RegAlertRule · NBB · 5 Apr 2019
Royal Decree of 23 September 1992 on the Annual Accounts of Credit Institutions, Investment Firms and Collective Investment Scheme Management Companies
The Royal Decree of 23 September 1992 establishes the rules for the annual accounts of credit institutions, investment firms, and collective investment scheme management companies in Belgium. It mandates that annual accounts, comprising the balance sheet, income statement, and notes, must present a true and fair view of the institution's assets, financial position, and results. The decree specifies the general principles, structure, and valuation rules for these accounts, including requirements for consistency, the prohibition of offsetting, and the treatment of amortization, impairment, and provisions.
Title
1992003570
23 SEPTEMBER 1992. - [Royal Decree on the annual accounts of credit institutions, investment firms and collective investment scheme management companies.] <Title replaced by RD 2008-09-28/36, art. 1, 005; In force: 01-01-2010; see also art. 20> (NOTE: Consultation of versions prior to 30-08-1996 and updated as of 14-07-2025)
Source: Finances
Publication: 6 October 1992
Number: 1992003570
page: 21373
File number: 1992-09-23/30
Entry into force: 16 October 1992
Erratum: Publication of 29 December 1992, number 1992003737, page 27391, Errata
Erratum: Publication of 29 December 1992, number 1993003051, page 1377, Errata
Table of Contents
CHAPTER I. - Scope of application.
Art. 1
CHAPTER II. - Form and content of annual accounts.
Section 1. - General principles.
Art. 2-6
Section 2. - Structure of annual accounts.
Art. 7-10
Section 3. - Specific provisions relating to annual accounts.
Art. 11, 11bis, 12-14
CHAPTER III. - Valuation rules.
Section 1. - General principles.
Art. 15-19, 19bis
Section 2. - Acquisition value and nominal value.
Art. 20-22, 22bis, 23
Section 3. - Specific rules.
Art. 24-27, 27bis, 27ter, 28-34, 34bis, 35, 35bis, 35ter, 35quater, 36, 36bis, 36ter, 36quater, 36quinquies, 36sexies CHAPTER IV. - Form and content of annual accounts whose filing is required by law.
Art. 37, 37bis
CHAPTER V. - Competence of the Banking and Financial Commission.
Art. 38
CHAPTER VI. - Miscellaneous provisions and transitional provisions.
Art. 39-47
Annex.
Art. N1
Text
CHAPTER I. - Scope of application.
Article 1.<RD 2008-09-28/36, art. 2, 005; In force: 13-10-2008; see also art. 20> The provisions of this Decree shall apply:
1° to credit institutions referred to in [1 article 1, § 3, of the Act of 25 April 2014 on the status and supervision of credit institutions, with the exception of the institutions referred to in article 2 of that Act]1; 2° [3 to investment firms referred to in article 3, § 1, of the Act of 25 October 2016 on access to the activity of providing investment services and on the status and supervision of portfolio management companies and investment advice companies, with the exception of the institutions referred to in article 4 of that Act]3. 3° to collective investment scheme management companies referred to in [1 article 186 of the Act of 3 August 2012 on collective investment schemes meeting the conditions of Directive 2009/65/EC and on debt claim investment schemes]1. [1 4° to alternative investment fund management companies referred to [2 in article 10]2 of the Act of 19 April 2014 on alternative investment funds and their managers.]1 For the application of this Decree, branches and operational headquarters established in Belgium by companies governed by foreign law are considered as a single institution. The companies to which this Decree applies are hereinafter referred to as "institutions".
(1)<RD 2016-12-05/08, art. 2, 009; In force: 17-02-2017> (2)<RD 2017-02-25/03, art. 168, 010; In force: 27-03-2017> (3)<RD 2025-06-30/08, art. 2, 013; In force: 01-01-2025>
CHAPTER II. - Form and content of annual accounts.
Section 1. - General principles.
Art. 2. Annual accounts comprise the balance sheet, the income statement and the notes. These documents form a whole.
(Annual accounts are drawn up (...) in euros.) <RD 1998-11-26/32, art. 1, 003; In force: 01-01-1999> <RD 2000-07-20/63, art. 6, 004; In force: 01-01-2002>
Art. 3. Annual accounts must give a true and fair view of the assets, financial position and result of the (institution). <RD 2008-09-28/36, art. 3, 005; In force: 13-10-2008; see also art. 20> They must be drawn up clearly and must systematically indicate on the one hand, at the closing date of the financial year, the nature and amount of the institution's assets and rights, its debts, obligations and commitments as well as its own funds, and on the other hand, for the financial year closed on that date, the nature and amount of its expenses and income.
Art. 4. Annual accounts are drawn up in accordance with the provisions of this Decree.
If the application of the provisions of this Decree is not sufficient to satisfy the requirement of article 3, additional information must be provided in the notes.
Art. 5. The chart of accounts of the (institution) must be designed or adjusted in such a way that the balance sheet and income statement result without addition or omission of the corresponding items from the trial balance drawn up after the reconciliation referred to in [1 article III.90, § 1, of the Code of Economic Law]1. <RD 2008-09-28/36, art. 3, 005; In force: 13-10-2008; see also art. 20> The opening balance sheet of a financial year must, without prejudice to the application of article 11, paragraph 3, correspond to the closing balance sheet of the previous financial year.
(1)<RD 2016-12-05/08, art. 3, 009; In force: 17-02-2017>
Art. 6. Any offsetting between assets and liabilities, between rights and commitments, between expenses and income is prohibited, except in the cases provided for by this Decree. [1 In such cases, the offset amounts are indicated as gross amounts in the notes to the annual accounts.]1
(1)<RD 2016-12-05/08, art. 4, 009; In force: 17-02-2017>
Section 2. - Structure of annual accounts.
Art. 7.§ 1. The balance sheet and income statement are, without prejudice to article 9, paragraph 2, and article 38, drawn up in accordance with the models provided for in Chapter I of the Annex to this Decree.
The income statement is, at the choice of the (institution), presented either in list form or in account form. <RD 2008-09-28/36, art. 3, 005; In force: 13-10-2008; see also art. 20> The notes contain the statements and information provided for in Chapter I, section 3, of the Annex to this Decree. (The notes also contain information relating to the social balance sheet, provided for in Book II, Title I, Chapter III, Section II, Sub-section III, point B, of the Royal Decree of 30 January 2001 implementing the Code of Companies and Associations.) <RD 2008-09-28/36, art. 4, 005; In force: 13-10-2008; see also art. 20> § 2. The items of the balance sheet, income statement and the mentions in the notes referred to in § 1 may be omitted if they are irrelevant for the financial year in question; when figures relating to the previous financial year must be mentioned, they may only be omitted if they are also irrelevant for the previous financial year. § 3. The content of the items of the annual accounts is, insofar as it calls for clarification for certain of them, defined in Chapter II of the Annex to this Decree. For the application of this Decree, the items of the balance sheet and income statement are preceded by a Roman numeral or a capital letter, the sub-items by an Arabic numeral. [1 Without prejudice to contrary provisions, for the purposes of the Acts of 25 April 2014 on the status and supervision of credit institutions, of 20 July 2022 on the status and supervision of stock exchange companies, of 3 August 2012 on collective investment schemes meeting the conditions of Directive 2009/65/EC and on debt claim investment schemes, of 19 April 2014 on alternative investment funds and their managers and of 25 October 2016 on access to the activity of providing investment services and on the status and supervision of portfolio management companies and investment advice companies, as well as of the decrees and regulations taken for their implementation, "net turnover" means the amount resulting from the sum of headings I (Interest and similar income including: fixed income securities), III (Income from variable income securities), IV (Commissions received), VI (Profit from financial transactions) and XIV (Other operating income) of the income statement model (presentation in account form), as defined in Section 4 of Chapter II of the Annex to this Decree.]1
(1)<RD 2025-06-30/08, art. 3, 013; In force: 01-01-2025>
Art. 8.When an element of the assets or liabilities could simultaneously fall under several items or sub-items of the balance sheet or when an income or expense could simultaneously fall under several items or sub-items of the income statement, it is recorded under the most appropriate item with regard to the requirement of article 3, without prejudice to article 38. [1 Where appropriate, the link with other items is explained in the notes. ]1
(1)<RD 2016-12-05/08, art. 5, 009; In force: 17-02-2017>
Art. 9. (Institutions) have the option to subdivide further in the notes the items and sub-items whose mention is required. <RD 2008-09-28/36, art. 3, 005; In force: 13-10-2008; see also art. 20> Without prejudice to article 38, the wording of the items preceded by a capital letter and the sub-items provided for in the models is adapted to the specific characteristics of the credit institution's activity, assets and income and expenses.
Art. 10. The presentation of the annual accounts must be identical from one financial year to the next.
Without prejudice to article 38, it is however modified in the event that, notably following a significant modification of the structure of the assets, income and expenses of the (institution), it no longer meets the requirement of article 3. These modifications are mentioned and justified in the notes relating to the financial year in which they are introduced. <RD 2008-09-28/36, art. 3, 005; In force: 13-10-2008; see also art. 20>
Section 3. - Specific provisions relating to annual accounts.
Art. 11. The balance sheet is drawn up after allocation, i.e. taking into account the decisions on the allocation of the balance of the income statement of the financial year and the carried-forward result. When, in the absence of a decision taken by the competent body, this allocation is not final, the balance sheet is drawn up subject to the suspensive condition of this decision.
The balance sheet and income statement indicate for each item and sub-item the corresponding amounts of the previous financial year.
If the figures for the current financial year are not comparable with those of the previous financial year, the figures of the previous financial year may be adjusted to make them comparable; in this case, the notes must mention and comment, with reference to the items concerned, on the adjustments made, if they are not insignificant. If the figures of the previous financial year are not adjusted, the notes must contain the necessary information to allow comparison.
Art. 11bis. § 1. Without prejudice to the recognition of expenses and income in accordance with article 19, paragraph 4, the asset elements and asset mutations resulting from operations which, either in accordance with market practice or in accordance with the agreed contractual deadline, are executed at a date subsequent to their conclusion, are recorded in the asset and liability accounts only from the date of availability of the funds or securities subject to the operations concerned. Until that date, the rights and commitments relating thereto are recorded in off-balance sheet accounts. (Notwithstanding the provisions of paragraph 1, the asset elements and asset mutations resulting from operations which, in accordance with market practice, are executed at a date subsequent to their conclusion, may be recorded by institutions in the asset accounts at the date of conclusion of the operation, provided that the following conditions are met:
a) the operations relate to assets recorded under one of the following items of the assets of the balance sheet: I, II, III, IV, V, VI and VII; b) all operations relating to assets falling under the same item must be recorded at the date of their conclusion; for the application of the foregoing, assets belonging to the trading portfolio are considered as a separate item.) <RD 2008-09-28/36, art. 5, 005; In force: 13-10-2008; see also art. 20> For the application of this paragraph, the date of availability shall be understood as:
a) in the case of operations to be executed subsequent to market practice, the date on which the funds or securities concerned must be made available in application of the customary deadline; b) in the case of operations to be executed subsequent to a contractually agreed deadline, the date on which the funds or securities concerned must be made available in application of the contractual deadline.
§ 2. Unless express provisions refer to the residual maturity, the breakdown of accounts according to the duration of assets, liabilities, rights and commitments is carried out on the basis of the initial duration of the elements in question.
Art. 12. By "amortization" is meant the amounts charged to the income statement, relating to establishment costs and intangible and tangible fixed assets whose use is limited in time, with a view either to spreading the amount of these establishment costs and the acquisition cost, possibly revalued, of these fixed assets over their probable useful or use life, or to charging these costs and expenses when they are incurred. By "impairment" is meant the deductions made to the acquisition price of asset elements other than those referred to in the preceding paragraph, and intended to take into account the depreciation, definitive or not, of the latter at the closing date of the financial year. The cumulative amortization and impairment are deducted from the asset items to which they relate.
Art. 13.Provisions for risks and charges are intended to cover losses or charges clearly circumscribed as to their nature, but which, at the closing date of the financial year, are or probable or certain but indeterminate as to their amount.
[1 Without prejudice to article 19, paragraph 3, a provision represents, at the balance sheet closing date, the best estimate of probable charges or, in the case of a loss or debt, the amount necessary to settle it at the balance sheet closing date.]1 Except in the cases referred to in article 35, § 3, paragraph 4, provisions for risks and charges may not be intended to correct the value of elements recorded in the assets.
(1)<RD 2016-12-05/08, art. 6, 009; In force: 17-02-2017>
Art. 14. Rights and commitments which do not appear in the balance sheet or in the off-balance sheet items and which are likely to have a significant influence on the assets, financial position or results of the (institution) are mentioned by category in the notes. <RD 2008-09-28/36, art. 3, 005; In force: 13-10-2008; see also art. 20> Significant rights and commitments which are not capable of being quantified are the subject of appropriate mentions in the notes.
CHAPTER III. - Valuation rules.
Section 1. - General principles.
Art. 15.Each (institution) determines the rules which, while respecting the provisions of this chapter, but taking into account its own characteristics, govern the valuations in the inventory provided for in [1 article III.89, § 1, of the Code of Economic Law ]1 and, in particular, the establishment and adjustment of amortization, impairment and provisions for risks and charges as well as revaluations. <RD 2008-09-28/36, art. 3, 005; In force: 13-10-2008; see also art. 20> These rules are established by the administrative body of the (institution) and recorded in the book provided for in [1 article III.89, § 1, of the Code of Economic Law]1. They are summarized in the notes; this summary must, in accordance with article 3, be sufficiently precise to allow an assessment of the valuation methods adopted. <RD 2008-09-28/36, art. 3, 005; In force: 13-10-2008; see also art. 20> Without prejudice to the application of article 39, these rules are established and the valuations are carried out from the perspective of the continuity of the (institution)'s activities. <RD 2008-09-28/36, art. 3, 005; In force: 13-10-2008; see also art. 20>
(1)<RD 2016-12-05/08, art. 7, 009; In force: 17-02-2017>
Art. 16. In the exceptional case where the application of the valuation rules provided for in this chapter would not lead to compliance with the requirement of article 3, it is necessary to derogate from them by applying the aforementioned article 3, without prejudice to article 38.
Such a derogation must be mentioned and justified in the notes.
The estimate of the influence of this derogation on the assets, financial position and result of the (institution) is indicated in the notes relating to the accounts of the financial year in which this derogation is introduced for the first time. <RD 2008-09-28/36, art. 3, 005; In force: 13-10-2008; see also art. 20>
Art. 17. The valuation rules referred to in article 15, paragraph 1 and their application must be identical from one financial year to the next.
However, they are adapted in the event that, notably following a significant modification of the activities of the (institution), the structure of its assets or economic or technological circumstances, the previously followed valuation rules no longer meet the requirement of article 3. <RD 2008-09-28/36, art. 3, 005; In force: 13-10-2008; see also art. 20> Paragraphs 2 and 3 of article 16 apply to these adaptations.
Art. 18. Each element of the assets is subject to a separate valuation.
Except in the cases referred to in articles 35, § 3, and 35bis, amortization, impairment and revaluations are specific to the asset elements for which they were established or recorded. Asset elements whose technical or legal characteristics are entirely identical may however be subject to global amortization, impairment or revaluations.
Provisions for risks and charges are individualized according to the risks and charges of the same nature that they are called upon to cover. By risks and charges of the same nature, it is meant the categories of risks and charges mentioned by way of example in article 19, paragraph 5.
[Art. 19bis]. The valuations, depreciation, value reductions, and provisions for risks and charges must meet the criteria of prudence, sincerity, and good faith.
Depreciation, value reductions, and provisions for risks and charges must be systematically constituted on the basis of methods fixed by the (institution) in accordance with Article 15. They may not depend on the result of the financial year. [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20]
All foreseeable risks, potential losses, and depreciation that have arisen during the financial year to which the annual accounts relate or during previous financial years must be taken into account, even if these risks, losses, or depreciation are only known between the date of closing the annual accounts and the date on which they are approved by the administrative body of the (institution). When, in cases other than those referred to in Article 35, § 2, e, in the absence of objective criteria for assessment, the estimation of foreseeable risks, potential losses, and depreciation is inevitably random, this must be mentioned in the notes if the amounts involved are significant with regard to the objective referred to in Article 3. [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20]
Charges and income related to the financial year or to previous financial years must be taken into account, regardless of the date of payment or receipt of these charges and income, unless the actual receipt of these income is uncertain. In particular, the estimated taxes on the result of the financial year or on the result of previous financial years, as well as remuneration, allowances, and other social benefits that will be attributed during a subsequent financial year in respect of services performed during the financial year or during previous financial years, must be charged to the financial year. If the income or charges are significantly influenced by income and charges attributable to another financial year, this must be mentioned in the notes.
Provisions must be constituted to cover in particular:
a) the obligations incumbent on the (institution) regarding retirement and survivor pensions, [1 unemployment with company supplement]1 and other similar pensions or annuities; [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20] b) costs of major repairs and major maintenance; c) risks of losses or charges arising for the credit institution from personal or real securities constituted as guarantee for debts or commitments of third parties, commitments relating to the acquisition or disposal of fixed assets, the execution of orders placed or received, positions in foreign currencies, securities and other financial instruments, technical guarantees attached to sales and services already performed by the (institution), ongoing litigation. [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20]
Value reductions recorded in application of Article 28, § 3, Article 29, § 2, and Articles 31, 35 and 35ter, as well as provisions for risks and charges, may not be maintained to the extent that they exceed at the end of the financial year a current assessment, according to the criteria provided for in the first paragraph, of depreciation, risks and charges in consideration of which they were constituted.
(1)[AR 2016-12-05/08, art. 8, 009; En vigueur : 17-02-2017>
[Art. 19bis]. The capital gain or capital loss recorded upon the disposal of a depreciable tangible fixed asset accompanied by the conclusion by the seller of a finance lease contract relating to the same asset, is recorded in clearing accounts and is transferred each year to the income statement proportionally to the depreciation of this fixed asset held under finance lease relating to the financial year in question.
[Section 2.] - Acquisition value and nominal value.
[Art. 20]. § 1. Without prejudice to the application of §§ 2 and 3 of this Article and of Articles 16, 34 and 35ter, the asset items are valued at their acquisition value and are shown in the balance sheet for this same value, less the depreciation and value reductions relating thereto.
By acquisition value is meant either the purchase price defined in Article 21, or the cost price defined in Article 22, or the contribution value defined in Article 23.
§ 2. Without prejudice to the application of Articles 27bis and 27ter, receivables which represent deposits or advances of funds and which are not represented by securities or negotiable instruments are shown in the balance sheet for the amount of funds made available to the debtor, less the repayments made in the meantime and the value reductions relating thereto; liabilities, represented or not by securities or negotiable instruments which arise from deposits or borrowings of funds, are, without prejudice to the application of Article 35ter, § 8, shown in the balance sheet for the amount of funds made available to the (institution), less the repayments made in the meantime. [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20]
Where applicable, the difference between the nominal value of such receivables and liabilities and the amount of funds made available at the outset is to be treated as interest income or interest charge relating to these receivables and liabilities, in application of the principle provided for in Article 19, fourth paragraph.
§ 3. Without prejudice to the application of Article 27bis, receivables and liabilities which do not represent deposits nor advances or borrowings of funds are shown in the balance sheet at their nominal value, less the value reductions relating thereto.
[Art. 21]. The purchase price includes, in addition to the purchase price, incidental costs such as non-recoverable taxes and transport costs.
[Art. 22]. The cost price is obtained by adding to the purchase prices of raw materials, consumable materials and supplies, the manufacturing costs directly attributable to the product or group of products considered as well as the share of production costs which are only indirectly attributable to the product or group of products considered, insofar as these costs concern the normal manufacturing period. The (institutions) nevertheless have the option not to include in the cost price all or part of these indirect production costs; in the event of the use of this option, mention must be made in the notes [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20].
[Art. 22bis]. The acquisition value of intangible and tangible fixed assets may include interest charges relating to borrowed capital used to finance them, but only insofar as these charges concern the period preceding the actual putting into service of these fixed assets.
The cost price of stocks and orders in progress may not include interest charges relating to borrowed capital used to finance them, except insofar as these charges concern stocks or orders whose manufacturing or execution duration is more than one year and provided they relate to the normal manufacturing period of these stocks or execution of these orders.
The inclusion of interest charges in the acquisition value of intangible or tangible fixed assets or of stocks or orders in progress is mentioned in the notes, among the valuation rules.
[Art. 23]. The contribution value corresponds to the conventional value of the contributions.
In the event of allocation or contribution to a company which does not constitute a company with separate legal personality, the contribution value is to be understood as the value attributed to these assets at the time of their contribution or allocation. This value may not exceed the market value at the purchase of the assets in question, at the time when the contribution or allocation took place.
The contribution value does not include taxes and costs relating to the contributions; if these are not fully taken into account by the income statement of the financial year during which the contribution is made, they are shown under the item "Establishment costs".
[Section 3.] - Special rules.
[Art. 24]. Establishment costs are only shown on the asset side if they are not taken into account during the financial year in which they are incurred.
Charges incurred in the context of a restructuring may only be shown on the asset side insofar as they are clearly circumscribed expenses, relating to a substantial modification of the structure or organization of the (institution) and provided that these expenses are intended to have a favorable and lasting impact on the profitability of the credit institution. The fulfillment of these conditions must be justified in the notes. To the extent that restructuring costs consist of charges that fall under operating charges or exceptional charges, their transfer to the asset side is effected by explicit global deduction from the total of operating charges or the total of exceptional charges. [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20]
[Art. 25]. Intangible fixed assets other than those acquired from third parties are only shown on the asset side at their cost price insofar as this does not exceed a prudently established estimate of the use value of these fixed assets or their future yield for the (institution). [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20]
[Art. 26]. § 1. The rights of use which the (institution) has on tangible fixed assets by virtue of finance lease contracts or similar contracts are, without prejudice to the provisions of Articles 12 and 28, § 2, shown on the asset side, to the extent of the part of the scheduled payments provided for in the contract, representing the capital reconstruction of the value of the asset, subject of the contract. [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20]
The correlative commitments shown on the liability side are valued each year at the fraction of the scheduled payments relating to subsequent financial years, representing the capital reconstruction of the value of the asset, subject of the contract.
§ 2. With regard to assets acquired against payment of a life annuity:
1° the acquisition value is understood to be the capital necessary, at the time of acquisition, to ensure the service of the annuity, increased, if necessary, by the amount paid in cash and the costs; 2° a provision is constituted to the extent of said necessary capital; this provision is adjusted annually.
[Art. 27]. Supplies, finished products, merchandise and buildings intended for sale are valued at their acquisition value or at the market value at the date of closing the financial year when the latter is lower.
The valuation at the lower market value, carried out in application of the first paragraph, may not be maintained if subsequently the market value exceeds the lower value retained for the valuation of stocks.
[Art. 27bis]. § 1. When receivables arising from financing or loans are payable or repayable in installments by periodic payments of a constant amount, which includes both the payment of charges and the repayment of part of the amount of the financing or loan, the portion to be imputed as interest and accrued charges pro rata temporis is determined as follows:
a) if the contract includes a capital repayment plan, the portion is determined by applying the interest rate fixed in the contract to the remaining capital balance at the beginning of each period taking into account the repayment plan; b) if the contract does not include a capital repayment plan, the portion is determined by applying the effective rate resulting from the provisions of the contract to the remaining capital balance at the beginning of each period; this effective rate is calculated taking into account the installment schedule and the periodicity of the payments. In the case of receivables arising from finance lease contracts or similar contracts, the remaining balance is calculated on the basis of the initial capital to be reconstructed; the initial capital to be reconstructed corresponds to the purchase price of the asset subject to the contract. For the calculation of the portion to be imputed as accrued charges, interest cannot be offset against costs, charges and commissions incurred in connection with these operations.
§ 2. Without prejudice to the information to be provided on them in the notes to the annual accounts, receivables relating to mortgage loans are shown on the asset side less:
a) the portions which, pending their actual release by the (institution), are recorded in special accounts; [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20] b) reconstruction funds, namely capitals reconstructed in special accounts allocated to mortgage loans repayable by reconstruction with the (institution); [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20] c) mathematical reserves constituted with the (institution) in execution of life insurance and capitalization contracts allocated to the repayment of mortgage loans. [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20]
In item I "Interest and similar income" of the income statement, interest on mortgage loans is shown for the balance after offsetting the interest charges relating to the items referred to in the previous paragraph, without prejudice to the treatment of these latter in accounting as separate items.
§ 3. The recording on the balance sheet of receivables of the nature referred to in Article 20, § 2, and payable at a date more than one year away, from their entry into the assets of the (institution), but acquired at an abnormally high price given the market rate applicable to such receivables at the time of their entry into the assets, is accompanied by the imputation of a discount. This discount is calculated at the market rate applicable to such receivables at the time of their entry into the assets; it is imputed as a value reduction charged to the financial year during which these receivables entered. The pro rata temporis recognition of interest income relating to such receivables is determined on the basis of the value of these receivables obtained after imputation of said discount.
For the application of this paragraph to receivables on the personnel of the (institution), the applicable rate must be assessed taking into account the rate reduction applicable to these receivables in accordance with the internal regulation of the (institution) governing the lending conditions to personnel. [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20]
§ 4. The recording on the balance sheet of receivables at their nominal value, in application of Article 20, § 3, is accompanied by the recording in clearing accounts of the liability and the pro rata temporis recognition in the income statement of the discount on receivables which are not interest-bearing or which are subject to an abnormally low interest, when these receivables:
a) are payable at a date more than one year away, from their entry into the assets of the credit institution and b) relate either to amounts recorded as income in the income statement, or to the disposal price of fixed assets or branches of activity.
Said discount is calculated at the market rate applicable to such receivables at the time of their entry into the assets of the (institution). [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20]
This paragraph applies analogously to liabilities of a corresponding nature and duration.
§ 5. Subject to the application of the following paragraph, credit insurance costs and costs representing commissions paid in remuneration for the introduction of business with customers, are fully charged as expenses relating to the financial year in which they were incurred.
With regard to the costs referred to in the previous paragraph which relate to operations with a contractual term of more than one year, the (institutions) nevertheless have the option to spread their recognition in the income statement over the duration of the operations by applying a method ensuring at least symmetrical recognition to the recognition of income from the operations to which these costs relate. [AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20]
The duration over which the recognition of costs representing commissions paid in remuneration for the introduction of business with customers is spread may not exceed sixty months. Costs of this nature activated in application of the previous paragraph are to be taken back under item VIII of the asset "Establishment costs and intangible fixed assets".
In the event of application of paragraph 2 of this paragraph, mention must be made in the notes to the annual accounts.
Art. 27ter 28. § 1. For the purposes of this paragraph, a fiduciary operation shall mean an operation by which a person, hereinafter referred to as the fiduciary, acquires claims or securities in its own name but entirely for the account and at the risk of a principal, hereinafter referred to as the settlor, who has made available to the fiduciary the funds necessary for this purpose.
When the operation is governed by a legal status providing that, in the event of the fiduciary's bankruptcy, the claim or security held by it and the related commitment do not form part of the estate, they are not included in the balance sheet of the credit institution acting as fiduciary; the latter includes the relevant claim or security in off-balance sheet items under item III.A. "Securities entrusted to the (institution) under an organized fiduciary status". In this case, the (institution) settlor records said claim or security on the balance sheet as a directly held asset. <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
When the operation is not governed by a legal status as defined in the previous paragraph, the (institution) acting as fiduciary expresses the relevant claim or security on the balance sheet as a claim or security held for its own account and the related commitment as a liability. In this case, the operation is treated by the (institution) settlor as constituting a claim on the fiduciary, which it also records in off-balance sheet item I.E. "Assets encumbered with real security for the account of third parties". <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
§ 2. For the purposes of this paragraph, a syndicated or consortium operation shall mean an operation in which several (institutions) participate in such a way that one or more of them acquire a claim or security in their own name, but partly on the order and therefore for the account and at the risk of other (institutions); the latter are hereinafter referred to as participants, while the former are referred to as managing institutions. <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
In the annual accounts of the (institution) managing institution, said claims and securities are recorded on the balance sheet based on the amount for which it acts for its own account, increased by the portion for which it acts in its own name but at the risk of the participants, to the extent that this portion is not financed by said participants. <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
In the annual accounts of the (institution) participant, the claims and securities acquired for its account by a (institution) managing institution are, to the extent of its participation in the financing of said claims and securities, recorded on the balance sheet, similar to similar claims and securities held directly by the participant; the portion for which the participant bears the risk but does not finance is recorded in off-balance sheet items as a contingent liability in the form of credit-substitute guarantees. <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
§ 3. For the purposes of this article, a sale-and-buyback operation shall mean an operation of purchase or sale for cash of an asset comprising simultaneously, between the same parties, the repurchase of said asset at a future date, regardless of the agreed price or maturity terms.
Such an operation is recorded in the accounts as a loan granted by the cash buyer to the cash seller. The transfer of ownership is recorded as a real security, and the difference between the cash price and the repurchase price is treated as constituting the interest on the loan.
Art. 28 29. § 1. Establishment costs are subject to appropriate amortization, in annual tranches of at least twenty percent of the amounts actually spent. However, the amortization of borrowing costs, other than those referred to in Article 27bis, paragraph 5, third paragraph, may be spread over the entire duration of the loan.
§ 2. Tangible and intangible fixed assets whose use is limited in time are subject to amortization calculated according to a plan established in accordance with Article 15. They may in particular be subject to an accelerated amortization plan, in accordance with the tax provisions in this regard. If the application of such an accelerated plan leads to significantly anticipating the recognition of amortization compared to what is economically justified, a mention must be made in the notes to the accounts of the difference between the cumulative amount of these recorded amortizations and that of the economically justified amortizations, as well as of the influence on the amount of amortization affecting the income statement of the financial year, of amortizations exceeding the economically justified amortizations, recognized during the financial year or during previous financial years.
These fixed assets are subject to additional or exceptional amortization when, due to their deterioration or changes in economic or technological circumstances, their book value exceeds their value in use by the (institution). <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
Amortizations recorded in application of the first paragraph on tangible and intangible fixed assets whose use is limited in time may only be reversed if, due to changes in economic or technological circumstances, the previously practiced amortization plan proves to have been too rapid. Amortizations recorded in application of the second paragraph that are no longer justified are subject to a reversal to the extent of their excess over the amortizations planned in accordance with the first paragraph.
[1 When their useful life cannot be estimated reliably, development costs and goodwill are amortized over a maximum period of ten years. An explanation of the amortization period of goodwill is provided in the notes.]1 [1 Amortizations and impairments on goodwill are not reversed.]1
§ 3. Tangible and intangible fixed assets whose use is not limited in time are subject to impairment only in the event of permanent diminution in value or depreciation.
(1)<AR 2016-12-05/08, art. 10, 009; En vigueur : 17-02-2017>
Art. 29 30. § 1. Uncalled amounts on participations and shares and parts are mentioned separately in the notes and allocated according to the items in which the participations, shares, and parts remaining to be paid up are recorded.
§ 2. Participations and shares recorded under the item "Financial Fixed Assets" are subject to impairment in the event of permanent diminution in value or depreciation justified by the situation, profitability, or prospects of the company in which the participation or shares are held.
Claims, including fixed-income securities, recorded under financial fixed assets are subject to impairment if their repayment at maturity is in whole or in part uncertain or compromised.
§ 3. Incidental costs related to the acquisition of financial fixed assets may be charged to the income statement of the financial year in which they were incurred.
Art. 30 31. Disused tangible fixed assets or those that have ceased to be permanently used in the (institution)'s activity are, where applicable, subject to exceptional amortization to align their valuation with their probable realizable value. <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
Art. 31 32. Work in progress and orders in execution are subject to impairment if their cost price, increased by the estimated amount of related costs that still need to be incurred, exceeds, as the case may be, their net selling price at the end of the financial year or the price provided for in the contract.
Additional impairments are recorded on the assets referred to in Article 27 and in the first paragraph of this article to take into account either the evolution of their realizable or market value, or the risks justified by the nature of the assets in question or the activity carried on.
Art. 32 33. By way of derogation from Articles 18, 20, 27, and 31, small tools as well as supplies, which are constantly renewed and whose acquisition value is negligible compared to the total balance sheet, may be recorded on the asset side at a fixed value, if their quantity, value, and composition do not vary significantly from one financial year to the next. In this case, the price of the renewal of these items is recorded under operating expenses.
Art. 33 34. The acquisition price of assets with identical technical or legal characteristics is established by individualizing the price of each element or by applying either the weighted average price method, or the "Fifo" method (first-in, first-out), or the "Lifo" method (last-in, first-out).
In the event of a change in method, the acquisition price of goods deemed to have entered first cannot be lower than the value at which these goods were recorded, before related impairments, in the inventory drawn up at the end of the previous financial year.
Art. 34 34bis. (Institutions) may proceed to the revaluation of their tangible fixed assets as well as participations, shares, and parts included in their financial fixed assets, or of certain categories of these fixed assets, when the value of these, determined according to their utility for the (institution), presents a certain and permanent excess compared to their book value. If the assets in question are necessary for the continuation of the (institution)'s activity or part of its activities, they can only be revalued to the extent that the expressed surplus is justified by the profitability of the (institution)'s activity or by the part concerned of its activities. <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
The revalued value retained for these fixed assets is justified in the notes to the annual accounts in which the revaluation is recorded for the first time.
If the revaluation concerns tangible fixed assets whose use is limited in time, the revalued value is subject to amortization calculated according to a plan established in accordance with Article 15, in order to spread the recognition over the probable remaining useful life of the fixed asset.
The recorded capital gains are directly charged to item XI of the liability side "Revaluation Surplus" and are maintained there as long as the assets to which they relate are not realized. These capital gains may however:
1° be transferred to reserves to the extent of the amount of amortization recorded on the capital gain; 2° [1 be incorporated into capital; a revaluation surplus incorporated into capital may however never be used, directly or indirectly, to offset total or partial carried-forward losses to the extent of the part of the revaluation surplus that has not yet been amortized. The capital gains charged to item XI of the liability side "Revaluation Surplus" may only be incorporated into capital to the extent of the part of the revaluation surplus after deducting estimated taxes on this capital gain.]1 3° in the event of a subsequent diminution in value, be cancelled to the extent of the unamortized amount on the capital gain. [1 The recorded capital gains cannot be distributed, directly or indirectly, as long as they do not correspond to a realized capital gain or to an amortization transferred or not transferred to a reserve in accordance with the previous paragraph, 1°.]1
(1)<AR 2016-12-05/08, art. 11, 009; En vigueur : 17-02-2017>
Art. 34bis 35. § 1. Deferred taxes on realized capital gains are initially evaluated at the normal amount of taxation that would have affected them, if these capital gains had been taxed in the financial year in which they were recorded. They are however calculated after deducting the effect of reductions and immunities of which it is probable, at the time these capital gains are recorded, that it will result, in the foreseeable future, a reduction in the tax charge related to these capital gains.
§ 2. Deferred taxes related to realized capital gains are subject to a phased reduction by charging to the income statement under the item "Deductions from deferred taxes" at the rate of the inclusion in the taxable result of the capital gains in question.
§ 3. Except for the application of § 2, the amount of deferred taxes recorded on the liability side is subject to correction only to the extent that, following a modification of the (institution)'s tax situation, it is probable that the actual amount of the estimated tax charge related in the foreseeable future to these capital gains will deviate significantly from the amount recorded on the liability side. <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
Art. 35 35bis. § 1. Without prejudice to the application of Article 29, § 2, second paragraph, to claims recorded in financial fixed assets, the application of the general principles defined in Article 19 implies that the evaluation of claims represented or not by securities and off-balance sheet commitments, where applicable, takes into account the risk that the counterparties concerned do not honor their commitments.
In the case of claims and off-balance sheet commitments that, due to their reduced individual importance and number, are insufficiently suited to an individualized and regular assessment of the solvency of the counterparties concerned, the evaluation of the risk that these latter do not honor their commitments is carried out taking into account findings drawn from the statistical observation of the difficulties encountered by the (institution) for these categories of claims and commitments. The findings are, where applicable, adapted to take into account the incidence of cyclical factors or modifications of the credit institution's policy regarding these categories of claims and commitments. <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
§ 2. For the purposes of this article, the following shall be understood:
a) problem risks: claims and rights of recourse on counterparties that experience difficulties in honoring their commitments, or of which it is foreseeable that they will experience such difficulties, or who contest the principal amount of their commitments. The difficulties referred to here may be due to the specific situation of the counterparty or result from the socio-economic context in which it finds itself, including the situation of its country of establishment; b) problem risk with regard to commercial risk: the risk that a non-sovereign counterparty does not honor its commitments for reasons other than country risk as defined below; c) problem risk with regard to country risk: the risk that a sovereign counterparty cannot or refuses to honor its commitments towards foreigners, or prevents or hinders its residents from honoring their commitments towards foreigners; d) uncollectable or doubtful risks: problem risks on counterparties whose inability to honor their commitments has been established or is virtually certain, as well as risks subject to litigation for which it is certain, or virtually certain, that the outcome will result in the non-recovery of the contested claims or the impossibility of exercising the contested recourse; e) uncertain evolution risks: problem risks on counterparties of which it has been established or is expected that they will experience difficulties in honoring their commitments but whose inability has not been established, nor is virtually certain, as well as risks subject to litigation whose outcome is uncertain.
§ 3. With regard to uncollectable or doubtful risks, inventory corrections must be recorded to the extent for which there is no certainty of recovery supported by objective data.
Inventory corrections with regard to problem risks for country risks may be carried out in the form of a global impairment for country risks, without prejudice to the obligation to individualize the risks concerned. In this case, the global impairment is charged to the asset items of the annual accounts containing such risks, in proportion to the amounts for which they feature in these items.
Inventory corrections with regard to problem risks related to claims and off-balance sheet commitments referred to in § 1, second paragraph of this article, may by category of claims and commitments be carried out in the form of global impairments or specific global provisions dedicated to covering these risks.
In the case where problem risks, although of a different nature, concern the same counterparty, inventory corrections with regard to such risks may be carried out in the form of a global impairment for all risks on this counterparty, including those related to off-balance sheet commitments.
§ 4. In the income statement, there is compensation between the provisions for impairments and provisions charged in application of this article and the reversals of such impairments and the uses and reversals of such provisions.
Art. 35bis 35ter. § 1. Without prejudice to the inventory corrections to be made in application of the other provisions of this decree, (institutions) may set up a contingency fund for the eventual occurrence of future risks that by nature are inherent to the operation of an (institution). <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
The operation of such a fund must comply with rules respecting the principles set out in Articles 15, 17, first and second paragraphs, and 19, first and second paragraphs.
Any derogation from the rules that the (institution) has set for itself as well as their possible adaptation must be mentioned and justified in the notes. <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
The contingency fund is incorporated into the annual accounts according to the methods defined in §§ 2 and 3.
The application of the method provided for in § 3 is authorized only insofar as the impairment resulting from the charging of the fund does not exceed four percent of the cumulative value of the concerned items obtained after charging the inventory corrections made in application of the other articles of this decree.
§ 2. Unless the (institution) applies the method defined in paragraph 3 below, the contingency fund is incorporated into the annual accounts as "general banking risk fund"; such a fund and its net movement, to be charged to the income statement, are expressed in the annual accounts under the specific items provided for this purpose in the schemes annexed to this decree. <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
§ 3. (Institutions) may however opt for the recording of the contingency fund by charging as a valuation reduction on items III. B. and IV. of the asset side, in which case the provisions to the fund and the withdrawals from it are charged to the income statement as valuation reductions and reversals of valuation reductions on claims in accordance with the schemes and definitions annexed.
§ 4. Institutions may simultaneously apply both of the methods defined in §§ 2 and 3. In this case, the two contingency funds are to be considered as separate funds for the application of § 1, first paragraph, second to fourth paragraphs.
[Art. 35ter] § 1. Securities that do not constitute financial fixed assets are valued based on the distinction between whether they belong to the trading portfolio or the investment portfolio, and in accordance with the provisions of the following paragraphs. They are carried on the balance sheet at the value thus obtained, without prejudice to the recognition of value reductions in application of other provisions of this Royal Decree.
For the application of this article, the following terms are understood:
a) by securities belonging to the trading portfolio, fixed and variable income securities acquired in the context of an issuance with a view to their placement with third parties, as well as securities otherwise acquired with a view to their resale based on short-term yield considerations which normally does not exceed six months and, in the case of securities with a fixed term, covers a period shorter than the residual term of the securities in question; b) by securities belonging to the investment portfolio, securities that do not belong to the trading portfolio and do not constitute financial fixed assets.
For the securities referred to in this article, (institutions) may adopt a recording method by which the incidental costs of their acquisition are charged to the income statement of the financial year in which they were incurred. Where such a method is applied, this shall be mentioned in the information to be provided in the notes in accordance with Article 15, paragraph 2 of this Royal Decree. <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
§ 2. Securities belonging to the trading portfolio, as well as securities subject to cash purchases in the process of settlement concluded within the framework of the trading portfolio, for which a liquid market exists, are valued at their market value on the closing date of the accounts.
Securities belonging to this same portfolio, as well as securities subject to cash purchases in the process of settlement concluded within the framework of the trading portfolio, but for which no liquid market exists, are valued at their acquisition value or their market value on the closing date of the accounts if the latter is lower.
Without prejudice to the recognition of accrued interest relating to the period elapsed, the valuation differences resulting from the application of this paragraph are charged to the income statement as constituent elements of item VI.A. "Profit (Loss) from financial operations, foreign exchange and trading in securities and other financial instruments".
For there to be a liquid market within the meaning of this paragraph, it is required:
a) that there is either an organized market or an over-the-counter market operating regularly with the intervention of third-party financial institutions acting as market makers ensuring permanent quotations of buyer and seller prices whose ranges correspond to market practices; b) that in volume, the securities or financial instruments concerned can, taking into account the volumes regularly traded on their market, be considered realizable at any time without significant impact on prices.
§ 3. Without prejudice to the application of § 1, paragraph 3, variable income securities belonging to the investment portfolio are valued at their acquisition value or their realization value on the closing date of the accounts, if the latter is lower.
§ 4. Without prejudice to the application of § 1, paragraph 3, fixed income securities belonging to the investment portfolio are valued based on their actuarial yield calculated at purchase, taking into account their redemption value at maturity; the difference between the acquisition value and the redemption value is taken into income pro rata temporis over the remaining term of the securities as a constituent element of the interest income generated by these securities.
The recognition of this difference in income is performed on an discounted basis, taking into account the real yield at purchase. These securities are carried on the balance sheet at their acquisition value increased or decreased by the portion of said difference taken into income.
§ 5. (Institutions) may adopt a valuation method in which the capital gains and losses resulting from the sale of fixed income investment securities in the context of arbitrage operations are taken into income in a staggered manner together with the future income of the securities acquired in the context of the arbitrage. <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20>
In this case, the capital gains or losses are subject to an income reversal entry and are, pending their recognition, added to the accounts or the purchased securities are recorded. The capital gains and losses concerned are, based on a constant annual real yield, charged to the interest income of fixed income securities, over the period extending until the nearest maturity of the sold or purchased securities. In the event of a subsequent sale of the purchased securities, the residual amount of the adjustment account shall be entirely recorded in the income of the financial year in which this sale took place, unless this sale falls within the framework of a new arbitrage. In this case, the residual amount may, in accordance with this paragraph, be taken into income in a staggered manner with the income of the new arbitrage operation provided that the initial income recognition period is not extended.
For the application of this paragraph, an arbitrage operation is understood as any combined purchase and sale operation of fixed income investment securities carried out over a relatively short period and which leads to a real improvement in the yield of fixed income investment securities.
If the net amount received upon sale is greater than the amount spent on purchase, including incidental costs, the capital gain or loss shall, to this extent, in proportion to the difference between purchased and sold amounts, be taken into income.
In the event of application of this paragraph, this shall be mentioned in the information to be provided in the notes in accordance with Article 15, paragraph 2 of this Royal Decree.
§ 6. Fixed income securities belonging to the investment portfolio but which by nature are not suitable for valuation based on their actuarial yield in accordance with § 4, are subject to value reductions in case of permanent loss of value or depreciation. In the case of securities representing perpetual loans, the difference between the acquisition value and their lower market value is to be considered as a permanent depreciation.
§ 7. Securities that, although belonging to the investment portfolio, constitute a liquidity vehicle are valued at their market value if it is lower than the value obtained by applying the preceding paragraphs of this article.
§ 8. § 4 applies mutatis mutandis to debts represented by securities or negotiable instruments.
[Art. 35quater] § 1. For the application of this article, a stock option qualified as a hedging option is understood as the option whose purpose and effect is to compensate for or reduce the risk of price variation of shares.
In order to be considered as a hedging option within the meaning of this paragraph, the option must meet the following conditions:
a) the hedged element must expose the (institution) to a price variation risk; <AR 2008-09-28/36, art. 3, 005; En vigueur : 13-10-2008; see also art. 20> b) the option must be qualified as such in the books from the outset; c) the option must have as its underlying instrument securities having the same characteristics as those hedged by the option; d) the option is traded on a liquid market as defined in Article 35ter, § 2, paragraph 4 or the underlying securities are traded on such a market.
§ 2. Stock options that do not meet or no longer meet the conditions to be qualified as hedging options are valued at their market value on the closing date of the accounts.
The positive and negative differences resulting from the value variation of premiums are charged to the income statement as trading income and expenses for securities, when they relate to options traded on a liquid market as defined in Article 35ter, § 2, paragraph 4, or to options whose underlying securities are traded on such a market.
In the absence of a liquid market, only negative differences are charged to the income statement, positive differences being then taken up in the balance sheet under liabilities as deferred income.
The income and expenses to be charged to the income statement in application of this paragraph are recorded as constituent elements of the net result to be expressed in item VI.A. "Profit (Loss) from financial operations, foreign exchange and trading in securities and other financial instruments" of the income statement.
§ 3. The differences resulting from the value variations of a stock option qualified as a hedging option are, upon the most recent daily settlement of debit and credit margins, recorded in a suspense account opened among the regularization accounts. Upon the closure of the hedging option, the balance of this account is charged to the income statement in a manner symmetrical to the recognition of capital gains and losses on the hedged element. However, when the hedged element is valued at market value, the results arising from the hedging option must be charged to the income statement in a manner symmetrical to the recognition of value variations of the hedged element.
In the event of disposal of the hedged element, the balance of the suspense account is charged entirely to the income statement and the differences resulting from subsequent value variations of the undenatured hedging options attached thereto are treated in accordance with the provisions of § 2 of this article.
The provisions of this paragraph apply to stock options qualified as hedging options even in the absence of daily settlement of debit and credit margins.
The income and expenses to be charged to the income statement in application of this paragraph on account of hedging options attached to securities belonging to the trading portfolio are recorded as constituent elements of the net result to be expressed in item VI.A. "Profit (Loss) from financial operations, foreign exchange and trading in securities and other financial instruments" of the income statement.
Art. 36. § 1. Without prejudice to the obligation to keep consolidated accounts (in euros), institutions must keep their accounts in such a way that monetary elements are recorded with the mention of their amount in the currency in which they are denominated. These elements are evaluated on the basis of their amount in the relevant currency. <AR 1998-11-26/32, art. 2, 003; En vigueur: 01-01-1999> <AR 2000-07-20/63, art. 6, 004; En vigueur: 01-01-2002> <AR 2008-09-28/36, art. 3, 005; En vigueur: 13-10-2008; see also art. 20>
For the application of this article, the following terms shall be understood:
a) monetary elements: assets, liabilities, including adjustment accounts, rights and commitments relating to a determined number of monetary units to be received or paid, as well as shares, units, and other variable-income securities belonging to the trading portfolio; these securities may be treated as monetary elements denominated in the currency of the price paid at purchase when they are quoted on the market in that currency and intended to be sold by settlement of the price in that same currency; b) swap (report-déport): the difference (report) or negative difference (déport) separating the price of a forward foreign exchange operation - or a forward exchange rate operation concluded according to the modalities of futures markets - from the spot price at the conclusion of such an operation; c) hedging operation designated with regard to the risk of variation in exchange rates: the operation which has as its purpose and effect to compensate or reduce the risk of variation in exchange rates relating to a monetary element or a homogeneous set of monetary elements with regard to the risk of fluctuation in exchange rates.
In order to be considered a designated hedging operation within the meaning of this paragraph, the operation must meet the following conditions:
a) the hedged element or the homogeneous set of hedged elements must expose the institution to a risk of variation in exchange rates; <AR 2008-09-28/36, art. 3, 005; En vigueur: 13-10-2008; see also art. 20> b) the hedging operation must, in the books, be qualified as such from the outset; c) the hedged element or the homogeneous set of hedged elements and the hedging operation must be denominated in the same currency or in currencies between which there exists a close correlation; in the case of options concluded as designated hedging, the underlying instrument of the option and the hedged element or the homogeneous set of hedged elements must be denominated in the same currency or in currencies between which there exists a close correlation.
§ 2. Monetary elements (denominated in currencies other than the euro (hereinafter "foreign currencies")) are converted (in euros) by application of the average rate between the representative spot buying and selling rates at the date of closing of the accounts. Elements which, either by reason of their nature, such as banknotes, or by virtue of exchange regulations, are settled at specific rates, are converted at the specific average rate. <AR 1998-11-26/32, art. 3, 003; En vigueur: 01-01-1999> <AR 2000-07-20/63, art. 6, 004; En vigueur: 01-01-2002> <AR 2008-09-28/36, art. 6, 005; En vigueur: 13-10-2008; see also art. 20>
The balance of positive and negative differences resulting from the conversion of the monetary elements mentioned below (denominated in monetary units of States which are not members of the European Community, or in monetary units of Member States which have not adopted the single currency in accordance with the Treaty establishing that Community) for which there exists a liquid market as defined in Article 35ter, § 2, paragraph 4, is charged to the income statement as income or expense to be taken into account to determine the profit or loss result of the foreign exchange activity: <AR 1998-11-26/32, art. 3, 003; En vigueur: 01-01-1999> a) monetary assets and liabilities, possibly excluding loans referred to in § 9, paragraph 2; b) amounts to be received and paid in execution of spot foreign exchange operations in the process of settlement; c) unearned income and expenses associated with designated hedging operations; d) after deduction of the report or after addition of the déport, amounts to be received and paid in execution of forward foreign exchange operations or forward exchange rate operations concluded according to the modalities of futures markets and which are accompanied by counter-spot foreign exchange operations concluded with a view to covering the settlement of claims and debts; e) amounts to be received and paid at the ultimate maturity in execution of forward foreign exchange contracts involving a mechanism of reciprocal payments at intermediate maturities of interest calculated on the capitals to be exchanged at the ultimate maturity; f) capitals to be exchanged in execution of other designated hedging operations relating to the elements mentioned under a), b) and c) above.
The positive balance of conversion differences relating to the monetary elements mentioned in the previous paragraph of this section which are denominated in (monetary units of States which are not members of the European Community, or in monetary units of Member States which have not adopted the single currency in accordance with the Treaty establishing that Community) for which there does not exist a liquid market as defined in Article 35ter, § 2, paragraph 4, is not charged to the income statement; such positive balance, when it relates to monetary assets or liabilities, is included in the liability adjustment accounts as income to be carried forward. <AR 1998-11-26/32, art. 3, 003; En vigueur: 01-01-1999>
The reports and déports relating to the forward operations mentioned in point d) of the second paragraph of this section, are pro rata temporis over the duration of the operations charged as income and expenses assimilated to interest income and expenses.
§ 3. Forward foreign exchange operations, excluding those mentioned in § 2, paragraph 2, point d), are evaluated at the forward exchange rate corresponding to the remaining term of these operations. The balance of positive and negative differences resulting therefrom is charged to the income statement as income or expense to be taken into account to determine the profit or loss result of the foreign exchange activity. When these operations concern a currency for which there does not exist a liquid market as defined in Article 35ter, § 2, paragraph 4, the positive balance of differences relating thereto is not recognized as income charged to the income statement.
§ 4. Forward exchange rate operations, other than the operations mentioned in § 2, paragraph 2, points d) and e) of this article, are evaluated at their market value at the date of closing of the accounts.
The balance of positive and negative differences by type of operation derived by application of the first paragraph, including those resulting from the variation in value of premiums relating to foreign exchange option contracts, is to be taken into account to determine the profit or loss result of the foreign exchange activity, when these operations are traded on a liquid market as defined in Article 35ter, § 2, paragraph 4. In the case where these operations are not traded on such a market, only the negative balance of differences relating thereto is charged to the income statement.
When forward exchange rate operations are concluded as designated hedging operations, the evaluation differences derived, including those resulting from the variation in value of premiums relating to foreign exchange option contracts, are charged to the income statement as income and expenses to be taken into account to determine the result of the foreign exchange activity symmetrically to the recognition of exchange gains or losses on the hedged elements, unless these operations are concluded with a view to covering the settlement of claims or debts, in which case they are charged as income and expenses assimilated to interest income and expenses.
§ 5. Intermediate payments in execution of forward foreign exchange contracts involving a mechanism of reciprocal payments at intermediate maturities of interest calculated on the capitals to be exchanged at the ultimate maturity, are charged to the income statement as income and expenses to be taken into account to determine the profit or loss result of the foreign exchange activity. When the contracts constitute designated hedging operations for the settlement of claims and debts, said intermediate payments are charged to the income statement as income and expenses assimilated to interest income and expenses.
§ 6. Income and expenses which, in application of this article, are to be charged as income and expenses assimilated to interest income and expenses are included as such in the income statement of the annual accounts for their balance after compensation between income and expenses of this nature.
Income and expenses which, in application of this article, are to be charged as income and expenses of the foreign exchange activity are included as such in the income statement of the annual accounts for their balance after compensation between income and expenses of the foreign exchange activity.
§ 7. The provisions of this article apply by analogy to gold held in negotiable form and to operations on gold in negotiable form, without prejudice to the application of Article 27ter, § 3 to gold sales and repurchases.
§ 8. Income and expenses expressed in (monetary units of States which are not members of the European Community, or in monetary units of Member States which have not adopted the single currency in accordance with the Treaty establishing that Community) are recorded in results for their counter-value (in euros) calculated on the basis of the spot exchange rate at the moment of their recognition as expenses and income. <AR 1998-11-26/32, art. 3, 003; En vigueur: 01-01-1999> <AR 2000-07-20/63, art. 6, 004; En vigueur: 01-01-2002>
Unearned income and expenses, covered in advance and specifically, may however be converted (in euros) on the basis of the exchange rate of the hedging operation. <AR 1998-11-26/32, art. 3, 003; En vigueur: 01-01-1999> <AR 2000-07-20/63, art. 6, 004; En vigueur: 01-01-2002>
§ 9. In the case of non-monetary elements whose acquisition price is denominated in (monetary units of States which are not members of the European Community, or in monetary units of Member States which have not adopted the single currency in accordance with the Treaty establishing that Community), the acquisition value (in euros) for which these elements are recorded in the accounts is determined on the basis of the exchange rate on the day of acquisition or, if applicable, the exchange rate at which the foreign currency necessary for the payment of the price was purchased. The result of the sale of non-monetary elements whose selling price is denominated in (monetary units of States which are not members of the European Community, or in monetary units of Member States which have not adopted the single currency in accordance with the Treaty establishing that Community) is determined on the basis of the exchange rate of the day of the operation or, if applicable, the exchange rate at which the currency concerned was sold. <AR 1998-11-26/32, art. 3, 003; En vigueur: 01-01-1999> <AR 2000-07-20/63, art. 6, 004; En vigueur: 01-01-2002>
When non-monetary assets expose an institution to exchange rate risk and the latter has deliberately, in order to reduce this risk, opted for their long-term financing by loans in the corresponding currency, it is permitted to adopt an evaluation method by which, systematically, the conversion differences relating to the aforementioned loans are not taken into account to determine the balance of conversion differences in application of § 2. These differences are then included in the adjustment accounts.
Art. 36bis. § 1. For the purposes of this article, the term "qualified micro-hedging forward operation" refers to a forward operation whose purpose and effect is to compensate for or reduce the risk relating to an asset, a liability, a right, an off-balance sheet commitment, or a set of elements with homogeneous characteristics regarding their sensitivity to interest rate variations.
To be considered a hedging operation within the meaning of this paragraph, the operation must meet the following conditions:
a) the hedged element or the homogeneous set of hedged elements must expose the (institution) to interest rate variation risk; [AR 2008-09-28/36, art. 3, 005; Effective: 13-10-2008; see also art. 20] b) the hedging operation must be qualified as such in the books from the outset; c) a close correlation must be observed between the value variations of the hedged element and those of the assigned hedging operation; in the case of options concluded as assigned hedging, the correlation must be established between the variations of the hedged element and those of the underlying financial instrument.
§ 1bis. For the purposes of this article, the term "macro-hedging forward operations" refers to forward operations concluded within the framework of the institution's global interest rate risk management (known as ALM) and which have the purpose or effect of compensating for or reducing the risk relating to a homogeneous or non-homogeneous and evolving set of assets, liabilities, rights and/or off-balance sheet commitments, as well as highly probable future flows, regarding their sensitivity to interest rate variations. These hedging operations may be accounted for according to the principles described below in paragraph 4 if the institution has obtained prior authorization from the National Bank of Belgium for this purpose and continuously meets the following conditions:
1° these operations aim to reduce the interest rate risk to which the institution is exposed or to hedge highly probable future flows; 2° the institution has adequate internal organization for the management and control of interest rate risk, as well as for the faithful translation in its accounts of the operations related thereto, in accordance with this decree; 3° the institution maintains detailed documentation regarding the aforementioned internal organization and containing the institution's policy on interest rate risk management and its hedging within the framework of the hedging operations covered by this provision; this documentation includes the identification of hedging instruments that, in the books, are qualified as being assigned to hedging, the nature of the risk covered, as well as the identification of the hedged elements concerned by type of hedging operation; 4° the hedging operations are highly effective and the institution has adequate internal organization, methods, criteria, and control tools for monitoring the effectiveness of the hedging and adopting necessary corrective measures when effectiveness is no longer ensured, both retrospectively and prospectively. If derivatives aim to hedge future flows, these flows must be highly probable. The effectiveness of the hedging must be verified at least on a quarterly basis.
By extension, operations aimed at managing interest rate risk without taking additional risk, when concluded as a component of a securitization carried out within the framework of liquidity risk management with a vehicle consolidated by the credit institution, are treated comparably to the hedging operations referred to in the preceding paragraph but are subject to specific conditions regarding authorization, organization, internal documentation, and specific monitoring to verify the continuous neutrality of these operations on the institution's overall interest rate risk.
The National Bank of Belgium defines by circular the practical modalities for applying the aforementioned conditions, including the type of eligible hedging instruments and the conditions to be met for obtaining the aforementioned authorization. It imposes additional conditions for granting or maintaining the aforementioned authorization when these are rendered necessary by the individual situation of the institution or market conditions. When it observes a failure to meet the aforementioned conditions, the National Bank of Belgium may require the institution to adopt necessary corrective measures within the timeframe it determines. If the failure is not remedied, the National Bank of Belgium may withdraw or suspend the authorization.
§ 2. Interest rate forward operations that do not meet the conditions to be qualified as assigned hedging operations within the meaning of the first paragraph of this article are measured at their market value at the closing date of the accounts.
The balance of positive and negative differences by type of operation, including those resulting from the value variation of premiums related to interest rate option contracts, generated by applying the first paragraph, is charged to the income statement as trading income or expense for interest rate forward operations when they relate to operations traded on a liquid market as defined in Article 36ter, § 2, fourth paragraph. In the case of operations that are not traded on such a market, only the negative balance of differences related thereto is charged to the income statement.
The income and expenses to be charged to the income statement by application of this paragraph are recorded as constituent elements of the net result to be expressed in item VI.A. "Profit (Loss) from financial operations, foreign exchange, and trading in securities and other financial instruments".
§ 3. Differences resulting from the value variations of interest rate forward operations qualified [in accordance with paragraph 1] are, upon the most recent daily settlement of debit or credit margins, recorded in a suspense account opened among the regularization accounts. Upon settlement of the operation, the balance of this account is charged to the income statement symmetrically to the charging of income or expenses of the hedged element, over the remaining useful life of this element. However, when the hedged element is measured at market price, the results from interest rate forward operations must be charged to the income statement before the settlement date of the micro-hedging operation, as the value of the hedged element varies, in order to respect the symmetry rule.
In the event of disposal or upon maturity of the hedged element, the balance of the suspense account is charged entirely to the income statement, and differences resulting from subsequent value variations of unsettled micro-hedging operations assigned thereto are treated in accordance with the provisions of § 2 of this article.
The provisions of this paragraph apply to interest rate forward operations qualified as assigned micro-hedging even in the absence of daily settlement of debit and credit margins. Unless the hedged element is measured at market price, institutions may nevertheless account for these interest rate operations qualified as micro-hedging in accordance with paragraph 4 of this article. In the latter case, these institutions mention this in the annex in accordance with paragraph 5 of this article. This mention is made globally for the entire set of micro-hedging operations, but separately from mentions related to macro-hedging operations.
Income and expenses to be charged to the income statement by application of this paragraph for assigned hedging operations relating to receivables and payables are to be included in the annual accounts as income and expenses assimilated to interest income and expenses for their balance after offsetting between income and expenses of this nature.
Interest rate forward operations that no longer meet the conditions to be qualified as hedging operations within the meaning of paragraph 1 of this article are measured at their market value at the closing date of the accounts, and this valuation is charged to the income statement, either entirely on the same date if the hedged element has disappeared, or symmetrically to the results recorded on the hedged element in accordance with the prescriptions of paragraph 4, 3° and 4°, and, by analogy with paragraph 4, 5°, when paragraph 1, second paragraph, c is no longer satisfied. These instruments, if they remain in the institution's assets, are subsequently, and prospectively, accounted for in accordance with paragraph 2 of this article.
§ 4. The operations referred to in paragraph 1bis are accounted for according to the following principles:
1° the hedged instruments assigned to the macro-hedging operations referred to in paragraph 1bis are measured and accounted for in application of the provisions concerning them in this decree.
2° as long as they are qualified in the books as being assigned to hedging, the corresponding hedging instruments are included among rights and commitments in off-balance sheet items for their notional amounts and follow a treatment symmetrical to that of the hedged instruments; receivables, payables, and interest income and expenses resulting from these hedging instruments are accounted for in accordance with the other provisions of this decree; 3° macro-hedging instruments that cease to be qualified as such in the books, but which remain in the institution's assets, are measured at their market value at that time and included at this value on the balance sheet in an asset or liability item as appropriate; this value is, in counterpart, charged to a suspense account opened among the regularization accounts; the balance of this account is charged to the income statement symmetrically to the charging of income or expenses of the hedged element(s), over the shortest duration between (i) the initially planned remaining hedging period, and (ii) the effective remaining useful life of the hedged elements; these instruments are subsequently, and prospectively, accounted for in accordance with paragraph 2 of this article; 4° for macro-hedging instruments leaving the institution's assets, the residual market value, insofar as it can be assimilated to a hedging result, is charged to a suspense account opened among the regularization accounts; the balance of this account is charged to the income statement symmetrically to the charging of income or expenses of the hedged element(s), over the shortest duration between (i) the initially planned remaining hedging period, and (ii) the effective remaining useful life of the hedged elements. When it cannot be assimilated to a hedging result, the residual market value is directly charged to the income statement; 5° operations that no longer meet the high effectiveness criterion based on tests carried out in application of paragraph 1bis, 4°, can no longer be qualified as hedging and must be treated in accordance with point 3° or 4° depending on whether the hedging instruments remain or not in the institution's assets, except in the event of disappearance of the hedged elements or if the covered future flows are no longer probable; in the latter case, the hedging instruments that remain in the institution's assets lose their qualification and their residual market value is charged to the income statement in accordance with paragraph 2 of this article; 6° assimilated hedging operations, such as referred to in paragraph 1bis, second paragraph, whose neutrality on the institution's overall interest rate risk can no longer be demonstrated, are treated in accordance with the provisions of paragraph 2 of this article.
The National Bank of Belgium determines by circular the modalities for applying this paragraph.
§ 5. Institutions that have obtained one or more authorizations referred to in paragraph 1bis mention this in the annex to their annual accounts. This mention also includes a description of the instruments subject to hedging, the economic risks covered, and the hedging methods implemented, including the measurement of their effectiveness.
(1) AR 2021-08-29/05, art. 1, 012; Effective: 07-09-2021
Art. 36ter. <inserted by AR 2008-09-28/36, art. 7; Effective: 13-10-2008; see also art. 20> § 1. Merger by absorption, as defined in Article 671 of the Companies Code, and operations assimilated to merger by absorption by Article 676 of the same Code, are treated in the accounts according to the provisions of §§ 2 to 7.
§ 2. The various elements of the assets and liabilities of the absorbed company, including the various elements of its equity, the amortizations, impairments, and provisions constituted by it, its rights and commitments, as well as its income and expenses for the period, are, without prejudice to §§ 3 to 7, transferred into the accounting of the absorbing institution at the value at which they appeared in the accounting of the absorbed company, at the date referred to in Article 693, second paragraph, 5°, of the Companies Code.
§ 3. The following are cancelled upon the merger:
1° the treasury shares held by the absorbed company which, pursuant to Article 703, § 2, 2°, of the Companies Code, cannot give rise to the issuance of shares of the absorbing institution; 2° to the extent of the book value of these treasury shares, the unavailable reserve for treasury shares constituted for this purpose by the absorbed company. Article 623, second paragraph, of the Companies Code applies in the case where a reserve for treasury shares has not been constituted.
§ 4. If, taking into account the exchange ratio and the nominal value or book par value of the shares issued as consideration, the amount by which the capital of the absorbing institution is increased is higher than the capital of the absorbed company, the difference is charged, according to the modalities decided by the merger general meeting, from the other elements of the equity of the absorbed company; in the inverse case, the difference is credited to share premium.
§ 5. If the shareholders of the absorbed company obtain a cash boot, this is deemed to be charged from the equity of the absorbed company.
This charge is made from the equity, according to the modalities decided by the merger general meeting, in compliance with legal and statutory provisions.
In the absence of a decision by the merger general meeting concerning the equity item from which this charge is made, it is deemed to operate, in order, on retained earnings, on available reserves, and on other reserves that the law and statutes allow to be distributed.
§ 6. If the absorbing institution or another simultaneously absorbed company held shares of the absorbed company, these shares are cancelled upon the merger, and the various elements of the equity of the absorbed company are only included in the accounts of the absorbing institution to the extent of the fraction of those corresponding to the shares of the absorbed company that gave rise to the issuance of shares of the absorbing institution. However, account is taken, if applicable, of the modification, following the merger, of the tax qualification of the reserves of the absorbed company.
§ 7. If the value at which the shares of the absorbed company that did not give rise to the issuance of shares of the absorbing institution in application of Article 703, § 2, 2°, of the Companies Code, appeared in the accounts of the company holding them, differs from the share they represented in the equity of the absorbed company, the difference is treated according to its nature or origin:
a) In the event of an excess of the book value of the shares in question compared to the share they represented in the equity of the absorbed company, the difference is charged, as far as possible, to the elements of the assets, including intangible assets, which have a value higher than the amount at which they appeared in the accounts of the absorbed company. To the extent that the difference is attributable to an overvaluation of liabilities or to amortizations, impairments, or provisions recorded in the income statement of the absorbed company, which have become irrelevant or excessive, these are subject, at the time of the merger, to reversals or adjustments to the extent of this excess, by the income statement.
The difference that remains after these charges is, as appropriate, credited to the "Goodwill" item or taken to the result. b) In the inverse case, the difference is treated as follows: to the extent that it is attributable to overvaluations of assets or undervaluations of liabilities in the absorbed company, amortizations, impairments, provisions, and adjustments are, at the time of the merger, recorded to the extent necessary in the income statement.
The difference that remains after these adjustments is charged to the income statement.
Art. 36quater. <inserted by AR 2008-09-28/36, art. 8; Effective: 13-10-2008; see also art. 20> Merger by constitution of a new company, as defined in Article 672 of the Companies Code, is treated in the accounts of the merging companies in accordance with Article 36ter.
For the application of the first paragraph, each of the companies merging is considered as an absorbed company and the new company is considered as the absorbing institution.
Art. 36quinquies. <inserted by AR 2008-09-28/36, art. 9; Effective: 13-10-2008; see also art. 20> Split by absorption, by constitution of new companies, or mixed, as defined respectively in Articles 673, 674, and 675 of the Companies Code, is treated in the accounts of the split institution and in the accounts of the institutions benefiting from the contributions resulting from the split, in accordance, as appropriate, with Article 36ter or Article 36quater.
However, Article 36ter applies to each benefiting institution for only the assets and liabilities, rights and commitments contributed to it, as well as for the part of the equity of the split institution contributed to it.
Art. 36sexies. <inserted by AR 2008-09-28/36, art. 10; Effective: 13-10-2008; see also art. 20> In the event of contribution of a universality of assets or contribution of a business branch, as defined respectively in Articles 678 and 679 of the Companies Code, the assets, liabilities, rights, and commitments contributed are, upon contribution, brought into the accounts of the institution benefiting from the contribution, at the value at which they were recorded, at the date of contribution, in the accounts of the contributing company.
CHAPTER IV. - Form and content of annual accounts whose deposit is imposed by law.
Art. 37. The annual accounts whose deposit is prescribed by law are prepared in accordance with the provisions of Chapters II, III, V, and VI.
(In the annual accounts, amounts are presented (...) in thousands of euros. The annual accounts explicitly mention this.) <AR 1998-11-26/32, art. 4, 003; Effective: 01-01-1999> <AR 2000-07-20/63, art. 6, 004; Effective: 01-01-2002> (This article applies, with regard to institutions of foreign law referred to in Article 1, second paragraph, to the data they are required to deposit in accordance with the Royal Decree of 23 September 1992 on accounting information to be published, with regard to their branches established in Belgium, by credit institutions, investment firms, and collective investment undertaking management companies of foreign law.) <AR 2008-09-28/36, art. 11, 005; Effective: 13-10-2008; see also art. 20>
Art. 37bis. The annual accounts may, in addition to the publication required by Article 37, in the currency in which they are drawn up pursuant to Article 2, also be published (...) in the currency of a Member State of the Organisation for Economic Co-operation and Development, using the conversion rate at the balance sheet closing date. This rate is indicated in the notes. <AR 1998-11-26/32, art. 5, 003; En vigueur: 01-01-1999>
CHAPITRE V. - Competence of the Banking and Financial Commission.
Art. 38.
<Abrogé par AR 2025-06-30/08, art. 4, 013; En vigueur : 01-01-2025>
CHAPITRE VI. - Miscellaneous provisions and transitional provisions.
Art. 39. The provisions of this decree are applicable to (establishments) in liquidation. <AR 2008-09-28/36, art. 3, 005; En vigueur: 13-10-2008; see also art. 20> In cases where, in execution or not of a liquidation decision, the (establishment) renounces to continue its activities or when the perspective of continuity of its activities, referred to in Article 15, paragraph 3, cannot be maintained, the valuation rules are adapted accordingly and, in particular:
a) establishment costs must be fully amortized; b) fixed assets and current assets shall, if necessary, be subject to additional amortizations or value reductions to bring their book value to the probable realization value; c) provisions are formed to cover charges inherent to the cessation of activities, notably the cost of severance payments to be made to staff.
Paragraph 2 is also applicable in case of closure of an activity branch or a business seat of the establishment, regarding the assets, liabilities and commitments related to this activity branch or business seat.
Art. 40. The revaluation of industrial, commercial or agricultural equipment and industrial buildings assimilated thereto, carried out pursuant to Article 511, § 2, of the Income Tax Code 1992, is treated in the annual accounts in accordance with the provisions of the Royal Decree taken in execution of that article.
Art. 41. Revaluation surpluses may be posted directly to item XI of the liability "Revaluation surpluses" and kept there until the realization date of the assets to which they relate:
1° reversals of value reductions recorded on participations before January 1, 1976 or, for (establishments) whose financial year does not coincide with the calendar year, before the start of the financial year closed in 1977; <AR 2008-09-28/36, art. 3, 005; En vigueur: 13-10-2008; see also art. 20> 2° reversals of value reductions recorded on intangible fixed assets and tangible fixed assets whose use is not limited in time.
Art. 42. § 1. (Establishments) which, on January 1, 1986, had, within the framework of a pension scheme, undertaken towards members of their staff obligations regarding retirement or survivor pensions, and whose part of the obligations in question relating to benefits pertaining to years prior to January 1, 1986 is covered by (a provident institution), are, in case of insufficiency of provisions constituted by (the provident institution), exempted from constituting provisions to cover this part of these obligations, to the extent that (the provident institution is exempted) pursuant to (Article 93, §§ 1 and 2, of the Law of July 9, 1975 on the control of insurance undertakings, as it must be read for provident institutions pursuant to Article 20 of the Royal Decree of May 14, 1985 concerning the application to provident institutions of the Law of July 9, 1975 on the control of insurance undertakings). <AR 2008-09-28/36, art. 12, 1°, 005; En vigueur: 13-10-2008; see also art. 20> § 2. Credit institutions which, on January 1, 1986, had, within the framework of a pension scheme not providing for participant contributions, undertaken towards members of their staff obligations regarding retirement or survivor pensions and which had not constituted a provision to meet these obligations, are exempted from the constitution of provisions for the part of the obligations relating to participants' benefits entered into service before this date. § 3. (For enterprises referred to in Article 93, § 5, of the aforementioned Law of July 9, 1975, as it must be read for provident institutions pursuant to Article 20 of the aforementioned Royal Decree of May 14, 1985, the date of January 1, 1986, mentioned in §§ 1 and 2, is replaced by the date of January 1, 1993).
Art. 43. If, at the beginning of the first financial year to which the provisions of this decree apply for a credit institution, the acquisition value of certain asset elements cannot be reconstructed, the acquisition value of each of these elements is equal to the value for which they were carried, before amortizations and related value reductions, in the inventory established at the end of the previous financial year. The acquisition value established by applying the preceding paragraph:
1° is subject, if necessary, to amortizations and value reductions in accordance with Articles 28 to 31; 2° is considered as the acquisition value of goods entering for the first time, for the application of Article 33.
Revaluation surpluses recorded prior to the first financial year to which the provisions of this decree apply for a credit institution, as well as issue premiums received and obtained prior to this same financial year, must be mentioned in the annual accounts only to the extent that they still appeared as such in the credit institution's accounting at the end of the previous financial year.
(Credit institutions have the option to keep at item XI "Revaluation surpluses" the surpluses recorded prior to the start of the financial year commencing after December 31, 1992. Investment firms and collective investment undertaking management companies have the option to keep at item XI "Revaluation surpluses" the surpluses recorded prior to the start of the financial year commencing after December 31, 2009.) <AR 2008-09-28/36, art. 13, 005; En vigueur: 13-10-2008; see also art. 20>
Art. 44. Articles 10, 11, paragraphs 2 and 3, and 17 are not applicable to the annual accounts of the first financial year to which the provisions of this decree apply for an (establishment). <AR 2008-09-28/36, art. 3, 005; En vigueur: 13-10-2008; see also art. 20> The annex relating to the first balance sheet and (first income statement drawn up by a credit institution) in accordance with the schemes provided for in Chapter I of the Annex to this decree, must not indicate the corresponding amounts of the previous financial year for items that must be integrated for the first time in the annual accounts relating to the financial year commencing after December 31, 1992. <AR 2008-09-28/36, art. 14, 1°, 005; En vigueur: 13-10-2008; see also art. 20> (The annex relating to the first balance sheet and first income statement drawn up by an investment firm or a collective investment undertaking management company in accordance with the schemes provided for in Chapter I of the Annex to this decree, must not indicate the corresponding amounts of the previous financial year for items that must be integrated for the first time in the annual accounts relating to the financial year commencing after December 31, 2009.) <AR 2008-09-28/36, art. 14, 2°, 005; En vigueur: 13-10-2008; see also art. 20>
Art. 45. § 1. Article 19bis is applicable only to surpluses and deficits recorded during disposal operations carried out after the entry into force of this decree.
§ 2. The proportion to be allocated as interest and accrued charges pro rata temporis relating to the contracts referred to in Article 27bis, § 1, paragraph 1, b), and existing on the date of entry into force of this decree, may be calculated in accordance with the method applied until then, if this does not lead to an early allocation of interest and charges.
§ 3. The provisions provided for in Article 27bis, §§ 3 and 4 are applicable only to claims acquired and debts contracted after the entry into force of this decree.
§ 4. Article 34bis is applicable to surpluses benefiting from the deferred tax regime, realized after the entry into force of this decree. (Establishments) may however apply it to surpluses benefiting from the deferred tax regime, realized before the entry into force of said decree; in this case, the deferred taxes relating to amounts posted under shareholders' equity may be deducted from this item of shareholders' equity to be posted directly to the item "Deferred taxes". <AR 2008-09-28/36, art. 15, 005; En vigueur: 13-10-2008; see also art. 20> § 5. (Establishments) may apply a recording mode whereby positive differences generated pursuant to § 4 of Article 35ter and relating to the period prior to the entry into force of this decree are posted to suspense accounts until maturity or realization of the concerned securities, without prejudice to the possibility of taking them into profit or loss pro rata temporis over the remaining duration. <AR 2008-09-28/36, art. 3, 005; En vigueur: 13-10-2008; see also art. 20> For securities referred to in Article 513 of the Income Tax Code 1992, positive differences generated pursuant to § 4 of Article 35ter and relating to the period subsequent to the entry into force of this decree may also be posted to suspense accounts until maturity or realization of these securities. § 6. Forward foreign exchange transactions referred to in Article 36, § 3 and concluded before the date of entry into force of this decree may be valued in accordance with the method applied until then.
Art. 46. The provisions of this decree are applicable for the first time to annual accounts relating to the financial year commencing after December 31, 1992.
Art. 47. Our Minister of Finance is charged with the execution of this decree.
Art. N1. Annex 1.(Annex to the Royal Decree of 23 September 1992 concerning the annual accounts of credit institutions, investment firms and collective investment undertaking management companies.) <AR 2008-09-28/36, art. 16, 005; En vigueur: 13-10-2008; see also art. 20> <Annexe non reprise pour des raisons techniques. Voir MB 06/10/1992, p. 21420 à 21437; Errata M.B. 29-12-1992, pp. 27394-27395, et MB 26-01-1993, p. 1377>
Modifiée par :
<AR 1996-08-04/81, art. 14, En vigueur: 09-09-1996> <AR 1998-11-26/32, art. 6, En vigueur: 01-01-1999; M.B. 01-12-1998, p. 38409> <AR 2008-09-28/36, art. 16, 005; En vigueur: 13-10-2008; voir également l'art. 20> <AR 2011-03-13/02, art. 2, 006; En vigueur : 23-03-2011> <AR 2014-02-28/07, art. 1, 007; En vigueur : 18-03-2014> <AR 2014-11-27/01, art. 2, 008; En vigueur : 31-12-2014> <AR 2016-12-05/08, art. 12 et 13, 009; En vigueur : 17-02-2017> <AR 2019-03-01/12, art. 1, 011; En vigueur : 01-01-2019> <AR 2021-08-29/05, art. 3, 012; En vigueur : 07-09-2021> <AR 2025-06-30/08, art. 5, 013; En vigueur : 01-01-2025>
Preamble
Viewing the Law of June 30, 1975 on the status of banks, private savings banks and certain other financial intermediaries, notably Article 73, modified by the Law of July 1, 1983; Viewing Royal Decree No. 185 of July 9, 1935 on bank supervision and the regime of title and security issuances, notably Article 12, paragraphs 2 and 3, modified by the Laws of June 30, 1975 and July 18, 1991; Viewing the provisions relating to the supervision of private savings banks, coordinated on June 23, 1967, notably Article 16, § 2, paragraphs 3 and 4, modified by the Laws of July 17, 1985 and July 18, 1991; Viewing the Law of June 10, 1964 on public calls for subscriptions, notably Article 8, paragraphs 1 and 3, modified by Royal Decree No. 63 of November 10, 1967 and by the Law of December 4, 1990; Viewing Directive 86/635/EEC of December 8, 1986 of the Council of the European Communities concerning the annual accounts and consolidated accounts of banks and other financial institutions; Viewing the conform opinion of the Banking and Financial Commission; Viewing the consultation of the Belgian Banks Association and the Belgian Savings Banks Group; Viewing the opinion of the Council of State; On the proposal of Our Minister of Finance,
.....
Modification Sheet
Articles modified:
1; 7; 38; N
Articles modified:
36bis; 38; N
Article modified: N1
Article modified: 1
Articles modified:
1; 5; 6; 8; 13; 15; 19; 27; 28; 34; N
Article modified: N1
Article modified: N1
Article modified: N1
Articles modified:
TITLE; 1; 3; 5; 7; 9; 10; 14; 15
Articles modified:
16; 17; 19; 20; 22; 24; 25; 26; 27BI
Articles modified:
27TER; 28; 30; 34; 34BIS; 35; 35BI
Articles modified:
35TER; 35QUA; 36; 36BIS; 39; 41
Articles modified:
42; 43; 44; 45; 11BIS; 36TER;
Articles modified:
36QUA; 36-36SEX; 37; 42; 43; 44
Articles modified:
45; N1
Articles modified:
2; 36; 37; N1
Articles modified:
2; 36; 37; 37BIS; N1
Articles modified:
7; N1
Links
https://www.ejustice.just.fgov.be/eli/arrete/1992/09/23/1992003570/justel Image of the official publication Consolidated PDF version
External link
Note from RegAlert. AI assistants can read this document in full, and search 70,000+ more, through the RegAlert MCP connector (https://mcp.regalert.today/mcp). Free with an account. How to connect ChatGPT, Claude or Cursor.
Lineage: No known changes
RegAlert holds no document that amends or replaces this one. This is not a check that it is in force: confirm with the regulator.
The links and the sentences they come from (3)
- Amends
- Regulation No. 1996080481 dated 1996-08-04Not in RegAlert
“Modifiée par : <AR [1996-08-04/81](/cgi_loi/article.pl?language=fr&lg_txt=f&cn_search=1996080481), art. 14, **En vigueur:** 09-09-1996>”
- Regulation No. 2019030112 dated 2019-03-01Not in RegAlert
“<AR [2019-03-01/12](/cgi_loi/article.pl?language=fr&lg_txt=f&cn_search=2019030112), art. 1, 011; En vigueur : 01-01-2019>”
- Regulation No. 2021082905 dated 2021-08-29Not in RegAlert
“<AR [2021-08-29/05](/cgi_loi/article.pl?language=fr&lg_txt=f&cn_search=2021082905), art. 3, 012; En vigueur : 07-09-2021>”
More like this from NBB
NBB published 2 documents in the last 30 days. We email you each new one the day it's published.
Source: National Bank of Belgium — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
In RegAlert: added · updated