Guideline of the European Central Bank of 21 December 2011 amending Guideline ECB/2010/20 on the legal framework for accounting and financial reporting in the European System of Central Banks (ECB/2011/27) (2012/38/EU)

In forceVersion 2011-12-21from 2011-12-31

Grade B

mapped from publisher markup. A grade says how a document's structure was obtained, not how reliable the law is.

Address https://gelex.eu/eli/EU/act/o/2011/27@2011-12-21/en

Contents

Preamble
ANNEX
ANNEX
ANNEX IV COMPOSITION AND VALUATION RULES FOR THE BALANCE SHEET ASSETS (a)(a)(b)(b)(c)(c) LIABILITIES (a)(a)(b)(b)(a)(a)(b)(b)(c)(c)(a)(a)(b)(b)
grp_10
grp_19
grp_28
grp_35
Revaluation suspense accounts
Investments related to customer gold deposits
Outstanding claims (from defaults)
Assets or claims (from defaults)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Articles 12.1, 14.3 and 26.4 thereof,

Having regard to the contribution of the General Council of the European Central Bank pursuant to the second and third indents of Article 46.2 of the Statute of the European System of Central Banks and of the European Central Bank,

Whereas:

(1) Guideline ECB/2010/20 of 11 November 2010 on the legal framework for accounting and financial reporting in the European System of Central Banks lays down the rules for standardising the accounting and financial reporting of operations undertaken by the national central banks.

(2) Given the diversity of monetary policy operations, it needs to be clarified in Annex IV to Guideline ECB/2010/20 that provisions related to monetary policy operations may differ, i.e. provisions booked under liability item 13, and mentioned under asset item 7.1, may not necessarily be Eurosystem provisions.

(3) Guideline ECB/2010/20 needs to be amended accordingly,

HAS ADOPTED THIS GUIDELINE:

Article 1 Amendment

Guideline ECB/2010/20 is amended as follows: Annex IV to Guideline ECB/2010/20 is replaced by the Annex to this Guideline.

Article 2 Entry into force

This Guideline shall enter into force on 31 December 2011.

Article 3 Addressees

This Guideline applies to all Eurosystem central banks.

Done at Frankfurt am Main, 21 December 2011. For the Governing Council of the ECB The President of the ECB Mario Draghi

ANNEX

ANNEX IV COMPOSITION AND VALUATION RULES FOR THE BALANCE SHEET ASSETS (a)(a)(b)(b)(c)(c) LIABILITIES (a)(a)(b)(b)(a)(a)(b)(b)(c)(c)(a)(a)(b)(b)

Balance sheet item Categorisation of contents of balance sheet items Valuation principle Scope of application 1 1 Gold and gold receivables Physical 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 receipt Market value Mandatory 2 2 Claims on non-euro area residents denominated in foreign currency Claims 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 2.1 Receivables from the International Monetary Fund (IMF) Mandatory Mandatory Mandatory 2.2 2.2 Balances with banks and security investments, external loans and other external assets Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory 3 3 Claims on euro area residents denominated in foreign currency Mandatory Mandatory Mandatory Mandatory Mandatory 4 4 Claims on non-euro area residents denominated in euro 4.1 4.1 Balances with banks, security investments and loans Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory 4.2 4.2 Claims arising from the credit facility under ERM II Lending according to the ERM II conditions Nominal value Mandatory 5 5 Lending to euro area credit institutions related to monetary policy operations denominated in euro Items 5.1 to 5.5: transactions according to the respective monetary policy instruments described in Annex I to Guideline ECB/2011/14 of 20 September 2011 on monetary policy instruments and procedures of the Eurosystem 5.1 5.1 Main refinancing operations Regular liquidity-providing reverse transactions with a weekly frequency and normally a maturity of 1 week Nominal value or repo cost Mandatory 5.2 5.2 Longer-term refinancing operations Regular liquidity-providing reverse transactions with a monthly frequency and normally a maturity of 3 months Nominal value or repo cost Mandatory 5.3 5.3 Fine-tuning reverse operations Reverse transactions, executed as ad hoc transactions for fine-tuning purposes Nominal value or repo cost Mandatory 5.4 5.4 Structural reverse operations Reverse transactions adjusting the structural position of the Eurosystem vis-à-vis the financial sector Nominal value or repo cost Mandatory 5.5 5.5 Marginal lending facility Overnight liquidity facility at a pre-specified interest rate against eligible assets (standing facility) Nominal value or repo cost Mandatory 5.6 5.6 Credits related to margin calls Additional credit to credit institutions, arising from value increases of underlying assets regarding other credit to these credit institutions Nominal value or cost Mandatory 6 6 Other claims on euro area credit institutions denominated in euro Current 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 Eurosystem. Any claims stemming from monetary policy operations initiated by an NCB prior to joining the Eurosystem Nominal value or cost Mandatory 7 7 Securities of euro area residents denominated in euro 7.1 7.1 Securities held for monetary policy purposes Securities issued in the euro area held for monetary policy purposes. ECB debt certificates purchased for fine-tuning purposes Mandatory Mandatory Mandatory 7.2 7.2 Other securities Securities 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 EMU, denominated in euro. Equity instruments Mandatory Mandatory Mandatory Mandatory 8 8 General government debt denominated in euro Claims on government stemming from before EMU (non-marketable securities, loans) Deposits/loans at nominal value, non-marketable securities at cost Mandatory — 9 Intra-Eurosystem claims+) — 9.1 Participating interest in ECB+) Only an NCB balance sheet item The ECB capital share of each NCB in accordance with the Treaty and the respective capital key and contributions in accordance with Article 48.2 of the Statute of the ESCB Cost Mandatory — 9.2 Claims equivalent to the transfer of foreign reserves+) Only an NCB balance sheet item Euro-denominated claims on the ECB in respect of initial and additional transfers of foreign reserves under Article 30 of the Statute of the ESCB Nominal value Mandatory — 9.3 Claims related to the issuance of ECB debt certificates+) Only an ECB balance sheet item Intra-Eurosystem claims vis-à-vis NCBs, arising from the issuance of ECB debt certificates Cost Mandatory — 9.4 Net claims related to the allocation of euro banknotes within the Eurosystem+) For the NCBs: net claim related to the application of the banknote allocation key i.e. including the ECB’s banknote issue related intra-Eurosystem balances, the compensatory amount and its balancing accounting entry as defined by Decision ECB/2010/23 of 25 November 2010 on the allocation of monetary income of the national central banks of Member States whose currency is the euro For the ECB: claims related to the ECB’s banknote issue, in accordance with Decision ECB/2010/29 Nominal value Mandatory — 9.5 Other claims within the Eurosystem (net)+) Net position of the following sub-items: 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 10.4 Other liabilities within the Eurosystem (net); Nominal value Mandatory claim due to the difference between monetary income to be pooled and redistributed. Only relevant for the period between booking of monetary income as part of the year-end procedures, and its settlement on the last working day in January each year; Nominal value Mandatory other intra-Eurosystem claims denominated in euro that may arise, including the interim distribution of ECB income Nominal value Mandatory 9 10 Items in the course of settlement Settlement account balances (claims), including the float of cheques in collection Nominal value Mandatory 9 11 Other assets 9 11.1 Coins of euro area Euro coins if an NCB is not the legal issuer Nominal value Mandatory 9 11.2 Tangible and intangible fixed assets Land and buildings, furniture and equipment including computer equipment, software Cost less depreciation Depreciation rates: Capitalisation of expenditure: limit based (below EUR 10000 excluding VAT: no capitalisation) Recommended 9 11.3 Other financial assets Recommended Recommended Recommended Recommended Recommended Recommended Recommended 9 11.4 Off-balance-sheet instruments revaluation differences Valuation results of foreign exchange forwards, foreign exchange swaps, interest rate swaps, forward rate agreements, forward transactions in securities, foreign exchange spot transactions from trade date to settlement date Net position between forward and spot, at the foreign exchange market rate Mandatory 9 11.5 Accruals and prepaid expenditure Income not due in, but assignable to the reported period. Prepaid expenditure and accrued interest paid (i.e. accrued interest purchased with a security) Nominal value, foreign exchange translated at market rate Mandatory 9 11.6 Sundry Advances, loans and other minor items. Revaluation suspense accounts (only balance sheet item during the year: unrealised losses at revaluation dates during the year, which are not covered by the respective revaluation accounts under the liability item Revaluation accounts). Loans on a trust basis. Investments related to customer gold deposits. Coins denominated in national euro area currency units. Current expense (net accumulated loss), loss of the previous year before coverage. Net pension assets Nominal value or cost Recommended Mandatory Mandatory Outstanding claims arising from the default of Eurosystem counterparties in the context of Eurosystem credit operations Mandatory 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 Mandatory — 12 Loss for the year Nominal value Mandatory Balance sheet item Categorisation of contents of balance sheet items Valuation principle Scope of application 1 1 Banknotes in circulation Euro banknotes, plus/minus adjustments relating to the application of the banknote allocation key in accordance with Decision ECB/2010/23 and Decision ECB/2010/29 Nominal value Mandatory Banknotes denominated in national euro area currency units during the cash changeover year Nominal value Mandatory 2 2 Liabilities to euro area credit institutions related to monetary policy operations denominated in euro Items 2.1, 2.2, 2.3 and 2.5: deposits in euro as described in Annex I to Guideline ECB/2011/14 2.1 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 ESCB. This item contains primarily accounts used in order to hold minimum reserves Nominal value Mandatory 2.2 2.2 Deposit facility Overnight deposits at a pre-specified interest rate (standing facility) Nominal value Mandatory 2.3 2.3 Fixed-term deposits Collection for liquidity absorption purposes owing to fine-tuning operations Nominal value Mandatory 2.4 2.4 Fine-tuning reverse operations Monetary policy-related transactions with the aim of liquidity absorption Nominal value or repo cost Mandatory 2.5 2.5 Deposits related to margin calls Deposits of credit institutions, arising from value decreases of underlying assets regarding credits to these credit institutions Nominal value Mandatory 3 3 Other liabilities to euro area credit institutions denominated in euro Repo 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 institutions. Any liabilities/deposits stemming from monetary policy operations initiated by a central bank prior to joining the Eurosystem Nominal value or repo cost Mandatory 4 4 Debt certificates issued Only an ECB balance sheet item — for the NCBs a transitional balance sheet item. Debt certificates as described in Annex I to Guideline ECB/2011/14. Discount paper, issued with the aim of liquidity absorption Cost Any discounts are amortised Mandatory 5 5 Liabilities to other euro area residents denominated in euro 5.1 5.1 General government Current accounts, fixed-term deposits, deposits repayable on demand Nominal value Mandatory 5.2 5.2 Other liabilities Current accounts of staff, companies and clients including financial institutions listed as exempt from the obligation to hold minimum reserves (see liability item 2.1 Current accounts); fixed-term deposits, deposits repayable on demand Nominal value Mandatory 6 6 Liabilities to non-euro area residents denominated in euro Current 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 euro Nominal value or repo cost Mandatory 7 7 Liabilities to euro area residents denominated in foreign currency Current accounts. liabilities under repo transactions; usually investment transactions using foreign currency assets or gold Nominal value, translation at the foreign exchange market rate Mandatory 8 8 Liabilities to non-euro area residents denominated in foreign currency 8.1 8.1 Deposits, balances and other liabilities Current accounts. Liabilities under repo transactions; usually investment transactions using foreign currency assets or gold Nominal value, translation at the foreign exchange market rate Mandatory 8.2 8.2 Liabilities arising from the credit facility under ERM II Borrowing in accordance with the ERM II conditions Nominal value, translation at the foreign exchange market rate Mandatory 9 9 Counterpart of special drawing rights allocated by the IMF SDR-denominated item which shows the amount of SDRs that were originally allocated to the respective country/NCB Nominal value, translation at the market rate Mandatory — 10 Intra-Eurosystem liabilities+) — 10.1 Liabilities equivalent to the transfer of foreign reserves+) Only an ECB balance sheet item denominated in euro Nominal value Mandatory — 10.2 Liabilities related to the issuance of ECB debt certificates+) Only an NCB balance sheet item Intra-Eurosystem liability vis-à-vis the ECB, arising from the issuance of ECB debt certificates Cost Mandatory — 10.3 Net liabilities related to allocation of euro banknotes within the Eurosystem+) Only an NCB balance sheet item. For the NCBs: net liability related to the application of the banknote allocation key, i.e. including the ECB’s banknote issue related intra-Eurosystem balances, the compensatory amount and its balancing accounting entry as defined by Decision ECB/2010/23 Nominal value Mandatory — 10.4 Other liabilities within the Eurosystem (net)+) Net position of the following sub-items: 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 9.5 Other claims within the Eurosystem (net); Nominal value Mandatory liability due to the difference between monetary income to be pooled and redistributed. Only relevant for the period between booking of monetary income as part of the year-end procedures, and its settlement at the last working day in January each year; Nominal value Mandatory other intra-Eurosystem liabilities denominated in euro that may arise, including the interim distribution of ECB income Nominal value Mandatory 10 11 Items in course of settlement Settlement account balances (liabilities), including the float of giro transfers Nominal value Mandatory 10 12 Other liabilities 10 12.1 Off-balance-sheet instruments revaluation differences Valuation results of foreign exchange forwards, foreign exchange swaps, interest rate swaps, forward rate agreements, forward transactions in securities, foreign exchange spot transactions from trade date to settlement date Net position between forward and spot, at the foreign exchange market rate Mandatory 10 12.2 Accruals and income collected in advance Expenditure falling due in a future period but relating to the reported period. Income received in the reported period but relating to a future period Nominal value, foreign exchange translated at market rate Mandatory 10 12.3 Sundry 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. Current income (net accumulated profit), profit of the previous year before distribution. Liabilities on a trust basis. Customer gold deposits. Coins in circulation in the event that an NCB is the legal issuer. Banknotes in circulation denominated in national euro area currency units that have ceased to be legal tender but are still in circulation after the cash changeover year, if not shown under liability item Provisions. Net pension liabilities Nominal value or (repo) cost Recommended Customer gold deposits Market value Customer gold deposits: mandatory 10 13 Provisions For pensions, for foreign exchange rate, interest rate, credit and gold price risks, and for other purposes, e.g. expected future expenses, provisions for national euro area currency units that have ceased to be legal tender but are still in circulation after the cash changeover year if these banknotes are not shown under liability item 12.3 Other liabilities/Sundry The contributions from NCBs to the ECB in accordance with Article 48.2 of the Statute of the ESCB are consolidated with the respective amounts disclosed under asset item 9.1 Participating interest in ECB+) Cost/nominal value Recommended For counterparty or credit risks arising from monetary policy operations Nominal value Mandatory 11 14 Revaluation accounts 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 The contributions from NCBs in accordance with Article 48.2 of the Statute of the ESCB to the ECB are consolidated with the respective amounts disclosed under asset item 9.1 Participating interest in ECB+) Revaluation difference between average cost and market value, foreign exchange translated at market rate Mandatory 12 15 Capital and reserves 12 15.1 Capital Paid-up capital — the ECB’s capital is consolidated with the capital shares of the NCBs Nominal value Mandatory 12 15.2 Reserves Legal reserves and other reserves. Retained earnings The contributions from NCBs to the ECB in accordance with Article 48.2 of the Statute of the ESCB are consolidated with the respective amounts disclosed under asset item 9.1 Participating interest in ECB+) Nominal value Mandatory 10 16 Profit for the year Nominal value Mandatory

COMPOSITION AND VALUATION RULES FOR THE BALANCE SHEET ASSETS

(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, translation at the foreign exchange market rate

(b) SDRs Holdings of SDRs (gross)

(b) SDRs Nominal value, translation 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

(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, translation 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)

grp_10

(i) Marketable securities other than held-to-maturity Market price and foreign exchange market rate Any premiums or discounts are amortised

(ii) Marketable securities classified as held-to-maturity Cost subject to impairment and foreign exchange market rate Any premiums or discounts are amortised

(iii) Non-marketable 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

(d) Other external assets Non-euro area banknotes and coins

(d) Other external assets Nominal value, translation at the foreign exchange market rate

(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)

grp_19

(i) Marketable securities other than held-to-maturity Market price and foreign exchange market rate Any premiums or discounts are amortised

(ii) Marketable securities classified as held-to-maturity Cost subject to impairment and foreign exchange market rate Any premiums or discounts are amortised

(iii) Non-marketable 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

(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)

grp_28

(i) Marketable securities other than held-to-maturity Market price Any premiums or discounts are amortised

(ii) Marketable securities classified as held-to-maturity Cost subject to impairment Any premiums or discounts are amortised

(iii) Non-marketable securities Cost subject to impairment Any premiums or discounts are amortised

(iv) Marketable equity instruments Market price

(d) Securities other than those under asset item 11.3 Other financial assets, issued by entities outside the euro area Securities issued by supranational or international organisations, e.g. the European Investment Bank, irrespective of their geographical location

(d)

grp_35

(i) Marketable securities other than held-to-maturity Market price Any premiums or discounts are amortised

(ii) Marketable securities classified as held-to-maturity Cost subject to impairment Any premiums or discounts are amortised

(iii) Non-marketable securities Cost subject to impairment Any premiums or discounts are amortised

(a) Marketable securities other than held-to-maturity Market price Any premiums or discounts are amortised

(b) Marketable securities classified as held-to-maturity 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

(a) Marketable securities other than held-to-maturity Market price Any premiums or discounts are amortised

(b) Marketable securities classified as held-to-maturity Cost subject to impairment Any premiums or discounts are amortised

(d) Marketable equity instruments Market price

computers and related hardware/software and motor vehicles: 4 years

equipment, furniture and plant in building: 10 years

building and capitalised major refurbishment expenditure: 25 years

Participating interests and investments in subsidiaries; equities held for strategic/policy reasons

Securities, including equities, and other financial instruments and balances (e.g. 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

COMPOSITION AND VALUATION RULES FOR THE BALANCE SHEET ASSETS (a)(a)(b)(b)(c)(c)

(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

(d) Marketable securities other than held-to-maturity Market price Any premiums or discounts are amortised

(e) Marketable 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 securities Cost subject to impairment Any premiums or discounts are amortised

(g) Balances with banks and loans Nominal value, translated at the foreign exchange market rate if the balances or deposits are denominated in foreign currencies

Revaluation suspense accounts

Revaluation difference between average cost and market value, foreign exchange translated at market rate

Investments related to customer gold deposits

Market value

Outstanding claims (from defaults)

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

Assets or claims (from defaults)

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

Versions

2011-12-21