Financial statements of the European Coal and Steel Community at 31 December 1991 and 31 December 1990
Date: 1992-08-21
Institutions: European Commission
Subjects: ECSC, ECSC operating budget, balance sheet, balance-sheet analysis, financial management













EUR-Lex - 31992Y0821(01) - EN






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31992Y0821(01)

Financial statements of the European Coal and Steel Community at 31 December 1991 and 31 December 1990  


Official Journal C 215 , 21/08/1992 P. 0003 - 0027 





FINANCIAL STATEMENTS OF THE EUROPEAN COAL AND STEEL  COMMUNITY AT 31 DECEMBER 1991 AND 31 DECEMBER 1990 (92/C  215/03)In accordance with  undertakings given by the Commission on behalf of the ECSC with regard to its borrowing activities,  the following financial statements, drawn up in conformity with Article 78 of the Treaty  establishing the ECSC, are published: -   balance sheets of the European Coal and Steel Community at 31 December 1991 and 31 December  1990, - profit-and-loss accounts for the years ending 31 December 1991 and 31 December 1990; - allocation of the surplus for the years ending 31 December 1991 and 31 December 1990. These financial statements are accompanied by the report of the Court of Auditors provided for  under Article 78f (5) of the ECSC Treaty, dealing with the financial operations of the ECSC for  1991 with the exception of those relating to revenue and expenditure of an administrative nature.  >TABLE>  Before allocation of profitLIABILITIES>TABLE>  >TABLE>   INCOME>TABLE>  >TABLE>  NOTES RELATING TO THE FINANCIAL STATEMENTS AT 31  DECEMBER 1991 AND 31 DECEMBER 1990(amounts in ecus)1.     PRESENTATION OF THE FINANCIAL  STATEMENTS1.1. The European Coal and Steel Community (ECSC) was established by the Treaty of 18  April 1951. According to the Treaty, the task of the ECSC is to contribute to the economic  expansion of the Member States through the establishment of a common market for coal and steel.  Most of the ECSC's funds come from the levy, the net profit from its financial activity, borrowings  raised on the financial markets and direct bank loans. 1.2. The ECSC's financial statements for 1991 and 1990 and the notes thereto are presented in  accordance with Council Directives 78/660/EEC and 86/635/EEC on the annual accounts and  consolidated accounts of banks and other financial institutions (OJ No L 222, 14. 8. 1978 and OJ No  L 372, 31. 12. 1986). 1.3. ECSC accounts are kept in the various currencies used for its financial activity. The  financial statements are expressed in ecus. The following rates have been used for converting year-end balance-sheet amounts expressed in  currency into ecus: >TABLE>1.4. At 31 December 1991 the various currencies listed in 1.3, together with the  ecu, made up the ECSC's balance sheet as follows: (ECU 1  000)>TABLE> NB:   The ecu has a much larger place in the ECSC's accounts than  suggested by the above table. The apparently small share in ecus is explained by certain accounting operations, mainly the  offsetting of accounts receivable and payable relating to currency swaps. The offsetting of these items on the assets and liabilities sides is designed to prevent artificial  inflation of the balance sheet. This accounting operation is caaried out in ecus and involved a total of ECU 6  371  064  642 in  1991. The real weight of the ecu in the ECSC's accounts can therefore be assessed more accurately if this  amount is added both to the assets and to the liabilities sides of the balance sheet. 2. ACCOUNTING POLICIES AND METHODS2.1. The financial statements are drawn up in accordance with  generally recognized accounting principles. 2.2. Charges and income for the financial year are entered in currency and converted to ecus at the  monthly accounting rate in force on the day of the transaction. 3. BALANCES WITH CENTRAL BANKSThis item represents the ECSC's balances with the central banks of  the 12 Member States. 4.   LOANS AND ADVANCES TO CREDIT INSTITUTIONS4.1. Repayable on demandThis item comprises loans  and advances to CEDEL repayable on demand. 4.2. With agreed maturity dates or periods of noticeThe breakdown of the time to maturity of these  loans is as follows: (in ecus)>TABLE>4.3. LoansThe breakdown of the time to maturity of these loans is as  follows: (in ecus)>TABLE>5.   LOANS AND ADVANCES TO CUSTOMERS ETC. 5.1. LoansThe loans granted to credit institutions are shown under 'Loans and advances to credit  institutions` (see note 4). The other loans break down as follows: (in ecus)>TABLE> These loans are usually secured by guarantees from the Member States,  banks or companies, or by mortgages. 5.2. LevyBefore value adjustment, this item amounts to ECU 18  687  124 (ECU 6  669  660 at 31  December 1990). It comprises in particular ECU 3  988  246 subject to legal proceedings (ECU 3  954   650 at 31 December 1990) and ECU 1  101  482 relating to temporary deferment in respect of coal in  stock (ECU 1  498  891 at 31 December 1990). Payment of the levy in respect of coal in stock is temporarily deferred under a general decision  taken in 1972. 5.3. FinesAfter value adjustment the item 'Fines receivable` amounts to ECU 1  754  070 (ECU 1   702  087 at 31 December 1990). 6.   BONDS AND OTHER FIXED-INCOME SECURITIES6.1. ValuationBonds and other fixed-income securities  are valued at average purchase price or market value at 31 December 1991, whichever is the lower. This principle is not applied in the case of securities considered as financial fixed assets (cf.  6.5). 6.2. CompositionBonds and other fixed-income securities break down as follows: (in ecus)>TABLE>6.3. Maturities in 1992Securities in the portfolio reaching final  maturity during 1992 represent the following amounts (in ecus): -  issued by public bodies: 146  031  345-  own-debt securities: 1  142  071-  issued by other  borrowers:   16  828  268Total  164  001  6846.4. Listed/unlisted securitiesThe securities portfolio  comprises ECU 1  180  532  879 of securities with a stock-exchange listing, the balance of ECU 132   975  708 being unlisted securities. 6.5. Financial fixed assets6.5.1. Financial fixed assets are defined as securities that will  remain in the portfolio until their final maturity. They comprise mainly short-term paper and  own-debt securities repurchased for servicing ECSC borrowings. 6.5.2. Financial fixed assets are valued at average purchase price or redemption value, whichever  is the lower. The redemption value of these securities exceeds the average purchase price by a  total of ECU 9  973  206. 6.5.3. Financial fixed assets are made up as follows (in ecus): -  issued by public bodies: 4  115  389-  own-debt securities: 88  954  023-  issued by other  borrowers:   13  596  669Total  106  666  0817. TANGIBLE AND INTANGIBLE ASSETS(in ecus)>TABLE>  The building at 61-63 rue des Belles Feuilles in Paris was sold for ECU 9,6 million on 20 December  1990. The proceeds of the sale were used to purchase two buildings: the first, in Avenue d'Eylau,  houses the offices of the Commission's delegation to the OECD; the second, in Avenue H. Martin,  will serve as the residence of the head of the delegation once the necessary work has been carried  out. In June 1991 the ECSC purchased for ECU 324  254 eight car-parking spaces in rue Commandant  Schloesing. The building purchases were undertaken for non-speculative reasons, primarily to provide the  delegation with more modern offices. ECU 8  480  683 from the proceeds of the sale of the building in rue des Belles Feuilles, which was  fully amortized, was used to purchase the new buildings in 1990. The surplus from the operation was  used to create a provision for liabilities and charges at 31 December 1990 in the sum of ECU 1  159   465 for the purchase of the above-mentioned parking facilities in 1991. The balance of the  provision, amounting to ECU 835  211, will be used to equip the building in Avenue H. Martin. In 1991 the ECSC purchased the offices at 2 rue Barbusse which currently accommodate the Marseilles  branch of the Paris office. In 1986 the ECSC took a 45-year lease on a building in Milan. At the end of this period, the  building will revert to its owner. These buildings are rented by the Commission of the European Communities.   8.   OTHER ASSETS(in ecus)>TABLE>9. PREPAYMENTS AND ACCRUED INCOME(in ecus)>TABLE  POSITION>10. AMOUNTS OWED TO CREDIT INSTITUTIONSThe time to maturity on these operations is as  follows: (in ecus)>TABLE>11. DEBTS EVIDENCED BY CERTIFICATESPart of the borrowings outstanding  at 31 December 1991 will reach maturity during the 1992 financial year. These borrowings amount to  ECU 345  793  262. 12. OTHER LIABILITIES(in ecus)>TABLE>13. ACCRUALS AND DEFERRED INCOME(in ecus)>TABLE  POSITION>14. PROVISIONS FOR LIABILITIES AND CHARGES(in ecus)>TABLE> 15.  COMMITMENTS  FOR THE ECSC OPERATING BUDGETIn 1991, commitments for the ECSC Operating Budget were as follows: >TABLE>  16.     PROVISIONS FOR FINANCING THE ECSC OPERATING BUDGET>TABLE>17.      RESERVESThe plattern of reserves was as follows: >TABLE>The guarantee fund is intended to cover lending and borrowing operations. The special reserve is used to grant loans from ECSC own funds to finance subsidized housing. The former pension fund originally represented the ECSC's total pension obligations prior to 5  March 1968. Since that date, the Member States have assumed responsibility for the payment of staff  pensions. This fund is used to finance housing loans for officials of the European Communities and  has also been used to grant special loans to the coal and steel industries.  18.   ANALYSIS OF THE RESULT FOR THE FINANCIAL YEAROverall ECSC performance is influenced by both  the result of non-budgetary operations (loans/borrowing - investment - exchange-rate variations)  and the outturn of the ECSC Operating Budget. 18.1. Non-budgetary operationsThese operations closed on 31 December 1991 with a net surplus in  excess of that at 31 December 1990. (in ecus)>TABLE>18.2. Implementation of the ECSC Operating Budget(in ecus)>TABLE  POSITION> (in ecus) >TABLE>19.   ADMINISTRATIVE EXPENSES (FIXED AMOUNT)The ECSC paid a  lump sum of ECU 5 million to the general budget of the Commission of the European Communities to  cover its administration costs. 20. OTHER OPERATING CHARGES(in ecus)>TABLE> 21. INTEREST RECEIVED(in ecus)>TABLE  POSITION> 22. OTHER OPERATING INCOME(in ecus)>TABLE>23. INCOME RELATING TO THE  OPERATING BUDGET(in ecus)>TABLE>24. OFF-BALANCE-SHEET COMMITMENTS24.1. Commitments  received(in ecus)>TABLE>24.2. Commitments given(in ecus)>TABLE>  >TABLE  POSITION>