Europaudvalget 2018
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EUROPEAN
COMMISSION
Brussels, 27.6.2018
COM(2018) 525 final
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN
PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS
ANNUAL ACCOUNTS OF THE EUROPEAN COMMISSION 2017
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EN
EN
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Annual accounts of the European Commission 2017
CONTENTS
CERTIFICATION OF THE ACCOUNTS .................................................................... 4
FINANCIAL STATEMENTS AND EXPLANATORY NOTES ............................................ 6
BALANCE SHEET............................................................................................ 9
STATEMENT OF FINANCIAL PERFORMANCE ..................................................... 10
CASHFLOW STATEMENT ............................................................................... 11
STATEMENT OF CHANGES IN NET ASSETS ...................................................... 12
NOTES TO THE FINANCIAL STATEMENTS ........................................................ 13
BUDGETARY IMPLEMENTATION REPORTS ........................................................... 57
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CERTIFICATION OF THE ACCOUNTS
The annual accounts of the European Commission for the year 2017 have been prepared in accordance
with the Financial Regulation applicable to the general budget of the European Union and the accounting
rules adopted by myself in my capacity as the Commission's Accounting Officer, as are to be applied by
all the institutions and Union bodies.
I acknowledge my responsibility for the preparation and presentation of the annual accounts of the
European Commission in accordance with Article 68 of the Financial Regulation.
I have obtained from the authorising officers, who certified its reliability, all the information necessary for
the production of the accounts that show the European Commission's assets and liabilities and the
budgetary implementation.
I hereby certify that based on this information, and on such checks as I deemed necessary to sign off the
accounts, I have a reasonable assurance that the accounts present fairly, in all material aspects, the
financial position, the results of the operations and the cash flow of the European Commission.
[signed]
Rosa ALDEA BUSQUETS
Accounting Officer of the Commission
22 June 2018
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EUROPEAN COMMISSION
FINANCIAL YEAR 2017
FINANCIAL STATEMENTS AND
EXPLANATORY NOTES
It should be noted that due to the rounding of figures into millions of euros, some financial data in the
tables below may appear not to add-up.
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CONTENTS
BALANCE SHEET............................................................................................... 9
STATEMENT OF FINANCIAL PERFORMANCE ........................................................ 10
CASHFLOW STATEMENT .................................................................................. 11
STATEMENT OF CHANGES IN NET ASSETS ......................................................... 12
NOTES TO THE FINANCIAL STATEMENTS ........................................................... 13
1.
2.
3.
4.
5.
6.
7.
8.
SIGNIFICANT ACCOUNTING POLICIES ................................................. 14
NOTES TO THE BALANCE SHEET ......................................................... 27
NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE ..................... 43
CONTINGENT LIABILITIES AND ASSETS ............................................... 47
BUDGETARY AND LEGAL COMMITMENTS .............................................. 48
FINANCIAL INSTRUMENTS DISCLOSURES ............................................ 50
RELATED PARTIES ............................................................................ 54
EVENTS AFTER THE BALANCE SHEET DATE .......................................... 55
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BALANCE SHEET
EUR millions
Note
NON-CURRENT ASSETS
Intangible assets
Property, plant and equipment
Investments accounted for using the equity method
Financial assets
Pre-financing
Exchange receivables and non-exchange recoverables
CURRENT ASSETS
Financial assets
Pre-financing
Exchange receivables and non-exchange recoverables
Inventories
Cash and cash equivalents
TOTAL ASSETS
NON-CURRENT LIABILITIES
Pension and other employee benefits
Provisions
Financial liabilities
CURRENT LIABILITIES
Provisions
Financial liabilities
Payables
Accrued charges and deferred income
TOTAL LIABILITIES
NET ASSETS
Reserves
Amounts to be called from Member States*
NET ASSETS
*
31.12.2017
149
7 544
581
58 533
24 745
619
92 172
31.12.2016
135
6 832
528
60 733
21 777
729
90 734
3 295
23 964
10 607
75
27 579
65 521
156 255
2.1
2.2
2.3
2.4
2.5
2.6
2.4
2.5
2.6
2.7
2.8
8 339
24 552
11 421
62
23 113
67 488
159 659
2.9
2.10
2.11
(72 495)
(2 617)
(49 414)
(124 526)
(66 550)
(1 786)
(54 375)
(122 711)
(626)
(2 165)
(40 240)
(67 027)
(110 059)
(232 770)
(76 515)
3 031
(79 546)
(76 515)
2.10
2.11
2.12
2.13
(645)
(6 813)
(39 376)
(63 314)
(110 148)
(234 674)
(75 014)
2.14
2.15
3 062
(78 077)
(75 014)
The European Parliament adopted a budget on 18 November 2017 which provides for the payment of the Commission's short-term
liabilities from own resources to be collected by, or called up from, the Member States in 2018. Additionally, under article 83 of the
Staff Regulations (Council Regulation 259/68 of 29 February 1968 as amended), the Member States shall jointly guarantee the
liability for pensions.
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STATEMENT OF FINANCIAL PERFORMANCE
EUR millions
Note
REVENUE
Revenue from non-exchange transactions
GNI resources
Traditional own resources
VAT
Fines
Recovery of expenses
Other
Revenue from exchange transactions
Financial revenue
Other
Total Revenue
EXPENSES
Implemented by Member States
European Agricultural Guarantee Fund
European Agricultural Fund for Rural Development
and other rural development instruments
European Regional Development Fund &
Cohesion Fund
European Social Fund
Other
Implemented by the Commission, executive agencies
and trust funds
Implemented by other EU agencies and bodies
Implemented by third countries and int. organisations
Implemented by other entities
Staff and pension costs
Changes in employee benefits actuarial assumptions
Finance costs
Other
Total Expenses
ECONOMIC RESULT OF THE YEAR
3.6
2017
2016
3.1
3.2
3.3
78
20
16
4
1
6
620
520
947
664
879
515
95
20
15
3
1
1
578
439
859
858
946
695
129 145
3.4
3.5
1 820
692
2 511
131 657
139 376
1 746
649
2 395
141 771
(44 289)
(11 359)
(17 650)
(7 353)
(1 253)
(15 763)
(3
(4
(1
(6
(3
(1
(4
429)
115)
478)
995)
581)
849)
642)
(44 152)
(12 604)
(35 045)
(9 366)
(1 606)
(15 644)
(3 064)
(3 259)
(2 035)
(6 911)
(992)
(1 857)
(3 462)
(139 996)
1 775
3.7
3.8
3.8
3.8
3.9
3.10
3.11
(123 756)
7 901
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CASHFLOW STATEMENT
EUR millions
Note
Economic result of the year
Operating activities
Amortisation
Depreciation
(Increase)/decrease in loans
(Increase)/decrease in pre-financing
(Increase)/decrease in exchange receivables and
non-exchange recoverables
(Increase)/decrease in inventories
Increase/(decrease) in pension and other
employee benefits
Increase/(decrease) in provisions
Increase/(decrease) in financial liabilities
Increase/(decrease) in payables
Increase/(decrease) in accrued charges and
deferred income
Prior year budgetary surplus taken as
non-cash revenue
Other non-cash movements
Investing activities
(Increase)/decrease in intangible assets and property,
plant and equipment
(Increase)/decrease in investments accounted for
using the equity method
(Increase)/decrease in available for sale financial
assets
(Increase)/decrease in financial assets at fair value
through surplus or deficit
NET CASHFLOW
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at year-end
2017
7 901
27
630
395
(3 557)
(705)
13
5 945
850
(313)
(864)
(3 713)
(6 405)
4
(1 382)
(53)
(3 217)
(22)
(4 467)
(4 467)
27 579
23 113
2016
1 775
26
314
1 726
(497)
(1 222)
0
3 343
548
(2 254)
7 874
(935)
(1 349)
23
(1 587)
(31)
(835)
(0)
6 920
6 920
20 660
27 579
2.8
2.8
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STATEMENT OF CHANGES IN NET ASSETS
EUR millions
Amounts to be called from Member States
Accumulated Surplus/(Deficit)
BALANCE AS AT 31.12.2015
Movement in Guarantee Fund reserve
Fair value movements
Other
2016 budget result credited to Member States
Economic result of the year
BALANCE AS AT 31.12.2016
Movement in Guarantee Fund reserve
Fair value movements
Other
2017 budget result credited to Member States
Economic result of the year
BALANCE AS AT 31.12.2017
(79 878)
(82)
(11)
(1 349)
1 775
(79 546)
(20)
(7)
(6 405)
7 901
(78 077)
Other reserves
2 629
82
9
2 720
20
47
2 788
Fair value
reserve
286
24
311
10
(46)
275
Net Assets
(76 964)
-
24
(2)
(1 349)
1 775
(76 515)
10
(6)
(6 405)
7 901
(75 014)
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NOTES TO THE FINANCIAL STATEMENTS
For further information in addition to the notes below, please also see the 2017 EU consolidated annual
accounts.
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1.
SIGNIFICANT ACCOUNTING POLICIES
The European Commission (hereinafter referred to as the Commission) applies the accounting policies of
the European Union (hereinafter referred to as the EU). A summary of the significant EU accounting
policies is given below.
1.1.
LEGAL BASIS AND ACCOUNTING RULES
The accounts of the EU are kept in accordance with Regulation (EU, Euratom) No 966/2012 of the
European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the
general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298,
26 October 2012, p. 1) hereinafter referred to as the 'Financial Regulation' and Commission Delegated
Regulation (EU) No 1268/2012 of 29 October 2012 (OJ L 362, 31 December 2012, p. 1) laying down
detailed rules of application of this Financial Regulation.
In accordance with article 143 of the Financial Regulation, the EU prepares its financial statements on the
basis of accrual-based accounting rules that are based on International Public Sector Accounting
Standards (IPSAS). These accounting rules, adopted by the Accounting Officer of the Commission, have
to be applied by all the institutions and EU bodies falling within the scope of consolidation in order to
establish a uniform set of rules for accounting, valuation and presentation of the accounts with a view to
harmonising the process for drawing up the financial statements and consolidation.
Application of new and amended European Union accounting rules (EAR)
Amendments to EAR which are effective for annual periods beginning on or after 1 January 2017
The following amendments have been adopted by the Accounting Officer of the Commission:
Amendments to EAR 1 "Financial Statements"; and
Amendments to EAR 14 "Accounting Policies, Changes in Accounting Estimates and Errors".
These amendments stem from the recent changes to IPSAS 1 "Presentation of Financial Statements"
and IPSAS 3 "Accounting Policies, Changes in Accounting Estimates and Errors", proposing
improvements to ensure consistency among IPSAS standards. Consequently, the related EARs have
been updated and the main changes relate to the description of qualitative characteristics of financial
reporting and updates to the hierarchy of sources to be used in the selection and application of
accounting policies.
The adoption of these amendments has had no impact on the EU annual accounts 2017.
New and revised EARs adopted but not yet effective at 31 December 2017
The EU has not applied the following new and revised EARs, which have been adopted by the Accounting
Officer of the Commission, but which are not yet effective:
Revision to EAR 12 "Employee Benefits" (effective for annual
1 January 2018): The EAR 12 has been revised in line with
Benefits". The main change is that any gain or loss resulting
assumptions is to be recognised directly in net assets, in contrast
recognise them in surplus or deficit.
periods beginning on or after
the new IPSAS 39 "Employee
from changes in the actuarial
with the current requirement to
The EU is currently analysing the impact and practical consequences of applying this revised EAR.
However, no significant impact is expected on the consolidated financial statements, except for the
recognition of the actuarial assumptions in the net assets instead of the statement of financial
performance.
New EAR 20 "Public Sector Combinations" (effective for annual periods beginning on or after
1 January 2019): The EAR 20, which is based on the IPSAS 40 "Public Sector Combinations",
establishes the classification of a public sector combination into two different types depending on
whether the transaction takes place under common control or not: (i) amalgamation, in which the
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transaction is based on the carrying amounts of the entity combined with the EU; and (ii)
acquisition, in which the transaction is based on the acquisition date fair values of the entity
acquired by the EU. Both have distinct requirements and levels of disclosure, in order to provide a
better understanding of its effects to users of the financial statements of the EU.
The impact on the EU financial statements in the year of initial application will depend on whether in
that period the EU would enter into a public sector combination transaction.
1.2.
ACCOUNTING PRINCIPLES
The objective of financial statements is to provide information about the financial position, performance
and cashflows of an entity that is useful to a wide range of users. For the EU as a public sector entity, the
objectives are more specifically to provide information useful for decision making, and to demonstrate the
accountability of the entity for the resources entrusted to it. It is with these goals in mind that the
present document has been drawn up.
The overall considerations (or accounting principles) to be followed when preparing the financial
statements are laid down in EU accounting rule 1 "Financial Statements" and are the same as those
described in IPSAS 1: fair presentation, accrual basis, going concern, consistency of presentation,
materiality, aggregation, offsetting and comparative information. The qualitative characteristics of
financial reporting are relevance, faithful representation (reliability), understandability, timeliness,
comparability and verifiability.
1.3.
CONSOLIDATION
Scope of consolidation
The consolidated financial statements of the EU comprise all significant controlled entities (i.e. the EU
institutions (including the Commission) and the EU agencies), associates and joint ventures. The
complete list of consolidated entities can be found in note
9
of the EU financial statements. It now
comprises 52 controlled entities and 1 associate. Entities that fall under the consolidation scope, but
which are immaterial to the EU consolidated financial statements as a whole, need not be consolidated or
accounted for using equity method where to do so would result in excessive time or cost to the EU. Those
entities are referred to as 'Minor entities' and are separately listed in note
9.
In 2017, 7 entities have
been classified as minor entities.
Controlled entities
The decision to include an entity in the scope of consolidation is based on the control concept. Controlled
entities are all entities for which the EU is exposed, or has right, to variable benefits from its involvement
and has the ability to affect the nature and amount of those benefits through its power over the other
entity. This power must be presently exercisable and must relate to the relevant activities of the entity.
Controlled entities are fully consolidated. The consolidation begins at the first date on which control
exists, and ends when such control no longer exists.
The most common indicators of control within the EU are: creation of the entity through founding treaties
or secondary legislation, financing of the entity from the EU budget, the existence of voting rights in the
governing bodies, audit by the European Court of Auditors and discharge by the European Parliament. An
individual assessment for each entity is made in order to decide whether one or all of the criteria listed
above are sufficient to result in control.
Under this approach, the EU's institutions (except the European Central Bank) and agencies (excluding
the agencies of the former 2nd pillar) are considered as under the exclusive control of the EU and are
therefore included in the consolidation scope. Furthermore the European Coal and Steel Community
(ECSC) in Liquidation is also considered as a controlled entity.
All material "inter-entity transactions and balances" between EU controlled entities are eliminated, while
unrealised gains and losses on such transactions are not material and so have not been eliminated.
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Joint Arrangements
A joint arrangement is an agreement over which the EU and one or more parties have joint control. Joint
control is contractually agreed sharing of control over an arrangement, which exists only when decisions
about the relevant activities require the unanimous consent of parties sharing control. Joint agreements
can be either joint operations or joint ventures. In case a joint arrangement is structured through a
separate vehicle and parties to the joint arrangement have rights to the net assets of the arrangement,
this joint arrangement classifies as a joint venture. Participations in joint ventures are accounted for
using the equity method (see note
1.5.4).
In case the parties have rights to the assets, and obligations
for the liabilities, related to the arrangement, this joint arrangement is classified as a joint operation. In
relation to its interest in joint operations, the EU recognises in its financial statements: its assets and
liabilities, revenue and expense, as well as its share of assets, liabilities, revenue and expense held or
incurred jointly.
Associates
Associates are entities over which the EU has, directly or indirectly, significant influence but not control.
It is presumed that significant influence exists if the EU holds directly or indirectly 20 % or more of the
voting rights. Participations in associates are accounted for using the equity method (see note
1.5.4).
Non-consolidated entities the funds of which are managed by the Commission
The funds of the Joint Sickness Insurance Scheme for staff of the EU, the European Development Fund
and the Participants Guarantee Fund are managed by the Commission on their behalf. However, since
these entities are not controlled by the EU, they are not consolidated in its financial statements.
1.4.
BASIS OF PREPARATION
Financial statements are presented annually. The accounting year begins on 1 January and ends on
31 December.
1.4.1.
Currency and basis for conversion
Functional and reporting currency
The financial statements are presented in millions of euros, unless stated otherwise, the euro being the
EU's functional and reporting currency.
Transactions and balances
Foreign currency transactions are translated into euros using the exchange rates prevailing at the dates
of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency
transactions and from the re-translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the statement of financial performance. Translation
differences on non-monetary financial instruments classified as available for sale financial assets are
included in the fair value reserve.
Different conversion methods apply to property, plant and equipment and intangible assets, which retain
their value in euros at the rate that applied at the date when they were purchased.
Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into
euros on the basis of the European Central Bank (ECB) exchange rates applying on 31 December:
Euro exchange rates
Currency
BGN
CZK
DKK
GBP
HRK
HUF
31.12.2017
1.9558
25.5350
7.4449
0.8872
7.4400
310.3300
31.12.2016
1.9558
27.0210
7.4344
0.8562
7.5597
309.8300
16
Currency
PLN
RON
SEK
CHF
JPY
USD
31.12.2017
4.177
4.6585
9.8438
1.1702
135.01
1.1993
31.12.2016
4.4103
4.5390
9.5525
1.0739
123.4000
1.0541
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1.4.2.
Use of estimates
In accordance with IPSAS and generally accepted accounting principles, the financial statements
necessarily include amounts based on estimates and assumptions by management based on the most
reliable information available. Significant estimates include, but are not limited to: amounts for employee
benefit liabilities, provisions, financial risk on inventories and accounts receivable, accrued revenue and
charges, contingent assets and liabilities, degree of impairment of intangible assets and property, plant
and equipment and amounts disclosed in the notes concerning financial instruments. Actual results could
differ from those estimates. Changes in estimates are reflected in the period in which they become
known.
1.5.
1.5.1.
BALANCE SHEET
Intangible assets
Acquired computer software licences are stated at historical cost less accumulated amortisation and
impairment losses. The assets are amortised on a straight-line basis over their estimated useful lives
(3-11 years). The estimated useful lives of intangible assets depend on their specific economic lifetime or
legal lifetime determined by an agreement. Internally developed intangible assets are capitalised when
the relevant criteria of the EU accounting rules are met and the expenses relate solely to the
development phase of the asset. The costs capitalisable include all directly attributable costs necessary to
create, produce, and prepare the asset to be capable of operating in the manner intended by
management. Costs associated with research activities, non-capitalisable development costs and
maintenance costs are recognised as expenses as incurred.
1.5.2.
Property, plant and equipment
All property, plant and equipment are stated at historical cost less accumulated depreciation and
impairment losses. Cost includes expenditure that is directly attributable to the acquisition, construction
or transfer of the asset.
Subsequent costs are included in the
asset’s
carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits or service potential associated with
the item will flow to the EU and its cost can be measured reliably. Repairs and maintenance costs are
charged to the statement of financial performance during the financial period in which they are incurred.
Land and works of art are not depreciated as they are deemed to have an indefinite useful life. Assets
under construction are not depreciated as these assets are not yet available for use. Depreciation on
other assets is calculated using the straight-line method to allocate their cost less their residual values
over their estimated useful lives, as follows:
Type of asset
Buildings
Space assets
Plant and equipment
Furniture and vehicles
Computer hardware
Other
Straight line depreciation rate
4 % to 10 %
8 % to 25 %
10 % to 25 %
10 % to 25 %
25 % to 33 %
10 % to 33 %
Gains or losses on disposals are determined by comparing proceeds less selling expenses with the
carrying amount of the disposed asset and are included in the statement of financial performance.
Leases
Leases of tangible assets, where the EU has substantially all the risks and rewards of ownership, are
classified as finance leases. Finance leases are capitalised at the inception of the
lease’s
commencement
at the lower of the fair value of the leased asset and the present value of the minimum lease payments.
The interest element of the finance lease payment is charged to expenditure over the period of the lease
at a constant periodic rate in relation to the balance outstanding. The rental obligations, net of finance
charges, are included in financial liabilities (non-current and current). The interest element of the finance
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cost is charged to the statement of financial performance over the lease period so as to produce a
constant periodic interest rate on the remaining balance of the liability for each period. The assets held
under finance leases are depreciated over the shorter of the asset's useful life and the lease term.
Leases where the lessor retains a significant portion of the risks and rewards inherent to ownership are
classified as operating leases. Operating lease payments are recognised as an expense in the statement
of financial performance on a straight-line basis over the lease term.
1.5.3.
Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation/depreciation and are tested
annually for impairment. Assets that are subject to amortisation/depreciation are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the
asset’s
carrying amount
exceeds its recoverable (service) amount. The recoverable (service) amount is the higher of an
asset’s
fair value less costs to sell and its value in use.
Intangible assets and property, plant and equipment residual values and useful lives are reviewed, and
adjusted if appropriate, at least once per year. An
asset’s
carrying amount is written down immediately
to its recoverable (service) amount if the
asset’s
carrying amount is greater than its estimated
recoverable (service) amount. If the reasons for impairments recognised in previous years no longer
apply, the impairment losses are reversed accordingly.
1.5.4.
Investments accounted for using the equity method
Participations in associates and joint ventures
Investments accounted for using the equity method are initially recognised at cost. The EU's interest in
these investments is recognised in the statement of financial performance, and its share in the
movements in reserves is recognised in the fair value reserve in net assets. The initial cost together with
all movements (further contributions, share of economic results and reserve movements, impairments,
and dividends) give the book value of the investment in the financial statements at the balance sheet
date. Distributions received from the investment reduce the carrying amount of the asset.
If the EU's share of deficits of an investment accounted for using the equity method equals or exceeds its
interest in the investment, the EU discontinues recognising its share of further losses ("unrecognised
losses"). After the EU's interest is reduced to zero, additional losses are provided for and a liability is
recognised, only to the extent that the EU has incurred legal or constructive obligation or made payments
on behalf of the entity.
If there are indications of impairment, a write-down to the lower recoverable amount is necessary. The
recoverable amount is determined as described under note
1.5.3.
If the reason for impairment ceases to
apply at a later date, the impairment loss is reversed to the carrying amount that would have been
determined had no impairment loss been recognised.
In cases where the EU holds 20 % or more of an investment capital fund, it does not seek to exert
significant influence. Such funds are therefore treated as financial instruments and categorised as
available for sale financial assets.
Associates and joint ventures classified as minor entities are not accounted for under the equity method.
EU contributions to those entities are accounted for as an expense of the period.
1.5.5.
Financial assets
Classification
The EU classifies their financial assets in the following categories: financial assets at fair value through
surplus or deficit; loans and receivables; held-to-maturity investments; and available for sale financial
assets. The classification of financial instruments is determined at initial recognition and re-evaluated at
each balance sheet date.
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(i) Financial assets at fair value through surplus or deficit
A financial asset is classified in this category if acquired principally for the purpose of selling in the short
term. Derivatives are also categorised in this category. Assets in this category are classified as current
assets if they are expected to be realised within 12 months of the balance sheet date.
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market. They arise when the EU provides money, goods or services directly to a
debtor with no intention of trading the receivable, or in case the EU is subrogated to the rights of the
original lender following a payment made by the EU under a guarantee contract. Payments due within 12
months of the balance sheet date are classified as current assets. Payments due after 12 months from
the balance sheet date are classified as non-current assets. Loans and receivables include term deposits
with the original maturity above three months.
(iii) Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments
and fixed maturities that the EU has the positive intention and ability to hold to maturity. During this
financial year, the EU did not hold any investments in this category.
(iv) Available for sale financial assets
Available for sale financial assets are non-derivatives that are either designated in this category or not
classified in any of the other categories. They are classified as either current or non-current assets,
depending on the period of time the EU expects to hold them. Investments in entities that are neither
consolidated nor accounted for using the equity method and other equity-type investments (e.g. Risk
Capital Operations) are also classified as available for sale financial assets.
Initial recognition and measurement
Purchases and sales of financial assets at fair value through surplus or deficit, held-to-maturity and
available for sale are recognised on trade-date
the date on which the EU commits to purchase or sell
the asset. Cash equivalents and loans are recognised when cash is advanced to the borrowers. Financial
instruments are initially recognised at fair value. For all financial assets not carried at fair value through
surplus or deficit transactions costs are added to the fair value at initial recognition. Financial assets
carried at fair value through surplus or deficit are initially recognised at fair value and transaction costs
are expensed in the statement of financial performance.
The fair value of a financial asset on initial recognition is normally the transaction price (i.e. the fair value
of the consideration received), unless the fair value of that instrument is evidenced by comparison with
other observable current market transactions in the same instrument or based on a valuation technique
whose variables include only data from observable markets (e.g. in case of some derivative contracts).
However, when a long-term loan that carries no interest or an interest below market conditions is
granted, its fair value can be estimated as the present value of all future cash receipts discounted using
the prevailing market rate of interest for a similar instrument with a similar credit rating.
Loans granted are measured at their nominal amount, which is considered to be the fair value of the
loan. The reasoning for this is as follows:
The
“market environment”
for EU lending is very specific and different from the capital market
used to issue commercial or government bonds. As lenders in these markets have the
opportunity to choose alternative investments, the opportunity possibility is factored into market
prices. However, this opportunity for alternative investments does not exist for the EU which is
not allowed to invest money on the capital markets; it only borrows funds for the purpose of
lending at the same rate. This means that there is no alternative lending or investment option
available to the EU for the sums borrowed. Thus, there is no opportunity cost and therefore no
basis of comparison with market rates. In fact, the EU lending operation itself represents the
market. Essentially, since the opportunity cost "option" is not applicable, the market price does
not fairly reflect the substance of the EU lending transactions. Therefore, it is not appropriate to
determine the fair value of EU lending with reference to commercial or government bonds.
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Furthermore as there is no active market or similar transactions to compare with, the interest
rate to be used by the EU for fair valuing its lending operations under the EFSM, BOP and other
such loans, should be the interest rate charged.
In addition, for these loans, there are compensating effects between loans and borrowings due to
their back-to-back character. Thus, the effective interest for the loan equals the effective interest
rate for the related borrowings. The transaction costs incurred by the EU and then recharged to
the beneficiary of the loan are directly recognised in the statement of financial performance.
Financial instruments are derecognised when the rights to receive cashflows from the investments have
expired or the EU has transferred substantially all risks and rewards of ownership to another party.
Subsequent measurement
a) Financial assets at fair value through surplus or deficit are subsequently carried at fair value.
Gains and losses arising from changes in the fair value of the
‘financial
instruments at fair value
through surplus or
deficit’
category are included in the statement of financial performance in the
period in which they arise.
b) Loans and receivables are carried at amortised cost using the effective interest method. In the
case of loans granted on borrowed funds, the same effective interest rate is applied to both the
loans and borrowings since these loans have the characteristics of 'back-to-back operations' and
the differences between the loan and the borrowing conditions and amounts are not material. The
transaction costs incurred by the EU and then recharged to the beneficiary of the loan are directly
recognised in the statement of financial performance.
c)
Held to maturity assets are carried at amortised cost using the effective interest method. The EU
currently holds no held to maturity investments.
d) Available for sale financial assets are subsequently carried at fair value. Gains and losses arising
from changes in the fair value of available for sale financial assets are recognised in the fair value
reserve, except for translation differences on monetary assets which are recognised in the
statement of financial performance. When assets classified as available for sale financial assets
are derecognised or impaired, the cumulative fair value adjustments previously recognised in the
fair value reserve are recognised in the statement of financial performance. Interest on available
for sale financial assets calculated using the effective interest method is recognised in the
statement of financial performance. Dividends on available for sale equity instruments are
recognised when the EU's right to receive payment is established.
The fair values of quoted investments in active markets are based on current bid prices. If the market for
a financial asset is not active (and for unlisted securities and over-the–counter derivatives), the EU
establishes a fair value by using valuation techniques. These include the use of recent
arm’s
length
transactions, reference to other instruments that are substantially the same, discounted cashflow
analysis, option pricing models and other valuation techniques commonly used by market participants.
Investments in Venture Capital Funds, classified as available for sale financial assets, which do not have a
quoted market price in an active market are valued at the attributable net asset value, which is
considered as an equivalent of their fair value.
In cases where the fair value of investments in equity instruments that do not have a quoted market
price in an active market cannot be reliably measured, these investments are valued at cost less
impairment losses.
Impairment of financial assets
The EU assesses at each balance sheet date whether there is objective evidence that a financial asset is
impaired. A financial asset is impaired and impairment losses are incurred if, and only if, there is
objective evidence of impairment as a result of one or more events that occurred after the initial
recognition of the asset and that loss event (or events) has an impact on the estimated future cashflows
of the financial asset that can be reliably estimated.
(a)
Assets carried at amortised cost
If there is objective evidence that an impairment loss on loans and receivables or held-to-maturity
investments carried at amortised cost has been incurred, the amount of the loss is measured as the
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difference between the
asset’s
carrying amount and the present value of estimated future cashflows
(excluding future credit losses that have not been incurred) discounted at the financial
asset’s
original
effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is
recognised in the statement of financial performance. If a loan or held-to-maturity investment has a
variable interest rate, the discount rate for measuring any impairment loss is the current effective
interest rate determined under the contract. The calculation of the present value of the estimated future
cashflows of a collateralised financial asset reflects the cashflows that may result from foreclosure less
costs for obtaining and selling the collateral, whether or not foreclosure is probable. If, in a subsequent
period, the amount of the impairment loss decreases and the decrease can be related objectively to an
event occurring after the impairment was recognised, the previously recognised impairment loss is
reversed through the statement of financial performance.
(b)
Assets carried at fair value
In the case of equity investments classified as available for sale financial assets, a significant or
permanent (prolonged) decline in the fair value of the security below its cost is considered in determining
whether the securities are impaired. If any such evidence exists for available for sale financial assets, the
cumulative loss
measured as the difference between the acquisition cost and the current fair value, less
any impairment loss on that financial asset previously recognised in the statement of financial
performance
is removed from reserves and recognised in the statement of financial performance.
Impairment losses recognised in the statement of financial performance on equity instruments are not
reversed through the statement of financial performance. If, in a subsequent period, the fair value of a
debt instrument classified as available for sale financial asset increases and the increase can be
objectively related to an event occurring after the impairment loss was recognised, the impairment loss is
reversed through the statement of financial performance.
1.5.6.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in,
first-out (FIFO) method. The cost of finished goods and work in progress comprises raw materials, direct
labour, other directly attributable costs and related production overheads (based on normal operating
capacity). Net realisable value is the estimated selling price in the ordinary course of business, less the
costs of completion and selling expenses. When inventories are held for distribution at no charge or for a
nominal charge, they are measured at the lower of cost and current replacement cost. Current
replacement cost is the cost the EU would incur to acquire the asset on the reporting date.
1.5.7.
Pre-financing amounts
Pre-financing is a payment intended to provide the beneficiary with a cash advance, i.e. a float. It may be
split into a number of payments over a period defined in the particular contract, decision, agreement or
basic legal act. The float or advance is either used for the purpose for which it was provided during the
period defined in the agreement or it is repaid. If the beneficiary does not incur eligible expenditure, they
have the obligation to return the pre-financing advance to the EU. The amount of the pre-financing may
be reduced (wholly or partially) by the acceptance of eligible costs (which are recognised as expenses).
Pre-financing is, on subsequent balance sheet dates, measured at the amount initially recognised on the
balance sheet less eligible expenses (including estimated amounts where necessary) incurred during the
period.
Interest on pre-financing is recognised as it is earned in accordance with the provisions of the relevant
agreement. An estimate of the accrued interest revenue, based on the most reliable information, is made
at the year-end and included on the balance sheet.
Other advances to Member States which originate from reimbursement by the EU of amounts paid as
advances by the Member States to their beneficiaries (including "financial instruments under shared
management") are recognised as assets and presented under the pre-financing heading. Other advances
to Member States are subsequently measured at the amount initially recognised on the balance sheet
less a best estimate of the eligible expenses incurred by final beneficiaries, calculated on the basis of
reasonable and supportable assumptions.
The EU contributions to the trust funds of the European Development Fund or other unconsolidated
entities are also classified as pre-financing since their purpose is to give a float to the trust fund to allow
it to finance specific actions defined under the trust fund's objectives. The EU contributions to trust funds
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are measured at the initial amount of the EU contribution less eligible expenses, including estimated
amounts where necessary, incurred by the trust fund during the reporting period and allocated to the EU
contribution in accordance with the underlying agreement.
1.5.8.
Exchange receivables and non-exchange recoverables
As the EU accounting rules require a separate presentation of exchange and non-exchange transactions,
for the purpose of drawing up the accounts, receivables are defined as stemming from exchange
transactions and recoverables are defined as stemming from non-exchange transactions, i.e. when the
EU receives value from another entity without directly giving approximately equal value in exchange (for
example recoverables from Member States related to own resources).
Receivables from exchange transactions meet the definition of financial instruments and are thus
classified as loans and receivables and measured accordingly (see note
1.5.5).
The financial instruments
notes disclosures concerning receivables from exchange transactions include accrued revenue and
deferred charges from exchange transactions as they are not material.
Recoverables from non-exchange transactions are carried at original amount (adjusted for interest and
penalties) less write-down for impairment. A write-down for impairment of recoverables from
non-exchange transactions is established when there is objective evidence that the EU will not be able to
collect all amounts due according to the original terms of recoverables from non-exchange transactions.
The amount of the write-down is the difference between the
asset’s
carrying amount and the recoverable
amount. The amount of the write-down is recognised in the statement of financial performance. A general
write-down, based on past experience, is also made for outstanding recovery orders not already subject
to a specific write-down. See note
1.5.14
concerning the treatment of accrued revenue at year-end.
Amounts displayed and disclosed as recoverables from non-exchanges transactions are not financial
instruments as they do not arise from a contract that would give rise to a financial liability or equity
instrument. However, in the notes to the financial statements recoverables from non-exchange
transactions are disclosed together with receivables from exchange transactions where appropriate.
1.5.9.
Cash and cash equivalents
Cash and cash equivalents are financial instruments and include cash at hand, deposits held at call or at
short notice with banks and other short-term highly liquid investments with original maturities of three
months or less.
1.5.10. Pension and other employee benefits
Pension obligations
The EU operates defined benefit pension plans. Whilst staff contribute from their salaries one third of the
expected cost of these benefits, the liability is not funded. The liability recognised in the balance sheet in
respect of defined benefit pension plans is the present value of the defined benefit obligation at the
balance sheet date less the fair value of any plan assets. The defined benefit obligation is calculated by
actuaries using the projected unit credit method. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using interest rates of government bonds
that are denominated in the currency in which the benefits will be paid, and that have terms to maturity
approximating to the terms of the related pension liability.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised immediately in the statement of financial performance. Past-service costs are recognised
immediately in statement of financial performance, unless the changes to the pension plan are
conditional on the employees remaining in service for a specified period of time (the vesting period). In
this case, the past-service costs are amortised on a straight-line basis over the vesting period.
Post-employment sickness benefits
The EU provides health benefits to its employees through the reimbursement of medical expenses.
A separate fund has been created for its day-to-day administration. Both current employees, pensioners,
widowers and their relatives benefit from the system. The benefits granted to the "inactives" (pensioners,
orphans, etc.) are classified as "Post-Employment Employee Benefits". Given the nature of these benefits,
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an actuarial calculation is required. The liability in the balance sheet is determined on a similar basis as
that for the pension obligations (see above).
1.5.11. Provisions
Provisions are recognised when the EU has a present legal or constructive obligation towards third parties
as a result of past events, it is more likely than not that an outflow of resources will be required to settle
the obligation, and the amount can be reliably estimated. Provisions are not recognised for future
operating losses. The amount of the provision is the best estimate of the expenses expected to be
required to settle the present obligation at the reporting date. Where the provision involves a large
number of items, the obligation is estimated by weighting all possible outcomes by their associated
probabilities
(“expected
value” method).
1.5.12. Financial liabilities
Financial liabilities are classified as financial liabilities at fair value through surplus or deficit, financial
liabilities carried at amortised cost or as financial guarantee liabilities.
Borrowings are composed of borrowings from credit institutions and debts evidenced by certificates. They
are recognised initially at fair value, being their issue proceeds (fair value of consideration received) net
of transaction costs incurred, then subsequently carried at amortised cost using the effective interest
method; any difference between proceeds, net of transaction costs, and the redemption value is
recognised in the statement of financial performance over the period of the borrowings using the effective
interest method. In the case of loans granted on borrowed funds, the effective interest method may not
be applied to loans and borrowings, based on materiality considerations. The transaction costs incurred
by the EU and then recharged to the beneficiary of the loan are directly recognised in the statement of
financial performance.
Financial liabilities categorised at fair value through surplus or deficit include derivatives which fair value
is negative. They follow the same accounting treatment as financial assets at fair value through surplus
or deficit, see note
1.5.5.
Financial guarantee liabilities are initially recognised at fair value, being the premium received.
Subsequently, financial guarantee liabilities are measured at the higher of the best estimate of the
expenses expected to be required to settle the financial guarantee liability and the amount initially
recognised less, when appropriate, cumulative amortisation. The EU recognises a financial guarantee
liability when it receives consideration for granting of the guarantee, that is at market terms, or when the
fair value of the guarantee can be measured reliably. In case no active market for a directly equivalent
guarantee contract exists, the EU discloses the guarantee given as a contingent liability (see note
1.7.2)
or - when it is more likely than not that an outflow of resources will be required to settle the obligation
the EU recognises a provision (see note
1.5.11).
Financial liabilities are classified as non-current liabilities, except for maturities less than 12 months after
the balance sheet date.
EU trust funds that are considered as part of the Commission's operational activities are accounted for in
the Commission accounts and further consolidated in the EU annual accounts. Therefore, contributions
from other donors to the EU trust funds fulfil the criteria of revenues from non-exchange transactions
under conditions and they are presented as financial liabilities until the conditions attached to the
contributions transferred are met, i.e. eligible costs are incurred by the trust fund. The trust fund is
required to finance specific projects and return remaining funds at the time of winding-up. At the balance
sheet date the outstanding contribution liabilities are measured at contributions received less the
expenses incurred by the trust fund, including estimated amounts when necessary. For reporting
purposes the net expenses are allocated to the contributions of other donors in proportion to net
contributions paid as at 31 December. This allocation of contributions is only indicative. When the trust
fund is wound up the actual split of remaining resources will be decided by the trust fund board.
1.5.13. Payables
A significant amount of the payables of the EU are unpaid cost claims from beneficiaries of grants or
other EU funding (non-exchange transactions). They are recorded as payables for the requested amount
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when the cost claim is received. Upon verification and acceptance of the eligible costs, the payables are
valued at the accepted and eligible amount.
Payables arising from the purchase of goods and services are recognised at invoice reception for the
original amount and corresponding expenses are entered in the accounts when the supplies or services
are delivered and accepted by the EU.
1.5.14. Accrued and deferred revenue and charges
Transactions and events are recognised in the financial statements in the period to which they relate. At
year-end, if an invoice is not yet issued but the service has been rendered, the supplies have been
delivered by the EU or a contractual agreement exists (e.g. by reference to a treaty), an accrued revenue
will be recognised in the financial statements. In addition, at year-end, if an invoice is issued but the
services have not yet been rendered or the goods supplied have not yet been delivered, the revenue will
be deferred and recognised in the subsequent accounting period.
Expenses are also accounted for in the period to which they relate. At the end of the accounting period,
accrued expenses are recognised based on an estimated amount of the transfer obligation of the period.
The calculation of accrued expenses is done in accordance with detailed operational and practical
guidelines issued by the Commission which aim at ensuring that the financial statements provide a
faithful representation of the economic and other phenomena they purport to represent. By analogy, if
payment has been made in advance for services or goods that have not yet been received, the expense
will be deferred and recognised in the subsequent accounting period.
1.6.
1.6.1.
STATEMENT OF FINANCIAL PERFORMANCE
Revenue
REVENUE FROM NON-EXCHANGE TRANSACTIONS
The vast majority of the EU's revenue relates to non-exchange transactions:
GNI based resources and VAT resources
Revenue is recognised for the period for which the Commission sends out a call for funds to the Member
States claiming their contribution. They are measured at their
“called amount”.
As VAT and GNI resources
are based on estimates of the data for the budgetary year concerned, they may be revised as changes
occur until the final data are issued by the Member States. The effect of a change in estimate is included
when determining the net surplus or deficit for the period in which the change occurred.
Traditional own resources
Recoverables from non-exchange transactions and related revenues are recognised when the relevant
monthly "A" statements (including duties collected and amounts due that are guaranteed and not
contested) are received from the Member States. At the reporting date, revenue collected by the Member
States for the period but not yet paid to the Commission is estimated and recognised as accrued revenue.
The quarterly "B" statements (including duties neither collected nor guaranteed, as well as guaranteed
amounts that have been contested by the debtor) received from the Member States are recognised as
revenue less the collection costs to which they are entitled. In addition, a value reduction is recognised
for the amount of the estimated recovery gap.
Fines
Revenue from fines is recognised when the EU's decision imposing a fine has been taken and it is
officially notified to the addressee. If there are doubts about the undertaking's solvency, a value
reduction on the entitlement is recognised. After the decision to impose a fine, the debtors have two
months from the date of notification:
a) either to accept the decision, in which case they must pay the fine within the time limit laid down
and the amount is definitively collected by the EU;
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b) or not to accept the decision, in which case they lodge an appeal under EU law.
However, even if appealed, the fine must be paid within the time limit of three months laid down as the
appeal does not have suspensory effect (Article 278 of the EU Treaty) or, under certain circumstances
and subject to the agreement of the Commission's Accounting Officer, the debtor may present a bank
guarantee for the amount instead.
If the undertaking appeals against the decision, and has already provisionally paid the fine, the amount is
disclosed as a contingent liability. However, since an appeal against an EU decision by the addressee
does not have suspensory effect, the cash received is used to clear the recoverable. If a guarantee is
received instead of payment, the fine remains as a recoverable. If it appears probable that the General
Court may not rule in favour of the EU, a provision is recognised to cover this risk. If a guarantee had
been given instead, then the recoverable outstanding is written-down as required. The accumulated
interest received by the Commission on the bank accounts where received payments are deposited is
recognised as revenue, and any contingent liability is increased accordingly.
Since 2010, all provisionally cashed fines are managed by the Commission in a specifically created fund
(BUFI) and invested in financial instruments.
REVENUE FROM EXCHANGE TRANSACTIONS
Revenue from the sale of goods and services is recognised when the significant risk and rewards of
ownership of the goods are transferred to the purchaser. Revenue associated with a transaction involving
the provision of services is recognised by reference to the stage of completion of the transaction at the
reporting date.
Interest revenue and expense
Interest revenue and expense are recognised in the statement of financial performance using the
effective interest method. This is a method of calculating the amortised cost of a financial asset or a
financial liability and of allocating the interest revenue or interest expense over the relevant period. When
calculating the effective interest rate, the EU estimates cashflows considering all contractual terms of the
financial instrument (for example prepayment options) but does not consider future credit losses. The
calculation includes all fees and points paid or received between parties to the contract that are an
integral part of the effective interest rate, transaction costs and all other premiums or discounts.
Once a financial asset or a group of similar financial assets has been written down as a result of an
impairment loss, interest revenue is recognised using the rate of interest to discount the future cashflows
for the purpose of measuring the impairment loss.
Revenue from dividends
Revenue from dividends and similar distributions is recognised when the right to receive payment is
established.
1.6.2.
Expenses
Expenses from non-exchange transactions account for the majority of the EU's expenses. They relate to
transfers to beneficiaries and can be of three types: entitlements, transfers under agreement and
discretionary grants, contributions and donations.
Transfers are recognised as expenses in the period during which the events giving rise to the transfer
occurred, as long as the nature of the transfer is allowed by regulation (Financial Regulation, Staff
Regulations, or other regulation) or an agreement has been signed authorising the transfer; any eligibility
criteria have been met by the beneficiary; and a reasonable estimate of the amount can be made.
When a request for payment or cost claim is received and meets the recognition criteria, it is recognised
as an expense for the eligible amount. At year-end, incurred eligible expenses due to the beneficiaries
but not yet reported are estimated and recorded as accrued expenses.
Expenses from exchange transactions arising from the purchase of goods and services are recognised
when the supplies are delivered and accepted by the EU. They are valued at original invoice amount.
Furthermore, at the balance sheet date expenses related to the service delivered during the period for
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which an invoice has not yet been received or accepted are estimated and recognised in the statement of
financial performance.
1.7.
1.7.1.
CONTINGENT ASSETS AND LIABILITIES
Contingent assets
A contingent asset is a possible asset that arises from past events and of which the existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the EU. A contingent asset is disclosed when an inflow of economic benefits or
service potential is probable.
1.7.2.
Contingent liabilities
A contingent liability is a possible obligation that arises from past events and of which the existence will
be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the EU; or a present obligation that arises from past events but is not recognised
because: it is not probable that an outflow of resources embodying economic benefits or service potential
will be required to settle the obligation or in the rare circumstances where the amount of the obligation
cannot be measured with sufficient reliability.
1.8.
CASHFLOW STATEMENT
Cashflow information is used to provide a basis for assessing the ability of the EU to generate cash and
cash equivalents, and its needs to utilise those cashflows.
The cashflow statement is prepared using the indirect method. This means that the economic result for
the financial year is adjusted for the effects of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or payments, and items of revenue or expense
associated with investing cashflows.
Cashflows arising from transactions in a foreign currency are recorded in the
EU’s
reporting currency
(Euro), by applying to the foreign currency amount the exchange rate between the euro and the foreign
currency at the date of the cashflow.
The cashflow statement reports cashflows during the period classified by operating and investing
activities (the EU does not have financing activities).
Operating activities are the activities of the EU that are not investing activities. These are the majority of
the activities performed. Loans granted to beneficiaries (and the related borrowings, when applicable) are
not considered as investing (or financing) activities as they are part of the general objectives and thus
daily operations of the EU.
Investing activities are the acquisition and disposal of intangible assets and property, plant and
equipment and of other investments which are not included in cash equivalents. Investing activities do
not include loans granted to beneficiaries. The objective is to show the real investments made by the EU.
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2.
NOTES TO THE BALANCE SHEET
ASSETS
2.1.
INTANGIBLE ASSETS
EUR millions
Gross carrying amount at 31.12.2016
Additions
Disposals
Transfer between asset categories
Other changes
Gross carrying amount at 31.12.2017
Accumulated amortisation at 31.12.2016
Amortisation charge for the year
Amortisation written back
Disposals
Transfer between asset categories
Other changes
Accumulated amortisation at 31.12.2017
NET CARRYING AMOUNT AT 31.12.2017
NET CARRYING AMOUNT AT 31.12.2016
252
26
(1)
4
12
292
(116)
(27)
2
(2)
(0)
(143)
149
135
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2.2.
PROPERTY, PLANT AND EQUIPMENT
Land and
buildings
Space
assets
3 602
0
(1)
641
21
4 264
(300)
(480)
1
0
(1)
(780)
3 484
3 302
Plant and
equipment
257
7
(6)
2
0
260
(233)
(12)
(0)
6
(0)
(0)
(240)
21
24
Furniture and
vehicles
74
2
(6)
0
71
(58)
(4)
6
(0)
(57)
14
16
Computer
hardware
248
18
(19)
1
1
248
(201)
(24)
19
(1)
(0)
(207)
41
47
Other
155
4
(4)
1
156
(112)
(13)
4
(0)
(121)
35
43
Finance
leases
1 550
8
(5)
1 552
(705)
(53)
3
(756)
797
844
EUR millions
Assets under
TOTAL
construction
1 925
1 265
(0)
(646)
0
2 544
2 544
1 925
9 247
1 333
(56)
(4)
24
10 544
(2 415)
(630)
(0)
46
2
(3)
(3 000)
7 544
6 832
Gross carrying amount at 31.12.2016
Additions
Disposals
Transfer between asset categories
Other changes
Gross carrying amount at 31.12.2017
Accumulated depreciation at 31.12.2016
Depreciation charge for the year
Depreciation written back
Disposals
Transfer between asset categories
Other changes
Accumulated depreciation at 31.12.2017
NET CARRYING AMOUNT AT 31.12.2017
NET CARRYING AMOUNT AT 31.12.2016
1 436
28
(20)
3
0
1 448
(806)
(44)
10
0
(0)
(840)
608
631
28
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Annual accounts of the European Commission 2017
2.3.
INVESTMENTS ACCOUNTED FOR USING THE EQUITY
METHOD
The participation of the EU represented by the Commission in the European Investment Fund (EIF) is
treated as an associate using the equity method of accounting. At 31 December 2017, the EU holds
29.7 % of the ownership interest in EIF (2016: 28.1 %).
EUR millions
European Investment Fund
Participation at 31.12.2016
Contributions
Dividends received
Share of net result
Share in the net assets
Participation at 31.12.2017
EIF summarised financial information:
EUR millions
528
44
(7)
21
(6)
581
31.12.2017
Total EIF
Assets
Liabilities
Revenue
Expenses
Surplus/(deficit)
2 488
(532)
263
(153)
110
31.12.2016
Total EIF
2 301
(423)
240
(118)
122
Reconciliation of the above summarised financial information to the carrying amount of the interest held
in the EIF is as follows:
EUR millions
31.12.2017
Net assets of the associate
EC ownership interests in EIF
Carrying amount
1 956
29.7%
581
31.12.2016
1 878
28.1%
528
The Commission has paid-in 20 % of its subscribed shares in the EIF capital at 31 December 2017, the
amount uncalled being as follows:
EUR millions
Total EIF capital
Total share capital
Paid-in
Uncalled
4 500
(900)
3 600
EU subscription
1 337
(267)
1 070
29
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Annual accounts of the European Commission 2017
2.4.
FINANCIAL ASSETS
EUR millions
Note
Non-current financial assets
Available for sale financial assets
Financial assets at fair value through surplus or deficit
Loans
Current financial assets
Available for sale financial assets
Financial assets at fair value through surplus or deficit
Loans
Total
2.4.1
2.4.2
2.4.3
31.12.2017
10 410
16
48 107
58 533
1 563
6
6 770
8 339
66 872
31.12.2016
7 721
53 012
60 733
1 035
0
2 260
3 296
64 029
2.4.1
2.4.2
2.4.3
2.4.1.
Available for sale financial assets
EUR millions
31.12.2017
BUFI investments
European Bank for Reconstruction and Development
Guarantee Funds for budgetary guarantees:
Guarantee Fund for external actions
EFSI Guarantee Fund
Financial instruments supported by the EU budget:
Horizon 2020
Risk Sharing Finance Facility
Connecting Europe Facility
ETF start up
Risk Capital Operations
European Fund for South East Europe
Other
Total
Non-current
Current
2 158
188
2 346
2 199
3 414
5 613
1 730
665
482
483
113
119
422
4 014
11 973
10 410
1 563
31.12.2016
2 013
188
2 201
2 069
948
3 017
1 213
719
483
476
132
118
398
3 539
8 757
7 721
1 035
2.4.2.
Financial assets at fair value through surplus or deficit
EUR millions
Type of derivative
Foreign currency forward contract
EFSI guarantee on equity portfolio
Total
Non-current
Current
31.12.2017
Notional
Fair value
amount
634
258
892
258
634
6
16
23
16
6
31.12.2016
Notional
Fair value
amount
50
50
50
0
0
0
30
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Annual accounts of the European Commission 2017
Fair value hierarchy of financial assets measured at fair value
EUR millions
31.12.2017
Level 1: Quoted prices in active markets
Level 2: Observable inputs other than quoted prices
Level 3: Valuation techniques with inputs not based on
observable market data
Total
10 325
510
1 161
11 996
31.12.2016
7 224
231
1 302
8 757
Reconciliation of financial assets measured using valuation techniques with inputs not based on
observable market data (level 3)
EUR millions
Opening balance at 31.12.2016
Purchases and sales
Gains or losses for the period in financial income or finance costs
Gains or losses in net assets
Transfers into level 3
Transfers out of level 3
Other
Closing balance at 31.12.2017
1 302
39
(21)
30
(188)
1 161
2.4.3.
Loans
EUR millions
Note
Loans for financial assistance
Other loans
Total
Non-current
Current
2.4.3.1.
Loans for financial assistance
2.4.3.1
2.4.3.2
31.12.2017
54 744
133
54 877
48 107
6 770
31.12.2016
54 944
328
55 272
53 012
2 260
EUR millions
EFSM
Total at 31.12.2016
New loans
Repayments
Exchange differences
Changes in carrying amount
Impairment
Total at 31.12.2017
Non-current
Current
47 456
0
47 456
42 300
5 156
BOP
4 272
(1 150)
(8)
3 114
1 700
1 414
MFA
2 964
1 013
(58)
5
3 924
3 846
78
Euratom
252
50
(51)
(1)
0
250
203
47
Total
54 944
1 063
(1 260)
(1)
(3)
54 744
48 049
6 695
The change in carrying amount corresponds to the change in accrued interests.
Nominal value of loans for financial assistance at 31 December 2017 total EUR 54 000 million (2016:
EUR 54 198 million).
31
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Annual accounts of the European Commission 2017
Loans effective interest rates (expressed as a range of interest rates)
31.12.2017
Macro Financial Assistance (MFA)
Euratom
Balance of Payment (BOP)
European Financial Stability Mechanism (EFSM)
0
0.08
2.88
0.62
%
%
%
%
-
-
-
-
4.54
5.76
3.38
3.75
%
%
%
%
31.12.2016
0
0
2.37
0.62
%
%
%
%
-
-
-
-
4.54
5.76
3.37
3.75
%
%
%
%
2.4.3.2.
Other loans
EUR millions
31.12.2017
Loans with special conditions
Term deposits over 3 months
Total
Non-current
Current
78
55
133
59
75
31.12.2016
93
235
328
74
254
Nominal value of other loans at 31 December 2017 total EUR 557 million (2016: EUR 668 million).
Impairment on other loans
EUR millions
31.12.2016
Loans with special
conditions
Subrogated loans
Total
7
332
339
Additions
0
100
101
Reversals
(0)
(0)
Write-off
Other
31.12.2017
8
432
440
2.5.
PRE-FINANCING
EUR millions
Note
Non-current pre-financing
Pre-financing
Other advances to Member States
Contribution to Trust Funds
Current pre-financing
Pre-financing
Other advances to Member States
Total
2.5.1
2.5.2
31.12.2017
21 663
3 018
64
24 745
22 908
1 645
24 552
49 297
31.12.2016
20 095
1 651
31
21 777
21 781
2 183
23 964
45 741
2.5.1
2.5.2
32
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Annual accounts of the European Commission 2017
2.5.1.
Pre-financing
EUR millions
Gross
amount
Shared Management
EAFRD & other
rural
development
instruments
ERDF & CF
ESF
Other
Direct Management
Implemented by:
Commission
EU executive
agencies
Trust funds
Indirect Management
Implemented by:
Other EU
agencies & bodies
Third countries
International
organisations
Other entities
Total
Non-current
Current
3 767
1 586
9 001
7 752
84 969
21 663
63 307
12 454
13 845
440
3 735
Cleared via
cut-off
Net amount at
31.12.2017
3 735
Gross
amount
3 955
Cleared via
cut-off
Net amount at
31.12.2016
3 955
20 561
6 792
5 037
(5 678)
(1 182)
(2 267)
14 883
5 610
2 770
19 858
6 477
4 219
(4 727)
(617)
(2 393)
15 131
5 860
1 826
(8 587)
(8 751)
(212)
3 867
5 094
228
12 710
13 138
142
(9 077)
(8 349)
(82)
3 633
4 789
60
(2 951)
(956)
(5 879)
(3 936)
(40 399)
(40 399)
816
630
3 121
3 816
44 570
21 663
22 908
2 790
1 861
7 230
6 496
78 876
20 095
58 781
(2 110)
(1 135)
(4 432)
(4 077)
(37 000)
(37 000)
680
726
2 797
2 418
41 876
20 095
21 781
2.5.2.
Other advances to Member States
EUR millions
31.12.2017
Advances to Member States for financial instruments under
shared management
Aid Schemes
Total
Non-current
Current
2 768
1 895
4 663
3 018
1 645
31.12.2016
2 534
1 300
3 834
1 651
2 183
33
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Annual accounts of the European Commission 2017
2.6.
EXCHANGE RECEIVABLES AND NON-EXCHANGE
RECOVERABLES
EUR millions
Note
Non-current
Recoverables from non-exchange transactions
Receivables from exchange transactions
Current
Recoverables from non-exchange transactions
Receivables from exchange transactions
Total
2.6.1
2.6.2
31.12.2017
616
3
619
10 924
497
11 421
12 040
31.12.2016
727
2
729
10 266
341
10 607
11 336
2.6.1
2.6.2
2.6.1.
Recoverables from non-exchange transactions
EUR millions
Note
Non-current
Member States
Accrued income and deferred charges
Other recoverables
Current
Member States
Competition fines
Accrued income and deferred charges
Other recoverables
Total
2.6.1.1
2.6.1.3
31.12.2017
594
22
616
31.12.2016
700
27
727
8 122
1 808
153
182
10 266
10 993
2.6.1.1
2.6.1.2
2.6.1.3
6 123
4 225
384
192
10 924
11 540
34
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Annual accounts of the European Commission 2017
2.6.1.1.
Recoverables from Member States
EUR millions
31.12.2017
Recoverables related to own resources:
Established in the A account
Established in the separate account
Own resources to be received
Impairment
Other
Own resource recoverables
Recoverables in the area of agriculture and rural
development:
European Agricultural Guarantee Fund (EAGF)
European Agricultural Fund for Rural Development (EAFRD)
Temporary Rural Development Instrument (TRDI)
Special Accession Programme for Agriculture and Rural
Development (SAPARD)
Impairment
EAGF and rural development recoverables
Pre-financing recovery expected
VAT paid and recoverable
Other recoverables from Member States
Total
Non-current
Current
3 113
1 617
46
(997)
56
3 836
31.12.2016
3 261
1 437
1 764
(753)
36
5 745
2 280
955
16
136
(804)
2 583
182
22
94
6 717
594
6 123
2 606
924
30
167
(999)
2 729
293
17
39
8 822
700
8 122
2.6.1.2.
Recoverables from competition fines
EUR millions
31.12.2017
Recoverable from fines gross amount
Provisional payments
Impairment
Total
Non-current
Current
7 679
(3 282)
(172)
4 225
4 225
31.12.2016
6 510
(4 524)
(178)
1 808
1 808
2.6.1.3.
Accrued income and deferred charges
EUR millions
31.12.2017
Financial corrections
Other accrued income
Deferred charges relating to non-exchange transactions
Total
Non-current
Current
1
322
61
384
384
31.12.2016
9
70
74
153
153
35
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Annual accounts of the European Commission 2017
2.6.2.
Receivables from exchange transactions
EUR millions
31.12.2017
Non-current
Other receivables
Current
Customers
Impairment on receivables from customers
Deferred charges relating to exchange transactions
Others
Total
3
3
184
(136)
172
277
497
501
31.12.2016
2
2
189
(124)
162
114
341
343
2.7.
INVENTORIES
EUR millions
31.12.2017
Scientific materials
Other
Total
45
18
62
31.12.2016
54
21
75
2.8.
CASH AND CASH EQUIVALENTS
EUR millions
31.12.2017
Accounts with Treasuries and Central Banks
Current accounts
Imprest accounts
Transfers (cash in transit)
Bank accounts for budget implementation
Cash belonging to financial instruments
Cash relating to fines
Cash relating to trust funds
Total
20 078
152
5
0
20 236
1 608
1 234
34
23 113
31.12.2016
24 566
127
5
24 698
1 390
1 325
167
27 579
36
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Annual accounts of the European Commission 2017
LIABILITIES
2.9.
PENSION AND OTHER EMPLOYEE BENEFITS
EUR millions
Net employee benefit scheme liability
Pension
Scheme
of
European
Officials
63 951
N/A
63 951
Other
retirement
benefit
schemes
1 089
N/A
1 089
Joint
Sickness
Insurance
Scheme
7 756
(301)
7 455
31.12.2017
Total
31.12.2016
Total
Defined Benefit Obligation
Plan assets
Net liability
72 796
(301)
72 495
66 844
(293)
66 550
Actuarial assumptions - employee benefits
Pension Scheme
of European
Officials
2017
Nominal discount rate
Expected inflation rate
Real discount rate
Expected rate of salary increases
Medical cost trend rates
Retirement age
2016
Nominal discount rate
Expected inflation rate
Real discount rate
Expected rate of salary increases
Medical cost trend rates
Retirement age
1.9 %
1.5 %
0.4 %
1.8 %
N/A
63/64/66
1.7 %
1.4 %
0.3 %
1.2 %
N/A
63/64/66
Joint Sickness
Insurance
Scheme
2.0 %
1.6 %
0.4 %
1.7 %
3.0 %
63/64/66
1.9 %
1.5 %
0.4 %
1.1 %
3.0 %
63/64/66
Movement in present value of employee benefits defined benefit obligation
EUR millions
Present value as at
31.12.2016
Current service cost
Interest cost
Net actuarial (gains) and losses
Contributions from members
Benefits paid
Liability increase/(decrease) due
to taxes on pensions
Present value as at
31.12.2017
Pension
Scheme of
European
Officials
58 746
2 637
1 148
3 616
(1 417)
(778)
63 951
Other
retirement
benefit
Schemes
1 062
84
19
(48)
(28)
1
1 089
Joint Sickness
Insurance
Scheme
7 036
266
134
394
21
(94)
7 756
Total
66 844
2 986
1 300
3 962
21
(1 539)
(777)
72 796
37
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Annual accounts of the European Commission 2017
Movement in present value of plan assets of the Joint Sickness Insurance Scheme
EUR millions
Present value as at 31.12.2016
Net movement in plan assets
Present value as at 31.12.2017
5 year trend
293
8
301
EUR millions
2013
Present value of the defined
benefit obligation
Fair value of plan assets
Employee benefits liability
46 367
(264)
46 103
2014
58 317
(272)
58 045
2015
63 488
(280)
63 208
2016
66 844
(293)
66 550
2017
72 796
(301)
72 495
Amounts recognised in the Statement of Financial Performance
EUR millions
Pension
Scheme of
European
Officials
2017
Current service cost
Interest cost
Past service cost
Change in plan assets
Staff and pension costs
Actuarial gains and losses
Total
Joint Sickness Insurance Scheme sensitivity
2 360
1 027
3 387
3 236
6 623
Other
retirement
benefit
Schemes
85
19
104
(49)
55
Joint
Sickness
Insurance
Scheme
266
134
(81)
318
394
712
Total
2 710
1 180
(81)
3 809
3 580
7 390
EUR millions
One percentage
point increase
The aggregate of the current service cost and interest cost
components of net periodic post-employment medical costs
The accumulated post-employment benefit obligation for
medical costs
166
2 538
One percentage
point decrease
(141)
(1 867)
2.10. PROVISIONS
EUR millions
Amount at
31.12.2016
Legal cases:
Agriculture
Cohesion
Other
Nuclear site
dismantling
Financial
Fines
Other
Total
Non-current
Current
Additional
provisions
Unused
amounts
reversed
(26)
-
(3)
-
(46)
(4)
(1)
(80)
(30)
(50)
Amounts
used
Transfer
between
categories
-
-
-
-
-
-
-
(188)
188
Change in
estimation
Amount at
31.12.2017
149
217
14
1 113
880
23
16
2 412
1 786
626
49
2
18
-
378
7
74
529
325
204
(122)
(198)
(1)
(32)
(94)
-
(2)
(449)
(128)
(321)
-
-
0
853
(3)
-
-
849
852
(3)
49
20
29
1 934
1 115
27
87
3 262
2 617
645
38
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Annual accounts of the European Commission 2017
2.11. FINANCIAL LIABILITIES
EUR millions
Note
Non-current financial liabilities
Financial liabilities at amortised cost
Financial liabilities at fair value through surplus or
deficit
Current financial liabilities
Financial liabilities at amortised cost
Financial liabilities at fair value through surplus or
deficit
Total
2.11.1
2.11.2
31.12.2017
49 412
2
49 414
31.12.2016
54 375
54 375
2 164
1
2 165
56 540
2.11.1
2.11.2
6 813
6 813
56 227
2.11.1. Financial liabilities at amortised cost
EUR millions
Note
Borrowings for financial assistance
Other financial liabilities
Total
Non-current
Current
2.11.1.1
2.11.1.2
31.12.2017
54 744
1 482
56 225
49 412
6 813
31.12.2016
54 944
1 596
56 540
54 375
2 164
2.11.1.1. Borrowings for financial assistance
EUR millions
EFSM
Total at 31.12.2016
New borrowings
Repayments
Exchange differences
Changes in carrying amounts
Total at 31.12.2017
Non-current
Current
47 456
0
47 456
42 300
5 156
BOP
4 272
(1 150)
(8)
3 114
1 700
1 414
MFA
2 964
1 013
(58)
5
3 924
3 846
78
Euratom
252
50
(52)
(1)
250
203
47
Total
54 944
1 063
(1 260)
(1)
(3)
54 744
48 049
6 695
Borrowings effective interest rates (expressed as a range of interest rates)
31.12.2017
Macro Financial Assistance (MFA)
Euratom
Balance of Payment (BOP)
European Financial Stability Mechanism (EFSM)
0
0
2.88
0.62
%
%
%
%
-
-
-
-
4.54
5.68
3.38
3.75
%
%
%
%
31.12.2016
0
0
2.37
0.62
%
%
%
%
-
-
-
-
4.54
5.68
3.37
3.75
%
%
%
%
39
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Annual accounts of the European Commission 2017
2.11.1.2. Other financial liabilities
EUR millions
31.12.2017
Non-current
Finance lease liabilities
Buildings paid for in instalments
Other
Current
Finance lease liabilities
Buildings paid for in instalments
Fines to be reimbursed
Other
Total
Finance lease liabilities
918
258
188
1 363
58
22
13
25
118
1 482
31.12.2016
969
279
190
1 438
54
20
25
59
158
1 596
EUR millions
Future amounts to be paid
< 1 year
Land and buildings
Other fixed assets
Total at 31.12.2017
Interest element
Total future minimum lease
payments at 31.12.2017
Total future minimum lease payments
at 31.12.2016
54
4
58
54
113
111
1 - 5 years
258
8
266
181
447
442
> 5 years
652
652
169
821
931
Total
Liability
964
12
976
405
1 381
1 484
2.11.2. Financial liabilities at fair value through surplus and deficit
EUR millions
Type of derivative
Foreign currency forward contract
FX option (put spread)
Total
Non-current
Current
31.12.2017
Notional
Fair value
amount
9
9
9
2
2
2
31.12.2016
Notional
Fair value
amount
101
101
101
1
1
1
At 31 December 2017 all financial liabilities at fair value through surplus or deficit were categorised into
level 2 of fair value hierarchy (valuation based on observable inputs other than quoted prices).
40
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Annual accounts of the European Commission 2017
2.12. PAYABLES
EUR millions
Gross
Amount
Cost claims and
invoices received
from:
Member States
EAFRD & other
rural development
instruments
ERDF & CF
ESF
Other
Private and public
entities
Total costs
claims & invoices
received
EAGF
Own Resources
Payables
Sundry Payables
Total
481
Adjust-
ments*
Net Amount at
31.12.2017
Gross
Amount
Adjust-
ments*
Net Amount at
31.12.2016
481
500
(34)
467
12 602
4 183
748
1 563
19 577
(883)
(264)
(280)
(144)
(1 571)
11 719
3 919
467
1 419
18 006
10 663
4 145
795
1 677
17 781
(793)
(95)
(47)
(169)
(1 138)
9 871
4 050
748
1 507
16 643
11 534
8 836
1 000
40 947
N/A
N/A
N/A
(1 571)
11 534
8 836
1 000
39 376
12 193
10 441
962
41 378
N/A
N/A
N/A
(1 138)
12 193
10 441
962
40 240
* Estimated non-eligible amounts and pending other advances to Member States
.
2.13. ACCRUED CHARGES AND DEFERRED INCOME
EUR millions
31.12.2017
Accrued charges
Deferred income
Other
Total
63 070
219
24
63 314
31.12.2016
66 310
690
26
67 027
The split of accrued charges is as follows:
EUR millions
31.12.2017
EAGF
EAFRD and other rural development instruments
ERDF and CF
ESF
Other
Total
33 303
17 464
4 249
2 870
5 185
63 070
31.12.2016
33 033
17 024
7 157
3 473
5 623
66 310
41
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Annual accounts of the European Commission 2017
NET ASSETS
2.14. RESERVES
EUR millions
Note
Fair value reserve
Guarantee Fund reserve
Other reserves
Total
2.14.1
31.12.2017
275
2 663
125
3 062
31.12.2016
311
2 643
77
3 031
2.14.1.
Fair value reserve
Movements during the period of fair value reserve related to the available for sale financial assets:
EUR millions
2017
Included in fair value reserve
Included in statement of financial performance
Total
(8)
18
10
2016
25
0
25
2.15. AMOUNTS TO BE CALLED FROM MEMBER STATES
EUR millions
Amounts to be called from Member States at 31.12.2016
Return of 2016 budget surplus to Member States
Movement in Guarantee Fund reserve
Other reserve movements
Economic result of the year
Total amounts to be called from Member States at 31.12.2017
79 546
6 405
20
7
(7 901)
78 077
42
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Annual accounts of the European Commission 2017
3.
NOTES TO THE STATEMENT OF FINANCIAL
PERFORMANCE
REVENUE
REVENUE FROM NON-EXCHANGE TRANSACTIONS:
OWN RESOURCES
3.1.
TRADITIONAL OWN RESOURCES
EUR millions
2017
Customs duties
Sugar levies
Total
20 475
45
20 520
2016
20 301
138
20 439
REVENUE FROM NON-EXCHANGE TRANSACTIONS:
TRANSFERS
3.2.
RECOVERY OF EXPENSES
EUR millions
2017
Shared management
Direct management
Indirect management
Total
1 775
81
23
1 879
2016
1 876
56
15
1 946
3.3.
OTHER REVENUE FROM NON-EXCHANGE
TRANSACTIONS
EUR millions
2017
Budgetary adjustments
Contribution of third countries and accession countries
Contribution from Member States for external aid
Staff taxes and contributions
Transfer of assets
Adjustment of provisions
Agricultural levies
Funding of institutions
Other
Total
5 806
1 256
988
923
208
28
4
(3 371)
672
6 515
2016
1 956
946
732
901
147
14
5
(3 324)
318
1 695
43
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Annual accounts of the European Commission 2017
REVENUE FROM EXCHANGE TRANSACTIONS
3.4.
FINANCIAL REVENUE
EUR millions
2017
Interest on:
Loans
Late payments
Other
Premium on financial guarantee liability (EFSI)
Financial revenue from financial assets or liabilities at fair
value through surplus or deficit
Realised gains on sale of available for sale financial assets
Dividend
Other financial revenue
Total
1 371
217
36
61
57
26
23
28
1 820
2016
1 436
108
31
16
(0)
29
13
112
1 745
3.5.
OTHER REVENUE FROM EXCHANGE TRANSACTIONS
EUR millions
2017
Foreign exchange gains
Fee and premium revenue related to financial instruments
Sales of goods
Share of net result of EIF
Property, plant and equipment related revenue
Other
Total
266
51
26
21
6
321
692
2016
320
48
14
2
3
262
649
EXPENSES
3.6.
SHARED MANAGEMENT
EUR millions
Implemented by Member States
European Agricultural Guarantee Fund
European Agricultural Fund for Rural Development and
other rural development instruments
European Regional Development Fund and Cohesion Fund
European Social Fund
Other
Total
2017
44 289
11 359
17 650
7 353
1 253
81 905
2016
44 152
12 604
35 045
9 366
1 606
102 772
3.7.
DIRECT MANAGEMENT
EUR millions
2017
Implemented by the Commission
Implemented by EU Executive Agencies
Implemented by Trust funds
Total
44
8 855
6 700
208
15 763
2016
9 287
6 260
97
15 644
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Annual accounts of the European Commission 2017
3.8.
INDIRECT MANAGEMENT
EUR millions
2017
Implemented
Implemented
Implemented
Implemented
Total
by
by
by
by
other EU agencies and bodies
third countries
international organisations
other entities
3 429
1 101
3 014
1 478
9 022
2016
3 064
876
2 382
2 035
8 358
3.9.
STAFF AND PENSION COSTS
EUR millions
2017
Staff costs
Pension costs
Total
3 186
3 809
6 995
2016
3 218
3 693
6 911
3.10. FINANCE COSTS
EUR millions
2017
Interest expenses:
Borrowings
Other
Finance leases
Impairment losses on available for sale financial assets
Impairment loss on loans and receivables
Realised loss on sale of available for sale financial assets
Loss on financial assets or liabilities at fair value through
surplus or deficit
Other finance costs
Total
1 363
21
56
39
324
2
12
33
1 849
2016
1 426
56
39
40
184
0
1
111
1 857
3.11. OTHER EXPENSES
EUR millions
2017
Adjustment of provisions
Property, plant and equipment related expenses
Administrative and IT expenses
Funding and contributions to other EU bodies
Foreign exchange losses
Operating lease expenses
Reduction of fines by the Court of Justice
Other
Total
Expenses relating to research and development are as follows:
1 371
870
790
458
429
160
67
495
4 642
2016
680
570
713
425
491
156
18
408
3 462
EUR millions
2017
Research costs
Non-capitalised development costs
Total
45
366
58
424
2016
338
43
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Annual accounts of the European Commission 2017
3.12. SEGMENT REPORTING BY MULTI ANNUAL FINANCIAL FRAMEWORK HEADING (MFF)
EUR millions
Smart and
inclusive
growth
GNI resources
Traditional own resources
VAT
Fines
Recovery of expenses
Other
Non-exchange revenue
Financial revenue
Other
Exchange revenue
Total revenue
Expenses implemented by Member States:
EAGF
EAFRD & other rural develop. instruments
ERDF & CF
ESF
Other
Implemented by the Commission, executive
agencies and trust funds
Implemented by other EU agencies and bodies
Implemented by third countries and
international organisations
Implemented by other entities
Staff and pension costs
Changes in employee benefits actuarial
assumptions
Finance costs
Other expenses
Total expenses
Economic result of the year
357
1 172
1 529
147
196
343
1 873
(17 650)
(7 353)
(439)
(9 809)
(2 530)
(434)
(819)
(1 638)
(88)
(2 453)
(43 213)
(41 341)
Sustainable
growth
1 488
244
1 732
(4)
(12)
(15)
1 716
(44 289)
(11 359)
74
(525)
(121)
0
15
(360)
(16)
(88)
(56 669)
(54 953)
Security
and
citizenship
5
43
48
0
(6)
(6)
42
(897)
(1 080)
(754)
(177)
1
(426)
(0)
(196)
(3 528)
(3 486)
Global
Europe
28
414
443
17
10
27
470
9
(4 337)
(24)
(3 504)
(675)
(615)
(18)
(113)
(9 277)
(8 807)
Administration
Not
assigned
to MFF
headings*
78 620
20 520
16 947
4 664
3 759
124 510
1 659
261
1 920
126 430
0
0
(1 655)
(427)
(2 082)
124 348
Total
884
884
0
242
242
1 126
(12)
(0)
(3 956)
(3 581)
(72)
(1 365)
(8 986)
(7 860)
78 620
20 520
16 947
4 664
1 879
6 515
129 145
1 820
692
2 511
131 657
(44
(11
(17
(7
(1
(15
289)
359)
650)
353)
253)
763)
(3 429)
(4 115)
(1 478)
(6 995)
(3 581)
(1 849)
(4 642)
(123 756)
7 901
* "Not assigned to MFF headings" includes off-budget operations and unallocated programmes with immaterial amounts.
46
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4.
CONTINGENT LIABILITIES AND ASSETS
4.1.
4.1.1.
CONTINGENT LIABILITIES
Budgetary guarantees
EUR millions
31.12.2017
Ceiling
EIB external lending
mandate guarantees
EFSI guarantee
Total
37 479
16 000
53 479
Signed
28 950
13 473
42 423
Disbursed
19 972
10 128
30 100
Ceiling
40 645
16 000
56 645
31.12.2016
Signed
30 161
11 245
41 406
Disbursed
21 145
4 392
25 537
4.1.2.
Guarantees relating to financial assistance (borrowing and lending activities)
EUR millions
31.12.2017
Drawn
EFSM
BOP
MFA
Euratom
Total
47 456
3 114
3 924
250
54 744
Undrawn
460
250
710
Total
47 456
3 114
4 384
500
55 454
Drawn
47 456
4 272
2 964
252
54 944
31.12.2016
Undrawn
1 313
300
1 613
Total
47 456
4 272
4 277
552
56 557
4.1.3.
Guarantees given for EU financial instruments
EUR millions
31.12.2017
Horizon 2020
Risk Sharing Finance Facility
Connecting Europe Facility
Other
Total
1 297
654
490
32
2 473
31.12.2016
921
711
465
3
2 101
4.1.4.
Legal cases
EUR millions
31.12.2017
Fines
Agriculture
Cohesion
Other
Total
3 242
1 737
3
438
5 420
31.12.2016
1 834
1 711
3
506
4 054
4.2.
CONTINGENT ASSETS
EUR millions
31.12.2017
Guarantees received:
Performance guarantees
Other guarantees
Other contingent assets
Total
89
5
32
125
31.12.2016
121
6
33
160
47
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Annual accounts of the European Commission 2017
5.
BUDGETARY AND LEGAL COMMITMENTS
EUR millions
Note
Outstanding budgetary commitments not yet
expensed
Shared management legal commitments under the
current MFF pending implementation
Significant legal commitments in other areas
Total
5.1
5.2
5.3
31.12.2017
220 479
211 688
16 267
448 434
31.12.2016
188 828
276 351
18 338
483 517
5.1.
OUTSTANDING BUDGETARY COMMITMENTS NOT YET
EXPENSED
EUR millions
31.12.2017
Outstanding budgetary commitments not yet expensed
220 479
31.12.2016
188 828
5.2.
SHARED MANAGEMENT LEGAL COMMITMENTS UNDER
THE CURRENT MFF PENDING IMPLEMENTATION
Financial
framework
2014-2020
(A)
262 058
91 991
3 814
357 862
99 343
5 749
105 093
5 391
2 812
8 202
Budget
available
under MFF
(=A-C)
121 756
40 178
1 699
163 633
42 942
2 539
45 482
2 597
1 311
3 908
EUR millions
Legal
commitments
less budget
commitments
(=B-C+D)
121 756
40 178
1 699
163 633
42 942
2 539
45 482
1 439
1 134
2 573
Funds
European Regional
Development Fund and
Cohesion Fund
European Social Fund
Fund for European Aid to the
most Deprived
HEADING 1B: COHESION
POLICY FUNDS
European Agricultural Fund for
Rural Development
European Maritime and
Fisheries Fund
HEADING 2: NATURAL
RESOURCES
Asylum and Migration Fund
Internal Security Fund
HEADING 3: SECURITY &
CITIZENSHIP
Total
Legal
commitments
concluded (B)
Budget
commitments
(C )
Decommit-
ments (D)
262 058
91 991
3 814
357 862
99 343
5 749
105 093
4 233
2 635
6 868
140 302
51 813
2 114
194 229
56 401
3 210
59 611
2 794
1 500
4 294
471 157
469 822
258 134
213 023
211 688
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5.3.
SIGNIFICANT LEGAL COMMITMENTS IN OTHER AREAS
EUR millions
Note
Connecting Europe Facility
Copernicus
Galileo
Fisheries agreements
Operating lease commitments
Other contractual commitments
Total
31.12.2017
12 676
1 841
253
133
868
497
16 267
31.12.2016
13 799
2 393
523
247
891
485
18 338
5.3.1
5.3.1.
Operating lease commitments
EUR millions
Future amounts to be paid
< 1 year
133
2
134
1- 5 years
381
3
384
> 5 years
350
0
350
Total
864
4
868
Buildings
IT materials and other equipment
Total
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6.
FINANCIAL INSTRUMENTS DISCLOSURES
6.1.
CURRENCY RISKS
EUR millions
Exposure of the EC to currency risk at year end
net position
31.12.2017
SEK
EUR
56
86
693
834
(1)
(1)
833
11 147
655
120
11 338
17 509
40 768
(39 374)
(39 374)
1 395
USD
Financial assets
Available for sale financial assets
Financial assets at fair value
through surplus or deficit
Loans*
Receivables and recoverables
Cash and cash equivalents
Financial liabilities
Financial liabilities at fair value
through surplus or deficit
Payables
Total
680
(632)
6
42
97
(0)
(0)
96
GBP
57
550
3 178
3 785
(0)
(0)
3 785
DKK
17
62
27
105
105
Other
16
7
6
1 664
1 693
(2)
(1)
(3)
1 690
Total
11 973
23
133
12 040
23 113
47 282
(2)
(39 376)
(39 378)
7 904
EUR millions
USD
Financial assets
Available for sale financial assets
Financial assets at fair value
through surplus or deficit
Loans*
Receivables and recoverables
Cash and cash equivalents
Financial liabilities
Financial liabilities at fair value
through surplus or deficit
Payables
228
(49)
4
31
213
(100)
(0)
(101)
113
GBP
58
591
2 392
3 041
3 041
DKK
14
49
426
490
490
31.12.2016
SEK
EUR
42
80
1 220
1 341
1 341
8 394
50
315
10 611
21 423
40 793
100
(40 240)
(40 141)
652
Other
21
10
4
2 087
2 122
(0)
(0)
2 122
Total
8 757
0
328
11 336
27 579
48 001
(1)
(40 240)
(40 241)
7 760
Total
* Excluding back-to-back loans for financial assistance.
If the EUR had strengthened against the currency concerned by 10 % then this would have had the
following impact:
EUR millions
2017
2016
USD
(3)
(3)
Economic result
GBP
(339)
(271)
DKK
(8)
(43)
SEK
(71)
(118)
EUR millions
2017
2016
USD
(5)
(7)
Net assets
GBP
(5)
(5)
DKK
(2)
(1)
SEK
(5)
(4)
50
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If the EUR had weakened against the currency concerned by 10 % then this would have had the following
impact:
EUR millions
2017
2016
USD
4
4
Economic result
GBP
414
331
DKK
10
53
SEK
86
144
EUR millions
2017
2016
USD
7
9
Net assets
GBP
6
6
DKK
2
2
SEK
6
5
6.2.
INTEREST RATE RISK
The following table illustrates the interest rate sensitivity of available for sale financial assets assuming
possible change in interest rates of +/- 100 basis points (1 %).
EUR millions
Increase (+) /
decrease (-) in
basis points
2017: Available for sale financial assets
2016: Available for sale financial assets
+100
-100
+100
-100
Effect on
economic result
and net assets
(305)
324
(238)
254
6.3.
CREDIT RISK
EUR millions
Analysis of the age of financial assets that are not impaired
Neither
past due
nor
impaired
54 877
8 587
23
63 486
55 271
10 031
0
65 302
Total
Past due but not impaired
< 1 year
0
2 887
2 887
1
124
125
1-5 years
359
359
909
909
> 5 years
208
208
273
273
Loans
Receivables and recoverables
Financial assets at fair value
through surplus or deficit
Total at 31.12.2017
Loans
Receivables and recoverables
Financial assets at fair value
through surplus or deficit
Total at 31.12.2016
54 877
12 040
23
66 940
55 272
11 336
0
66 608
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Annual accounts of the European Commission 2017
Credit quality of financial assets that are neither past due nor impaired
EUR millions
Available
for sale*
Counterparties with external
credit rating
Prime and high grade
Upper medium grade
Lower medium grade
Non-investment grade
Counterparties without
external credit rating
Group 1 (debtors without
defaults in the past)
Group 2 (debtors with
defaults in the past)
Total
Financial
assets at
FVSD**
31.12.2017
Loans and
receivables***
Cash
Total
6 989
1 569
1 831
10 390
10 390
16
16
2 981
23 868
28 037
4 084
58 970
18 436
3 851
442
381
23 109
28 422
29 287
30 311
4 465
92 485
6
6
23
4 492
1
4 493
63 463
3
3
23 113
4 502
1
4 503
96 988
EUR millions
Available
for sale*
Counterparties with external
credit rating
Prime and high grade
Upper medium grade
Lower medium grade
Non-investment grade
Counterparties without
external credit rating
Group 1 (debtors without
defaults in the past)
Group 2 (debtors with
defaults in the past)
Total
Financial
assets at
FVSD**
31.12.2016
Loans and
receivables***
Cash
Total
5 264
1 184
786
7 234
7 234
3 162
23 820
4 526
27 719
59 226
21 180
5 178
486
733
27 576
29 606
30 181
5 798
28 452
94 037
0
0
0
5 996
79
6 076
65 302
3
3
27 579
6 000
79
6 079
100 116
*
Available for sale financial assets (excluding equity instruments and Unitary Fund).
**
Financial assets at fair value through surplus or deficit.
***
Loans and Receivables include recoverables.
6.4.
LIQUIDITY RISK
EUR millions
Maturity analysis of financial liabilities by remaining contractual maturity
< 1 year
(6 695)
(39 376)
(118)
(46 189)
(2 006)
(40 240)
(158)
(42 405)
1-5 years
(14 769)
(556)
(15 325)
(17 988)
0
(532)
(18 520)
> 5 years
(33 279)
(807)
(34 087)
(34 950)
(906)
(35 855)
Total
(54 744)
(39 376)
(1 482)
(95 601)
(54 943)
(40 240)
(1 596)
(96 780)
Borrowings
Payables
Other financial liabilities
Total at 31.12.2017
Borrowings
Payables
Other financial liabilities
Total at 31.12.2016
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Financial instruments at fair value through surplus or deficit
EUR millions
Derivative pay leg
Derivative receive leg
Net cash flows at 31.12.2017
Derivative pay leg
Derivative receive leg
Net cash flows at 31.12.2016
< 1 year
(634)
638
5
(150)
149
(1)
1-5 years
(2)
(2)
> 5 years
Total
(635)
638
3
(150)
149
(1)
6.5.
CARRYING AMOUNT AND FAIR VALUE OF FINANCIAL
INSTRUMENTS
The following classes of financial assets and liabilities are not measured at fair value: cash and cash
equivalents, loans, exchange receivables and non-exchange recoverables, borrowings and other financial
liabilities at amortised cost. The carrying amount of those financial assets and liabilities is considered as a
reasonable approximation of their fair value.
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7.
RELATED PARTIES
The related parties of the entity are the EU consolidated entities and the key management personnel of
these entities. Transactions between these entities take place as part of the normal operations of the EU
and as this is the case, no specific disclosure requirements are necessary for these transactions in
accordance with the EU accounting rules.
Details on key management entitlements are provided in note
7
of the EU consolidated annual accounts.
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8.
EVENTS AFTER THE BALANCE SHEET DATE
At the date of signing of these accounts no material issues had come to the attention of or were reported
to the Accounting Officer of the Commission that would require separate disclosure under this section. As
explained in
note 4.1.1
of the consolidated financial statements of the EU, the EFSI Agreement has been
amended in March 2018 following the amended Regulation EU 2017/2396.
The accounts and related notes were prepared using the most recently available information and this is
reflected in the information presented.
55
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EUROPEAN COMMISSION
FINANCIAL YEAR 2017
BUDGETARY IMPLEMENTATION REPORTS
It should be noted that due to the rounding of figures into millions of euros, some financial data in the
tables below may appear not to add-up.
57
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58
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CONTENTS
EU BUDGET RESULT........................................................................................ 60
STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS ....................... 61
1.
2.
IMPLEMENTATION OF EC BUDGET REVENUE .............................................. 64
IMPLEMENTATION OF EC BUDGET EXPENDITURE ........................................ 65
2.1.
2.2.
2.3.
2.4.
2.5.
2.6.
2.7.
2.8.
2.9.
2.10.
MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT
APPROPRIATIONS ............................................................................. 65
MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS .................. 66
MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ......................... 67
MFF: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) .................... 68
MFF: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN ...................... 69
POLICY AREA: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT
APPROPRIATIONS ............................................................................. 70
POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ..... 72
POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ............ 74
POLICY AREA: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) ....... 76
POLICY AREA: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN ......... 78
RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT .......................... 79
59
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EU BUDGET RESULT
EUR million
2017
Revenue
Expenditure
Payment appropriat. carried over to the following year
Cancellation of unused appropr. carried over from previous year
Evolution of assigned revenue
Exchange differences for the year
Budget result*
139 691
(135 764)
(1 796)
40
(1 450)
(166)
555
2016
144 717
(135 180)
(1 655)
63
(1 367)
(173)
6 405
60
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Annual accounts of the European Commission 2017
STATEMENT OF COMPARISON OF BUDGET AND ACTUAL
AMOUNTS
EUR million
Title
1
Initial
adopted
budget
131 718
133
21 334
16 599
93 652
1 139
Final
adopted
budget
115 484
133
20 374
16 620
78 356
Entitlements
established
115 455
134
20 364
16 584
78 279
94
(0)
Revenue
115 416
134
20 325
16 584
78 279
94
(0)
3
4
5
6
7
8
9
Own resources
11 - Sugar levies
12 - Customs duties
13 - VAT
14 - GNI
15 - Correction of budgetary
imbalances
16 - Reduction of GNI based
contribution of the
Netherlands and Sweden
Surpluses, balances and
adjustments
Revenue accruing from
persons working with the
institutions and other union
bodies
Revenue accruing from the
administrative operation of
the institution
Contributions and refunds in
connection with union
agreements and programmes
Default interest and fines
Borrowing and lending
operations
Miscellaneous revenue
Total
6 405
1 139
6 416
1 148
6 416
1 137
70
70
300
282
60
60
12 473
12 165
1 120
7
25
134 139
3 230
7
25
126 419
11 387
43
12
147 234
3 573
28
6
139 023
61
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Annual accounts of the European Commission 2017
BUDGET EXPENDITURE: COMMITMENTS BY MULTIANNUAL
FINANCIAL FRAMEWORK (MFF) HEADING
EUR million
MFF Heading
1.
Initial
adopted
budget
74 899
21 312
53 587
58 584
42 613
Final
adopted
budget
75 399
21 312
54 087
58 569
42 611
Total
appropriations
available
85 181
24 508
60 673
62 806
45 830
Commitments
made
83 268
22 654
60 614
60 859
44 759
2.
3.
4.
5.
6.
8.
9.
Smart and inclusive growth
1a: Competitiveness for
growth and jobs
1b: Economic, social and
territorial cohesion
Sustainable growth: natural
resources
of which: Market related
expenditure and direct
payments
Security and citizenship
Global Europe
Administration
Compensations
Negative reserve and deficit
carried over from the
previous financial year
Special Instruments
Total
4 284
10 162
5 473
4 284
10 713
5 473
4 472
12 382
5 846
4 124
11 814
5 652
534
153 937
1 472
155 910
1 544
172 231
1 291
167 009
62
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1918387_0064.png
Annual accounts of the European Commission 2017
BUDGET EXPENDITURE: PAYMENTS BY MULTIANNUAL
FINANCIAL FRAMEWORK (MFF) HEADING
EUR million
MFF Heading
1.
Initial
adopted
budget
56 522
19 321
37 201
54 914
42 563
Final
adopted
budget
49 840
20 065
29 775
54 467
42 558
Total
appropriations
available
61 168
24 370
36 797
58 575
45 975
Payments
made
57 030
21 376
35 654
56 743
44 695
2.
3.
4.
5.
6.
8.
9.
Smart and inclusive growth
1a: Competitiveness for
growth and jobs
1b: Economic, social and
territorial cohesion
Sustainable growth: natural
resources
of which: Market related
expenditure and direct
payments
Security and citizenship
Global Europe
Administration
Compensations
Negative reserve and deficit
carried over from the
previous financial year
Special Instruments
Total
3 787
9 483
5 474
2 793
8 938
5 471
2 994
10 944
6 136
2 867
9 793
5 571
390
130 569
1 341
122 850
1 414
141 230
1 291
133 294
63
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Annual accounts of the European Commission 2017
1. IMPLEMENTATION OF EC BUDGET REVENUE
Income appropriations
Entitlements established
Current year
115 429
6 416
1 141
Carried over
26
6
Total
115 455
6 416
1 148
On
entitlements
of current year
115 414
6 416
1 131
Revenue
On
entitlements
carried over
2
6
Total
115 416
6 416
1 137
100%
100%
100%
39
11
Receipts as
% of budget
EUR million
Out-
standing
Title
1
3
4
Own resources
Surpluses, balances and adjustments
Revenue accruing from persons
working with the institutions and other
union bodies
Revenue accruing from the
administrative operation of the
institution
Contributions and refunds in
connection with union agreements and
programmes
Default interest and fines
Borrowing and lending operations
Miscellaneous revenue
Initial
budget
adopted
131 718
1 139
Final budget
adopted
115 484
6 405
1 139
5
70
70
284
16
300
269
12
282
402%
18
6
7
8
9
60
1 120
7
25
134 139
60
3 230
7
25
126 419
12 216
4 823
39
3
140 350
258
6 564
5
9
6 883
12 473
11 387
43
12
147 234
12 050
541
24
2
135 846
116
3 032
5
4
3 177
12 165
3 573
28
6
139 023
20276%
111%
410%
24%
110%
308
7 814
15
6
8 210
Total
64
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1918387_0066.png
Annual accounts of the European Commission 2017
2. IMPLEMENTATION OF EC BUDGET EXPENDITURE
2.1. MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT APPROPRIATIONS
EUR million
Commitment appropriations
Budget appropriations
Initial
adopted
budget
1
1.
Smart and inclusive growth
1a: Competitiveness for growth and
jobs
1b: Economic, social and territorial
cohesion
2.
Sustainable growth: natural resources
of which: Market related expenditure
and direct payments
3.
4.
5.
6.
8.
9.
Total
Security and citizenship
Global Europe
Administration
Compensations
Negative reserve and deficit carried over
from the previous financial year
Special Instruments
74 899
21 312
53 587
58 584
42 613
4 284
10 162
5 473
534
153 937
Amending
budgets &
transfers
2
500
0
500
(15)
(2)
551
938
1 974
Final
adopted
budget
3=1+2
75 399
21 312
54 087
58 569
42 611
4 284
10 713
5 473
1 472
155 910
Additional appropriations
Assigned
revenue
5
0
0
433
433
109
1
31
575
9 782
3 195
6 586
3 804
2 786
188
1 560
371
41
15 746
6=3+4+5
85 181
24 508
60 673
62 806
45 830
4 472
12 382
5 846
1 544
172 231
Total
appropr.
available
Initial
adopted
budget
7
56 522
19 321
37 201
54 914
42 563
3 787
9 483
5 474
390
130 569
Budget appropriations
Amending
budgets &
transfers
8
(6 682)
744
(7 426)
(447)
(5)
(994)
(545)
(2)
951
(7 720)
Final
adopted
budget
9=7+8
49 840
20 065
29 775
54 467
42 558
2 793
8 938
5 471
1 341
122 850
Payment appropriations
Additional appropriat.
Assigned
revenue
11
130
117
13
635
630
11
120
293
32
1 221
11 198
4 188
7 009
3 473
2 786
189
1 887
372
41
17 160
12=9+10+11
61 168
24 370
36 797
58 575
45 975
2 994
10 944
6 136
1 414
141 230
Total appropr.
available
MFF Heading
Carry-overs
4
Carry-overs
10
65
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Annual accounts of the European Commission 2017
2.2. MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS
EUR million
Commitments made
MFF Heading
Total
appropr.
available
1
1.
Smart and inclusive growth
1a: Competitiveness for growth and
jobs
1b: Economic, social and territorial
cohesion
2.
Sustainable growth: natural resources
of which: Market related expenditure
and direct payments
3.
4.
5.
6.
8.
9.
Total
Security and citizenship
Global Europe
Administration
Compensations
Negative reserve and deficit carried over
from the previous financial year
Special Instruments
85 181
24 508
60 673
62 806
45 830
4 472
12 382
5 846
1 544
172 231
from final
adopted
budget
2
75 356
21 301
54 056
58 100
42 150
4 035
10 710
5 431
1 259
154 892
from
carry-
overs
3
0
0
426
426
108
1
31
566
from
assigned
revenue
4
7 912
1 353
6 559
2 334
2 183
89
997
219
11 551
Total
5=2+3+4
83 268
22 654
60 614
60 859
44 759
4 124
11 814
5 652
1 291
167 009
%
6=5/1
98 %
92 %
100 %
97 %
98 %
92 %
95 %
97 %
0%
0%
84 %
97 %
Appropriat. carried over to 2018
assigned
revenue
7
1 870
1 842
28
1 470
603
99
563
152
41
4 195
carry-
overs by
decision
8
27
4
23
451
451
247
2
62
788
Total
9=7+8
1 897
1 846
51
1 920
1 054
345
565
152
103
4 983
from final
adopted
budget
10
16
8
8
19
10
2
1
42
151
231
Appropriations lapsing
from
carry-
overs
11
8
8
1
9
from
assigned
revenue
12
0
0
0
0
0
from
assigned
revenue
12
0
8
8
27
18
2
3
42
151
240
66
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Annual accounts of the European Commission 2017
2.3. MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS
EUR million
Payments made
MFF Heading
Total
appropr.
available
1
1.
Smart and inclusive
growth
1a: Competitiveness
for growth and jobs
1b: Economic, social
and territorial cohesion
Sustainable growth:
natural resources
of which: Market
related expenditure and
direct payments
Security and citizenship
Global Europe
Administration
Compensations
Negative reserve and
deficit carried over from
the previous financial
year
Special Instruments
61 168
24 370
36 797
58 575
45 975
2 994
10 944
6 136
1 414
141 230
from final
adopted
budget
2
49 698
19 945
29 754
53 889
41 992
2 767
8 610
5 123
1 241
121 328
from carry-
overs
3
111
101
11
626
621
10
116
272
32
1 167
from
assigned
revenue
4
7 220
1 330
5 890
2 228
2 081
90
1 067
177
18
10 800
Total
5=2+3+4
57 030
21 376
35 654
56 743
44 695
2 867
9 793
5 571
1 291
133 294
%
6=5/1
93 %
88 %
97 %
97 %
97 %
96 %
89 %
91 %
0%
0%
91 %
94 %
Appropriations carried over to 2018
auto-
matic
carry-overs
7
121
108
13
111
103
11
314
305
0
0
862
carry-overs
by decis.
8
451
451
5
2
1
458
assigned
revenue
9
3 977
2 858
1 119
1 245
705
99
820
195
23
6 359
Total
10=7+8+9
4 098
2 966
1 132
1 806
1 259
115
1 136
501
24
7 680
from final
adopted
budget
11
21
12
9
17
12
11
12
42
99
201
Appropriations lapsing
from carry-
overs
12
19
16
3
9
8
1
4
21
0
54
from
assigned
revenue
13
0
0
0
0
Total
14=11+12
+13
40
28
11
26
21
12
16
63
99
255
2.
3.
4.
5.
6.
8.
9.
Total
67
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1918387_0069.png
Annual accounts of the European Commission 2017
2.4. MFF: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL)
EUR million
Total commitm.
outstanding at
end of the year
Commitm.
outstanding at
year-end
75 467
15 162
60 304
15 977
275
2 908
8 682
358
0
103 392
196 837
35 576
161 260
37 883
309
5 194
26 478
359
0
266 751
Commitments outstanding at the end of previous year
Commit. carried
forward from
prev. year
174 938
35 622
139 316
33 947
247
4 167
24 974
301
0
238 328
Decommitments/
Revaluat./
Cancellations
(4 337)
(1 321)
(3 015)
(180)
(2)
(231)
(517)
(22)
(0)
(5 287)
Commitm.
outstanding at
year-end
121 370
20 414
100 956
21 907
33
2 286
17 795
2
163 359
Commit. made
during the year
83 268
22 654
60 614
60 859
44 759
4 124
11 814
5 652
1 291
167 009
Commitments of the year
Cancellation of
commitm. which
cannot be
carried-over
(3)
(3)
(0)
(0)
(1)
(0)
(4)
MFF Heading
1.
Smart and inclusive growth
1a: Competitiveness for growth and jobs
1b: Economic, social and territorial cohesion
2.
Sustainable growth: natural resources
of which: Market related expenditure and direct
payments
3.
4.
5.
6.
8.
9.
Total
Security and citizenship
Global Europe
Administration
Compensations
Negative reserve and deficit carried over from the
previous financial year
Special Instruments
Payments
(49 231)
(13 887)
(35 345)
(11 860)
(211)
(1 650)
(6 662)
(278)
(0)
(69 681)
Payments
(7 799)
(7 489)
(310)
(44 882)
(44 484)
(1 217)
(3 131)
(5 294)
(1 290)
(63 613)
68
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Annual accounts of the European Commission 2017
2.5. MFF: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN
EUR million
MFF Heading
1
Smart and inclusive growth
1a: Competitiveness for growth and jobs
1b: Economic, social and territorial cohesion
2
Sustainable growth: natural resources
of which: Market related expenditure and direct
payments
3
4
5
6
8
9
Total
Security and citizenship
Global Europe
Administration
Compensations
Negative reserve and deficit carried over from the
previous financial year
Special Instruments
<2011
1 575
741
834
227
40
1 036
2 878
2011
532
294
238
58
34
543
1 166
2012
1 464
829
635
76
74
1 054
2 668
2013
13 556
2 754
10 802
992
114
2 232
0
16 893
2014
6 680
3 620
3 060
496
0
77
2 675
0
9 928
2015
41 805
4 893
36 912
5 470
12
278
4 226
0
51 779
2016
55 759
7 283
48 475
14 588
22
1 669
6 030
2
(0)
78 048
2017
75 467
15 162
60 304
15 977
275
2 908
8 682
358
0
103 392
Total
196 837
35 576
161 260
37 883
309
5 194
26 478
359
0
266 751
69
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Annual accounts of the European Commission 2017
2.6. POLICY AREA: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT
APPROPRIATIONS
EUR million
Commitment appropriations
Budget appropriations
Initial
adopted
budget
1
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Economic and financial affairs
Internal market, industry,
entrepreneurship and SMEs
Competition
Employment, social affairs and inclusion
Agriculture and rural development
Mobility and transport
Environment
Research and innovation
Communications networks, content and
technology
Direct research
Maritime affairs and fisheries
Financial stability, financial services and
capital markets union
Regional and urban policy
Taxation and customs union
Education and culture
Communication
Health and food safety
Migration and home affairs
Foreign policy instruments
Trade
International cooperation and development
Neighbourhood and enlargement
negotiations
Humanitarian aid and civil protection
Fight against fraud
Commission's policy coordination and legal
advice
Commission's administration
Budget
Audit
Statistics
3 086
2 456
108
13 813
57 538
3 784
473
6 193
2 008
402
1 105
91
38 612
178
3 366
212
564
3 459
738
113
3 703
4 508
1 053
82
232
1 070
76
19
144
Amending
budgets &
transfers
2
269
(6)
(0)
527
(8)
(1)
(0)
(0)
1
(12)
(0)
1 203
7
0
0
2
(1)
(54)
(1)
(27)
23
319
0
(1)
(5)
(0)
(0)
Final
adopted
budget
3=1+2
3 356
2 449
108
14 341
57 530
3 783
473
6 193
2 009
402
1 094
90
39 815
186
3 367
212
566
3 458
685
112
3 676
4 531
1 372
82
233
1 069
71
19
143
Additional appropriations
Assigned
revenue
5
0
0
433
0
0
0
0
0
31
0
0
9
0
1
99
0
456
251
5
1 731
3 690
181
20
1 142
271
582
137
6
4 920
8
549
12
48
148
59
3
189
122
774
0
12
191
8
1
18
6=3+4+5
3 812
2 700
113
16 072
61 653
3 964
492
7 334
2 280
984
1 231
96
44 767
194
3 916
224
614
3 607
753
115
3 866
4 653
2 244
82
245
1 259
79
20
161
Total
appropr.
available
Initial
adopted
budget
7
2 840
2 260
108
10 726
54 110
1 815
388
5 912
2 165
402
768
92
26 780
161
3 146
210
542
3 103
699
112
3 339
3 856
1 255
80
232
1 068
76
19
128
Budget appropriations
Amending
budgets &
transfers
8
316
(6)
(0)
(1 342)
(204)
179
(18)
(1)
(60)
(9)
(191)
(3)
(4 883)
0
17
(1)
6
(1 035)
(109)
(2)
(178)
(673)
228
0
(7)
(5)
(0)
10
Final
adopted
budget
9=7+8
3 156
2 255
108
9 383
53 906
1 994
371
5 911
2 104
392
577
89
21 898
161
3 163
209
547
2 068
590
110
3 161
3 183
1 483
80
233
1 061
71
19
137
Payment appropriations
Additional appropriations
Assigned
revenue
11
6
14
8
13
636
5
4
28
15
47
2
3
42
5
13
11
9
8
3
3
22
11
92
12
16
146
8
1
5
458
452
5
2 166
3 364
177
18
1 716
339
518
137
6
4 912
8
721
12
49
165
59
3
214
456
733
0
12
193
8
1
23
12=9+10+11
3 620
2 721
121
11 562
57 907
2 176
392
7 655
2 459
957
716
98
26 852
174
3 898
232
605
2 240
652
116
3 397
3 650
2 308
92
260
1 400
87
21
165
Total appropr.
available
Policy area
Carried-over
4
Carried-over
10
70
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Annual accounts of the European Commission 2017
EUR million
Commitment appropriations
Budget appropriations
Initial
adopted
budget
1
30
31
32
33
34
40
Total
Pensions and related expenditure
Language services
Energy
Justice and consumers
Climate action
Reserves
1 797
408
1 643
271
147
484
153 937
Amending
budgets &
transfers
2
12
(2)
(0)
(0)
(0)
(271)
1 974
Final
adopted
budget
3=1+2
1 809
406
1 643
271
147
213
155 910
Additional appropriations
Assigned
revenue
5
0
0
575
0
74
128
9
1
15 746
6=3+4+5
1 809
479
1 771
280
148
213
172 231
Total
appropr.
available
Initial
adopted
budget
7
1 797
408
1 317
238
102
315
130 569
Budget appropriations
Amending
budgets &
transfers
8
12
(2)
478
(1)
(19)
(216)
(7 720)
Final
adopted
budget
9=7+8
1 809
406
1 795
237
84
99
122 850
Payment appropriations
Additional appropriations
Assigned
revenue
11
19
5
4
4
1 221
0
74
151
9
1
17 160
12=9+10+11
1 809
498
1 952
250
89
99
141 230
Total appropr.
available
Policy area
Carried-over
4
Carried-over
10
71
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Annual accounts of the European Commission 2017
2.7. POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS
EUR million
Commitments made
Policy area
Total
appropr.
available
1
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Economic and financial affairs
Internal market, industry,
entrepreneurship and SMEs
Competition
Employment, social affairs and inclusion
Agriculture and rural development
Mobility and transport
Environment
Research and innovation
Communications networks, content and
technology
Direct research
Maritime affairs and fisheries
Financial stability, financial services and
capital markets union
Regional and urban policy
Taxation and customs union
Education and culture
Communication
Health and food safety
Migration and home affairs
Foreign policy instruments
Trade
International cooperation and
development
Neighbourhood and enlargement
negotiations
Humanitarian aid and civil protection
Fight against fraud
Commission's policy coordination and
legal advice
Commission's administration
Budget
Audit
Statistics
Pensions and related expenditure
Language services
Energy
3 812
2 700
113
16 072
61 653
3 964
492
7 334
2 280
984
1 231
96
44 767
194
3 916
224
614
3 607
753
115
3 866
4 653
2 244
82
245
1 259
79
20
161
1 809
479
1 771
from final
adopted
budget
2
3 355
2 449
107
14 332
57 064
3 781
472
6 192
2 005
402
1 089
90
39 788
185
3 366
211
565
3 209
684
111
3 672
4 529
1 371
79
231
1 067
69
19
142
1 800
402
1 639
from
carry-
overs
3
0
0
426
0
0
0
0
0
31
0
0
8
0
1
99
0
0
from
assigned
revenue
4
43
110
3
1 678
2 203
48
14
598
86
121
136
2
4 890
2
300
6
31
63
47
2
159
70
724
7
121
4
1
7
0
44
27
Total
5=2+3+4
3 398
2 559
110
16 010
59 693
3 830
486
6 790
2 091
523
1 225
92
44 710
188
3 666
218
596
3 272
739
113
3 832
4 599
2 194
79
237
1 188
73
20
149
1 800
446
1 665
%
6=5/1
89 %
95 %
97 %
100 %
97 %
97 %
99 %
93 %
92 %
53 %
100 %
96 %
100 %
97 %
94 %
97 %
97 %
91 %
98 %
98 %
99 %
99 %
98 %
95 %
97 %
94 %
92 %
97 %
93 %
99 %
93 %
94 %
Appropriations carried over to 2018
assigned
revenue
7
413
141
3
53
1 487
133
6
543
184
461
1
3
30
6
249
6
17
86
12
1
30
52
49
0
5
70
4
1
11
0
30
102
carry-
overs by
decision
8
451
4
25
247
1
Total
9=7+8
413
141
3
53
1 938
133
6
543
188
461
1
3
54
6
249
6
17
332
12
1
31
52
49
0
5
70
4
1
11
0
30
102
from final
adopted
budget
10
1
1
1
9
15
1
1
1
0
0
4
1
3
1
1
1
1
2
0
1
4
2
1
4
2
2
3
0
1
9
3
5
Appropriations lapsing
from
carry-
overs
11
8
1
from
assigned
revenue
12
0
0
0
0
0
Total
13=10+
11+12
1
1
1
9
23
1
1
1
0
0
4
1
3
1
1
1
1
2
2
1
4
2
1
4
2
2
3
0
1
9
3
5
72
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1918387_0074.png
Annual accounts of the European Commission 2017
EUR million
Commitments made
Policy area
Total
appropr.
available
1
33
34
40
Total
Justice and consumers
Climate action
Reserves
280
148
213
172 231
from final
adopted
budget
2
270
146
154 892
from
carry-
overs
3
0
566
from
assigned
revenue
4
3
1
11 551
Total
5=2+3+4
273
147
167 009
%
6=5/1
98 %
100 %
0%
97 %
Appropriations carried over to 2018
assigned
revenue
7
6
0
4 195
carry-
overs by
decision
8
62
788
Total
9=7+8
6
0
62
4 983
from final
adopted
budget
10
1
0
151
231
Appropriations lapsing
from
carry-
overs
11
9
from
assigned
revenue
12
0
Total
13=10+
11+12
1
0
151
240
73
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Annual accounts of the European Commission 2017
2.8. POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS
EUR million
Payments made
Policy area
Total
appropr.
available
1
01
Economic and financial
affairs
Internal market,
industry,
entrepreneurship and
SMEs
Competition
Employment, social
affairs and inclusion
Agriculture and rural
development
Mobility and transport
Environment
Research and
innovation
Communications
networks, content and
technology
Direct research
Maritime affairs and
fisheries
Financial stability,
financial services and
capital markets union
Regional and urban
policy
Taxation and customs
union
Education and culture
Communication
Health and food safety
Migration and home
affairs
Foreign policy
instruments
Trade
International
cooperation and
development
Neighbourhood and
enlargement
negotiations
Humanitarian aid and
civil protection
Fight against fraud
Commission's policy
coordination and legal
3 620
from final
adopted
budget
2
2 873
from carry-
overs
3
5
from
assigned
revenue
4
45
Total
5=2+3+4
2 923
%
6=5/1
81 %
Appropriations carried over to 2018
automatic
carry-overs
7
282
carry-overs
by decis.
8
451
0
7
0
assigned
revenue
9
414
Total
10=7+8+9
695
from final
adopted
budget
11
1
Appropriations lapsing
from carry-
overs
12
0
from
assigned
revenue
13
Total
14=11+12
+13
1
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
2 721
121
11 562
57 907
2 176
392
7 655
2 459
957
716
98
26 852
174
3 898
232
605
2 240
652
116
3 397
2 238
97
9 365
53 329
1 988
366
5 878
2 090
346
573
84
21 878
154
3 149
196
534
2 051
582
106
3 133
13
8
9
627
4
3
26
13
41
2
3
41
5
13
10
8
7
3
3
19
112
2
1 069
2 212
86
15
486
87
104
7
2
4 853
2
351
6
30
69
33
1
140
2 363
107
10 443
56 167
2 078
384
6 390
2 190
491
582
90
26 772
162
3 512
212
573
2 127
618
110
3 292
87 %
88 %
90 %
97 %
96 %
98 %
83 %
89 %
51 %
81 %
92 %
100 %
93 %
90 %
91 %
95 %
95 %
95 %
95 %
97 %
16
10
11
112
5
4
27
14
47
3
4
13
6
14
12
10
9
4
3
22
340
3
1 097
1 152
91
3
1 230
253
413
130
3
59
6
370
7
19
95
26
2
74
356
13
1 108
1 715
96
7
1 257
267
460
132
7
72
12
384
18
29
104
30
5
96
1
1
7
15
1
0
6
1
0
2
1
6
1
1
1
3
8
4
1
6
1
0
4
10
1
1
2
2
6
0
0
2
0
1
1
0
1
0
0
3
0
0
0
0
(0)
0
0
0
2
1
11
25
2
1
8
3
6
2
1
8
1
1
2
3
9
4
1
9
22
23
24
25
3 650
2 308
92
260
3 165
1 466
70
211
9
92
8
14
241
648
6
3 415
2 206
78
232
94 %
96 %
84 %
89 %
13
7
6
19
215
85
0
6
228
99
7
25
5
2
4
2
1
0
4
2
6
3
8
4
74
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1918387_0076.png
Annual accounts of the European Commission 2017
EUR million
Payments made
Policy area
Total
appropr.
available
1
advice
26
27
28
29
30
31
32
33
34
40
Total
Commission's
administration
Budget
Audit
Statistics
Pensions and related
expenditure
Language services
Energy
Justice and consumers
Climate action
Reserves
1 400
87
21
165
1 809
498
1 952
250
89
99
141 230
926
53
18
131
1 800
382
1 786
231
78
121 328
139
7
1
4
18
5
3
4
1 167
91
3
1
4
0
40
46
5
0
10 800
1 157
63
19
139
1 800
440
1 837
240
82
133 294
83 %
72 %
91 %
84 %
99 %
88 %
94 %
96 %
93 %
0%
94 %
132
16
1
6
20
5
4
4
862
1
458
101
5
1
19
0
34
105
3
1
6 359
234
21
2
25
0
54
110
8
5
7 680
2
3
0
1
9
3
3
1
1
99
201
7
1
0
0
1
1
1
0
54
0
0
9
3
0
1
9
4
4
2
1
99
255
from final
adopted
budget
2
from carry-
overs
3
from
assigned
revenue
4
Total
5=2+3+4
%
6=5/1
Appropriations carried over to 2018
automatic
carry-overs
7
carry-overs
by decis.
8
assigned
revenue
9
Total
10=7+8+9
from final
adopted
budget
11
Appropriations lapsing
from carry-
overs
12
from
assigned
revenue
13
Total
14=11+12
+13
75
kom (2018) 0525 - Ingen titel
1918387_0077.png
Annual accounts of the European Commission 2017
2.9. POLICY AREA: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL)
EUR million
Commitments outstanding at the end of previous year
Policy area
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
Economic and financial affairs
Internal market, industry, entrepreneurship and
SMEs
Competition
Employment, social affairs and inclusion
Agriculture and rural development
Mobility and transport
Environment
Research and innovation
Communications networks, content and technology
Direct research
Maritime affairs and fisheries
Financial stability, financial services and capital
markets union
Regional and urban policy
Taxation and customs union
Education and culture
Communication
Health and food safety
Migration and home affairs
Foreign policy instruments
Trade
International cooperation and development
Neighbourhood and enlargement negotiations
Humanitarian aid and civil protection
Fight against fraud
Commission's policy coordination and legal advice
Commission's administration
Budget
Audit
Statistics
Pensions and related expenditure
Language services
Energy
Justice and consumers
Commitm.
carried forward
from prev. year
2 861
2 648
8
37 331
30 520
7 801
1 182
13 309
2 832
196
2 630
13
99 518
128
2 644
62
480
3 539
930
22
9 150
12 870
1 050
29
16
184
8
1
119
19
5 740
250
Decommitm./Reval
uat./Cancellations
(74)
(31)
(0)
(277)
(154)
(663)
(2)
(228)
(25)
(14)
(30)
(2)
(2 761)
(6)
(231)
(3)
(29)
(174)
(24)
(1)
(211)
(231)
(55)
(2)
(2)
(9)
(1)
(0)
(4)
(1)
(12)
(30)
Payments
(2 501)
(1 361)
(8)
(10 098)
(11 338)
(1 581)
(268)
(4 300)
(1 278)
(111)
(399)
(9)
(25 240)
(77)
(1 103)
(55)
(254)
(1 324)
(310)
(14)
(2 643)
(2 830)
(605)
(19)
(14)
(166)
(7)
(1)
(54)
(18)
(1 539)
(102)
Commitm.
outstanding at
year-end
287
1 257
26 955
19 028
5 557
913
8 781
1 530
71
2 202
2
71 518
45
1 310
5
197
2 041
597
7
6 296
9 808
390
8
9
61
4 189
118
Commitm. made
during the year
3 398
2 559
110
16 010
59 693
3 830
486
6 790
2 091
523
1 225
92
44 710
188
3 666
218
596
3 272
739
113
3 832
4 599
2 194
79
237
1 188
73
20
149
1 800
446
1 665
273
Commitments of the year
Payments
(423)
(1 002)
(99)
(345)
(44 829)
(497)
(117)
(2 090)
(912)
(380)
(183)
(81)
(1 532)
(85)
(2 409)
(158)
(319)
(803)
(308)
(96)
(649)
(585)
(1 601)
(59)
(218)
(991)
(56)
(19)
(85)
(1 800)
(422)
(298)
(139)
Cancellation of
commitm. which
cannot be
carried-over
(1)
(0)
(0)
(1)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
(0)
Commitm.
outstanding at
year-end
2 975
1 556
11
15 665
14 863
3 333
369
4 700
1 179
143
1 042
11
43 177
103
1 257
60
277
2 470
431
16
3 183
4 014
593
19
20
197
17
1
64
24
1 367
135
Total commitm.
outstanding at end
of the year
3 262
2 812
11
42 620
33 891
8 889
1 282
13 481
2 709
214
3 244
14
114 695
148
2 566
65
474
4 511
1 027
24
9 479
13 822
983
27
20
206
17
1
125
24
5 556
252
76
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1918387_0078.png
Annual accounts of the European Commission 2017
EUR million
Commitments outstanding at the end of previous year
Policy area
34
40
Total
Climate action
Reserves
Commitm.
carried forward
from prev. year
237
238 328
Decommitm./Reval
uat./Cancellations
(1)
(5 287)
Payments
(56)
(69 681)
Commitm.
outstanding at
year-end
180
163 359
Commitm. made
during the year
147
167 009
Commitments of the year
Payments
(26)
(63 613)
Cancellation of
commitm. which
cannot be
carried-over
(4)
Commitm.
outstanding at
year-end
121
103 392
Total commitm.
outstanding at end
of the year
301
266 751
77
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Annual accounts of the European Commission 2017
2.10.
POLICY AREA: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN
EUR million
Policy area
<2011
2
12
387
34
30
108
68
40
11
84
665
6
16
35
8
253
532
26
560
0
2 878
2011
21
238
18
58
135
25
0
0
6
22
0
3
29
9
0
183
334
13
0
69
4
1 166
2012
29
25
146
1
158
63
401
46
0
11
493
0
69
0
4
81
32
0
407
604
13
0
80
6
2 668
2013
244
51
2 092
681
125
100
919
125
10
268
8 938
138
0
9
130
40
0
813
1 093
14
1
1
1 093
7
0
16 893
2014
0
80
1 231
318
978
142
1 857
294
7
9
0
1 395
2
209
0
25
58
125
0
1 032
1 480
20
1
1
8
600
15
38
9 928
2015
2
244
10 492
4 368
1 224
203
2 426
395
6
972
1
25 751
12
388
0
48
220
165
1
1 530
2 412
32
2
0
15
789
25
56
51 779
2016
10
823
0
12 369
13 625
3 025
239
2 975
604
36
856
2
34 270
31
479
4
90
1 489
218
5
2 079
3 353
271
5
0
6
0
37
0
999
61
86
78 048
2017
2 975
1 556
11
15 665
14 863
3 333
369
4 700
1 179
143
1 042
11
43 177
103
1 257
60
277
2 470
431
16
3 183
4 014
593
19
20
197
17
1
64
24
1 367
135
121
103 392
Total
3 262
2 812
11
42 620
33 891
8 889
1 282
13 481
2 709
214
3 244
14
114 695
148
2 566
65
474
4 511
1 027
24
9 479
13 822
983
27
20
206
17
1
125
24
5 556
252
301
266 751
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
40
Total
Economic and financial affairs
Internal market, industry, entrepreneurship and
SMEs
Competition
Employment, social affairs and inclusion
Agriculture and rural development
Mobility and transport
Environment
Research and innovation
Communications networks, content and technology
Direct research
Maritime affairs and fisheries
Financial stability, financial services and capital
markets union
Regional and urban policy
Taxation and customs union
Education and culture
Communication
Health and food safety
Migration and home affairs
Foreign policy instruments
Trade
International cooperation and development
Neighbourhood and enlargement negotiations
Humanitarian aid and civil protection
Fight against fraud
Commission's policy coordination and legal advice
Commission's administration
Budget
Audit
Statistics
Pensions and related expenditure
Language services
Energy
Justice and consumers
Climate action
Reserves
78
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Annual accounts of the European Commission 2017
RECONCILIATION OF ECONOMIC RESULT WITH BUDGET
RESULT
EUR millions
2017
ECONOMIC RESULT OF THE YEAR
Revenue
Entitlements established in current year but not yet
collected
Entitlements established in previous years and collected in
current year
Accrued revenue (net)
Expenses
Accrued expenses (net)
Amount from liaison account
Expenses prior year paid in current year
Net-effect pre-financing
Payment appropriations carried over to next year
Payments made from carry-overs & cancellation of unused
payment appropriations
Movement in provisions
Other
BUDGET RESULT OF THE YEAR
BUDGET RESULT OTHER INSTITUTIONS
BUDGET RESULT OF THE YEAR (EU)
7 901
2016
1 775
(4 402)
10 733
(257)
3 706
3 378
(3 574)
(12 039)
(2 746)
1 181
6 795
(6 675)
4 000
(3 445)
555
(1 963)
3 356
611
10 626
3 286
(7 656)
(366)
(2 500)
841
3 890
(2 084)
9 817
(3 413)
6 405
79