Page 45 - Ecobank Gambia Annual Report 2020
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Financial Statements & Annual Report
Notes to the Financial Statements
for the year ended 31 December 2020 (in Thousands of Gambian Dalasis)
11.1 Reporting Entity are recognised in the period in which the estimate is
Ecobank Gambia Limited ‘’the bank’’ was established revised if the revision affects only that period or in the
in October 2007 in The Gambia and is a subsidiary of period of the revision and future periods if the revision
Ecobank Transnational Incorporated (ETI). ETI operates the affects both current and future periods.
largest banking group in terms of geographic footprint in 11.3 Significant Accounting Policies
Middle Africa with presence in 36 countries. The bank’s The accounting policies set out below have been applied
registered office is 42 Kairaba Avenue, Serrekunda and consistently to all years presented in these financial
principally engages in banking activities. statements by the Bank.
11.2 Basis of Preparation 11.3.1 Revenue Recognition
11.2.1 Statement of compliance Interest income and expenses are recognized in the
The financial statements have been prepared in income statement using the effective interest rate and
accordance with International Financial Reporting Financial Assets and Liabilities held in line with IFRS 9
Standards (IFRS) and its interpretations as issued by the classifications.
International Accounting Standards Board (IASB). Unless Gains and losses arising from changes in the fair value of
otherwise stated at the appropriate note, the principal financial assets and liabilities held at fair value through
accounting policies set out below have been applied profit or loss, as well as any interest receivable or payable,
consistently to all periods in these financial statements is included in the income statement in the period in which
The financial statements were approved by the Board of they arise. Gains and losses arising from changes in the
Directors on 25th February, 2021. fair value of available-for-sale financial assets, other than
11.2.2 Basis of measurement foreign exchange gains and losses from monetary items,
The above-mentioned financial statements have been are recognised directly in equity, until the financial asset
prepared on the historical cost basis. Should we have the is derecognised or impaired at which time the cumulative
following assets and liabilities, basis of preparation shall gain or loss previously recognised in equity is recognised
be stated in line with the relevant accounting standard. in the income statement. Dividends are recognised in
The figures are rounded to the nearest thousand. the income statement when the Bank’s right to receive
11.2.3 Functional and presentation currency payment is established.
These financial statements are presented in The Gambia 11.3.2 Foreign Currency Transactions
dalasi (D), which is the Bank’s functional and presentation Transactions in foreign currencies are translated into
currency. functional currency using the exchange rates prevailing at
11.2.4 Use of estimates and judgement the dates of the transactions. Foreign exchange gains and
TThe preparation of financial statements in conformity losses resulting from the settlement of such transaction,
with IFRS requires management to make judgments, and from the translation at year end exchange rates of
estimates and assumptions that affect the application monetary assets and liabilities denominated in foreign
of policies and reported amounts of assets, liabilities, currencies, are recognized in the income statement.
income and expenses. The estimates and associated Non-monetary assets and liabilities are translated at
assumptions are based on historical experience and historical exchange rates if held at historical cost or year-
various other factors that are believed to be reasonable end exchange rates if held at fair value, and the resulting
under the circumstances, the results of which form the foreign exchange gains or losses are recognized in the
basis of making the judgement about carrying values income statement or shareholder’s equity as appropriate.
of assets and liabilities that are not readily apparent 11.3.3 Interest Income and Expense
from other sources. Actual results may differ from these IInterest income and expense is recognised in the income
estimates. statement using the effective interest method. The
The estimates and underlying assumptions are reviewed effective interest rate is the rate that discounts estimated
on an ongoing basis. Revisions to accounting estimates future receipts or payments through the expected life of
the financial instruments or, when appropriate, a shorter
period, to the net carrying amount of the financial asset or
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