Guideline of the European Central Bank of 10 November 2006 on the legal framework for accounting and financial reporting in the European System of Central Banks (ECB/2006/16)
Date: 2006-11-10
Institutions: European Central Bank
Subjects: European Central Bank, European System of Central Banks, balance sheet, exchange of information, exchange transaction, financial instrument, financial situation, participating country (euro area), standardised accounting system

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(Acts whose publication is not obligatory)

EUROPEAN CENTRAL BANK

GUIDELINE OF THE EUROPEAN CENTRAL BANK

of 10 November 2006

on the legal framework for accounting and financial reporting in the European System of Central Banks

(ECB/2006/16)

(2006/887/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

(5)

Having regard to the Statute of the European System of Central
Banks and of the European Central Bank, and in particular
Articles 12.1, 14.3 and 26.4 thereof,

Guideline ECB/2002/10 of 5 December 2002 on the legal
framework for accounting and financial reporting in the
European System of Central Banks (1) requires significant
amendment. From 1 January 2007 the ESCB will use the
economic approach to record foreign exchange transac-
tions, financial instruments denominated in foreign cur-
rency and related accruals. It is desirable for reasons of
clarity to recast the Guideline in a single text,

Having regard to the contribution of the General Council of the
European Central Bank (ECB) pursuant to the second and third
indents of Article 47.2 of the Statute,

HAS ADOPTED THIS GUIDELINE:

Whereas:

(1)

(2)

(3)

(4)

The European System of Central Banks (ESCB) is subject
to reporting commitments under Article 15 of the Statute.

Pursuant to Article 26.3 of the Statute, the Executive Board
draws up a consolidated balance sheet of the ESCB for
analytical and operational purposes.

CHAPTER I

GENERAL PROVISIONS

Article 1

Definitions

1.

For the purposes of this Guideline:

Pursuant to Article 26.4 of the Statute, for the application
of Article 26 of the Statute the Governing Council estab-
lishes the necessary rules for standardising the accounting
and financial reporting of operations undertaken by the
national central banks (NCBs).

(a)

‘national central banks’ (NCBs) means the NCBs of Member
States that have adopted the euro;

(b)

‘Eurosystem’ means the ECB and the national central banks
of Member States that have adopted the euro;

The disclosure relating to euro banknotes in circulation,
remuneration of net intra-Eurosystem claims/liabilities
resulting from the allocation of euro banknotes within the
Eurosystem, and monetary income should be harmonised
in the NCBs’ published annual financial statements. The
items to be harmonised are indicated with an asterisk in
Annexes IV, VIII and IX.

(c)

‘Eurosystem accounting and financial reporting purposes’
means the purposes for which the ECB produces the finan-
cial statements listed in Annex I
in accordance with
Articles 15 and 26 of the Statute;

(1) OJ L 58, 3.3.2003, p. 1.

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(d)

‘reporting entity’ means the ECB or an NCB;

(e)

‘quarterly revaluation date’ means the date of the last calen-
dar day of a quarter;

(f)

(g)

(h)

‘consolidation’ means the accounting process whereby the
financial figures of various separate legal entities are aggre-
gated as though they were one entity;

‘cash changeover year’ means a period of 12 months from
the date on which euro banknotes and coins acquire the sta-
tus of legal tender in a Member State which has adopted the
euro;

‘banknote allocation key’ means the percentages that result
from taking into account the ECB’s share in the total euro
banknote issue and applying the subscribed capital key to
the NCBs’ share in such total, under Decision ECB/2001/15
of 6 December 2001 on the issue of euro banknotes (1).

Definitions of other technical terms used in this Guideline

2.
are attached as Annex II.

Article 2

Scope of application

This Guideline shall apply to the ECB and to the NCBs for

1.
Eurosystem accounting and financial reporting purposes.

2.
This Guideline’s scope of application shall be limited to the
Eurosystem accounting and financial reporting regime laid down
by the Statute. As a consequence, it does not apply to NCBs’
national reports and financial accounts. In order to achieve con-
sistency and comparability between the Eurosystem and national
regimes, it is recommended that NCBs should, to the extent pos-
sible, follow the rules set out in this Guideline for their national
reports and financial accounts.

Article 3

Basic accounting assumptions

The following basic accounting assumptions shall apply:

(a)

economic reality and transparency: the accounting methods
and financial reporting shall reflect economic reality, shall
be transparent and shall respect the qualitative characteris-
tics of understandability, relevance, reliability and compara-
bility. Transactions shall be accounted for and presented in
accordance with their substance and economic reality and
not merely with their legal form;

(1) OJ L 337, 20.12.2001, p. 52. Decision as last amended by Decision

ECB/2004/9 (OJ L 205, 9.6.2004, p. 17).

(b) prudence: the valuation of assets and liabilities and income
recognition shall be carried out prudently. In the context of
this Guideline, this implies that unrealised gains shall not be
recognised as income in the profit and loss account, but shall
be recorded directly in a revaluation account and that unrea-
lised losses shall be taken at year-end to the profit and loss
account if they exceed previous revaluation gains registered
in the corresponding revaluation account. Hidden reserves
or the deliberate misstatement of items on the balance sheet
and in the profit and loss account shall be inconsistent with
the assumption of prudence;

(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 they affect the condi-
tion of assets or liabilities at the balance sheet date. No
adjustment shall be made for assets and liabilities, but dis-
closure shall be made of those events occurring after the bal-
ance 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 evalu-
ations and decisions;

(d) materiality: deviations from the accounting rules, including
those affecting the calculation of the profit and loss accounts
of the individual NCBs and of the ECB, shall only be allowed
if they can be reasonably considered as immaterial in the
overall context and presentation of the reporting entity’s
financial accounts;

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

concern basis;

(f)

the accruals principle: income and expenses shall be recog-
nised in the accounting period in which they are earned or
incurred and not in the period in which they are received or
paid;

(g) consistency and comparability: the criteria for balance sheet
valuation and income recognition shall be applied consis-
tently in terms of commonality and continuity of approach
within the Eurosystem to ensure comparability of data in the
financial statements.

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Article 4

Recognition of assets and liabilities

CHAPTER II

COMPOSITION AND VALUATION RULES FOR THE BALANCE
SHEET

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;

and

Article 6

Composition of the balance sheet

The composition of the balance sheet of the ECB and NCBs for
Eurosystem financial reporting purposes shall be based on the
structure set out in Annex IV.

(b)

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

Article 7

Balance sheet valuation rules

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

Economic and cash/settlement approaches

The economic approach shall be used as the basis for
1.
recording foreign exchange transactions, financial instruments
denominated in foreign currency and related accruals. Two dif-
ferent
this
techniques have been developed to implement
approach:

(a)

the ‘regular approach’ as set out in Chapters III and IV and
Annex III;

and

(b)

the ‘alternative approach’ as set out in Annex III.

2.
Securities transactions denominated in foreign currency
may continue to be recorded according to the cash/settlement
approach. The related accrued interest including premiums or
discounts shall be recorded on a daily basis from the spot settle-
ment date.

3.
NCBs may use either the economic or the cash/settlement
approach to record any specific euro-denominated transactions,
financial instruments and related accruals.

4. With the exception of quarter-end and year-end account-
ing adjustments and of items disclosed under ‘Other assets’ and
‘Other liabilities’, amounts presented as part of the daily finan-
cial reporting for Eurosystem financial reporting purposes shall
only show cash movements in balance sheet items.

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

2.
The revaluation of gold, foreign currency instruments, secu-
rities and financial instruments, both on-balance-sheet and off-
balance-sheet, shall be performed as at the quarterly revaluation
date at mid-market rates and prices. This shall not preclude
reporting entities from revaluing their portfolios on a more fre-
quent basis for internal purposes, provided that they report items
in their balance sheets only at transaction value during the
quarter.

3.
No distinction shall be made between price and currency
revaluation differences for gold, but a single gold revaluation dif-
ference shall be accounted for, based on the euro price per
defined unit of weight of gold derived from the euro/US dollar
exchange rate on the quarterly revaluation date. Revaluation shall
take place on a currency-by-currency basis for foreign exchange,
including on-balance-sheet and off-balance-sheet transactions,
and on a code-by-code basis i.e. same ISIN number/type for secu-
rities, except for those securities included in the item ‘Other finan-
cial assets’, which shall be treated as separate holdings.

4.
Revaluation bookings shall be reversed at the end of the
next quarter, except for unrealised losses taken to the profit and
loss account at the end of the year; during the quarter any trans-
actions shall be reported at transaction prices and rates.

Article 8

Reverse transactions

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

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A reverse transaction conducted under a reverse repurchase
2.
agreement shall be recorded as a collateralised outward loan on
the assets side of the balance sheet for the amount of the loan.
Securities acquired under 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 reporting entity lending the
funds.

In the case of security lending transactions, the securities
3.
shall remain on the transferor’s balance sheet. Such transactions
shall be accounted for in the same manner as that prescribed for
repurchase operations. If, however, securities borrowed by the
reporting entity acting as the transferee, are not kept in its cus-
tody account at the year-end, the transferee shall establish a pro-
vision for losses if the market value of the underlying securities
has risen since the contract date of the lending transaction. The
transferee shall show a liability for the retransfer of the securities
if in the meantime the securities have been sold.

4.
Collateralised gold transactions shall be treated as repur-
chase 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 trans-
action shall be treated on an accruals basis.

5.
Reverse transactions, including security lending transac-
tions, conducted under an automated security lending pro-
gramme shall only be recorded with effect on the balance sheet
where collateral is provided in the form of cash over the com-
plete maturity of the operation.

(b)

transactions are recorded in the balance sheet at transaction
price;

(c) brokerage commission may be recorded either as a transac-
tion cost to be included in the cost of the asset, or as an
expense in the profit and loss account;

(d)

the amount of the dividend purchased is included in the cost
of the equity instrument. At ex-dividend date, while the pay-
ment 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 are not booked at end-of-period as
they are already reflected in the market price of the equity
instruments with the
equities quoted
ex-dividend;

exception of

(f)

rights issues are treated as a separate asset when issued. The
acquisition cost is calculated based on the equity’s existing
average cost, on the new acquisition’s strike price, and on
the proportion between existing and new equities. Alterna-
tively, the price of the right may be based on the right’s value
in the market, the equity’s existing average cost and the equi-
ty’s market price before the rights issue.

Article 9

Marketable equity instruments

Article 10

Banknotes

1.
This Article applies to marketable equity instruments, that
is to say equity shares or equity funds, whether the transactions
are conducted directly by a reporting entity or by its agent, with
the exception of activities conducted for pension funds, partici-
pating interests, investments in subsidiaries, significant interests
or financial fixed assets.

1.
For the implementation of Article 52 of the Statute, Ban-
knotes of other participating Member States held by an NCB shall
not be accounted for as banknotes in circulation, but as intra-
Eurosystem balances. The procedure for treating banknotes of
other participating Member States shall be the following:

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 for-
eign exchange gains and losses may be performed either on a
net average cost method or on an average cost method.

It is recommended that equity instruments should be

3.
treated in accordance with the following rules:

(a)

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

(a)

the NCB receiving banknotes denominated in national euro
area currency units issued by another NCB shall notify the
issuing NCB on a daily basis of the value of banknotes paid
in to be exchanged, unless a given daily volume is low. The
issuing NCB shall issue a corresponding payment to the
receiving NCB via the TARGET system;

and

(b)

the adjustment of the ‘banknotes in circulation’ figures shall
take place in the books of the issuing NCB on receipt of the
abovementioned notification.

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The ‘banknotes in circulation’ figure in the balance sheets

2.
of NCBs shall be the result of three components:

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

recorded directly in a revaluation account;

(a)

the unadjusted value of euro banknotes in circulation,
including the cash changeover year banknotes denominated
in national euro area currency units for the NCB that adopts
the euro, which shall be calculated according to either of the
following two methods:

Method A:

B = P – D – N – S

Method B:

B = I – R – N

Where:

B is the unadjusted value of ‘banknotes in cir-
culation’

P is the value of banknotes produced or
received from the printer or other NCBs

D is the value of banknotes destroyed

N is the value of national banknotes of the
issuing NCB held by other NCBs (notified but
not yet repatriated)

I is the value of banknotes put into circula-
tion

R is the value of banknotes received

S is the value of banknotes in stock/vault;

(b) minus the amount of the unremunerated claim vis-à-vis the
ECI bank related to the Extended Custodial Inventory (ECI)
programme, in the event of a transfer of ownership of the
ECI programme-related banknotes;

(c) at year-end unrealised losses shall be taken to the profit and
loss account if they exceed previous revaluation gains regis-
tered 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 secu-
rity, or in any currency or in gold holdings against unrea-
lised gains in other securities or currencies or gold.

Premiums or discounts arising on issued and purchased
2.
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, how-
ever, be mandatory for discount securities with a remaining
maturity of more than one year at the time of acquisition.

Accruals for financial assets and liabilities e.g. interest pay-
3.
able and amortised premiums/discounts denominated in foreign
currency shall be calculated and recorded in the accounts on a
daily basis, based on the latest available rates. Accruals for finan-
cial assets and liabilities denominated in euro shall be calculated
and recorded in the accounts at least quarterly. Accruals for other
items shall be calculated and recorded in the accounts at least
annually.

(c) plus or minus the amount of the adjustments resulting from

the application of the banknote allocation key.

4.
Irrespective of the frequency of calculating accruals but sub-
ject to the exceptions referred to in Article 5(4) reporting enti-
ties shall report data at transaction value during the quarter.

CHAPTER III

INCOME RECOGNITION

Article 11

Income recognition

5.
Accruals denominated in foreign currencies shall be trans-
lated at the exchange rate of the recording date and shall have
an impact on the currency position.

Generally, for the calculation of accruals during the year
6.
local practice may apply (i.e. they may be calculated until either
the last business day or the last calendar day of the quarter). How-
ever, at year-end the mandatory reference date shall be
31 December.

1.

The following rules shall apply to income recognition:

(a)

realised gains and realised losses shall be taken to the profit
and loss account;

7.
Currency outflows that entail a change in the holding of a
given currency may give rise to realised foreign exchange gains
or losses.

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Article 12

Cost of transactions

(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 date;

The following general rules shall apply to the cost of

1.
transactions:

(a)

the average cost method shall be used on a daily basis for
gold, foreign currency instruments and securities, to com-
pute the acquisition cost of items sold, having regard to the
effect of exchange rate and/or price movements;

(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 for-
eign currency, it shall be part of that currency’s holding, but
shall affect neither the cost or price of the asset for the pur-
pose of determining the average price, nor that currency’s
cost.

2.

The following special rules shall apply to securities:

(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 shall not be 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 par-
ticular asset;

(c)

income shall be recorded gross with refundable withholding
and other taxes accounted for separately;

(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.

The following special rules shall apply to gold and foreign

3.
exchange:

(c)

the settlement of the principal amounts resulting from
reverse transactions in securities denominated in a foreign
currency or in gold shall be deemed not to entail a change
in the holding of that currency or of gold;

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

(e) where a long position exists, net inflows of currencies and
gold made during the day shall be added, at the average cost
of the inflows 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 outflows,
the calculation of the realised gain or loss shall be based on
the average cost of the respective currency or gold holding
for the 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 above-mentioned
approach. Thus the average cost of the liability position shall
be affected by net outflows, while net inflows shall reduce
the position at the existing weighted average rate/gold price
and shall result in realised gains or losses;

(f)

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

Article 13

General rules

1.
Foreign exchange forward transactions, forward legs of for-
eign 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
average purchase costs and foreign exchange gains and losses.

2.
Interest rate swaps, futures, forward rate agreements, other
interest rate instruments and options 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 either the contract or settlement
date, and shall not affect that holding’s acquisition cost;

3.
Profits and losses arising from off-balance-sheet instru-
ments shall be recognised and treated in a similar manner to
on-balance-sheet instruments.

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Article 14

Foreign exchange forward transactions

Article 16

Interest rate futures

Forward purchases and sales shall be recognised in off-
1.
balance-sheet accounts from the trade date to the settlement date
at the spot rate of the forward transaction. Realised gains and
losses on sale transactions shall be calculated using the average
cost of the currency position on the trade date in accordance
with the daily netting procedure for purchases and sales.

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.

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

At the settlement date the off-balance-sheet accounts shall

3.
be reversed.

3.
Daily changes in the variation margins shall be taken to the
profit and loss account and shall affect the currency position.
The same procedure shall be applied on the closing day of the
open position, regardless of whether or not delivery takes place.
If delivery does take place, the purchase or sale entry shall be
made at market price.

The currency position shall be affected by forward transac-

4.
tions from the trade date at the spot rate.

4.

Fees shall be taken to the profit and loss account.

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 bal-
ance 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 15

Foreign exchange swaps

Forward and spot purchases and sales shall be recognised

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

2.
Forward and spot purchases and sales shall be recognised
in off-balance-sheet accounts from the trade date to the settle-
ment date at the spot rate of the transactions.

Sale transactions shall be recognised at the spot rate of the

3.
transaction. Therefore no gains and losses shall 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.

At the settlement date the off-balance-sheet accounts shall

5.
be reversed.

The foreign currency position shall only change as a result

6.
of accruals denominated in foreign currency.

The forward position shall be valued in conjunction with

7.
the related spot position.

Article 17

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, shall
2.
be recorded on an accruals basis. Payments may be settled on a
net basis per interest rate swap, but accrued interest income and
expense shall be reported on a gross basis.

3.
Interest rate swaps shall be individually revalued and, if nec-
essary, translated into euro at the currency spot rate. It is recom-
mended that unrealised losses taken to the profit and loss account
at the year-end should be amortised in subsequent years and that
the amortisation should be linear. Unrealised revaluation gains
shall be credited to a revaluation account.

4.

Fees shall be taken to the profit and loss account.

Article 18

Forward rate agreements

Forward rate agreements shall be recorded on the trade date

1.
in off-balance-sheet accounts.

2.
The compensation payment to be paid by one party to
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.

3.
If forward rate agreements in a foreign currency are held,
compensation payments shall affect the currency position. Com-
pensation payments shall be translated into euro at the spot rate
at the settlement date.

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All forward rate agreements shall be individually revalued
4.
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 the instrument is closed out or terminated. Unrea-
lised revaluation gains shall be credited to a revaluation account.

5.

Fees shall be taken to the profit and loss account.

Article 19

Forward transactions in securities

Forward transactions in securities shall be accounted for in accor-
dance with either of the following two methods:

1. Method A:

(a)

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

2. Method B:

(a)

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

(b) at the quarter-end a security shall be revalued 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 the
revaluation price and the same position valued at the aver-
age cost of the balance sheet position. At the quarter-end,
forward purchases shall be subject to the revaluation pro-
cess described in Article 7. The revaluation result shall be
equal to the difference between the spot price and the aver-
age cost of the 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 commit-
ments 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 settle-
ment date;

Article 20

Options

(c) at the settlement date the off-balance-sheet accounts shall be
reversed and the balance on the revaluation account – if any
– shall be credited to the profit and loss account. The secu-
rity purchased shall be accounted for using the spot price
on the maturity date (actual market price), while the differ-
ence with the original forward price is recognised as a rea-
lised profit or loss;

(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 reporting entity already holds a position in
that currency. If the bond purchased forward is denomi-
nated in a currency in which the reporting entity does not
hold a position, so that it is necessary to purchase the rel-
evant currency, the rules for the purchase of foreign curren-
cies under Article 12(3)(e) shall apply;

forward positions shall be valued on an isolated basis against
the forward market price for the remaining duration of the
transaction. A revaluation loss at the year-end shall be deb-
ited 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.

1.
Options shall be recognised in off-balance-sheet accounts
from the trade date to the exercise or expiry date at the strike
price of the underlying instrument.

Premiums denominated in foreign currency shall be trans-
2.
lated into euro at the exchange rate of either the contract or
settlement date. The premium paid shall be recognised as a sepa-
rate asset, while the premium received shall be recognised as a
separate liability.

3.
If the option is exercised, the underlying instrument shall
be recorded in the balance sheet at the strike price plus or minus
the original premium value. The original option premium
amount shall be adjusted on the basis of unrealised losses taken
to the profit and loss account at the year-end.

4.
If the option is not exercised, the option premium amount,
adjusted on the basis of previous year-end unrealised losses, shall
be taken to the profit and loss account translated at the exchange
rate available on the expiry date.

5.
The currency position shall be affected by the daily varia-
tion margin for future-style options, by any year-end write-down
of the option premium, by the underlying trade at exercise date,
or, at the expiry date, by the option premium. Daily changes in
the variation margins shall be taken to the profit and loss
account.

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Every option contract shall be individually revalued. Unrea-
6.
lised losses taken to the profit and loss account shall not be
reversed in subsequent years against unrealised gains. Unrealised
revaluation gains shall be credited to a revaluation account. There
shall be no netting of unrealised losses in any one option against
unrealised gains in any other option.

7.
For the application of paragraph 6, the market values are
the quoted prices when such prices are available from an
exchange, dealer or a broker or similar entities. When quoted
prices are not available, the market value is determined through
a valuation technique. Such a valuation technique shall be used
consistently over time and it shall be possible to demonstrate
that it provides reliable estimates of prices that would be obtained
in actual market transactions.

8.

Fees shall be taken to the profit and loss account.

CHAPTER V

REPORTING OBLIGATIONS

Article 21

Reporting formats

The NCBs shall report data for Eurosystem financial report-

1.
ing purposes to the ECB in accordance with this Guideline.

2.
The Eurosystem’s reporting formats shall comprise all items
specified in Annex IV. The contents of the items to be included
in the different balance sheet formats are also described in
Annex IV.

The formats of the different published financial statements

3.
shall comply with the following Annexes:

(a)

the published consolidated weekly financial statement of the
Eurosystem after quarter-end in Annex V;

(b)

the published consolidated weekly financial statement of the
Eurosystem during the quarter in Annex VI;

(c)

the consolidated annual balance sheet of the Eurosystem in
Annex VII.

CHAPTER VI

ANNUAL PUBLISHED BALANCE SHEETS AND PROFIT AND
LOSS ACCOUNTS

Article 22

Published balance sheets and profit and loss accounts

CHAPTER VII

CONSOLIDATION RULES

Article 23

General consolidation rules

Eurosystem consolidated balance sheets shall comprise all

1.
the items in the ECB’s and the NCBs’ balance sheets.

2.
There shall be consistency across reports in the consolida-
tion process. All Eurosystem financial statements shall be pre-
pared on a similar basis by applying the same consolidation
techniques and processes.

3.
The ECB shall prepare the Eurosystem’s consolidated bal-
ance sheets. These balance sheets shall respect the need for uni-
form accounting principles and techniques, coterminous financial
periods in the Eurosystem and consolidation adjustments arising
from intra-Eurosystem transactions and positions, and shall take
account of any changes in the Eurosystem’s composition.

4.
Any individual balance sheet items, other than NCBs’ and
the ECB’s intra-Eurosystem balances, shall be aggregated for con-
solidation purposes.

The NCBs’ and the ECB’s balances with third parties shall

5.
be recorded gross in the consolidation process.

Intra-Eurosystem balances shall be presented in the ECB’s

6.
and NCBs’ balance sheets in accordance with Annex IV.

CHAPTER VIII

FINAL PROVISIONS

Article 24

Development, application and interpretation of rules

1.
The ESCB’s Accounting and Monetary Income Committee
(AMICO) shall report to the Governing Council, via the Execu-
tive Board, on the development, application and implementa-
tion of the ESCB’s accounting and financial reporting rules.

It is recommended that NCBs adapt their published annual bal-
ance sheets and profit and loss accounts in accordance with
Annexes VIII and IX.

2.
In interpreting this Guideline, account shall be taken of the
preparatory work, the accounting principles harmonised by Com-
munity law and generally accepted international accounting
standards.

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Article 25

Transitional rules

Article 26

Repeal

1.
NCBs shall revalue all financial assets and liabilities as at
the date on which they become members of the Eurosystem.
Unrealised gains which arose before or on that date shall be sepa-
rated from those unrealised valuation gains that may arise there-
after, and shall remain with the NCBs. The market prices and
rates applied by the NCBs in the opening balance sheets at the
start of Eurosystem participation shall be considered as the aver-
age cost of these NCBs’ assets and liabilities.

Guideline ECB/2002/10 is hereby repealed. References to the
repealed Guideline shall be construed as references to this Guide-
line and shall be read in accordance with the correlation table in
Annex X.

Article 27

Final provisions

2.
It is recommended that unrealised gains which arose before
or on the start of a NCB’s Eurosystem membership should not
be considered as distributable at the time of the transition and
that they should only be treated as realisable/distributable in the
context of transactions that occur after entry into the Eurosystem.

1.

2.

This Guideline shall enter into force on 1 January 2007.

This Guideline applies to all Eurosystem central banks.

Foreign exchange, gold and price gains and losses, arising
3.
as a result of the transfer of assets from NCBs to the ECB, shall
be considered as realised.

This Article shall be without prejudice to any decision to

4.
be adopted under Article 30 of the Statute.

Done at Frankfurt am Main, 10 November 2006.

For the Governing Council of the ECB
The President of the ECB
Jean-Claude TRICHET

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ANNEX I

FINANCIAL STATEMENTS FOR THE EUROSYSTEM

Type of report

Internal/published

Source of legal
requirement

Purpose of the report

1 Daily financial statement

Internal

None

of the Eurosystem

Mainly for liquidity management purposes for
the implementation of Article 12.1 of the Statute

Part of the daily financial statement data is used
for the calculation of monetary income

2 Disaggregated

weekly

Internal

None

financial statement

Basis for the production of the consolidated
weekly financial statement of the Eurosystem

3 Consolidated

weekly
financial statement of the
Eurosystem

Published

Article 15.2 of
the Statute

4 Monthly and quarterly
information of

financial
the Eurosystem

Published and
internal (1)

Statistical Regu-
lations, accord-
ing to which
MFIs have to
deliver data

Consolidated financial statement for monetary
and economic analysis. The consolidated weekly
financial statement of the Eurosystem is derived
from the daily financial statement of the report-
ing day

Statistical analysis

5 Consolidated annual bal-
ance sheet of the Eurosys-
tem

Published

Article 26.3 of
the Statute

Consolidated balance sheet for analytical and
operational purposes

(1) The monthly data feed into the published aggregated statistical data required from monetary financial institutions (MFIs) in the Euro-
pean Union. Moreover, as MFIs, the central banks also have to provide on a quarterly basis more detailed information than is provided
in the monthly data.

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ANNEX II

GLOSSARY

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

Asset: 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): 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 gen-
erated 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: 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: an accounting approach under which accounting events are recorded at the settlement date.

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

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

Discount security: 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 to its nominal or par value.

Economic approach: an accounting approach under which deals are recorded on the transaction date.

Equity instruments: dividend-bearing securities i.e. corporate shares, and securities evidencing an investment in an equity
fund.

Exchange rate: the value of one currency for the purpose of conversion to another.

Extended Custodial Inventory (ECI) programme: a programme which consists of a depot outside the euro area managed by a
commercial bank in which euro banknotes are held in custody on behalf of the Eurosystem for the supply and receipt of
euro banknotes.

Financial asset: any asset that is: (i) cash; or (ii) a contractual right to receive cash or another financial instrument from
another undertaking; or (iii) a contractual right to exchange financial instruments with another undertaking under condi-
tions that are potentially favourable; or (iv) another undertaking’s equity instrument.

Financial fixed assets: financial assets or portfolios held as a permanent investment; this includes inter alia interest-bearing
securities with fixed or determinable payments and a fixed maturity, which the NCB has the positive intent and ability to
hold until maturity

Financial liability: any liability that is a legal obligation to deliver cash or another financial instrument to another undertak-
ing or to exchange financial instruments with another undertaking under conditions that are potentially unfavourable.

Foreign currency holding: 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: 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.

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Foreign exchange swap: 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: 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, depend-
ing on the difference between the contracted interest rate and the market rate on the settlement date.

Forward transactions in securities: 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.

Future-style option: listed options where a variation margin is paid or received on a daily basis.

Impairment: a decline of the recoverable amount below the carrying amount.

Interest rate future: an exchange-traded forward contract. In such a contract, the purchase or sale of an interest rate instru-
ment, 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: the discount rate at which the accounting value of a security is equal to the present value of the
future cash flow.

Interest rate swap: a contractual agreement to exchange cash flows representing streams of periodic interest payments with
a counterparty either in one currency or, in the case of cross-currency transactions, in two different currencies.

Interlinking: the technical infrastructures, design features and procedures which are put in place within or constitute adap-
tations of each national real-time gross settlement system and the ECB payment mechanism (EPM) for the purpose of
processing cross-border payments in the TARGET 1 system.

International Accounting Standards: the International Accounting Standards (IAS), International Financial Reporting Stan-
dards (IFRS) and related Interpretations (SIC-IFRIC interpretations), subsequent amendments to those standards and related
interpretations, future standards and related interpretations adopted by the European Union.

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

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

Market price: 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: the date on which the nominal/principal value becomes due and payable in full to the holder.

Mid-market price: the mid-point between the bid price and the offer price for a security based on quotations for transac-
tions of normal market size by recognised market-makers or recognised trading exchanges, which is used for the quarterly
revaluation procedure.

Mid-market rates: the euro foreign exchange reference rates that are generally based on the regular concertation procedure
between central banks within and outside the ESCB, which normally takes place at 14.15 Central European Time, and
which are used for the quarterly revaluation procedure.

Option: a contract that provides the holder the right, but not the obligation, to buy or sell a specific amount of a given
stock, commodity, currency, index, or debt, at a specified price during a specified period of time or on the date of expiration.

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

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

Reserves: 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: 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.

Reverse sale and repurchase agreement (reverse repo): a contract under which a cash holder 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: an operation whereby the central bank buys (reverse repo) or sells (repo) assets under a repurchase
agreement or conducts credit operations against collateral.

Securities held as an earmarked portfolio: earmarked investments held as counterpart funds consisting of securities, equity
instruments, participating interests and/or investments in subsidiaries, matching an identifiable item on the liabilities side
of the balance sheet, irrespective of whether there is a legal, statutory or other constraint e.g. pension funds, severance
schemes, provisions, capital, reserves.

Settlement: 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: the date on which the final and irrevocable transfer of value has been recorded in the books of the relevant
settlement institution. The settlement’s timing 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.

Spot rate: the rate at which a transaction settles on the spot settlement date. In relation to foreign exchange forward trans-
actions, the spot rate is the rate to which the forward points are applied in order to derive the forward rate.

Spot settlement date: the date on which a spot transaction in a financial instrument is settled in accordance with prevailing
market conventions for that financial instrument.

Straight-line depreciation/amortisation: 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.

Strike price: the specified price on an option contract at which the contract may be exercised.

TARGET: the Trans-European Automated Real-time Gross settlement Express Transfer system.

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

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

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

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ANNEX III

DESCRIPTION OF THE ECONOMIC APPROACH

(including the ‘regular’ and ‘alternative’ approaches in Article 5)

1.

Trade date accounting

1.1.

Trade date accounting may be implemented either by the ‘regular approach’ or the ‘alternative approach’.

1.2.

Article 5(1)(a) refers to the ‘regular approach’.

1.2.1. Transactions are recorded on off-balance sheet accounts on trade date. On settlement date the off-balance sheet

booking entries are reversed, and the transactions are booked on balance sheet accounts.

1.2.2. The foreign currency positions are affected on trade date. Consequently, realised gains and losses arising from net
sales are also calculated on trade date. Net purchases of foreign currency affect the currency holding’s average cost
at trade date.

1.3.

Article 5(1)(b) refers to the ‘alternative approach’.

1.3.1. Contrary to the ‘regular approach’, there is no daily off-balance sheet booking of the agreed transactions which are
settled at a later date. The recognition of realised income and the calculation of new average costs (in case of
foreign exchange purchases) and average prices (in case of securities purchases) is conducted at settlement date (1).

1.3.2. For transactions agreed in one year but maturing in a subsequent year, the income recognition is treated according
to the ‘regular approach’. This means that realised effects from sales would impact on the profit and loss accounts
of the year in which the transaction was agreed and purchases would change the average rates of a holding in the
year in which the transaction was agreed.

1.4.

The following table shows the main characteristics of the two techniques developed for individual foreign exchange
instruments and for securities.

TRADE DATE ACCOUNTING

‘Regular approach’

‘Alternative approach’

FX (1) spot transactions — treatment during the year

FX purchases are booked off-balance sheet at trade date
and affect the average cost of the foreign currency posi-
tion from this date

FX purchases are booked on the balance sheet at settle-
ment date, affecting the average cost of the foreign cur-
rency position from this date

Gains and losses arising from sales are considered as
realised at transaction/trade date. At settlement date, the
off-balance sheet entries are reversed, and on-balance
sheet entries are made

Gains and losses arising from sales are considered as
realised at settlement date. At trade date no on-balance
sheet accounting entry is made

(1)

In the case of foreign exchange forward transactions the currency holding is affected on the spot settlement date (i.e. usually trade
date + two days).

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TRADE DATE ACCOUNTING

‘Regular approach’

‘Alternative approach’

FX forward transactions — treatment during the year

Treated in the same way as described above for spot
transactions, being recorded at the spot rate of the trans-
action

FX purchases are booked off-balance sheet at the spot
settlement date of the transaction, affecting the average
cost of the foreign currency position from this date and
at the spot rate of the transaction

FX sales are booked off-balance sheet at the spot settle-
ment date of the transaction. Gains and losses are con-
sidered as realised at the spot settlement date of the
transaction

At settlement date the off-balance sheet entries are
reversed, and on balance sheet entries are made

For period-end treatment see below

FX spot and forward transactions initiated in year 1 with the spot settlement date of the transaction in year 2

No special arrangement is needed because transactions
are booked at trade date, and gains and losses are recog-
nised at that date

Should be treated as under the ‘regular approach’ (2):

— FX sales are booked off-balance sheet in year 1 in
order to report the FX realised gains/losses in the
financial year in which the transaction was agreed

— FX purchases are booked off-balance sheet in year
1 affecting the average cost of the foreign currency
position from this date

— Year-end revaluation of a currency holding must
take into account net purchases/sales with a spot
settlement date in the following financial year

Securities transactions-treatment during the year

Purchases and sales are recognised off-balance sheet at
trade date. Gains and losses are also recognised at this
date. At settlement date the off-balance sheet entries are
reversed, and on balance sheet entries are made (i.e. the
same treatment as FX spot transactions)

All transactions are recorded at settlement date (but see
below for treatment at period ends). Consequently the
impact on the average cost prices (in the event of pur-
chases) and gains/losses (in the event of sales) is recog-
nised at settlement date

Securities transactions initiated in year 1 with the spot settlement date of the transaction in year 2

No special treatment required as transactions and con-
sequences are already booked at trade date

Realised gains and losses are recognised in year 1 at the
period end (i.e. the same treatment as FX spot transac-
tions), and purchases are included in the year end revalu-
ation process (3)

‘FX’ stands for foreign exchange.

(1)
(2) As usual, the principle of materiality could be applied where these transactions have no material impact on the foreign cur-

rency position and/or in the profit and loss account.

(3) The principle of materiality could be applied where these transactions have no material impact on the foreign currency posi-

tion and/or in the profit and loss account.

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2.

Daily booking of accrued interest, including premiums or discounts

2.1.

2.2.

2.3.

Interest, premium or discount accrued related to financial instruments denominated in foreign currency is calcu-
lated and booked on a daily basis, independently of a real cash flow. This means that the foreign currency position
is affected when this accrued interest is booked, as opposed to only when the interest is received or paid (1).

Coupon accruals and amortisation of premium or discount are calculated and booked from the settlement date of
the purchase of the security until the settlement date of sale, or until maturity date.

The table below outlines the impact of the daily booking of accruals on the foreign exchange holding e.g. interest
payable and amortised premium/discounts:

DAILY BOOKING OF ACCRUED INTEREST AS PART OF THE ECONOMIC APPROACH

Accruals for FX denominated instruments are calculated and booked daily at the exchange rate of the record-
ing day

Impact on the FX holding

Accruals affect the foreign currency position at the time they are booked, not being reversed later on. The accrual
is cleared when the actual cash is received or paid. At settlement date there is thus no effect on the foreign cur-
rency position, since the accrual is included in the position being revalued at the periodic revaluation

(1) Two possible approaches for the recognition of accruals have been identified. The first approach is the ‘calendar day approach’ where
the accruals are recorded every calendar day independently of whether a day is a weekend day, a bank holiday or a business day. The
second approach is the ‘business day approach’ in which accruals are only booked on business days. There is no preference regarding
the choice of approach. However, if the last day of the year is not a business day it needs to be included in the calculation of accruals in
either approach.

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ANNEX IV

COMPOSITION AND VALUATION RULES FOR THE BALANCE SHEET (1)

ASSETS

Balance sheet item (1)

Categorisation of contents of balance sheet
items

Valuation principle

Scope of appli-
cation (2)

Market value

Mandatory

1

1

Gold and gold
receivables

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

2

2

Claims on non-
euro area resi-
dents
denominated in
foreign currency

Claims on counterparties resident out-
side the euro area including interna-
tional and supranational
institutions
and central banks outside the euro area
denominated in foreign currency

2.1

2.1

Receivables
from the IMF

(a) Drawing rights within the

reserve

tranche (net)

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

Mandatory

Nominal value, trans-
lation at the foreign
exchange market rate

National quota minus balances in
euro at the disposal of the IMF.
The No 2 account of
the IMF
(euro account
for administrative
expenses) may be included in this
position or under the item ‘Liabili-
ties
to non-euro area residents
denominated in euro’

(b) Special drawing rights

(b) Special drawing rights

Mandatory

Holdings of special drawing rights
(gross)

Nominal value, trans-
lation at the foreign
exchange market rate

(c) Other claims

(c) Other claims

Mandatory

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

Nominal value, trans-
lation at the foreign
exchange market rate

(1) The disclosure relating to euro banknotes in circulation, remuneration of net intra-Eurosystem claims/liabilities resulting from the allo-
cation of euro banknotes within the Eurosystem, and monetary income should be harmonised in NCBs published annual financial
statements. The items to be harmonised are indicated with an asterisk in Annexes IV, VIII and IX.

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Balance sheet item (1)

Categorisation of contents of balance sheet
items

Valuation principle

2.2

2.2

Balances with
banks and secu-
rity investments,
external loans
and other exter-
nal assets

(a) Balances with banks outside the euro

area

(a) Balances with banks
outside the euro area

accounts,

Current
fixed-term
deposits, day-to-day money, reverse
repo transactions

Nominal value, trans-
lation at the foreign
exchange market rate

Scope of appli-
cation (2)

Mandatory

(b) Security investments other than equity
shares, participations and other securi-
ties under asset item ‘Other financial
assets’ outside the euro area

Marketable notes and bonds, bills,
zero bonds, money market paper,
all
issued by non-euro area resi-
dents

(b) Marketable securities

Mandatory

Market price and for-
eign exchange market
rate

(c) External loans (deposits)

(c) External loans

Mandatory

Loans to and non-marketable secu-
rities other than equity shares, par-
ticipations and other
securities
under asset item ‘Other financial
assets’ issued by non-euro area resi-
dents

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

(d) Other external assets

(d) Other external assets

Mandatory

Non-euro area banknotes and coins

Nominal value, trans-
lation at the foreign
exchange market rate

3

3

Claims on euro
area residents
denominated in
foreign currency

(a) Securities

(a) Marketable securities

Mandatory

Marketable notes and bonds, bills,
zero bonds, money market paper
other than equity shares, participa-
tions and other securities under
asset item ‘Other financial assets’

Market price and for-
eign exchange market
rate

(b) Other claims

(b) Other claims

Mandatory

Non-marketable securities other
than equity shares, participations
and other securities under asset
item ‘Other financial assets’, loans,
deposits, reverse repo transactions,
sundry lending

Deposits at nominal
value, non-
marketable securities
at cost, both trans-
lated at the foreign
exchange market rate

L 348/20

EN

Official Journal of the European Union

11.12.2006

Balance sheet item (1)

Categorisation of contents of balance sheet
items

Valuation principle

Scope of appli-
cation (2)

4

4

Claims on non-
euro area resi-
dents
denominated in
euro

4.1

4.1

Balances with
banks, security
investments and
loans

(a) Balances with banks
outside the euro area

Nominal value

Mandatory

(b) Marketable securities

Mandatory

Market price

(a) Balances with banks outside the euro

area

accounts,

fixed-term
Current
deposits,
day-to-day money.
Reverse repo transactions in con-
nection with the management of
securities denominated in euro

(b) Security investments other than equity
shares, participations and other securi-
ties under asset item ‘Other financial
assets’ outside the euro area

Marketable notes and bonds, bills,
zero bonds, money market paper,
all
issued by non-euro area resi-
dents

(c) Loans outside the euro area

(c) Loans outside the euro

Mandatory

Loans to and non-marketable secu-
rities issued by non-euro area resi-
dents

area

Deposits at nominal
value, non-marketable
securities at cost

(d) Securities issued by entities outside the

(d) Securities issued by

Mandatory

euro area

Securities issued by supranational
or international organisations e.g.
the EIB, irrespective of their geo-
graphical location

entities outside the euro
area

Market price

4.2

4.2

Claims arising
from the credit
facility under
ERM II

Lending according to the ERM II condi-
tions

Nominal value

Mandatory

5

5

Lending to euro
area credit insti-
tutions related
to monetary
policy opera-
tions denomi-
nated in euro

Items 5.1 to 5.5: transactions accord-
ing to the respective monetary policy
instruments described in Annex I to
Guideline
of
31 August 2000 on monetary policy
instruments and procedures of
the
Eurosystem (3)

ECB/2000/7

5.1

5.1 Main refinancing
operations

Regular
reverse
liquidity-providing
transactions with a weekly frequency
and normally a maturity of one week

Nominal value or repo
cost

Mandatory

11.12.2006

EN

Official Journal of the European Union

L 348/21

Balance sheet item (1)

Categorisation of contents of balance sheet
items

Valuation principle

5.2

5.2

Longer-term
refinancing
operations

Regular
reverse
liquidity-providing
transactions with a monthly frequency
three
and normally a maturity of
months

Nominal value or repo
cost

Scope of appli-
cation (2)

Mandatory

5.3

5.3

Fine-tuning
reverse opera-
tions

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

Nominal value or repo
cost

Mandatory

5.4

5.4

Structural
reverse opera-
tions

Reverse transactions adjusting the struc-
tural position of the Eurosystem vis-à-
vis the financial sector

Nominal value or repo
cost

Mandatory

5.5

5.5 Marginal lending

facility

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

Nominal value or repo
cost

Mandatory

5.6

5.6

Credits related
to margin calls

Additional credit to credit institutions,
arising from value increases of underly-
ing assets regarding other credit to these
credit institutions

Nominal value or cost

Mandatory

6

6

Other claims on
euro area credit
institutions
denominated in
euro

7

7

Securities of
euro area resi-
dents denomi-
nated in euro

former

Current accounts, fixed-term deposits,
day-to-day money, reverse repo trans-
actions in connection with the manage-
ment of security portfolios under the
asset item ‘Securities of euro area resi-
dents denominated in euro’, including
transactions resulting from the transfor-
mation of
foreign currency
reserves of the euro area and other
claims. Correspondent accounts with
non-domestic euro area credit institu-
tions. Other claims and operations
unrelated to monetary policy opera-
tions of the Eurosystem. Any claims
stemming from monetary policy opera-
tions initiated by an NCB prior to join-
ing the Eurosystem

Marketable securities other than equity
shares, participations and other securi-
ties under asset item ‘Other financial
assets’: notes and bonds, bills, zero
bonds, money market paper held out-
right, including government securities
stemming from before EMU, denomi-
nated in euro; ECB debt certificates pur-
chased for fine-tuning purposes

Nominal value or cost

Mandatory

Market price

Mandatory

L 348/22

EN

Official Journal of the European Union

11.12.2006

Balance sheet item (1)

Categorisation of contents of balance sheet
items

Valuation principle

8

8

General govern-
ment debt
denominated in
euro

Claims on government stemming from
before EMU (non-marketable securities,
loans)

Deposits/loans at nominal
value, non-marketable
securities at cost

Scope of appli-
cation (2)

Mandatory

-

-

9

Intra-
Eurosystem
claims +

9.1

Participating
interest in ECB +

-

9.2

Claims equiva-
lent to the trans-
fer of foreign
reserves +

-

9.3

-

9.4

Claims related to
promissory
notes backing
the issuance of
ECB debt certifi-
cates +

Net claims
related to the
allocation of
euro banknotes
within the Euro-
system + (*)

Only an NCB balance sheet item

Cost

Mandatory

The ECB capital share of each NCB
according to the Treaty and the respec-
capital key and contributions
tive
according to Article 49.2 of the Statute

Only an NCB balance sheet item

Nominal value

Mandatory

Euro-denominated claims on the ECB in
respect of initial and additional trans-
fers of foreign reserves under the Treaty
provisions

Only an ECB balance sheet item

Nominal value

Mandatory

Nominal value

Mandatory

Promissory notes issued by NCBs, due
to the back-to-back agreement in con-
nection with ECB debt certificates

For the NCBs: net claim related to the
application of the banknote allocation
key i.e. including the ECB’s banknote
issue related intra-Eurosystem balances,
the compensatory amount and its bal-
ancing accounting entry as defined by
Decision ECB/2001/16 on the alloca-
tion of monetary income of the national
central banks of participating Member
States from the financial year 2002

For the ECB: claims related to the ECB’s
banknote issue, according to Decision
ECB/2001/15

-

9.5 Other claims

Net position of the following sub-items:

within the Euro-
system (net) +

(a) Nominal value

Mandatory

(a) net claims arising from balances of
TARGET accounts and correspon-
dent accounts of NCBs i.e. the net
figure of claims and liabilities - see
also liability item ‘Other liabilities
within the Eurosystem (net)’

11.12.2006

EN

Official Journal of the European Union

L 348/23

Balance sheet item (1)

Categorisation of contents of balance sheet
items

Valuation principle

Scope of appli-
cation (2)

(b) Nominal value

Mandatory

(b) claim due to the difference between
monetary income to be pooled and
redistributed. Only relevant for the
period between booking of mon-
etary income as part of the year-
end procedures, and its settlement
on the last working day in January
each year

(c) other intra-Eurosystem claims that
may arise,
including the interim
distribution of ECB income on euro
banknotes to NCBs (*)

(c) Nominal value

Mandatory

9

10

Items in course
of settlement

Settlement account balances (claims),
including the float of cheques in collec-
tion

Nominal value

Mandatory

9

11

Other assets

9

11.1 Coins of euro

area

Euro coins if an NCB is not the legal
issuer

Nominal value

Mandatory

9

11.2 Tangible and

intangible fixed
assets

Land and buildings,
furniture and
equipment including computer equip-
ment, software

Recom-
mended

Cost less depreciation

Depreciation rates:

— computers and

related
hardware/software
and motor vehicles:

4 years

— equipment, furniture

and plant in build-
ing:

10 years

— building and capital-
ised major refurbish-
ment expenditure:

25 years

Capitalisation of expendi-
ture: limit based (below
EUR 10 000 excluding
VAT: no capitalisation)

L 348/24

EN

Official Journal of the European Union

11.12.2006

Balance sheet item (1)

Categorisation of contents of balance sheet
items

Valuation principle

Scope of appli-
cation (2)

9

11.3 Other financial

assets

— Equity instruments, participating
interests and investments in sub-
sidiaries

(a) Marketable equity
instruments

Recom-
mended

Market value

— Securities held as an earmarked

portfolio

— Financial fixed assets

— Reverse repo transactions with
credit institutions in connection
with the management of securities
portfolios under this item

(b) Participating interests
and illiquid equity
shares

Recom-
mended

Cost subject to
impairment

(c)

Investment in subsidiar-
ies or significant inter-
ests

Recom-
mended

Net asset value

(d) Marketable securities

Recom-
mended

Market value

(e) Non-marketable securi-

ties

Cost

Recom-
mended

(f) Financial fixed assets

Recom-
mended

Cost subject to
impairment

Premiums/discounts are
amortised

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

9

11.4 Off-balance
sheet instru-
ments revalua-
tion differences

foreign exchange

Valuation results of foreign exchange
swaps,
forwards,
interest rate swaps, forward rate agree-
ments, forward transactions in securi-
ties, foreign exchange spot transactions
from trade date to settlement date

Net position between for-
ward and spot, at the for-
eign exchange market rate

Mandatory

9

11.5 Accruals and

prepaid expendi-
ture

Income not due in, but assignable to the
reported period. Prepaid expenditure
and accrued interest paid (3)

Nominal value, foreign
exchange translated at
market rate

Mandatory

11.12.2006

EN

Official Journal of the European Union

L 348/25

Balance sheet item (1)

Categorisation of contents of balance sheet
items

Valuation principle

Scope of appli-
cation (2)

9

11.6 Sundry

Advances,
loans, other minor items.
Revaluation suspense accounts (only
item during the year:
balance sheet
unrealised losses at revaluation dates
during the year, which are not covered
by the respective revaluation accounts
under the liability item ‘Revaluation
accounts’). Loans on a trust basis.
Investments related to customer gold
deposits. Coins denominated in national
euro area
currency units. Current
expense (net accumulated loss), loss of
the previous year before coverage. Net
pension assets

Nominal value/cost

Revaluation suspense
accounts

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

Investments related to cus-
tomer gold deposits

Market value

-

12

Loss for the year

Nominal value

Recom-
mended

Revaluation
suspense
accounts

Mandatory

Investments
related to cus-
tomer gold
deposits

Mandatory

Mandatory

Item to be harmonised. See recital 4 of this guideline.

(*)
(1) The numbering in the first column relates to the balance sheet formats given in Annexes V, VI and VII (weekly financial statements and
consolidated annual balance sheet of the Eurosystem). The numbering in the second column relates to the balance sheet format given in
Annex VIII (annual balance sheet of a central bank). The items marked with a ‘+’ are consolidated in the Eurosystem’s weekly financial
statements.

(2) The composition and valuation rules listed in this Annex are considered mandatory for the ECB’s accounts and for all material assets

and liabilities in NCBs’ accounts for Eurosystem purposes i.e. material to the Eurosystem’s operation.

(3) OJ L 310, 11.12.2000, p. 1.
(4)

I.e. accrued interest purchased with a security.

L 348/26

EN

Official Journal of the European Union

11.12.2006

LIABILITIES

Balance sheet item (1)

Categorisation of contents of balance sheet
items

Valuation principle

1

1

Banknotes in
circulation (*)

(a) Euro banknotes, plus/minus adjust-
ments relating to the application of
the banknote allocation key accord-
ing to Guideline ECB/2001/15 and
Decision ECB/2001/16

(a) Nominal value

Scope of appli-
cation (2)

(a) Manda-
tory

(b) Banknotes denominated in national
euro area currency units during the
cash changeover year

(b) Nominal value

(b) Manda-
tory

Items 2.1, 2.2, 2.3 and 2.5: deposits in
euro as described in Annex I to Guide-
line ECB/2000/7

2

2

Liabilities to
euro area credit
institutions
related to mon-
etary policy
operations
denominated in
euro

2.1

2.1

Current
accounts (cover-
ing the mini-
mum reserve
system)

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

Nominal value

Mandatory

2.2

2.2

Deposit facility

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

Nominal value

Mandatory

2.3

2.3

Fixed-term
deposits

Collection for liquidity absorption pur-
poses owing to fine-tuning operations

Nominal value

Mandatory

2.4

2.4

Fine-tuning
reverse opera-
tions

Monetary policy-related transactions
with the aim of liquidity absorption

Nominal value or repo
cost

Mandatory

2.5

2.5

Deposits related
to margin calls

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

Nominal value

Mandatory

3

3

Other liabilities
to euro area
credit institu-
tions denomi-
nated in euro

Repo transactions in connection with
simultaneous reverse repo transactions
for the management of securities port-
folios under asset item ‘Securities of
euro area residents denominated in
euro’. Other operations unrelated to
Eurosystem monetary policy opera-
tions. No current accounts of credit
institutions

Nominal value or repo
cost

Mandatory

11.12.2006

EN

Official Journal of the European Union

L 348/27

Balance sheet item (1)

Categorisation of contents of balance sheet
items

Valuation principle

Scope of appli-
cation (2)

4

4

Debt certificates
issued

Only an ECB balance sheet item - for
the NCBs a transitional balance sheet
item

Nominal value

Mandatory

Debt certificates as described in Annex I
to Guideline ECB/2000/7. Discount
paper, issued with the aim of liquidity
absorption

5

5

Liabilities to
other euro area
residents
denominated in
euro

5.1

5.1

General govern-
ment

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

Nominal value

Mandatory

Nominal value

Mandatory

Nominal value or repo
cost

Mandatory

5.2

5.2 Other liabilities

6

6

Liabilities to
non-euro area
residents
denominated in
euro

Current accounts of staff, companies
and clients including financial institu-
tions listed as exempt from the obliga-
tion to hold minimum reserves – see
liability item 2.1, etc.; fixed-term depos-
its, deposits repayable on demand

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

Balances of TARGET accounts of cen-
tral banks of non-participating Member
States

Current accounts. liabilities under repo
transactions; usually investment trans-
actions using foreign currency assets or
gold

Nominal value, translation
at the foreign exchange
market rate

Mandatory

7

7

8

8

Liabilities to
euro area resi-
dents denomi-
nated in foreign
currency

Liabilities to
non-euro area
residents
denominated in
foreign currency

8.1

8.1

Deposits, bal-
ances and other
liabilities

Current accounts. Liabilities under repo
transactions; usually investment trans-
actions using foreign currency assets or
gold

Nominal value, translation
at the foreign exchange
market rate

Mandatory

L 348/28

EN

Official Journal of the European Union

11.12.2006

Balance sheet item (1)

Categorisation of contents of balance sheet
items

Valuation principle

8.2

8.2

Liabilities arising
from the credit
facility under
ERM II

Borrowing according to the ERM II con-
ditions

Nominal value, translation
at the foreign exchange
market rate

Scope of appli-
cation (2)

Mandatory

9

9

Counterpart of
special drawing
rights allocated
by the IMF

-

-

10

Intra-
Eurosystem
liabilities +

10.1 Liabilities

equivalent to the
transfer of for-
eign reserves +

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

allocated

the

Nominal value, translation
at the market rate

Mandatory

Only an ECB balance
denominated in euro

sheet

item

Nominal value

Mandatory

-

10.2 Liabilities related

Only an NCB balance sheet item

Nominal value

Mandatory

to promissory
notes backing
the issuance of
ECB debt certifi-
cates +

Promissory notes issued to the ECB, due
to the back-to back-agreement in con-
nection with ECB debt certificates

-

10.3 Net liabilities

Only an NCB balance sheet item

Nominal value

Mandatory

related to alloca-
tion of euro ban-
knotes within
the Eurosys-
tem + (*)

For the NCBs: net liability related to the
application of the banknote allocation
key i.e. including the ECB’s banknote
issue related intra-Eurosystem balances,
the compensatory amount and its bal-
ancing accounting entry as defined by
Decision ECB/2001/16

-

10.4 Other liabilities
within the Euro-
system (net) +

Net position of the following sub-items:

(a) Nominal value

Mandatory

(a) net liabilities arising from balances
of TARGET accounts and corre-
spondent accounts of NCBs i.e. the
net figure of claims and liabilities -
see also asset item ‘Other claims
within the Eurosystem (net)’

11.12.2006

EN

Official Journal of the European Union

L 348/29

Balance sheet item (1)

Categorisation of contents of balance sheet
items

Valuation principle

Scope of appli-
cation (2)

(b) Nominal value

Mandatory

(b)

liability due
to the difference
between monetary income to be
pooled and redistributed. Only rel-
evant for the period between book-
ing of monetary income as part of
the year-end procedures, and its
settlement at the last working day
in January each year

(c) other

intra-Eurosystem liabilities
including the
that may arise,
interim distribution of ECB income
on euro banknotes to NCBs (*)

(c) Nominal value

Mandatory

10

11

Items in course
of settlement

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

Nominal value

Mandatory

10

12

Other liabilities

10

12.1 Off-balance
sheet instru-
ments revalua-
tion differences

foreign exchange

Valuation results of foreign exchange
forwards,
swaps,
interest rate swaps, forward rate agree-
ments, forward transactions in securi-
ties, foreign exchange spot transactions
from trade date to settlement date

Net position between for-
ward and spot, at the for-
eign exchange market rate

Mandatory

10

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

Mandatory

10

12.3 Sundry

Nominal value or (repo)
cost

Recom-
mended

Customer gold deposits

Market value

Customer gold
deposits

Mandatory

Taxation suspense accounts. Foreign
currency credit or guarantee cover
accounts. Repo transactions with credit
institutions in connection with simulta-
neous reverse repo transactions for the
management of securities portfolios
under asset item ‘Other financial assets’.
Compulsory deposits other than reserve
deposits. Other minor items. Current
income (net accumulated profit), profit
of the previous year before distribution.
Liabilities on a trust basis. Customer
gold deposits. Coins in circulation in the
event that an NCB is the legal issuer.
Banknotes in circulation denominated
in national euro area currency units that
have ceased to be legal tender but are
still
cash
changeover year, if not shown under
liability item Provisions.

in circulation after

the

Net pension liabilities

L 348/30

EN

Official Journal of the European Union

11.12.2006

Balance sheet item (1)

Categorisation of contents of balance sheet
items

Valuation principle

Scope of appli-
cation (2)

Recom-
mended

10

13

Provisions

11

14

Revaluation
accounts

12

15

Capital and
reserves

12

15.1 Capital

12

15.2 Reserves

Cost/nominal value

For pensions, for foreign exchange rate,
interest rate and gold price risks, and for
other purposes e.g. expected future
expenses, provisions for national euro
area currency units that have ceased to
be legal tender but are still in circula-
tion after the cash changeover year if
these banknotes are not shown under
liability item ‘Other liabilities/Sundry’

The contributions from NCBs to the
ECB according to Article 49.2 of the
consolidated with the
Statute
respective amounts disclosed under
asset item 9.1 +

are

Mandatory

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

type

foreign

Revaluation accounts related to price
movements for gold, for every type
for
of euro-denominated securities,
currency-
every
of
for options;
denominated securities,
market valuation differences
related
to interest rate risk derivatives; revalua-
foreign
tion accounts
exchange rate movements for every cur-
rency net position held, including for-
eign exchange
swaps/forwards and
SDRs

related

to

The contributions from NCBs accord-
ing to Article 49.2 of the Statute to the
ECB are consolidated with the respec-
tive amounts disclosed under asset
item 9.1 +

Paid-up capital -the ECB’s capital is con-
solidated with the capital shares of the
participating NCBs

Nominal value

Mandatory

reserves

Legal
Retained earnings

and other

reserves.

Nominal value

Mandatory

The contributions from NCBs to the
ECB according to Article 49.2 of the
Statute
consolidated with the
respective amounts disclosed under
asset item 9.1 +

are

10

16

Profit for the
year

Nominal value

Mandatory

Item to be harmonised. See recital 4 of this guideline.

(*)
(1) The numbering in the first column relates to the balance sheet formats given in Annexes V, VI and VII (weekly financial statements and
consolidated annual balance sheet of the Eurosystem). The numbering in the second column relates to the balance sheet format given in
Annex VIII (annual balance sheet of a central bank). The items marked with a ‘+’ are consolidated in the Eurosystem’s weekly financial
statements.

(2) The composition and valuation rules listed in this Annex are considered mandatory for the ECB’s accounts and for all material assets

and liabilities in NCBs’ accounts for Eurosystem purposes i.e. material to the Eurosystem’s operation.

Consolidated weekly financial statement of the Eurosystem: format to be used for publication after quarter-end

ANNEX V

.

1
1
1
2
2
0
0
6

.

Assets

Balance
as at …

Difference compared to last
week due to

transactions

quarter-end
adjustments

Liabilities

(EUR million)

Difference compared to last
week due to

E
N

transactions

quarter-end
adjustments

Balance
as at …

1
2

3

4

5

6

7
8
9

Gold and gold receivables
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 cur-
rency
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
Lending to euro area credit institutions related to monetary
policy operations denominated in euro
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
Other claims on euro area credit institutions denominated
in euro
Securities of euro area residents denominated in euro
General government debt denominated in euro
Other assets

1
2

3

4
5

6
7

8

Banknotes in circulation
Liabilities to euro area credit institutions related to mon-
etary policy operations denominated in euro
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
Other liabilities to euro area credit institutions denomi-
nated in euro
Debt certificates issued
Liabilities to other euro area residents denominated in
euro
5.1 General government
5.2 Other liabilities
Liabilities to non-euro area residents denominated in euro
Liabilities to euro area residents denominated in foreign
currency
Liabilities to non-euro area residents denominated in for-
eign currency
8.1 Deposits, balances and other liabilities
8.2 Liabilities arising from the credit facility under ERM II
Counterpart of special drawing rights allocated by the IMF

9
10 Other liabilities
11 Revaluation accounts
12 Capital and reserves

Totals/sub-totals may not add up, due to rounding.

Total assets

Total liabilities

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
U
n
o
n

i

L

3
4
8
/
3
1

Consolidated weekly financial statement of the Eurosystem: format to be used for publication during the quarter

ANNEX VI

Assets

Balance as
at …

Difference
compared to
last week due
to
transactions

Liabilities

(EUR million)

Difference
compared to
last week due
to transactions

Balance as
at …

1

2

3

4

5

6

7

8

9

Gold and gold receivables

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

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

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

Other claims on euro area credit institutions denominated in euro

Securities of euro area residents denominated in euro

General government debt denominated in euro

Other assets

1

2

3

4

5

6

7

8

Banknotes in circulation

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

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

Other liabilities to euro area credit institutions denominated in euro

Debt certificates issued

Liabilities to other euro area residents denominated in euro

5.1 General government
5.2 Other liabilities

Liabilities to non-euro area residents denominated in euro

Liabilities to euro area residents denominated in foreign currency

Liabilities to non-euro area residents denominated in foreign cur-
rency

8.1 Deposits, balances and other liabilities
8.2 Liabilities arising from the credit facility under ERM II

9

Counterpart of special drawing rights allocated by the IMF

10 Other liabilities

11 Revaluation accounts

12 Capital and reserves

Totals/sub-totals may not add up, due to rounding.

Total assets

Total liabilities

L

3
4
8
/
3
2

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
U
n
o
n

i

.

1
1
1
2
2
0
0
6

.

ANNEX VII

Consolidated annual balance sheet of the Eurosystem

.

1
1
1
2
2
0
0
6

.

Assets

Reporting
year

Previous
year

Liabilities

(EUR million)

Reporting
year

Previous
year

E
N

1

2

3

4

5

6

7

8

9

Gold and gold receivables

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

Lending to euro area credit institutions related to monetary policy opera-
tions denominated in euro

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

Other claims on euro area credit institutions denominated in euro

Securities of euro area residents denominated in euro

General government debt denominated in euro

Other assets

1

2

3

4

5

6

7

8

Banknotes in circulation

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

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

Other liabilities to euro area credit institutions denominated in euro

Debt certificates issued

Liabilities to other euro area residents denominated in euro

5.1 General government
5.2 Other liabilities

Liabilities to non-euro area residents denominated in euro

Liabilities to euro area residents denominated in foreign currency

Liabilities to non-euro area residents denominated in foreign currency

8.1 Deposits, balances and other liabilities
8.2 Liabilities arising from the credit facility under ERM II

9

Counterpart of special drawing rights allocated by the IMF

10 Other liabilities

11 Revaluation accounts

12 Capital and reserves

Totals/sub-totals may not add up, due to rounding.

Total assets

Total liabilities

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
U
n
o
n

i

L

3
4
8
/
3
3

ANNEX VIII

Annual balance sheet of a central bank (1)

Assets

Reporting
year

Previous
year

Liabilities

1

2

3

4

5

6

7

8

9

Gold and gold receivables

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

Lending to euro area credit institutions related to monetary policy opera-
tions denominated in euro

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

Other claims on euro area credit institutions denominated in euro

Securities of euro area residents denominated in euro

General government debt denominated in euro

Intra-Eurosystem claims

9.1 Participating interest in ECB
9.2 Claims equivalent to the transfer of foreign reserves
9.3 Claims related to promissory notes backing the issuance of ECB debt

certificates

9.4 Net claims related to the allocation of euro banknotes within the

Eurosystem (*)

9.5 Other claims within the Eurosystem (net) (*)

10 Items in course of settlement

1

2

3

4

5

6

7

8

Banknotes in circulation (*)

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

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

Other liabilities to euro area credit institutions denominated in euro

Debt certificates issued

Liabilities to other euro area residents denominated in euro

5.1 General government
5.2 Other liabilities

Liabilities to non-euro area residents denominated in euro

Liabilities to euro area residents denominated in foreign currency

Liabilities to non-euro area residents denominated in foreign currency

8.1 Deposits, balances and other liabilities
8.2 Liabilities arising from the credit facility under ERM II

9

Counterpart of special drawing rights allocated by the IMF

10 Intra-Eurosystem liabilities

10.1 Liabilities equivalent to the transfer of foreign reserves
10.2 Liabilities related to promissory notes backing the issuance of ECB

debt certificates

10.3 Net liabilities related to the allocation of euro banknotes within

the Eurosystem (*)

10.4 Other liabilities within the Eurosystem (net) (*)

L

3
4
8
/
3
4

(EUR million)

(2)

E
N

Reporting
year

Previous
year

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
U
n
o
n

i

.

1
1
1
2
2
0
0
6

.

Assets

Reporting
year

Previous
year

Liabilities

(EUR million)

(2)

Reporting
year

Previous
year

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

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

Item to be harmonised. See recital 4 of this guideline.

(*)
(1) The disclosure relating to euro banknotes in circulation, remuneration of net intra-Eurosystem claims/liabilities resulting from the allocation of euro banknotes within the Eurosystem, and monetary income should be harmonised in NCBs’

published annual financial statements. The items to be harmonised are indicated with an asterisk in Annexes IV, VIII and IX.

(2) Central banks may alternatively publish exact euro amounts, or amounts rounded in a different manner.

Total assets

Total liabilities

.

1
1
1
2
2
0
0
6

.

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
U
n
o
n

i

L

3
4
8
/
3
5

L 348/36

EN

Official Journal of the European Union

11.12.2006

ANNEX IX

Published profit and loss account of a central bank (1) (2)

Profit and loss account for the year ending 31 December …

Reporting year

Previous year

(EUR million) (3)

1.1.

1.2.

1.

2.1.

2.2.

2.3.

2.

3.1.

3.2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

Interest income (*)

Interest expense (*)

Net interest income

Realised gains/losses arising from financial operations

Write-downs on financial assets and positions

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

Net result of financial operations, write-downs and risk provisions

Fees and commissions income

Fees and commissions expense

Net income/expense from fees and commissions

Income from equity shares and participating interests (3)

Net result of pooling of monetary income (3)

Total net income

Other income

Staff costs (4)

Administrative expenses (4)

Depreciation of tangible and intangible fixed assets

Banknote production services (5)

Other expenses

Income tax and other government charges on income

(Loss)/profit for the year

Item to be harmonised. See recital 4 of this guideline.

(*)
(1) The profit and loss account of the ECB takes a slightly different format. See Annex IV to Decision ECB/2006/17.
(2) The disclosure relating to euro banknotes in circulation, remuneration of net intra-Eurosystem claims/liabilities resulting from the allo-
cation of euro banknotes within the Eurosystem, and monetary income should be harmonised in NCBs’ published annual financial
statements. The items to be harmonised are indicated with an asterisk in Annexes IV, VIII and IX.

Including administrative provisions.

(3) Central banks may alternatively publish exact euro amounts, or amounts rounded in a different manner.
(4)
(5) This item is 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
both national banknotes and euro banknotes should be taken to the profit and loss account as they are invoiced or otherwise incurred.

11.12.2006

EN

Official Journal of the European Union

L 348/37

ANNEX X

CORRELATION TABLE

Guideline ECB/2002/10

This Guideline

Article 5(1)

Article 5(2)

—

Article 5(3)

—

Article 8(3)

Article 8(4)

Article 8(5)

Article 8(6)

—

Article 10(a)

—

Article 10(b)

—

Article 12(3)(c)

Article 12(3)(d)

Article 12(3)(e)

Article 16(5)

Article 16(6)

Article 16(7)

Article 17(3)

Article 17(4)

Article 17(5)

—

Article 20

Article 21

Article 22(1)

Article 22(2)

Article 22(3)

Article 22(4)

Article 22(5)

Article 22(6)

Article 23

—

Article 24

Article 25(2)

Article 25(3)

—

Article 5(1)

Article 5(2)

—

Article 5(3)

—

Article 8(3)

Article 8(4)

Article 8(5)

Article 10(1)

Article 10(2)(a)

Article 10(2)(b)

Article 10(2)(c)

Article 12(3)(c)

Article 12(3)(d)

Article 12(3)(e)

Article 12(3)(f)

—

—

—

—

Article 17(3)

Article 17(4)

Article 20

Article 21

Article 22

Article 23(1)

Article 23(3)

Article 23(4)

Article 23(5)

Article 23(6)

Article 23(2)

Article 24

Article 25

Article 26

—

Article 27(2)