1986L0635 — EN — 17.07.2003 — 002.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCILDIRECTIVE
of8December 1986
ontheannualaccountsandconsolidatedaccountsofbanksandotherfinancialinstitutions
(86/635/EEC)
(OJ L 372, 31.12.1986, p. 1)
Amended by:
Official Journal
No page date
►M1Directive 2001/65/EC of the European Parliament and of the Council of
27 September 2001L 283 28 27.10.2001
►M2Directive 2003/51/EC of the European Parliament and of the Council of
18 June 2003L 178 16 17.7.2003
▼B
COUNCILDIRECTIVE
of8December 1986
on the annual accounts and consolidated accounts of banks and
otherfinancialinstitutions
(86/635/EEC)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community, and
inparticular Article 54 (3) (g) thereof,
Having regard to the proposal from the Commission (1),
Having regard to the opinion of the European Parliament (2),
Having regard to the opinion of the Economic and Social
Committee (3),
Whereas Council Directive 78/660/EEC of 25 July 1978, based on
Article 54 (3) (g) of the Treaty, on the annual accounts of certain types
of companies (4), as last amended by Directive 84/569/EEC (5), need
not be applied to banks and other financial institutions, hereafterreferred to as ‘credit institutions’, pending subsequent coordination;whereas in view of the central importance of these undertakings in theCommunity, such coordination is necessary;
Whereas Council Directive 83/349/EEC of 13 June 1983, based on
Article 54 (3) (g) of the Treaty, on consolidated accounts (
6), provides
for derogations for credit institutions only until expiry of the deadlineimposed for the applicationof this Directive; whereas this Directive
must therefore also include provisions specific to credit institutions in
respect of consolidated accounts;
Whereas such coordination has also become urgent because more and
more credit institutions are operating across national borders; whereasfor creditors, debtors and members and for the general public improved
comparability of the annual accounts and consolidated accounts of
these institutions is of crucial importance;
Whereas invirtually all the Member States of the Commun ity credit
institutions within the meaning of Council Directive 77/780/EEC of
12 December 1977 on the coordination of laws, regulations and admin-
istrative provisions relating to the taking up and pursuit of the businessof credit institutions (
7), having many different legal forms, are in
competition with one another in the banking sector; whereas it there-fore seems advisable not to confine coordination in respect of thesecredit institutions to the legal forms covered by Directive 78/660/EEC
but rather to opt for a scope which includes all companies and firms as
defined in the second paragraph of Article 58 of the Treaty;
Whereas as far as financial institutions are concerned the scope of this
Directive should however be confined to those financial institutions
taking one of the legal forms referred to in Directive 78/660/EEC;
whereas financial institutions which are not subject to that Directivemust automatically come under this Directive;
Whereas a link with coordination in respect of credit institutions is
necessary because aspects of the provisions governing annual accounts
and consolidated accounts will have an impact on other areas of that
coordination, such as authorization requirements and the indicatorsused for supervisory purposes;1986L0635 — EN — 17.07.2003 — 002.001 — 2
(1) OJ No C 130, 1. 6. 1981, p. 1, OJ No C 83, 24. 3. 1984, p. 6 and OJ No C
351, 31. 12. 1985, p. 24.
(2) OJ No C 242, 12. 9. 1983, p. 33 and OJ No C 163, 10. 7. 1978, p. 60.
(3) OJ No C 112, 3. 5. 1982, p. 60.
(4) OJ No L 222, 14. 8. 1978, p. 11.
(5) OJ No L 314, 4. 12. 1984, p. 28.
(6) OJ No L 193, 18. 7. 1983, p. 1.
(7) OJ No L 322, 17. 12. 1977, p. 30.
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Whereas although, inview of the specific characteristics of credit in sti-
tutions, it would appear appropriate to adopt a separate Directive on theannual accounts and consolidated accounts of such institutions, this
does not imply a new set of rules separate from those under Directives
78/660/EEC and 83/349/EEC; whereas such separate rules would beneither appropriate nor consistent with the principles underlying thecoordination of company law since, given the important role whichthey play in the Community economy, credit institutions cannot be
excluded from a framework of rules devised for undertakings generally;
whereas, for this reason, only the particular characteristics of creditinstitutions have been taken into account and this Directive deals onlywith exceptions to the rules contained in Directives 78/660/EEC and83/349/EEC;
Whereas the structure and content of the balance sheets of credit insti-
tutions differ in each Member State; whereas this Directive musttherefore prescribe the same layout, nomenclature and terminology for
the balance sheets of all credit institutions in the Community; whereas
derogations should be allowed if necessitated by the legal form of aninstitution or by the special nature of its business;
Whereas, if the annual accounts and consolidated accounts are to be
comparable, a number of basic questions regarding the disclosure ofvarious transactions in the balance sheet and off the balance sheetmust be settled;
Whereas, in the interests of greater comparability, it is also necessary
that the content of the various balance sheet and off-balance sheetitems be determined precisely;
Whereas the same applies to the layout and definition of the items in
the profit and loss account;
Whereas the comparability of figures in the balance sheet and profit
and loss account also depends crucially on the values at which assetsand liabilities are entered in the balance sheet;
Whereas, in view of the particular risks associated with banking and of
the need to maintain confidence, provision should be made for thepossibility of introducing a liabilities item in the balance sheet entitled‘Fund for general banking risks’; whereas it would appear advisable for
the same reasons that the Member States be permitted, pending subse-
quent coordination, to allow credit institutions some discretion,especially in the valuation of loans and advances and of certain securi-ties; whereas, however, inthis last case the Member States shouldallow these same credit institutions to create the ‘Fund for generalbanking risks’ mentioned above; whereas it would also appear appro-
priate to permit the Member States to allow credit institutions to set
of certain charges and income in the profit and loss account;
Whereas, in view of the special nature of credit institutions, certain
changes are also necessary with regard to the notes on the accounts;
Whereas, in the desire to place on the same footing as many credit
institutions as possible, as was the case with Directive 77/780/EEC,
the relief under Directive 78/660/EEC is not provided for in the caseof small and medium-sized credit institutions; whereas, nevertheless,if in the light of experience such relief were to prove necessary itwould be possible to provide for it in subsequent coordination; whereasfor the same reasons the scope allowed the Member States under Direc-
tive 83/349/EEC to exempt parent undertakings from the consolidation
requirement if the undertakings to be consolidated do not togetherexceed a certain size has not been extended to credit institutions;
Whereas the application of the provisions on consolidated accounts to
credit institutions requires certain adjustments to some of the rulesapplicable to all industrial and commercial companies; whereas explicitrules have beenprovided for inthe case of mixed groups an d exemp-tion from subconsolidation may be made subject to additional
conditions;
Whereas, given the scale on which banking networks extend beyond
national borders and their constant development, the annual accounts1986L0635 — EN — 17.07.2003 — 002.001 — 3
▼B
and consolidated accounts of a credit institution having its head office
inon e Member State should be published inall the Member States inwhich it is established;
Whereas the examination of problems which arise in connection with
the subject matter of this Directive, notably concerning its application,requires the cooperation of representatives of the Member States andthe Commissionina con tact committee; whereas, inorder to avoidthe proliferationof such committees, it is desirable that such coopera-
tiontake place inthe Committee provided for inArticle 52 of Directive
78/660/EEC; whereas, nevertheless, when examining problemsconcerning credit institutions, the Committee will have to be appropri-ately constituted;
Whereas, in view of the complexity of the matter, the credit institutions
covered by this Directive must be allowed a longer period than usual to
implement its provisions;
Whereas provisionshould be made for the review of certainprovision s
of this Directive after five years' experience of its application, in thelight of the aims of greater transparency and harmonization,
HAS ADOPTED THIS DIRECTIVE:
SECTION 1
PRELIMINARYPROVISIONSANDSCOPE
Article 1
1. Articles 2, 3, 4(1), (3) to (6), Articles 6, 7, 13, 14, 15(3) and (4),
Articles 16 to 21, 29 to 35, 37 to 41, 42 first sentence, 42a to 42f,
45(1), 46(1) and (2), Articles 48 to 50, 50a, 51(1) and 51a, 56 to 59,61 and 61a of Directive 78/660/EEC shall apply to the institutionsmentioned in Article 2 of this Directive, except where this Directiveprovides otherwise. However, Articles 35(3), 36, 37 and 39(1) to (4)
of this Directive shall not apply with respect to assets and liabilities
that are valued inaccordan ce with Section7a of Directive 78/660/EEC.
2. Where reference is made in Directives 78/660/EEC and 83/349/
EEC to Articles 9, 10 and 10a (balance sheet) or to Articles 22 to 26(profit and loss account) of Directive 78/660/EEC, such references
shall be deemed to be references to Articles 4 and 4a (balance sheet)
or to Articles 26, 27 and 28 (profit and loss account) of this Directive.
3. References in Directives 78/660/EEC and 83/349/EEC to Articles
31 to 42 of Directive 78/660/EEC shall be deemed to be references to
those Articles, taking account of Articles 35 to 39 of this Directive.
4. Where reference is made in the aforementioned provisions of
Directive 78/660/EEC to balance sheet items for which this Directivemakes no equivalent provision, such references shall be deemed to be
references to the items in Article 4 of this Directive which include the
assets and liabilities in question.
Article 2
1. The coordination measures prescribed by this Directive shall
apply to
(a) credit institutions within the meaning of the first indent of Article 1
of Directive 77/780/EEC which are companies or firms as definedinthe secon d paragraph of Article 58 of the Treaty;
(b) financial institutions having one of the legal forms referred to in
Article 1 (1) of Directive 78/660/EEC which, onthe basis of para-graph 2 of that Article, are not subject to that Directive.
For the purposes of this Directive ‘credit institutions’ shall also include
financial institutions unless the context requires otherwise.1986L0635 — EN — 17.07.2003 — 002.001 — 4
▼M2
▼B
▼B
2. The Member States need not apply this Directive to:
(a) the credit institutions listed in Article 2 (2) of Directive 77/780/
EEC;
(b) institutions of the same Member State which, as defined in Article
2 (4) (a) of Directive 77/780/EEC, are affiliated to a central body
inthat Member State. Inthat case, without prejudice to the applica-
tion of this Directive to the central body, the whole constituted bythe central body and its affiliated institutions must be the subject ofconsolidated accounts including an annual report which shall bedrawn up, audited and published in accordance with this Directive;
(c) the following credit institutions:
— in Greece: ETEBA (National Investment Bank for Industrial
Development) and Τράπεζα Επενδύσεων ( Investment Bank),
— in Ireland: Industrial and Provident Societies,
— in the United Kingdom: Friendly Societies and Industrial and
Provident Societies.
4. Without prejudice to Article 2 (3) of Directive 78/660/EEC and
pending subsequent coordination, the Member States may:
(a) in the case of the credit institutions referred to in Article 2 (1) (a)
of this Directive which are not companies of any of the types listedinArticle 1 (1) of Directive 78/660/EEC, lay downrules derogatin gfrom this Directive where derogating rules are necessary because ofsuch institutions' legal form;
(b) in the case of specialized credit institutions, lay down rules dero-
gating from this Directive where derogating rules are necessarybecause of the special nature of such institutions' business.
Such derogating rules may provide only for adaptations to the layout,
nomenclature, terminology and content of items in the balance sheetand the profit and loss account; they may not have the effect of permit-ting the institutions to which they apply to provide less information intheir annual accounts than other institutions subject to this Directive.
The Member States shall inform the Commission of those credit insti-
tutions, possibly by category, within six months of the end of the
period stipulated inArticle 47 (2). They shall in form the Commission
of the derogations laid down to that end.
These derogations shall be reviewed within 10 years of the notification
of this Directive. The Commissionshall, if appropriate, submit suitableproposals. It shall also submit anin terim report withinfive years of thenotification of this Directive.
SECTION 2
GENERAL PROVISIONS CONCERNING THE BALANCE SHEET AND
THEPROFITANDLOSSACCOUNT
Article 3
In the case of credit institutions the possibility of combining items
pursuant to Article 4 (3) (a) or (b) of Directive 78/660/EEC shall berestricted to balance sheet and profit and loss account sub-itemspreceded by lower-case letters and shall be authorized only under the
rules laid downby the Member States to that en d.
SECTION 3
LAYOUTOFTHEBALANCESHEET
Article 4
The Member States shall prescribe the following layout for the balance
sheet. As analtern ative, Member States may permit or require creditinstitutions to adopt the presentation of the balance sheet set out inArticle 4a.1986L0635 — EN — 17.07.2003 — 002.001 — 5
▼M2
▼B
Assets
1. Cash in hand, balances with central banks and post office banks
2. Treasury bills and other bills eligible for refinancing with central
banks:
(a) Treasury bills and similar securities
(b) Other bills eligible for refinancing with central banks (unless
national law prescribes that such bills be shown under Assets
items 3 and 4)
3. Loans and advances to credit institutions:
(a) repayable ondeman d
(b) other loans and advances
4. Loans and advances to customers5. Debt securities including fixed-income securities:
(a) issued by public bodies
(b) issued by other borrowers, showing separately:
— own-debt securities (unless national law requires their
deductionfrom liabilities).
6. Shares and other variable-yield securities7. Participating interests, showing separately:
— participating interests in credit institutions (unless national law
requires their disclosure in the notes on the accounts)
8. Shares in affiliated undertakings, showing separately:
— shares in credit institutions (unless national law requires their
disclosure in the notes on the accounts)
9. Intangible assets as described under Assets headings B and C.I of
Article 9 of Directive 78/660/EEC, showing separately:
— formation expenses, as defined by national law and in so far as
national law permits their being shown as an asset (unless
national law requires their disclosure in the notes on theaccounts)
— goodwill, to the extent that it was acquired for valuable consid-
eration (unless national law requires its disclosure in the notesonthe accoun ts)
10. Tangible assets as described under Assets heading C.II of Article 9
of Directive 78/660/EEC, showing separately:
— land and buildings occupied by a credit institution for its own
activities (unless national law requires their disclosure in the
notes on the accounts)
11. Subscribed capital unpaid, showing separately:
— called-up capital (unless national law provides for called-up
capital to be included under liabilities, in which case capital
called but not yet paid must be included either in this Assets
item or inAssets item 14)
12. Own shares (with an indication of their nominal value or, in the
absence of a nominal value, their accounting par value to theextent that national law permits their being shown in the balancesheet)
13. Other assets
14. Subscribed capital called but not paid (unless national law requires
that called-up capital be shownun der Assets item 11
15. Prepayments and accrued income16. Loss for the financial year (unless national law provides for its
inclusion under Liabilities item 14)
Total assets1986L0635 — EN — 17.07.2003 — 002.001 — 6
▼B
Liabilities
1. Amounts owed to credit institutions:
(a) repayable ondeman d
(b) with agreed maturity dates or periods of notice
2. Amounts owed to customers:
(a) savings deposits, showing separately:
— those repayable on demand and those with agreed maturity
dates or periods of notice where national law provides for
such a breakdown (unless national law provides for suchinformation to be given in the notes on the accounts)
(b) other debts
(ba) repayable ondeman d
(bb) with agreed maturity dates or periods of notice
3. Debts evidenced by certificates:
(a) debt securities inissue
(b) others
4. Other liabilities
5. Accruals and deferred income
6.►
M2Provisions ◄:
(a) provisions for pensions and similar obligations
(b) provisions for taxation
(c) other provisions
7. Profit for the financial year (unless national law provides for its
inclusion under Liabilities item 14)
8. Subordinated liabilities
9. Subscribed capital (unless national law provides, for called-up
capital to be shown under this item. In that case, the amounts of
subscribed capital and paid-up capital must be shown separately)
10. Share premium account
11. Reserves
12. Revaluationreserve
13. Profit or loss brought forward14. Profit or loss for the financial year (unless national law requires
that this item be shownun der Assets item 16 or Liabilities item 7)
Total liabilities
Off-balance sheetitems
1. Contingent liabilities, showing separately:
— acceptances and endorsements
— guarantees and assets pledged as collateral security
2. Commitments, showing separately:
— commitments arising out of sale and repurchase transactions
Article 4a
Instead of the presentation of balance sheet items in accordance with
Article 4, Member States may permit or require credit institutions, or
certain classes of credit institution, to present those items classified bytheir nature and in order of their relative liquidity provided that theinformation given is at least equivalent to that otherwise required byArticle 4.1986L0635 — EN — 17.07.2003 — 002.001 — 7
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Article 5
The following must be shown separately as sub-items of the items in
question:
— claims, whether or not evidenced by certificates, on affiliated
undertakings and included in Assets items 2 to 5,
— claims, whether or not evidenced by certificates, on undertakings
with which a credit institution is linked by virtue of a participating
interest and included in Assets items 2 to 5,
— liabilities, whether or not evidenced by certificates, to affiliated
undertakings and included in Liabilities items 1, 2, 3 and 8.
— liabilities, whether or not evidenced by certificates, to undertakings
with which a credit institution is linked by virtue of a participatinginterest and included in Liabilities items 1, 2, 3 and 8.
Article 6
1. Subordinated assets shall be shown separately as sub-items of the
items of the layout and the sub-items created in accordance withArticle 5.
2. Assets, whether or not evidenced by certificates, are subordinated
if, in the event of winding up or bankruptcy, they are to be repaid onlyafter the claims of other creditors have beenmet.
Article 7
The Member States may permit the disclosure of the information
referred to in Articles 5 and 6, duly broken down into the various rele-
vant items, in the notes on the accounts.
Article 8
1. Assets shall be shown under the relevant balance sheet headings
even where the credit institution drawing up the balance sheet haspledged them as security for its ownliabilities or for those of thirdparties or has otherwise assigned them as security to third parties.
2. A credit institution shall not include in its balance sheet assets
pledged or otherwise assigned to it as security unless such assets are
in the form of cash in the hands of that credit institution.
Article 9
1. Where a loan has been granted by a syndicate consisting of a
number of credit institutions, each credit institution participating inthe syndicate shall disclose only that part of the total loan which ithas itself funded.
2. If inthe case of a syn dicated loansuch as described inparagraph
1 the amount of funds guaranteed by a credit institution exceeds theamount which it has made available, any additional guarantee portionshall be shown as a contingent liability (in Off-balance sheet item 1,second indent).
Article 10
1. Funds which a credit institution administers in its own name but
onbehalf of third parties must be showninthe balan ce sheet if the
credit institution acquires legal title to the assets concerned. The totalamount of such assets and liabilities shall be shown separately or inthe notes on the accounts, broken down according to the various Assetsand Liabilities items. However, the Member States may permit the
disclosure of such funds off the balance sheet provided there are
special rules whereby such funds can be excluded from the assets avail-able for distribution in the event of the winding-up of a creditinstitution (or similar proceedings).
2. Assets acquired in the name of and on behalf of third parties must
not be shown in the balance sheet.1986L0635 — EN — 17.07.2003 — 002.001 — 8
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Article 11
Only those amounts which can at any time be withdrawn without
notice or for which a maturity or period of notice of 24 hours or oneworking day has been agreed shall be regarded as repayable on
demand.
Article 12
1. Sale and repurchase transactions shall mean transactions which
involve the transfer by a credit institution or customer (the ‘transferor’)
to another credit institution or customer (the ‘transferee’) of assets, for
example, bills, debts or transferable securities, subject to an agreementthat the same assets will subsequently be transferred back to the trans-feror at a specified price.
2. If the transferee undertakes to return the assets on a date specified
or to be specified by the transferor, the transaction in question shall bedeemed to be a genuine sale and repurchase transaction.
3. If, however, the transferee is merely entitled to return the assets at
the purchase price or for a different amount agreed in advance on a
date specified or to be specified, the transaction in question shall be
deemed to be a sale with anoptionto repurchase.
4. In the case of the sale and repurchase transactions referred to in
paragraph 2, the assets transferred shall continue to appear in the trans-feror's balance sheet; the purchase price received by the transferor shallbe shown as an amount owed to the transferee. In addition, the value ofthe assets transferred shall be disclosed in a note in the transferor'saccounts. The transferee shall not be entitled to show the assets trans-
ferred in his balance sheet; the purchase price paid by the transferee
shall be shown as an amount owed by the transferor.
5. In the case of the sale and repurchase transactions referred to in
paragraph 3, however, the transferor shall not be entitled to show in hisbalance sheet the assets transferred; those items shall be shown asassets in the transferee's balance sheet. The transferor shall enter underOff-balance sheet item 2 an amount equal to the price agreed in the
event of repurchase.
6. No forward exchange transactions, options, transactions involving
the issue of debt securities with a commitment to repurchase all or partof the issue before maturity of any similar transactions shall beregarded as sale and repurchase transactions within the meaning ofthis Article.
SECTION 4
SPECIAL PROVISIONS RELATING TO CERTAIN BALANCE SHEET
ITEMS
Article 13
Assets: Item 1 — Cash in hand, balances with central banks and
postoffice banks
1. Cash in hand shall comprise legal tender including foreign notes
and coins.
2. This item may include only balances with the central banks and
post office banks of the country or countries in which a credit institu-tionis established. Such balan ces must be readily available at all times.Other claims on such bodies must be shown as loans and advances tocredit institutions (Assets item 3) or as loans and advances to custo-
mers (Assets item 4).
Article 14
Assets:Item2—Treasurybillsandotherbillseligibleforrefinan-
cingwithcentral banks
1. This item shall comprise, under (a), treasury bills and similar
securities, i. e. treasury bills, treasury certificates and similar debt1986L0635 — EN — 17.07.2003 — 002.001 — 9
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instruments issued by public bodies which are eligible for refinancing
with the central banks of the country or countries in which a creditinstitution is established. Those debt instruments issued by public
bodies which fail to meet the above condition shall be shown under
Assets sub-item 5 (a).
2. This item shall comprise, under (b), bills eligible for refinancing
with central banks, i.e. all bills held in portfolio that were purchasedfrom credit institutions or from customers to the extent that they areeligible, under national law, for refinancing with the central banks of
the country or countries in which a credit institution is established.
Article 15
Assets:Item3—Loansandadvancestocreditinstitutions1. Loans and advances to credit institutions shall comprise all loans
and advances arising out of banking transactions to domestic or foreigncredit institutions by the credit institution drawing up the balance sheet,regardless of their actual designations.
The only exception shall be loans and advances represented by debt
securities or any other security, which must be shown under Assets
item 5.
2. For the purposes of this Article credit institutions shall comprise
all undertakings on the list published in the Official Journal of the
European Communities pursuant to Article 3 (7) of Directive 77/780/
EEC, as well as central banks and official domestic and internationalbanking organizations and all private and public undertakings whichare not established in the Community but which satisfy the definition
inArticle 1 of Directive 77/780/EEC.
Loans and advances to undertakings which do not satisfy the above
conditions shall be shown under Assets item 4.
Article 16
Assets:Item4—LoansandadvancestocustomersLoans and advances to customers shall comprise all types of assets in
the form of claims ondomestic an d foreigncustomers other thancreditinstitutions, regardless of their actual designations.
The only exception shall be loans and advances represented by debt
securities or any other security, which must be shown under Assets
item 5.
Article 17
Assets:Item5—Debtsecurities includingfixed-income securities1. This item shall comprise negotiable debt securities including
fixed-income securities issued by credit institutions, by other undertak-ings or by public bodies; such securities issued by the latter, however,shall be included only if they are not to be shown under Assets item 2.
2. Securities bearing interest rates that vary in accordance with
specific factors, for example the interest rate on the inter-bank market
or onthe Euromarket, shall also be regarded as debt securities
including fixed-income securities.
3. Only repurchased and negotiable own-debt securities may be
included in sub-item 5 (b).
Article 18
Liabilities: Item1—Amountsowedtocreditinstitutions1. Amounts owed to credit institutions shall include all amounts
arising out of banking transactions owed to other domestic or foreigncredit institutions by the credit institution drawing up the balance sheet,regardless of their actual designations.1986L0635 — EN — 17.07.2003 — 002.001 — 10
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The only exception shall be liabilities represented by debt securities or
by any other security, which must be shown under Liabilities item 3.
2. For the purposes of this Article credit institutions shall comprise
all undertakings on the list published in the Official Journal of the
European Communities pursuant to Article 3 (7) of Directive 77/780/
EEC, as well as central banks and official domestic and internationalbanking organizations and all private and public undertakings whichare not established in the Community but which satisfy the definition
inArticle 1 of Directive 77/780/EEC.
Article 19
Liabilities: Item2—Amountsowedtocustomers1. Amounts owed to customers shall include all amounts owed to
creditors that are not credit institutions within the meaning of Article18, regardless of their actual designations.
The only exception shall be liabilities represented by debt securities or
by any other security, which must be shown under Liabilities item 3.
2. Only deposits which satisfy the conditions laid down in national
law shall be treated as savings deposits.
3. Savings bonds shall be shown under the corresponding sub-item
only if they are not represented by negotiable certificates.
Article 20
Liabilities: Item3—Debtsevidenced bycertificates1. This item shall include both debt securities and debts for which
negotiable certificates have been issued, in particular deposit receipts,
‘bons de caisse’ and liabilities arising out of own acceptances and
promissory notes.
2. Only acceptances which a credit institution has issued for ist own
refinancing and in respect of which it is the first party liable (‘drawee’)shall be treated as ownacceptan ces.
Article 21
Liabilities: Item8—Subordinatedliabilities
Where it has been contractually agreed that, in the event of winding up
or of bankruptcy, liabilities, whether or not evidenced by certificates,are to be repaid only after the claims of all other creditors have beenmet, the liabilities inquestionshall be shownun der this item.
Article 22
Liabilities: Item9—Subscribedcapital
This item shall comprise all amounts, regardless of their actual desig-
nations, which, in accordance with the legal structure of the institutionconcerned, are regarded under national law as equity capital subscribedby the shareholders or other proprietors.
Article 23
Liabilities: Item11—ReservesThis item shall comprise all the types of reserves listed inArticle 9 of
Directive 78/660/EEC under Liabilities item A.IV, as defined therein.The Member States may also prescribe other types of reserves if neces-sary for credit institutions the legal structures of which are not covered
by Directive 78/660/EEC.
The types of reserve referred to inthe first paragraph shall be shown
separately, as sub-items of Liabilities item 11, inthe balan ce sheets ofthe credit institutions concerned, with the exception of the revaluationreserve which shall be shownun der item 12.1986L0635 — EN — 17.07.2003 — 002.001 — 11
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Article 24
Off-balancesheet:Item1—Contingentliabilities
This item shall comprise all transactions whereby an institution has
underwritten the obligations of a third party.
Notes on accounts shall state the nature and amount of any type of
contingent liability which is material in relation to an institution's activ-
ities.
Liabilities arising out of the endorsement of rediscounted bills shall be
included in this item only if national law does not require otherwise.
The same shall apply to acceptances other than own acceptances.
Sureties and assets pledged as collateral security shall include all guar-
antee obligations incurred and assets pledged as collateral security onbehalf of third parties, particularly inrespect of sureties an d irrevocableletters of credit.
Article 25
Off-balancesheet:Item2—CommitmentsThis item shall include every irrevocable commitment which could
give rise to a risk.
Notes on accounts shall state the nature and amount of any type of
commitment which is material in relation to an institution's activities.
Commitments arising out of sale and repurchase transactions shall
include commitments entered into by a credit institution in the contextof sale and repurchase transactions (on the basis of firm agreements tosell with options to repurchase) within the meaning of Article 12 (3).
SECTION 5
LAYOUTOFTHEPROFITANDLOSSACCOUNT
Article 26
For the presentation of the profit and loss account, the Member States
shall prescribe one or both of the layouts provided for in Articles 27and 28. If a Member State prescribes both layouts it may allow under-takings to choose between them.
By way of derogationfrom Article 2(1) of Directive 78/660/EEC,
Member States may permit or require all credit institutions, or any
classes of credit institution, to present a statement of their performance
instead of the presentation of profit and loss items in accordance withArticles 27 or 28, provided that the information given is at leastequivalent to that otherwise required by those Articles.
Article 27
Vertical layout
1. Interest receivable and similar income, showing separately that
arising from fixed-income securities
2. Interest payable and similar charges
3. Income from securities:
(a) Income from shares and other variable-yield securities
(b) Income from participating interests
(c) Income from shares in affiliated undertakings
4. Commissions receivable5. Commissions payable6. Net profit or net loss on financial operations
7. Other operating income1986L0635 — EN — 17.07.2003 — 002.001 — 12
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8. General administrative expenses:
(a) Staff costs, showing separately:
— wages and salaries
— social security costs, with a separate indication of those
relating to pensions
(b) Other administrative expenses
9. Value adjustments in respect of Assets items 9 and 10
10. Other operating charges
11. Value adjustments in respect of loans and advances and provisions
for contingent liabilities and for commitments
12. Value re-adjustments in respect of loans and advances and provi-
sions for contingent liabilities and for commitments
13. Value adjustments in respect of transferable securities held as
financial fixed assets, participating interests and shares in affiliated
undertakings
14. Value re-adjustments in respect of transferable securities held as
financial fixed assets, participating interests and shares in affiliatedundertakings
15. Tax onprofit or loss onordin ary activities16. Profit or loss onordin ary activities after tax17. Extraordinary income18. Extraordinary charges
19. Extraordinary profit or loss
20. Tax onextraordin ary profit or loss21. Extraordinary profit or loss after tax22. Other taxes not shown under the preceeding items23. Profit or loss for the financial year
Article 28
Horizontal layout
A.Charges
1. Interest payable and similar charges2. Commissions payable3. Net loss on financial operations4. General administrative expenses:
(a) Staff costs, showing separately:
— wages and salaries
— social security costs, with a separate indication of those
relating to pensions
(b) Other administrative expenses
5. Value adjustments in respect of Assets items 9 and 106. Other operating charges7. Value adjustments in respect of loans and advances and provi-
sions for contingent liabilities and for commitments
8. Value adjustments in respect of transferable securities held as
financial fixed assets, participating interests and shares inaffiliated undertakings
9. Tax onprofit or loss onordin ary activities
10. Profit or loss onordin ary activities after tax11. Extraordinary charges12. Tax onextraordin ary profit or loss13. Extraordinary loss after tax
14. Other taxes not shown under the preceding items1986L0635 — EN — 17.07.2003 — 002.001 — 13
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15. Profit for the financial year
B.Income
1. Interest receivable and similar income, showing separately that
arising from fixed-income securities
2. Income from securities:
(a) Income from shares and other variable-yield securities
(b) Income from participating interests
(c) Income from shares in affiliated undertakings
3. Commissions receivable4. Net profit on financial operations5. Value re-adjustments in respect of loans and advances and
provisions for contingent liabilities and for commitments
6. Value re-adjustments in respect of transferable securities held
as financial fixed assets, participating interests and shares inaffiliated undertakings
7. Other operating income8. Profit or loss onordin ary activities after tax9. Extraordinary income
10. Extraordinary profit after tax11. Loss for the financial year
SECTION 6
SPECIAL PROVISIONS RELATING TO CERTAIN ITEMS IN THE
PROFITANDLOSSACCOUNT
Article 29
Article 27, items 1 and 2 (vertical layout)
Article 28, items A 1 and B 1 (horizontal layout)
Interest receivable and similar income and interest payable and
similar charges.
These items shall include all profits and losses arising out of banking
activities, including:
(1) all income from assets entered under Assets items 1 to 5 in the
balance sheet, however calculated. Such income shall also include
income arising from the spreading on a time basis of the discounton assets acquired at an amount below, and liabilities contracted atanamoun t above, the sum payable at maturity;
(2) all charges arising out of liabilities entered under Liabilities items
1, 2, 3 and 8, however calculated. Such charges shall also include
charges arising from the spreading on a time basis of the premium
on assets acquired at an amount above, and liabilities contracted atanamoun t below, the sum payable at maturity;
(3) income and charges resulting from covered forward contracts,
spread over the actual duration of the contract and similar in natureto interest;
(4) fees and commission similar in nature to interest and calculated on
a time basis or by reference to the amount of the claim or liability.
Article 30
Article 27, item 3 (vertical layout)
Article 28, item B 2 (horizontal layout)1986L0635 — EN — 17.07.2003 — 002.001 — 14
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Incomefromsharesandothervariable-yield securities,fromparti-
cipatinginterests,andfromsharesinaffiliated undertakings
This item shall comprise all dividends and other income from variable-
yield securities, from participating interests and from shares inaffiliated undertakings. Income from shares in investment companiesshall also be included under this item.
Article 31
Article 27, items 4 and 5 (vertical layout)
Article 28, items A 2 and B 3 (horizontal layout)
Commissionsreceivable andcommissionspayable
Without prejudice to Article 29, commissions receivable shall include
income in respect of all services supplied to third parties, and commis-
sions payable shall include charges for services rendered by third
parties, inparticular
— commissions for guarantees, loans administration on behalf of other
lenders and securities transactions on behalf of third parties,
— commissions and other charges and income in respect of payment
transactions, account administration charges and commissions for
the safe custody and administration of securities,
— commissions for foreign currency transactions and for the sale and
purchase of coinan d precious metals onbehalf of third parties,
— commissions charged for brokerage services in connection with
savings and insurance contracts and loans.
Article 32
Article 27, item 6 (vertical layout)Article 28, item A 3 or item B 4 (horizontal layout)
Netprofitornetlossonfinancialoperations.
This item covers:
1. the net profit or loss on transactions in securities which are not held
as financial fixed assets together with value adjustments and value
re-adjustments on such securities, taking into account, where Article
36 (2) has been applied, the difference resulting from application ofthat article; however, inthose Member States which exercise theoption provided for in Article 37, these net profits or losses andvalue adjustments and value re-adjustments shall be included only
in so far as they relate to securities included in a trading portfolio;
2. the net profit or loss on exchange activities, without prejudice to
Article 29, point 3;
3. the net profits and losses on other buying and selling operations
involving financial instruments, including precious metals.
Article 33
Article 27, items 11 and 12 (vertical layout)Article 28, items A 7 and B 5 (horizontal layout)
Valueadjustmentsinrespect ofloansandadvancesandprovisions
forcontingentliabilities andforcommitments
Value re-adjustments in respect of loans and advances and provi-
sionsforcontingentliabilities andforcommitments.
1. These items shall include, on the one hand, charges for value
adjustments in respect of loans and advances to be shown under Assetsitems 3 and 4 and provisions for contingent liabilities and for commit-ments to be shown under Off-balance sheet items 1 and 2 and, on theother hand, credits from the recovery of written-off loans and advances1986L0635 — EN — 17.07.2003 — 002.001 — 15
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and amounts written back following earlier value adjustments and
provisions.
2. Inthose Member States which exercise the optionprovided for in
Article 37, this item shall also include the net profit or loss on transac-tions in securities included in Assets items 5 and 6 which are neitherheld as financial fixed assets as defined in Article 35 (2) nor included
in a trading portfolio, together with value adjustments and value re-
adjustments on such securities taking into account, where Article 36(2) has been applied, the difference resulting from application of thatarticle. The nomenclature of this item shall be adapted accordingly.
3. The Member States may permit the charges and income covered
by these items to be set off against each other, so that only a net item(income or charge) is shown.
4. Value adjustments in respect of loans and advances to credit insti-
tutions, to customers, to undertakings with which a credit institution islinked by virtue of participating interests and to affiliated undertakingsshall be shown separately in the notes on the accounts where they are
material. This provision need not be applied if a Member State permits
setting-off pursuant to paragraph 3.
Article 34
Article 27, items 13 and 14 (vertical layout)
Article 28, items A 8 and B 5 (horizontal layout)
Value adjustments in respect of transferable securities held as
financialfixedassets,participatinginterestsandsharesinaffiliatedundertakings
Value re-adjustments in respect of transferable securities held as
financialfixedassets,participatinginterestsandsharesinaffiliatedundertakings.
1. These items shall include, on the one hand, charges for value
adjustments in respect of assets shown in Assets items 5 to 8 and, onthe other hand, all the amounts written back following earlier valueadjustments, in so far as the charges and income relate to transferablesecurities held as financial fixed assets as defined in Article 35 (2),
participating interests and shares in affiliated undertakings.
2. The Member States may permit the charges and income covered
by these items to be set off against each other, so that only a net item
(income or charge) is shown.
3. Value adjustments in respect of these transferable securities, parti-
cipating interests and shares in affiliated undertakings shall be shown
separately in the notes on the accounts where they are material. This
provision need not be applied if a Member State permits setting offpursuant to paragraph 2.
SECTION 7
VALUATIONRULES
Article 35
1. Assets items 9 and 10 must always be valued as fixed assets. The
assets included in other balance sheet items shall be valued as fixedassets where they are intended for use on a continuing basis in thenormal course of an undertakings's activities.
2. Where reference is made to financial fixed assets in Section 7 of
Directive 78/660/EEC, this term shall in the case of credit institutionsbe taken to mean participating interests, shares in affiliated undertak-ings and securities intended for use on a continuing basis in the
normal course of an undertaking's activities.
3. (a) Debt securities including fixed-income securities held as finan-
cial fixed assets shall be showninthe balan ce sheet at1986L0635 — EN — 17.07.2003 — 002.001 — 16
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purchase price. The Member States may, however, require or
permit such debt securities to be showninthe balan ce sheet atthe amount repayable at maturity.
(b) Where the purchase price of such debt securities exceeds the
amount repayable at maturity the amount of the difference mustbe charged to the profit and loss account. The Member Statesmay, however, require or permit the amount of the difference
to be written off in instalments so that it is completely written
off by the time whenthe debt securities are repaid. The differ-ence must be shown separately in the balance sheet or in thenotes on the accounts.
(c) Where the purchase price of such debt securities is less thanthe
amount repayable at maturity, the Member States may require orpermit the amount of the difference to be released to income ininstalments over the period remaining until repayment. Thedifference must be shown separately in the balance sheet or inthe notes on the accounts.
Article 36
1. Where transferable securities which are not held as financial fixed
assets are shown, in the balance sheet at purchase price, credit institu-
tions shall disclose in the notes on their accounts the differencebetween the purchase price and the higher market value of the balancesheet date.
2. The Member States may, however, require or permit those trans-
ferable securities to be showninthe balan ce sheet at the higher marketvalue at the balance sheet date. The difference between the purchase
price and the higher market value shall be disclosed in the notes on
the accounts.
Article 37
1. Article 39 of Directive 78/660/EEC shall apply to the valuationof
credit institutions' loans and advances, debt securities, shares and othervariable-yield securities which are not held as financial fixed assets.
2. Pending subsequent coordination, however, the Member States
may permit:
(a) loans and advances to credit institutions and customers (Assets
items 3 and 4) and debt securities, shares and other variable-yield
securities included in Assets items 5 and 6 which are neither held
as financial fixed assets as defined in Article 35 (2) nor included ina trading portfolio to be shown at a value lower than that whichwould result from the applicationof Article 39 (1) of Directive78/660/EEC, where that is required by the prudence dictated by
the particular risks associated with banking. Nevertheless, the
difference between the two values must not be more than 4 % ofthe total amount of the assets mentioned above after application ofthe aforementioned Article 39;
(b) that the lower value resulting from the application of subparagraph
(a) be maintained until the credit institution decides to adjust it;
(c) where a Member State exercises the optionprovided for insubpar-
agraph (a), neither Article 36 (1) of this Directive nor Article 40(2) of Directive 78/660/EEC shall apply.
Article 38
1. Pending subsequent coordination, those Member States which
exercise the optionprovided for inArticle 37 must permit an d those
Member States which do not exercise that option may permit the intro-duction of a Liabilities item 6A entitled ‘Fund for general bankingrisks’. That item shall include those amounts which a credit institutiondecides to put aside to cover such risks where that is required by theparticular risks associated with banking.1986L0635 — EN — 17.07.2003 — 002.001 — 17
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2. The net balance of the increases and decreases of the ‘Fund for
general banking risks’ must be shown separately in the profit and lossaccount.
Article 39
1. Assets and liabilities denominated in foreign currency shall be
translated at the spot rate of exchange ruling on the balance sheetdate. The Member States my, however, require or permit assets heldas financial fixed assets and tangible and intangible assets, not coveredor not specifically covered in either the spot or forward markets, to betranslated at the rates ruling on the dates of their acquisition.
2. Uncompleted forward and spot exchange transactions shall be
translated at the spot rates of exchange ruling on the balance sheetdate.
The Member States may, however, require forward transactions to be
translated at the forward rate ruling on the balance sheet date.
3. Without prejudice to Article 29 (3), the differences between the
book values of the assets, liabilities and forward transactions and the
amounts produced by translation in accordance with paragraphs 1 and
2 shall be shown in the profit and loss account. The Member Statesmay, however, require or permit differences produced by translationin accordance with paragraphs 1 and 2 to be included, in whole or inpart, in reserves not available for distribution, where they arise on
assets held as financial fixed assets, on tangible and intangible assets
and on any transactions undertaken to cover those assets.
4. The Member States may provide that positive translation differ-
ences arising out of forward transactions, assets or liabilities notcovered or not specifically covered by other forward transactions, orby assets or liabilities shall not be shown in the profit and loss account.
5. If a method specified inArticle 59 of Directive 78/660/EEC is
used, the Member States may provide that any translation differences
shall be tran sferred, inwhole or inpart, directly to reserves. Positiveand negative translation differences transferred to reserves shall beshown separately in the balance sheet or in the notes on the accounts.
6. The Member States may require or permit translation differences
arising on consolidation out of the retranslation of an affiliated under-
taking's capital and reserves or the share of a participating interest's
capital and reserves at the beginning of the accounting period to bein cluded, inwhole or inpart, incon solidated reserves, together withthe translation differences arising on the translation of any transactionsundertaken to cover that capital and those reserves.
7. The Member States may require or permit the income and expen-
diture of affiliated undertakings and participating interests to be
translated on consolidation at the average rates of exchange rulingduring the accounting period.
SECTION 8
CONTENTSOFTHENOTESONTHEACCOUNTS
Article 40
1. Article 43 (1) of Directive 78/660/EEC shall apply, subject to
Article 37 of this Directive and to the following provisions.
2. In addition to the information required under Article 43 (1) (5) of
Directive 78/660/EEC, credit institutions shall disclose the followinginformation relating to Liabilities item 8 (Subordinated liabilities):
(a) inrespect of each borrowin g which exceeds 10 % of the total
amount of the subordinated liabilities:
(i) the amount of the borrowing, the currency in which it is
denominated, the rate of interest and the maturity date or thefact that it is a perpetual issue;1986L0635 — EN — 17.07.2003 — 002.001 — 18
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(ii) whether there are any circumstances in which early repayment
is required;
(iii) the terms of the subordination, the existence of any provisions
to convert the subordinated liability into capital or some otherform of liability and the terms of any such provisions.
(b) an overall indication of the rules governing other borrowings.
3. (a) In place of the information required under Article 43 (1) (6) of
Directive 78/660/EEC, credit institutions shall in the notes ontheir accounts state separately for each of the Assets items 3(b) and 4 and the Liabilities items 1 (b), 2 (a), 2 (b) (bb) and 3(b) the amounts of those loans and advances and liabilities on
the basis of their remaining maturity as follows:
— not more than three months,
— more than three months but not more than one year,
— more than one year but not more than five years,
— more thanfive years.
For Assets item 4, loans and advances on call and at short notice
must also be shown.
If loans and advances or liabilities involve payment by instal-
ments, the remaining maturity shall be the period between the
balance sheet date and the date on which each instalment falls
due.
However, for five years after the date referred to inArticle 47
(2) the Member States may require or permit the listing bymaturity of the assets and liabilities referred to in this Articleto be based on the originally agreed maturity or period of notice.In that event, where a credit institution has acquired an existing
loan not evidenced by a certificate, the Member States shall
require classification of that loan to be based on the remainingmaturity as at the date onwhich it was acquired. For thepurposes of this subparagraph, the originally agreed maturityfor loans shall be the period between the date of first drawing
and the date of repayment; the period of notice shall be deemed
to be the period between the date on which notice is given andthe date on which repayment is to be made; if loans andadvances or liabilities are redeemable by instalments, the agreedmaturity shall be the period betweenthe date onwhich suchloans and advances or liabilities arose and the date on which
the last instalment falls due. Credit institutions shall also indi-
cate for the balance sheet items referred to in this subparagraphwhat proportionof those assets an d liabilities will become duewithin one year of the balance sheet date.
(b) Credit institutions shall, in respect of Assets item 5 (Debt secu-
rities including fixed-income securities) and Liabilities item 3
(a) (Debt securities inissue), in dicate what proportionof assets
and liabilities will become due within one year of the balancesheet date.
(c) The Member States may require the information referred to in
subparagraphs (a) and (b) to be given in the balance sheet.
(d) Credit institutions shall give particulars of the assets which they
have pledged as security for their ownliabilities or for those of
third parties (including contingent liabilities); the particulars
should be in sufficient detail to indicate for each Liabilitiesitem and for each Off-balance sheet item the total amount ofthe assets pledged as security.
4. Where credit institutions have to provide the information referred
to inArticle 43 (1) (7) of Directive 78/660/EEC inOff-balan ce sheetitems, such information need not be repeated in the notes on theaccounts.
5. In place of the information required under Article 43 (1) (8) of
Directive 78/660/EEC, a credit institution shall indicate in the noteson its accounts the proportion of its income relating to items 1, 3, 4,6 and 7 of Article 27 or to items B 1, B 2, B 3, B 4 and B 7 of Article1986L0635 — EN — 17.07.2003 — 002.001 — 19
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28 by geographical markets, in so far as, taking account of the manner
in which the credit institution is organized, those markets differsubstantially from one another. Article 45 (1) (b) of Directive 78/660/
EEC shall apply.
6. The reference in Article 43 (1) (9) of Directive 78/660/EEC to
Article 23 (6) of that Directive shall be deemed to be a reference toArticle 27 (8) or Article 28 (A 4) of this Directive.
7. By way of derogationfrom Article 43 (1) (13) of Directive 78/
660/EEC, credit institutions need disclose only the amounts ofadvances and credits granted to the members of their administrative,managerial and supervisory bodies, and the commitments entered into
on their behalf by way of guarantees of any kind. That information
must be giveninthe form of a total for each category.
Article 41
1. The information prescribed in Article 15 (3) of Directive 78/660/
EEC must be giveninrespect of assets held as fixed assets as defin ed
inArticle 35 of this Directive. The obligationto show value adjust-
ments separately shall not, however, apply where a Member State haspermitted set-offs between value adjustments pursuant to Article 34 (2)of this Directive. In that event value adjustments may be combinedwith other items.
2. The Member States shall require credit institutions to give the
following information as well in the notes on their accounts:
(a) a breakdown of the transferable securities shown under Assets
items 5 to 8 into listed and unlisted securities;
(b) a breakdown of the transferable securities shown under Assets
items 5 and 6 into securities which, pursuant to Article 35, are or
are not held as financial fixed assets and the criterion used to
distinguish between the two categories of transferable securities;
(c) the value of leasing transactions, apportioned between the relevant
balance sheet items;
(d) a breakdownof Assets item 13, Liabilities item 4, items 10 an d 18
in the vertical layout or A 6 and A 11 in the horizontal layout anditems 7 and 17 in the vertical layout or B 7 and B 9 in the hori-zontal layout in the profit and loss account into their maincomponent amounts, where such amounts are important for thepurpose of assessing the annual accounts, as well as explanations
of their nature and amount;
(e) the charges paid on account of subordinated liabilities by a credit
institution in the year under review;
(f) the fact that an institution provides management and agency
services to third parties where the scale of business of that kind is
material in relation to the institution's activities as a whole;
(g) the aggregate amounts of assets and of liabilities denominated in
foreign currencies, translated into the currency in which the annualaccounts are drawn up;
(h) a statement of the types of unmatured forward transactions
outstanding at the balance sheet date indicating, in particular, foreach type of transaction, whether they are made to a material extentfor the purpose of hedging the effects of fluctuations in interestrates, exchange rates and market prices, and whether they are
made to a material extent for dealing purposes. These types of
transaction shall include all those in connection with which theincome or expenditure is to be included in Article 27, item 6,Article 28, items A 3 or B 4 or Article 29 (3), for example, foreigncurrencies, precious metals, transferable securities, certificates ofdeposit and other assets.1986L0635 — EN — 17.07.2003 — 002.001 — 20
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SECTION 9
PROVISIONSRELATINGTOCONSOLIDATEDACCOUNTS
Article 42
1. Credit institutions shall draw up consolidated accounts and conso-
lidated annual reports in accordance with Directive 83/349/EEC, in so
far as this sectiondoes n ot provide otherwise.
2. Insofar as a Member State does not have recourse to Article 5 of
Directive 83/349/EEC, paragraph 1 of this Article shall also apply to
parent undertakings the sole object of which is to acquire holdings in
subsidiary undertakings and to manage such holdings and turn them toprofit, where those subsidiary undertakings are either exclusively ormainly credit institutions.
Article 43
1. Directive 83/349/EEC shall apply, subject to Article 1 of this
Directive and paragraph 2 of this Article.
2. (a) Articles 4, 6, 15 and 40 of Directive 83/349/EEC shall not
apply.
(b) The Member States may make applicationof Article 7 of Direc-
tive 83/349/EEC subject to the following additional conditions:
— the parent undertaking must have declared that it guarantees
the commitments entered into by the exempted undertaking;the existence of that declaration shall be disclosed in the
accounts of the exempted undertaking;
— the parent undertaking must be a credit institution within the
meaning of Article 2 (1) (a) of this Directive.
(c) The information referred to in the first two indents of Article 9
(2) of Directive 83/349/EEC, namely:
— the amount of the fixed assets and
— the net turnover
shall be replaced by:
— the sum of items 1, 3, 4, 6 and 7 in Article 27 or B 1, B 2, B
3, B 4 and B 7 in Article 28 of this Directive.
(d) Where, as a result of applying Article 13 (3) (c) of Directive 83/
349/EEC, a subsidiary undertaking which is a credit institution
is not included in consolidated accounts but where the sharesof that undertaking are temporarily held as a result of a financialassistance operation with a view to the reorganization or rescueof the undertaking in question, the annual accounts of thatundertaking shall be attached to the consolidated accounts and
additional information shall be given in the notes on the
accounts concerning the nature and terms of the financial assis-tance operation.
(e) A Member State may also apply Article 12 of Directive 83/349/
EEC to two or more credit institutions which are not connectedas described inArticle 1 (1) or (2) of that Directive but aremanaged on a unified basis other than pursuant to a contract orprovisions in the memorandum or articles of association.
(g) For the purposes of the layout of consolidated accounts:
— Articles 3, 5 to 26 and 29 to 34 of this Directive shall apply;
— the reference in Article 17 of Directive 83/349/EEC to
Article 15 (3) of Directive 78/660/EEC shall apply to theassets deemed to be fixed assets pursuant to Article 35 ofthis Directive.
(h) Article 34 of Directive 83/349/EEC shall apply inrespect of the
contents of the notes on consolidated accounts, subject to Arti-cles 40 and 41 of this Directive.1986L0635 — EN — 17.07.2003 — 002.001 — 21
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SECTION 10
PUBLICATION
Article 44
1. The duly approved annual accounts of credit institutions, together
with the annual reports and the reports by the persons responsible forauditing the accounts shall be published as laid down by national law
inaccordan ce with Article 3 of Directive 68/151/EEC (
1).
National law may, however, permit the annual report not to be
published as stipulated above. Inthat case, it shall be made available
to the public at the company's registered office in the Member State
concerned. It must be possible to obtain a copy of all or part of anysuch report onrequest. The price of such a copy must n ot exceed itsadministrative cost.
2. Paragraph 1 shall also apply to the duly approved consolidated
accounts, the consolidated annual reports and the reports by the personsresponsible for auditing the accounts.
3. However, where a credit institution which has drawn up annual
accounts or consolidated accounts is not established as one of the typesof company listed in Article 1 (1) of Directive 78/660/EEC and is notrequired by its national law to publish the documents referred to inparagraphs 1 and 2 of this Article as prescribed in Article 3 of Direc-
tive 68/151/EEC, it must at least make them available to the public at
its registered office or, in the absence of a registered office, at its prin-cipal place of business. It must be possible to obtain copies of suchdocuments on request. The prices of such copies must not exceed theiradministrative cost.
4. The annual accounts and consolidated accounts of a credit institu-
tionmust be published inevery Member State inwhich that creditinstitution has branches within the meaning of the third indent ofArticle 1 of Directive 77/780/EEC. Such Member States may require
that those documents be published in their official languages.
5. The Member States shall provide for appropriate sanctions for
failure to comply with the publicationrules referred to inthis Article.
SECTION 11
AUDITING
Article 45
A Member State need not apply Article 2 (1) (b) (iii) of Directive 84/
253/EEC (2) to public savings banks where the statutory auditing of the
documents of those undertakings referred to in Article 1 (1) of that
Directive is reserved to an existing supervisory body for those savings
banks at the time of the entry into force of this Directive and where theperson responsible complies at least with the conditions laid down inArticle 3 to 9 of Directive 84/253/EEC.
SECTION 12
FINALPROVISIONS
Article 46
The Contact Committee established in accordance with Article 52 of
Directive 78/660/EEC shall, when meeting as constituted appropriately,also have the following functions:
(a) to facilitate, without prejudice to Articles 169 and 170 of the
Treaty, harmonized application of this Directive through regular1986L0635 — EN — 17.07.2003 — 002.001 — 22
(1) OJ No L 65, 14. 3. 1968, p. 8.
(2) OJ No L 126, 12. 5. 1984, p. 20.
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meetings dealing in particular with practical problems arising in
connection with its application;
(b) to advise the Commission, if necessary, on additions or amend-
ments to this Directive.
Article 47
1. The Member States shall bring into force the laws, regulations
and administrative provisions necessary for them to comply with thisDirective by 31 December 1990. They shall forthwith inform theCommissionthereof.
2. A Member State may provide that the provisions referred to in
paragraph 1 shall first apply to annual accounts and consolidated
accounts for financial years beginning on 1 January 1993 or duringthe calendar year 1993.
3. The Member States shall communicate to the Commission the
texts of the main provisions of national law which they adopt in thefield governed by this Directive.
Article 48
Five years after the date referred to inArticle 47 (2), the Coun cil,
acting on a proposal from the Commission, shall examine and if needbe revise all those provisions of this Directive which provide for
Member State options, together with Articles 2 (1), 27, 28 and 41, in
the light of the experience acquired in applying this Directive and inparticular of the aims of greater transparency and harmonization ofthe provisions referred to by this Directive.
Article 49
This Directive is addressed to the Member States.1986L0635 — EN — 17.07.2003 — 002.001 — 23