2003/132/EC: Decision of the European Central Bank of 5 December 2002 on the annual accounts of the European Central Bank (ECB/2002/11)
Date: 2002-12-05
Institutions: European Central Bank
Subjects: European Central Bank, account, balance sheet, closing of accounts

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DECISION OF THE EUROPEAN CENTRAL BANK

of 5 December 2002

on the annual accounts of the European Central Bank

(ECB/2002/11)

(2003/132/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Statute of
Central Banks and of
particular to Article 26.2 thereof,

the European System of
the European Central Bank, and in

Whereas:

(1)

(2)

(3)

(4)

(5)

According to Article 26.2 of the Statute, the Governing
Council of the European Central Bank (ECB) establishes
the accounting principles for the annual accounts of the
ECB.

Under the transitory rules of Decision ECB/2000/16 of
1 December 1998 on the annual accounts of
the
European Central Bank as amended on 15 December
1999 and 12 December 2000 (1) all assets and liabilities
as at the close of business on 31 December 1998 had
to be revalued on 1 January 1999. The market prices
and rates applied by the ECB in the opening balance
sheet on 1 January 1999 were the new average cost at
the start of the transitional period.

Due regard has been given to the preparatory work
conducted by the European Monetary Institute (EMI).

The content of Decision ECB/2000/16 will now be
significantly amended.
is desirable for reasons of
clarity to recast it in one single text.

It

the

regulatory framework of

The ECB attaches great importance to enhancing the
the
transparency of
European System of Central Banks (ESCB) even in the
absence of an obligation to do so under the Treaty
establishing the European Community. The ECB has
therefore decided to publish this Decision,

HAS DECIDED AS FOLLOWS:

CHAPTER I

GENERAL PROVISIONS

Article 1

Definitions

(cid:151) (cid:145)International

(IAS),

Standards

Reporting

Standards(cid:146)

Accounting

shall mean
International Accounting Standards
International
Financial
related
and
subsequent
Interpretations
amendments to those standards and related interpretations,
future standards and related interpretations
issued or
adopted by the International Accounting Standards Board
(IASB),

(SIC-IFRIC interpretations),

(IFRS)

(cid:151) (cid:145)national central banks(cid:146)

(NCBs) shall mean the NCBs of

participating Member States,

(cid:151) (cid:145)participating Member States(cid:146) shall mean Member States
which have adopted the euro in accordance with the
Treaty establishing the European Community,

(cid:151) (cid:145)non-participating Member States(cid:146)

shall mean Member
States which have not adopted the euro in accordance with
the Treaty,

(cid:151) (cid:145)Eurosystem(cid:146) shall mean the NCBs and the ECB.

Further definitions of

2.
Decision are included in the glossary attached as Annex I.

terms used in this

technical

Article 2

Scope of application

the ECB comprising the balance sheet,

The rules set out in this Decision shall apply to the annual
accounts of
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.

1.

For the purposes of this Decision:

Article 3

(cid:151) (cid:145)transitional period(cid:146) shall mean the period beginning on 1

January 1999 and ending on 31 December 2001,

Basic accounting assumptions

(1) OJ L 33, 2.2.2001, p. 1.

The following basic accounting assumptions shall apply:

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(a) economic

the

and

reality

transparency:

accounting
methods and financial reporting shall reflect economic
reality, shall be transparent and shall respect the qualitative
characteristics of understandability,
reliability
and comparability. Transactions shall be accounted for and
and
substance
in accordance with their
presented
economic reality and not merely with their legal form;

relevance,

(b) prudence: the valuation of assets and liabilities and income
recognition shall be carried out prudently. In the context
of this Decision, this implies that unrealised gains are not
recognised as income in the profit and loss account, but
are transferred directly to a revaluation account. However,
prudence does not allow the creation of hidden reserves or
the deliberate misstatement of items on the balance sheet
and in the profit and loss account;

(c) post-balance sheet-events: assets and liabilities shall be
adjusted for events that occur between the annual balance
sheet date and the date on which the financial statements
are approved by the relevant bodies if
the
condition of assets or liabilities at the balance sheet date.
No adjustment shall be made for assets and liabilities, but
disclosure shall be made of those events occurring after the
balance sheet date that do not affect the condition of assets
and liabilities at the balance sheet date, but which are of
such importance that non-disclosure would affect
the
ability of the users of the financial statements to make
proper evaluations and decisions;

they affect

(d) materiality: deviations from the accounting rules, including
those affecting the calculation of
the profit and loss
account of the ECB, shall not be allowed unless they can
reasonably be judged to be immaterial
in the overall
context and presentation of the financial accounts of the
reporting institution;

Article 4

Recognition of assets and liabilities

A financial or other asset/liability shall only be recognised in
the balance sheet of the reporting entity when:

(a)

it is probable that any future economic benefit associated
with the asset or liability item will flow to or from the
reporting entity;

(b) substantially all of the risks and rewards associated with
the asset or liability have been transferred to the reporting
entity; and

(c)

the cost or value of the asset to the reporting entity or the
amount of the obligation can be measured reliably.

Article 5

Cash/settlement approach

The cash or (cid:145)settlement(cid:146) approach shall be used as the basis for
recording data in the accounting system of the ECB, without
prejudice
application of Article 5 of Guideline
ECB/2002/10 of 5 December 2002 on the legal framework for
accounting and financial reporting in the ESCB.

to the

CHAPTER II

COMPOSITION AND VALUATION RULES FOR THE BALANCE
SHEET

Article 6

Composition of the balance sheet

(e) going concern basis: accounts shall be prepared on a going

concern basis;

The composition of the balance sheet shall be based on the
structure established in Annex II.

(f)

the accruals principle:
shall be
recognised in the accounting period in which they are
earned or incurred and not according to the period in
which they are received or paid;

income and expenses

(g) consistency and comparability:

the criteria for balance
sheet valuation and income recognition shall be applied
consistently in terms of commonality and continuity of
approach to ensure comparability of data in the financial
statements.

Article 7

Balance sheet valuation rules

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

The revaluation of gold,

2.
securities and financial
off-balance-sheet)
mid-market rates and prices.

instruments
shall be performed at

foreign currency instruments,
(on-balance-sheet and
the year-end at

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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 EUR/USD
exchange rate on the 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 (same ISIN number/type)
for
securities, except
for those securities included in the item
(cid:145)Other financial assets(cid:146), which shall be treated as separate
holdings.

Article 8

Repurchase agreements

1.
A reverse transaction conducted under a repurchase
agreement shall be recorded as a collateralised inward deposit
on the liabilities side of the balance sheet, while the item that
has been given as collateral remains on the assets side of the
balance sheet. Securities sold which are to be repurchased
under repurchase agreements shall be treated by the ECB,
which is required to repurchase them, as if
the assets in
question were still part of the portfolio from which they were
sold.

A reverse

transaction conducted under

reverse
2.
repurchase agreement shall be recorded as a collateralised
outward loan on the assets side of the balance sheet for the
amount of
reverse
repurchase agreements shall not be revalued and no profit or
loss arising thereon shall be taken to the profit and loss
account by the party lending the funds.

loan. Securities

acquired under

the

a

Reverse transactions involving securities denominated in
3.
foreign currencies shall have no effect on the average cost of
the currency position.

In the case of security lending transactions, the securities
4.
shall remain on the balance sheet of
the transferor. Such
transactions shall be accounted for in the same manner as that
If, however, securities
prescribed for repurchase operations.
borrowed by the ECB acting as the transferee are not kept in
the ECB shall establish a
its the depot at
the underlying
provision for losses if
securities has risen since the contract date of
the lending
transaction and to show a liability (retransfer of the securities)
if
the securities have been sold in the meantime by the
transferee.

the market value of

the year-end,

Reverse

including

transactions,

6.
lending
transactions, conducted under an automated security lending
programme shall be recorded with effect on the balance sheet
for such transactions only where collateral is provided in the
form of cash over the complete maturity of the operation.

security

Article 9

Marketable equity instruments

1.
This Article shall apply to marketable equity instruments
(equity shares or equity funds), whether the transactions are
conducted directly by the ECB or by an agent acting for the
ECB, with the exception of activities conducted for the ECB’s
pension
in
subsidiaries, significant interests or financial fixed assets.

participating

investments

interests,

funds,

2.
Equity instruments denominated in foreign currencies
shall not form part of the overall currency position but shall
be part of a separate currency holding. The calculation of the
related foreign exchange gains and losses can be performed
either on a net average cost method or on an average cost
method.

3.

Equity instruments shall be treated as follows:

(a)

the revaluation of equity portfolios shall be performed in
accordance with Article 7(2). Revaluation shall take place
the price
on an item-by-item basis. For equity funds,
revaluation shall be performed on a net basis, and not on
share-by-share basis. There shall be no
an individual
netting between different
shares or between
different equity funds;

equity

(b) transactions shall be recorded in the balance sheet at

transaction price;

(c) brokerage commission shall be recorded either as a
transaction cost to be included in the cost of the asset or
as expense in the profit and loss account;

(d) the amount of the dividend purchased shall be included in
the equity instrument. At ex-dividend date,
the cost of
while the payment of
the dividend has not yet been
received, the amount of the dividend purchased may be
treated as a separate item;

(e) accruals on dividends shall not be booked at period-end as
they are already reflected in the market price of the equity
instruments with the
equities quoted
ex-dividend;

exception of

treated as
5.
Collateralised gold transactions
repurchase agreements. The gold flows
relating to these
collateralised transactions shall not be recorded in the financial
statements and the difference between the spot and forward
prices of the transaction shall be treated on an accruals basis.

shall be

(f)

rights issues shall be treated as a separate asset when
issued. The acquisition cost shall be calculated based on
the old average cost of the equities, on the strike price of
the new one, and on the proportion between old and new
equities. Alternatively, the price of the right may be based
on the value of the right in the market, the old average

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cost of equity and the market price of equity before the
right issue. They shall be treated in line with Eurosystem
accounting rules.

CHAPTER III

INCOME RECOGNITION

Article 10

Recognition of income

derogation has been abrogated shall be used to offset
unrealised losses when exceeding previous revaluation gains
registered in the corresponding standard revaluation account as
described in paragraph 1(c) of
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.

this Article, prior

Article 11

Cost of transactions

1.

The following rules shall apply to income recognition:

The following general rules shall apply to the cost of

1.
transactions:

(a) realised gains and realised losses shall be taken to the

(a)

profit and loss account;

foreign currency instruments and securities,

the average cost method shall be used on a daily basis for
gold,
to
compute the acquisition cost of items sold, having regard
to the effect of exchange rate and/or price movements;

(b) unrealised gains shall not be recognised as income, but

transferred directly to a revaluation account;

(c) unrealised losses shall be taken to the profit and loss
revaluation gains

account when exceeding previous
registered in the corresponding revaluation account;

(d) unrealised losses taken to the profit and loss account shall
not be reversed in subsequent years against new unrealised
gains;

(e)

there shall be no netting of unrealised losses in any one
security, or in any currency or in gold holdings against
unrealised gains in other securities or currencies or gold.

(b) the average cost price/rate of the asset/liability shall be
reduced/increased by unrealised losses taken to the profit
and loss account at the year-end;

(c)

in the case of the acquisition of coupon securities, the
amount of coupon income purchased shall be treated as a
separate item.
In the case of securities denominated in
foreign currency, it shall be included in the holding of that
currency, but shall not be included in the cost or price of
the asset for the purpose of determining the average price.

2.

The following special rules shall apply to securities:

2.
Premiums or discounts arising on issued and purchased
securities shall be calculated and presented as part of interest
income and shall be amortised over the remaining life of the
securities, either according to the straight line method or the
internal rate of return (IRR) method. The IRR method shall,
however, be mandatory for discount
securities with a
remaining maturity of more than one year at the time of
acquisition.

(a)

transactions shall be recorded at the transaction price and
booked in the financial accounts at the clean price;

(b) custody and management fees, current account fees and
other indirect costs are not considered as transaction costs
and shall be included in the profit and loss account. They
shall not be treated as part of
the average cost of a
particular asset;

Accruals denominated in foreign currencies

3.
shall be
translated at the mid-market rate at the year-end and reversed
at the same rate.

(c)

income
recorded
withholding and other taxes accounted for separately;

gross with

shall

be

refundable

4.
Only transactions that entail a change in the holding of a
given currency may give rise to realised foreign exchange gains
or losses.

5.
Holdings on special revaluation accounts stemming from
contributions according to Article 49.2 of the Statute with
respect to central banks of a Member State for which the

(d) for the purpose of calculating the average purchase cost of
a security, either (i) all purchases made during the day shall
be added at cost to the previous day’s holding to produce
a new weighted average price before applying the sales for
the same day; or (ii)
individual purchases and sales of
securities may be applied in the order in which they
occurred during the day for the purpose of calculating the
revised average price.

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The following special

3.
foreign exchange:

rules shall apply to gold and

2.
Interest rate swaps, futures, forward rate agreements and
other interest rate instruments shall be accounted for and
revalued on an item-by-item basis. These instruments shall be
treated separately from on-balance-sheet items.

(a)

transactions in a foreign currency which entail no change
in the holding of that currency shall be translated into
euro, using the exchange rate of the contract or settlement
date, and shall not affect
that
holding;

the acquisition cost of

and

3.
Profits
instruments
manner to on-balance-sheet instruments.

from off-balance-sheet
shall be recognised and treated in a similar

arising

losses

(b) transactions in foreign currency which entail a change in
the holding of that currency shall be translated into euro at
the exchange rate of the contract or settlement date;

Article 13

Foreign exchange forward transactions

(c) actual cash receipts and payments shall be translated at the
mid-market exchange rate on the day on which settlement
occurs;

(d) net acquisitions of currencies and gold made during the
day shall be added, at the average cost of the purchases of
the day for each respective currency and gold,
to the
previous day’s holding, to produce a new weighted average
rate/gold price. In the case of net sales, the calculation of
the realised gain or loss shall be based on the average cost
the
the respective currency or gold holding for
of
preceding day so that the average cost remains unchanged.
Differences in the average rate/gold price between inflows
and outflows made during the day shall also result
in
realised gains or losses. Where a liability situation exists in
respect of a foreign currency or gold position, the reverse
treatment shall apply to the abovementioned approach.
Thus the average cost of
the liability position shall be
affected by net sales, while net purchases shall reduce the
position at the existing weighted average rate/gold price;

(e) costs of foreign exchange transactions and other general

costs shall be posted to the profit and loss account.

CHAPTER IV

ACCOUNTING RULES FOR OFF-BALANCE-SHEET
INSTRUMENTS

accounts

from the

trade date

Forward purchases and sales

shall be recognised in
1.
off-balance-sheet
to the
settlement date at the spot rate of the forward transaction.
Gains and losses on sale transactions shall be calculated using
the average cost of the currency position on the contract date,
plus two or three working days, in accordance with the daily
netting procedure of purchases and sales. Gains and losses
shall be considered to be unrealised until the settlement date
and shall be treated in accordance with Article 10(1).

The difference between the spot and the forward rates
2.
shall be treated as interest payable or receivable on an accruals
basis for both purchases and sales.

At

the settlement date the off-balance-sheet accounts
3.
shall be reversed, and any balance on the revaluation account
shall be credited to the profit and loss account at quarter-end.

The average cost of

the currency position shall be
4.
affected by forward purchases from the trade date plus either
two or
three working days, depending on the market
conventions for the settlement of spot transactions, at the spot
purchase rate.

5.
The forward positions shall be valued in conjunction
with the spot position of the same currency, offsetting any
differences that may arise within a single currency position. A
net loss balance shall be debited to the profit and loss account
when it exceeds previous revaluation gains registered in the
revaluation account; a net profit balance shall be credited to
the revaluation account.

Article 12

General rules

Article 14

Foreign exchange swaps

Foreign exchange forward transactions, the forward legs
1.
of
foreign exchange swaps and other currency instruments
involving an exchange of one currency for another at a future
date shall be included in the net foreign currency positions for
calculating foreign exchange gains and losses.

Forward sales and purchases

2.
off-balance-sheet
settlement date at the spot rate of the forward transactions.

shall be recognised in
to the

trade date

from the

accounts

Spot purchases

1.
on-balance-sheet accounts at the settlement date.

and sales

shall be

recognised in

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Sale transactions shall be recognised at the spot rate of

3.
the transaction, so that no gains and losses will arise.

4.
The difference between the spot and forward rates shall
be treated as interest payable or receivable on an accruals basis
for both purchases and sales.

7.
Unrealised losses taken to the profit and loss account at
the year-end shall not be reversed in subsequent years against
unrealised profits, unless the instrument
is closed out or
terminated. In the case of a profit, the entry made shall be a
debit to a suspense account as other assets and a credit to the
revaluation account.

At

5.
shall be reversed.

the settlement date the off-balance-sheet accounts

The average cost of the foreign currency position shall

6.
not change.

The forward position shall be valued in conjunction with

7.
the spot position.

Article 15

Interest rate futures

Interest rate futures shall be recorded on the trade date in

1.
off-balance-sheet accounts.

2.
The initial margin shall be recorded as a separate asset if
deposited in cash. If deposited in the form of securities, it shall
remain unchanged in the balance sheet.

3.
Daily changes in the variation margins shall be recorded
in the balance sheet in a separate account, either as an asset or
as a liability, depending on the price development of
the
futures contract. The same procedure shall be applied on the
closing day of the open position. Immediately thereafter the
separate account shall be cancelled and the overall result of the
transaction shall be recorded as a profit or loss, regardless of
whether or not delivery takes place. If delivery does take place,
the purchase or sale entry shall be made at market price.

Article 16

Interest rate swaps

Interest rate swaps shall be recorded on the trade date in

1.
off-balance-sheet accounts.

The current interest payments, either received or paid,
2.
shall be recorded on an accruals basis. Netting payments per
interest rate swap are allowed.

The average cost of

the currency position shall be
3.
affected by interest rate swaps in a foreign currency when
there is a difference between payments received and payments
paid. A payment balance leading to an inflow shall affect the
average cost of the currency when the payment is due.

translated into euro at

Every interest rate swap shall be marked-to-market and, if
4.
necessary,
rate.
Unrealised losses taken to the profit and loss account at the
year-end shall not be reversed in subsequent years against
unrealised profits unless
is closed out or
terminated. Unrealised revaluation gains shall be credited to a
revaluation account.

the currency spot

the instrument

5.

Fees shall be taken to the profit and loss account.

Article 17

Forward rate agreements

4.

Fees shall be taken to the profit and loss account.

Forward rate agreements shall be recorded at the time of

1.
trading in off-balance-sheet accounts.

5.
The conversion into euro, if appropriate, shall be made
on the close-out day at the market rate on that day. An inflow
of foreign currency shall have an effect on the average cost of
this currency position on the close-out date.

The compensation payment to be paid by one party to
2.
another at
the settlement date shall be entered on the
settlement date in the profit and loss account. Payments shall
not be recorded on an accruals basis.

6.
Owing to daily revaluation, the profits and losses shall be
entered in defined separate accounts. A separate account on
the assets side shall represent a loss and a separate account on
the liabilities side shall represent a profit. Unrealised losses
shall be debited to the profit and loss account and such
amounts shall be credited to a liability account as other
liabilities.

3.
If forward rate agreements in a foreign currency are held,
there shall be an effect on the average cost of this currency
position in the compensation payment. The compensation
payment shall be translated into euro at the spot rate on the
settlement date. A payment balance leading to an inflow shall
affect the average cost of the currency when the payment is
due.

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4.
All forward rate agreements shall be marked-to-market
and, if necessary, translated into euro at the currency spot rate.
Unrealised losses taken to the profit and loss account at the
year-end shall not be reversed in subsequent years against
unrealised profits unless
is closed out or
terminated. Unrealised revaluation gains shall be credited to a
revaluation account.

the instrument

5.

Fees shall be taken to the profit and loss account.

Article 18

Forward transactions in securities

Forward transactions in securities may be accounted for in
accordance with either of the following two methods:

Method A:

(a)

forward transactions in securities shall be recorded in
from the trade date to the
off-balance-sheet accounts
the forward
settlement date, at
transaction;

the forward price of

Method B:

(a)

forward transactions in securities shall be recorded in
from the trade date to the
off-balance-sheet accounts
settlement date at
the forward
the settlement date the off-balance-sheet
transaction. At
accounts shall be reversed;

the forward price of

(b) at the quarter-end the revaluation of a security shall be
made on the basis of the net position resulting from the
balance sheet and from the sales of
the same security
recorded in the off-balance-sheet accounts. The amount of
the revaluation shall be equal to the difference between
this net position valued at revaluation price and the same
position valued at the average cost of the balance sheet
position. At the quarter-end, forward purchases shall be
subject to the revaluation process described in Article 7.
to the difference
The revaluation result shall be equal
the
between the spot price and the average cost of
purchase commitments;

(c)

the result of a forward sale shall be recorded in the
financial year in which the commitment was undertaken.
This result shall be equal to the difference between the
initial forward price and the average cost of the balance
sheet position, or the average cost of the off-balance-sheet
purchase commitments if
the balance sheet position is
insufficient, at the time of the sale.

(b) the average cost of the holding of the traded security shall
not be affected until settlement; the profit and loss effects
of
forward sale transactions shall be calculated on the
settlement date;

CHAPTER V

ANNUAL PUBLISHED BALANCE SHEET AND PROFIT AND
LOSS ACCOUNT

(c) at the settlement date the off-balance-sheet accounts shall
be reversed and the balance on the revaluation account (cid:151)
if any (cid:151) shall be credited to the profit and loss account.
The security purchased shall be accounted for using the
spot price on the maturity date (actual market price), while
the difference with the original
forward price shall be
recognised as a realised profit or loss;

Article 19

Formats

The format for the ECB’s published annual balance sheet

1.
shall follow the format in Annex III.

(d)

(e)

in the case of securities denominated in a foreign currency,
the average cost of the net currency position shall not be
affected if
the ECB already holds a position in that
currency. If the bond purchased forward is denominated in
a currency in which the ECB does not hold a position, so
that it is necessary to purchase the relevant currency, the
rules for the purchase of foreign currencies under Article
11(3)(d) shall apply;

the forward market price for

the transaction. A revaluation loss at

forward positions shall be valued on an isolated basis
the remaining
against
duration of
the
year-end shall be debited to the profit and loss account,
and a revaluation profit shall be credited to the revaluation
account. Unrealised losses recognised in the profit and loss
account at the year-end shall not be reversed in subsequent
years against unrealised profits unless the instrument is
closed out or terminated.

The format of

2.
account shall comply with Annex IV.

the ECB’s published profit and loss

CHAPTER VI

FINAL PROVISIONS

Article 20

Development, application and interpretation of rules

The Accounting and Monetary

shall act as

1.
(AMICO)
Governing Council,
development,
accounting rules of the ESCB.

via
application

Income Committee
the ESCB forum for advising the
Executive Board, on the
the

implementation

the
and

of

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2.
In interpreting this Decision, account shall be taken of
the preparatory work, the accounting principles harmonised by
Community
international
generally
accounting standards.

law and

accepted

If a specific accounting treatment is not laid down in this
3.
Decision and in the absence of a decision to the contrary by
the Governing Council,
follow International
Accounting Standards relevant to the activities and accounts of
the ECB,
in so far as these do not contradict in a material
manner the European Community accounting legislation.

the ECB shall

Article 21

Repeal

Article 22

Final provisions

1.

This Decision shall enter into force on 1 January 2003.

to the previous paragraph,

this
2. Without prejudice
Decision shall also apply to the drawing up of the annual
balance sheet of the ECB as at 31 December 2002 and the
profit and loss account of the ECB for the year ending 31
December 2002.

This Decision shall be published in the Official Journal of the
European Union.

Done at Frankfurt am Main, 5 December 2002.

Decision ECB/2000/16 is hereby repealed. References to the
repealed Decision shall be construed as references to this
Decision.

The President of the ECB

Willem F. DUISENBERG

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ANNEX I

GLOSSARY

Amortisation shall mean the systematic reduction in the accounts of a premium/discount or of the value of assets over a
period of time.

Asset shall mean a resource controlled by the enterprise as a result of past events and from which future economic
benefits are expected to flow to the enterprise.

Automated security lending programme (ASLP) shall mean a financial operation combining repo and reverse repo
transactions where specific collateral
is lent against general collateral. As a result of these lending and borrowing
transactions, income is generated through the different repo rates of the two transactions (i.e. the margin received). The
operation may be conducted under a principal-based programme i.e. the bank offering this programme is considered
the final counterparty, or under an agency-based programme i.e. the bank offering this programme acts only as agent,
and the final counterparty is the institution with which the security lending transactions are effectively conducted.

Average cost shall mean the continued or weighted average method, by which the cost of every purchase is added to the
existing book value to produce a new weighted average cost.

Cash/settlement approach shall mean an accounting approach under which accounting events are recorded at
settlement date.

the

Clean price shall mean transaction price excluding any rebate/accrued interest, but including transaction costs that form
part of the price.

Discount shall mean the difference between the par value of a security and its price when such price is lower than par.

Discount security shall mean an asset which does not pay coupon interest, and the return on which is achieved by
capital appreciation because the asset is issued or bought at a discount.

Equity instruments shall mean dividend bearing securities (corporate shares, and securities evidencing an investment in an
equity fund).

Financial asset shall mean any asset that is: (i) cash; or (ii) a contractual right to receive cash or another financial
instrument
instruments with another
enterprise under conditions that are potentially favourable; or (iv) an equity instrument of another enterprise.

from another enterprise; or (iii) a contractual right

to exchange financial

Financial liability shall mean any liability that is a legal obligation to deliver cash or another financial instrument to
another enterprise or to exchange financial instruments with another enterprise under conditions that are potentially
unfavourable.

Foreign currency holding shall mean the net position in the respective currency. For the purpose of this definition special
drawing rights (SDRs) shall be considered as a separate currency.

Foreign exchange forward shall mean a contract in which the outright purchase or sale of a certain amount denominated
in a foreign currency against another currency, usually the domestic currency, is agreed on one day and the amount is
to be delivered at a specified future date, more than two working days after the date of the contract, at a given price.
This forward rate of exchange consists of the prevailing spot rate plus/minus an agreed premium/discount.

Foreign exchange swap shall mean the simultaneous spot purchase/sale of one currency against another (short leg) and
forward sale/purchase of the same amount of this currency against the other currency (long leg).

Forward rate agreement shall mean a contract in which two parties agree the interest rate to be paid on a notional
deposit of a specified maturity on a specific future date. At the settlement date compensation has to be paid by one
party to the other, depending on the difference between the contracted interest rate and the market rate on the
settlement date.

Forward transactions in securities shall mean over the counter contracts in which the purchase or sale of an interest rate
instrument (usually a bond or note) is agreed on the contract date to be delivered at a future date, at a given price.

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Interest rate future shall mean an exchange traded forward contract. In such a contract, the purchase or sale of an interest
rate instrument, e.g. a bond, is agreed on the contract date to be delivered at a future date, at a given price. Usually no
actual delivery takes place; the contract is normally closed out before the agreed maturity.

Internal rate of return shall mean a rate at which the accounting value of a security is equal to the present value of the
future cash flow.

(Cross-currency) interest rate swap shall mean a contractual agreement to exchange cash flows representing streams of
periodic interest payments with a counterparty either in one currency or in two different currencies.

Interlinking shall mean the technical infrastructures, design features and procedures which are put in place within or
constitute adaptations of each national RTGS system and the ECB payment mechanism (EPM) for the purpose of
processing cross-border payments in the TARGET system.

International securities identification number (ISIN) shall mean the number issued by the relevant competent issuing
authority.

Liability shall mean a present obligation of the enterprise arising from past events, the settlement of which is expected
to result in an outflow from the enterprise of resources embodying economic benefits.

Market price shall mean the price that is quoted for a gold, foreign exchange or securities instrument usually excluding
accrued or rebate interest either on an organised market e.g. stock exchange or a non-organised market e.g.
over-the-counter market.

Maturity date shall mean the date on which the nominal/principal value becomes due and payable in full to the holder.

Mid-market price shall mean the mid-point between the bid price and the offer price for a security based on quotations
for transactions of normal market size by recognised market-makers or recognised trading exchanges, which is used for
the year-end revaluation procedure.

Mid-market rate shall mean the ECB daily concertation rates at 14.15, which is used for the year-end revaluation
procedure.

Premium shall mean the difference between the par value of a security and its price when such price is higher than par.

Provisions shall mean amounts set aside before arriving at the profit or loss figure in order to provide for any known or
expected liability or risk, the cost of which cannot be accurately determined (see Reserves). Provisions for future
liabilities and charges may not be used to adjust the value of assets.

Realised gains/losses shall mean gains/losses arising out of the difference between the sale price of a balance sheet item
and its adjusted cost.

Reserves shall mean an amount set aside out of distributable profits, which is not intended to meet any specific liability,
contingency or expected diminution in value of assets known to exist at the balance sheet date.

Revaluation accounts shall mean balance sheet accounts for registration of the difference in the value of an asset or
liability between the adjusted cost of its acquisition and its valuation at an end-of-period market price, when the latter
is higher than the former in case of assets, and when the latter is lower than the former in case of liabilities. They
include differences in both price quotation and/or market exchange rates.

A reverse sale and repurchase agreement (reverse repo) is a contract under which a holder of cash agrees to the purchase of
an asset and, simultaneously, agrees to re-sell the asset for an agreed price on demand, or after a stated time, or in the
event of a particular contingency. Sometimes a repo transaction is agreed via a third party (triparty repo).

Reverse transaction shall mean an operation whereby the central bank buys (reverse repo) or sells (repo) assets under a
repurchase agreement or conducts credit operations against collateral.

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Settlement shall mean an act that discharges obligations in respect of funds or assets transfers between two or more
parties. In the context of intra-Eurosystem transactions, settlement refers to the elimination of the net balances arising
from intra-Eurosystem transactions and requires the transfer of assets.

Settlement date shall mean the date on which the final and irrevocable transfer of value has been recorded in the books
of the relevant settlement institution. The timing of the settlement can be immediate (real-time), same day (end-of-day)
or an agreed date after the date on which the commitment has been entered into.

Straight line depreciation/amortisation shall mean that depreciation/amortisation over a given period is determined by
dividing the cost of the asset, less its estimated residual value, by the estimated useful life of the asset pro rata temporis.

TARGET shall mean the Trans-European Automated Real-time Gross settlement Express Transfer system composed of
one Real-Time Gross Settlement system (RTGS system) in each of the NCBs, the EPM and the interlinking.

Transaction costs shall mean costs that are identifiable as related to the specific transaction.

Transaction price shall mean the price agreed between the parties when a contract is made.

Unrealised gains/losses shall mean gains/losses arising from the revaluation of assets compared to their adjusted cost of
acquisition.

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ANNEX II

COMPOSITION AND VALUATION RULES FOR THE BALANCE SHEET

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

ASSETS

Balance sheet item

Categorisation of contents of balance sheet items

Valuation principle

1.

Gold and gold
receivables

Physical gold (i.e. bars, coins, plates, nuggets) in storage or
(cid:145)under way(cid:146). Non-physical gold, such as balances in gold
sight accounts (unallocated accounts), term deposits and
claims
following
transactions: upgrading or downgrading transactions and
gold location or purity swaps where there is a difference of
more than one business day between release and receipt

to receive gold arising from the

Market value

2.

Claim on non-euro
area residents
denominated in
foreign currency

Claims on counterparties resident outside the euro area
(including international and supranational institutions and
central banks outside the euro area) denominated in
foreign currency

2.1. Receivables from the

(a) Drawing rights within the reserve tranche (net)

IMF

National quota minus balances in euro at the disposal
of the IMF.
(The No 2 account of
for
administrative expenses) could be included in this
position or under the item (cid:145)Liabilities to non-euro area
residents denominated in euro(cid:146))

the IMF (euro account

(b) Special drawing rights

Holdings of special drawing rights (gross)

(a) Drawing rights within
the reserve tranche (net)
Nominal value,
translation at the
year-end foreign
exchange market rate

(b) Special drawing rights
Nominal value,
translation at the
year-end foreign
exchange market rate

(c) Other claims

(c) Other claims

General arrangements to borrow (GAB),
loans under
special borrowing arrangements, deposits within the
framework of
the Poverty Reduction and Growth
Facility (PRGF)

Nominal value,
translation at the
year-end foreign
exchange market rate

2.2.

Balances with banks
and security
investments, external
loans and other
external assets

(a) Balances with banks outside the euro area

Current
money, reverse repo transactions

accounts,

fixed-term deposits, day-to-day

(a) Balances with banks
outside the euro area
Nominal value,
translation at the
year-end foreign
exchange market rate

(b) Security investments (other than equity shares, participations
and other securities under asset item (cid:145)Other financial assets(cid:146))
outside the euro area
Marketable notes and bonds, bills, zero bonds, money
market paper, all issued by non-euro area residents

(b) Securities (marketable)
Market price and
foreign exchange
market rate at
year-end

(c) External loans (deposits)

Loans to and non-marketable securities (other than
equity shares, participations and other securities under
asset item (cid:145)Other financial assets(cid:146)) issued by non-euro
area residents

(c) External loans

Deposits at nominal
value, non-marketable
securities at cost;
both translated at the
year-end foreign
exchange market rate

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Balance sheet item

Categorisation of contents of balance sheet items

Valuation principle

(d) Other external assets

Non-euro area banknotes and coins

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

3.

Claims on euro area
residents denomi-
nated in foreign
currency

(a) Securities

Marketable notes and bonds, bills, zero bonds, money
market paper (other than equity shares, participations
and other securities under asset item (cid:145)Other financial
assets(cid:146))

(a) Securities (marketable)
Market price and
foreign exchange
market rate at
year-end

(b) Other claims

Non-marketable securities (other than equity shares,
participations and other securities under asset
item
loans, deposits, reverse repo
(cid:145)Other financial assets(cid:146)),
transactions, sundry lending

(b) Other claims

Deposits at nominal
value, non-marketable
securities at cost,
both translated at the
year-end foreign
exchange market rate

4.

Claims on non-euro
area residents
denominated in euro

4.1.

Balances with banks,
security investments
and loans

(a) Balances with banks outside the euro area

accounts,

Current
fixed-term deposits, day-to-day
money, reverse repo transactions in connection with
the management of securities denominated in euro

(a) Balances with banks
outside the euro area
Nominal value

(b) Security investments (other than equity shares, participations
and other securities under asset item (cid:145)Other financial assets(cid:146))
outside the euro area
Marketable notes and bonds, bills, zero bonds, money
market paper, all issued by non-euro area residents

(b) Marketable securities
Market price at
year-end

(c) Loans outside the euro area

to and non-marketable securities

Loans
non-euro area residents

issued by

(c) Loans outside the euro

area
Deposits at nominal
value, non-marketable
securities at cost

(d) Securities issued by entities outside the euro area

(d) Securities issued by

Securities
organisations
geographical location

issued by supranational or
the EIB,

e.g.

irrespective of

international
their

entities outside the euro
area
Market price at
year-end

4.2. Claims arising from

Lending according to the conditions of ERM II

Nominal value

the credit facility
under ERM II

5.

Lending to euro area
credit institutions
related to monetary
policy operations
denominated in euro

Items 5.1 to 5.5: transactions according to the respective
monetary policy instruments described in the document
(cid:145)The single monetary policy in the euro area: General
documentation
policy
instruments and procedures(cid:146)

Eurosystem monetary

on

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Balance sheet item

Categorisation of contents of balance sheet items

Valuation principle

5.1. Main refinancing
operations

Regular
weekly frequency and normally a maturity of two weeks

liquidity-providing reverse transactions with a

Nominal value or (repo)
cost

5.2.

Longer-term refinanc-
ing operations

Regular
monthly frequency and normally a maturity of
months

liquidity-providing reverse transactions with a
three

Nominal value or (repo)
cost

5.3.

Fine-tuning reverse
operations

Reverse transactions, executed as ad hoc transactions for
fine-tuning purposes

Nominal value or (repo)
cost

5.4.

Structural reverse
operations

Reverse transactions aiming at adjusting the structural
position of the Eurosystem vis-(cid:224)-vis the financial sector

Nominal value or (repo)
cost

5.5. Marginal lending

facility

Overnight liquidity facility at a pre-specified interest rate
against eligible assets (standing facility)

Nominal value or (repo)
cost

5.6. Credits related to
margin calls

Additional credit to credit institutions, arising from value
increases of underlying assets regarding other credit
to
these credit institutions

Nominal value or cost

6.

Other claims on euro
area credit
institutions denomi-
nated in euro

7.

Securities of euro
area residents
denominated in euro

in

repo

transactions

connection with

Current accounts, fixed-term deposits, day-to-day money,
reverse
the
management of security portfolios under the asset item
(cid:145)Securities of euro area residents denominated in euro(cid:146)
(including transactions resulting from the transformation
of former foreign currency reserves of the euro area) and
other claims.
Correspondent accounts with non-domestic euro area
credit institutions.
Other claims and operations which are not related to
monetary policy operations of the Eurosystem

Marketable securities (related to or eligible to be used for
monetary policy purposes, other
than equity shares,
participations and other securities under asset item (cid:145)Other
financial assets(cid:146)): notes and bonds, bills, zero bonds, money
market
government
outright
securities stemming from before EMU) denominated in
fine-tuning
euro; ECB debt certificates purchased for
purposes

(including

paper

held

Nominal value or cost

Market price at year-end

8.

General government
debt denominated in
euro

Claims on government
(non-marketable securities, loans)

stemming from before EMU

Deposits/loans at
nominal value,
non-marketable secur-
ities at cost

9.

Intra-Eurosystem
claims

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Balance sheet item

Categorisation of contents of balance sheet items

Valuation principle

9.1. Claims related to
promissory notes
backing the issuance
of ECB debt
certificates

Only an ECB balance sheet item
Promissory notes issued by NCBs, due to the back-to-back
agreement in connection with ECB debt certificates

Nominal value

9.2. Claims related to the

allocation of euro
banknotes within the
Eurosystem

Claims related to the ECB’s banknote issue, according to
Decision ECB/2001/15 of 6 December 2001 on the issue
of euro banknotes (1)

Nominal value

9.3. Other claims within
the Eurosystem (net)

(a) Net claims arising from balances of TARGET accounts
and correspondent accounts of NCBs i.e. the net figure
of claims and liabilities (see also liability item (cid:145)Other
liabilities within the Eurosystem (net)(cid:146))

(a) Nominal value

(b) Other

intra-Eurosystem claims

arise,
including the interim distribution of ECB seigniorage
income to NCBs

that may

(b) Nominal value

10.

Items in course of
settlement

Settlement account balances (claims), including the float of
cheques in collection

Nominal value

11. Other assets

11.1. Coins of euro area

Euro coins

Nominal value

11.2. Tangible and

intangible fixed
assets

Land and buildings,
computer equipment), software

furniture and equipment

(including

Cost less depreciation

Depreciation rates:

(cid:151) computers and

related hardware/soft-
ware and motor
vehicles:
four years

(cid:151) equipment, furniture
and plant in building:
10 years

(cid:151) building and

capitalised major
refurbishment expen-
diture:
25 years

Capitalisation of
expenditure:
limit based (below EUR
10 000 excluding VAT:
no capitalisation)

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Balance sheet item

Categorisation of contents of balance sheet items

Valuation principle

11.3. Other financial assets

11.4. Off-balance sheet

instruments revalu-
ation differences

Equity instruments, participating interests and investments
in subsidiaries.
Investment portfolios related to pension
funds and severance schemes. Securities held owing to
statutory requirements and investment activities
for a
specific purpose, carried out by NCBs on their own
account
the management of an earmarked
portfolio corresponding to capital and reserves and the
management of
a
permanent investment (financial fixed assets). Reverse repo
transactions with credit institutions in connection with the
management of security portfolios under this item

an earmarked portfolio held as

such as

(a) Marketable equity

instruments
Market value

(b) Participating interests
and illiquid equity
shares
Cost

(c) Investment in
subsidiaries or
significant interests
Net asset value

(d) Securities (marketable)

Market value

(e) Non-marketable

securities
Cost

(f) Financial fixed assets

Cost

Premiums/discounts are
amortised.

For equity instruments,
the detailed rules are set
out in Article 9 of this
Decision.

Valuation results of
exchange swaps,
forward rate agreements

foreign exchange forwards,
financial

rate futures,

interest

foreign
swaps,

Net position between
forward and spot, at
foreign exchange market
rate

11.5. Accruals and prepaid

expenditure

Income not due in, but assignable to the reported period.
Prepaid expenditure and erest paid (2)

Nominal value, foreign
exchange translated at
market rate

11.6. Sundry

Advances, loans, other minor items.
Loans on a trust basis Investments related to customer
gold deposits
Interim distribution of ECB income on euro banknotes to
NCBs

Nominal value/cost

Investments related to
customer gold deposits
Market value

12.

Loss for the year

(1) OJ L 337, 20.12.2001, p. 52.
(2) I.e. accrued interest purchased with a security.

Nominal value

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1.

2.

LIABILITIES

Balance sheet item

Categorisation of contents of balance sheet items

Valuation principle

Banknotes in
circulation

Euro banknotes issued by the ECB, according to Decision
ECB/2001/15

Nominal value

Liabilities to euro
area credit
institutions related to
monetary policy
operations denomi-
nated in euro

Items 2.1, 2.2, 2.3 and 2.5: deposits in euro as described
in the document (cid:145)The single monetary policy in the euro
area: General documentation on Eurosystem monetary
policy instruments and procedures(cid:146)

2.1. Current accounts

(covering the
minimum reserve
system)

Euro accounts of credit institutions that are included in the
list of financial
institutions subject to minimum reserves
according to the Statute.
This item contains primarily accounts used in order to
hold minimum reserves

Nominal value

2.2. Deposit facility

Overnight deposits at a pre-specified interest rate (standing
facility)

Nominal value

2.3.

Fixed-term deposits

Collection for
fine-tuning operations

liquidity absorption purposes owing to

Nominal value

2.4.

Fine-tuning reverse
operations

Monetary policy-related transactions with the aim of
liquidity absorption

Nominal value or (repo)
cost

2.5. Deposits related to
margin calls

Deposits of credit institutions, arising from value decreases
to these credit
of underlying assets
institutions

regarding credits

Nominal value

3.

Other liabilities to
euro area credit
institutions denomi-
nated in euro

Repo transactions in connection with simultaneous reverse
security
for
repo transactions
portfolios under asset
euro area
residents denominated in euro(cid:146).
Other operations unrelated to Eurosystem monetary policy
operations.
No current accounts of credit institutions

the management of
item (cid:145)Securities of

Nominal value or (repo)
cost

4.

ECB debt certificates
issued

Only an ECB balance sheet item
Debt certificates as described in the document (cid:145)The single
monetary policy in the euro area: General documentation
policy
on
and
Eurosystem monetary
instruments
procedures(cid:146) Discount paper,
issued with the aim of
liquidity absorption

Nominal value

5.

Liabilities to other
euro area residents
denominated in euro

5.1. General government

Current accounts, fixed-term deposits, deposits repayable
on demand

Nominal value

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Balance sheet item

Categorisation of contents of balance sheet items

Valuation principle

5.2. Other liabilities

Current accounts of staff, companies and clients (including
financial institutions listed as exempt from the obligation
to hold minimum reserves (cid:151) see liability item 2.1), etc.;
fixed-term deposits, deposits repayable on demand

Nominal value

Nominal value or (repo)
cost

Current accounts, fixed-term deposits, deposits repayable
on demand (including accounts held for payment purposes
and accounts held for reserve management purposes): of
international/supranational
other banks,
central banks,
institutions (including the Commission of
the European
Communities); current accounts of other depositors.
Repo transactions in connection with simultaneous reverse
securities
repo transactions
denominated in euro.
Balances of TARGET accounts of non-participating NCBs

the management of

for

Current accounts.
Liabilities under
transactions using foreign currency assets or gold

repo transactions; usually investment

Nominal value,
translation at year-end
foreign exchange market
rate

6.

7.

8.

Liabilities to
non-euro area
residents denomi-
nated in euro

Liabilities to euro
area residents
denominated in
foreign currency

Liabilities to
non-euro area
residents denomi-
nated in foreign
currency

8.1. Deposits, balances

and other liabilities

Current accounts.
Liabilities under
transactions using foreign currency assets or gold

repo transactions; usually investment

Borrowing according to the conditions of ERM II

SDR-denominated item which shows the amount of SDRs
respective
that were
country/NCB

originally

allocated

the

to

8.2.

Liabilities arising
from the credit
facility under ERM II

9.

Counterpart of
special drawing
rights allocated by
the IMF

10.

Intra-Eurosystem lia-
bilities

Nominal value,
translation at the
year-end foreign
exchange market rate

Nominal value,
translation at the
year-end foreign
exchange market rate

Nominal value,
translation at the
year-end foreign
exchange market rate

10.1. Liabilities equivalent

ECB balance sheet item, denominated in euro

Nominal value

to the transfer of
foreign reserves

10.2. Other liabilities
within the
Eurosystem (net)

(a) Net

liabilities arising from balances of TARGET
accounts and correspondent accounts of NCBs i.e. the
net figure of claims and liabilities (see also asset item
(cid:145)Other claims within the Eurosystem (net)(cid:146))

(a) Nominal value

(b) Other

intra-Eurosystem liabilities

that may arise,
including the interim distribution of ECB income on
euro banknotes to NCBs

(b) Nominal value

11.

Items in course of
settlement

Settlement account balances (liabilities), including the float
of giro transfers

Nominal value

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Balance sheet item

Categorisation of contents of balance sheet items

Valuation principle

12. Other liabilities

12.1. Off-balance sheet

instruments revalu-
ation differences

Valuation results of
exchange swaps,
forward rate agreements

foreign exchange forwards,
financial

rate futures,

interest

foreign
swaps,

Net position between
forward and spot, at
foreign exchange market
rate

12.2. Accruals and income
collected in advance

Expenditure falling due in a future period but relating to
the reporting period.
Income received in the reported
period but relating to a future period

Nominal value, foreign
exchange translated at
market rate

12.3. Sundry

13.

Provisions

14.

Revaluation accounts

Taxation (suspense) accounts. (Foreign currency) credit or
guarantee cover accounts. Repo transactions with credit
institutions in connection with simultaneous reverse repo
transactions for the management of security portfolios
under asset item (cid:145)Other financial assets(cid:146).
Compulsory deposits other than reserve deposits.
Other minor items.
Current
the
previous year before distribution. Liabilities on a trust
basis.
Customer gold deposits

income (net accumulated profit), profit of

For pensions, for exchange and price risks, and for other
purposes e.g. expected future expenses and contributions
according to Article 49.2 of the Statute with respect to
central banks of Member States whose derogations have
been abrogated

(a) Revaluation accounts related to price movements (for
gold, for every type of euro-denominated security, for
every type of foreign currency-denominated security,
market valuation differences related to interest rate
risk derivatives);
related to
foreign exchange rate movements (for every currency
exchange
including
net
swaps/forwards and SDRs)

revaluation accounts

position

foreign

held,

Nominal value or (repo)
cost

Customer gold deposits
Market value

Cost/nominal value

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

(b) Special

accounts

revaluation

from
contributions according to Article 49.2 of the Statute
with respect to central banks of Member States whose
derogations have been abrogated (see Article 10.5).

stemming

15.

Capital and reserves

15.1. Capital

Paid-up capital

15.2. Reserves

Legal reserves, according to Article 33 of the Statute and
contributions according to Article 49.2 of the Statute with
respect
to central banks of Member States whose
derogations have been abrogated

16.

Profit for the year

Nominal value

Nominal value

Nominal value

Assets

Reporting year

Previous year

Liabilities

Reporting year

Previous year

(EUR millions) (1)

ANNEX III

Annual balance sheet of the ECB

Gold and gold receivables

1. Banknotes in circulation

Claims on non-euro area residents denominated in foreign currency

2.1.

Receivables from the IMF

2.2.

Balances with banks and security investments, external loans
and other external assets

Claims on euro area residents denominated in foreign currency

Claims on non-euro area residents denominated in euro

4.1.

Balances with banks, security investments and loans

4.2.

Claims arising from the credit facility under ERM II

2.

Liabilities to euro area credit
policy operations denominated in euro

institutions related to monetary

2.1.

Current accounts (covering the minimum reserve system)

2.2.

Deposit facility

2.3.

Fixed-term deposits

2.4.

Fine-tuning reverse operations

2.5.

Deposits related to margin calls

3. Other liabilities to euro area credit institutions denominated in

euro

1.

2.

3.

4.

5.

Lending to euro area credit institutions related to monetary policy
operations denominated in euro

4. ECB debt certificates issued

5.1. Main refinancing operations

5.2.

Longer-term refinancing operations

5.3.

Fine-tuning reverse operations

5.4.

Structural reverse operations

5.5. Marginal lending facility

5.6.

Credits related to margin calls

5.

Liabilities to other euro area residents denominated in euro

5.1.

General government

5.2.

Other liabilities

6.

Liabilities to non-euro area residents denominated in euro

7.

Liabilities to euro area residents denominated in foreign currency

8.

Liabilities to non-euro area residents denominated in foreign
currency

6.

7.

8.

Other claims on euro area credit institutions denominated in euro

8.1.

Deposits, balances and other liabilities

Securities of euro area residents denominated in euro

General government debt denominated in euro

8.2.

Liabilities arising from the credit facility under ERM II

9. Counterpart of special drawing rights allocated by the IMF

.

.

3
3
2
0
0
3

E
N

O

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L

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8
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5
7

Assets

Reporting year

Previous year

Liabilities

Reporting year

Previous year

(EUR millions) (1)

9.

Intra-Eurosystem claims

10.

Intra-Eurosystem liabilities

9.1.

9.2.

Claims related to promissory notes backing the issuance of
ECB debt certificates

Claims related to the allocation of euro banknotes within
the Eurosystem

9.3.

Other claims within the Eurosystem (net)

10.

Items in course of settlement

11.

Other assets

11.1. Coins of euro area

11.2. Tangible and intangible fixed assets

11.3. Other financial assets

11.4. Off-balance sheet instruments revaluation differences

11.5. Accruals and prepaid expenses

11.6.

Sundry

12.

Loss for the year

10.1.

Liabilities equivalent to the transfer of foreign reserves

10.2. Other liabilities within the Eurosystem (net)

11.

Items in course of settlement

12. Other liabilities

12.1. Off-balance sheet instruments revaluation differences

12.2. Accruals and income collected in advance

12.3.

Sundry

13.

Provisions

14. Revaluation accounts

15. Capital and reserves

15.1. Capital

15.2. Reserves

16.

Profit for the year

(1) The ECB may alternatively publish exact euro amounts, or amounts rounded in a different manner.

Total assets

Total liabilities

L

5
8
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5
8

E
N

O

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f
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.

3
3
2
0
0
3

3.3.2003

EN

Official Journal of the European Union

L 58/59

ANNEX IV

PUBLISHED PROFIT AND LOSS ACCOUNT OF THE ECB

Profit and loss account for the year ending 31 December (cid:133)

Reporting year

Previous year

(EUR millions) (1)

1.1.1.

Interest income on foreign reserve assets

1.1.2.

Interest
Eurosystem

income arising from the allocation of euro banknotes within the

1.1.3. Other interest income

1.1.

Interest income

1.2.1. Remuneration of NCBs’ claims in respect of foreign reserves transferred

1.2.2. Other interest expense

1.2.

Interest expense

1.

Net interest income

2.1.

Realised gains/losses arising from financial operations

2.2. Write-downs on financial assets and positions

2.3.

Transfer to/from provisions for foreign exchange rate and price risks

2.

Net result of financial operations, write downs and risk provisions

Fees and commissions income

Fees and commissions expense

3.

4.

5.

6.

7.

8.

9.

Net income from fees and commissions (2)

Income from equity shares and participating interests

Other income

Staff costs (3)

Administrative expenses (3)

Depreciation of tangible and intangible fixed assets

Banknote production services (4)

10.

Other expenses

Total net income

(Loss)/profit for the year

(1) The ECB may alternatively publish exact euro amounts, or amounts rounded in a different manner.
(2) The breakdown between income and expense may alternatively be provided in the explanatory notes to the annual accounts.
(3) Including administrative provisions.
(4) This item shall be used in case of outsourced banknote production (for the cost of the services provided by external companies in
charge of the production of banknotes on behalf of the central banks). It is recommended that the costs incurred in connection with
the issue of euro banknotes should be taken to the profit and loss account as they are invoiced or otherwise incurred.