2009/98/EC: Decision of the European Central Bank of 11 December 2008 amending Decision ECB/2006/17 on the annual accounts of the European Central Bank (ECB/2008/22)
Date: 2008-12-11
Institutions: European Central Bank
Subjects: European Central Bank, account, balance sheet, financial regulation, standardised accounting system

L 36/22

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Official Journal of the European Union

5.2.2009

EUROPEAN CENTRAL BANK

DECISION OF THE EUROPEAN CENTRAL BANK

of 11 December 2008

amending Decision ECB/2006/17 on the annual accounts of the European Central Bank

(ECB/2008/22)

(2009/98/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Statute of the European System of Central
Banks and of the European Central Bank, and in particular
Article 26.2 thereof,

reserves. While forward interest rate swaps should be
accounted for in the same manner as ‘plain vanilla’
interest rate swaps, foreign exchange futures and equity
futures should be accounted for in the same manner as
interest rate futures,

Whereas:

(1)

(2)

Decision ECB/2006/17 of 10 November 2006 on the
annual accounts of the European Central Bank (1) needs
to be amended to reflect policy decisions and market
developments.

The European Central Bank (ECB) has
revised its
disclosure policy for securities transactions with a view
to enhance further the transparency of the ECB’s annual
accounts. As part of the revised policy, securities that
previously qualified as financial fixed assets should be
reclassified from the balance sheet item ‘Other financial
assets’ to the appropriate item under the heading ‘asset’
depending on the origin of
the currency
denomination and on whether the securities are held-
to-maturity. Moreover, all financial instruments that are
part of an earmarked portfolio should be included under
the item ‘Other financial assets’.

the issuer,

HAS DECIDED AS FOLLOWS:

Article 1

Amendments

Decision ECB/2006/17 is amended as follows:

1. Article 8 is amended as follows:

(a) Paragraph 2 is replaced by the following:

of

The

foreign

revaluation

‘2.
gold,
currency
instruments, securities other
than those classified as
held-to-maturity and non-marketable securities, as well
as financial instruments, both on-balance-sheet and off-
balance-sheet, shall be performed at the year-end at mid-
market rates and prices.’

(3)

Decision ECB/2006/17 does not contain specific rules on
the accounting of forward interest rate swaps, foreign
exchange futures and equity futures. Such instruments
are increasingly used in the financial markets and may
the ECB’s foreign
be relevant

to the management of

(1) OJ L 348, 11.12.2006, p. 38.

(b) The following paragraph 4 is added:

‘4.
Securities classified as held-to-maturity and non-
marketable securities shall be valued at amortised costs
and shall be subject to impairment.’

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2. Article 10 is replaced by the following:

4. In Article 17 the following sentence is added:

‘Article 10

Marketable equity instruments

Marketable equity instruments shall be accounted for in
accordance with Article 9 of Guideline ECB/2006/16.’

‘In the case of forward interest rate swaps the amortisation
shall begin from the value date of the transaction.’

5. Annexes I and III to Decision ECB/2006/17 are amended in

accordance with the Annex to this Decision.

Article 2

Final provision

3. Article 16 is replaced by the following:

This Decision shall enter into force on 31 December 2008.

‘Article 16

Future contracts

Done at Frankfurt am Main, 11 December 2008.

Future contracts shall be accounted for in accordance with
Article 16 of Guideline ECB/2006/16.’

The President of the ECB

Jean-Claude TRICHET

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Official Journal of the European Union

5.2.2009

ANNEX

Annexes I and III to Decision ECB/2006/17 are amended as follows:

1. The table entitled ‘Assets’ in Annex I is replaced by the following:

‘ASSETS

Balance sheet item

Categorisation of contents of balance sheet
items

Valuation principle

1

Gold and gold
receivables

Market value

Assets

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:
(i) upgrading or downgrading trans­
actions; and (ii) gold location or purity
swaps where there is a difference of
more than one business day between
release and receipt

2

Claim on non-euro
area residents
denominated in
foreign currency

Claims on counterparties resident
outside the euro area including inter­
national and supranational institutions
and central banks outside the euro area
denominated in foreign currency

2.1 Receivables from the

(a) Drawing rights within the reserve

(a) Drawing rights within the reserve tranche

International
Monetary Fund (IMF)

tranche (net)

(net)

Nominal value, translation 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 item or
under the item “Liabilities to non-
euro area residents denominated in
euro”

(b) Special drawing rights

(b) Special drawing rights

Holdings of special drawing rights
(gross)

Nominal value, translation at the
foreign exchange market rate

(c) Other claims

(c) Other claims

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

Nominal value, translation at the
foreign exchange market rate

2.2 Balances with banks

(a) Balances with banks outside the euro

(a)

and security
investments, external
loans and other
external assets

area other than those under asset item
“Other financial assets”

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

Balances with banks outside the euro
area

Nominal value, translation at the
foreign exchange market rate

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Balance sheet item

Categorisation of contents of balance sheet
items

Valuation principle

(b) Security investments outside the euro

(b)(i) Marketable securities other than held-

area other than those under asset item
“Other financial assets”

Notes and bonds, bills, zero bonds,
money market paper, equity
instruments held as part of the
foreign reserves, all issued by non-
euro area residents

to-maturity

Market price and foreign exchange
market rate

Any premiums or discounts are
amortised

(b)(ii) Marketable securities classified as held-

to-maturity

Cost subject to impairment and
foreign exchange market rate

Any premiums or discounts are
amortised

(b)(iii) Non-marketable securities

Cost subject to impairment and
foreign exchange market rate

Any premiums or discounts are
amortised

(b)(iv) Marketable equity instruments

Market price and foreign exchange
market rate

(c)

External loans

Deposits at nominal value,
translated at the foreign exchange
market rate

(c) External loans (deposits) to non-euro
area residents other than those under
asset item “Other financial assets”

(d) Other external assets

(d)

Other external assets

Non-euro area banknotes and coins

Nominal value, translation at the
foreign exchange market rate

3

Claims on euro area
residents denominated
in foreign currency

(a) Security investments inside the euro area
other than those under asset item “Other
financial assets”

Notes and bonds, bills, zero bonds,
money market paper, equity
instruments held as part of the
foreign reserves, all issued by euro
area residents

(a)(i) Marketable securities other than held-

to-maturity

Market price and foreign exchange
market rate

Any premiums or discounts are
amortised

(a)(ii) Marketable securities classified as held-

to-maturity

Cost subject to impairment and
foreign exchange market rate

Any premiums or discounts are
amortised

(a)(iii) Non-marketable securities

Cost subject to impairment and
foreign exchange market rate

Any premiums or discounts are
amortised

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Official Journal of the European Union

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Balance sheet item

Categorisation of contents of balance sheet
items

Valuation principle

(a)(iv) Marketable equity instruments

Market price and foreign exchange
market rate

(b)

Other claims

Deposits and other lending at
nominal value, translated at the
foreign exchange market rate

(b) Other claims on euro area residents

other than those under asset item “Other
financial assets”

Loans, deposits, reverse repo trans­
actions, sundry lending

4

Claims on non-euro
area residents
denominated in euro

4.1 Balances with banks,
security investments
and loans

(a) Balances with banks outside the euro

(a)

area other than those under asset item
“Other financial assets”

Balances with banks outside the euro
area

Nominal value

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

(b) Security investments outside the euro

(b)(i) Marketable securities other than held-

area other than those under asset item
“Other financial assets”

Equity instruments, notes and bonds,
bills, zero bonds, money market
paper, all issued by non-euro area
residents

to-maturity Market price

Any premiums or discounts are
amortised

(b)(ii) Marketable securities classified as held-

to-maturity

Cost subject to impairment

Any premiums or discounts are
amortised

(b)(iii) Non-marketable securities

Cost subject to impairment

Any premiums or discounts are
amortised

(b)(iv) Marketable equity instruments

Market price

(c) Loans to non-euro area residents other
than those under asset item “Other
financial assets”

(c)

Loans outside the euro area

Deposits at nominal value

(d) Securities issued by entities outside the
euro area other than those under asset
item “Other financial assets”

Securities issued by supranational or
international organisations, e.g. the
European Investment Bank, irre­
spective of their geographical
location

(d)(i) Marketable securities other than held-

to-maturity

Market price

Premiums/discounts are amortised

(d)(ii) Marketable securities classified as held-

to-maturity

Cost subject to impairment

Any premiums or discounts are
amortised

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Balance sheet item

Categorisation of contents of balance sheet
items

Valuation principle

(d)(iii) Non-marketable securities

Cost subject to impairment

Any premiums or discounts are
amortised

4.2 Claims arising from

the credit facility
under ERM II

Lending according to the ERM II
conditions

Nominal value

5

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

Items 5.1 to 5.5: transactions according
to the respective monetary policy
instruments described in Annex I to
Guideline ECB/2000/7 of 31 August
2000 on monetary policy instruments
and procedures of the Eurosysten (1)

5.1 Main refinancing
operations

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

Nominal value or repo cost

5.2 Longer-term

refinancing
operations

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

Nominal value or repo cost

5.3 Fine-tuning reverse

operations

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

Nominal value or repo cost

5.4 Structural reverse
operations

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

Nominal value or repo cost

5.5 Marginal lending

facility

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

Nominal value or repo cost

5.6 Credits related to
margin calls

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

Nominal value or cost

6

Other claims on euro
area credit institutions
denominated in euro

Nominal value or cost

Current accounts, fixed-term deposits,
day-to-day money, reverse repo trans­
actions in connection with the
management of security portfolios under
the asset item “Securities of euro area
residents denominated in euro”,
including transactions resulting from the
transformation of former foreign
currency reserves of the euro area, and
other claims. Correspondent accounts
with non-domestic euro area credit
institutions. Other claims and operations
unrelated to monetary policy operations
of the Eurosystem

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Balance sheet item

Categorisation of contents of balance sheet
items

Valuation principle

7

Securities of euro area
residents denominated
in euro

Securities other than those under asset
item “Other financial assets”: Equity
instruments, notes and bonds, bills, zero
bonds, money market paper held
outright including government securities
stemming from before EMU
denominated in euro; ECB debt
certificates purchased for fine-tuning
purposes

(i) Marketable securities other than held-to-

maturity

Market price

Any premiums or discounts are
amortised

(ii) Marketable securities classified as held-to-

maturity

Cost subject to impairment

Any premiums or discounts are
amortised

(iii) Non-marketable securities

Cost subject to impairment

Any premiums or discounts are
amortised

(iv) Marketable equity instruments

Market price

8

9

General government
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

Intra-Eurosystem
claims

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

Only an ECB balance sheet item

Nominal value

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

9.2 Claims related to the
allocation of euro
banknotes within the
Eurosystem

Claims related to the ECB’s banknote
issue, according to Decision
ECB/2001/15 of 6 December 2001
on the issue of euro banknotes (2)

Nominal value

9.3 Other claims within
the Eurosystem (net)

Net position of the following sub-items:

(a) Nominal value

(a) net claims arising from balances of
TARGET2 accounts and corre­
spondent accounts of NCBs, i.e. the
net figure of claims and liabilities —
see also liability item “Other
liabilities within the Eurosystem
(net)”

(b) other intra-Eurosystem claims that
may arise, including the interim
distribution of ECB seigniorage
income to NCBs

(b) Nominal value

10

Items in course of
settlement

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

Nominal value

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Balance sheet item

Categorisation of contents of balance sheet
items

Valuation principle

11 Other assets

11.1 Coins of euro area

Euro coins

Nominal value

11.2 Tangible and

intangible fixed assets

Land and buildings, furniture and
equipment including computer
equipment, software

Cost less depreciation

Depreciation is the systematic allocation
of the depreciable amount of an asset
over its useful life. The useful life is the
period over which a fixed asset is
expected to be available for use by the
entity. Useful lives of individual material
fixed assets may be reviewed on a
systematic basis, if expectations differ
from previous estimates. Major assets may
comprise components with different
useful lives. The lives of such components
should be assessed individually

The cost of intangible assets includes the
price for the acquisition of the intangible
asset. Other direct or indirect costs are to
be expensed

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

11.3 Other financial assets — Participating interests and

(a) Marketable equity instruments

investments in subsidiaries, equities
held for strategic/policy reasons

Market price

— Securities including equities, and
other financial instruments and
balances including fixed-term
deposits and current accounts held as
an earmarked portfolio

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

(b) Participating interests and illiquid equity
shares, and any other equity instruments
held as permanent investments

Cost subject to impairment

(c)

Investment in subsidiaries or significant
interests

Net asset value

(d) Marketable securities other than held-to-

maturity

Market price

Premiums/discounts are amortised

(e) Marketable securities classified as held-to-

maturity or held as a permanent
investment

Cost subject to impairment

Any premiums or discounts are
amortised

(f) Non-marketable securities

Cost subject to impairment

(g) Balances with banks and loans

Nominal value, translated at the
foreign exchange market rate if the
balances/deposits are denominated in
foreign currencies

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Balance sheet item

Categorisation of contents of balance sheet
items

Valuation principle

11.4 Off-balance-sheet
instruments
revaluation
differences

11.5 Accruals and prepaid

expenditure

Valuation results of foreign exchange
forwards, foreign exchange swaps,
interest rate swaps, forward rate
agreements, forward transactions in
securities, foreign exchange spot
transactions from trade date to
settlement date

Income not due in, but assignable to the
reported period. Prepaid expenditure and
accrued interest paid (i.e. accrued
interest purchased with a security)

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

Nominal value, foreign exchange
translated at market rate

11.6 Sundry

(a) Advances, loans and other minor
items. Loans on a trust basis

(a) Nominal value or cost

(b) Investments related to customer gold

(b) Market value

deposits

(c) Net pension assets

(c) As per Article 22(3)

Nominal value

12

Loss for the year

(1) OJ L 310, 11.12.2000, p. 1.
(2) OJ L 337, 20.12.2001, p. 52.’

2. In Annex III, the words ‘Transfer to/from provisions for foreign exchange rate and price risks’ in the first column of
the table under subheading 2.3 are replaced by the words ‘Transfer to/from provisions for foreign exchange rate,
interest rate and gold price risks’.