Consultation launches on a common accounting framework for gold

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Categories: Investment, Central banks/official inst.

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The World Gold Council, the market development organisation for the gold industry, has today published its consultation paper, Guidance for Monetary Authorities on the recommended practice in accounting for gold. The paper aims to help standardise accounting practices with respect to monetary gold, by establishing a suitable framework that is consistent with the concepts of current general purpose financial reporting frameworks.

The recommended practice was developed in open engagement with the industry and recognises that the purposes for which monetary authorities hold gold are quite distinct from commercial entities. This has led to monetary authorities adopting a variety of different treatments, which limit the comparability of financial statements and risks reducing their credibility, a key element in monetary authorities’ independence and accountability. This lack of standardisation also creates a barrier for central banks and other monetary authorities to invest in and benefit from gold. 

As such, there has been interest in standardisation in this area, as one consistent approach would strengthen accounting practices globally and encourage central banks to hold more gold as a reserve asset. 

The World Gold Council is seeking views on the proposed recommendations from all interested parties by Monday 31 July 2017. Although primarily focused on monetary authorities, the guidance may be relevant for other institutions, such as sovereign wealth funds.

The exposure draft can be found online here and feedback can be sent to: 

World Gold Council
Central Banks and Public Policy Programme
685 Third Avenue, 27th Floor
New York, NY 10017
United States of America
Email: [email protected]

The groundwork for this paper was originally developed in a discussion paper, Working towards a common accounting framework for gold, released in June 2016, which reviews the different approaches to gold accounting adopted by monetary authorities.  This paper can be found here

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For further information please contact:

Stephanie Mackrell
World Gold Council
T    +44 207 826 4763
E    [email protected]

Daniel Adkins
Edelman
T    +44 203 047 2587
E    [email protected]

 

Note to editors:

World Gold Council
The World Gold Council is the market development organisation for the gold industry. Our purpose is to stimulate and sustain demand for gold, provide industry leadership, and be the global authority on the gold market. 

We develop gold-backed solutions, services and products, based on authoritative market insight and we work with a range of partners to put our ideas into action. As a result, we create structural shifts in demand for gold across key market sectors. We provide insights into the international gold markets, helping people to understand the wealth preservation qualities of gold and its role in meeting the social and environmental needs of society. 

The membership of the World Gold Council includes the world’s leading and most forward thinking gold mining companies.