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Council Regulation (EC) No 2223/96Show full title

Council Regulation (EC) No 2223/96 of 25 June 1996 on the European system of national and regional accounts in the Community

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  1. Introductory Text

  2. Article 1.Purpose

  3. Article 2.Methodology

  4. Article 3.Transmission to the Commission

  5. Article 4.(1) The Commission shall be assisted by the Statistical Programme...

  6. Article 5.The Committee's tasks

  7. Article 6.Cooperation with other committees

  8. Article 7.Date of application and of first transmission of data

  9. Article 8.Transitional provisions

  10. Article 9.This Regulation shall enter into force on the 20th day...

    1. ANNEX A

      EUROPEAN SYSTEM OF ACCOUNTS

      1. CHAPTER 1 GENERAL FEATURES

        1. 1.01. The European System of National and Regional Accounts (1995 ESA,...

        2. 1.02. The ESA framework consists of two main sets of tables:...

        3. THE USES OF THE ESA

          1. Framework for analysis and policy

            1. 1.03. The ESA framework can be used to analyse and evaluate:...

            2. 1.04. For the European Union and its Member States, the figures...

          2. Eight characteristics of ESA concepts

            1. 1.05. In order to establish a good balance between data needs...

            2. 1.06. The concepts are internationally compatible because:

            3. 1.07. The concepts are harmonized with those in other social and...

            4. 1.08. The identities in the accounting framework enforce the consistency of...

            5. 1.09. The concepts in the ESA are operational concepts since they...

            6. 1.10. However, at the same time, the concepts are not always...

            7. 1.11. The main concepts in the ESA are well-established and fixed...

            8. 1.12. The ESA concepts are focused on describing the economic process...

            9. 1.13. The scope of the concepts in the ESA can be...

            10. 1.14. The concepts in the ESA are multi-purpose: for a great...

            11. 1.15. The detail in the conceptual framework of the ESA offers...

            12. 1.16. Flexible use is also possible by introducing additional criteria which...

            13. 1.17. This flexible use may be incorporated in a Social Accounting...

            14. 1.18. For some specific data needs the best solution is to...

            15. 1.19. Satellite accounts can serve such data needs by:

            16. 1.20. An important feature of the satellite accounts is that in...

            17. 1.21. The standard framework does not pay much attention to stocks...

            18. 1.22. The standard framework and its major aggregates do not describe...

            19. 1.23. In order to attain a consistent, internationally compatible framework, administrative...

          3. The 1995 ESA and the 1993 SNA

            1. 1.24. The ESA (the 1995 ESA) is fully consistent with the...

          4. The 1995 ESA and the 1970 ESA

            1. 1.25. The 1995 ESA differs in scope as well as in...

        4. THE ESA AS A SYSTEM

          1. 1.26. The main features of the system are:

          2. STATISTICAL UNITS AND THEIR GROUPINGS

            1. 1.27. A characteristic feature of the system is the use of...

            2. Institutional units and sectors

              1. 1.28. Institutional units are economic entities that are capable of owning...

            3. Local kind-of-activity units and industries

              1. 1.29. Most institutional units in their capacity as producers carry out...

            4. Resident and non-resident units; total economy and rest of the...

              1. 1.30. The total economy is defined in terms of resident units....

          3. FLOWS AND STOCKS

            1. 1.31. The system records two basic kinds of information: flows and...

            2. Flows

              1. 1.32. Flows reflect the creation, transformation, exchange, transfer or extinction of...

              2. Transactions

                1. 1.33. A transaction is an economic flow that is an interaction...

              3. Properties of transactions

                1. Interactions versus intra-unit transactions

                  1. 1.34. Most transactions are interactions between two or more institutional units....

                  2. 1.35. All own-produced output used for final uses within the same...

                2. Monetary versus non-monetary transactions

                  1. 1.36. Most transactions recorded by the system are monetary transactions, where...

                3. Transactions with and without counterparts

                  1. 1.37. Transactions involving more than one unit are either ‘something for...

                4. Rearranged transactions

                  1. 1.38. The system's treatment of most transactions is straightforward; that is,...

                  2. Rerouting

                    1. 1.39. A transaction that appears to the units involved as taking...

                  3. Partitioning 1.40. When a transaction appearing to the parties involved as...

                    1. 1.40. When a transaction appearing to the parties involved as a...

                  4. Recognizing the principal party to a transaction

                    1. 1.41. When a unit carries out a transaction on behalf of...

                5. Borderline cases

                  1. 1.42. The definition of a transaction stipulates that an interaction between...

              4. Other changes in assets

                1. 1.43. Other changes in assets record changes that are not the...

                2. Other changes in the volume of assets and liabilities

                  1. 1.44. These changes can be roughly divided into three main categories:...

                  2. 1.45. Examples of changes within category (a) are discovery or depletion...

                3. Holding gains and losses

                  1. 1.46. Holding gains and losses result from changes in the prices...

            3. Stocks

              1. 1.47. Stocks are holdings of assets and liabilities at a point...

          4. THE SYSTEM OF ACCOUNTS AND THE AGGREGATES

            1. Rules of accounting

              1. 1.48. An account is a means of recording, for a given...

              2. Terminology for the two sides of the accounts

                1. 1.49. The system employs the term ‘resources’ for the right side...

              3. Double entry/quadruple entry

                1. 1.50. For a unit or sector, national accounting is based on...

              4. Valuation

                1. 1.51. With the exception of some variables concerning population and labour,...

                2. 1.52. In the case of monetary transactions and cash holdings and...

                3. 1.53. Stocks should be valued at current prices at the time...

                4. Special valuations concerning products

                  1. 1.54. Because of transport costs, trade margins and taxes less subsidies...

                  2. 1.55. Imports and exports of products are recorded at border values....

                5. Valuation at constant prices

                  1. 1.56. Valuation at constant prices means valuing the flows and stocks...

              5. Time of recording

                1. 1.57. The system records flows on an accrual basis; that is,...

              6. Consolidation and netting

                1. Consolidation

                  1. 1.58. Consolidation refers to the elimination, from both uses and resources,...

                2. Netting

                  1. 1.59. Individual units or sectors may have the same kind of...

              7. Accounts, balancing items and aggregates

                1. 1.60. For units (institutional units; local kind-of-activity units) or groups of...

            2. The sequence of accounts

              1. 1.61. The system is built around a sequence of inter-connected accounts....

              2. 1.62. It is not possible to envisage a complete set of...

            3. The goods and services account

              1. 1.63. The goods and services account shows, for the economy as...

            4. The Rest of the World account

              1. 1.64. The Rest of the World account covers transactions between resident...

            5. Balancing items

              1. 1.65. A balancing item is an accounting construct obtained by subtracting...

            6. Aggregates

              1. 1.66. The aggregates are composite values which measure the result of...

              2. 1.67. A dimension is added to the usefulness of a number...

          5. THE INPUT-OUTPUT FRAMEWORK

            1. 1.68. The input-output framework consists of supply and use tables by...

            2. 1.69. Supply and use tables are matrices (rows of products, columns...

            3. 1.70. It is possible to link the supply and use tables...

      2. CHAPTER 2 UNITS AND GROUPINGS OF UNITS

        1. 2.01. The economy of a country is the outcome of the...

        2. 2.02. The units and groupings of units used in national accounts...

        3. 2.03. A feature of the system is the use of three...

        4. THE LIMITS OF THE NATIONAL ECONOMY

          1. 2.04. The units, whether institutional, local kind-of-activity or of homogeneous production,...

          2. 2.05. The term economic territory means:

          3. 2.06. The economic territory does not include extraterritorial enclaves (i.e. the...

          4. 2.07. The term centre of economic interest indicates the fact there...

          5. 2.08. On the basis of these definitions, units deemed to be...

          6. 2.09. In the case of units which are principally engaged in...

          7. 2.10. In the case of units which are principally engaged in...

          8. 2.11. All units in their capacity as owners of land and/or...

        5. THE INSTITUTIONAL UNITS

          1. 2.12. Definition: The institutional unit is an elementary economic decision-making centre...

          2. 2.13. The following principles apply whenever entities do not clearly possess...

          3. 2.14. Holding corporations are institutional units whose main function is to...

          4. 2.15. Notional resident units are defined as:

          5. 2.16. In conclusion, the following are deemed to be institutional units:...

        6. THE INSTITUTIONAL SECTORS

          1. 2.17. The need for aggregation means that it is impossible to...

          2. 2.18. Each of the sectors and subsectors groups together the institutional...

          3. 2.19. When the principal function of the institutional unit is to...

          4. 2.20. Table 2.2 shows the type of producer, the principal activities...

          5. NON-FINANCIAL CORPORATIONS (S.11)

            1. 2.21. Definition The sector non-financial corporations (S.11) consists of institutional units...

            2. 2.22. The sector non-financial corporations also includes non-financial quasi-corporations.

            3. 2.23. The term ‘non-financial corporations’ denotes all bodies recognized as independent...

            4. 2.24. The term ‘non-financial quasi-corporations’ denotes all bodies without independent legal...

            5. 2.25. The sector non-financial corporations also includes all notional resident units...

            6. 2.26. Control over a corporation is defined as the ability to...

            7. 2.27. The sector non-financial corporations is divided into three subsectors:

            8. Subsector: Public non-financial corporations (S.11001)

              1. 2.28. Definition: The sub-sector public non-financial corporations consists of all non-financial...

              2. 2.29. Public quasi-corporations are quasi-corporations owned directly by government units.

            9. Subsector: National private non-financial corporations (S.11002)

              1. 2.30. Definition: The subsector national private non-financial corporations consists of all...

            10. Subsector: Foreign controlled non-financial corporations (S.11003)

              1. 2.31. Definition: The subsector foreign controlled non-financial corporations consists of all...

          6. FINANCIAL CORPORATIONS (S.12)

            1. 2.32. Definition The sector financial corporations (S.12) consists of all corporations...

            2. 2.33. Through the financial intermediation process, funds are channelled between third...

            3. 2.34. In the financial intermediation process, all categories of liabilities may...

            4. 2.35. The primary function of insurance corporations and pension funds consists...

            5. 2.36. Mutual funds primarily incur liabilities through the issue of shares...

            6. 2.37. Financial intermediation, generally, is limited to financial transactions on the...

            7. 2.38. Exceptions to the general limitation of financial intermediation to financial...

            8. 2.39. Auxiliary financial activities comprise auxiliary activities for realizing transactions in...

            9. 2.40. The institutional units included in the sector financial corporations (S.12)...

            10. 2.41. The financial corporations sector is subdivided into five subsectors:

            11. 2.42. With the exception of subsector S.121, each subsector may be...

            12. 2.43. Holding corporations which only control and direct a group of...

            13. 2.44. Non-profit institutions recognized as independent legal entities serving financial corporations,...

            14. Subsector: The central bank (S.121)

              1. 2.45. Definition: The subsector the central bank (S.121) consists of all...

              2. 2.46. The following financial intermediaries are classified in subsector S.121:

              3. 2.47. Subsector S.121 does not include agencies and bodies, other than...

            15. Subsector: Other monetary financial institutions (S.122)

              1. 2.48. Definition: The subsector other monetary financial institutions (S.122) consists of...

              2. 2.49. The monetary financial institutions (MFIs) comprise the subsector the central...

              3. 2.50. MFIs cannot be described simply as ‘banks’, because they may...

              4. 2.51. The following financial intermediaries may also be classified in subsector...

              5. 2.52. Subsector S.122 does not include:

            16. Subsector: Other financial intermediaries, except insurance corporations and pension funds...

              1. 2.53. Definition: The subsector other financial intermediaries except insurance corporations and...

              2. 2.54. Subsector S.123 includes various types of financial intermediaries especially those...

              3. 2.55. In particular, the following financial corporations and quasi-corporations are classified...

              4. 2.56. Subsector S.123 does not include non-profit institutions recognized as independent...

            17. Subsector: Financial auxiliaries (S.124)

              1. 2.57. Definition: The subsector financial auxiliaries (S.124) consists of all financial...

              2. 2.58. In particular, the following financial corporations and quasi-corporations are classified...

              3. 2.59. Subsector S.124 does not include holding corporations which only control...

            18. Subsector: Insurance corporations and pension funds (S.125)

              1. 2.60. Definition: The subsector insurance corporations and pension funds (S.125) consists...

              2. 2.61. The insurance contracts administered might relate to individuals and/or groups,...

              3. 2.62. Subsector S.125 includes both captive insurance corporations and reinsurance corporations....

              4. 2.63. Subsector S.125 does not include:

              5. 2.64. The subsector insurance corporations and pension funds may be subdivided...

              6. 2.65. Risks concerning individuals or groups could both be included in...

              7. 2.66. Pension funds can be described as institutions which insure group...

              8. 2.67. In some countries all these types of risks could be...

          7. GENERAL GOVERNMENT (S.13)

            1. 2.68. Definition: The sector general government (S.13) includes all institutional units...

            2. 2.69. The institutional units included in sector S.13 are the following:...

            3. 2.70. The general government sector is divided into four subsectors:

            4. Subsector: Central government (S.1311)

              1. 2.71. Definition: The subsector central government includes all administrative departments of...

            5. Subsector: State government (S.1312)

              1. 2.72. Definition: The State government subsector consists of state governments which...

            6. Subsector: Local government (S.1313)

              1. 2.73. Definition: The subsector local government includes those types of public...

            7. Subsector: Social security funds (S.1314)

              1. 2.74. Definition: The subsector social security funds includes all central, State...

          8. HOUSEHOLDS (S.14)

            1. 2.75. Definition: The households sector (S.14) covers individuals or groups of...

            2. 2.76. The households sector includes:

            3. 2.77. The households sector is subdivided into six subsectors:

            4. 2.78. Households are allocated to subsectors according to the largest income...

            5. Subsector: Employers (including own-account workers) (S.141 + S.142)

              1. 2.79. Definition: The subsector employers (including own-account workers) consists of the...

            6. Subsector: Employees (S.143)

              1. 2.80. Definition: The subsector employees consists of the group of households...

            7. Subsector: Recipients of property incomes (S.1441)

              1. 2.81. Definition: The subsector recipients of property incomes consists of the...

            8. Subsector: Recipients of pensions (S.1442)

              1. 2.82. Definition: The subsector recipients of pensions consists of the group...

            9. Subsector: Recipients of other transfer incomes (S.1443)

              1. 2.83. Definition: The subsector recipients of other transfer incomes consists of...

            10. Subsector: Others (S.145)

              1. 2.84. Definition: The subsector others consists of persons living permanently in...

              2. 2.85. If the main income source of the household as a...

              3. 2.86. However, other criteria may be appropriate and needed for different...

          9. NON-PROFIT INSTITUTIONS SERVING HOUSEHOLDS (S.15)

            1. 2.87. Definition The sector non-profit institutions serving households (NPISHs) (S.15) consists...

            2. 2.88. Where these institutions are not very important, they are not...

          10. REST OF THE WORLD (S.2)

            1. 2.89. Definition The rest of the world (S.2) is a grouping...

            2. 2.90. The rest of the world is not a sector for...

            3. 2.91. It should be noted that the rule whereby the accounts...

            4. 2.92. The sector rest of the world (S.2) is subdivided into:...

          11. SECTOR CLASSIFICATION OF PRODUCER UNITS FOR MAIN STANDARD LEGAL FORMS...

            1. 2.93. The following overview and paragraphs 2.94 to 2.101 summarize the...

            2. 2.94. Private and public corporations which are market producers are classified...

            3. 2.95. Cooperatives and partnerships recognized as independent legal entities and which...

            5. 2.96. Public producers which by virtue of special legislation are recognized...

            6. 2.97. Public producers not recognized as independent legal entities and which...

            7. 2.98. Non-profit institutions (associations, foundations) recognized as independent legal entities are...

            8. 2.99. Sole proprietorships and partnerships not recognized as independent legal entities...

            9. 2.100. Holding corporations (i.e. corporations which direct a group of companies)...

            10. 2.101. Table 2.3 illustrates in schematic form the various cases which...

        7. LOCAL KIND-OF-ACTIVITY UNITS AND INDUSTRIES

          1. 2.102. In practice, most institutional units producing goods and services are...

          2. 2.103. An activity can be said to take place when resources...

          3. 2.104. If a unit carries out more than one activity, all...

          4. 2.105. In order to analyse flows occurring in the process of...

          5. THE LOCAL KIND-OF-ACTIVITY UNIT

            1. 2.106. Definition The local kind-of-activity unit (local KAU) is the part...

            2. 2.107. If an institutional unit producing goods and services contains a...

          6. THE INDUSTRY

            1. 2.108. Definition: An industry consists of a group of local KAUs...

            2. 2.109. Industries may be classified in three categories:

        8. CLASSIFICATION OF INDUSTRIES

          1. 2.110. The classification used for grouping local KAUs into industries is...

        9. UNITS OF HOMOGENEOUS PRODUCTION AND HOMOGENEOUS BRANCHES

          1. 2.111. The local KAU meets the requirements of production process analysis...

          2. THE UNIT OF HOMOGENEOUS PRODUCTION

            1. 2.112. Definition: The distinguishing feature of a unit of homogeneous production...

            2. 2.113. If a goods and services producing institutional unit carries out...

          3. THE HOMOGENEOUS BRANCH

            1. 2.114. Definition: The homogeneous branch consists of a grouping of units...

            2. 2.115. Homogeneous branches are units designed for economic analysis. Units of...

            3. 2.116. Homogeneous branches may be classified in three categories:

            4. 2.117. The homogeneous branches producing market goods and services and goods...

        10. THE CLASSIFICATION OF HOMOGENEOUS BRANCHES

          1. 2.118. The classification of homogeneous branches used in the input-output tables...

      3. CHAPTER 3 TRANSACTIONS IN PRODUCTS

        1. 3.01. Definition: Products are all goods and services that are created...

        2. 3.02. The following main categories of transactions in products are distinguished...

        3. 3.03. Transactions in products are recorded in the following accounts:

        4. 3.04. In the supply table, output and imports are recorded as...

        5. 3.05. Supplies of products are valued at basic prices (see paragraph...

        6. 3.06. Definition: At the time of purchase, the purchaser's price is...

        7. PRODUCTION AND OUTPUT

          1. 3.07. Definition: Production is an activity carried out under the control...

          2. 3.08. Production includes:

          3. 3.09. Production excludes the production of domestic and personal services that...

          4. PRINCIPAL, SECONDARY AND ANCILLARY ACTIVITIES

            1. 3.10. Definition: The principal activity of a local KAU is the...

            2. 3.11. Definition: A secondary activity is an activity carried out within...

            3. 3.12. Definition: The output of an ancillary activity is not intended...

            4. 3.13. Ancillary activities are treated as integral parts of the principal...

          5. OUTPUT (P.1)

            1. 3.14. Definition: Output consists of the products created during the accounting...

            2. 3.15. When an institutional unit contains more than one local KAU,...

            3. 3.16. Three types of output are distinguished in the ESA:

            4. 3.17. Definition: Market output consists of output that is disposed of...

            5. 3.18. Market output includes:

            6. 3.19. Definition: In the ESA, the economically significant price of a...

            7. 3.20. Definition: Output produced for own final use consists of goods...

            8. 3.21. Products retained for own final consumption can only be produced...

            9. 3.22. Products used for own gross fixed capital formation can be...

            10. 3.23. Definition: Other non-market output covers output that is provided free,...

            11. 3.24. Definition: Market producers are local KAUs or institutional units the...

            12. 3.25. Definition: Producers for own final use are local KAUs or...

            13. 3.26. Definition: Other non-market producers are local KAUs or institutional units...

            14. Institutional units: distinction between market, for own final use and...

              1. 3.27. For the institutional units as producers, the distinction between market,...

              2. 3.28. The first distinction is that between private and public producers....

              3. 3.29. As table 3.1 shows, private producers are found in all...

              4. 3.30. A specific category of private producers are the unincorporated enterprises...

              5. 3.31. For the other private producers, a distinction should be made...

              6. 3.32. In order to determine the type of producer and the...

              7. 3.33. In distinguishing market and other non-market producers by means of...

              8. 3.34. Sales may consist of various elements. For example, in case...

              9. 3.35. Private non-profit institutions serving businesses are a special case. They...

              10. 3.36. In applying the 50 % criterion to the sales and production...

              11. 3.37. Public producers can be market producers or other non-market producers....

            15. Local KAUs and their outputs: distinction between market, for own...

              1. 3.38. After having applied the distinction market, for own final use...

              2. 3.39. For institutional units qualifying as market producers, the principal local...

              3. 3.40. For institutional units that are other non-market producers, the principal...

              4. 3.41. After having applied the distinction market, for own final use...

              5. 3.42. By convention, local KAUs as market producers and as producers...

              6. 3.43. Local KAUs as other non-market producers can supply as secondary...

              7. 3.44. In statistical practice, it may be difficult to make a...

              8. 3.45. Other non-market producers may also have revenues from the sale...

          6. TIME OF RECORDING AND VALUATION OF OUTPUT

            1. 3.46. Output is to be recorded and valued when it is...

            2. 3.47. All output is to be valued at basic prices, but...

            3. 3.48. Definition: The basic price is the price receivable by the...

            4. 3.49. Output for own final use (P.12) is to be valued...

            5. 3.50. Additions to work-in-progress are valued in proportion to the estimated...

            6. 3.51. If the value of output treated as work-in-progress is to...

            7. 3.52. For buildings and structures acquired in an incomplete state, a...

            8. 3.53. The total output of an other non-market producer (a local...

            9. 3.54. The total output of an institutional unit is the sum...

            10. 3.55. In the absence of secondary market output by other non-market...

            11. 3.56. In principle, market output by other non-market producers is to...

            12. 3.57. For some specific types of output, the times of recording...

            13. 3.58 A. Products of agriculture, hunting and forestry;

            14. 3.59. D. Manufactured products;

            15. 3.60. G. Wholesale and retail trade services; repair services of motor...

            16. 3.61. H. Hotel and restaurant services

            17. 3.62. I. Transport, storage and communication services

            18. 3.63. J. Financial intermediation services (this includes insurance services and pension...

            19. 3.64. K. Real estate, renting and business services

            20. 3.65. L. Public administration and defence services, compulsory social security services...

            21. 3.66. M. Education services;

            22. 3.67. O. Other community, social and personal services

            23. 3.68. P. Private housholds with employed persons

        8. INTERMEDIATE CONSUMPTION (P.2)

          1. 3.69. Definition: Intermediate consumption consists of the value of the goods...

          2. 3.70. Intermediate consumption includes the following borderline cases:

          3. 3.71. Intermediate consumption excludes:

          4. TIME OF RECORDING AND VALUATION OF INTERMEDIATE CONSUMPTION

            1. 3.72. Products used for intermediate consumption should be recorded and valued...

            2. 3.73. In practice, producer units do not usually record the actual...

        9. FINAL CONSUMPTION (P.3, P.4)

          1. 3.74. Two concepts of final consumption are used:

          2. FINAL CONSUMPTION EXPENDITURE (P.3)

            1. 3.75. Definition: Final consumption expenditure consists of expenditure incurred by resident...

            2. 3.76. Household final consumption expenditure includes the following borderline cases:

            3. 3.77. Household final consumption expenditure excludes:

            4. 3.78. Final consumption expenditure of NPISHs includes two separate categories:

            5. 3.79. Final consumption expenditure (P.3) by government includes two categories of...

            6. 3.80. Corporations do not make final consumption expenditures. Their purchases of...

          3. ACTUAL FINAL CONSUMPTION (P.4)

            1. 3.81. Definition: Actual final consumption consists of the goods or services...

            2. 3.82. Definition: Goods and services for individual consumption (‘individual goods and...

            3. 3.83. Definition: Services for collective consumption (‘collective services’) are provided simultaneously...

            4. 3.84. All household final consumption expenditure is individual. By convention, all...

            5. 3.85. For the goods and services provided by government units, the...

            6. 3.86. The relationships between the various concepts employed can be shown...

            7. 3.87. Final consumption expenditure of NPISHs is by convention all individual....

            8. 3.88. By convention, there are no social transfers in kind with...

          4. TIME OF RECORDING AND VALUATION OF FINAL CONSUMPTION EXPENDITURE

            1. 3.89. As explained in chapter 1, goods and services should in...

            2. 3.90. Expenditure on a good acquired under a hire purchase or...

            3. 3.91. Own-account consumption should be recorded when the output retained for...

            4. 3.92. The final consumption expenditure of households is recorded at purchasers'...

            5. 3.93. Goods and services supplied as compensation of employees in kind...

            6. 3.94. Retained goods or services for own consumption are valued at...

            7. 3.95. Final consumption expenditures by general government or NPISHs on products...

            8. 3.96. Final consumption expenditure (P.3) by general government or NPISHs are...

          5. TIME OF RECORDING AND VALUATION OF ACTUAL FINAL CONSUMPTION

            1. 3.97. Goods and services are acquired by institutional units when they...

            2. 3.98. Acquisitions (actual final consumption) are valued at the purchasers' prices...

            3. 3.99. The values of the two aggregates of final consumption expenditure...

        10. GROSS CAPITAL FORMATION (P.5)

          1. 3.100. Gross capital formation consists of:

          2. 3.101. Gross capital formation means gross of consumption of fixed capital....

          3. GROSS FIXED CAPITAL FORMATION (P.51)

            1. 3.102. Definition: Gross fixed capital formation (P.51) consists of resident producers'...

            2. 3.103. Gross fixed capital formation consists of both positive and negative...

            3. 3.104. The disposals components of fixed assets exclude:

            4. 3.105. The following types of gross fixed capital formation may be...

            5. 3.106. Major improvements to land include:

            6. 3.107. Gross fixed capital formation includes borderline cases like:

            7. 3.108. Gross fixed capital formation excludes:

            8. 3.109. Gross fixed capital formation in the form of improvements to...

            9. 3.110. Intangible fixed assets typically consist of new information, specialized knowledge,...

            10. 3.111. For both fixed assets and non-produced non-financial assets, the costs...

          4. TIME OF RECORDING AND VALUATION OF GROSS FIXED CAPITAL FORMATION...

            1. 3.112. Gross fixed capital formation is recorded when the ownership of...

            2. 3.113. Gross fixed capital formation is valued at purchasers' prices including...

            3. 3.114. Acquisitions of intangible fixed assets are valued in different ways:...

            4. 3.115. Disposals of existing fixed assets by sale are valued at...

            5. 3.116. Costs of ownership transfer can apply to both produced assets,...

          5. CHANGES IN INVENTORIES (P.52)

            1. 3.117. Definition: Changes in inventories are measured by the value of...

            2. 3.118. Due to physical deterioration, or accidental damage or pilfering, recurrent...

            3. 3.119. Inventories consists of the following categories:

          6. TIME OF RECORDING AND VALUATION OF CHANGES IN INVENTORIES

            1. 3.120. The time of recording and valuation of changes in inventories...

            2. 3.121. Changes in inventories should be valued at the time of...

            3. 3.122. The prices used should be consistent with those of other...

            4. 3.123. Losses as a result of physical deterioration, insurable accidental damage...

            5. 3.124. The previous paragraphs have described the conceptually correct valuation of...

          7. ACQUISITIONS LESS DISPOSALS OF VALUABLES (P.53)

            1. 3.125. Definition: Valuables are non-financial goods that are not used primarily...

            2. 3.126. Valuables encompass the following types of goods:

            3. 3.127. The production of valuables is valued at basic prices (see...

        11. IMPORTS AND EXPORTS OF GOODS AND SERVICES (P.6 and P.7)...

          1. 3.128. Definition: Exports of goods and services consist of transctions in...

          2. 3.129. Definition: Imports of goods and services consist of transactions in...

          3. 3.130. Imports and exports of goods and services do not include:...

          4. 3.131. Imports and exports of goods and services should be distinguished...

          5. IMPORTS AND EXPORTS OF GOODS (P.61 and P.71)

            1. 3.132. Imports and exports of goods occur when there are changes...

            2. 3.133. However, in four instances the change of ownership principle is...

            3. 3.134. In the following cases exports of goods occur without the...

            4. 3.135. Imports and exports of goods include transactions between residents and...

            5. 3.136. Imports and exports of goods exclude the following goods which...

            6. 3.137. In principle, imports and exports of goods should be recorded...

            7. 3.138. Imports and exports of goods are to be valued free...

            8. 3.139. Proxies or substitute measures for the fob value may be...

          6. IMPORTS AND EXPORTS OF SERVICES (P.62 and P.72)

            1. 3.140. Definition: Exports of services consist of all services rendered by...

            2. 3.141. Definition: Imports of services consist of all services rendered by...

            3. 3.142. Exports of services include the following borderline cases:

            4. 3.143. For imports of services most borderline cases are the mirror-image...

            5. 3.144. Imports of transport services include the following borderline cases:

            6. 3.145. Imports in respect of direct purchases abroad by residents cover...

            7. 3.146. Imports and exports of services are recorded at the time...

              1. Table 3.4 — The treatment of transportation of exported goods...

              2. Table 3.5 — The treatment of transportation of imported goods...

        12. TRANSACTIONS IN EXISTING GOODS

          1. 3.147. Definition: Existing goods are goods that already have had a...

          2. 3.148. Existing goods include:

          3. 3.149. The transfer of existing goods is recorded as a negative...

          4. 3.150. This has the following consequences:

          5. 3.151. For the selling costs incurred by the former owner (costs...

          6. 3.152. Transactions in existing goods should be recorded at the time...

      4. CHAPTER 4 DISTRIBUTIVE TRANSACTIONS

        1. 4.01. Definition: Distributive transactions consist of transactions by means of which...

        2. COMPENSATION OF EMPLOYEES (D.1)

          1. 4.02. Definition: Compensation of employees (D.1) is defined as the total...

          2. WAGES AND SALARIES (D.11)

            1. Wages and salaries in cash

              1. 4.03. Wages and salaries in cash include the values of any...

            2. Wages and salaries in kind

              1. 4.04. Definition: Wages and salaries in kind consist of good and...

              2. 4.05. The most common are:

              3. 4.06. Goods and services, or other advantages, should be valued at...

              4. 4.07. Wages and salaries do not include:

          3. EMPLOYERS' SOCIAL CONTRIBUTIONS (D.12)

            1. 4.08. An amount equal to the value of the social contributions...

            2. Employers' actual social contributions (D.121)

              1. 4.09. Definition: Employers' actual social contributions (D.121) consist of the payments...

            3. Employers' imputed social contributions (D.122)

              1. 4.10. Definition Employers' imputed social contributions (D.122) represent the counterpart to...

              2. 4.11. In the accounts of the sectors, the costs of direct...

              3. 4.12. Time of recording of compensation of employees:

              4. 4.13. The compensation of employees may consist of:

        3. TAXES ON PRODUCTION AND IMPORTS (D.2)

          1. 4.14. Definition: Taxes on production and imports (D.2) consist of compulsory,...

          2. 4.15. Taxes on production and imports are divided into:

          3. TAXES ON PRODUCTS (D.21)

            1. 4.16. Definition: Taxes on products (D.21) are taxes that are payable...

            2. Value-added type taxes (VAT) (D.211)

              1. 4.17. Definition: A value-added type tax (VAT) is a tax on...

            3. Taxes and duties on imports excluding VAT (D.212)

              1. 4.18. Definition: Taxes and duties on imports excluding VAT (D.212) comprise...

            4. Taxes on products, except VAT and import taxes (D.214)

              1. 4.19. Definition: Taxes on products, except VAT and import taxes (D.214)...

              2. 4.20. This heading includes, in particular:

              3. 4.21. Net taxes on products are obtained by deducting subsidies on...

          4. OTHER TAXES ON PRODUCTION (D.29)

            1. 4.22. Definition: Other taxes on production (D.29) consist of all taxes...

            2. 4.23. Other taxes on production (D.29) include in particular:

            3. 4.24. This heading excludes taxes on the personal use of vehicles...

          5. TAXES ON PRODUCTION AND IMPORTS PAID TO THE INSTITUTIONS OF...

            1. 4.25. The taxes on production and imports paid to the institutions...

            2. 4.26. Recording of taxes on production and imports: taxes on production...

            3. 4.27. However, some economic activities, transactions or events, which under tax...

            4. 4.28. The total value of the taxes which should be recorded...

            5. 4.29. In the system of accounts, taxes on production and imports...

        4. SUBSIDIES (D.3)

          1. 4.30. Definition Subsidies (D.3) are current unrequited payments which general government...

          2. 4.31. Subsidies granted by the institutions of the European Union cover...

          3. 4.32. Subsidies are classified into:

          4. SUBSIDIES ON PRODUCTS (D.31)

            1. 4.33. Definition: Subsidies on products (D.31) are subsidies payable per unit...

            2. Import subsidies (D.311)

              1. 4.34. Definition: Import subsidies (D.311) consist of subsidies on goods and...

            3. Other subsidies on products (D.319)

              1. 4.35. Other subsidies on products (D.319) include:

          5. OTHER SUBSIDIES ON PRODUCTION (D.39)

            1. 4.36. Definition: Other subsidies on production (D.39) consist of subsidies except...

            2. 4.37. This heading includes in particular:

            3. 4.38. The following are not treated as subsidies:

            4. 4.39. Time of recording: Subsidies are recorded when the transaction or...

            5. 4.40. In the system of accounts, subsidies appear:

        5. PROPERTY INCOME (D.4)

          1. 4.41. Definition: Property income (D.4) is the income receivable by the...

          2. INTEREST (D.41)

            1. 4.42. Definition: Under the terms of the financial instrument agreed between...

            2. 4.43. Creditors lend funds to debtors that lead to creation of...

            3. Interest on deposits, loans and accounts receivable and payable

              1. 4.44. The interest receivable and payable on these financial assets and...

            4. Interest on securities

              1. Interest on bills and similar short-term instruments

                1. 4.45. The difference between the face value and the price paid...

              2. Interest on bonds and debentures

                1. 4.46. Bonds and debentures are long-term securities that give the holder...

            5. Interest rate swaps and forward rate agreements

              1. 4.47. No payment resulting from any kind of swap arrangement is...

            6. Interest on financial leases

              1. 4.48. A financial lease is an alternative to lending as a...

            7. Other interest

              1. 4.49. The following are also treated as interest:

            8. Time of recording

              1. 4.50. Interest is recorded on an accrual basis: that is, interest...

              2. 4.51. Interest is to be recorded before the deduction of any...

              3. 4.52. In the system of accounts, interest is shown:

          3. DISTRIBUTED INCOME OF CORPORATIONS (D.42)

            1. Dividends (D.421)

              1. 4.53. Definition: Dividends (D.421) are a form of property income received...

              2. 4.54. This heading also includes:

              3. 4.55. Time of recording: dividends are recorded at the time they...

            2. Withdrawals from the income of quasi-corporations (D.422)

              1. 4.56. Definition: Withdrawals from the income of quasi-corporations (D.422) consist of...

              2. 4.57. These amounts are to be recorded before the deduction of...

              3. 4.58. When a quasi-corporation makes a trading profit, the unit which...

              4. 4.59. When profits are earned in the rest of the world...

              5. 4.60. This heading includes the net operating surplus received by residents...

              6. 4.61. The heading withdrawals from the income of quasi-corporations does not...

              7. 4.62. Time of recording: withdrawals from the income of quasi-corporations are...

              8. 4.63. In the system of accounts, withdrawals from the income of...

          4. REINVESTED EARNINGS ON DIRECT FOREIGN INVESTMENT (D.43)

            1. 4.64. Definition: Reinvested earnings on direct foreign investment (D.43) are equal...

            2. 4.65. A direct foreign investment enterprise is an incorporated or unincorporated...

            3. 4.66. Actual distributions may be made out of the entrepreneurial income...

            4. 4.67. Time of recording: reinvested earnings on direct foreign investment are...

          5. PROPERTY INCOME ATTRIBUTED TO INSURANCE POLICY HOLDERS (D.44)

            1. 4.68. Definition: Property income attributed to insurance policy holders corresponds to...

            2. 4.69. Since technical reserves are assets of insurance policy holders, the...

            3. 4.70. Time of recording: property income attributed to insurance policy holders...

            4. 4.71. In the system of accounts, the property income attributed to...

          6. RENTS (D.45)

            1. Rents on land

              1. 4.72. The rent received by a landowner from a tenant constitutes...

              2. 4.73. Rents on land do not include the rentals of buildings...

            2. Rents on sub-soil assets

              1. 4.74. This heading includes the royalties that accrue to owners of...

              2. 4.75. Time of recording of rents: rents are recorded in the...

              3. 4.76. In the system of accounts, rents are recorded:

        6. CURRENT TAXES ON INCOME, WEALTH, ETC. (D.5)

          1. 4.77. Definition: Current taxes on income, wealth, etc. (D.5) cover all...

          2. TAXES ON INCOME (D.51)

            1. 4.78. Definition: Taxes on income (D.51) consist of taxes on incomes,...

          3. OTHER CURRENT TAXES (D.59)

            1. 4.79. Other current taxes (D.59) include:

            2. 4.80. Current taxes on income, wealth, etc. do not include:

            3. 4.81. The total value of the taxes which should be recorded...

            4. 4.82. Recording of current taxes on income, wealth, etc.: current taxes...

        7. SOCIAL CONTRIBUTIONS AND BENEFITS (D.6)

          1. 4.83. Definition: Social benefits are transfers to households, in cash or...

          2. 4.84. The list of risks or needs which may give rise...

          3. 4.85. Social benefits include:

          4. 4.86. Social benefits exclude:

          5. 4.87. In order for an individual policy to be treated as...

          6. 4.88. Social insurance schemes are schemes in which workers are obliged,...

          7. 4.89. Social insurance schemes organized by government units for their own...

          8. 4.90. Social contributions may be divided into actual contributions payable under...

          9. 4.91. Social contributions may be divided into those that are compulsory...

          10. SOCIAL CONTRIBUTIONS (D.61)

            1. Actual social contributions (D.611)

              1. 4.92. Actual social contributions include:

              2. 4.93. Payments of actual social contributions may be compulsory by virtue...

              3. 4.94. To distinguish between social contributions that are compulsory and those...

              4. 4.95. Actual social contributions to social security funds or other government...

              5. 4.96. Time of recording: employers' actual social contributions (D.6111) and employees'...

              6. 4.97. In the system of accounts, actual social contributions are recorded:...

            2. Imputed social contributions (D.612)

              1. 4.98. Imputed social contributions (D.612) represent the counterpart to social benefits...

              2. 4.99. It is necessary to introduce imputed social contributions if the...

              3. 4.100. Employers are recorded, in the generation of income account, as...

              4. 4.101. Time of recording: imputed social contributions which represent the counterpart...

              5. 4.102. In the system of accounts, imputed social contributions are recorded:...

          11. SOCIAL BENEFITS OTHER THAN SOCIAL TRANSFERS IN KIND (D.62)

            1. 4.103. The heading D.62 is made up of four sub-headings:

            2. Social security benefits in cash (D.621)

            3. Private funded social benefits (D.622)

            4. Unfunded employee social benefits (D.623)

            5. Social assistance benefits in cash (D.624)

          12. SOCIAL TRANSFERS IN KIND (D.63)

            1. 4.104. Definition: Social transfers in kind (D.63) consist of individual goods...

            2. Social benefits in kind (D.631)

              1. 4.105. Social benefits in kind are social transfers in kind intended...

              2. Social security benefits, reimbursements (D.6311)

              3. Other social security benefits in kind (D.6312)

              4. Social assistance benefits in kind (D.6313)

            3. Transfers of individual non-market goods or services (D.632)

              1. 4.106. Definition: Transfers of individual non-market goods or services (D.632) consist...

              2. 4.107. Time of recording of social benefits:

              3. 4.108. In the system of accounts, social benefits other than social...

        8. OTHER CURRENT TRANSFERS (D.7)

          1. NET NON-LIFE INSURANCE PREMIUMS (D.71)

            1. 4.109. Definition Net non-life insurance premiums (D.71) are premiums payable under...

            2. 4.110. Time of recording: net non-life insurance premiums are recorded when...

            3. 4.111. In the system of accounts net non-life insurance premiums are...

          2. NON-LIFE INSURANCE CLAIMS (D.72)

            1. 4.112. Definition Non-life insurance claims (D.72) represent the claims due under...

            2. 4.113. Non-life insurance claims do not include payments which constitute social...

            3. 4.114. As the service charges on non-life insurance are calculated by...

            4. 4.115. Time of recording: non-life insurance claims are recorded at the...

            5. 4.116. In the system of accounts, they are recorded:

          3. CURRENT TRANSFERS WITHIN GENERAL GOVERNMENT (D.73)

            1. 4.117. Definition: Current transfers within general government (D.73) include transfers between...

            2. 4.118. Current transfers within general government do not include transactions on...

            3. 4.119. Time of recording: Current transfers within general government are recorded...

            4. 4.120. In the system of accounts, current transfers within general government...

          4. CURRENT INTERNATIONAL COOPERATION (D.74)

            1. 4.121. Definition Current international cooperation (D.74) includes all transfers in cash...

            2. 4.122. Heading D.74 covers:

            3. 4.123. Time of recording: the time the regulations in force stipulate...

            4. 4.124. In the system of accounts, current international cooperation is recorded:...

          5. MISCELLANEOUS CURRENT TRANSFERS (D.75)

            1. Current transfers to NPISHs

              1. 4.125. Current transfers to NPISHs include all voluntary contributions (other than...

              2. 4.126. The following are included:

              3. 4.127. Time of recording: current transfers to NPISHs are recorded at...

              4. 4.128. In the system of accounts, current transfers to NPISHs are...

            2. Current transfers between households

              1. 4.129. Definition: Current transfer between households consist of all current transfers...

              2. 4.130. Time of recording: the time the transfers occur.

              3. 4.131. In the system of accounts, current transfers between households are...

            3. Fines and penalties

              1. 4.132. Definition: Fines and penalties imposed on institutional units by courts...

              2. 4.133. Not included under this heading are:

              3. 4.134. Time of recording: fines and penalties are recorded at the...

            4. Lotteries and gambling

              1. 4.135. The amounts paid for lottery tickets or placed in bets...

            5. Payments of compensation

              1. 4.136. Definition: Payments of compensation consist of current transfers paid by...

              2. 4.137. Time of recording: payments of compensation are recorded when they...

            6. GNP-based fourth own resource

              1. 4.138. The ‘GNP-based fourth own resource’ created by the Council Decision...

            7. Other

              1. 4.139. Current transfers from NPISHs to general government which are not...

              2. 4.140. Time of recording: these transfers are recorded when they are...

        9. ADJUSTMENT FOR THE CHANGE IN THE NET EQUITY OF HOUSEHOLDS...

          1. 4.141. Definition: The adjustment for the change in the net equity...

          2. 4.142. Since households are treated in the financial accounts and balance...

          3. 4.143. Time of recording: the adjustment is recorded according to the...

          4. 4.144. In the system of accounts, the adjustment for the change...

        10. CAPITAL TRANSFERS (D.9)

          1. 4.145. Capital transfers are different from current transfers by the fact...

          2. 4.146. A capital transfer in kind consists of the transfer of...

          3. 4.147. Capital transfers cover capital taxes (D.91), investment grants (D.92) and...

          4. CAPITAL TAXES (D.91)

            1. 4.148. Definition: Capital taxes (D.91) consist of taxes levied at irregular...

            2. 4.149. Capital taxes include:

            3. 4.150. Taxes recorded in the accounts may be derived from two...

            4. 4.151. In the system of accounts, capital taxes are recorded:

          5. INVESTMENT GRANTS (D.92)

            1. 4.152. Definition Investment grants (D.92) consist of capital transfers in cash...

            2. 4.153. Investment grants can be made in cash or in kind....

            3. 4.154. Investment grants do not include transfers of military equipment in...

            4. 4.155. The value of capital formation carried out by general government...

            5. 4.156. Heading D.92 includes not only single non-recurrent payments designed to...

            6. 4.157. Investment grants to the sector non-financial corporate and quasi-corporate enterprises...

            7. 4.158. Investment grants to the households sector include equipment and modernization...

            8. 4.159. Investment grants to general government include all payments (except grants...

            9. 4.160. Investment grants to non-profit institutions from general government and from...

            10. 4.161. Investment grants to the rest of the world should also...

            11. 4.162. Time of recording: investment grants in cash are recorded when...

            12. 4.163. In the system of accounts, investment grants are recorded:

          6. OTHER CAPITAL TRANSFERS (D.99)

            1. 4.164. Definition: Other capital transfers (D.99) cover transfers other than investment...

            2. 4.165. Other capital transfers include the following transactions:

            3. 4.166. Time of recording:

            4. 4.167. In the system of accounts, other capital transfers are shown...

      5. CHAPTER 5 FINANCIAL TRANSACTIONS

        1. 5.01. Definition: Financial transactions are transactions in financial assets and liabilities...

        2. 5.02. Considering the definition of a transaction (see paragraph 1.33), a...

        3. 5.03. Financial assets are economic assets, comprising means of payment, financial...

        4. 5.04. Means of payment consist of monetary gold, special drawing rights,...

        5. 5.05. Contingent assets are contractual arrangements between institutional units, and between...

        6. 5.06. Seven categories of financial assets are distinguished: monetary gold and...

        7. 5.07. In the system, each financial asset has a counterpart liability,...

        8. 5.08. The classification of financial transactions corresponds to the classification of...

        9. 5.09. The financial assets held and the liabilities outstanding at a...

        10. 5.10. Financial transactions between institutional units are recorded in the financial...

        11. 5.11. The financial account of a sector may be consolidated or...

        12. 5.12. A financial transaction between two institutional units increases net lending/net...

        13. 5.13. The financial account by debtor/creditor (of a sector or the...

        14. 5.14. The financial account is the final account, in the full...

        15. 5.15. Financial transactions always have counterpart transactions in the system. Those...

        16. 5.16. The counterpart transaction of a financial transaction may be a...

        17. 5.17. The counterpart transaction of a financial transaction may be interest...

        18. 5.18. The counterpart transaction of a financial transaction may be property...

        19. CLASSIFICATION OF FINANCIAL TRANSACTIONS

          1. 5.19. The financial transactions are classified in categories subdivided into sub-categories...

          2. 5.20. The classification of financial transactions and of financial assets and...

          3. 5.21. Analyses of the monetary policy transmission channels may require to...

          4. 5.22. Innovations in financial markets have diminished the usefulness of a...

          5. 5.23. Many of the categories, sub-categories and sub-positions of the financial...

          6. MONETARY GOLD AND SPECIAL DRAWING RIGHTS (SDRs) (F.1)

            1. 5.24. Category F.1 consists of two sub-categories of financial transactions:

            2. 5.25. The financial assets classified in the category monetary gold and...

            3. Monetary gold (F.11)

              1. 5.26. Definition: The sub-category monetary gold (F.11) consists of all transactions...

              2. 5.27. The monetary authorities sector, which is based on a functional...

              3. 5.28. Monetary gold normally takes the form of bars with a...

              4. 5.29. Transactions in monetary gold consist predominantly of sales and purchases...

              5. 5.30. Transactions in non-monetary gold, that is in gold other than...

              6. 5.31. If monetary authorities add non-monetary gold to their holdings of...

              7. 5.32. Deposits, securities and loans denominated in gold are treated as...

            4. Special drawing rights (SDRs) (F.12)

              1. 5.33. Definition: The sub-category special drawing rights (SDRs) (F.12) consists of...

              2. 5.34. SDRs are not considered liabilities of the IMF, and IMF...

              3. 5.35. Changes in SDRs held by a monetary authority can arise...

          7. CURRENCY AND DEPOSITS (F.2)

            1. 5.36. Definition: The category currency and deposits (F.2) consists of all...

            2. 5.37. Category F.2 is divided into three sub-categories of financial transactions:...

            3. Currency (F.21)

              1. 5.38. Definition: The sub-category currency (F.21) consists of all transactions in...

              2. 5.39. Sub-category AF.21 includes:

              3. 5.40. Sub-category AF.21 does not include:

              4. 5.41. All sectors and the rest of the world may hold...

            4. Transferable deposits (F.22)

              1. 5.42. Definition: The sub-category transferable deposits (F.22) consists of all transactions...

              2. 5.43. Sub-category AF.22 includes transferable deposits with resident and non-resident monetary...

              3. 5.44. All sectors and the rest of the world may hold...

            5. Other deposits (F.29)

              1. 5.45. Definition: The sub-category other deposits (F.29) consists of all transactions...

              2. 5.46. Sub-category AF.29 includes:

              3. 5.47. Sub-category AF.29 does not include negotiable certificates of deposit and...

              4. 5.48. Sub-category AF.29 includes further:

              5. 5.49. All sectors and the rest of the world may hold...

          8. SECURITIES OTHER THAN SHARES (F.3)

            1. 5.50. Definition: The category securities other than shares (F.3) consists of...

            2. 5.51. Category AF.3 covers financial assets which are typically represented by...

            3. 5.52. All sectors and the rest of the world may hold...

            4. 5.53. Category F.3 is divided into two sub-categories of financial transaction:...

            5. Securities other than shares, excluding financial derivatives (F.33)

              1. 5.54. Definition: The sub-category securities other than shares excluding financial derivatives...

              2. 5.55. Sub-category F.33 may be divided, when relevant, into two sub-positions...

              3. Short-term securities other than shares, excluding financial derivatives (F.331)

                1. 5.56. Definition: The sub-position short-term securities other than shares excluding financial...

                2. 5.57. Short-term securities other than financial derivatives are generally issued at...

                3. 5.58. Sub-position AF.331 includes:

                4. 5.59. Sub-position AF.331 does not include securities whose negotiability, while theoretically...

              4. Long-term securities other than shares, excluding financial derivatives (F.332)

                1. 5.60. Definition: The sub-position long-term securities other than shares excluding financial...

                2. 5.61. Long-term securities are generally issued with coupons.

                3. 5.62. Sub-position AF.332 includes:

                4. 5.63. Sub-position AF.332 includes further financial assets issued as part of...

                5. 5.64. Sub-position F.332 does not include:

            6. Financial derivatives (F.34)

              1. 5.65. Definition: The sub-category financial derivatives (F.34) consists of all transactions...

              2. 5.66. Financial derivatives are also referred to as secondary instruments and...

              3. 5.67. Sub-category AF.34 includes:

              4. 5.68. Sub-category AF.34 does not include:

          9. LOANS (F.4)

            1. 5.69. Definition: The category loans (F.4) consists of all transactions in...

            2. 5.70. Generally loans are characterized by the following features:

            3. 5.71. Category F.4 may be divided, when relevant, into two sub-categories...

            4. Short-term loans (F.41)

              1. 5.72. Definition: The sub-category short-term loans (F.41) consists of all transactions...

            5. Long-term loans (F.42)

              1. 5.73. Definition: The sub-category long-term loans (F.42) consists of all transactions...

              2. 5.74. The distinction between transactions in loans (F.4) and transactions in...

              3. 5.75. By convention, short-term loans granted to monetary financial institutions, resident...

              4. 5.76. It might be useful analytically to allow for exceptions to...

              5. 5.77. The distinction between transactions in loans (F.4) and transactions in...

              6. 5.78. Security issues consist of a large number of identical documents,...

              7. 5.79. Secondary trade in loans exists. However, individual loans are only...

              8. 5.80. Standard loans are offered in most cases by financial corporations...

              9. 5.81. Category AF.4 includes:

              10. 5.82. Category AF.4 includes further:

              11. 5.83. Category AF.4 does not include:

              12. 5.84. Loans may be financial assets or liabilities of all sectors...

              13. 5.85. The sub-categories short-term loans and long-term loans are not divided...

          10. SHARES AND OTHER EQUITY (F.5)

            1. 5.86. Definition The category shares and other equity (F.5) consists of...

            2. 5.87. Category F.5 is divided into two sub-categories of financial transactions:...

            3. Shares and other equity, excluding mutual funds shares (F.51)

              1. 5.88. Definition: The sub-category shares and other equity excluding mutual funds...

              2. 5.89. Sub-category F.51 may be divided, when relevant, into three sub-positions...

              3. Quoted shares, excluding mutual funds shares (F.511), and unquoted shares,...

                1. 5.90. Definition: The sub-position quoted shares excluding mutual funds shares (F.511)...

                2. 5.91. Sub-positions AF.511 and AF.512 include:

                3. 5.92. Sub-positions AF.511 and AF.512 do not include:

                4. 5.93. Sub-positions F.511 and F.512 do not include issues of bonus...

              4. Other equity (F.513)

                1. 5.94. Definition: The sub-position other equity (F.513) consists of all transactions...

                2. 5.95. Sub-position AF.513 includes:

            4. Mutual funds shares (F.52)

              1. 5.96. Definition: The sub-category mutual funds shares (F.52) consists of all...

              2. 5.97. Sub-category AF.52 includes the shares issued by financial corporations called,...

          11. INSURANCE TECHNICAL RESERVES (F.6)

            1. 5.98. Definition The category insurance technical reserves (F.6) consists of all...

            2. 5.99. Category AF.6 covers:

            3. 5.100. Insurance technical reserves are financial assets:

            4. 5.101. Insurance technical reserves are liabilities:

            5. 5.102. Category AF.6 does not include provisions established by institutional units...

            6. 5.103. Category F.6 is divided into two sub-categories of financial transactions:...

            7. Net equity of households in life insurance reserves and in...

              1. 5.104. Definition: The sub-category net equity of households in life insurance...

              2. 5.105. Sub-category F.61 is divided into two sub-positions of financial transactions:...

              3. Net equity of households in life insurance reserves (F.611)

                1. 5.106. Definition: The sub-position net equity of households in life insurance...

                2. 5.107. Sub-position AF.611 includes life insurance provisions, provisions for bonuses and...

                3. 5.108. Transactions in net equity of households in life insurance reserves...

                4. 5.109. Life insurance reserves are financial assets of resident or non-resident...

              4. Net equity of households in pension funds reserves (F.612)

                1. 5.110. Definition: The sub-position net equity of households in pension funds...

                2. 5.111. Transaction in net equity of households in pension funds reserves...

                3. 5.112. Transactions in net equity of households in pension funds reserves...

                4. 5.113. Pension funds reserves are financial assets of resident or non-resident...

            8. Prepayments of insurance premiums and reserves for outstanding claims (F.62)...

              1. 5.114. Definition: The sub-category prepayments of insurance premiums and reserves for...

              2. 5.115. Prepayments of insurance premiums result from the fact that insurance...

              3. 5.116. The prepayments of insurance premiums are financial assets of the...

              4. 5.117. Reserves for outstanding claims are held by insurance corporations in...

              5. 5.118. Reserves for outstanding claims are financial assets of the beneficiaries...

              6. 5.119. Sub-category AF.62 includes provisions for unearned premiums, other technical provisions,...

          12. OTHER ACCOUNTS RECEIVABLE/PAYABLE (F.7)

            1. 5.120. Definition: The category other accounts receivable/payable (F.7) consists of all...

            2. 5.121. Category F.7 includes transactions in financial claims which stem from...

            3. 5.122. Category F.7 does not include:

            4. 5.123. Category F.7 is divided into two sub-categories of financial transactions:...

            5. Trade credits and advances (F.71)

              1. 5.124. Definition: The sub-category trade credits and advances (F.71) consists of...

              2. 5.125. Sub-category AF.71 includes:

              3. 5.126. Sub-category AF.71 does not include loans to finance trade credits....

              4. 5.127. Trade credits and advances may be financial assets or liabilities...

            6. Other accounts receivable/payable, excluding trade credits and advances (F.79)

              1. 5.128. Definition: The sub-category other accounts receivable/payable excluding trade credits and...

              2. 5.129. Sub-category AF.79 includes financial claims created as a result of...

              3. 5.130. Preferably, the counterpart financial transaction of interest accruing on financial...

              4. 5.131. At the date due for payment of interest, two financial...

          13. MEMORANDUM ITEM: DIRECT FOREIGN INVESTMENT (F.m)

            1. 5.132. Definition Direct foreign in vestment (F.m) consists of all transactions...

            2. 5.133. Transactions in financial assets and liabilities that constitute direct foreign...

        20. ACCOUNTING RULES FOR FINANCIAL TRANSACTIONS

          1. VALUATION

            1. 5.134. Financial transactions are recorded at the transaction values, that is,...

            2. 5.135. Financial transactions and their financial or non-financial counterpart transactions are...

            3. 5.136. The transaction value refers to a specific financial transaction and...

            4. 5.137. The transaction value does not include service charges, fees, commissions,...

            5. Special valuation criteria for some sub-categories of financial transactions

              1. 5.138. Securities other than shares, excluding financial derivatives (F.33)

              2. 5.139. Financial derivatives (F.34)

              3. 5.140. Shares and other equity, excluding mutual funds shares (F.51)

              4. 5.141. Mutual funds shares (F.52)

          2. TIME OF RECORDING

            1. 5.142. Financial transactions and their counterpart transactions are to be recorded...

            2. 5.143. When the counterpart of a financial transaction is a non-financial...

            3. 5.144. When the counterpart of a financial transaction is also a...

          3. COMPILING FINANCIAL TRANSACTIONS FROM CHANGES IN BALANCE SHEETS

            1. 5.145. In cases where basic statistics on financial transactions are not...

        21. Annex 5.1 Link with measures of money

          1. 5.146. This Annex explains a method which allows measures of money...

          2. 5.147. The definitions of the measures of money applied vary among...

          3. 5.148. The following problems appear in integrating measures of money in...

          4. 5.149. In order to identify a measure of money MX in...

          5. 5.150. The measure of money MX is equal to the sum...

          6. 5.151. A main advantage of this method is its flexibility. In...

      6. CHAPTER 6 OTHER FLOWS

        1. 6.01. Other flows cover consumption of fixed capital (K.1), acquisitions and...

        2. CONSUMPTION OF FIXED CAPITAL (K.1)

          1. 6.02. Definition: Consumption of fixed capital (K.1) represents the amount of...

          2. 6.03. Consumption of fixed capital must be calculated for all fixed...

          3. 6.04. Consumption of fixed capital (which should be distinguished from the...

          4. 6.05. In the system of accounts consumption of fixed capital is...

        3. ACQUISITIONS LESS DISPOSALS OF NON-FINANCIAL NON-PRODUCED ASSETS (K.2)

          1. 6.06. Definition Non-financial non-produced assets consist of land and other tangible...

          2. 6.07. Land is defined as the ground itself, including soil covering...

          3. 6.08. The following items are not included in land:

          4. 6.09. Acquisitions and disposals of land are valued at current market...

          5. 6.10. Acquisitions and disposals of other tangible non-produced assets cover subsoil...

          6. 6.11. Acquisitions and disposals of other tangible non-produced assets are valued...

          7. 6.12. Intangible non-financial non-produced assets consist of patented entities, leases or...

          8. 6.13. Acquisitions less disposals of non-financial non-produced assets are recorded in...

        4. OTHER CHANGES IN ASSETS (K.3 to K.12)

          1. 6.14. Definition: Other changes in assets are flows which are not...

        5. OTHER CHANGES IN VOLUME (K.3 to K.10 AND K.12)

          1. 6.15. Other changes in volume are flows with different functions. One...

          2. 6.16. The other changes in volume cover nine categories:

        6. ECONOMIC APPEARANCE OF NON-PRODUCED ASSETS (K.3)

          1. 6.17. Economic appearance of non-financial non-produced assets (K.3) represents the increase...

        7. ECONOMIC APPEARANCE OF PRODUCED ASSETS (K.4)

          1. 6.18. Economic appearance of produced assets (K.4) occurs in the case...

        8. NATURAL GROWTH OF NON-CULTIVATED BIOLOGICAL RESOURCES (K.5)

          1. 6.19. Natural growth of non-cultivated biological resources (K.5) is not under...

          2. 6.20. Natural growth should be recorded as an addition (K.5); the...

        9. ECONOMIC DISAPPEARANCE OF NON-PRODUCED ASSETS (K.6)

          1. 6.21. Economic disappearance on non-financial non-produced assets (K.6) includes:

        10. CATASTROPHIC LOSSES (K.7)

          1. 6.22. Catastrophic losses (K.7) recorded as other changes in the volume...

          2. 6.23. Such events include major earthquakes, volcanic eruptions, tidal waves, exceptionally...

        11. UNCOMPENSATED SEIZURES (K.8)

          1. 6.24. Uncompensated seizures (K.8) occur when governments or other institutional units...

        12. OTHER VOLUME CHANGES IN NON-FINANCIAL ASSETS N.E.C. (K.9)

          1. 6.25. Under other volume changes in non-financial assets (K.9) are recorded...

        13. OTHER VOLUME CHANGES IN FINANCIAL ASSETS AND LIABILITIES N.E.C. (K.10)...

          1. 6.26. Any changes in financial assets and liabilities that are not...

          2. 6.27. Category K.10 includes:

          3. 6.28. Category K.10 does not include:

        14. CHANGES IN CLASSIFICATIONS AND STRUCTURE (K.12)

          1. 6.29. Changes in classifications and structure (K.12) comprise changes in sector...

          2. CHANGES IN SECTOR CLASSIFICATION AND STRUCTURE (K.12.1)

            1. 6.30. Reclassifying an institutional unit from one sector to another transfers...

          3. CHANGES IN CLASSIFICATION OF ASSETS AND LIABILITIES (K.12.2)

            1. 6.31. Category K.12.2 distinguishes monetization/demonetization of gold (K.12.21) and changes in...

            2. 6.32. Monetization/demonetization of gold (K.12.21) is recorded in the other changes...

            3. 6.33. Changes in classification of assets or liabilities other than monetization/demonetization...

            4. 6.34. Entries for other changes in volume (K.3 to K.10 and...

        15. NOMINAL HOLDING GAINS/LOSSES (K.11)

          1. 6.35. Nominal holding gains are that category of other changes in...

          2. 6.36. Definition: The nominal holding gain (K.11) on a given quantity...

          3. 6.37. A positive holding gain is due to an increase in...

          4. 6.38. The nominal holding gains recorded in the revaluation account are...

          5. 6.39. Holding gains include gains on all kinds of assets: non-financial...

          6. 6.40. Nominal holding gains may accrue on assets held for any...

          7. 6.41. For purposes of calculating nominal holding gains, acquisitions and disposals...

          8. 6.42. The nominal holding gains included are those accruing on assets...

          9. NEUTRAL HOLDING GAINS/LOSSES (K.11.1)

            1. 6.43. Definition: The neutral holding gain (K.11.1) on an asset is...

            2. 6.44. Let the general price index be denoted by r. The...

            3. 6.45. There is no ideal general price index appropriate to calculate...

            4. 6.46. Neutral holding gains are recorded in the neutral holding gains/losses...

          10. REAL HOLDING GAINS/LOSSES (K.11.2)

            1. 6.47. Definition: The real holding gain (K.11.2) on an asset is...

            2. 6.48. Real holding gains are recorded in the real holding gains/losses...

          11. HOLDING GAINS BY TYPE OF FINANCIAL ASSET

            1. Currency and deposits (AF.2)

              1. 6.49. The current values of currency and deposits denominated in national...

              2. 6.50. In order to calculate the neutral and real holding gains...

            2. Loans (AF.4) and other accounts receivable/payable (AF.7)

              1. 6.51. The same as for currency and deposits applies for loans...

            3. Securities other than shares (AF.3)

              1. 6.52. When a bond is issued at premium or discount, including...

              2. 6.53. The prices of fixed-interest bonds also change, however, when the...

              3. 6.54. The conversion of bonds into shares is recorded as two...

              4. 6.55. The value of financial derivatives (AF.34) may change as a...

            4. Shares and other equity (AF.5)

              1. 6.56. Bonus shares (see paragraph 5.93) increase the number of shares...

            5. Insurance technical reserves (AF.6)

              1. 6.57. Changes in the net equity of households in life insurance...

          12. FINANCIAL ASSETS IN FOREIGN CURRENCY

            1. 6.58. The value of financial assets in foreign currency is measured...

      7. CHAPTER 7 BALANCE SHEETS

        1. 7.01. Definition: A balance sheet is a statement, drawn up at...

        2. 7.02. A balance sheet is drawn up for sectors, the total...

        3. 7.03. Corporations are seen to have a net worth in addition...

        4. 7.04. The difference between total financial assets and total liabilities is...

        5. 7.05. For the non-financial and the financial corporations sectors the calculation...

        6. 7.06. The balance sheet completes the sequence of accounts, showing the...

        7. 7.07. A balance sheet relates to the value of assets and...

        8. 7.08. A basic accounting identity links the opening balance sheet and...

        9. TYPES OF ASSETS

          1. 7.09. The assets recorded in the balance sheets are economic assets....

          2. 7.10. Definition: Economic assets are entities functioning as a store of...

          3. 7.11. The economic benefits consist of primary incomes (operating surplus by...

          4. 7.12. An overview of the classification and coverage of economic assets...

          5. 7.13. Three categories of assets are distinguished:

          6. NON-FINANCIAL PRODUCED ASSETS (AN.1)

            1. 7.14. Definition: Produced assets (AN.1) are non-financial assets that have come...

            2. 7.15. The classification of produced assets is designed to distinguish among...

          7. NON-FINANCIAL NON-PRODUCED ASSETS (AN.2)

            1. 7.16. Definition: Non-produced assets (AN.2) are economic assets that come into...

            2. 7.17. The classification is designed to distinguish assets on the basis...

            3. 7.18. All tangible non-produced assets are natural assets. Which natural assets...

            4. 7.19. Intangible non-produced assets include patented entities, transferable contracts, purchased goodwill,...

          8. FINANCIAL ASSETS AND LIABILITIES (AF.)

            1. 7.20. Definition: Financial assets (AF.) are economic assets, comprising means of...

            2. 7.21. Means of payment consist of monetary gold, special drawing rights,...

            3. 7.22. Contingent assets are contractual arrangements between institutional units, and between...

            4. 7.23. In the system, each financial asset has a counterpart liability,...

            5. 7.24. The classification of financial assets and liabilities corresponds to the...

        10. VALUATION OF ENTRIES IN THE BALANCE SHEETS

          1. GENERAL VALUATION PRINCIPLES

            1. 7.25. A particular item in the balance sheet should be valued...

            2. 7.26. Ideally, these prices should be prices observable on the market....

            3. 7.27. In addition to prices observed on markets or estimated from...

            4. 7.28. Market prices are usually available for many of the financial...

            5. 7.29. For some assets revalued initial acquisition prices are written off...

            6. 7.30. In the case of assets for which the returns either...

            7. 7.31. The value of assets and liabilities denominated in foreign currencies...

            8. 7.32. Alternatives to current market values might be useful for some...

        11. NON-FINANCIAL ASSETS (AN.)

          1. PRODUCED ASSETS (AN.1)

            1. Fixed assets (AN.11)

              1. Tangible fixed assets (AN.111)

                1. 7.33. Tangible fixed assets have to be recorded at market prices...

              2. Intangible fixed assets (AN.112)

                1. 7.34. Mineral exploration should be valued either on the basis of...

                2. 7.35. Computer software should be valued on the basis of the...

                3. 7.36. Entertainment, literary or artistic originals and other intangible fixed assets...

            2. Inventories (AN.12)

              1. 7.37. Inventories should be valued at prices prevailing on the date...

              2. 7.38. Inventories of materials and supplies are valued at purchasers' prices,...

            3. Valuables (AN.13)

              1. 7.39. Valuables (works of art, antiques, jewellery, precious stones, non-monetary gold...

          2. NON-PRODUCED ASSETS (AN.2)

            1. Tangible non-produced assets (AN.21)

              1. Land (AN.211)

                1. 7.40. In the capital account, expenditures on land improvements and the...

              2. Subsoil assets (AN.212)

                1. 7.41. Proven reserves of mineral deposits located on or below the...

              3. Other natural assets (AN.213 and AN.214)

                1. 7.42. As observed prices for these assets are not likely to...

            2. Intangible non-produced assets (AN.22)

              1. 7.43. Intangible non-produced assets (patented entities, leases or other transferable contracts,...

          3. FINANCIAL ASSETS AND LIABILITIES (AF.)

            1. 7.44. Financial assets and liabilites should in principle be valued at...

            2. Monetary gold and SDRs (AF.1)

              1. 7.45. Monetary gold (AF.11) is to be valued at the price...

            3. Currency and deposits (AF.2)

              1. 7.46. For currency (AF.21), the valuation is the nominal or face...

            4. Securities other than shares (AF.3)

              1. 7.47. The valuation adopted must be consistent with the treatment of...

              2. 7.48. Short-term securities other than shares excluding financial derivatives (AF.331) are...

              3. 7.49. Long-term securities other than shares excluding financial derivatives (AF.332) are...

              4. 7.50. Financial derivatives (AF.34) should be included in the balance sheets...

            5. Loans (AF.4)

              1. 7.51. The values to be recorded in the balance sheets of...

            6. Shares and other equity (AF.5)

              1. 7.52. Shares and other equity are to be valued at their...

              2. 7.53. Quoted shares (AF.511) are to be valued at a representative...

              3. 7.54. The values of unquoted shares (AF.512), which are not regularly...

              4. 7.55. The estimation method applied depends very much on the basic...

              5. 7.56. Other equity (AF.513) is very often a liability of specific...

              6. 7.57. Mutual funds shares (AF.52) are to be valued at their...

            7. Insurance technical reserves (AF.6)

              1. 7.58. In the case of net equity of households in life...

              2. 7.59. In the case of net equity of households on pension...

              3. 7.60. The value of the prepayments of insurance premiums, which are...

            8. Other accounts receivable/payable (AF.7)

              1. 7.61. Trade credits and advances (AF.71) or other items receivable/payable (AF.79)...

          4. MEMORANDUM ITEMS

            1. 7.62. In order to show items of more specialized analytic interest...

            2. Consumer durables (AN.m)

              1. 7.63. Consumer durables are durable goods used by households repeatedly over...

              2. 7.64. The stocks of consumer durables held by households — transport...

              3. 7.65. Durable goods owned by owners of unincorporated enterprises may be...

            3. Direct foreign investment (AF.m).

              1. 7.66. Direct investment consists of financial assets, not physical capital, because...

          5. FINANCIAL BALANCE SHEETS

            1. 7.67. The financial balance sheet (of a sector or the rest...

            2. 7.68. The financial balance sheet of a sector may be consolidated...

            3. 7.69. The financial balance sheet by debtor/creditor (of a sector or...

        12. Annex 7.1 Definition of each asset category

        13. Annex 7.2 A map of entries from opening balance sheet to closing...

      8. CHAPTER 8 SEQUENCE OF ACCOUNTS AND BALANCING ITEMS

        1. 8.01. The ESA records flows and stocks in an ordered set...

        2. 8.02. Each of the accounts shows transactions which balance out, either...

        3. 8.03. The structured recording of transactions according to a logical analysis...

        4. 8.04. The accounts are grouped in three categories:

        5. 8.05. The sequence of accounts applies, wholly or partly, to institutional...

        6. 8.06. The balancing items are established both gross and net. They...

        7. 8.07. The accounts are presented in various ways:

        8. 8.08. Synoptic presentation of the accounts, balancing items and main aggregates:...

        9. SEQUENCE OF ACCOUNTS

          1. 8.09. The sequence of accounts is composed of three main categories...

          2. CURRENT ACCOUNTS

            1. Production account (I)

              1. 8.10. The production account (I) shows the transactions relating to the...

              2. 8.11. The production account can be used to obtain one of...

              3. 8.12. As with the balancing items of the following accounts, value...

              4. 8.13. The production account at the level of the total economy...

              5. 8.14. As financial intermediation services indirectly measured (Fisim) are not allocated...

            2. Distribution and use of income accounts (II)

              1. 8.15. Distribution and use of income are analysed in four stages:...

              2. Primary distribution of income accounts (II.1)

                1. Generation of income account (II.1.1)

                  1. 8.16. The generation of income account is also presented by industries,...

                  2. 8.17. The generation of income account presents the sectors, subsectors and...

                  3. 8.18. It analyses the extent to which value added can cover...

                  4. 8.19. In the case of unincorporated enterprises in the households sector,...

                  5. 8.20. In the case of own account production of accommodation services...

                2. Allocation of primary income account (II.1.2)

                  1. 8.21. Unlike the generation account, the allocation of primary income account...

                  2. 8.22. ‘Primary income’ is the income which resident units receive by...

                  3. 8.23. The allocation of primary income account (II.1.2) can be calculated...

                  4. 8.24. As financial intermediation services indirectly measured (Fisim) are not allocated...

                  5. 8.25. The allocation of primary income account is broken down into...

                  6. Entrepreneurial income account (II.1.2.1)

                    1. 8.26. The purpose of the entrepreneurial income account is to determine...

                    2. 8.27. In the case of general government and non-profit institutions serving...

                    3. 8.28. Entrepreneurial income corresponds to the operating surplus or mixed income...

                  7. Allocation of other primary income account (II.1.2.2)

                    1. 8.29. The purpose of the allocation of other primary income account...

              3. Secondary distribution of income account (II.2)

                1. 8.30. The secondary distribution of income account shows how the balance...

                2. 8.31. The balancing item of the account is disposable income, which...

                3. 8.32. Social contributions are recorded on the uses side of the...

              4. Redistribution of income in kind account (II.3)

                1. 8.33. The redistribution of income in kind account gives a broader...

                2. 8.34. Social transfers in kind are recorded on the resources side...

                3. 8.35. The balancing item in the redistribution of income in kind...

              5. Use of income account (II.4)

                1. 8.36. For the institutional sectors with final consumption, the use of...

                2. 8.37. In the system, only government, NPISHs and households have final...

                3. Use of disposable income account (II.4.1)

                  1. 8.38. The use of disposable income account includes the concept of...

                  2. 8.39. The balancing item in the use of disposable income account...

                4. Use of adjusted disposable income account (II.4.2)

                  1. 8.40. The use of adjusted disposable income account includes the concept...

                  2. 8.41. At the level of the total economy, final consumption expenditure...

                  3. 8.42. Saving is the balancing item in both versions of the...

                  4. 8.43. Saving is the (positive or negative) amount resulting from current...

          3. ACCUMULATION ACCOUNTS (III)

            1. 8.44. The accumulation accounts are flow accounts. They record the various...

            2. 8.45. Changes in assets are recorded on the left-hand side of...

            3. Capital account (III.1)

              1. 8.46. The capital account records acquisitions less disposals of non-financial assets...

              2. 8.47. The capital account makes it possible to determine the extent...

              3. Change in net worth due to saving and capital transfers...

                1. 8.48. This account makes it possible to determine the change in...

              4. Acquisitions of non-financial assets account (III.1.2)

                1. 8.49. This account records acquisitions less disposals of non-financial assets in...

            4. Financial account (III.2)

              1. 8.50. The financial account records, by type of financial instrument, the...

              2. 8.51. The classification of assets and liabilities used in the financial...

            5. Other changes in assets account (III.3)

              1. 8.52. The other changes in assets account records changes in assets...

              2. Other changes in volume of assets account (III.3.1)

                1. 8.53. The movements recorded in the other changes in volume of...

              3. Revaluation account (III.3.2)

                1. 8.54. The revaluation account records changes in the value of assets...

                2. 8.55. The flows recorded in the revaluation account change the net...

                3. 8.56. The revaluation account is broken down into two sub-accounts: the...

                4. Neutral holding gains and losses account (III.3.2.1)

                  1. 8.57. The neutral holding gains and losses account records changes in...

                5. Real holding gains and losses account (III.3.2.2)

                  1. 8.58. Real holding gains and losses measure the difference between nominal...

                  2. 8.59. If the nominal holding gains net of the nominal holding...

          4. BALANCE SHEETS (IV)

            1. 8.60. The aim of the balance sheets is to give a...

            2. Opening balance sheet (IV.1)

              1. 8.61. The opening balance sheet records the value of assets and...

            3. Changes in balance sheet (IV.2)

              1. 8.62. The changes in balance sheet account records changes in the...

            4. Closing balance sheet (IV.3)

              1. 8.63. The closing balance sheet records the value of assets and...

              2. 8.64. The value of an asset or liability in the closing...

        10. REST OF THE WORLD ACCOUNTS (V)

          1. 8.65. The Rest of the World accounts record transactions between resident...

          2. 8.66. The sequence of Rest of the World accounts follows the...

          3. 8.67. These accounts are drawn up from the point of view...

          4. CURRENT ACCOUNTS

            1. External account of goods and services (V.I)

              1. 8.68. Imports of goods and services are recorded on the resources...

              2. 8.69. In order to be consistent with measures of the output...

            2. External account of primary incomes and current transfers (V.II)

              1. 8.70. The purpose of the external account of primary incomes and...

              2. 8.71. On the resources side, the external account of primary incomes...

          5. EXTERNAL ACCUMULATION ACCOUNTS (V.III)

            1. Capital account (V.III.1)

              1. 8.72. The Rest of the World capital account records acquisitions less...

              2. 8.73. The balancing item of the capital account is the net...

            2. Financial account (V.III.2)

              1. 8.74. The layout of the Rest of the World financial account...

            3. Other changes in assets account (V.III.3)

              1. 8.75. As for the institutional sectors, the changes in net worth...

              2. 8.76. The absence of produced assets in the accumulation accounts and...

          6. BALANCE SHEETS (V.IV)

            1. 8.77. The balance sheets of the rest of the world contain...

            2. Table 8.16 — Full sequence of accounts for the rest...

              1. V.I: external account of goods and services

              2. V.II: External account of primary incomes and current transfers

              3. V.III: Accumulation accounts

                1. V.III.1: Capital accounts

                  1. V.III.1.1: Change in net worth due to saving and capital transfers...

                  2. V.III.1.2: Acquisition of non-financial assets account

                2. V.III.2: Financial account

                3. V.III.3: Other changes in assets accounts

                  1. V.III.3.1: Other changes in volume of assets account

                  2. V.III.3.2: Revaluation account

                    1. V.III.3.2.1: Neutral holding gains/losses account

                    2. V.III.3.2.2: Real holding gains/losses account

              4. V.IV: External assets and liabilities account

                1. V.IV.1: Opening balance sheet

                2. V.IV.2: Changes in balance sheet

                3. V.IV.3: Closing balance sheet

        11. GOODS AND SERVICES ACCOUNT (0)

          1. 8.78. The purpose of the goods and services account is to...

          2. 8.79. It therefore shows, by product group and for the total...

          3. 8.80. Given the way in which output is valued at basic...

          4. 8.81. Uses are recorded on the right-hand side of the goods...

          5. 8.82. The goods and services account is by definition in balance...

        12. INTEGRATED ECONOMIC ACCOUNTS

          1. 8.83. The integrated economic accounts give a concise overview of the...

          2. 8.84. In the table of integrated economic accounts, uses, assets and...

          3. 8.85. To make the table readable while giving a picture of...

          4. 8.86. The columns in the table represent the institutional sectors, namely:...

          5. 8.87. The rows in the table represent the various categories of...

          6. Table 8.18 — Integrated economic accounts

            1. CURRENT ACCOUNTS

            2. ACCUMULATION ACCOUNTS

            3. BALANCE SHEETS

        13. AGGREGATES

          1. 8.88. The aggregates are summary indicators of the result of the...

          2. GROSS DOMESTIC PRODUCT AT MARKET PRICES (GDP)

            1. 8.89. Gross domestic product at market prices is the final result...

            2. 8.90. By deducting consumption of fixed capital from GDP, we obtain...

          3. OPERATING SURPLUS OF THE TOTAL ECONOMY

            1. 8.91. The gross (or net) operating surplus of the total economy...

          4. MIXED INCOME OF THE TOTAL ECONOMY

            1. 8.92. The gross (or net) mixed income of the total economy...

          5. ENTREPRENEURIAL INCOME OF THE TOTAL ECONOMY

            1. 8.93. The gross (or net) entrepreneurial income of the total economy...

          6. NATIONAL INCOME (AT MARKET PRICES)

            1. 8.94. Gross (or net) national income (at market prices) represents total...

          7. NATIONAL DISPOSABLE INCOME

            1. 8.95. Gross (or net) national disposable income is the sum of...

          8. SAVING

            1. 8.96. This aggregate measures the portion of national disposable income that...

          9. CURRENT EXTERNAL BALANCE

            1. 8.97 The balancing item in the external account of primary income...

          10. NET LENDING (+) OR BORROWING (-) OF THE TOTAL ECONOMY...

            1. 8.98. The net lending (+) or borrowing (-) of the total...

          11. NET WORTH OF THE TOTAL ECONOMY

            1. 8.99. The net worth of the total economy is the sum...

          12. GENERAL GOVERNMENT EXPENDITURE AND REVENUE

            1. 8.99 (a) General government expenditure and revenue are defined by reference to...

        14. MATRIX PRESENTATION

          1. 8.100. Previous parts of this chapter have presented a sequence of...

          2. 8.101. The input-output table is a widely used matrix framework to...

          3. 8.102. The rest of this section will demonstrate, first, that the...

          4. 8.103. Next, the general purposes that can be served by an...

          5. MATRIX PRESENTATION OF ESA ACCOUNTS

            1. 8.104. Table 8.19 presents the full sequence of accounts and balancing...

            2. 8.105. The figures which are presented in the tables of this...

            3. 8.106. A matrix presentation permits each transaction to be represented by...

            4. 8.107. The row and column totals have not been named. Their...

            5. 8.108. Row 1 shows the uses of goods and services, at...

            6. 8.109. The elements in row 1 add up to total use...

            7. 8.110. Row 2 shows output (at basic prices) plus taxes less...

            8. 8.111. Row 3 shows the receipts of primary income by the...

            9. 8.112. Apart from the diagonal item, column 3 contains primary income...

            10. 8.113. This matrix leaves open the option whether or not to...

            11. 8.114. If redistribution of income in kind is incorporated, then account...

            12. 8.115. For the capital account, two subaccounts have been distinguished. First,...

            13. 8.116. Next, the row of the account for acquisition of non-financial...

            14. 8.117. Account 8, the financial account, opens with net lending of...

            15. 8.118. The account for other changes in assets, account 9, records...

            16. 8.119. The last four accounts for the total economy refer to...

            17. 8.120. For the rest of the world, the same accounts have...

            18. 8.121. Secondly, the external account of primary incomes and current transfers...

            19. 8.122. Thirdly, the capital account for the rest of the world...

            20. 8.123. Fourthly, the financial account gives the net acquisition of external...

            21. 8.124. Finally, the balance sheets for the rest of the world...

            22. 8.125. As a next step, this reduced format matrix can be...

          6. PROPERTIES OF ACCOUNTING MATRICES

            1. 8.126. Each entry in an aggregate matrix such as table 8.19...

            2. 8.127. In principle, each account can be broken down in two...

            3. 8.128. these subdivisions have two major consequences. First, for all categories...

            4. 8.129. When compiling such a matrix, it is convenient to start...

            5. 8.130. Among the general properties of a matrix presentation of accounts...

            6. 8.131. An aggregate matrix for the total economy can serve as...

            7. 8.132. The matrix presentation is a suitable tool for exploring the...

          7. ADAPTATION OF THE REDUCED FORMAT MATRIX TO SPECIFIC TYPES OF...

            1. 8.133. The supply and use tables opt for a classification of...

            2. 8.134. A SAM is defined here as: The presentation of ESA-accounts...

            3. 8.135. An important social concern is the level and composition of...

            4. 8.136. The classification of (self-)employed persons may be based on a...

            5. 8.137. Both resident persons employed in non-resident enterprises and non-resident persons...

            6. 8.138. In particular, comparing (1) labour incomes of all employed persons...

            7. 8.139. At this stage, it is perhaps useful to work out...

            8. 8.140. The sequence of accounts in this matrix is the same...

            9. 8.141. The first two rows and columns of table 8.20 contain...

            10. 8.142. The third account records the generation of income and plays...

            11. 8.143. Here, this account accommodates transactions between two different types of...

            12. 8.144. The (residual) mixed income and operating surplus remain with the...

            13. 8.145. As the balancing item in cell (III,II) equals total domestic...

            14. 8.146. The result of all this is that the generation of...

            15. 8.147. The allocation of primary income account of a detailed SAM...

            16. 8.148. In the design of this SAM, the capital and financial...

            17. 8.149. A large part of total volume changes in net worth...

            18. 8.150. Table 8.21 serves to illustrate what kind of information can...

            19. 8.151. As a SAM integrates both income and expenditure flows and...

            20. 8.152. Integration of more basic data entails the possibility of more...

            21. 8.153. Table 8.22 shows part of the information contained in a...

            22. 8.154. The additional insights which can be obtained from such a...

            23. 8.155. In this table, the detailed information on compensation of employees...

      9. CHAPTER 9 INPUT-OUTPUT FRAMEWORK

        1. 9.01. The input-output framework consists of three types of tables:

        2. 9.02. Supply and use tables are matrices by industry and product...

        3. 9.03. A supply table shows the supply of goods and services...

        4. 9.04. A use table shows the use of goods and services...

        5. 9.05. Between the supply and use tables, two types of identities...

        6. 9.06. Supply and use tables are the central framework for all...

        7. 9.07. The supply and use tables contain all the flows in...

        8. 9.08. A supply table and a use table can also be...

        9. 9.09. A symmetric input-output table is a product by product or...

        10. 9.10. Most statistical information that can be obtained from producer units...

        11. 9.11. The supply and use tables serve both statistical and analytical...

        12. 9.12. The supply and use tables and symmetric input-output tables give...

        13. 9.13. The supply and use tables and symmetric input-output tables can...

        14. 9.14. The supply and use tables and symmetric input-output tables can...

        15. 9.15. The supply and use tables and the symmetric input-output table...

        16. SUPPLY AND USE TABLES

          1. 9.16. Tables 9.5 and 9.6 show the supply and use tables...

          2. 9.17. The classification used for industries in the NACE Rev. 2...

          3. 9.18. In the supply and use tables, the classification for products...

          4. 9.19. The distinction between market output, output for own final use...

          5. 9.20. The distinction between market producers and producers for own final...

          6. 9.21. Imports and exports should be subdivided into:

          7. 9.22. In the supply table, flows of goods and services are...

          8. 9.23. Value added is recorded at basic prices. It is the...

          9. 9.24. Value added at factor cost is not a concept in...

          10. 9.25. GDP is valued at market prices. This aggregate can be...

          11. 9.26. The use table 9.6 also contains some supplementary information: gross...

          12. 9.27. In the ESA, the stocks of fixed assets are valued...

          13. 9.28. For productivity analysis, hours worked is the preferable labour input...

          14. 9.29. For a proper compilation and understanding of the supply and...

          15. 9.30. In the supply and use tables, two adjustment items should...

          16. 9.31. The transfer of existing goods is recorded in the use...

          17. 9.32. Direct purchases abroad by residents and purchases on the domestic...

          18. 9.33. Throughout the supply and use tables, the NACE Rev. 2...

          19. 9.34. The transition from supply and use at basic prices to...

          20. 9.35. In general, when preparing supply and use tables and making...

          21. 9.36. In practice, both types of balances may be needed to...

          22. 9.37. Thus, the following tables are involved in the balancing process:...

          23. 9.38. The transition of supply and use from basic prices to...

          24. 9.39. The total of trade margins by product is equal to...

          25. 9.40. The transport margins include transportation costs paid separately by the...

          26. 9.41. Table 9.7 shows a somewhat simplified picture of a trade...

          27. 9.42. Taxes on production and imports consist of:

          28. 9.43. Supply at basic prices includes net other taxes on production,...

          29. 9.44. VAT may be deductible, non-deductible or just not applicable:

          30. 9.45. VAT is recorded net in the ESA: all supplies are...

          31. 9.46. Table 9.8 on taxes less subsidies on products is simplified,...

          32. 9.47. The way of recording taxes and subisidies on products is...

          33. 9.48. The use table 9.6 does not show to what extent...

          34. 9.49. The use table for imported products should be compiled by...

          35. 9.50. The use table for goods and services produced domestically can...

          36. 9.51. In order to serve more specific purposes, the supply and...

        17. TABLES LINKING THE SUPPLY AND USE TABLES TO THE SECTOR...

          1. 9.52. The information in the supply and use tables should be...

        18. SYMMETRIC INPUT-OUTPUT TABLES

          1. 9.53. In the ESA, the product-by-product input-output table is the most...

          2. 9.54. The product-by-product input-output table (see tables 9.4 and 9.12) can...

          3. 9.55. Step (a) involves transfers of outputs in the form of...

          4. 9.56. Step (b) is more complicated, as the basic data on...

          5. 9.57. Supplementary statistical and technical information should be utilized as much...

          6. 9.58. The assumptions used to transfer outputs and associated inputs hinge...

          7. 9.59. The importance of the role played by the assumptions depends...

          8. 9.60. Step (c) involves the aggregation of the products in the...

          9. 9.61. The classifications in the symmetric input-output table coincide with those...

          10. 9.62. The symmetric input-output table 9.12 should be accompanied by at...

      10. CHAPTER 10 PRICE AND VOLUME MEASURES

        1. 10.01. In a system of economic accounts, all the flows and...

        2. 10.02. When time comparisons of flows and stocks are concerned, equal...

        3. 10.03. The general rule for comparisons in space is that accurate...

        4. 10.04. The economic accounts have the advantage of providing a suitable...

        5. 10.05. Despite the advantages of an integrated system based on the...

        6. SCOPE OF PRICE AND VOLUME INDICES IN THE ACCOUNTS SYSTEM...

          1. 10.06. Among the flows which appear in economic accounts at current...

          2. 10.07. It must be emphasized that the objective and the procedure...

          3. THE INTEGRATED SYSTEM OF PRICE AND VOLUME INDICES

            1. 10.08. The systematic division of changes in current values into the...

            2. 10.09. The items to be considered when constructing such an integrated...

          4. PRICE AND VOLUME INDICES FOR OTHER AGGREGATES

            1. 10.10. In addition to the price and volume measures considered above,...

            2. 10.11. Compensation of employees is an element of income. For the...

        7. GENERAL PRINCIPLES OF MEASURING PRICE AND VOLUME INDICES

          1. DEFINITION OF PRICES AND VOLUMES OF MARKET PRODUCTS

            1. 10.12. The creation of an integrated system of price and volume...

            2. 10.13. Definition: Price is defined as the value of one unit...

            3. 10.14. For transactions in goods it is in many cases easy...

          2. DIFFERENCES IN QUALITY AND DIFFERENCES IN PRICE

            1. 10.15. The physical and other characteristics to be taken into consideration...

            2. 10.16. Differences in quality are reflected by the following factors:

            3. 10.17. Within a given market and in a single period, the...

            4. 10.18. The dimension of quality has to be taken into account...

            5. 10.19. Definition: The existence of observed unit value differences is not...

            6. 10.20. Lack of information means that purchasers may not always be...

            7. 10.21. Price discrimination implies that sellers may be in a position...

            8. 10.22. Parallel markets may exist for several reasons. Buyers may be...

            9. 10.23. A change in the structure of a flow affecting its...

          3. PRINCIPLES FOR NON-MARKET SERVICES

            1. 10.24. The establishment of a comprehensive system of price and volume...

            2. 10.25. In the absence of a unit market price, the change...

            3. 10.26. In the context of the economic accounts, it is of...

          4. PRINCIPLES FOR VALUE-ADDED AND GDP

            1. 10.27. Value-added, the balancing item in the production account, is the...

            2. 10.28. Definition: Value-added at constant prices is defined as the difference...

            3. 10.29. In some cases, where the statistical data remain incomplete or...

            4. 10.30. By their very nature, therefore, the indices of volume and...

        8. PROBLEMS IN THE APPLICATION OF THE PRINCIPLES

          1. 10.31. To apply the principles of price and volume to the...

          2. GENERAL APPLICATION

            1. 10.32. The need to determine which of the various factors described...

            2. 10.33. Deflation with price indices may not always be best in...

            3. 10.34. For non-market services the possibility of deflating values by using...

          3. APPLICATION TO SPECIFIC FLOWS

            1. Flows of goods and market services

              1. 10.35. Of all the flows in the economy, the changes in...

              2. 10.36. The flows in category (a) are by far the most...

              3. 10.37. The flows in category (b), which are notional transactions, are...

              4. 10.38. The most important flows in category (c) are those whose...

              5. 10.39. Category (c) also includes output of travel agency services measured...

              6. 10.40. The flows in category (d) consist of financial intermediation services:...

            2. Flows of non-market services

              1. 10.41. The non-market services produced by general government and non-profit institutions...

              2. 10.42. The services provided to individuals can be given to single...

              3. 10.43. The pure collective services are produced by general government for...

              4. 10.44. It may not be possible in practice to obtain reliable...

              5. 10.45. The calculation of intermediate consumption at constant prices poses no...

              6. 10.46. Calculation at constant prices of the compensation of employees and...

            3. Taxes and subsidies on products and imports

              1. 10.47. Although essentially limited to transactions involving goods and services, the...

              2. 10.48. The simplest case is that of taxes which represent a...

              3. 10.49. A more frequent case is that in which the tax...

              4. 10.50. The amount of tax on products (excluding VAT) (D.215 and...

              5. 10.51. Similarly, the amount of subsidies on products (D.31) is measured...

              6. 10.52. VAT on producs (D.211) is, both for the whole economy...

            4. Consumption of fixed capital

              1. 10.53. The calculation of volume measures of the consumption of fixed...

            5. Compensation of employees

              1. 10.54. For the purpose of measuring the volume of input from...

              2. 10.55. For the purpose of measuring the real purchasing power of...

            6. Stocks of produced fixed assets and inventories

              1. 10.56. Constant-price data are needed both for stocks of produced fixed...

            7. Measures of real income for the total economy

              1. 10.57. It is not possible to divide income flows into a...

              2. 10.58. Gross domestic product at constant prices measures the total production...

              3. 10.59. The real gross domestic income can be derived by adding...

              4. 10.60. Various real income aggregates are identified and defined in the...

        9. CHOICE OF INDEX NUMBER FORMULAE AND THE BASE YEAR

          1. 10.61. The construction of an integrated system of price and volume...

          2. 10.62. The preferred measure of year-to-year changes in volume is a...

          3. 10.63. The preferred measure of year-to-year changes in prices is a...

          4. 10.64. Chain indices that use Laspeyres volume indices to measure changes...

          5. 10.65. Although the preferred measure of volume and price is a...

          6. 10.66. It is therefore recommended that disaggregated constant price data, i.e....

          7. 10.67. When base-year values are extrapolated by chain volume indices, it...

        10. INTERSPATIAL PRICE AND VOLUME INDICES

          1. 10.68. Comparisons of prices and volumes between countries have to overcome...

          2. 10.69. If the economies of the two countries differ much from...

          3. 10.70. Direct quantitative comparisons between economic situations that have little in...

          4. 10.71. For non-market services, international comparisons face the same problem as...

          5. 10.72. The need to make international comparisons of prices and volumes...

          6. 10.73. The approach adopted in the ESA to the calculation of...

          7. 10.74. The EKS index utilizes all the indirect indices linking country...

      11. CHAPTER 11 POPULATION AND LABOUR INPUTS

        1. 11.01. Certain comparisons between countries, or between industries or sectors within...

        2. 11.02. These titles are defined in the system on the basis...

        3. 11.03. Labour inputs must be classified on the basis of the...

        4. 11.04. The aggregates to which the figures for population and labour...

        5. TOTAL POPULATION

          1. 11.05. Definition: On a given date, the total population of a...

          2. 11.06. Total population is defined for national accounts according to the...

          3. 11.07. The total population of a country includes:

          4. 11.08. Conversely, the total population of a country does not include:...

          5. 11.09. The definition given above differs from the present (or de...

        6. ECONOMICALLY ACTIVE POPULATION

          1. 11.10. Definition: The economically active population comprises all persons of either...

        7. EMPLOYMENT

          1. 11.11. Definition: Employment covers all persons — both employees and self-employed...

          2. EMPLOYEES

            1. 11.12. Definition: Employees are defined as all persons who, by agreement,...

            2. 11.13. The following categories are included:

            3. 11.14. Persons temporarily not at work are also considered as employees...

          3. SELF-EMPLOYED PERSONS

            1. 11.15. Definition: Self-employed persons are defined as persons who are the...

            2. 11.16. Self-employed persons also include the following categories:

          4. EMPLOYMENT AND RESIDENCE

            1. 11.17. The results of the activity of producer units can only...

            2. 11.18. On the other hand, the following are excluded from employment:...

            3. 11.19. In order to be able to make the transition to...

        8. UNEMPLOYMENT

          1. 11.20. Definition: In accordance with the norms established by the International...

          2. 11.21. Definition: Unemployment rates represent unemployed persons as a percentage of...

        9. JOBS

          1. 11.22. Definition A job is defined as an explicit or implicit...

          2. 11.23. The concept of jobs differs from the concept of employment...

          3. JOBS AND RESIDENCE

            1. 11.24. A job in the economic territory of the country is...

            2. 11.25. Moreover:

        10. TOTAL HOURS WORKED

          1. 11.26. Definition: Total hours worked represent the aggregate number of hours...

          2. 11.27. In accordance with the norms established by the International Labour...

          3. 11.28. On the other hand, hours actually worked do not include:...

          4. 11.29. Total hours worked is the aggregate number of hours actually...

          5. 11.30. Many surveys of enterprises record hours paid not hours worked....

          6. 11.31. For business cycle analysis, it may be useful to adjust...

        11. FULL-TIME EQUIVALENCE

          1. 11.32. Definition: Full-time equivalent employment, which equals the number of full-time...

          2. 11.33. This definition does not necessarily describe how the concept is...

          3. 11.34. In spite of the fact that total hours worked are...

        12. EMPLOYEE LABOUR INPUT AT CONSTANT COMPENSATION

          1. 11.35. Definition: Employee labour input at constant compensation measures current labour...

          2. 11.36. Compensation of employees at current prices divided by employee labour...

          3. 11.37. The purpose of the concept of employee labour input at...

      12. CHAPTER 12 QUARTERLY ECONOMIC ACCOUNTS

        1. 12.01. The quarterly economic accounts form an integral part of the...

        2. 12.02. The importance of quarterly economic accounts derives essentially from the...

        3. 12.03. The period of time to which the quarterly accounts relate...

        4. 12.04. The statistical methods used for compiling quarterly accounts may differ...

        5. 12.05. The quarterly accounts series quite often show very short-term variations...

        6. 12.06. Since quarterly accounts adopt the same framework as annual accounts...

        7. 12.07. The time consistency must be ensured for raw data and,...

        8. 12.08. If, in principle, most of the operations and balancing items...

        9. 12.09. From a theoretical point of view there are no obstacles...

      13. CHAPTER 13 REGIONAL ACCOUNTS

        1. 13.01. Regional accounts are a regional specification of the corresponding accounts...

        2. 13.02. A full set of accounts at the regional level implies...

        3. 13.03. Conceptual difficulties (see paragraphs 13.10 to 13.14) partly explain why...

        4. REGIONAL TERRITORY

          1. 13.04. The regional economy of a country is part of the...

          2. 13.05. The regional territory includes:

          3. 13.06. The extraregio territory is made up of parts of the...

          4. 13.07. The nomenclature of territorial units for statistics (NUTS) provides a...

        5. UNITS AND RESIDENCE

          1. 13.08. Two types of unit are distinguished. First of all the...

          2. 13.09. The local KAU is the part of a KAU which...

          3. 13.10. In the case of institutional units two types of institutional...

          4. 13.11. All transactions of the uniregional institutional units are allocated to...

          5. 13.12. Some of the transactions of multiregional units cannot, strictly speaking,...

          6. 13.13. One may think of allocating all transactions of multiregional units...

          7. 13.14. Due to the abovementioned considerations, the system of regional accounts...

        6. METHODS OF REGIONALIZATION

          1. 13.15. Regional accounts are based on the transactions of units that...

          2. 13.16. In principle, the advantage of bottom-up methods is that they...

          3. 13.17. Whenever possible regional values which directly correspond in concept with...

        7. AGGREGATES BY INDUSTRY

          1. 13.18. An industry for a region consists of a group of...

          2. 13.19. As a general principle, aggregates on production activities should be...

          3. 13.20. The general principle of allocating gross fixed capital formation by...

          4. 13.21. In practice, it may be that information is only available...

          5. 13.22. When defining a local KAU three situations can be distinguished:...

          6. 13.23. Ancillary activities are not isolated to form distinct entities or...

          7. 13.24. For some industries, the methods for regionalization need some further...

          8. 13.25. For the construction industry, building sites should be treated as...

          9. 13.26. For transport industries including pipeline transport it is essential to...

          10. 13.27. For financial intermediation industries, value-added should be allocated according to...

          11. 13.28. Output is to be valued at basic prices (see paragraph...

          12. 13.29. The regional equivalent of GDP is GDPR (gross domestic product...

        8. HOUSEHOLD ACCOUNTS

          1. 13.30. Gross domestic product per region is the result of the...

          2. 13.31. Regional accounts of households are a regional specification of the...

          3. 13.32. The regional household accounts are based on the households that...

          4. 13.33. In general the rules for determining the residence of households...

          5. 13.34. In the regional accounts of households, two considerations have to...

      14. ANNEX I

        FINANCIAL INTERMEDIATION SERVICES INDIRECTLY MEASURED

        1. CHANGES TO BE MADE IN THE ESA CHAPTERS IF FISIM...

      15. ANNEX II

        LEASING AND HIRE PURCHASE OF DURABLE GOODS

        1. DEFINITIONS

          1. 1. In addition to purchasing durable goods outright, institutional units can...

          2. Leasing

            1. 2. When one institutional unit A owns a durable good and...

          3. Operating leasing

            1. 3. The lessee acquires the right to use a durable good...

          4. Financial leasing

            1. 4. The lessee acquires the right to use a durable good...

          5. Hire purchase

            1. 5. A durable good is sold to a purchaser in return...

        2. TREATMENT IN THE ACCOUNTS

          1. Operating leasing

            1. 6. A durable good purchased by a lessor for the purpose...

            2. 7. In NACE Rev. 2, operating leasing of real estate is...

          2. Financial leasing

            1. 8. If the lessee is a producer, the durable good is...

            2. 9. If the lessee is a household acting as a final...

            3. 10. The interest rate on the imputed loan is implicitly determined...

            4. 11. Financial lessors' productive activity is financial intermediation. Usually lessors do...

            5. 12. The ESA's treatment of financial leasing implies that the leased...

          3. Hire purchase

            1. 13. The durable good is recorded as if bought by the...

            2. 14. In NACE Rev. 2, financiers of hire purchase contracts are...

      16. ANNEX III

        INSURANCE

        1. INTRODUCTION

          1. 1. There are two main types of insurance: social insurance and...

        2. DEFINITIONS

          1. Social insurance

            1. 2. Social insurance schemes are schemes in which social contributions are...

            2. 3. Social insurance schemes are often organized collectively so that those...

            3. Social security schemes of government

              1. 4. These schemes are imposed, controlled and financed by government units...

            4. Private funded social insurance schemes

              1. 5. There are two categories of such schemes. The first consists...

            5. Unfunded social insurance schemes operated by employers

              1. 6. These are schemes in which employers pay social benefits to...

          2. Other insurance

            1. 7. Other insurance provides individual institutional units exposed to certain risks...

            2. Other life insurance

              1. 8. Holders of other life insurance policies are exclusively households, resident...

            3. Other non-life insurance

              1. 9. All kinds of institutional units may be holders of other...

          3. Reinsurance

            1. 10. An insurance enterprise undertaking insurance with policyholders often transfers some...

          4. Insurance auxiliaries

            1. 11. Insurance auxiliaries are units that engage primarily in activities closely...

        3. TREATMENT IN THE ACCOUNTS

          1. 12. For ease of exposition, the following description of the different...

          2. Social insurance

            1. Social security schemes of government

              1. 13. The output produced by those employed in managing these schemes...

              2. 14. The units managing social security schemes of government are classified...

            2. Private funded social insurance schemes

              1. 15. Schemes financed by autonomous funds are treated differently from schemes...

              2. 16. All four items are recorded exclusive of holding gains or...

              3. 17. The remaining transactions apply to both autonomous and non-autonomous funds....

              4. 18. Employers' actual contributions are recorded again in the secondary distribution...

              5. 19. The entry in the financial account contains two elements:

              6. 20. As a consequence of the entry in the financial account,...

              7. 21. If a resident employee works for a non-resident employer, the...

              8. 22. If a non-resident employee works for a resident employer, the...

            3. Unfunded social insurance schemes operated by employers

              1. 23. Similar to schemes financed by non-autonomous funds, the costs of...

              2. 24. The ESA regards an employer operating an unfunded scheme as...

              3. 25. Actual contributions by employees, if any, are shown as part...

              4. 26. If a resident works for a non-resident employer operating an...

          3. Other insurance

            1. 27. The output of other insurance services, both life and non-life,...

            2. 28. Actual premiums earned are the actual premiums that cover the...

            3. 29. Claims due cover events that occur within the current period....

            4. Other life insurance

              1. 30. Total output of other life insurance is calculated according to...

              2. 31. Two further transactions are recorded for other life insurance. In...

              3. 32. Because of this entry in the financial account, F.611 is...

              4. 33. When a resident life insurance enterprise provides services to non-resident...

            5. Other non-life insurance

              1. 34. The output (P.1) of other non-life insurance enterprises is calculated...

              2. 35. In the allocation of primary income account, property income attributed...

              3. 36. In the secondary distribution of income account net premiums earned...

              4. 37. In the financial account, net equity of policyholders in non-life...

              5. 38. When non-resident units purchase cover from resident non-life insurers, the...

          4. Reinsurance

            1. 39. The ESA records reinsurance transactions in a simpler way than...

            2. 40. For resident insurance enterprises data on output and intermediate consumption...

          5. Insurance auxiliaries

            1. 41. The output of auxiliary insurance services is valued on the...

        4. INSURANCE: NUMERICAL EXAMPLE

      17. ANNEX IV

        CLASSIFICATIONS AND ACCOUNTS

        1. CLASSIFICATIONS

          1. CLASSIFICATION OF INSTITUTIONAL SECTORS (S)

          2. CLASSIFICATION OF TRANSACTIONS AND OTHER FLOWS

          3. CLASSIFICATION OF BALANCING ITEMS (B)

          4. CLASSIFICATION OF ASSETS (A)

          5. REGROUPING AND CODING OF INDUSTRIES (A*), PRODUCTS (P*) AND FIXED...

          6. CLASSIFICATION OF INDIVIDUAL CONSUMPTION BY PURPOSE (COICOP)

            1. 1. Food and non-alcoholic beverages

            2. 2. Alcoholic beverages, tobacco and narcotics

            3. 3. Clothing and footwear

            4. 4. Housing, water, electricity, gas and other fuels

            5. 5. Furnishings, household equipment and routine households maintenance

            6. 6. Health

            7. 7. Transport

            8. 8. Communication

            9. 9. Recreation and culture

            10. 10. Education

            11. 11. Restaurants and hotels

            12. 12. Miscellaneous goods and services

            13. 13. Individual consumption expenditure of non-profit institutions serving households (NPISHs)

            14. 14. Individual consumption expenditure of general government

          7. CLASSIFICATION OF THE FUNCTIONS OF THE GOVERNMENT (COFOG)

            1. 1. General public services

            2. 2. Defence

            3. 3. Public order and safety

            4. 4. Economic affairs

            5. 5. Environmental protection

            6. 6. Housing and community amenities

            7. 7. Health

            8. 8. Recreation, culture and religion

            9. 9. Education

            10. 10. Social protection

          8. CLASSIFICATION OF THE PURPOSES OF NON-PROFIT INSTITUTIONS SERVING HOUSEHOLDS (COPNI)...

            1. 1. Housing

            2. 2. Health

            3. 3. Recreation and culture

            4. 4. Education

            5. 5. Social protection

            6. 6. Religion

            7. 7. Political parties, labour and professional organisations

            8. 8. Environmental protection

            9. 9. Services n.e.c.

        2. ACCOUNTS

          1. Table A.IV.1 — Account 0: Goods and services account

          2. Table A.IV.2 — Full sequence of accounts for the total...

            1. I: Production account

            2. II: Distribution and use of income accounts

              1. II.1: Primary distribution of income account

                1. II.1.1: Generation of income account

                2. II.1.2: Allocation of primary income account

                  1. II.1.2.1: Entrepreneurial income account

                  2. II.1.2.2: Allocation of other primary income account

              2. II.2: Secondary distribution of income account

              3. II.3: Redistribution of income in kind account

              4. II.4: Use of income account

                1. II.4.1: Use of disposable income account

                2. II.4.2: Use of adjusted disposable income account

            3. III: Accumulation accounts

              1. III.1: Capital account

                1. III.1.1: Change in net worth due to saving and capital transfers...

                2. III.1.2: Acquisition of non-financial assets account

              2. III.2: Financial account

              3. III.3: Other changes in assets accounts

                1. III.3.1: Other changes in volume of assets account

                2. III.3.2: Revaluation account

                  1. III.3.2.1: Neutral holding gains/losses account

                  2. III.3.2.2: Real holding gains/losses account

            4. IV: Balance sheets

              1. IV.1: Opening balance sheet

              2. IV.2: Changes in balance sheet

              3. IV.3: Closing balance sheet

          3. Table A.IV.3 — Full sequence of accounts for non-financial corporations...

            1. I: Production account

            2. II: Distribution and use of income accounts

              1. II.1: Primary distribution of income account

                1. II.1.1: Generation of income account

                2. II.1.2: Allocation of primary income account

                  1. II.1.2.1: Entrepreneurial income account

                  2. II.1.2.2: Allocation of other primary income account

              2. II.2: Secondary distribution of income account

              3. II.4: Use of income account

                1. II.4.1: Use of disposable income account

            3. III: Accumulation accounts

              1. III.1: Capital account

                1. III.1.1: Change in net worth due to saving and capital transfers...

                2. III.1.2: Acquisition of non-financial assets account

              2. III.2: Financial account

              3. III.3: Other changes in assets accounts

                1. III.3.1: Other changes in volume of assets account

                2. III.3.2: Revaluation account

                  1. III.3.2.1: Neutral holding gains/losses account

                  2. III.3.2.2: Real holding gains/losses account

            4. IV: Balance sheets

              1. IV.1: Opening balance sheet

              2. IV.2: Changes in balance sheet

              3. IV.3: Closing balance sheet

          4. Table A.IV.4 — Full sequence of accounts for financial corporations...

            1. I: Production account

            2. II: Distribution and use of income accounts

              1. II.1: Primary distribution of income account

                1. II.1.1: Generation of income account

                2. II.1.2: Allocation of primary income account

                  1. II.1.2.1: Entrepreneurial income account

                  2. II.1.2.2: Allocation of other primary income account

              2. II.2: Secondary distribution of income account

              3. II.4: Use of income account

                1. II.4.1: Use of disposable income account

            3. III: Accumulation accounts

              1. III.1: Capital account

                1. III.1.1: Change in net worth due to saving and capital transfers...

                2. III.1.2: Acquisition of non-financial assets account

              2. III.2: Financial account

              3. III.3: Other changes in assets accounts

                1. III.3.1: Other changes in volume of assets account

                2. III.3.2: Revaluation account

                  1. III.3.2.1: Neutral holding gains/losses account

                  2. III.3.2.2: Real holding gains/losses account

            4. IV: Balance sheets

              1. IV.1: Opening balance sheet

              2. IV.2: Changes in balance sheet

              3. IV.3: Closing balance sheet

          5. Table A.IV.5 — Full sequence of accounts for general government...

            1. I: Production account

            2. II: Distribution and use of income accounts

              1. II.1: Primary distribution of income account

                1. II.1.1: Generation of income account

                2. II.1.2: Allocation of primary income account

                  1. II.1.2.1: Entrepreneurial income account

                  2. II.1.2.2: Allocation of other primary income account

              2. II.2: Secondary distribution of income account

              3. II.3: Redistribution of income in kind account

              4. II.4: Use of income account

                1. II.4.1: Use of disposable income account

                2. II.4.2: Use of adjusted disposable income account

            3. III: Accumulation accounts

              1. III.1: Capital account

                1. III.1.1: Change in net worth due to saving and capital transfers...

                2. III.1.2: Acquisition of non-financial assets account

              2. III.2: Financial account

              3. III.3: Other changes in assets accounts

                1. III.3.1: Other changes in volume of assets account

                2. III.3.2: Revaluation account

                  1. III.3.2.1: Neutral holding gains/losses account

                  2. III.3.2.2: Real holding gains/losses account

            4. IV: Balance sheet

              1. IV.1: Opening balance sheet

              2. IV.2: Changes in balance sheet

              3. IV.3: Closing balance sheet

          6. Table A.IV.6 — Full sequence of accounts for households

            1. I: Production account

            2. II: Distribution and use of income accounts

              1. II.1: Primary distribution of income account

                1. II.1.1: Generation of income account

                2. II.1.2: Allocation of primary income account

                  1. II.1.2.1: Entrepreneurial income account

                  2. II.1.2.2: Allocation of other primary income account

              2. II.2: Secondary distribution of income account

              3. II.3: Redistribution of income in kind account

              4. II.4: Use of income account

                1. II.4.1: Use of disposable income account

                2. II.4.2: Use of adjusted disposable income account

            3. III: Accumulation accounts

              1. III.1: Capital account

                1. III.1.1: Change in net worth due to saving and capital transfers...

                2. III.1.2: Acquisition of non-financial assets account

              2. III.2: Financial account

              3. III.3: Other changes in assets accounts

                1. III.3.1: Other changes in volume of assets account

                2. III.3.2: Revaluation account

                  1. III.3.2.1: Neutral holding gains/losses account

                  2. III.3.2.2: Real holding gains/losses account

            4. IV: Balance sheets

              1. IV.1: Opening balance sheet

              2. IV.2: Changes in balance sheet

              3. IV.3: Closing balance sheet

          7. Table A.IV.7 — Full sequence of accounts for non-profit institutions...

            1. I: Production account

            2. II: Distribution and use of income accounts

              1. II.1: Primary distribution of income account

                1. II.1.1: Generation of income account

                2. II.1.2: Allocation of primary income account

                  1. II.1.2.1: Entrepreneurial income account

                  2. II.1.2.2: Allocation of other primary income account

              2. II.2: Secondary distribution of income account

              3. II.3: Redistribution of income in kind account

              4. II.4: Use of income account

                1. II.4.1: Use of disposable income account

                2. II.4.2: Use of adjusted disposable income account

            3. III: Accumulation accounts

              1. III.1: Capital account

                1. III.1.1: Change in net worth due to saving and capital transfers...

                2. III.1.2: Acquisition of non-financial assets account

              2. III.2: Financial account

              3. III.3: Other changes in assets accounts

                1. III.3.1: Other changes in volume of assets account

                2. III.3.2: Revaluation account

                  1. III.3.2.1: Neutral holding gains/losses account

                  2. III.3.2.2: Real holding gains/losses account

            4. IV: Balance sheets

              1. IV.1: Opening balance sheet

              2. IV.2: Changes in balance sheet

              3. IV.3: Closing balance sheet

      18. ANNEX V

        DEFINITION OF GOVERNMENT DEFICIT FOR THE PURPOSE OF THE EXCESSIVE DEFICIT PROCEDURE

        1. For the purpose of the Member States' reports to the...

    2. ANNEX B

      1. TRANSMISSION PROGRAMME OF NATIONAL ACCOUNTS DATA

      2. DATA TRANSMISSION

        1. 1. The breakdowns A*3, A*10, A*21, A*38 and A*64 derived from...

        2. 2. Until 31 December 2014 , the transmission of Table 10...

        3. 3. The transmission of Table 12 shall use either the NACE...

        4. 4. The data transmission according to the breakdowns A*38 and A*64...

        5. 5. With the first transmission due after 31 August 2011 under...

        6. 6. With the first transmission due after 31 August 2012 of...

        7. 7. For Tables 15, 16, 17, 18 and 19, no backward...

      3. DEROGATIONS BY MEMBER STATE

        1. 1. BELGIUM

          1. 1.1. Derogations for tables

          2. 1.2. Derogations for single variables/items in the tables

        2. 2. BULGARIA

          1. 2.1. Derogations for tables

          2. 2.2. Derogations for single variables/items in the tables

        3. 3. CZECH REPUBLIC

          1. 3.1. Derogations for tables

          2. 3.2. Derogations for single variables/items in the tables

        4. 4. DENMARK

          1. 4.1. Derogations for tables

          2. 4.2. Derogations for single variables/items in the tables

        5. 5. GERMANY

          1. 5.1. Derogations for tables

          2. 5.2. Derogations for single variables/items in the tables

        6. 6. ESTONIA

          1. 6.1. Derogations for tables

          2. 6.2. Derogations for single variables/items in the tables

        7. 7. GREECE

          1. 7.1. Derogations for tables

          2. 7.2. Derogations for single variables/items in the tables

        8. 8. SPAIN

          1. 8.1. Derogations for tables

          2. 8.2. Derogations for single variables/items in the tables

        9. 9. FRANCE

          1. 9.1. Derogations for tables

          2. 9.2. Derogations for single variables/items in the tables

        10. 9a. CROATIA

          1. 9a.1 Derogations for tables

          2. 9a.2 Derogations for single variables/items in the tables

        11. 10. IRELAND

          1. 10.1. Derogations for tables

          2. 10.2. Derogations for single variables/items in the tables

        12. 11. ITALY

          1. 11.1. Derogations for tables

          2. 11.2. Derogations for single variables/items in the tables

        13. 12. CYPRUS

          1. 12.1. Derogations for tables

          2. 12.2. Derogations for single variables/items in the tables

        14. 13. LATVIA

          1. 13.1. Derogations for tables

          2. 13.2. Derogations for single variables/items in the tables

        15. 14. LITHUANIA

          1. 14.1. Derogations for tables

          2. 14.2. Derogations for single variables/items in the tables

        16. 15. LUXEMBOURG

          1. 15.1. Derogations for tables

          2. 15.2. Derogations for single variables/items in the tables

        17. 16. HUNGARY

          1. 16.1. Derogations for tables

          2. 16.2. Derogations for single variables/items in the tables

        18. 17. MALTA

          1. 17.1. Derogations for tables

          2. 17.2. Derogations for single variable/item in the tables

        19. 18. NETHERLANDS

          1. 18.2. Derogations for single variables/items in the tables

        20. 19. AUSTRIA

          1. 19.1. Derogations for tables

          2. 19.2. Derogations for single variables/items in the tables

        21. 20. POLAND

          1. 20.1. Derogations for tables

          2. 20.2. Derogations for single variables/items in the tables

        22. 21. PORTUGAL

          1. 21.1. Derogations for tables

          2. 21.2. Derogations for single variables/items in the tables

        23. 22. ROMANIA

          1. 22.1. Derogations for tables

          2. 22.2. Derogations for single variables/items in the tables

        24. 23. SLOVENIA

          1. 23.1. Derogations for tables

          2. 23.2. Derogations for single variables/items in the tables

        25. 24. SLOVAKIA

          1. 24.1. Derogations for tables

          2. 24.2. Derogations for single variables/items in the tables

        26. 25. FINLAND

          1. 25.2. Derogations for single variables/items in the tables

        27. 26. SWEDEN

          1. 26.1. Derogations for tables

          2. 26.2. Derogations for single variables/items in the tables

        28. 27. UNITED KINGDOM

          1. 27.1. Derogations for tables

          2. 27.2. Derogations for single variables/items in the tables

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