The BCRA Submits its Financial Statements under Current Accounting Standards

The Board of the BCRA approved its reviewed Accounting Policy Manual for transparency.

Reviews mostly involve the valuation criteria of Non-Transferable and other National Treasury Bills in US dollars, as well as Temporary Advances to the Argentine Government. In the past, both risk exposures to the Public Sector were assessed according to the “Technical Value” and “Nominal Value” criteria, respectively (which is no longer accepted by the current Argentine professional accounting standards for assessing similar loans. The Argentine professional accounting standards set out that Non-Transferable Bills and Temporary Advances must be valued, from the financial statements as of December 31, 2023, at “amortized cost considering the recoverable value limit”.

As of December 31, 2023, these changes in the accounting valuation criterion resulted in a loss of ARS41,555,355 million on Non-transferable bills, and ARS2,315,415 million on Temporary advances.

The measure adopted allowed to solve significant differences in the valuation of both risk exposures under the current Argentine professional accounting standards, which results in an objective measurement of the net worth as a diagnosis of the situation inherited by this Board of Directors. This change is the first step to submit financial statements based on International Financial Reporting Standards (IFRS), as applied to financial institutions in Argentina.

The recognition of the loss referred to above rules out the possibility of drawing on accounting profit transfers (which hardly reflected the real economic and financial situation of the BCRA) as an alternative mechanism of monetary financing to the Treasury. This measure is consistent with the commitment of reaching zero deficit and removing monetary financing.

Download Financial Statements 2023 - in Spanish -

To access previous balances, click here

May 10, 2024

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