Decision (EU) 2024/2938 of the European Central Bank of 14 November 2024 on the annual accounts of the European Central Bank (ECB/2024/32) (recast)

1 The terms defined in Article 1 of Guideline (EU) 2024/2941 (ECB/2024/31) have the same meaning when used in this Decision.

2 Other technical terms used in this Decision have the same meaning as in Annex II to Guideline (EU) 2024/2941 (ECB/2024/31).

The rules set out in this Decision shall apply to the annual accounts of the European Central Bank (ECB) comprising the balance sheet, items recorded in the books of the ECB off-balance-sheet, the profit and loss account and the notes to the annual accounts of the ECB.

The qualitative characteristics defined in Article 3 of Guideline (EU) 2024/2941 (ECB/2024/31) shall apply for the purposes of this Decision.

1 The basic accounting assumptions defined in Article 4 of Guideline (EU) 2024/2941 (ECB/2024/31) shall apply for the purposes of this Decision.

2 In derogation from the first sentence of Article 4(3) of Guideline (EU) 2024/2941 (ECB/2024/31), post-balance sheet events shall only be taken into account until the date on which the Executive Board authorises the submission of the ECB’s annual accounts to the Governing Council for approval.

The rules set out in Article 5 of Guideline (EU) 2024/2941 (ECB/2024/31) shall apply to this Decision.

A financial or other asset/liability shall only be recognised in the balance sheet of the ECB in accordance with Article 6 of Guideline (EU) 2024/2941 (ECB/2024/31).

The composition of the balance sheet shall be based on the structure set out in Annex I.

Taking into due consideration the nature of the ECB’s activities, the Governing Council may establish a provision for financial risks in the balance sheet of the ECB. The Governing Council shall decide on the size and use of the provision on the basis of a reasoned estimate of the ECB’s risk exposure.

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

2 The revaluation of gold, foreign currency instruments, securities (other than securities classified as held-to-maturity, non-marketable securities, and securities held for monetary policy purposes that are accounted for at amortised costs), 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 No distinction shall be made between price and currency revaluation differences for gold, but a single gold revaluation difference shall be accounted for, based on the euro price per defined unit of weight of gold derived from the euro/US dollar exchange rate on the quarterly revaluation date. For foreign exchange, including on-balance-sheet and off-balance-sheet transactions, revaluation shall take place on a currency-by-currency basis. For the purpose of this Article, holdings of special drawing rights (SDRs), including designated individual foreign exchange holdings underlying the SDR basket, shall be treated as one holding. For securities, revaluation shall take place on a code-by-code basis, i.e. same ISIN number/type, while any embedded options shall not be separated for valuation purposes. Securities held for monetary policy purposes or included in the items ‘Other financial assets’ or ‘Sundry’ shall be treated as separate holdings.

4 Marketable securities held for monetary policy purposes shall be treated as separate holdings and shall be valued either at market price or at amortised cost (subject to impairment), depending on monetary policy considerations.

5 Securities classified as held-to-maturity shall be treated as separate holdings and shall be valued at amortised cost (subject to impairment). The same treatment shall apply to non-marketable securities. Securities classified as held-to-maturity may be sold before their maturity when any of the following occurs: (a) if the quantity sold is considered not significant in comparison with the total amount of the held-to-maturity securities portfolio; (b) if the securities are sold during one month before maturity date; (c) under exceptional circumstances, such as a significant deterioration of the issuer’s creditworthiness.

Reverse transactions shall be accounted for in accordance with Article 10 of Guideline (EU) 2024/2941 (ECB/2024/31).

Marketable equity shares shall be accounted for in accordance with Article 11 of Guideline (EU) 2024/2941 (ECB/2024/31).

Marketable investment funds shall be accounted for in accordance with Article 12 of Guideline (EU) 2024/2941 (ECB/2024/31).

The hedging of interest rate risk shall be accounted for in accordance with Article 13 of Guideline (EU) 2024/2941 (ECB/2024/31).

Synthetic instruments shall be accounted for in accordance with Article 14 of Guideline (EU) 2024/2941 (ECB/2024/31).

1 Article 16(1), (2), (3), (5) and (7) of Guideline (EU) 2024/2941 (ECB/2024/31) shall apply to income recognition.

2 Holdings on special revaluation accounts stemming from contributions in accordance with Article 48.2 of the Statute of the European System of Central Banks and of the European Central Bank (hereinafter the ‘Statute of the ESCB’) with respect to central banks of Member States for which the derogation has been abrogated shall be used to offset unrealised losses when exceeding previous revaluation gains registered in the corresponding standard revaluation account as laid down by Article 16(1), point (c) of Guideline (EU) 2024/2941 (ECB/2024/31), prior to the offsetting of such losses in accordance with Article 33.2 of the Statute of the ESCB. The holdings on special revaluation accounts for gold, currencies and securities shall be reduced pro rata in the event of a reduction in the holdings of the relevant assets.

Article 17 of Guideline (EU) 2024/2941 (ECB/2024/31) shall apply to this Decision.

Article 18 of Guideline (EU) 2024/2941 (ECB/2024/31) shall apply to this Decision.

Foreign exchange forward transactions shall be accounted for in accordance with Article 19 of Guideline (EU) 2024/2941 (ECB/2024/31).

Foreign exchange swaps shall be accounted for in accordance with Article 20 of Guideline (EU) 2024/2941 (ECB/2024/31).

Futures contracts shall be accounted for in accordance with Article 21 of Guideline (EU) 2024/2941 (ECB/2024/31).

1 Interest rate swaps shall be accounted for in accordance with Article 22 of Guideline (EU) 2024/2941 (ECB/2024/31).

2 Unrealised losses taken to the profit and loss account at the year-end shall be amortised in subsequent years in accordance with the straight-line method. For forward interest rate swaps, the amortisation shall begin from the value date of the transaction.

Forward rate agreements shall be accounted for in accordance with Article 23 of Guideline (EU) 2024/2941 (ECB/2024/31).

Forward transactions in securities shall be accounted for in accordance with Method A in Article 24(1) of Guideline (EU) 2024/2941 (ECB/2024/31).

Options shall be accounted for in accordance with Article 25 of Guideline (EU) 2024/2941 (ECB/2024/31).

1 The format of the ECB’s published annual balance sheet shall follow the format in Annex II.

2 The format of the ECB’s published profit and loss account shall follow the format in Annex III.

1 In interpreting this Decision, account shall be taken of the preparatory work, the accounting principles harmonised by Union law and generally accepted accounting principles.

2 If a specific accounting treatment is not laid down in this Decision and in the absence of a decision to the contrary by the Governing Council, the ECB shall follow valuation principles in accordance with International Financial Reporting Standards as adopted by the European Union that are relevant to the ECB’s activities and accounts.

3 In extremely rare circumstances where the Governing Council concludes that compliance with a requirement of this Decision would not result in a fair presentation of the annual accounts, the ECB shall depart from that requirement and shall provide the reasons in the notes to the annual accounts.

1 Decision (EU) 2016/2247 (ECB/2016/35) is hereby repealed.

2 References to the repealed Decision shall be construed as references to this Decision and shall be read in accordance with the correlation table in Annex V.

This Decision shall enter into force on 31 December 2024.