Page 89 - RB GRENADA ANNUAL REPORT 2025_ONLINE

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Notes to the Financial Statements

For the year ended September 30, 2025. Expressed in Thousands of Eastern Caribbean dollars ($’000), except where otherwise stated.

2 Material accounting policies (continued)
2.3 Standards in issue not yet effective (continued)
IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective January 1, 2027) (continued)

IFRS 19 disclosures exclude IFRS 8 Operating Segments, IFRS 17 Insurance Contracts and IAS 33 Earnings per Share.
Therefore, if an entity that applies IFRS 19 is required to apply IFRS 17 or elects to apply IFRS 8 and/or IAS 33, that entity
would be required to apply all the relevant disclosure requirements in those standards.

Expected ‘catch-up’ amendments
In developing the disclosure requirements in IFRS 19, the Board considered the disclosure requirements in other IFRS
Accounting Standards as at February 28, 2021. Disclosure requirements in IFRS Accounting Standards that have been
added or amended subsequent to this date have been included in IFRS 19 unchanged. Consequently, the Board indicated
it will publish an exposure draft setting out whether and how to reduce the disclosure requirements of any amendments
and additions made to other IFRS Accounting Standards post February 28, 2021, for the purpose of updating IFRS 19.

2.4 Improvements to IFRS Accounting Standards
The annual improvements process of the International Accounting Standards Board deals with non-urgent but necessary
clarifications and amendments to IFRS Accounting Standards. The following amendments are applicable to annual
periods beginning on or after January 1, 2026.

IFRS Subject of Amendment

IFRS 1 First-time Adoption of IRFS Accounting Standards – Hedge accounting by a first-time adopter
IFRS 7 Financial Instruments: Disclosures – Gain or loss on derecognition
IFRS 7 Financial Instruments: Disclosures – Disclosure of deferred difference between fair value and transaction
price
IFRS 7 Financial Instruments: Disclosures – Introduction and credit risk disclosures
IFRS 9 Financial Instruments – Lessee derecognition of lease liabilities
IFRS 9 Financial Instruments – Transaction price
IFRS 10 Consolidated financial statements – Determination of a ‘de facto agent’
IAS 7 Statement of cash flows – Cost method

2.5 Summary of material accounting policies
a Cash and cash equivalents
For the purpose of presentation in the Statement of cash flows, cash and cash equivalents consist of highly liquid
investments, including cash on hand, due from banks including related party banks, Treasury Bills and bankers’
acceptances with original maturities of three months or less. Bankers’ acceptances and due from banks with
maturities greater than three months are classified as investments.

b Statutory deposits with Central Bank
Pursuant to the Banking Act of Grenada 2015, Republic Bank (Grenada) Limited is required to maintain specified
assets as a reserve requirement for its deposit liabilities. The minimum requirement is 6 percent of the average
deposit liabilities over a four-week period.

Deposits with the Central Bank represent mandatory reserve deposits and are not available for use in day-to-day
operations. These amounted to $109.8 million (2024: $107.7 million).