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Bholat, David; Darbyshire, Robin --- "Central bank accounting" [2018] ELECD 329; in Conti-Brown, Peter; Lastra, M. Rosa (eds), "Research Handbook on Central Banking" (Edward Elgar Publishing, 2018) 314

Book Title: Research Handbook on Central Banking

Editor(s): Conti-Brown, Peter; Lastra, M. Rosa

Publisher: Edward Elgar Publishing

ISBN: 9781784719210

Section: Chapter 16

Section Title: Central bank accounting

Author(s): Bholat, David; Darbyshire, Robin

Number of pages: 19

Abstract/Description:

This chapter examines the important but not often discussed issue of accounting in central banks. Central banks are not-for-profit enterprises that pursue public policy objectives. Our chapter therefore highlights the distinguishing factors that make the financial statements of central banks different to those produced by other bodies. We begin by explaining why central banks produce financial statements. We then discuss a variety of specific topics in central bank accounting. In terms of balance sheet items, we discuss banknotes, shareholders’ equity, gold, foreign exchange and financial instruments. Our discussion of the income statement then centres on profit recognition and distribution which are of significance in the relationship between the central bank and the Finance Ministry.