(b) transactions in foreign currency which entail a change in the holding of that currency shall be translated into euro at the exchange rate of the contract date;

(c) the settlement of the principal amounts resulting from reverse transactions in securities denominated in a foreign currency or in gold shall be deemed not to entail a change in the holding of that currency or of gold;

(d) actual cash receipts and payments shall be translated at the exchange rate on the day on which settlement occurs;

(e) where a long position exists, net inflows of currencies and gold made during the day shall be added, at the average rate or gold price of the inflows of the day for each respective currency and gold, to the previous day's holding, to produce a new weighted average cost. In the case of net outflows, the calculation of the realised gain or loss shall be based on the average cost of the respective currency or gold holding for the preceding day so that the average cost remains unchanged. Differences in the average rate/gold price between inflows and outflows made during the day shall also result in realised gains or losses. Where a liability situation exists in respect of a foreign currency or gold position, the reverse treatment shall apply to the abovementioned approach. Thus the average cost of the liability position shall be affected by net outflows, while net inflows shall reduce the position at the existing weighted average cost and shall result in realised gains or losses;

(f) costs of foreign exchange transactions and other general costs shall be posted to the profit and loss account.

1.   Foreign exchange forward transactions, forward legs of foreign exchange swaps and other currency instruments involving an exchange of one currency for another at a future date shall be included in the net foreign currency positions for calculating average costs and foreign exchange gains and losses.

2.   Interest rate swaps, futures, forward rate agreements, other interest rate instruments and options, with the exception of options embedded in securities, shall be accounted for and revalued on an item-by-item basis. These instruments shall be treated separately from on-balance-sheet items.

3.   Profits and losses arising from off-balance-sheet instruments shall be recognised and treated in a similar manner to on-balance-sheet instruments.

1.   Forward purchases and sales shall be recognised in off-balance-sheet accounts from the trade date to the settlement date at the spot rate of the forward transaction. Realised gains and losses on sale transactions shall be calculated using the average cost of the currency position on the trade date in accordance with the daily netting procedure for purchases and sales.

2.   The difference between the spot and the forward rates shall be treated as interest payable or receivable on an accruals basis.

3.   At the settlement date the off-balance-sheet accounts shall be reversed.

4.   The currency position shall be affected by forward transactions from the trade date at the spot rate.