less costs of disposal using a present value
technique. The amendments harmonise disclosure requirements between value in use and fair value less
costs of disposal. There was no material impact on the Bank from the adoption of these amendments during
the year.
IAS 39 ‘Financial Instruments: Recognition and Measurement’ (Amendments) - (effective 1 January
2014). Under IAS 39, an entity is required to discontinue hedge accounting for a derivative that has been
designated as a hedging instrument where the derivative is novated to a central counterparty; this is because
the original derivative no longer exists. The new derivative with the central counterparty is recognised at
the time of the novation. As a result, the amendment to IAS 39 provides relief from discontinuing hedge
accounting when novation of a hedging instrument to a central counterparty meets specified criteria. There
was no material impact on the Bank from the adoption of these amendments during the year.
IFRIC 21 - Levies (effective 1 January 2014). IFRIC 21 sets out the accounting for an obligation to pay a
levy that is not income tax. IFRIC 21 is applicable to all levies other than outflows that are within the scope
of other standards (e.g. IAS 12) and fines or other penalties for breaches of legislation. Levies are imposed
by governments in accordance with legislation. The interpretation clarifies that an entity recognises a
liability for a levy when the activity that triggers payment, as identified by the relevant legislation, occurs.
It also clarifies that a levy liability is accrued progressively only if the activity that triggers payment occurs
over a period of time, in accordance with the relevant legislation.
Standards, amendments and interpretations issued but not yet effective
Certain new standards, amendments and interpretations of existing standards have been issued and are effective
for annual periods beginning on or after 1 January, 2015 or later periods and have not been early adopted by the
Bank. The Bank is currently assessing the impact of adopting these standards, amendments and interpretations and
has determined that the following may be relevant to its operations.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(expressed in Eastern Caribbean dollars)
March 31, 2015
