ECIC IR 2023

ANNUAL Financial Statements for the year ended 31 March 2023

E

D

H

S

I

L I

N

B

2

0

A

0

T

S

1

E

E X P O R T C R E

L T D

O C

A S

C

R I

D I

F

T

A

I

N

H

S

T

U

U

R

O

A

S

N

F

C

O

E

N

C

O

O

I

R

T

P

A

O

R

Accounting Policies

Unlisted financial assets are shown at fair value, which is calculated by reference to expected future cash flows, discounted by applicable risk adjusted discount rates for similar instruments. If the fair value cannot be determined for unlisted investments, it is stated at cost less impairment. Debt securities are measured at fair value based on the market rate of an equivalent non‑convertible bond. Financial assets available for sale Financial assets available for sale are subsequently carried at fair value. Unrealised gains and losses arising from changes in fair value of financial assets during a reporting period are recognised in the other comprehensive income for that period. Unlisted financial assets are shown at fair value, which is calculated by reference to expected future cash flows, discounted by applicable risk adjusted discount rates for similar instruments. Cash and cash equivalents Cash and cash equivalents are measured at amortised cost using the effective interest method. Cash equivalents are short‑term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value. Investments (Short‑term deposit) normally only qualify as cash equivalent if they have a short maturity of three months or less from the date of acquisition. Trade and other payables Trade and other payables are recognised when the Corporation has a present obligation arising from past events, the settlement of which is probable to result in an outflow of economic benefits. Trade and other payables are stated at amortised cost using the effective interest method. Liability for interest make‑up Liability for interest make‑up (IMU) is measured at fair value which is determined on a discounted cash flow basis of all future IMU payments on existing agreements using a US Treasury Bills Yield Curve adjusted for credit default spread. The value is adjusted to avoid double counting for contracts for which IBNR claims reserves are already allowed for. Derivative instruments Derivative instruments are measured at fair value at each reporting date, any changes in fair value or gains/losses or losses on derecognition are recognised in the statement of comprehensive income in the period in which the change arises. 1.9.3 Gains and losses on subsequent measurement Gains and losses arising from a change in fair value of financial instruments are included in the statement of comprehensive income in the period in which the change arises as part of net investment income. However, for instruments classified as available for sale, the gains and losses are recognised in other comprehensive income. 1.9.4 Interest and dividends Dividends are recognised when the right to receive payment is established, meaning on the last day for registration in respect of listed securities and when declared in respect of unlisted securities. Dividend and interest accrued from financial assets designated at fair value through profit or loss are recognised in the statement of comprehensive income as part of investment income. Interest on financial assets is accounted for using the effective interest method. 1.9.5 Derecognition Financial assets are derecognised when the Corporation loses control over the contractual rights that comprise the asset and consequently transfers the substantive risks and benefits associated with the asset. This occurs when the rights are realised, expire or are surrendered. A financial liability is derecognised when it is settled or waived.

YOUR EXPORT RISK PARTNER

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