ECCB
ANNUAL REPORT 2014/2015
57
EASTERN CARIBBEAN CENTRAL BANK
2.
Summary of significant accounting policies
…continued
e) Foreign currency translation
…continued
Transactions and balances
...continued
All foreign exchange gains and losses recognised in the consolidated statement of income 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.
f) Financial assets and liabilities
Financial assets
In accordance with IAS 39, all financial assets and liabilities – which include derivative financial instruments
– are recognised in the consolidated statement of financial position and measured in accordance with their
assigned category.
The Bank allocates financial assets to the following three categories: financial assets at fair value through profit
or loss; loans and receivables; and available-for-sale financial assets. Management determines the classification
of its financial assets at initial recognition.
(i) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified
in this category if acquired or incurred principally for the purpose of selling in the short-term. Derivatives are
also categorised as held for trading unless they are designated as hedging instruments. Assets in this category
are classified as current assets as they are expected to be settled within 12 months. They are recognized in the
consolidated statement of financial position as “Financial assets held for trading”.
Financial instruments included in this category are recognized initially at fair value; transaction costs are taken
directly to the consolidated statement of income or loss. Gains and losses arising from changes in fair value are
included directly in the consolidated statement of income or loss. The instruments are derecognized when the
rights to receive cash flows have expired or the Bank has transferred substantially all the risks and rewards of
ownership and the transfer qualifies for derecognition.
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market, other than: (a) those that the Bank upon initial recognition designates as available-for-sale;
or (b) those for which the holder may not recover substantially all its initial investment, other than because of
credit deterioration. They are included in current assets, except for maturities greater than 12 months after the
end of the reporting period.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(expressed in Eastern Caribbean dollars)
March 31, 2015
