The financial statements are prepared in accordance with the Statutes and accounting policies of the Bank. The accounting policies are based on International Financial Reporting Standards (IFRS) and are implemented in accordance with the decisions of the Board of Directors.
The BIS publishes audited annual financial statements as at 31 March each year in its Annual Report, which provides a comprehensive overview and analysis of the Bank's balance sheet and profit and loss account, together with other financial, capital adequacy and risk management disclosures in line with international accounting frameworks. It also publishes unaudited semiannual financial statements as at 30 September each year.
The BIS balance sheet total was SDR 242.2 billion at 31 March 2017.
The size of the BIS balance sheet is in normal circumstances driven by deposits from customers. At 31 March 2017, deposits (excluding repurchase agreements) amounted to SDR 204.4 billion. Around 95% of deposits were denominated in currencies, with the remainder in gold. Currency deposits were SDR 194.4 billion. The share of currency deposits denominated in US dollars was 76%, that in euros was 11% and that in sterling was 6%. Gold deposits stood at SDR 9.9 billion at 31 March 2017.
Most of the assets held by the BIS consist of government and quasi-government securities plus investments (including reverse repurchase agreements) with commercial banks of international standing. The Bank's credit exposure is managed in a conservative manner, with most of it rated no lower than A-. At 31 March 2017, 39% of the BIS's total assets comprised government and other securities or treasury bills. Sight account balances (mainly at central banks) were 20% and reverse purchase agreements (primarily with sovereign bonds as collateral) were 18%, while gold and gold loans made up a further 11%. The gold balance included 103 tonnes in the Bank's own investment portfolio.
Statement of account
Bank budget policy
The process of formulating the Bank's annual expenditure budget starts about six months in advance with the setting by Management of a broad business orientation and financial framework. Within this context, business areas specify their plans and corresponding resource requirements. The process of reconciling detailed business plans, objectives and overall resource availability culminates in a draft budget, which must be approved by the Board before the start of the financial year.
The budget distinguishes between administrative and capital expenditures. As with organisations similar to the BIS, Management and staff expenditure - including remuneration, pensions, and health and accident insurance - amounts to around 70% of administrative expenditure. The other major categories, each accounting for about 10% of administrative spending, are information technology (IT), buildings and equipment, and general operational costs. Capital spending, relating mainly to buildings and IT investment, can vary significantly from year to year depending on the projects in progress. Details of the administrative and capital expenditures can be found in the BIS Annual Report.