ECCB
ANNUAL REPORT 2014/2015
55
EASTERN CARIBBEAN CENTRAL BANK
2.
Summary of significant accounting policies
…continued
c) New and revised accounting standards and interpretations
…continued
Standards, amendments and interpretations issued but not yet effective
...continued
IFRS 9, ‘Financial Instruments’ (effective 1 January 2018). In July 2014, the IASB issued IFRS 9 which is
the comprehensive standard to replace IAS 39 ‘Financial Instruments: Recognition and Measurement’, and
includes requirements for classification and measurement of financial assets and liabilities, impairment of
financial assets and hedge accounting. Financial assets are required to be classified into three measurement
categories: those to be measured subsequently at amortised cost, those to be measured subsequently at fair
value through other comprehensive income (FVOCI) and those to be measured subsequently at fair value
through profit or loss (FVPL). Most of the requirements in IAS 39 for classification and measurement of
financial liabilities were carried forward unchanged to IFRS 9. The key change is that an entity will be
required to present the effects of changes in own credit risk of financial liabilities designated at fair value
through profit or loss in other comprehensive income. The Bank is still assessing the potential impact of
adoption and whether it should consider early adoption.
IAS 16, ‘Property, Plant and Equipment’ and IAS 38, ‘Intangible Assets’ (Amendments) - Clarification of
Acceptable Methods of Depreciation and Amortisation, (effective 1 January 2016). 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.
IAS 19 ‘Employee Benefits’ (Amendment) (effective 1 July 2014). This amendment clarifies the application
of IAS 19, ‘Employee benefits’ (2011) – referred to as ‘IAS 19R’, to plans that require employees or
third parties to contribute towards the cost of benefits. The amendment does not affect the accounting for
voluntary contributions. The amendment allows entities to recognise employee contributions as a reduction
in the service cost in the period in which the related employee service is rendered, instead of attributing
the contributions to the periods of service, if the amount of the employee contributions is independent of
the number of years of service. The amendment will allow (but not require) many entities to continue
accounting for employee contributions using their existing accounting policy, rather than spreading them
over the employees’ working lives.
IAS 27, ‘Separate Financial Statements’ (effective 1 January 2016). The amendments will allow entities
to use the equity method to account for investments in subsidiaries, joint ventures and associates in their
separate financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(expressed in Eastern Caribbean dollars)
March 31, 2015
