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2006/888/EC: Decision of the European Central Bank of 10 November 2006 on the annual accounts of the European Central Bank (ECB/2006/17)

Type Decision

Publication 2006-12-11

Last updated 2010-12-31

State Repealed

Department European Central Bank

Source EUR-Lex

articles 28

Reform history JSON API

2006D9017 — EN — 31.12.2010 — 005.001

This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents


	DECISION OF THE EUROPEAN CENTRAL BANK of 10 November 2006 on the annual accounts of the European Central Bank (ECB/2006/17) (2006/888/EC) (OJ L 348, 11.12.2006, p.38)

Amended by:


	Official Journal	Official Journal	Official Journal
	No	page	date
Decision of the European Central Bank of 17 December 2007	L 42	83	16.2.2008
Decision of the European Central Bank of 11 December 2008	L 36	22	5.2.2009
Decision of the European Central Bank of 17 July 2009	L 202	54	4.8.2009
Decision of the European Central Bank of 14 December 2009	L 348	57	29.12.2009

DECISION OF THE EUROPEAN CENTRAL BANK

of 10 November 2006

on the annual accounts of the European Central Bank

(ECB/2006/17)

(2006/888/EC)

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 to Article 26.2 thereof,

Whereas:


(1)	Decision ECB/2002/11 of 5 December 2002 on the annual accounts of the European Central Bank (1) (ECB) requires significant amendment. From 1 January 2007 the European System of Central Banks (ESCB) will use the economic approach as defined in Guideline ECB/2006/16 of 10 November 2006 on the legal framework for accounting and financial reporting in the European System of Central Banks (2) to record foreign exchange transactions, financial instruments denominated in foreign currency and related accruals. It is desirable for reasons of clarity to recast the Decision in a single text.

---	---
(2)	Decisions ECB/2002/11, ECB/2005/12 and ECB/2006/3 which are replaced by this Decision should be repealed,

HAS DECIDED AS FOLLOWS:

CHAPTER I

GENERAL PROVISIONS

Article 1

Definitions

The terms defined in Article 1 of Guideline ECB/2006/16 shall have the same meaning when used in this Decision.

Other technical terms used in this Decision shall have the same meaning as in Annex II to Guideline ECB/2006/16.

Article 2

Scope of application

The rules set out in this Decision shall apply to the annual accounts of the ECB comprising the balance sheet, items recorded in the books of the ECB off-balance sheet, the profit and loss account and the notes to the annual accounts of the ECB.

Article 3

Basic accounting assumptions

The basic accounting assumptions defined in Article 3 of Guideline ECB/2006/16 shall also apply for the purposes of this Decision.

Article 4

Recognition of assets and liabilities

A financial or other asset/liability shall only be recognised in the balance sheet of the ECB in accordance with Article 4 of Guideline ECB/2006/16.

Article 5

Economic and cash/settlement approaches

Article 5 of Guideline ECB/2006/16 shall apply to this Decision.

CHAPTER II

COMPOSITION AND VALUATION RULES FOR THE BALANCE SHEET

Article 6

Composition of the balance sheet

The composition of the balance sheet shall be based on the structure set out in Annex I.

Article 7

Provision for foreign exchange rate, interest rate, credit and gold price risks

Taking into due consideration the nature of the ECB’s activities, the Governing Council may establish a provision for foreign exchange rate, interest rate, credit and gold price risks in the balance sheet of the ECB. The Governing Council shall decide on the size and use of the provision on the basis of a reasoned estimate of the ECB’s risk exposures.

Article 8

Balance sheet valuation rules

Current market rates and prices shall be used for balance sheet valuation purposes unless specified otherwise in Annex I.

The revaluation of gold, foreign currency instruments, securities other than those classified as held-to-maturity and non-marketable securities, as well as financial instruments, both on-balance-sheet and off-balance-sheet, shall be performed at the year-end at mid-market rates and prices.

No distinction shall be made between price and currency revaluation differences for gold, but a single gold revaluation difference shall be accounted for, based on the euro price per defined unit of weight of gold derived from the euro/US dollar exchange rate on the quarterly revaluation date. Revaluation shall take place on a currency-by-currency basis for foreign exchange, including on-balance-sheet and off-balance-sheet transactions, and on a code-by-code basis i.e. same ISIN number/type for securities, except for those securities included in the items ‘Other financial assets’ or ‘Sundry’, or securities held for monetary policy purposes, which shall be treated as separate holdings.

Securities classified as held-to-maturity shall be treated as separate holdings, shall be valued at amortised costs and shall be subject to impairment. The same treatment shall apply to non-marketable securities. Securities classified as held-to-maturity may be sold before their maturity:

(i)if the quantity sold is considered not significant in comparison with the total amount of the held-to-maturity securities portfolio; or

(ii)if the securities are sold during the month of the maturity date; or

(iii)under exceptional circumstances, such as a significant deterioration of the issuer’s creditworthiness, or following an explicit monetary policy decision of the Governing Council of the ECB.

Article 9

Reverse transactions

Reverse transactions shall be accounted for in accordance with Article 8 of Guideline ECB/2006/16.

Article 10

Marketable equity instruments

Marketable equity instruments shall be accounted for in accordance with Article 9 of Guideline ECB/2006/16.

Article 10a

Synthetic instruments

The accounting treatment of synthetic instruments shall be in accordance with Article 9a of Guideline ECB/2006/16.

CHAPTER III

INCOME RECOGNITION

Article 11

Income recognition

Article 11(1), (2), (3), (5) and (7) of Guideline ECB/2006/16 shall apply to income recognition.

Holdings on special revaluation accounts stemming from contributions according to Article 49.2 of the Statute with respect to central banks of Member States for which the derogation has been abrogated shall be used to offset unrealised losses when exceeding previous revaluation gains registered in the corresponding standard revaluation account as laid down by Article 11(1)(c) of Guideline ECB/2006/16, prior to the offsetting of such losses in accordance with Article 33.2 of the Statute. The holdings on special revaluation accounts for gold, for currencies and for securities shall be reduced pro rata in the event of a reduction in the holdings of the relevant assets.

Article 12

Cost of transactions

Article 12 of Guideline ECB/2006/16 shall apply to this Decision.

CHAPTER IV

ACCOUNTING RULES FOR OFF-BALANCE-SHEET INSTRUMENTS

Article 13

General rules

Article 13 of Guideline ECB/2006/16 shall apply to this Decision.

Article 14

Foreign exchange forward transactions

Foreign exchange forward transactions shall be accounted for in accordance with Article 14 of Guideline ECB/2006/16.

Article 15

Foreign exchange swaps

Foreign exchange swaps shall be accounted for in accordance with Article 15 of Guideline ECB/2006/16.

Article 16

Future contracts

Future contracts shall be accounted for in accordance with Article 16 of Guideline ECB/2006/16.

Article 17

Interest rate swaps

Interest rate swaps shall be accounted for in accordance with Article 17 of Guideline ECB/2006/16. Unrealised losses taken to the profit and loss account at the year-end shall be amortised in subsequent years according to the straight-line method. In the case of forward interest rate swaps the amortisation shall begin from the value date of the transaction.

Article 18

Forward rate agreements

Forward rate agreements shall be accounted for in accordance with Article 18 of Guideline ECB/2006/16.

Article 19

Forward transactions in securities

Forward transactions in securities shall be accounted for in accordance with Method A in Article 19(1) of Guideline ECB/2006/16.

Article 20

Options

Options shall be accounted for in accordance with Article 20 of Guideline ECB/2006/16.

CHAPTER V

ANNUAL PUBLISHED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT

Article 21

Formats

The format for the ECB's published annual balance sheet shall follow the format in Annex II.

The format of the ECB's published profit and loss account shall comply with Annex III.

CHAPTER VI

FINAL PROVISIONS

Article 22

Development, application and interpretation of rules

The ESCB's Accounting and Monetary Income Committee (AMICO) shall report to the Governing Council, via the Executive Board, on the development, application and implementation of the ESCB's accounting and financial reporting rules.

In interpreting this Decision, account shall be taken of the preparatory work, the accounting principles harmonised by Community law and generally accepted international accounting standards.

If a specific accounting treatment is not laid down in this Decision and in the absence of a decision to the contrary by the Governing Council, the ECB shall follow valuation principles in accordance with International Accounting Standards as adopted by the European Union relevant to the activities and accounts of the ECB.

Article 23

Repeal

Decisions ECB/2002/11, ECB/2005/12 and ECB/2006/3 are hereby repealed. References to the repealed Decisions shall be construed as references to this Decision and shall be read in accordance with the correlation table in Annex IV.

Article 24

Final provision

This Decision shall enter into force on 1 January 2007.

ANNEX I

COMPOSITION AND VALUATION RULES FOR THE BALANCE SHEET

Note: the numbering relates to the balance sheet format given in Annex II.

ANNEX II

ANNEX III

ANNEX IV

CORRELATION TABLE

(1) OJ L 58, 3.3.2003, p. 38. Decision as last amended by Decision ECB/2006/3 (OJ L 89, 28.3.2006, p. 56).

(2) See page … of this Official Journal.

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