Report on Danmarks Nationalbank's Accounts
Danmarks Nationalbank's accounts for 2005 show a profit of kr. 4.9 bilion, compared to kr. 2.8 billion in 2004. This change is due primarily to the increase in value adjustments by kr. 1.9 billion, and in other income by kr. 0.8 billion, while net income from interest declined by kr. 0.3 billion. Transfer of kr. 1.2 billion to the Value Adjustment Reserve reduces the amount for distribution to kr. 3.7 billion, of which kr. 0.7 billion is allocated to the General Reserves and kr. 3.0 billion is payable to the central government.
PRESENTATION OF DANMARKS NATIONALBANK'S ACCOUNTS
The accounts for 2005 have been prepared in accordance with the same accounting policies as in the previous year, cf. p. 123.
The accounts reflect that Danmarks Nationalbank issues banknotes and coins, holds substantial assets comprising the foreign-exchange reserve and functions as banker to the banks and the mortgage-credit institutes, and to the central government.
The profit from financial items was kr. 4,826 million, which is kr. 1,534 million higher than in 2004, and the total profit for the year is kr. 4,902 million, i.e. kr. 2,059 million higher than in 2004.
The balance sheet increased from kr. 337.1 billion to kr. 392.0 billion.
The profit and loss account
Net income from interest
Net income from interest totalled kr. 3,616 million, which is kr. 338 million less than in 2004.
Income from interest on foreign assets fell by kr. 202 million to kr. 5,420 million. The decrease reflects lower interest rates on a virtually unchanged average foreign-exchange reserve.
Net interest to banks and mortgage-credit institutes (interest on deposits and certificates of deposit less interest on monetary-policy lending[1] increased by kr. 668 million to kr. 2,232 million. The increase is mainly attributable to a higher average net position.
Danmarks Nationalbank's interest expenditure on the central government's deposit fell by kr. 553 million to kr. 1,173 million as the central government's balance on average was kr. 28 billion lower.
Interest on domestic bonds fell by kr. 120 million to kr. 1,699 million. The decrease is attributable to a lower level of interest rates.
Value adjustments, etc.
Value adjustments resulted in a gain of kr. 1,210 million.
Value adjustment of Danmarks Nationalbank's gold stock gave a gain of kr. 1,818 million, which is related to the fact that the price of gold converted to Danish kroner increased by 35 per cent during 2005.
Value adjustment of foreign-exchange positions[2] resulted in a loss of kr. 97 million. The loss is due to a market-value loss of kr. 806 million, which is partly offset by an exchange-rate gain of kr. 709 million.
The market-value loss on domestic securities of kr. 510 million can be related to a market-value loss on domestic bonds.
A significant part of the market-value loss on the domestic and foreign bonds can be related to the fact that a large proportion of the bond portfolio at the beginning of the year had a market value above par, and therefore automatically released a capital loss in step with redemption, or because the redemption date was forthcoming.
Other income
This item comprises income of kr. 800 million relating to the restructuring of Danish Ship Finance as a limited liability company, as well as revenue of kr. 48 million from the sale of coin sets and medals.
Expenses
Total expenses increased by kr. 254 million to kr. 804 million. The increase is mainly related to a one-off payment of kr. 200 million to Danmarks Nationalbank's Pension Fund subject to winding-up to cover Danmarks Nationalbank's pension commitment. The payment is necessary due to a continuing decrease in the level of interest rates combined with an adjustment of the capital requirements for pension funds. Staff expenses increased by kr. 9 million to 326 million, and other expenses increased by kr. 46 million to kr. 278 million. Other expenses comprise kr. 79.5 million for conversion and substantial maintenance of the Danmarks Nationalbank buildings, and represents an increase of kr. 24.3 million compared to 2004.
In the period the average number of staff fell from 533 to 521.
Profit for the year
The result for the year is a profit of kr. 4,902 million, against a profit of kr. 2,844 million in 2004. The positive value adjustment of the year of kr. 1,210 million is transferred to the Value Adjustment Reserve, which hereafter amounts to kr. 3,858 million. An amount of kr. 738 million, corresponding to 20 per cent of the profit excluding value adjustments, is allocated to the General Reserves, after which the General Reserves total kr. 48,074 million. Kr. 2,954 million is payable to the central government, corresponding to 80 per cent of the profit excluding value adjustments.
The balance sheet
Gold
The stock of gold amounted to kr. 6.9 billion at the end of the year, compared to kr. 5.1 billion in 2004. The increase is related to the increase in the price of gold converted to Danish kroner by 35 per cent during 2005.
Foreign assets
Assets amounted to kr. 204.2 billion at the end of the year, compared to kr. 208.5 billion in 2004. This is equivalent to a decrease of 2 per cent. The assets are placed in euro (77 per cent), dollars (14 per cent), pounds sterling (5 per cent) and Swedish kronor (4 per cent). The exchange-rate risk is restructured so that the exposure is mainly in euro. The positions are held mainly in highly-rated government bonds and government-guaranteed bonds, deposits with central banks and commercial banks, or as lending against collateral in government bonds and government-guaranteed bonds.
Foreign assets are the most significant item of the foreign-exchange reserve, together with gold, claims on the IMF and foreign liabilities.
Claims on the International Monetary Fund, IMF
This balance-sheet item comprises Denmark's IMF quota less the IMF's outstanding drawing right on Danmarks Nationalbank with addition of Danmarks Nationalbank's holdings of Special Drawing Rights, SDR, in the IMF and loans for the Poverty Reduction and Growth Facility Trust, PRGF. Loans under PRGF are guaranteed by the central government. The account with the IMF is stated in SDR (Special Drawing Rights). During 2005 the IMF made deposits equivalent to 327 million SDR with Danmarks Nationalbank, and Danmarks Nationalbank increased its holdings of SDR in the IMF by 50 million SDR. Net claims on the IMF have thus been reduced by 277 million SDR. Together with the value adjustments for the year this reduces the claim by kr. 2.1 billion to kr. 3.6 billion.
Monetary-policy lending
Monetary-policy lending is collateralised loans to banks and mortgage-credit institutes. This item increased by kr. 62.7 billion to kr. 135.3 billion.
Other lending
The loans of kr. 4.3 billion almost exclusively comprise lending to banks in connection with decentralised cash depots of kr. 3.5 billion and receivables from Danish Ship Finance A/S of kr. 0.8 billion.
Domestic bonds
The value of domestic bonds fell from kr. 37.1 billion to kr. 34.3 billion. The holdings comprise mortgage-credit bonds (kr. 21.8 billion), government bonds (kr. 9.9 billion) and Danish Ship Finance bonds (kr. 2.6 billion).
Shares
Danmarks Nationalbank has sold its shares in Grønlandsbanken A/S and Bella Center A/S. Danmarks Nationalbank has acquired shares in Danish Ship Finance A/S in connection with its restructuring as a limited liability company.
Banknotes and coins in circulation
Banknotes in circulation increased by kr. 3.9 billion to kr. 51.0 billion, while coins in circulation increased by kr. 0.3 billion to kr. 5.3 billion. Banknotes in circulation include Faroese banknotes at kr. 369 million. The increase in banknotes in circulation in 2005 is somewhat greater than in the previous years.
Monetary-policy deposits
The net deposits of banks and mortgage-credit institutes in current accounts and settlement accounts increased from kr. 6.9 billion to kr. 12.8 billion, and deposits placed in certificates of deposit rose from kr. 160.4 billion to kr. 207.6 billion.
Other deposits
This item comprises banks' and mortgage-credit institutes' deposits in euro-denominated current accounts and securities settlement accounts totalling kr. 0.2 billion, as well as other deposits of kr. 2.0 billion, of which the account of Danish Ship Finance A/S amounts to kr. 1.3 billion.
Central government
The central-government deposit decreased from kr. 60.8 billion to kr. 56.4 billion. The central government's share of the profit of Danmarks Nationalbank is included in this amount.
Foreign liabilities
The liabilities increased by kr. 0.8 billion to kr. 2.4 billion and comprise kroner deposits with Danmarks Nationalbank from supranational institutions and other central banks.
Counterpart of Special Drawing Rights allocated by the IMF, SDR
The allocation was unchanged during the year, and the adjustment of the item by kr. 0.1 billion to kr. 1.6 billion solely reflects the value adjustment for the year.
Net capital
The net capital amounts to kr. 52,232 million, which is the net capital at the beginning of the year of kr. 50,284 million with addition of the allocation to the Value Adjustment Reserve of kr. 1,210 million and allocation to the General Reserves of kr. 738 million.
ACCOUNTING POLICIES
General
Danmarks Nationalbank's Accounts for the year 2005 are presented in accordance with the Danmarks Nationalbank Act. In all significant respects these accounting policies are in accordance with the sound policies for European central banks. Unrealised gains on foreign exchange and securities are recognised in the profit and loss account, however.
The accounting policies applied are unchanged from the previous year.
Accounting policies:
Income and expenses are recognised in the profit and loss account for the period which they concern. Income and expenses in foreign exchange are converted at the exchange rates prevailing at the time they are recorded in the accounts.
Premiums and discounts on Treasury bills and certificates of deposit, as well as forward premiums on forward securities and foreign-exchange contracts, are recognised as interest.
Both realised and unrealised gains and losses are recognised in the profit and loss account.
Income from shares, etc. is recognised in the year in which the dividend is declared.
Gold is stated at market value on the balance-sheet date.
Assets and liabilities in foreign exchange , including forward contracts, are entered at the official exchange rates and securities market prices prevailing on the balance-sheet date. Swaps and futures are stated at market value .
Bonds , including forward contracts, are stated at market value at year-end .
Repurchase agreements, etc. Securities sold in connection with repurchase agreements, and gold and securities made available in lending facilities, are included in Danmarks Nationalbank's holdings.
Shares, etc. Capital investments and equivalent investments and equity investments in associated companies (in which the ownership interest or voting rights are 20 per cent or more) are stated at acquisition value or written down to market value at year-end if this is assessed to be significantly lower.
Tangible fixed assets are stated at acquisition price less depreciation and amortisation. Assets with an acquisition value of less than kr. 100,000 are recognised as expenditure in the year of acquisition. Depreciation on a linear per-annum basis takes place over the expected useful lives of the assets.
The useful lives are assessed as follows:
| Bank properties | 100 years |
| Other properties | 25-50 years |
| Building improvements | 25 years |
| Technical building facilities | 10-25 years |
| Technical production facilities | 5-10 years |
| Other machinery and equipment | 3-5 years |
PROFIT AND LOSS ACCOUNT FOR THE YEAR 2005
|
Note
|
2005 kr. '000 |
2004 kr. '000 |
||
| Income from interest, etc.: | ||||
| Interest on foreign assets | 5,420,336 | 5,622,583 | ||
| 1 | Interest on domestic loans | 2,159,247 | 1,728,517 | |
| Interest on domestic bonds | 1,698,753 | 1,818,472 | ||
| Commission and other income | 2,768 | 1,950 | ||
| 9,281,104 | 9,171,522 | |||
| Expenditure on interest, etc.: | ||||
| Interest on foreign liabilities | 43,681 | 31,499 | ||
| 2 | Interest on domestic deposits | 5,621,497 | 5,186,252 | |
| 5,665,178 | 5,217,751 | |||
| Net income from interest | 3,615,926 | 3,953,771 | ||
| Value adjustments, etc.: | ||||
| Value adjustment of gold | 1,817,511 | -173,672 | ||
| 3 | Value adjustment of foreign assets | -96,990 | -562,153 | |
| 4 | Value adjustment of domestic securities | -510,478 | 73,599 | |
| 1,210,043 | -662,226 | |||
| Profit from financial items | 4,825,969 | 3,291,545 | ||
| Income from shares, etc. | 67,510 | 71,733 | ||
| 5 | Other income | 848,495 | 83,605 | |
| Expenses: | ||||
| 6 | Staff expenses | 325,862 | 317,353 | |
| One-off payment to Danmarks Nationalbank's Pension Fund subject to winding-up | 200,000 | - | ||
| 7 | Other expenses | 278,467 | 232,554 | |
| 804,329 | 549,907 | |||
| 8 | Depreciation and write-down of tangible fixed assets | 35,513 | 34,452 | |
| Other expenditure | - | 19,000 | ||
| Profit for the year | 4,902,132 | 2,843,524 | ||
| Distribution of the profit for the year: | ||||
| Profit for the year | 4,902,132 | 2,843,524 | ||
| Allocation to/from the Value Adjustment Reserve | -1,210,043 | 662,226 | ||
| 3,692,089 | 3,505,750 | |||
| allocated as follows | ||||
| Allocation to the General Reserves, 20 per cent | 738,418 | 701,150 | ||
| Payable to the central government, 80 per cent | 2,953,671 | 2,804,600 | ||
| 3,692,089 | 3,505,750 |
BALANCE SHEET AT 31 DECEMBER 2005
| Note | 2005 kr. '000 |
2004 kr. '000 |
|
| Assets | |||
| 9 | Gold | 6,941,496 | 5,123,985 |
| 10 | Foreign assets | 204,204,373 | 208,455,625 |
| 11 | Claims on the International Monetary Fund, IMF, etc. | 3,557,456 | 5,683,980 |
| Monetary-policy lending | 135,296,000 | 72,635,000 | |
| 12 | Other lending | 4,323,980 | 3,412,350 |
| 13 | Domestic bonds | 34,329,299 | 37,101,501 |
| 14 | Shares, etc. | 748,028 | 630,452 |
| 15 | Tangible fixed assets | 656,657 | 669,589 |
| 16 | Other assets | 1,916,771 | 3,332,220 |
| Accruals | 22,347 | 21,498 | |
| Total assets | 391,996,407 | 337,066,200 | |
| Liabilities | |||
| Banknotes | 50,953,341 | 47,046,751 | |
| Coins | 5,264,107 | 4,991,867 | |
| Monetary-policy deposits | |||
| 17 | Net current accounts | 12,840,588 | 6,873,495 |
| Certificates of deposit | 207,582,000 | 160,379,000 | |
| 18 | Other deposits | 2,187,401 | 2,820,433 |
| Central government | 56,428,399 | 60,810,198 | |
| Foreign liabilities | 2,391,166 | 1,632,935 | |
| Counterpart of Special Drawing Rights | |||
| allocated by the International Monetary Fund (SDR) | 1,614,480 | 1,513,833 | |
| Other liabilities | 502,846 | 714,070 | |
| Total creditors | 339,764,328 | 286,782,582 | |
| General Capital Fund | 50,000 | 50,000 | |
| Statutory Adjustment Reserve | 250,000 | 250,000 | |
| Value Adjustment Reserve | 3,857,910 | 2,647,867 | |
| General Reserves | 48,074,169 | 47,335,751 | |
| 19 | Total net capital | 52,232,079 | 50,283,618 |
| Total liabilities | 391,996,407 | 337,066,200 | |
| Off-balance-sheet items | |||
| 20 | Guarantees | 101,525 | 169,868 |
| 21 | Other liabilities | 56,749,682 | 54,331,073 |
| 56,851,207 | 54,500,941 |
NOTES TO THE ACCOUNTS FOR 2005
| Note | 2005 kr. '000 |
2004 kr. '000 |
|||||||||||||||||
| 1 | Interest on domestic loans | ||||||||||||||||||
| Interest on monetary-policy loans (collateralised loans) | 2,125,359 | 1,715,392 | |||||||||||||||||
| Interest on loans to other borrowers | 33,888 | 13,125 | |||||||||||||||||
| 2,159,247 | 1,728,517 | ||||||||||||||||||
| 2 | Interest on domestic deposits | ||||||||||||||||||
| Interest on current accounts | 145,012 | 131,766 | |||||||||||||||||
| Interest on certificates of deposit | 4,212,589 | 3,147,189 | |||||||||||||||||
| Interest on the central government's deposits | 1,172,997 | 1,726,241 | |||||||||||||||||
| Interest to other depositors, etc. | 90,899 | 181,056 | |||||||||||||||||
| 5,621,497 | 5,186,252 | ||||||||||||||||||
| 3 | Value adjustment of foreign assets | ||||||||||||||||||
| Market-value adjustment | -806,116 | -393,588 | |||||||||||||||||
| Exchange-rate adjustment | 709,126 | -168,565 | |||||||||||||||||
| -96,990 | -562,153 | ||||||||||||||||||
| 4 | Value adjustment of domestic securities | ||||||||||||||||||
| Value adjustment of domestic bonds | -511,341 | -85,186 | |||||||||||||||||
| Value adjustment of shares | 863 | 158,785 | |||||||||||||||||
| -510,478 | 73,599 | ||||||||||||||||||
| 5 | Other income | ||||||||||||||||||
| Income from sale of coin sets and medals | 48,495 | 16,605 | |||||||||||||||||
| Income in connection with the restructuring of Danish Ship Finance as a liability company | 800,000 | - | |||||||||||||||||
| Reversal of provision for VB Finans | - | 67,000 | |||||||||||||||||
| 848,495 | 83,605 | ||||||||||||||||||
| 6 | Staff expenses | ||||||||||||||||||
| Salaries and remuneration | 242,851 | 250,648 | |||||||||||||||||
| Other staff expenses | 83,011 | 66,705 | |||||||||||||||||
| 325,862 | 317,353 | ||||||||||||||||||
| In 2005 the average number of employees was 521 on a full-time basis (2004: 533) | |||||||||||||||||||
| 7 | Other expenses | ||||||||||||||||||
| Materials for banknote production | 20,635 | 23,703 | |||||||||||||||||
| Materials for coin production | 35,378 | 27,927 | |||||||||||||||||
| Real property, current expenses | 127,771 | 99,353 | |||||||||||||||||
| Data processing, etc. | 27,491 | 30,907 | |||||||||||||||||
| Minor acquistions and maintenance machinery and equipment | 15,447 | 9,635 | |||||||||||||||||
| Other expenses | 51,745 | 50,834 | |||||||||||||||||
| Reimbursement of previously paid VAT on canteen services | - | -9,805 | |||||||||||||||||
| 278,467 | 232,554 | ||||||||||||||||||
| 8 | Depreciation and write-down of tangible fixed assets | ||||||||||||||||||
| Properties | 11,857 | 10,142 | |||||||||||||||||
| Operating equipment | 23,656 | 24,310 | |||||||||||||||||
| 35,513 | 34,452 | ||||||||||||||||||
| 9 | Gold | ||||||||||||||||||
| The gold stock amounts to 66,550 kg (2004: 66,550 kg) | |||||||||||||||||||
| 10 | Foreign assets | ||||||||||||||||||
| Foreign bonds | 46,933,781 | 63,351,323 | |||||||||||||||||
| Claims on central banks | 4,216,278 | 2,199,754 | |||||||||||||||||
| Claims on foreign commercial banks | 38,535,078 | 31,518,348 | |||||||||||||||||
| Repo transactions against collateral in foreign bonds | 114,518,675 | 111,385,548 | |||||||||||||||||
| Other foreign assets | 561 | 652 | |||||||||||||||||
| 204,204,373 | 208,455,625 | ||||||||||||||||||
| 11 | Claims on the International Monetary Fund (IMF), etc. | ||||||||||||||||||
| Denmark's IMF quota | 14,828,405 | 13,904,002 | |||||||||||||||||
| The IMF's holdings of Danish kroner | 12,878,805 | 9,309,853 | |||||||||||||||||
| Reserve position with the IMF | 1,949,600 | 4,594,149 | |||||||||||||||||
| Holdings of Special Drawing Rights, SDR | 705,226 | 243,471 | |||||||||||||||||
| 2,654,826 | 4,837,620 | ||||||||||||||||||
| Loans for the Poverty Reduction and Growth Facility Trust (guaranteed by the central government) |
902,630 | 846,360 | |||||||||||||||||
| 3,557,456 | 5,683,980 | ||||||||||||||||||
| 12 | Other lending | ||||||||||||||||||
| Banks and mortgage-credit institutes | 3,486,533 | 3,371,367 | |||||||||||||||||
| Receivable from associated company | 800,000 | - | |||||||||||||||||
| Other loans | 37,447 | 40,983 | |||||||||||||||||
| 4,323,980 | 3,412,350 | ||||||||||||||||||
| Receivable from associated company is subordinated current and future other debt and liabilities in the company. The receivable is expected to be finally repaid in 2007. | |||||||||||||||||||
| 13 | Domestic bonds | ||||||||||||||||||
| Danish government bonds | 9,949,949 | 14,984,496 | |||||||||||||||||
| Other domestic bonds | 24,379,350 | 22,117,005 | |||||||||||||||||
| 34,329,299 | 37,101,501 | ||||||||||||||||||
| 14 | Shares, etc. | ||||||||||||||||||
| Marketable shares | - | 178,744 | |||||||||||||||||
| Capital investments and equivalent investments | 455,466 | 390,148 | |||||||||||||||||
| Equity investments in associated companies | 292,562 | 61,560 | |||||||||||||||||
| 748,028 | 630,452 | ||||||||||||||||||
| Capital investments and equivalent investments comprise capital subscription to the ECB and shares in the Bank for InterŽnational Settlements (BIS), SWIFT, PBS Holding, SAS and Exhibition Centre Herning. | |||||||||||||||||||
Equity investments in associated companies comprise:
Danmarks Nationalbank's portfolio of shares, etc. at 31 December 2005 has an estimated market value of no less than kr. 2.0 billion. |
|||||||||||||||||||
| 15 | Tangible fixed assets | ||||||||||||||||||
| Properties | 582,048 | 581,364 | |||||||||||||||||
| Machinery and equipment | 74,609 | 88,225 | |||||||||||||||||
| 656,657 | 669,589 | ||||||||||||||||||
| At the most recent official assessment Danmarks Nationalbank's properties were valued at kr. 1,053 million. |
|||||||||||||||||||
| 16 | Other assets | ||||||||||||||||||
| The amount includes outstanding interest of kr. 1,888 million (2004: kr. 1,917 million) |
|||||||||||||||||||
| 17 | Net current accounts | ||||||||||||||||||
| Deposits in current accounts and settlement accounts | 120,597,236 | 63,296,195 | |||||||||||||||||
| Drawing on current accounts | 107,756,648 | 56,422,700 | |||||||||||||||||
| 12,840,588 | 6,873,495 | ||||||||||||||||||
| At 31 December 2005 Danmarks Nationalbank acts as full guarantor to VP Securities Services for kr. 74.5 billion (2004: kr. 30.3 billion) and to the Danish Bankers Association (Sum-clearing) for kr. 42.6 billion (2004: kr. 31.4 billion) in connection with the banks and mortgage-credit institutes' payment settlements with 2 January 2006 as the value date. | |||||||||||||||||||
| 18 | Other deposits | ||||||||||||||||||
| Banks and mortgage-credit institutes | 199,700 | 255,234 | |||||||||||||||||
| Other depositors | 1,987,701 | 2,565,199 | |||||||||||||||||
| 2,187,401 | 2,820,433 | ||||||||||||||||||
| General Capital Fund and Statutory Fund |
Value Adjustment Reserve |
General Reserves |
Total | ||
| kr. '000 | kr. '000 | kr. '000 | kr. '000 | ||
| 19 | Total net capital | ||||
| Net capital 1 January 2005 | 300,000 | 2,647,867 | 47,335,751 | 50,283,618 | |
| Carried forward from the profit for the year | - | 1,210,043 | 738,418 | 1,948,461 | |
| 300,000 | 3,857,910 | 48,074,169 | 52,232,079 |
| Note | 2005 kr. '000 |
2004 kr. '000 |
|
| 20 | Guarantees | ||
| VP Securities Services, share of Guarantee Capital | 68,796 | 72,523 | |
| VP Securities Services, guarantee for errors by other account-holding institutions | 31,699 | 33,315 | |
| Danish Ship Finance, share of Guarantee Capital | - | 63,000 | |
| Other guarantees | 1,030 | 1,030 | |
| 101,525 | 169,868 | ||
| The Bank has provided a guarantee for the obligations of Danmarks Nationalbank's Pension Fund subject to winding-up. | |||
| 21 | Other liabilities | ||
| Forward purchases of foreign exchange | 50,656,795 | 48,428,687 | |
| Market value of assets in currency swap agreements | 2,537,974 | 2,681,491 | |
| Futures | 242,164 | 114,663 | |
| Unutilised portion of credit facilities made available to the IMF (SDR) | 3,312,749 | 3,106,232 | |
| 56,749,682 | 54,331,073 | ||
|
The bank has established intervention agreements with the ECB, and in addition an undertaking of support has been given to former employees. The undertaking of support is covered by a pension insurance company.
Pension commitments: the present value of a defined benefit pension plan concerning the Board of Governors is stated under other liabilities to the extent that the commitments are not hedged in a pension fund.
|
SIGNATURES AND AUDIT REPORTS
Danmarks Nationalbank
Copenhagen, 28 February 2006
|
Nils Bernstein |
Torben Nielsen |
Jens Thomsen |
/Henrik Larsen, Chief Accountant |
Internal Auditor's Report
I have audited the Accounts of Danmarks Nationalbank for the financial year 1 January-31 December 2005, pp. 117-132, which are submitted in accordance with the Danmarks Nationalbank Act.
The Accounts are the responsibility of Danmarks Nationalbank's Committee of Directors and Board of Directors. My responsibility is to express an opinion on the Accounts based on my audit.
Basis of opinion
I have conducted the audit in accordance with Danish Standards on Auditing. Those standards require that I plan and perform the audit to obtain reasonable assurance that the Accounts are free of material misstatement.
The audit included examining, on a test basis, evidence supporting the amounts and other information disclosed in the Accounts. The audit also included assessing the accounting policies applied and the significant estimates made by the Committee of Directors and the Board of Directors. I believe that the audit performed provides sufficient basis for my opinion.
My audit has not resulted in any qualification.
Opinion
In my opinion, the Accounts give a true and fair view of Danmarks Nationalbank's assets, liabilities and financial position at 31 December 2005, and of the result of Danmarks Nationalbank's activities for the financial year 1 January-31 December 2005, in accordance with the Danmarks Nationalbank Act.
Copenhagen , 28 February 2006
Jan Birkedal, Chief Auditor
External Auditors' Report
As auditors appointed by the Minister of Economic and Business Affairs we have audited the Accounts of Danmarks Nationalbank for the financial year 1 January-31 December 2005, pp. 117-132, which are submitted in accordance with the Danmarks Nationalbank Act.
The Accounts are the responsibility of Danmarks Nationalbank's Committee of Directors and Board of Directors. Our responsibility is to express an opinion on the Accounts based on our audit.
Basis of opinion
We have conducted our audit in accordance with Danish Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance that the Accounts are free of material misstatement.
The audit included examining, on a test basis, evidence supporting the amounts and other information disclosed in the Accounts. The audit also included assessing the accounting policies applied and the significant estimates made by the Committee of Directors and the Board of Directors. We believe that the audit performed provides sufficient basis for our opinion.
Our audit has not resulted in any qualification.
Opinion
In our opinion, the Accounts give a true and fair view of Danmarks Nationalbank's assets, liabilities and financial position at 31 December 2005, and of the result of Danmarks Nationalbank's activities for the financial year 1 January-31 December 2005, in accordance with the Danmarks Nationalbank Act.
Copenhagen , 28 February 2006
Svend Ørjan Jensen, State-Authorised Public Accountant Mona Blønd, State-Authorised Public Accountant
These Accounts, audited in the manner prescribed by the by-laws of Danmarks Nationalbank, are hereby adopted by the Board of Directors.
Copenhagen , 20 March 2006
Hans E, Zeuthen Helle Bechgaard Michael Dithmer
Elisabeth Arnold Søren Bjerre-Nielsen Niels Boserup Pia Christmas-Møller
Kristian Thulesen Dahl Niels Fog Svend Erik Hovmand Johannes Fløystrup Jensen
Niels Due Jensen Knud Koch-Jensen Jette W, Knudsen Henrik Sass Larsen Kjeld Larsen
Michael Lunn Kirsten Nielsen Kirsten Nissen Jens Rohde Jens Rostrup-Nielsen
Kirsten Stallknecht Villy Søvndal Finn Thorgrimson Helle Thorning-Schmidt
[1] The rates of interest for loans and certificates of deposit are identical, while the rate of interest for deposits has been lover than the other interest rates.
[2] Foreign-exchange positions comprise the foreign-exchange reserve, as well as unsettled foreign-exchange contracts, currency and interest-rate swaps, domestic foreign-exchange balances, and the liability counterpart of Special Drawing Rights (SDR) allocated by the IMF.
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| Download Acrobat Reader here:  |
