Decision of the European Central Bank of 11 November 2010 on the annual accounts of the European Central Bank (recast) (ECB/2010/21) (2011/65/EU) (repealed)

CHAPTER I GENERAL PROVISIONS

Article 1 Definitions

1. The terms defined in Article 1 of Guideline ECB/2010/20 shall have the same meaning when used in this Decision.

2. Other technical terms used in this Decision shall have the same meaning as in Annex II to Guideline ECB/2010/20.

Article 2 Scope of application

The rules set out in this Decision shall apply to the annual accounts of the European Central Bank (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/2010/20 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/2010/20.

Article 5 Economic and cash/settlement approaches

The rules set out in Article 5 of Guideline ECB/2010/20 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

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

2. 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.

3. 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. For foreign exchange, including on-balance-sheet and off-balance-sheet transactions, revaluation shall take place on a currency-by-currency basis. For the purpose of this Article, holdings of SDRs, including designated individual foreign exchange holdings underlying the SDR basket, shall be treated as one holding. For securities, revaluation shall take place on a code-by-code basis, i.e. same ISIN number/type. Securities held for monetary policy purposes or included in the items ‘Other financial assets’ or ‘Sundry’ shall be treated as separate holdings.

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

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

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

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

Article 9 Reverse transactions

Reverse transactions shall be accounted for in accordance with Article 8 of Guideline ECB/2010/20.

Article 10 Marketable equity instruments

Marketable equity instruments shall be accounted for in accordance with Article 9 of Guideline ECB/2010/20.

Article 11 Hedging of interest rate risk on securities with derivatives

The hedging of interest rate risk shall be accounted for in accordance with Article 10 of Guideline ECB/2010/20.

Article 12 Synthetic instruments

Synthetic instruments shall be accounted for in accordance with Article 11 of Guideline ECB/2010/20.

CHAPTER III INCOME RECOGNITION

Article 13 Income recognition

1. Article 13(1), (2), (3), (5) and (7) of Guideline ECB/2010/20 shall apply to income recognition.

2. Holdings on 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 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 13(1)(c) of Guideline ECB/2010/20, prior to the offsetting of such losses in accordance with Article 33.2 of the Statute of the ESCB. The holdings on special revaluation accounts for gold, currencies and securities shall be reduced pro rata in the event of a reduction in the holdings of the relevant assets.

Article 14 Cost of transactions

Article 14 of Guideline ECB/2010/20 shall apply to this Decision.

CHAPTER IV ACCOUNTING RULES FOR OFF-BALANCE-SHEET INSTRUMENTS

Article 15 General rules

Article 15 of Guideline ECB/2010/20 shall apply to this Decision.

Article 16 Foreign exchange forward transactions

Foreign exchange forward transactions shall be accounted for in accordance with Article 16 of Guideline ECB/2010/20.

Article 17 Foreign exchange swaps

Foreign exchange swaps shall be accounted for in accordance with Article 17 of Guideline ECB/2010/20.

Article 18 Future contracts

Future contracts shall be accounted for in accordance with Article 18 of Guideline ECB/2010/20.

Article 19 Interest rate swaps

Interest rate swaps shall be accounted for in accordance with Article 19 of Guideline ECB/2010/20. Unrealised losses taken to the profit and loss account at the year-end shall be amortised in subsequent years in accordance with the straight-line method. For forward interest rate swaps the amortisation shall begin from the value date of the transaction.

Article 20 Forward rate agreements

Forward rate agreements shall be accounted for in accordance with Article 20 of Guideline ECB/2010/20.

Article 21 Forward transactions in securities

Forward transactions in securities shall be accounted for in accordance with Method A in Article 21(1) of Guideline ECB/2010/20.

Article 22 Options

Options shall be accounted for in accordance with Article 22 of Guideline ECB/2010/20.

CHAPTER V ANNUAL PUBLISHED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT

Article 23 Formats

1. The format of the ECB’s published annual balance sheet shall follow the format in Annex II.

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

CHAPTER VI FINAL PROVISIONS

Article 24 Development, application and interpretation of rules

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

2. 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, which are relevant to the ECB’s activities and accounts.

Article 25 Repeal

Decision ECB/2006/17 is hereby repealed. References to the repealed Decision shall be construed as references to this Decision and shall be read in accordance with the correlation table in Annex V.

Article 26 Entry into force

This Decision shall enter into force on 31 December 2010.

Done at Frankfurt am Main, 11 November 2010.

The President of the ECB

Jean-Claude Trichet