Decision (EU) 2017/2239 of the European Central Bank

of 16 November 2017

amending Decision (EU) 2016/2247 on the annual accounts of the European Central Bank (ECB/2017/36)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 26.2 thereof,

Whereas:

(1) Decision (EU) 2016/2247 of the European Central Bank (ECB/2016/35)(1) lays down the rules for drawing up the annual accounts of the European Central Bank (ECB).

(2) The financial reporting framework of the ECB needs to be clarified to ensure that its financial statements are presented in accordance with generally accepted auditing standards.

(3) Therefore, Decision (EU) 2016/2247 (ECB/2016/35) should be amended accordingly,

HAS ADOPTED THIS DECISION:

Article 1Amendments

Decision (EU) 2016/2247 (ECB/2016/35) is amended as follows:

1.

in Article 25, the following paragraph 3 is added:

3.In extremely rare circumstances where the Governing Council concludes that compliance with a requirement of this Decision would not result in a fair presentation of the annual accounts, the ECB shall depart from that requirement and shall provide the reasons in the notes to the annual accounts.;

2.

Annex I is replaced by the Annex to this Decision.

Article 2Entry into force

This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Done at Frankfurt am Main, 16 November 2017.

For the Governing Council of the ECB

The President of the ECB

Mario Draghi

ANNEX

Annex I to Decision (EU) 2016/2247 (ECB/2016/35) is replaced by the following:

ANNEX I COMPOSITION AND VALUATION RULES FOR THE BALANCE SHEET

ASSETS

a

Guideline (EU) 2015/510 of the European Central Bank of 19 December 2014 on the implementation of the Eurosystem monetary policy framework (ECB/2014/60) (OJ L 91, 2.4.2015, p. 3).

b

Decision ECB/2010/29 of the European Central Bank of 13 December 2010 on the issue of euro banknotes (OJ L 35, 9.2.2011, p. 26).

Balance sheet itemCategorisation of contents of balance sheet itemsValuation principle
1 Gold and gold receivablesPhysical gold, i.e. bars, coins, plates, nuggets, in storage or “under way”. Non-physical gold, such as balances in gold sight accounts (unallocated accounts), term deposits and claims to receive gold arising from the following transactions: (a) upgrading or downgrading transactions; and (b) gold location or purity swaps where there is a difference of more than one business day between release and receiptMarket value
2 Claims on non-euro-area residents denominated in foreign currencyClaims on counterparties resident outside the euro area including international and supranational institutions and central banks outside the euro area denominated in foreign currency
2.1 Receivables from the International Monetary Fund (IMF)
(a) Drawing rights within the reserve tranche (net)

National quota minus balances in euro at the disposal of the IMF. The No 2 account of the IMF (euro account for administrative expenses) may be included in this item or under the item “Liabilities to non-euro-area residents denominated in euro”

(a) Drawing rights within the reserve tranche (net)

Nominal value, translated at the foreign exchange market rate

(b) Special drawing rights (SDRs)

Holdings of SDRs (gross)

(b) SDRs

Nominal value, translated at the foreign exchange market rate

(c) Other claims

General arrangements to borrow, loans under special borrowing arrangements, deposits made to trusts under the management of the IMF

(c) Other claims

Nominal value, translated at the foreign exchange market rate

2.2 Balances with banks and security investments, external loans and other external assets
(a) Balances with banks outside the euro area other than those under asset item 11.3 “Other financial assets”

Current accounts, fixed-term deposits, day-to-day money, reverse repo transactions

(a) Balances with banks outside the euro area

Nominal value, translated at the foreign exchange market rate

(b) Security investments outside the euro area other than those under asset item 11.3 “Other financial assets”

Notes and bonds, bills, zero bonds, money market paper, equity instruments held as part of the foreign reserves, all issued by non-euro-area residents

(b)
(i)

Marketable debt securities other than held-to-maturity

Market price and foreign exchange market rate

Any premiums or discounts are amortised

(ii)

Marketable debt securities classified as held-to-maturity

Cost subject to impairment and foreign exchange market rate

Any premiums or discounts are amortised

(iii)

Non-marketable debt securities

Cost subject to impairment and foreign exchange market rate

Any premiums or discounts are amortised

(iv)

Marketable equity instruments

Market price and foreign exchange market rate

(c) External loans (deposits) to non-euro-area residents other than those under asset item 11.3 “Other financial assets”
(c) External loans

Deposits at nominal value, translated at the foreign exchange market rate

(d) Other external assets

Non-euro-area banknotes and coins

(d) Other external assets

Nominal value, translated at the foreign exchange market rate

3 Claims on euro area residents denominated in foreign currency
(a) Security investments inside the euro area other than those under asset item 11.3 “Other financial assets”

Notes and bonds, bills, zero bonds, money market paper, equity instruments held as part of the foreign reserves, all issued by euro area residents

(a)
(i)

Marketable debt securities other than held-to-maturity

Market price and foreign exchange market rate

Any premiums or discounts are amortised

(ii)

Marketable debt securities classified as held-to-maturity

Cost subject to impairment and foreign exchange market rate

Any premiums or discounts are amortised

(iii)

Non-marketable debt securities

Cost subject to impairment and foreign exchange market rate

Any premiums or discounts are amortised

(iv)

Marketable equity instruments

Market price and foreign exchange market rate

(b) Other claims on euro area residents other than those under asset item 11.3 “Other financial assets”

Loans, deposits, reverse repo transactions, sundry lending

(b) Other claims

Deposits and other lending at nominal value, translated at the foreign exchange market rate

4 Claims on non-euro-area residents denominated in euro
4.1 Balances with banks, security investments and loans
(a) Balances with banks outside the euro area other than those under asset item 11.3 “Other financial assets”

Current accounts, fixed-term deposits, day-to-day money, reverse repo transactions in connection with the management of securities denominated in euro

(a) Balances with banks outside the euro area

Nominal value

(b) Security investments outside the euro area other than those under asset item 11.3 “Other financial assets”

Equity instruments, notes and bonds, bills, zero bonds, money market paper, all issued by non-euro-area residents

(b)
(i)

Marketable debt securities other than held-to-maturity

Market price

Any premiums or discounts are amortised

(ii)

Marketable debt securities classified as held-to-maturity

Cost subject to impairment

Any premiums or discounts are amortised

(iii)

Non-marketable debt securities

Cost subject to impairment

Any premiums or discounts are amortised

(iv)

Marketable equity instruments

Market price

(c) Loans to non-euro-area residents other than those under asset item 11.3 “Other financial assets”
(c) Loans outside the euro area

Deposits at nominal value

(d) Securities issued by entities outside the euro area other than those under asset item 11.3 “Other financial assets” and asset item 7.1 “Securities held for monetary policy purposes”

Securities issued by supranational or international organisations, e.g. the European Investment Bank, irrespective of their geographical location, and not purchased for monetary policy purposes

(d)
(i)

Marketable debt securities other than held-to-maturity

Market price

Any premiums or discounts are amortised

(ii)

Marketable debt securities classified as held-to-maturity

Cost subject to impairment

Any premiums or discounts are amortised

(iii)

Non-marketable debt securities

Cost subject to impairment

Any premiums or discounts are amortised

4.2 Claims arising from the credit facility under the Exchange Rate Mechanism (ERM) IILending in accordance with the ERM II conditionsNominal value
5 Lending to euro area credit institutions related to monetary policy operations denominated in euroItems 5.1 to 5.5: transactions in accordance with the respective monetary policy instruments described in Guideline (EU) 2015/510 of the European Central Bank (ECB/2014/60)a
5.1 Main refinancing operationsRegular liquidity-providing reverse transactions with a weekly frequency and normally a maturity of one weekNominal value or repo cost
5.2 Longer-term refinancing operationsRegular liquidity-providing reverse transactions normally with a monthly frequency, with a maturity longer than that of the main refinancing operationsNominal value or repo cost
5.3 Fine-tuning reverse operationsReverse transactions, executed as ad hoc transactions for fine-tuning purposesNominal value or repo cost
5.4 Structural reverse operationsReverse transactions adjusting the structural position of the Eurosystem vis-à-vis the financial sectorNominal value or repo cost
5.5 Marginal lending facilityOvernight liquidity facility at a pre-specified interest rate against eligible assets (standing facility)Nominal value or repo cost
5.6 Credits related to margin callsAdditional credit to credit institutions, arising from value increases of underlying assets regarding other credit to these credit institutionsNominal value or cost
6 Other claims on euro area credit institutions denominated in euroCurrent accounts, fixed-term deposits, day-to-day money, reverse repo transactions in connection with the management of security portfolios under the asset item 7 “Securities of euro area residents denominated in euro”, including transactions resulting from the transformation of former foreign currency reserves of the euro area, and other claims. Correspondent accounts with non-domestic euro area credit institutions. Other claims and operations unrelated to monetary policy operations of the EurosystemNominal value or cost
7 Securities of euro area residents denominated in euro
7.1 Securities held for monetary policy purposesSecurities held for monetary policy purposes (including securities purchased for monetary policy purposes issued by supranational or international organisations, or multilateral development banks, irrespective of their geographical location). European Central Bank (ECB) debt certificates purchased for fine-tuning purposes
(a)

Marketable debt securities

Accounted for depending on monetary policy considerations:

(i)

Market price

Any premiums or discounts are amortised

(ii)

Cost subject to impairment (cost when the impairment is covered by a provision under liability item 13(b) “Provisions”)

Any premiums or discounts are amortised

(b)

Non-marketable debt securities

Cost subject to impairment

Any premiums or discounts are amortised

7.2 Other securitiesSecurities other than those under asset item 7.1 “Securities held for monetary policy purposes” and under asset item 11.3 “Other financial assets”: notes and bonds, bills, zero bonds, money market paper held outright, including government securities stemming from before Economic and Monetary Union (EMU), denominated in euro. Equity instruments
(a)

Marketable debt securities other than held-to-maturity

Market price

Any premiums or discounts are amortised

(b)

Marketable debt securities classified as held-to-maturity

Cost subject to impairment

Any premiums or discounts are amortised

(c)

Non-marketable debt securities

Cost subject to impairment

Any premiums or discounts are amortised

(d)

Marketable equity instruments

Market price

8 General government debt denominated in euroClaims on government stemming from before EMU (non-marketable securities, loans)Deposits/loans at nominal value, non-marketable securities at cost
9 Intra-Eurosystem claims
9.1 Claims related to the issuance of ECB debt certificatesIntra-Eurosystem claims vis-à-vis national central banks (NCBs), arising from the issuance of ECB debt certificatesCost
9.2 Claims related to the allocation of euro banknotes within the EurosystemClaims related to the ECB's banknote issue, in accordance with Decision ECB/2010/29bNominal value
9.3 Other claims within the Eurosystem (net)Net position of the following sub-items:
(a)net claims arising from balances of TARGET2 accounts and correspondent accounts of NCBs, i.e. the net figure of claims and liabilities. See also liability item 10.2 “Other liabilities within the Eurosystem (net)”
(a)Nominal value
(b)other intra-Eurosystem claims denominated in euro that may arise, including the interim distribution of ECB income to NCBs
(b)Nominal value
10 Items in course of settlementSettlement account balances (claims), including the float of cheques in collectionNominal value
11 Other assets
11.1 Coins of euro areaEuro coinsNominal value
11.2 Tangible and intangible fixed assetsLand and buildings, furniture and equipment including computer equipment, software

Cost less depreciation

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The useful life is the period over which a fixed asset is expected to be available for use by the entity. Useful lives of individual material fixed assets may be reviewed on a systematic basis, if expectations differ from previous estimates. Major assets may comprise components with different useful lives. The lives of such components should be assessed individually

The cost of intangible assets includes the price for the acquisition of the intangible asset. Other direct or indirect costs are to be expensed

Capitalisation of expenditure: limit based (below EUR 10 000 excluding VAT: no capitalisation)

11.3 Other financial assets
  • Participating interests and investments in subsidiaries, equities held for strategic/policy reasons

  • Securities including equities, and other financial instruments and balances including fixed-term deposits and current accounts held as an earmarked portfolio

  • Reverse repo transactions with credit institutions in connection with the management of securities portfolios under this item

(a)

Marketable equity instruments

Market price

(b)

Participating interests and illiquid equity shares, and any other equity instruments held as permanent investments

Cost subject to impairment

(c)

Investment in subsidiaries or significant interests

Net asset value

(d)

Marketable debt securities other than held to maturity

Market price

Premiums/discounts are amortised

(e)

Marketable debt securities classified as held-to-maturity or held as a permanent investment

Cost subject to impairment

Any premiums or discounts are amortised

(f)

Non-marketable debt securities

Cost subject to impairment

(g)

Balances with banks and loans

Nominal value, translated at the foreign exchange market rate if the balances/deposits are denominated in foreign currencies

11.4 Off-balance-sheet instruments revaluation differencesValuation results of foreign exchange forwards, foreign exchange swaps, interest rate swaps (unless daily variation margin applies), forward rate agreements, forward transactions in securities, foreign exchange spot transactions from trade date to settlement dateNet position between forward and spot, at the foreign exchange market rate
11.5 Accruals and prepaid expenditureIncome not due in, but assignable to the reported period. Prepaid expenditure and accrued interest paid, i.e. accrued interest purchased with a securityNominal value, foreign exchange translated at market rate
11.6 Sundry
(a)

Advances, loans and other minor items. Loans on a trust basis

(b)

Investments related to customer gold deposits

(c)

Net pension assets

(d)

Outstanding claims arising from the default of Eurosystem counterparties in the context of Eurosystem credit operations

(e)

Assets or claims (vis-à-vis third parties) appropriated and/or acquired in the context of the realisation of collateral submitted by Eurosystem counterparties in default

(a)

Nominal value or cost

(b)

Market value

(c)

As per Article 25(2)

(d)

Nominal/recoverable value (before/after settlement of losses)

(e)

Cost (converted at the foreign exchange market rate at the time of the acquisition if financial assets are denominated in foreign currencies)

12 Loss for the yearNominal value

LIABILITIES

Balance sheet itemCategorisation of contents of balance sheet itemsValuation principle
1 Banknotes in circulationEuro banknotes issued by the ECB, in accordance with Decision ECB/2010/29Nominal value
2 Liabilities to euro area credit institutions related to monetary policy operations denominated in euroItems 2.1, 2.2, 2.3 and 2.5: deposits in euro as described in Guideline (EU) 2015/510 (ECB/2014/60)
2.1 Current accounts (covering the minimum reserve system)Euro accounts of credit institutions that are included in the list of financial institutions subject to minimum reserves in accordance with the Statute of the European System of Central Banks and of the European Central Bank (the “Statute of the ESCB”). This item contains primarily accounts used in order to hold minimum reservesNominal value
2.2 Deposit facilityOvernight deposits at a pre-specified interest rate (standing facility)Nominal value
2.3 Fixed-term depositsCollection for liquidity absorption purposes owing to fine-tuning operationsNominal value
2.4 Fine-tuning reverse operationsMonetary policy-related transactions with the aim of liquidity absorptionNominal value or repo cost
2.5 Deposits related to margin callsDeposits of credit institutions, arising from value decreases of underlying assets regarding credits to these credit institutionsNominal value
3 Other liabilities to euro area credit institutions denominated in euroRepo transactions in connection with simultaneous reverse repo transactions for the management of securities portfolios under asset item 7 “Securities of euro area residents denominated in euro”. Other operations unrelated to Eurosystem monetary policy operations. No current accounts of credit institutionsNominal value or repo cost
4 ECB debt certificates issuedDebt certificates as described in Guideline (EU) 2015/510 (ECB/2014/60). Discount paper, issued with the aim of liquidity absorption

Cost

Any discounts are amortised

5 Liabilities to other euro area residents denominated in euro
5.1 General governmentCurrent accounts, fixed-term deposits, deposits repayable on demandNominal value
5.2 Other liabilitiesCurrent accounts of staff, companies and clients including financial institutions listed as exempt from the obligation to hold minimum reserves (see liability item 2.1); fixed-term deposits, deposits repayable on demandNominal value
6 Liabilities to non-euro-area residents denominated in euroCurrent accounts, fixed-term deposits, deposits repayable on demand including accounts held for payment purposes and accounts held for reserve management purposes: of other banks, central banks, international/supranational institutions including the European Commission; current accounts of other depositors. Repo transactions in connection with simultaneous reverse repo transactions for the management of securities denominated in euro. Balances of TARGET2 accounts of central banks of Member States whose currency is not the euroNominal value or repo cost
7 Liabilities to euro area residents denominated in foreign currencyCurrent accounts. Liabilities under repo transactions; usually investment transactions using foreign currency assets or goldNominal value, translated at year-end foreign exchange market rate
8 Liabilities to non-euro-area residents denominated in foreign currency
8.1 Deposits, balances and other liabilitiesCurrent accounts. Liabilities under repo transactions; usually investment transactions using foreign currency assets or goldNominal value, translated at the year-end foreign exchange market rate
8.2 Liabilities arising from the credit facility under ERM IIBorrowing in accordance with the ERM II conditionsNominal value, translated at the year-end foreign exchange market rate
9 Counterpart of special drawing rights allocated by the IMFSDR-denominated item which shows the amount of SDRs that were originally allocated to the respective country/NCBNominal value, translated at the year-end foreign exchange market rate
10 Intra-Eurosystem liabilities
10.1 Liabilities equivalent to the transfer of foreign reservesECB balance sheet item, denominated in euroNominal value
10.2 Other liabilities within the Eurosystem (net)Net position of the following sub-items:
(a)net liabilities arising from balances of TARGET2 accounts and correspondent accounts of NCBs, i.e. the net figure of claims and liabilities. See also asset item 9.3 “Other claims within the Eurosystem (net)”
(a)Nominal value
(b)other intra-Eurosystem liabilities denominated in euro that may arise, including the interim distribution of ECB income to NCBs
(b)Nominal value
11 Items in course of settlementSettlement account balances (liabilities), including the float of giro transfersNominal value
12 Other liabilities
12.1 Off-balance-sheet instruments revaluation differencesValuation results of foreign exchange forwards, foreign exchange swaps, interest rate swaps (unless daily variation margin applies), forward rate agreements, forward transactions in securities, foreign exchange spot transactions from trade date to settlement dateNet position between forward and spot, at the foreign exchange market rate
12.2 Accruals and income collected in advanceExpenditure falling due in a future period but relating to the reporting period. Income received in the reported period but relating to a future periodNominal value, foreign exchange translated at market rate
12.3 Sundry
(a)Taxation suspense accounts. Foreign currency credit or guarantee cover accounts. Repo transactions with credit institutions in connection with simultaneous reverse repo transactions for the management of securities portfolios under asset item 11.3 “Other financial assets”. Compulsory deposits other than reserve deposits. Other minor items. Liabilities on a trust basis.
(a)Nominal value or (repo) cost
(b)Customer gold deposits.
(b)Market value
(c)Net pension liabilities
(c)As per Article 25(2)
13 Provisions
(a)For foreign exchange rate, interest rate, credit and gold price risks, and for other purposes, e.g. expected future expenses and contributions in accordance with Article 48.2 of the Statute of the ESCB with respect to central banks of Member States whose derogations have been abrogated
(a)Cost/nominal value
(b)For counterparty or credit risks arising from monetary policy operations
(b)Nominal value (based on a valuation at year end by the Governing Council)
14 Revaluation accounts
(a)Revaluation accounts related to price movements for gold, for every type of euro-denominated securities, for every type of foreign currency-denominated securities, for options; market valuation differences related to interest rate risk derivatives; revaluation accounts related to foreign exchange rate movements for every currency net position held, including foreign exchange swaps/forwards and SDRs

Special revaluation accounts stemming from contributions in accordance with Article 48.2 of the Statute of the ESCB with respect to central banks of Member States whose derogations have been abrogated. See Article 14(2)

(a)Revaluation difference between average cost and market value, foreign exchange translated at market rate
(b)Remeasurement results of the net defined benefit liability (asset) in respect of post-employment benefits, which are the net position of the following sub-items:
(i)

Actuarial gains and losses in the present value of the defined benefit obligation

(ii)

Return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset)

(iii)

Any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset)

(b)As per Article 25(2)
15 Capital and reserves
15.1 CapitalPaid-up capitalNominal value
15.2 ReservesLegal reserves, in accordance with Article 33 of the Statute of the ESCB, and contributions in accordance with Article 48.2 of the Statute of the ESCB with respect to central banks of Member States whose derogations have been abrogatedNominal value
16 Profit for the yearNominal value
(1)

Decision (EU) 2016/2247 of the European Central Bank of 3 November 2016 on the annual accounts of the European Central Bank (ECB/2016/35) (OJ L 347, 20.12.2016, p. 1).