Guideline (EU) 2024/2941 of the European Central Bank of 14 November 2024 on the legal framework for accounting and financial reporting in the European System of Central Banks (ECB/2024/31) (recast)

Official Journal EN of the European Union L series 2024/2941 11.12.2024 GUIDELINE (EU) 2024/2941 OF THE EUROPEAN CENTRAL BANK of 14 November 2024 on the legal framework for accounting and financial reporting in the European System of Central Banks (ECB/2024/31) (recast) THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK, Having regard to the Treaty on the Functioning of the European Union, Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 26.4 thereof, Whereas: (1) Guideline (EU) 2016/2249 of the European Central Bank (ECB/2016/34)(1)has been substantially amended several times. Since further amendments are to be made, that Guideline should be recast in the interests of clarity. (2) Pursuant to Article 26.3 of the Statute of the European System of Central Banks and of the European Central Bank (hereinafter the ‘Statute of the ESCB’), the Executive Board draws up a consolidated balance sheet of the European System of Central Banks (ESCB) for analytical and operational purposes and to that end, this Guideline establishes the principles and rules applicable to national central banks (NCBs) in relation to the Eurosystem accounting and financial reporting regime. (3) Those principles and rules should set out, together with its scope of application, the main qualitative characteristics, basic accounting assumptions and approaches driving the Eurosystem accounting and financial reporting regime. (4) The composition and valuation rules should include the possibility for the NCBs to establish in their balance sheets a provision to cover financial risks. The balance sheet item ‘Risk provisions’ should allow for the separate recording on the annual balance sheet of the provisions for risks that have not materialised. In addition, the information relating to: (a) euro banknotes in circulation; (b) the remuneration of net intra-Eurosystem claims and liabilities resulting from the allocation of euro banknotes within the Eurosystem; and (c) monetary income, should be harmonised in the NCBs’ published annual financial statements. (5) Income should be recognised in the period in which it is earned. Realised gains and losses should be recorded in the profit and loss account. Unrealised gains should not be recognised as income but transferred directly in a revaluation account. Unrealised losses should be recorded in the profit and loss account if, at the year-end, they exceed previous revaluation gains accumulated in the corresponding revaluation account. (6) The NCBs should report data for Eurosystem financial reporting in accordance with the principles and rules established in this Guideline, (1) Guideline (EU) 2016/2249 of the European Central Bank of 3 November 2016 on the legal framework for accounting and financial reporting in the European System of Central Banks (ECB/2016/34) (OJ L 347, 20.12.2016, p. 37). ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 1/51EN OJ L, 11.12.2024 HAS ADOPTED THIS GUIDELINE: CHAPTER I GENERAL PROVISIONS Article 1 Definitions 1. For the purposes of this Guideline: (a) ‘national central bank’ or ‘NCB’ means the national central bank of a Member State whose currency is the euro; (b) ‘Eurosystem accounting and financial reporting purposes’ means the purposes for which the ECB produces the financial statements listed in Annex I in accordance with Articles 15 and 26 of the Statute of the ESCB; (c) ‘reporting entity’ means the ECB or an NCB; (d) ‘quarterly revaluation date’ means the date of the last calendar day of a quarter; (e) ‘cash changeover year’ means a period of 12 months from the date on which euro banknotes and coins acquire the status of legal tender in a Member State whose currency is the euro; (f) ‘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/2010/29 of the European Central Bank(2); (g) ‘consolidation’ means the accounting process whereby the financial figures of various separate legal entities are aggregated as though they were one entity; (h) ‘credit institution’ means either: (a) a credit institution within the meaning of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council(3), that is subject to supervision by a competent authority; or (b) another credit institution within the meaning of Article 123(2) of the Treaty that is subject to scrutiny of a standard comparable to supervision by a competent authority. 2. Definitions of other technical terms used in this Guideline are set out in the Glossary attached as Annex II. Article 2 Scope of application 1. This Guideline shall apply to the ECB and to the NCBs for 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 of the ESCB. As a consequence, it shall not apply to NCBs’ national reports and financial accounts. In order to achieve consistency and comparability between the Eurosystem and national regimes, it is recommended that NCBs should, to the extent possible, follow the rules set out in this Guideline for their national reports and financial accounts. (2) Decision ECB/2010/29 of the European Central Bank of 13 December 2010 on the issue of euro banknotes (OJ L 35, 9.2.2011, p. 26). (3) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1). 2/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 Article 3 Qualitative characteristics The following qualitative characteristics shall apply: (1) economic reality and transparency: the accounting methods and financial reporting shall reflect economic reality, be transparent and respect the qualitative characteristics of understandability, relevance, reliability and comparability. Transactions shall be accounted for and presented in accordance with their substance and economic reality and not merely with their legal form; (2) 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 unrealised 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; (3) 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; (4) consistency and comparability: the criteria for balance sheet valuation and income recognition shall be applied consistently in terms of commonality and continuity of approach within the Eurosystem to ensure comparability of data in the financial statements. Article 4 Basic accounting assumptions The following basic accounting assumptions shall apply: (1) going concern basis: accounts shall be prepared on a going concern basis; (2) accruals principle: income and expenses shall be recognised in the accounting period in which they are earned or incurred and not in the period in which they are received or paid; (3) 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 condition of assets or liabilities at the balance sheet date. No adjustment shall be made for assets and liabilities, but disclosure shall be made of those events occurring after the balance sheet date if they do not affect the condition of assets and liabilities at the balance sheet date, but which are of such importance that non-disclosure would affect the ability of the users of the financial statements to make proper evaluations and decisions. Article 5 Economic and cash/settlement approaches 1. The economic approach shall be used as the basis for recording foreign exchange transactions, financial instruments denominated in foreign currency and related accruals. Two different techniques have been developed to implement this 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 including equity instruments 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 settlement 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. ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 3/51EN OJ L, 11.12.2024 4. With the exception of quarter-end and year-end accounting adjustments and of items disclosed under ‘Other assets’ and ‘Other liabilities’, amounts presented as part of the daily financial reporting for Eurosystem financial reporting purposes shall only show cash movements in balance sheet items. At quarter-end and year-end, the amortisation and any indexation amount payable at maturity as part of the principal amount of index-linked bonds, shall also be included in the carrying value of securities. Article 6 Recognition of assets and liabilities A financial or other asset or liability shall only be recognised in the balance sheet of the reporting entity if all of the following conditions are met: (1) it is probable that any future economic benefit associated with the asset or liability will flow to or from the reporting entity; (2) substantially all of the risks and rewards associated with the asset or liability have been transferred to the reporting entity; (3) the cost or value of the asset to the reporting entity or the amount of the obligation can be measured reliably. CHAPTER II COMPOSITION AND VALUATION RULES FOR THE BALANCE SHEET Article 7 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. Article 8 Provisions for financial risks Taking into due consideration the nature of the activities of the NCBs, an NCB may establish a provision for financial risks in its balance sheet. The NCB shall decide on the size and use of the provision on the basis of a reasoned estimate of the NCB’s risk exposure. Article 9 Balance sheet valuation rules 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, 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 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 frequent basis for internal purposes, provided that they report items in their balance sheets only at transaction value during the quarter. 4/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 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 International Securities Identification Number/type, while any embedded options will 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. 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; any transactions during the quarter shall be reported at transaction prices and rates. 5. 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. 6. 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. Article 10 Reverse transactions 1. A reverse transaction conducted under a repo agreement 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 balance sheet. Securities sold which are to be repurchased under repo 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. 2. A reverse transaction conducted under a reverse repo 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 repo 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. 3. In the case of security lending transactions, the securities shall remain on the transferor’s balance sheet. Security lending transactions where collateral is provided in the form of cash shall be accounted for in the same manner as that prescribed for repurchase operations. Security lending transactions where collateral is provided in the form of securities shall only be recorded on the balance sheet where cash: (a) is exchanged as part of the settlement process; and (b) remains on an account of either the lender or the borrower. 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 repurchase agreements. The gold flows relating to these collateralised transactions shall not be recorded in the financial statements and the difference between the spot and forward prices of the transaction shall be treated on an accruals basis. ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 5/51EN OJ L, 11.12.2024 5. Reverse transactions conducted under an automated security lending programme (including security lending transactions) shall be recorded on the balance sheet, as a minimum, at the end of the reporting period if collateral is provided in the form of cash placed on an account of the relevant NCB or the ECB and this cash is still uninvested. Article 11 Marketable equity shares 1. This Article shall apply to marketable equity shares, whether the transactions are conducted directly by a reporting entity or by its agent, with the exception of activities conducted for participating interests, investments in subsidiaries or significant interests. 2. Marketable equity shares denominated in foreign currencies and disclosed under ‘Other assets’ shall not form part of the overall currency position but shall be part of a separate currency holding. The calculation of the related foreign exchange gains and losses may be performed either on a net average cost method or an average cost method. 3. The revaluation of marketable equity shares shall be performed in accordance with Article 9(3). There shall be no netting between different equity shares. 4. Transactions shall be recorded in the balance sheet at transaction price. 5. Brokerage commission may be recorded either as a transaction cost to be included in the cost of the asset, or as an expense in the profit and loss account. 6. The amount of the dividend purchased shall be included in the cost of the marketable equity shares. At ex-dividend date, the amount of the dividend purchased may be treated as a separate item until the payment of the dividend has been received. 7. Accruals on dividends shall not be booked at the end-of-period as they are already reflected in the market price of the equity shares with the exception of equities quoted ex-dividend. 8. Rights issues shall be treated as a separate asset when issued. The acquisition cost shall be 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. Alternatively, the price of the right may be based on the right’s value in the market, the equity’s existing average cost and the equity’s market price before the rights issue. Article 12 Marketable investment funds 1. This Article shall apply to marketable investment funds which meet the following criteria: (a) they are acquired for investment purposes only with no influence on day-to-day buy and sell decisions; (b) the investment strategy and the mandate of the fund have been determined in advance and all terms and conditions are contractually provided for; (c) the performance of the investment will be evaluated as a single investment in line with the investment strategy of the fund; (d) the fund is a separate entity, irrespective of its legal form, and is managed independently, including the day-to-day investment decisions. Subject to the criteria in points (a) to (d), this Article may also apply to long-term employee benefit funds unless a different accounting framework is applicable. Subject to the criteria in points (a) to (c) and in accordance with the qualitative characteristic set out in Article 3(1), this Article may also apply to equity portfolios that are not a separate legal entity but that are externally managed and strictly replicate the performance of an index-linked fund. For the purposes of this Article, such equity portfolios are regarded as marketable investment funds. 6/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 2. Marketable investment funds denominated in foreign currencies and disclosed under ‘Other assets’ shall not form part of the overall currency position but shall be part of a separate currency holding. The calculation of the related foreign exchange gains and losses may be performed either according to a net average cost method or an average cost method. 3. The revaluation of marketable investment funds shall be performed on a net basis, and not on underlying assets. There shall be no netting between different marketable investment funds. 4. Transactions shall be recorded in the balance sheet at transaction price. 5. Brokerage commission may be recorded either as a transaction cost to be included in the cost of the asset, or as an expense in the profit and loss account. 6. The amount of the dividend purchased shall be included in the cost of the marketable investment fund. At ex-dividend date, the amount of the dividend purchased may be treated as a separate item until the payment of the dividend has been received. 7. Accruals on dividends of the marketable investment fund shall not be booked at end-of-period as they are already reflected in the market price of the marketable investment fund with the exception of equities quoted ex-dividend. Article 13 Hedging of interest rate risk on securities with derivatives 1. Hedging of interest rate risk on a security with a derivative means designating a derivative so that the change in its fair value offsets the expected change in the fair value of the hedged security arising from interest rate movements. 2. Hedged and hedging instruments shall be recognised and treated in accordance with the general provisions, valuation rules, income recognition and instrument-specific requirements set out in this Guideline. 3. In derogation from Articles 3(2), 9(4), 16(1) and (2), 17(1), point (b), and (2), point (d), and 18(2), the following alternative treatment may be applied to the valuation of a hedged security and of a hedging derivative: (a) The security and the derivative shall both be revalued and shown at their market values on the balance sheet as at the end of each quarter. The following asymmetric valuation approach shall be applied to the net amount of unrealised gain or loss on the hedged and hedging instruments: (i) a net unrealised loss shall be taken to the profit and loss account at year end and it is recommended that it is amortised over the remaining life of the hedged instrument; and (ii) a net unrealised gain shall be booked on a revaluation account and reversed at the following revaluation date. (b) Hedge of a security already owned: if the average cost of a hedged security is different from the market price of the security at the inception of the hedge, the following treatment shall be applied: (i) unrealised gains of the security on that date shall be booked on a revaluation account while unrealised losses shall be taken to the profit and loss account; and (ii) the provisions of point (a) shall apply to the changes in market values following the inception date of the hedging relationship. (c) It is recommended that the balance of unamortised premiums and discounts, as at the date when the hedge was set up, is amortised over the remaining life of the hedged instrument. 4. When hedge accounting is discontinued, the security and the derivative that have remained in the books of the reporting entity shall be valued as standalone instruments as of the date of discontinuation in accordance with the general rules set out in this Guideline. ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 7/51EN OJ L, 11.12.2024 5. The alternative treatment specified in paragraph 3 may only be applied if all of the following conditions are met: (a) At the inception of the hedge there is formal documentation of the hedging relationship and the risk management objective and strategy for undertaking the hedge. That documentation shall include all of the following: (i) identification of the derivative used as a hedging instrument; (ii) identification of the related hedged security; and (iii) an assessment of the derivative’s effectiveness in offsetting the exposure to changes in the security’s fair value attributable to the interest rate risk. (b) The hedge is expected to be highly effective and the effectiveness of the hedge can be reliably measured. Both prospective and retrospective effectiveness must be assessed. It is recommended that: (i) the prospective effectiveness should be measured by comparing the past changes in the fair value of the hedged item with past changes in the fair value of the hedging instrument, or by demonstrating a high statistical correlation between the fair value of the hedged item and the fair value of the hedging instrument; and (ii) the retrospective effectiveness should be demonstrated if the ratio between the actual gain/loss on the hedged item and the actual loss/gain on the hedging instrument is within the range of 80 %-125 %. 6. The following shall apply to the hedging of a group of securities: similar interest rate securities may be aggregated and hedged as a group only if all of the following conditions are met: (a) the securities have a similar duration; (b) the group of securities complies with the effectiveness test prospectively and retrospectively; (c) the change in fair value attributable to the hedged risk for each security of the group is expected to be approximately proportional to the overall change in the fair value attributable to the hedged risk of the group of securities. Article 14 Synthetic instruments 1. Instruments combined to form a synthetic instrument shall be recognised and treated separately from other instruments, in accordance with the general provisions, valuation rules, income recognition and instrument-specific requirements set out in this Guideline. 2. In derogation from Articles 3(2), 9(4), 16(1) and 18(2), the following alternative treatment may be applied to the valuation of synthetic instruments: (a) unrealised gains and losses of the instruments combined to form a synthetic instrument are netted at year end. In this case, net unrealised gains shall be recorded in a revaluation account. Net unrealised losses shall be taken to the profit and loss account if they exceed previous net revaluation gains registered in the corresponding revaluation account; (b) securities held as part of a synthetic instrument shall not form part of the overall holding of these securities but shall be part of a separate holding; (c) unrealised losses taken to the profit and loss account at year end and the corresponding unrealised gains shall be separately amortised in subsequent years. 3. If one of the instruments combined expires, is sold, terminated or exercised, the reporting entity shall discontinue prospectively the alternative treatment specified in paragraph 2 and any unamortised valuation gains credited in the profit and loss account in previous years shall be immediately reversed. 4. The alternative treatment specified in paragraph 2 may only be applied if all of the following conditions are met: (a) the individual instruments are managed and their performance is evaluated as one combined instrument, based on either a risk management or investment strategy; (b) on initial recognition, the individual instruments are structured and designated as a synthetic instrument; 8/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 (c) the application of the alternative treatment eliminates or significantly reduces a valuation inconsistency (valuation mismatch) that would arise from applying general rules set out in this Guideline at an individual instrument level; (d) the availability of formal documentation allows the fulfilment of the conditions set out in points (a), (b) and (c) to be verified. Article 15 Banknotes 1. For the implementation of Article 49 of the Statute of the ESCB, banknotes of other Member States whose currency is the euro 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 Member States whose currency is the euro shall be the following: (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 TARGET; 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. 2. The amount of ‘banknotes in circulation’ in the balance sheets of NCBs shall be the result of three components: (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 circulation’; 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 circulation; 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 running the Extended Custodial Inventory (ECI) programme, in the event of a transfer of ownership of the ECI programme-related banknotes; (c) plus or minus the amount of the adjustments resulting from the application of the banknote allocation key. ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 9/51EN OJ L, 11.12.2024 CHAPTER III INCOME RECOGNITION Article 16 Income recognition 1. The following rules shall apply to income recognition: (a) realised gains and realised losses shall be taken to the profit and loss account; (b) unrealised gains shall not be recognised as income, but recorded directly in a revaluation account; (c) at year end, unrealised losses shall be taken to the profit and loss account if they exceed previous revaluation gains registered in the corresponding revaluation account; (d) unrealised losses taken to the profit and loss account shall not be reversed in subsequent years against new unrealised gains; (e) there shall be no netting of unrealised losses in any one security, or in any currency or in gold holdings against unrealised gains in other securities or currencies or gold; (f) at year end, impairment losses shall be taken to the profit and loss account and shall not be reversed in subsequent years unless the impairment decreases and the decrease can be related to an observable event that occurred after the impairment was first recorded. 2. Premiums or discounts arising on issued and purchased securities shall be calculated and presented as part of interest income and shall be amortised over the remaining contractual life of the securities, either according to the straight-line method or the internal rate of return (IRR) method. The IRR method shall, however, be mandatory for discount securities with a remaining maturity of more than one year at the time of acquisition. 3. Accruals for financial assets and liabilities, e.g. interest payable 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 financial 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. 4. Irrespective of the frequency of calculating accruals but subject to the exceptions referred to in Article 5(4) reporting entities shall report data at transaction value during the quarter. 5. Accruals denominated in foreign currencies shall be translated at the exchange rate of the recording date and shall have an impact on the currency position. 6. Generally, for the calculation of accruals during the year local practice may apply, i.e. they may be calculated until either the last business day or the last calendar day of the quarter. However, at year end the mandatory reference date shall be 31 December. 7. Currency outflows that entail a change in the holding of a given currency may give rise to realised foreign exchange gains or losses. Article 17 Cost of transactions 1. The following general rules shall apply to the cost of transactions: (a) the average cost method shall be used on a daily basis for gold, foreign currency instruments and securities, to compute the acquisition cost of items sold, having regard to the effect of exchange rate and/or price movements; 10/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 (b) the average cost of the asset or liability shall be reduced or increased by unrealised losses taken to the profit and loss account at year end; (c) in the case of the acquisition of coupon securities, the amount of coupon income purchased shall be treated as a separate item. In the case of securities denominated in foreign currency, it shall be part of that currency’s holding, but shall not affect the average cost of the security or the relevant currency. 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 particular 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 their purchase price, to the previous day’s holding to produce a new weighted average cost 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 cost. 3. The following special rules shall apply to gold and foreign exchange: (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; (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; (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 rate or gold price of the inflows of the day for each respective currency and gold, to the previous day’s holding, to produce a new weighted average cost. 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 abovementioned 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 cost 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 18 General rules 1. Foreign exchange forward transactions, forward legs of foreign exchange swaps and other currency instruments involving an exchange of one currency for another at a future date shall be included in the net foreign currency positions for calculating average costs and foreign exchange gains and losses. ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 11/51EN OJ L, 11.12.2024 2. Interest rate swaps, futures, forward rate agreements, other interest rate instruments and options, with the exception of options embedded in securities, shall be accounted for and revalued on an item-by-item basis. These instruments shall be treated separately from on-balance-sheet items. 3. Profits and losses arising from off-balance-sheet instruments shall be recognised and treated in a similar manner to on-balance-sheet instruments. Article 19 Foreign exchange forward transactions 1. Forward purchases and sales shall be recognised in off-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. 2. The difference between the spot and the forward rates shall be treated as interest payable or receivable on an accruals basis. 3. At the settlement date the off-balance-sheet accounts shall be reversed. 4. The currency position shall be affected by forward transactions from the trade date at the spot rate. 5. The forward positions shall be valued in conjunction with the spot position of the same currency, offsetting any differences that may arise within a single currency position. A net loss balance shall be debited to the profit and loss account when it exceeds previous revaluation gains registered in the revaluation account. A net profit balance shall be credited to the revaluation account. Article 20 Foreign exchange swaps 1. Forward and spot purchases and sales shall be recognised 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 settlement date at the spot rate of the transactions. 3. Sale transactions shall be recognised at the spot rate of the 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. 5. At the settlement date the off-balance-sheet accounts shall be reversed. 6. The foreign currency position shall only change as a result of accruals denominated in foreign currency. 7. The forward position shall be valued in conjunction with the related spot position. Article 21 Futures contracts 1. Futures contracts shall be recorded on the trade date in 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. 12/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 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. 4. Fees shall be taken to the profit and loss account. Article 22 Interest rate swaps 1. Interest rate swaps shall be recorded on the trade date in off-balance-sheet accounts. 2. The current interest payments, either received or paid, shall 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. Fees shall be taken to the profit and loss account. 4. Interest rate swaps that are not cleared through a central clearing counterparty shall be individually revalued and, if necessary, translated into euro at the currency spot rate. It is recommended that unrealised losses taken to the profit and loss account at year end should be amortised in subsequent years, that in the case of forward interest rate swaps the amortisation should begin from the value date of the transaction and that the amortisation should be linear. Unrealised revaluation gains shall be credited to a revaluation account. 5. For interest rate swaps that are cleared through a central clearing counterparty: (a) 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; (b) daily changes in the variation margins shall be recorded in the profit and loss account and shall affect the currency position; (c) the interest accrual component shall be separated from the realised result and recorded on a gross basis in the profit and loss account. Article 23 Forward rate agreements 1. Forward rate agreements shall be recorded on the trade date 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. Compensation payments shall be translated into euro at the spot rate at the settlement date. 4. All forward rate agreements shall be individually revalued and, if necessary, translated into euro at the currency spot rate. Unrealised losses taken to the profit and loss account at year end shall not be reversed in subsequent years against unrealised profits unless the instrument is closed out or terminated. Unrealised revaluation gains shall be credited to a revaluation account. 5. Fees shall be taken to the profit and loss account. ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 13/51EN OJ L, 11.12.2024 Article 24 Forward transactions in securities Forward transactions in securities shall be accounted for in accordance 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; (b) the average cost of the holding of the traded security shall not be affected until settlement; the profit and loss effects of forward sale transactions shall be calculated on the settlement date; (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 security purchased shall be accounted for using the spot price on the maturity date (actual market price), while the difference compared with the original forward price is recognised as a realised profit or loss; (d) 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 denominated in a currency in which the reporting entity does not hold a position, so that it is necessary to purchase the relevant currency, the rules for the purchase of foreign currencies set out in Article 17(3), point (e), shall apply; (e) 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 year end shall be debited to the profit and loss account, and a revaluation profit shall be credited to the revaluation account. Unrealised losses recognised in the profit and loss account at year end shall not be reversed in subsequent years against unrealised profits unless the instrument is closed out or terminated. (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 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 average cost of the balance sheet position. At the quarter end, forward purchases shall be subject to the revaluation process described in Article 9. The revaluation result shall be equal to the difference between the spot price and the average 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 commitments if the balance sheet position is insufficient, at the time of the sale. Article 25 Options 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. 2. Premiums denominated in foreign currency shall be translated into euro at the exchange rate of either the contract or settlement date. The premium paid shall be recognised as a separate 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 year end. 14/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 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 variation margin for futures-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. 6. With the exception of options embedded in securities, every option contract shall be individually revalued. Unrealised 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, broker or similar entities. When quoted prices are not available, the market value is determined through a valuation technique. This 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 26 Reporting formats 1. The NCBs shall report data for Eurosystem financial reporting 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. 3. The formats of the different published financial statements shall comply with all of the following Annexes: (a) Annex V: the published consolidated weekly financial statement of the Eurosystem after quarter end; (b) Annex VI: the published consolidated weekly financial statement of the Eurosystem during the quarter; (c) Annex VII: the consolidated annual balance sheet of the Eurosystem. CHAPTER VI ANNUAL PUBLISHED BALANCE SHEETS AND PROFIT AND LOSS ACCOUNTS Article 27 Published balance sheets and profit and loss accounts It is recommended that NCBs adapt their published annual balance sheets and profit and loss accounts in accordance with Annexes VIII and IX. ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 15/51EN OJ L, 11.12.2024 CHAPTER VII CONSOLIDATION RULES Article 28 General consolidation rules 1. Eurosystem consolidated balance sheets shall comprise all the items in the ECB’s and the NCBs’ balance sheets. 2. There shall be consistency across reports in the consolidation process. All Eurosystem financial statements shall be prepared on a similar basis by applying the same consolidation techniques and processes. 3. The ECB shall prepare the Eurosystem’s consolidated balance sheets. These balance sheets shall respect the need for uniform 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 consolidation purposes. 5. The NCBs’ and the ECB’s balances with third parties shall be recorded gross in the consolidation process. 6. Intra-Eurosystem balances shall be presented in the ECB’s and NCBs’ balance sheets in accordance with Annex IV. CHAPTER VIII FINAL PROVISIONS Article 29 Development, application and interpretation of rules 1. The ESCB’s Accounting and Monetary Income Committee shall report to the Governing Council, via the Executive Board, on the development, application and implementation of the ESCB’s accounting and financial reporting rules. 2. In interpreting this Guideline, account shall be taken of the preparatory work, the accounting principles harmonised by Union law and generally accepted accounting principles. Article 30 Transitional rules 1. NCBs shall carry out a valuation of financial assets and liabilities in accordance with the requirements of Article 9, as at the date on which they become members of the Eurosystem. Unrealised gains that arose before or on that date shall be separated from any unrealised revaluation gains that may arise thereafter, 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 average cost of these NCBs’ assets and liabilities. 2. It is recommended that unrealised gains that arose before or at the start of an 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 or distributable in the context of transactions that occur after entry into the Eurosystem. 3. Foreign exchange, gold and price gains and losses, arising as a result of the transfer of assets from NCBs to the ECB, shall be considered as realised. 16/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 4. This Article shall be without prejudice to any decision adopted under Article 30 of the Statute of the ESCB. Article 31 Repeal 1. Guideline (EU) 2016/2249 (ECB/2016/34) is repealed from 31 December 2024. 2. References to the repealed Guideline shall be construed as references to this Guideline and shall be read in accordance with the correlation table in Annex XI. Article 32 Taking effect and implementation 1. This Guideline shall take effect on the day of its notification to the national central banks of the Member States whose currency is the euro. 2. The national central banks of the Member States whose currency is the euro shall comply with this Guideline from 31 December 2024. Article 33 Addressees This Guideline is addressed to all Eurosystem central banks. Done at Frankfurt am Main, 14 November 2024. For the Governing Council of the ECB The President of the ECB Christine LAGARDE ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 17/51EN OJ L, 11.12.2024 ANNEX I Financial statements for the Eurosystem Type of report Internal/published Source of legal Purpose of the report requirement 1. Daily financial Internal None Mainly for liquidity management purposes for the statement of the implementation of Article 12.1 of the Statute of the Eurosystem ESCB. Part of the daily financial statement data is used for the calculation of monetary income 2. Disaggregated weekly Internal None Basis for the production of the consolidated weekly financial statement financial statement of the Eurosystem 3. Consolidated weekly Published Article 15.2 of the Consolidated financial statement for monetary and financial statement of the Statute of the economic analysis. The consolidated weekly finan­ Eurosystem ESCB cial statement of the Eurosystem is derived from the daily financial statement of the reporting day 4. Disaggregated Published None Strengthening the Eurosystem’s accountability and monthly financial transparency by allowing for easy access to statement of the information on the assets and liabilities of Eurosystem individual Eurosystem central banks. Provision of information in a harmonised manner on the decentralised implementation of the single monetary policy of the ECB, as well as on non- monetary policy financial activities of the Eurosystem central banks. 5. Monthly Published and Statistical Statistical analysis and quarterly financial internal(1) regulations, information of the according to Eurosystem which MFIs have to deliver data 6. Consolidated annual Published Article 26.3 of the Consolidated balance sheet for analytical and opera­ balance sheet of the Statute of the tional purposes Eurosystem ESCB (1) The monthly data feed into the published aggregated statistical data required from monetary financial institutions (MFIs) in the 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. 18/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 ANNEX II Glossary — Amortisation: the systematic reduction in the accounts of a premium or discount, or of the value of assets over a period of time. — Appropriation: the act of taking ownership of securities, loans or any assets which have been received by a reporting entity as collateral as a means of enforcing the original claim. — Asset: a resource controlled by a reporting entity as a result of past events and from which future economic benefits are expected to flow to the reporting entity. — Automated security lending programme (ASLP): a programme offered by a specialised institution, e.g. a bank which arranges and handles security lending between programme participants, in the form of repo, combined repo and reverse repo or security lending transactions. In the case of a principal-based programme, the specialised institution offering this programme is considered the final counterparty, while in the case of an agency-based programme the specialised institution offering this programme acts only as an agent, and the final counterparty is the entity with which the security lending is effectively conducted. — Average cost: the weighted average method, by which the cost of every purchase is added to the existing book value to produce a new weighted average cost of a currency position, gold, debt or equity instrument. — Capital key: the percentage shares of the shareholdings of each national central bank (NCB) in the European Central Bank. — Cash/settlement approach: an accounting approach under which accounting events are recorded at the settlement date. — Central clearing counterparty: a legal person that interposes itself between the counterparties to contracts traded on one or more financial markets, becoming the buyer to every seller and the seller to every buyer. — Clean price: the transaction price excluding any rebate/accrued interest, but including transaction costs that form part of the price. — Compensatory amount: an adjustment made in the calculation of monetary income in line with Decision (EU) 2024/2939 of the European Central Bank (ECB/2024/33)(1). — Discount: the difference between the par value of a security and its price when this 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 from its nominal or par value. — Earmarked portfolio: earmarked investment held on the assets side of the balance sheet as a counterpart fund, consisting of debt securities, equity shares, investment funds, fixed-term deposits and current accounts, participating interests and/or investments in subsidiaries. It matches an identifiable item on the liabilities side of the balance sheet, irrespective of any legal, statutory or other constraints. — Economic approach: an accounting approach under which deals are recorded on the trade or transaction date. — Emergency liquidity assistance (ELA): Assistance given to a solvent financial institution, or group of solvent financial institutions, that is facing temporary liquidity problems. ELA is provided by the NCBs unless the Governing Council finds that, pursuant to Article 14.4 of the Statute of the ESCB, the provision of ELA interferes with the objectives and tasks of the ESCB. (1) Decision (EU) 2024/2939 of the European Central Bank of 14 November 2024 on the allocation of monetary income of the national central banks of Member States whose currency is the euro (ECB/2024/33) (OJ L, 2024/2939, 11.12.2024, ELI: http://data.europa.eu/ eli/dec/2024/2939/oj). ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 19/51EN OJ L, 11.12.2024 — Equity instruments: dividend-bearing securities, i.e. corporate shares, and securities evidencing an investment in an investment fund. — Exchange rate: the value of one currency for the purpose of conversion to another. — Exchange rate mechanism II (ERM II): the procedures for an exchange-rate mechanism in stage three of Economic and Monetary Union. — Extended Custodial Inventory (ECI) programme: a programme establishing 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: (a) cash; (b) a contractual right to receive cash or another financial instrument from another undertaking; (c) a contractual right to exchange financial instruments with another undertaking under conditions that are potentially favourable; or (d) another undertaking’s equity instrument. — Financial liability: any liability that is a legal obligation to deliver cash or another financial instrument to another undertaking or to exchange financial instruments with another undertaking under conditions that are potentially unfavourable. — Financial risks: market, liquidity and credit risks. — Foreign currency holding: the net position in the respective currency. For the purpose of this definition, special drawing rights (SDRs) are considered as a separate currency; transactions that entail a change of the net position in SDRs are either transactions denominated in SDRs or transactions in foreign exchange replicating the basket composition of the SDRs (having regard to the relevant basket definition and weightings). — 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 a particular day and the amount is to be delivered at a specified future date, more than two working days after the date of the contract, at a given price. This forward rate of exchange consists of the prevailing spot rate plus/minus an agreed premium/discount. — Foreign exchange swap: the simultaneous spot purchase or sale of one currency against another (short leg) and forward sale or 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, depending 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. — Futures contract: an exchange-traded forward contract. In such a contract, the purchase or sale of an underlying instrument is agreed on the contract date to be delivered at a future date, at a given price. Usually no actual delivery takes place as the contract is closed out before the agreed maturity. — Futures-style option: a listed option where a variation margin is paid or received on a daily basis. — Generally accepted accounting principles (GAAP): a common set of accounting principles, standards and procedures that entities use to prepare their financial statements. GAAP are a combination of authoritative standards (set by policy boards) and commonly accepted ways of recording and reporting accounting information. — Hedging: the process of offsetting the risks on financial or other assets or liabilities against one another, so as to reduce the overall consequences of adverse movements in prices, interest rates or exchange rates. — Held-to-maturity securities: securities with fixed or determinable payments and a fixed maturity, which the reporting entity intends to hold until maturity. 20/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 — Impairment: a decline of the recoverable amount below the carrying amount. — 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. — 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. — International Financial Reporting Standards: the International Financial Reporting Standards, International Accounting Standards and related interpretations by, e.g. the Standing Interpretation Committee and International Financial Reporting Interpretations Committee that are adopted by the European Union. — International securities identification number (ISIN): the number issued by the relevant competent issuing authority. — Liability: a present obligation of an undertaking arising from past events, the settlement of which is expected to result in an outflow from the undertaking of resources embodying economic benefits. — Longer term refinancing operations: regular open market operations that are executed by the Eurosystem in the form of reverse transactions that are aimed at providing liquidity with a maturity longer than that of the main refinancing operations to the financial sector. — Main refinancing operation (MRO): a regular open market operation executed by the Eurosystem in the form of a reverse transaction. MROs are conducted through weekly standard tenders and normally have a maturity of one week. — 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. a stock exchange or a non-organised market, e.g. an 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 transactions 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 European System of Central Banks (ESCB), which normally takes place at 14:15 Central European Time, and which are used for the quarterly revaluation procedure. — Monetary income: The income accruing to the NCBs in the performance of the ESCB’s monetary policy function. Monetary income is pooled and allocated amongst the NCBs at the end of each financial year. — 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. — Premium: the difference between the par value of a security and its price when this 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. — Repurchase agreement (repo): an arrangement with the economic purpose of borrowing money whereby an asset, usually a fixed income security, is sold to a buyer without any retention of ownership on the part of the seller, while the seller simultaneously obtains the right and the obligation to repurchase an equivalent asset at a specific price on a future date or on demand. ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 21/51EN OJ L, 11.12.2024 — Reserves: an amount set aside out of distributable profits which is not intended to meet any specific liability, contingency or expected diminution in the 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 the case of assets, and when the latter is lower than the former in the case of liabilities. They include differences in price quotations and/or market exchange rates. — Reverse repurchase agreement (reverse repo): a contract under which a cash holder agrees to the purchase of an asset and, simultaneously, agrees to resell the asset for an agreed price on demand, 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 a reporting entity buys (reverse repo) or sells (repo) assets under a repurchase agreement or conducts credit operations against collateral. — 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 transactions, 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 method: depreciation or amortisation is determined over a given period 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 option may be exercised. — Synthetic instrument: a financial instrument created artificially by combining two or more instruments with the aim of replicating the cash flow and valuation patterns of another instrument. This is normally done via a financial intermediary. — TARGET: the new-generation Trans-European Automated Real-time Gross Settlement Express Transfer system, pursuant to Guideline (EU) 2022/912 of the European Central Bank (ECB/2022/8)(2). — Trade date (also known as transaction date): the date on which a transaction is made. — Transaction costs: costs which 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. (2) Guideline (EU) 2022/912 of the European Central Bank of 24 February 2022 on a new-generation Trans-European Automated Real- time Gross Settlement Express Transfer system (TARGET) and repealing Guideline ECB/2012/27 (ECB/2022/8) (OJ L 163, 17.6.2022, p. 84). 22/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 ANNEX III Description of the economic approach (including the ‘regular’ and ‘alternative’ approaches referred to 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 the trade date. On the 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 the trade date. Consequently, realised gains and losses arising from net sales are also calculated on the trade date. Net purchases of foreign currency affect the currency holding’s average cost at the 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 is conducted at the 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 impact on the profit and loss accounts of the year in which the transaction was agreed and purchases change the average cost 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’ Foreign exchange spot transactions – treatment during the year Foreign exchange purchases are booked off-balance- Foreign exchange purchases are booked on the balance sheet at trade date and affect the average cost of the for­ sheet at settlement date, affecting the average cost of the eign currency position from this date. foreign currency position from this date. Gains and losses arising from sales are considered as rea­ Gains and losses arising from sales are considered as rea­ lised at transaction or trade date. At settlement date, the lised at settlement date. At trade date, no on-balance-sheet off-balance-sheet entries are reversed and on-balance- accounting entry is made. sheet entries are 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 + 2 days. ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 23/51EN OJ L, 11.12.2024 Trade date accounting ‘Regular approach’ ‘Alternative approach’ Foreign exchange forward transactions – treatment during the year Treated in the same way as described above for spot trans­ Foreign exchange purchases are booked off-balance- actions, being recorded at the spot rate of the transaction sheet at the spot settlement date of the transaction, affect­ ing the average cost of the foreign currency position from this date and at the spot rate of the transaction. Foreign exchange sales are booked off-balance-sheet at the spot settlement date of the transaction. Gains and losses are considered as realised at the spot settlement date of the transaction. At settlement date, the off-balance-sheet entries are re­ versed and on-balance-sheet entries are made. For period-end treatment see below. Foreign exchange 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 Should be treated as under the ‘regular approach’(*): are booked at trade date and gains and losses are recog­ — Foreign exchange sales are booked off-balance-sheet nised at that date. in year 1 in order to report the foreign exchange realised gains/losses in the financial year in which the transaction was agreed. — Foreign exchange 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 All transactions are recorded at settlement date; however, trade date. Gains and losses are also recognised at this see below for period-end treatment. Consequently, the date. At settlement date the off-balance-sheet entries are impact on the average cost, in the event of purchases, reversed, and on-balance-sheet entries are made, i.e. the and gains/losses, in the event of sales, is recognised at same treatment as foreign exchange spot transactions. 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 conse­ Realised gains and losses are recognised in year 1 at the quences are already booked at trade date. period end, i.e. the same treatment as foreign exchange spot transactions, and purchases are included in the year-end revaluation process(*). (*) The principle of materiality may be applied where these transactions have no material impact on the foreign currency position and/or in the profit and loss account. 24/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 2. Daily booking of accrued interest, including premiums or discounts 2.1. Interest, premium or discount accrued related to financial instruments denominated in foreign currency is calculated and booked on a daily basis, independently of 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(2). 2.2. 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 the contractual maturity date. 2.3. 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 foreign exchange denominated instruments are calculated and booked daily at the exchange rate of the recording day. Impact on the foreign exchange 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 currency position, since the accrual is included in the position being revalued at the periodic revaluation. (2) Two possible approaches for the recognition of accruals have been identified. The first 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 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. ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 25/51EN OJ L, 11.12.2024 ANNEX IV Composition and valuation rules for the balance sheet(1) ASSETS Balance sheet item(2)(6) Categorisation of contents of balance Valuation principle Scope of sheet items application(3) 1 1 Gold and gold Physical gold, i.e. bars, coins, plates, Market value Mandatory receivables 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: (a) upgrading or downgrading transactions; and (b) gold location or purity swaps where there is a difference of more than one business day between release and receipt 2 2 Claims on Claims on counterparties resident non-euro area outside the euro area, including residents central banks outside the euro area denominated denominated in foreign currency in foreign currency 2.1 2.1 Receivables (a) Drawing rights within the reserve (a) Drawing rights within the Mandatory from the tranche (net) reserve tranche (net) International National quota minus balances Nominal value, translated Monetary in euro at the disposal of the IMF. at the foreign exchange Fund (IMF) The No 2 account of the IMF market rate (euro account for administrative expenses) may be included in this item or under the liability item 6 ‘Liabilities to non-euro area residents denominated in euro’ (b) Special Drawing Rights (SDRs) (b) SDRs Mandatory Holdings of SDRs (gross) Nominal value, translated at the foreign exchange market rate (c) Other claims (c) Other claims Mandatory Loans under special borrowing Nominal value, translated arrangements, deposits made to at the foreign exchange trusts under the management of market rate the IMF 26/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 Balance sheet item(2)(6) Categorisation of contents of balance Valuation principle Scope of sheet items application(3) 2.2 2.2 Balances with (a) Balances with banks outside (a) Balances with banks outside Mandatory banks and the euro area other than the euro area security those under asset item 11.3 Nominal value, translated investments, ‘Other financial assets’ at the foreign exchange external loans Current accounts, fixed-term market rate and other deposits, day-to-day money, external assets reverse repo transactions (b) Security investments outside the euro area other than those under asset item 11.3 ‘Other financial assets’ (b) (i) Marketable debt securities Mandatory Notes and bonds, bills, zero other than held-to- bonds, money market paper, maturity equity shares, investment funds Market price and foreign held as part of the foreign exchange market rate. reserves, all issued by non-euro Any premiums or area residents discounts are amortised (ii) Marketable debt securities Mandatory classified as held-to- maturity Cost subject to impairment and foreign exchange market rate. Any premiums or discounts are amortised (iii) Non-marketable Mandatory securities Cost subject to impairment and foreign exchange market rate. Any premiums or discounts are amortised (iv) Marketable equity shares Mandatory Market price and foreign exchange market rate (v) Marketable Mandatory investment funds Market price and foreign exchange market rate (c) External loans (deposits) outside (c) External loans Mandatory the euro area other than those Deposits at nominal value, under asset item 11.3 ‘Other translated at the foreign financial assets’ exchange market rate ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 27/51EN OJ L, 11.12.2024 Balance sheet item(2)(6) Categorisation of contents of balance Valuation principle Scope of sheet items application(3) (d) Other external assets (d) Other external assets Mandatory Non-euro area banknotes and Nominal value, translated coins at the foreign exchange market rate 3 3 Claims on (a) Security investments inside euro area the euro area other than residents those under asset item 11.3 denominated ‘Other financial assets’ (a) (i) Marketable Mandatory in foreign Notes and bonds, bills, zero debt securities other currency bonds, money market paper, than held-to-maturity equity shares, investment funds Market price and foreign held as part of the foreign exchange market rate. reserves, all issued by euro area Any premiums or residents discounts are amortised (ii) Marketable Mandatory debt securities classified as held-to- maturity Cost subject to impairment and foreign exchange market rate. Any premiums or discounts are amortised (iii) Non-marketable Mandatory securities Cost subject to impairment and foreign exchange market rate. Any premiums or discounts are amortised (iv) Marketable Mandatory equity shares Market price and foreign exchange market rate (v) Marketable Mandatory investment funds Market price and foreign exchange market rate (b) Other claims on euro area (b) Other claims Mandatory residents other than those Deposits and other lending under asset item 11.3 ‘Other at nominal value, translated financial assets’ at the foreign exchange Loans, deposits, reverse repo market rate transactions, sundry lending 28/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 Balance sheet item(2)(6) Categorisation of contents of balance Valuation principle Scope of sheet items application(3) 4 4 Claims on non-euro area residents denominated in euro 4.1 4.1 Balances with (a) Balances with banks outside (a) Balances with Mandatory banks, the euro area other than banks outside the euro security those under asset item 11.3 area investments ‘Other financial assets’ Nominal value and loans Current accounts, fixed-term deposits, day-to-day money. Reverse repo transactions in connection with the management of securities denominated in euro (b) Securities issued by entities outside the euro area other than those under asset item 11.3 ‘Other financial assets’ (b) (i) Marketable Mandatory or asset item 7.1 ‘Securities debt securities other held for monetary policy than held-to-maturity purposes’ Market price. Any Equity shares, investment funds, premiums or discounts notes and bonds, bills, zero are amortised bonds, money market paper, all issued by non-euro area (ii) Marketable Mandatory residents debt securities classified as held-to- maturity Cost subject to impairment. Any premiums or discounts are amortised (iii) Non-marketable Mandatory securities Cost subject to impairment. Any premiums or discounts are amortised (iv) Marketable Mandatory equity shares Market price (v) Marketable Mandatory investment funds Market price (c) Loans to non-euro (c) Loans to non-euro Mandatory area residents other than those area residents under asset item 11.3 ‘Other Deposits at nominal value financial assets’ ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 29/51EN OJ L, 11.12.2024 Balance sheet item(2)(6) Categorisation of contents of balance Valuation principle Scope of sheet items application(3) 4.2 4.2 Claims arising Lending according to the ERM II Nominal value Mandatory from the conditions credit facility under the Exchange Rate Mechanism II (ERM II) 5 5 Lending to Items 5.1 to 5.5: transactions euro area according to the respective monetary credit policy instruments described in institutions Guideline (EU) 2015/510 of the related to European Central Bank monetary (ECB/2014/60)(4) policy operations denominated in euro 5.1 5.1 Main Regular liquidity-providing reverse Nominal value or repo cost Mandatory refinancing transactions with a weekly frequency operations and normally a maturity of one week 5.2 5.2 Longer-term Regular liquidity-providing reverse Nominal value or repo cost Mandatory refinancing transactions normally with a operations monthly frequency, with a maturity longer than that of the main refinancing operations 5.3 5.3 Fine-tuning Reverse transactions, executed as ad Nominal value or repo cost Mandatory reverse hoc transactions for fine-tuning operations purposes 5.4 5.4 Structural Reverse transactions adjusting the Nominal value or repo cost Mandatory reverse structural position of the Eurosystem operations vis-à-vis the financial sector 5.5 5.5 Marginal Overnight liquidity facility at a pre- Nominal value or repo cost Mandatory lending specified interest rate against eligible facility assets (standing facility) 5.6 5.6 Credits Additional credit to credit Nominal value or cost Mandatory related to institutions, arising from value margin calls increases of underlying assets regarding other credit to these credit institutions 30/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 Balance sheet item(2)(6) Categorisation of contents of balance Valuation principle Scope of sheet items application(3) 6 6 Other claims Current accounts, fixed-term Nominal value or cost Mandatory on euro area deposits, day-to-day money, reverse credit repo transactions in connection with institutions the management of security denominated portfolios under the asset item 7 in euro ‘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 including Emergency Liquidity Assistance in the form of collateralised loans. Any claims stemming from monetary policy operations initiated by an NCB prior to joining the Eurosystem 7 7 Securities of euro area residents denominated in euro 7.1 7.1 Securities Securities held for monetary policy (a) Marketable securities Mandatory held for purposes (including securities Accounted for depending monetary purchased for monetary policy on monetary policy policy purposes that are issued by considerations: purposes supranational or international (i) Market price organisations, or multilateral Any premiums or development banks, irrespective of discounts are their geographical location). amortised European Central Bank (ECB) debt (ii) Cost subject to certificates purchased for fine-tuning impairment (cost when purposes the impairment is covered by a provision under liability item 13.2(a) ‘Other Provisions’). Any premiums or discounts are amortised (b) Non-marketable Mandatory securities Cost subject to impairment. Any premiums or discounts are amortised ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 31/51EN OJ L, 11.12.2024 Balance sheet item(2)(6) Categorisation of contents of balance Valuation principle Scope of sheet items application(3) 7.2 7.2 Other Securities other than those under (a) Marketable Mandatory securities asset item 7.1 ‘Securities held for debt securities other than monetary policy purposes’, under held-to-maturity asset item 8 ‘General government Market price. Any debt denominated in euro’, and premiums or discounts are under asset item 11.3 ‘Other amortised financial assets’: notes and bonds, bills, zero bonds, money market paper held outright. Equity shares (b) Marketable Mandatory and investment funds debt securities classified as held-to-maturity Cost subject to impairment. Any premiums or discounts are amortised (c) Non-marketable Mandatory securities Cost subject to impairment. Any premiums or discounts are amortised (d) Marketable equity shares Mandatory Market price (e) Marketable Mandatory investment funds Market price 8 8 General Claims on government stemming Deposits/loans at nominal Mandatory government from before Economic and Monetary value, non-marketable securities debt Union (EMU) (non-marketable at cost denominated securities, loans) in euro — 9 Intra- Eurosystem claims(+) — 9.1 Participating Only an NCB balance sheet item Cost Mandatory interest in The ECB capital share of each NCB in ECB(+) accordance with the Treaty and the respective capital key and contributions in accordance with Article 48.2 of the Statute of the ESCB — 9.2 Claims Only an NCB balance sheet item Nominal value Mandatory equivalent to Euro-denominated claims on the the transfer of ECB in respect of initial and foreign additional transfers of foreign reserves(+) reserves under Article 30 of the Statute of the ESCB 32/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 Balance sheet item(2)(6) Categorisation of contents of balance Valuation principle Scope of sheet items application(3) — 9.3 Claims related Claims related to TARGET; net for the Nominal value Mandatory to TARGET (+) ECB — 9.4 Net claims For the NCBs: net claim related to the Nominal value Mandatory related to the application of the banknote allocation of allocation key, i.e. including the euro ECB’s banknote issue related intra- banknotes Eurosystem balances, the within the compensatory amount and its Eurosystem balancing accounting entry as (+)(*) defined by Decision (EU) 2016/2248 of the European Central Bank (ECB/2016/36)(5) For the ECB: claims related to the ECB’s banknote issue, in accordance with Decision ECB/2010/29 — 9.5 Other claims Net position of the following within the sub-items: Eurosystem (net)(+) (a) correspondent accounts of NCBs (a) Nominal value Mandatory (b) balance due to the difference (b) Nominal value Mandatory between monetary income to be pooled and redistributed. Only relevant for the period between booking of monetary income as part of the year-end procedures, and its settlement on the last working day in January each year (c) other intra-Eurosystem balances (c) Nominal value Mandatory denominated in euro that may arise, including the interim distribution of ECB income(*) 9 10 Items in the Settlement account balances Nominal value Mandatory course of (claims), including the float of settlement cheques in collection 9 11 Other assets 9 11.1 Coins of euro Euro coins if an NCB is not the legal Nominal value Mandatory area issuer ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 33/51EN OJ L, 11.12.2024 Balance sheet item(2)(6) Categorisation of contents of balance Valuation principle Scope of sheet items application(3) 9 11.2 Tangible and Land and buildings, furniture and Cost less depreciation Recommended intangible equipment including computer fixed assets equipment, software Depreciation rates: — computers and related hardware/software and motor vehicles: 4 years — equipment, furniture and plant in building: 10 years — building and capitalised major refurbishment expenditure: 25 years Capitalisation of expenditure: limit based (below EUR 10 000 excluding VAT: no capitalisation) 9 11.3 Other — Participating interests and (a) Marketable equity shares Recommended financial investments in subsidiaries; equity Market price, translated at assets shares and investment funds held the foreign exchange for strategic/policy reasons market rate if denominated — Securities, including equity in foreign currencies shares and investment funds, and other financial instruments (b) Marketable Recommended and balances, e.g. fixed-term investment funds deposits and current accounts, Market price, translated at held as an earmarked portfolio the foreign exchange — Reverse repo transactions with market rate if denominated financial institutions in in foreign currencies connection with the management of securities (c) Participating Recommended portfolios under this asset item interests and non- — Euro denominated reverse repo marketable equity shares, transactions with euro area and any other equity financial institutions other than instruments held as credit institutions in connection permanent investments with the management of Cost subject to impairment securities portfolios other than those held under this item (d) Investment in subsidiaries Recommended or significant interests Net asset value 34/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 Balance sheet item(2)(6) Categorisation of contents of balance Valuation principle Scope of sheet items application(3) (e) Marketable debt securities Recommended other than held-to- maturity Market price, translated at the foreign exchange market rate if denominated in foreign currencies. Any premiums or discounts are amortised (f) Marketable debt securities Recommended classified as held-to- maturity or held as a permanent investment Cost subject to impairment, translated at the foreign exchange market rate if denominated in foreign currencies. Any premiums or discounts are amortised (g) Non-marketable Recommended debt securities Cost subject to impairment. Any premiums or discounts are amortised (h) Balances with banks and Recommended loans Nominal value, translated at the foreign exchange market rate if the balances/ deposits are denominated in foreign currencies 9 11.4 Off-balance- Valuation results of foreign exchange Net position between forward Mandatory sheet forwards, foreign exchange swaps, and spot, at the foreign exchange instruments interest rate swaps (unless daily market rate revaluation variation margin applies), forward differences rate agreements, forward transactions in securities, foreign exchange spot transactions from trade date to settlement date 9 11.5 Accruals and Income not due in, but assignable to Nominal value, translated at the Mandatory prepaid the reported period. Prepaid foreign exchange market rate expenses expenses and accrued interest paid, i.e. accrued interest purchased with a security ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 35/51EN OJ L, 11.12.2024 Balance sheet item(2)(6) Categorisation of contents of balance Valuation principle Scope of sheet items application(3) 9 11.6 Sundry (a) Advances, loans and other (a) Nominal value or cost Recommended minor items. Loans on a trust basis. Coins denominated in national euro area currency units. (b) Only relevant for weekly (b) Nominal value Recommended financial statement and consolidated annual balance sheet of the Eurosystem: Current expense (net accumulated loss), loss of the previous year prior to the approval of the Annual Accounts (c) Revaluation suspense accounts (c) Revaluation difference between Mandatory (only a balance sheet item average cost and market value, during the year: unrealised foreign exchange translated at losses at revaluation dates market rate during the year, which are not covered by the relevant revaluation accounts under the liability item ‘Revaluation accounts’) (d) Investments related to customer (d) Market value Mandatory gold deposits (e) Net pension assets (e) As per Article 29(2) Recommended (f) Outstanding claims and securities (f) Nominal/recoverable value Mandatory arising from the default of eligible (before/after settlement of counterparties or issuers in the losses) context of Eurosystem monetary policy operations (g) Assets or claims (vis-à-vis third (g) Cost (converted at the foreign Mandatory parties) appropriated and/or exchange market rate at the acquired in the context of the time of the acquisition if financial realisation of collateral assets are denominated in submitted by Eurosystem foreign currencies) counterparties in default (*) Items to be harmonised. (1) 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) 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. 36/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 (3) 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. (4) Guideline (EU) 2015/510 of the European Central Bank of 19 December 2014on the implementation of the Eurosystem monetary policy framework (ECB/2014/60) (OJ L 91, 2.4.2015, p. 3). (5) Decision (EU) 2016/2248 of the European Central Bank of 3 November 2016on the allocation of monetary income of the national central banks of Member States whose currency is the euro (ECB/2016/36) (OJ L 347, 20.12.2016, p. 26). (6) With the exception of asset item 7.1, the allocation of balances to those balance sheet items that refer to residency and/or economic sector is based on the classification for statistical purposes. LIABILITIES Balance sheet item(1)(3) Categorisation of contents of balance Valuation principle Scope of sheet items application(2) 1 1 Banknotes in (a) Euro banknotes, plus/minus (a) Nominal value Mandatory circulation adjustments relating to the (*) application of the banknote allocation key in accordance with Decision (EU) 2016/2248 (ECB/2016/36) and Decision ECB/2010/29 (b) Banknotes denominated in (b) Nominal value Mandatory national euro area currency units during the cash changeover year 2 2 Liabilities to Items 2.1, 2.2, 2.3 and 2.5: deposits euro area in euro as described in Guideline credit (EU) 2015/510 (ECB/2014/60) institutions related to monetary policy operations denominated in euro 2.1 2.1 Current Euro accounts of credit institutions Nominal value Mandatory accounts that are included in the list of (covering the financial institutions subject to minimum minimum reserves in accordance reserve with the Statute of the ESCB, except system) for credit institutions exempt from minimum reserve requirements. This item contains primarily accounts used in order to hold minimum reserves and excludes funds of credit institutions that are not freely disposable 2.2 2.2 Deposit Overnight deposits at a pre-specified Nominal value Mandatory facility interest rate (standing facility) 2.3 2.3 Fixed-term Collection for liquidity absorption Nominal value Mandatory deposits purposes owing to fine-tuning operations 2.4 2.4 Fine-tuning Monetary policy-related transactions Nominal value or repo cost Mandatory reverse with the aim of liquidity absorption operations ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 37/51EN OJ L, 11.12.2024 Balance sheet item(1)(3) Categorisation of contents of balance Valuation principle Scope of sheet items application(2) 2.5 2.5 Deposits Deposits of credit institutions, Nominal value Mandatory related to arising from value decreases of margin calls underlying assets regarding credits to these credit institutions 3 3 Other Repo transactions with credit Nominal value or repo cost Mandatory liabilities to institutions for the management of euro area securities portfolios under asset item credit 7 ‘Securities of euro area residents institutions denominated in euro’. Other denominated operations unrelated to Eurosystem in euro monetary policy operations. Funds of credit institutions that are not freely disposable, and accounts of credit institutions exempt from minimum reserve requirements. Any liabilities/deposits stemming from monetary policy operations initiated by a central bank prior to joining the Eurosystem 4 4 Debt Only an ECB balance sheet item – for Cost. Any discounts are Mandatory certificates the NCBs a transitional balance sheet amortised issued item. Debt certificates as described in Guideline (EU) 2015/510 (ECB/2014/60). 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 Current accounts, fixed-term Nominal value Mandatory government deposits, deposits repayable on demand 5.2 5.2 Other Current accounts of staff, companies Nominal value Mandatory liabilities and clients including financial institutions not subject to minimum reserve requirements (see liability item 2.1); repo transactions with financial institutions other than credit institutions for the management of securities other than those under asset item 11.3 ‘Other financial assets’; fixed-term deposits, deposits repayable on demand 6 6 Liabilities to Current accounts, fixed-term Nominal value or repo cost Mandatory non-euro deposits, deposits repayable on area demand including accounts held for residents payment purposes and accounts held denominated for reserve management purposes. in euro Repo transactions for the management of securities denominated in euro. 38/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 Balance sheet item(1)(3) Categorisation of contents of balance Valuation principle Scope of sheet items application(2) Balances of TARGET accounts of central banks of Member States whose currency is not the euro 7 7 Liabilities to Current accounts. Liabilities under Nominal value, translated at the Mandatory euro area repo transactions; usually foreign exchange market rate residents investment transactions using denominated foreign currency assets or gold in foreign currency 8 8 Liabilities to non-euro area residents denominated in foreign currency 8.1 8.1 Deposits, Current accounts. Liabilities under Nominal value, translated at the Mandatory balances and repo transactions; usually foreign exchange market rate other investment transactions using liabilities foreign currency assets or gold 8.2 8.2 Liabilities Borrowing in accordance with the Nominal value, translated at the Mandatory arising from ERM II conditions foreign exchange market rate the credit facility under the Exchange Rate Mechanism II (ERM II) 9 9 Counterpart SDR-denominated item which shows Nominal value, translated at the Mandatory of special the amount of SDRs that were market rate drawing originally allocated to the respective rights country/NCB allocated by the IMF — 10 Intra- Eurosystem liabilities(+) — 10.1 Liabilities Only an ECB balance sheet item Nominal value Mandatory equivalent to denominated in euro the transfer of foreign reserves(+) — 10.2 Liabilities Liabilities related to TARGET; net for Nominal value Mandatory related to the ECB TARGET(+) ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 39/51EN OJ L, 11.12.2024 Balance sheet item(1)(3) Categorisation of contents of balance Valuation principle Scope of sheet items application(2) — 10.3 Net liabilities Only an NCB balance sheet item. Nominal value Mandatory related to For the NCBs: net liability related to allocation of the application of the banknote euro allocation key, i.e. including the ECB’s banknotes banknote issue related intra- within the Eurosystem balances, the Eurosystem compensatory amount and its (+)(*) balancing accounting entry as defined by Decision (EU) 2016/2248 (ECB/2016/36) — 10.4 Other Net position of the following sub- liabilities items: within the Eurosystem (net)(+) (a) correspondent accounts of NCBs (a) Nominal value Mandatory (b) balance due to the difference (b) Nominal value Mandatory between monetary income to be pooled and redistributed. Only relevant for the period between booking 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 balances (c) Nominal value Mandatory denominated in euro that may arise, including the interim distribution of ECB income(*) 10 11 Items in Settlement account balances Nominal value Mandatory course of (liabilities), including the float of giro settlement transfers 10 12 Other liabilities 10 12.1 Off-balance- Valuation results of foreign exchange Net position between forward Mandatory sheet forwards, foreign exchange swaps, and spot, at the foreign exchange instruments interest rate swaps (unless daily market rate revaluation variation margin applies), forward differences rate agreements, forward transactions in securities, foreign exchange spot transactions from trade date to settlement date 10 12.2 Accruals and Expenditure falling due in a future Nominal value, translated at the Mandatory income period but relating to the reporting foreign exchange market rate collected in period. Income received in the advance reported period but relating to a future period 40/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 Balance sheet item(1)(3) Categorisation of contents of balance Valuation principle Scope of sheet items application(2) 10 12.3 Sundry (a) Taxation suspense accounts. (a) Nominal value or (repo) cost Recommended Foreign currency credit or guarantee cover accounts. Repo transactions with financial institutions for the management of securities portfolios under asset item 11.3 ‘Other financial assets’. Compulsory deposits other than reserve deposits. Other minor items. Liabilities on a trust basis. Coins in circulation if 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 in circulation after the cash changeover year, if not shown under the liability item ‘Provisions’ (b) Only relevant for weekly financial (b) Nominal value Recommended statement and consolidated annual balance sheet of the Eurosystem: Current income (net accumulated profit), profit of the previous year prior to the approval of the Annual Accounts (c) Customer gold deposits (c) Market value Mandatory (d) Net pension liabilities (d) As per Article 29(2) Recommended 10 13 Provisions 10 13.1 Risk Provisions for risks that have not Nominal value Recommended provisions materialised. The contributions from NCBs to the ECB in accordance with Article 48.2 of the Statute of the ESCB are consolidated with the respective amounts disclosed under asset item 9.1 ‘Participating interest in the ECB’(+) 10 13.2 Other (a) Provisions due to the impairment (a) Nominal value Mandatory provisions of monetary policy operations. (b) Provisions for pensions; for (b) Cost/nominal/discounted Recommended national euro area currency units value that have ceased to be legal tender but are still in circulation after the relevant cash changeover year if not disclosed under liability item 12.3 ‘Other liabilities/sundry’; and for other purposes, e.g. expected future expenses. ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 41/51EN OJ L, 11.12.2024 Balance sheet item(1)(3) Categorisation of contents of balance Valuation principle Scope of sheet items application(2) 11 14 Revaluation Revaluation accounts related to price Revaluation difference between Mandatory accounts movements for gold, for every type of average cost and market value, euro-denominated securities, for foreign exchange translated at every type of foreign currency- market rate denominated securities, for options; market valuation differences related to interest rate risk derivatives; revaluation accounts related to foreign exchange rate movements for every currency net position held, including foreign exchange swaps/ forwards and SDRs. The contributions from NCBs in accordance with Article 48.2 of the Statute of the ESCB to the ECB are consolidated with the respective amounts disclosed under asset item 9.1 ‘Participating interest in the ECB’(+) 12 15 Capital and reserves 12 15.1 Capital Paid-up capital – the ECB’s capital is Nominal value Mandatory consolidated with the capital shares of the NCBs 12 15.2 Reserves Legal reserves and other reserves. Nominal value Mandatory Retained earnings. Only relevant for weekly financial statements and consolidated annual balance sheet of the Eurosystem: Accumulated losses carried forward. The contributions from NCBs to the ECB in accordance with Article 48.2 of the Statute of the ESCB are consolidated with the respective amounts disclosed under asset item 9.1 ‘Participating interest in the ECB’(+) — 16 Accumulated Nominal value Mandatory losses carried forward — 17 Profit / (loss) Nominal value Mandatory for the year (*) Items to be harmonised. (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) The allocation of balances to those balance sheet items that refer to residency and/or economic sector is based on the classification for statistical purposes. 42/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojANNEX V Consolidated weekly financial statement of the Eurosystem: format to be used for publication after quarter end (EUR million) Assets(1) Balance Difference compared to last week Liabilities Balance Difference compared to last week due to as at due to as at … … transactions quarter-end transactions quarter-end adjustments adjustments 1. Gold and gold receivables 1. Banknotes in circulation 2. Claims on non-euro area residents 2. Liabilities to euro area credit denominated in foreign currency institutions related to monetary policy 2.1. Receivables from the IMF operations denominated in euro 2.2. Balances with banks and security 2.1. Current accounts (covering the investments, external loans and minimum reserve system) other external assets 2.2. Deposit facility 3. Claims on euro area residents denominated 2.3. Fixed-term deposits in foreign currency 2.4. Fine-tuning reverse operations 4. Claims on non-euro area residents 2.5. Deposits related to margin calls denominated in euro 3. Other liabilities to euro area credit 4.1. Balances with banks, security institutions denominated in euro investments and loans 4. Debt certificates issued 4.2. Claims arising from the credit 5. Liabilities to other euro area residents facility under ERM II denominated in euro 5. Lending to euro area credit institutions 5.1. General government related to monetary policy operations 5.2. Other liabilities denominated in euro 6. Liabilities to non-euro area residents 5.1. Main refinancing operations denominated in euro 5.2. Longer-term refinancing operations 7. Liabilities to euro area residents 5.3. Fine-tuning reverse operations denominated in foreign currency 5.4. Structural reverse operations 8. Liabilities to non-euro area residents 5.5. Marginal lending facility denominated in foreign currency 5.6. Credits related to margin calls 8.1. Deposits, balances and other 6. Other claims on euro area credit institutions liabilities denominated in euro 8.2. Liabilities arising from the 7. Securities of euro area residents credit facility under ERM II denominated in euro 9. Counterpart of special drawing rights 7.1. Securities held for monetary policy allocated by the IMF purposes 10. Other liabilities 7.2. Other securities 11. Revaluation accounts 12. Capital and reserves ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 43/51 OJ L, 11.12.2024 EN(EUR million) Assets(1) Balance Difference compared to last week Liabilities Balance Difference compared to last week due to as at due to as at … … transactions quarter-end transactions quarter-end adjustments adjustments 8. General government debt denominated in euro 9. Other assets Total assets Total liabilities Totals/sub-totals may not add up, due to rounding. (1) The table of assets may also be published above the table of liabilities. 44/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/oj EN OJ L, 11.12.2024ANNEX VI Consolidated weekly financial statement of the Eurosystem: format to be used for publication during the quarter (EUR million) Assets(1) Balance Difference Liabilities Balance Difference as at compared to as at compared to … last week due to … last week due transactions to transactions 1. Gold and gold receivables 1. Banknotes in circulation 2. Claims on non-euro area residents denominated in foreign currency 2. Liabilities to euro area credit institutions related to 2.1. Receivables from the IMF monetary policy operations denominated in euro 2.2. Balances with banks and security investments, external 2.1. Current accounts (covering the minimum loans and other external assets reserve system) 3. Claims on euro area residents denominated in foreign currency 2.2. Deposit facility 4. Claims on non-euro area residents denominated in euro 2.3. Fixed-term deposits 4.1. Balances with banks, security investments and loans 2.4. Fine-tuning reverse operations 4.2. Claims arising from the credit facility under ERM II 2.5. Deposits related to margin calls 5. Lending to euro area credit institutions related to monetary policy 3. Other liabilities to euro area credit institutions operations denominated in euro denominated in euro 5.1. Main refinancing operations 4. Debt certificates issued 5.2. Longer-term refinancing operations 5. Liabilities to other euro area residents denominated 5.3. Fine-tuning reverse operations in euro 5.4. Structural reverse operations 5.1. General government 5.5. Marginal lending facility 5.2. Other liabilities 5.6. Credits related to margin calls 6. Liabilities to non-euro area residents denominated 6. Other claims on euro area credit institutions denominated in euro in euro 7. Securities of euro area residents denominated in euro 7. Liabilities to euro area residents denominated in 7.1. Securities held for monetary policy purposes foreign currency 7.2. Other securities 8. Liabilities to non-euro area residents denominated 8. General government debt denominated in euro in foreign currency 9. Other assets 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 Total assets Total liabilities Totals/sub-totals may not add up, due to rounding. (1) The table of assets may also be published above the table of liabilities. ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 45/51 OJ L, 11.12.2024 ENANNEX VII Consolidated annual balance sheet of the Eurosystem (EUR million) Assets(1) Reporting Previous year Liabilities Reporting Previous year year year 1. Gold and gold receivables 1. Banknotes in circulation 2. Claims on non-euro area residents denominated in foreign currency 2. Liabilities to euro area credit institutions related to 2.1. Receivables from the IMF monetary policy operations denominated in euro 2.2. Balances with banks and security investments, external 2.1. Current accounts (covering the minimum loans and other external assets reserve system) 3. Claims on euro area residents denominated in foreign currency 2.2. Deposit facility 4. Claims on non-euro area residents denominated in euro 2.3. Fixed-term deposits 4.1. Balances with banks, security investments and loans 2.4. Fine-tuning reverse operations 4.2. Claims arising from the credit facility under ERM II 2.5. Deposits related to margin calls 5. Lending to euro area credit institutions related to monetary policy 3. Other liabilities to euro area credit institutions operations denominated in euro denominated in euro 5.1. Main refinancing operations 4. Debt certificates issued 5.2. Longer-term refinancing operations 5. Liabilities to other euro area residents denominated in 5.3. Fine-tuning reverse operations euro 5.4. Structural reverse operations 5.1. General government 5.5. Marginal lending facility 5.2. Other liabilities 5.6. Credits related to margin calls 6. Liabilities to non-euro area residents denominated in 6. Other claims on euro area credit institutions denominated in euro euro 7. Securities of euro area residents denominated in euro 7. Liabilities to euro area residents denominated in 7.1. Securities held for monetary policy purposes foreign currency 7.2. Other securities 8. Liabilities to non-euro area residents denominated in 8. General government debt denominated in euro foreign currency 9. Other assets 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 Total assets Total liabilities Totals/sub-totals may not add up, due to rounding. (1) The table of assets may also be published above the table of liabilities. 46/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/oj EN OJ L, 11.12.2024ANNEX VIII Annual balance sheet of a central bank(1) (EUR million(2)) Assets(3) Reporting Previous year Liabilities Reporting Previous year year year 1. Gold and gold receivables 1. Banknotes in circulation(*) 2. Claims on non-euro area residents denominated in foreign currency 2. Liabilities to euro area credit institutions related to 2.1. Receivables from the IMF monetary policy operations denominated in euro 2.2. Balances with banks and security investments, external 2.1. Current accounts (covering the minimum loans and other external assets reserve system) 3. Claims on euro area residents denominated in foreign currency 2.2. Deposit facility 4. Claims on non-euro area residents denominated in euro 2.3. Fixed-term deposits 4.1. Balances with banks, security investments and loans 2.4. Fine-tuning reverse operations 4.2. Claims arising from the credit facility under ERM II 2.5. Deposits related to margin calls 5. Lending to euro area credit institutions related to monetary policy 3. Other liabilities to euro area credit institutions operations denominated in euro denominated in euro 5.1. Main refinancing operations 4. Debt certificates issued 5.2. Longer-term refinancing operations 5. Liabilities to other euro area residents denominated in 5.3. Fine-tuning reverse operations euro 5.4. Structural reverse operations 5.1. General government 5.5. Marginal lending facility 5.2. Other liabilities 5.6. Credits related to margin calls 6. Liabilities to non-euro area residents denominated in 6. Other claims on euro area credit institutions denominated in euro euro 7. Securities of euro area residents denominated in euro 7. Liabilities to euro area residents denominated in 7.1. Securities held for monetary policy purposes foreign currency 7.2. Other securities 8. Liabilities to non-euro area residents denominated in 8. General government debt denominated in euro foreign currency 9. Intra-Eurosystem claims 8.1. Deposits, balances and other liabilities 9.1. Participating interest in ECB 8.2. Liabilities arising from the credit facility under 9.2. Claims equivalent to the transfer of foreign reserves ERM II 9.3. Claims related to TARGET 9. Counterpart of special drawing rights allocated by 9.4. Net claims related to the allocation of euro banknotes the IMF within the Eurosystem(*) 10. Intra-Eurosystem liabilities 9.5. Other claims within the Eurosystem (net)(*) 10.1. Liabilities equivalent to the transfer of foreign 10. Items in course of settlement reserves 11. Other assets 10.2. Liabilities related to TARGET 11.1. Coins of euro area 10.3. Net liabilities related to the allocation of euro 11.2. Tangible and intangible fixed assets banknotes within the Eurosystem(*) 11.3. Other financial assets 10.4. Other liabilities within the Eurosystem (net)(*) ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 47/51 OJ L, 11.12.2024 EN(EUR million(2)) Assets(3) Reporting Previous year Liabilities Reporting Previous year year year 11.4. Off-balance-sheet instruments revaluation differences 11. Items in course of settlement 11.5. Accruals and prepaid expenses(*) 12. Other liabilities 11.6. Sundry 12.1. Off-balance-sheet instruments revaluation differences 12.2. Accruals and income collected in advance(*) 12.3. Sundry 13. Provisions 13.1. Risk provisions 13.2. Other provisions 14. Revaluation accounts 15. Capital and reserves 15.1. Capital 15.2. Reserves 16. Accumulated losses carried forward 17. Profit/(loss) for the year Total assets Total liabilities Totals/sub-totals may not add up, due to rounding. (*) Items to be harmonised. (1) 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. (3) The table of assets may also be published above the table of liabilities. 48/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/oj EN OJ L, 11.12.2024EN OJ L, 11.12.2024 ANNEX IX Published profit and loss account of a central bank(1)(2) (EUR million(3)) Profit and loss account for the year ending 31 December … Reporting year Previous year 1. Net interest income/(expense) 1.1. Interest income(*) 1.2. Interest expense(*) 2. Net result of financial operations and write-downs 2.1. Realised gains/(losses) arising from financial operations 2.2. Write-downs on financial assets and positions 3. Net result of pooling monetary income(*) 4. Net income/(expense) from fees and commissions 5. Income from equity instruments and participating interests(*) 6. Other income 7. Staff costs(4) 8. Administrative expenses(4) 9. Depreciation of tangible and intangible fixed assets 10. Banknote production services(5) 11. Other expenses Profit/(loss) before the transfer (to)/from risk provisions and other charges 12. Transfer (to)/from risk provisions(6) 13. Income tax and other government charges on income Profit/(loss) for the year (*) Items 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 III to 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) (OJ L, 2024/2938, 11.12.2024, ELI: http://data.europa.eu/eli/dec/2024/2938/oj). (2) 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. (3) Central banks may alternatively publish exact euro amounts, or amounts rounded in a different manner. (4) Including administrative provisions. (5) This item is used in the 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 and euro banknotes are taken to the profit and loss account as they are invoiced or otherwise incurred. (6) This only includes transfers (to)/from provisions for risks that have not materialised, therefore transfers (to)/from provisions due to the impairment of monetary policy operations, and other provisions are not included in this item. ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 49/51EN OJ L, 11.12.2024 ANNEX X Repealed guideline with list of its successive amendments Guideline (EU) 2016/2249 (ECB/2016/34) OJ L 347, 20.12.2016, p. 37. Guideline (EU) 2019/2217 (ECB/2019/34) OJ L 332, 23.12.2019, p. 184. Guideline (EU) 2021/2041 (ECB/2021/51) OJ L 419, 24.11.2021, p. 14. 50/51 ELI: http://data.europa.eu/eli/guideline/2024/2941/ojEN OJ L, 11.12.2024 ANNEX XI Correlation table Guideline (EU) 2016/2249 (ECB/2016/34) This Guideline Article 1 Article 1 Article 2 Article 2 Article 3 Article 3 Article 4 Article 4 Article 5 Article 5 Article 6 Article 6 Article 7 Article 7 Article 8 Article 8 Article 9 Article 9 Article 10 Article 10 Article 11 Article 11 Article 11a Article 12 Article 12 Article 13 Article 13 Article 14 Article 14 Article 15 Article 15 Article 16 Article 16 Article 17 Article 17 Article 18 Article 18 Article 19 Article 19 Article 20 Article 20 Article 21 Article 21 Article 22 Article 22 Article 23 Article 23 Article 24 Article 24 Article 25 Article 25 Article 26 Article 26 Article 27 Article 27 Article 28 Article 28 Article 29 Article 29 Article 30 Article 30 Article 31 Article 31 Article 32 Article 32 Article 33 ELI: http://data.europa.eu/eli/guideline/2024/2941/oj 51/51