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Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union (Text with EEA relevance)
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Article 5.Date of application and of first transmission of data
CHAPTER 1 GENERAL FEATURES AND BASIC PRINCIPLES
1.01 The European System of Accounts (hereinafter referred to as 'the...
1.02 The predecessor of the ESA 2010, the European System of...
1.03 The structure of this manual is as follows. Chapter 1...
1.04 Chapter 13 describes the purposes, concepts and compilation issues in...
1.05 The structure of the ESA 2010 is consistent with the...
1.06 The ESA framework consists of two main sets of tables:...
1.07 The sector accounts provide, by institutional sector, a systematic description...
1.08 The input-output framework, through the supply and use tables, sets...
1.09 The ESA 2010 encompasses concepts of population and employment. Such...
1.10 The ESA 2010 is not restricted to annual national accounting,...
1.11 The ESA 2010 exists alongside the 2008 SNA because of...
1.12 In order that levies and benefits are distributed according to...
1.14 The ESA 2010 concepts are in several instances more specific...
1.15 An example of where it has been considered necessary to...
Characteristics of the ESA 2010 concepts
1.20 In order to establish a balance between data needs and...
1.21 The concepts in the ESA 2010 are internationally compatible because:...
1.22 The concepts in the ESA 2010 are harmonised with those...
1.23 The shared concepts used throughout the national accounting framework and...
1.25 However, the data needed for national accounts statistics may not...
1.26 Nevertheless, administrative data sources meet the data needs of national...
1.27 The main concepts in the ESA are well-established and fixed...
1.28 The concepts in the ESA 2010 are focused on describing...
1.30 The following fall outside the production boundary, and shall not...
1.31 The ESA records all outputs that result from production within...
1.32 If activities are regarded as production and their output is...
1.34 Sector accounts are created by allocating units to sectors and...
1.35 It is important that clear and robust criteria for allocating...
1.36 Control is defined as the ability to determine the general...
1.37 Differentiating between market and non-market, and so, for public sector...
1.38 The detail in the conceptual framework of the ESA offers...
1.39 Flexibility exists also through the possibility to introduce additional criteria...
1.40 For some data needs, separate satellite accounts should be drawn...
1.42 A social accounting matrix (SAM) is a matrix presentation that...
1.43 In satellite accounts, all basic concepts and classifications of the...
1.44 In general terms, the central framework does not include measures...
1.45 Satellite accounts enable such statistics in non-monetary units to be...
1.46 The central framework and its major aggregates do not describe...
1.47 The extended accounts can also reclassify the final expenditure on...
1.48 In order to attain a consistent, internationally compatible framework, administrative...
1.49 A similar approach could be taken for concepts used in...
BASIC PRINCIPLES OF THE ESA 2010 AS A SYSTEM
1.64 Two basic kinds of information are recorded: flows and stocks....
The system of accounts and the aggregates
1.106 Consolidation refers to the elimination, from both uses and resources,...
1.107 As a matter of principle, flows and stocks between constituent...
1.108 However, consolidated accounts may be built up for complementary presentations...
1.109 Moreover, the accounts and tables showing the creditor/debtor relationship provide...
1.114 Current accounts deal with the production, generation, distribution and redistribution...
1.115 The sequence of accounts for local KAUs and industries is...
1.118 A balancing item is obtained by subtracting the total value...
1.119 The first account in the sequence is the production account,...
1.120 The value added is taken forward to the next account...
1.121 Then the value added, broken down between compensation of employees,...
1.122 The next account records redistribution of these incomes through transfers...
1.123 The main sequence of core accounts carries on to the...
1.124 At the same time a parallel account is created, the...
1.126 Finally, the financial accounts are met, where the detailed lending...
1.127 Considering the bottom row of the diagram, the left-hand account...
1.128 Moving from left to right from the opening balances, the...
1.129 However, changes can occur outside the economic cycle of production...
CHAPTER 2 UNITS AND GROUPINGS OF UNITS
2.01 The economy of a country is a system whereby institutions...
2.02 The units and groupings of units used in national accounts...
THE LIMITS OF THE NATIONAL ECONOMY
2.04 The units which constitute the economy of a country and...
2.07 Centre of predominant economic interest indicates that a location exists...
2.09 For units other than households, in respect of all their...
2.10 Households, except in their capacity as owners of land and...
2.11 All units, in their capacity as owners of land and/or...
2.31 Macroeconomic analysis does not consider the actions of each institutional...
2.32 Each sector and subsector groups together the institutional units which...
2.33 The institutional units are grouped into sectors on the basis...
2.34 Diagram 2.1 shows how units are allocated to the main...
2.35 Control over a financial or non-financial corporation shall be defined...
2.36 A single institutional unit (another corporation, a household, a non-profit...
2.37 In order to control more than half the shareholders' voting...
2.38 General government secures control over a corporation as a result...
2.39 For non-profit institutions recognised as independent legal entities, the five...
2.40 Differentiating between market and non-market, and so for public sector...
2.41 A sector shall be divided into subsectors according to the...
2.42 When the principal function of the institutional unit is to...
2.43 Table 2.2 shows the type of producer and the principal...
Non-financial corporations (S.11)
2.45 Definition: the non-financial corporations sector (S.11) consists of institutional units...
2.47 Non-financial quasi-corporations are all entities which are market producers principally...
2.48 The existence of a complete set of accounts, including balance...
2.49 Non-financial corporations include notional resident units which are treated as...
2.50 The non-financial corporations sector is divided into three subsectors:
2.55 Definition: the financial corporations sector (S.12) consists of institutional units...
2.56 Financial intermediation is the activity in which an institutional unit...
2.57 The financial intermediation process channels funds between third parties with...
2.58 In the financial intermediation process, all categories of liabilities may...
2.59 The function of insurance corporations and pension funds consists of...
2.60 Investment funds, hereinafter referred to as money market funds (MMFs)...
2.61 Financial intermediation is limited to acquiring assets and incurring liabilities...
2.62 Exceptions to the general limitation of financial intermediation to financial...
Financial corporations other than financial intermediaries and financial auxiliaries
Institutional units included in the financial corporations sector
Combining subsectors of financial corporations
2.67 Monetary financial institutions (MFIs) as defined by the ECB consist...
2.68 Other monetary financial institutions consist of those financial intermediaries through...
2.69 Financial intermediaries dealing with the pooling of risks are insurance...
2.70 Financial corporations except MFI and ICPF consist of the non-MMF...
Subdividing subsectors of financial corporations into public, national private and...
Other financial intermediaries, except insurance corporations and pension funds (S.125)...
2.86 Definition: the other financial intermediaries, except insurance corporations and pension...
2.88 The other financial intermediaries, except insurance corporations and pension funds...
2.89 Subsector S.125 does not include non-profit institutions recognised as independent...
Financial vehicle corporations engaged in securitisation transactions (FVC)
Security and derivative dealers, financial corporations engaged in lending and...
2.91 Security and derivative dealers (on own account) are financial intermediaries...
2.92 Financial corporations engaged in lending include for example financial intermediaries...
2.93 Specialised financial corporations are financial intermediaries, for example:
2.94 Head offices which oversee and manage a group of subsidiaries...
2.105 Definition: the pension funds subsector (S.129) consists of all financial...
2.106 Subsector S.129 consists of only those social insurance pension funds...
2.107 Examples of participants in pension fund schemes include employees of...
2.109 Pension fund schemes may be organised by employers or by...
Sector classification of producer units for main standard legal forms...
2.135 The following overview and paragraphs 2.31 to 2.44 summarise the...
2.136 Private and public corporations which are market producers are classified...
2.137 Cooperatives and partnerships which are recognised as independent legal entities...
2.138 Public producers which by virtue of special legislation are recognised...
2.139 Public producers which are not recognised as independent legal entities...
2.141 Sole proprietorships and partnerships which are not recognised as independent...
2.143 Table 2.5 shows in schematic form the various cases enumerated...
CHAPTER 3 TRANSACTIONS IN PRODUCTS AND NON-PRODUCED ASSETS
3.07 Definition: production is an activity carried out under the control,...
3.09 Production excludes the production of domestic and personal services that...
3.14 Definition: output is the total of products created during the...
3.15 When an institutional unit contains more than one local KAU,...
3.16 Three types of output are distinguished in the ESA 2010:...
3.17 Definition: market output consists of output that is disposed of...
3.19 Definition: economically significant prices are prices that have a substantial...
3.20 Definition: output produced for own final use consists of goods...
3.21 Products retained for own final consumption can only be produced...
3.22 Products used for own capital formation can be produced by...
3.23 Definition: non-market output is output that is provided to other...
3.24 Definition: market producers are local KAUs or institutional units the...
3.25 Definition: producers for own final use are local KAUs or...
3.26 Definition: non-market producers are local KAUs or institutional units the...
Institutional units: distinction between market, for own final use and...
3.27 For institutional units as producers, the distinction between market, for...
3.28 Table 3.1 shows that, in order to determine whether an...
3.29 As Table 3.1 shows, private producers are found in all...
3.30 A specific category of private producers is that of unincorporated...
3.31 For other private producers, a distinction is made between private...
3.32 In distinguishing between market and non-market output and between market...
3.33 In applying this quantitative market-non-market criterion, sales and production costs...
3.34 Sales may consist of various elements. For example, in the...
3.35 Private non-profit institutions serving businesses are a special case. They...
3.36 In applying the criterion of comparing sales and production costs...
3.37 Public producers can be market producers or non-market producers. Market...
3.38 Local KAUs as market producers and as producers for own...
3.39 Local KAUs as non-market producers can supply as secondary output...
3.40 Other examples are sales of reproductions by government museums and...
3.41 Non-market producers may also have revenues from the sale of...
Time of recording and valuation of output
3.44 Definition: the basic price is the price receivable by the...
3.46 Additions to work-in-progress are valued at the current basic price...
3.48 For buildings and structures acquired in an incomplete state, a...
3.49 The total output of a non-market producer (a local KAU)...
3.50 The total output of an institutional unit is the sum...
3.51 In the absence of secondary market output by non-market producers,...
3.52 Market output by non-market producers is valued at basic prices....
3.53 A list of exceptions and clarifications to the times of...
Manufactured products (Section C); construction work (Section F)
Wholesale and retail trade services; repair services of motor vehicles...
Transportation and storage (Section H)
3.57 The output of transport services is measured by the value...
3.58 The output of storage services is measured as the value...
3.59 Most changes in prices of goods while in inventories are...
3.60 The output of travel agency services is measured as the...
3.61 The output of tour operator services is measured by the...
3.62 Travel agency services and tour operator services are distinguished by...
Financial and insurance services (Section K): output of the central...
Financial and insurance services (Section K): financial services in general...
3.66 Other financial services include monitoring services such as monitoring the...
3.67 Financial services are produced almost exclusively by financial institutions because...
3.68 Financial services may be paid for directly or indirectly. Some...
Financial services paid for through loading interest charges
Financial services consisting of acquiring and disposing of financial assets...
Financial services provided in insurance and pension schemes, where activity...
Real estate services (Section L)
3.75 The output of services of owner-occupied dwellings is valued at...
3.76 To estimate the value of owner-occupied dwelling services, the stratification...
3.77 The rental to be applied to owner-occupied dwellings in the...
3.78 The stratification method is used for grossing up to all...
3.79 In the absence of a sufficiently large rental market, where...
3.80 The output of real estate services of non-residential buildings is...
Professional, scientific and technical services (Section M); Administrative and support...
Public administration and defence services, compulsory social security services (Section...
Education services (Section P); human health and social work services...
Arts, entertainment and recreation services (Section R); other services (Section...
Final consumption expenditure (P.3)
3.94 Definition: final consumption expenditure consists of expenditure incurred by resident...
3.95 Household final consumption expenditure includes the following examples:
3.96 Household final consumption expenditure excludes the following:
3.97 Final consumption expenditure of NPISHs includes two separate categories:
3.98 Final consumption expenditure (P.3) by government includes two categories of...
3.99 Corporations do not make final consumption expenditures. Their purchases of...
Actual final consumption (P.4)
3.100 Definition: actual final consumption consists of the goods or services...
3.101 Definition: goods and services for individual consumption ('individual goods and...
3.102 Definition: collective services are services for collective consumption that are...
3.103 All household final consumption expenditure is individual. All goods and...
3.104 For the goods and services provided by government units, the...
3.106 Collective consumption expenditure is the remainder of the government final...
3.107 The relationships between the various consumption concepts employed can be...
3.108 Final consumption expenditure of NPISHs is all individual. Total actual...
3.109 There are no social transfers in kind with the rest...
Time of recording and valuation of final consumption expenditure
3.111 Expenditure on goods acquired under a hire purchase or similar...
3.112 Own-account consumption is recorded when the output retained for own...
3.113 The final consumption expenditure of households is recorded at purchasers'...
3.114 Goods and services supplied as employee compensation in kind are...
3.115 Retained goods or services for own consumption are valued at...
3.116 Final consumption expenditures by general government or NPISHs on products...
3.117 Final consumption expenditure (P.3) by general government or NPISHs is...
3.123 Gross capital formation is measured gross of consumption of fixed...
Gross fixed capital formation (P.51g)
3.124 Definition: gross fixed capital formation (P.51) consists of resident producers'...
3.125 Gross fixed capital formation consists of both positive and negative...
3.127 The following types of gross fixed capital formation are distinguished:...
3.129 Gross fixed capital formation includes the following borderline cases:
3.131 Gross fixed capital formation in the form of improvements to...
3.132 Intellectual property products are the result of research and development,...
3.133 For both fixed assets and non-produced non-financial assets, the costs...
Time of recording and valuation of gross fixed capital formation...
3.134 Gross fixed capital formation is recorded when the ownership of...
3.135 Gross fixed capital formation is valued at purchasers' prices including...
3.136 Acquisitions of intellectual property products are valued in different ways:...
3.137 Disposals of existing fixed assets by sale are valued at...
3.138 Costs of ownership transfer can apply to both produced assets,...
Consumption of fixed capital (P.51c)
3.139 Definition: consumption of fixed capital (P.51c) is the decline in...
3.140 Consumption of fixed capital shall be calculated for all fixed...
3.141 Consumption of fixed capital is different from the depreciation allowed...
3.142 Losses of fixed assets occurring as a result of accidental...
3.143 Consumption of fixed capital shall be calculated according to the...
3.144 In some cases, the geometric depreciation method is used when...
3.145 In the system of accounts, consumption of fixed capital is...
3.146 Definition: changes in inventories are measured by the value of...
3.147 Due to physical deterioration, or accidental damage or pilfering, recurrent...
Time of recording and valuation of changes in inventories
3.149 The time of recording and the valuation of changes in...
3.150 In measuring changes in inventories, goods entering inventories are valued...
3.151 The prices used to value goods in changes in inventories...
3.152 Losses as a result of physical deterioration, insurable accidental damage...
3.153 Where information is lacking, the following approximate methods for the...
EXPORTS AND IMPORTS OF GOODS AND SERVICES (P.6 and P.7)...
3.158 Definition: exports of goods and services consist of transactions in...
3.159 Definition: imports of goods and services consist of transactions in...
3.160 Exports and imports of goods and services do not include:...
3.161 Imports and exports of goods and services are distinguished into:...
Exports and imports of goods (P.61 and P.71)
3.162 Imports and exports of goods occur when economic ownership of...
3.163 For deliveries between affiliated enterprises (branch or subsidiary, or foreign...
3.164 Exports of goods occur without the goods crossing the country's...
3.165 Imports and exports of goods include transactions between residents and...
3.166 Imports and exports of goods exclude the following goods which...
3.167 Imports and exports of goods are recorded when the ownership...
3.170 Proxies or substitute measures for the FOB value may be...
Exports and imports of services (P.62 and P.72)
3.171 Definition: exports of services consist of all services rendered by...
3.172 Definition: imports of services consist of all services rendered by...
3.174 There is an equivalent import of service as a mirror...
3.175 Imports of transport services include the following examples:
3.176 Imports in respect of direct purchases abroad by residents cover...
3.177 Imports and exports of services are recorded at the time...
3.178 Explanation of how to read this table: the first part...
3.179 Explanation of how to read this table: the first part...
ACQUISITIONS LESS DISPOSALS OF NON-PRODUCED ASSETS (NP)
3.184 Definition: non-produced assets consist of assets that have not been...
3.185 Three categories of acquisition less disposals of non-produced assets are...
3.186 Natural resources shall comprise the following categories:
3.187 Land is defined as the ground itself, including soil covering...
3.188 The following items are not included under the heading of...
3.189 Acquisitions and disposals of land and other natural resources are...
3.190 Contracts, leases and licenses as non-produced assets consist of the...
3.191 Contracts, leases and licenses as a category of non-produced assets...
3.192 Definition: the value of goodwill and marketing assets is the...
3.193 Goodwill is only recorded when its value is evidenced by...
3.194 Acquisitions less disposals of non-produced assets are recorded in the...
CHAPTER 4 DISTRIBUTIVE TRANSACTIONS
4.01 Definition: distributive transactions are transactions whereby the value added generated...
TAXES ON PRODUCTION AND IMPORTS (D.2)
4.14 Definition: taxes on production and imports (D.2) consist of compulsory,...
4.15 Taxes on production and imports are comprised of the following...
Taxes on production and imports paid to the institutions of...
Taxes on production and imports: time of recording and amounts...
4.30 Definition: subsidies (D.3) are current unrequited payments which general government...
4.31 Subsidies granted by the institutions of the European Union cover...
4.41 Definition: property income (D.4) accrues when the owners of financial...
Distributed income of corporations (D.42)
Withdrawals from the income of quasi-corporations (D.422)
4.58 Definition: withdrawals from the income of quasi-corporations (D.422) are the...
4.60 Withdrawals from the income of quasi-corporations include the net operating...
4.61 Withdrawals from the income of quasi-corporations do not include amounts...
4.62 Time of recording: withdrawals from the income of quasi-corporations are...
4.63 In the system of accounts, withdrawals from the income of...
Reinvested earnings on foreign direct investment (D.43)
4.64 Definition: reinvested earnings on foreign direct investment (D.43) are equal...
4.65 A foreign direct investment enterprise is an incorporated or unincorporated...
4.66 Actual distributions may be made from the entrepreneurial income of...
4.67 Time of recording: reinvested earnings on foreign direct investment are...
SOCIAL CONTRIBUTIONS AND BENEFITS (D.6)
4.83 Definition: social benefits are transfers to households, in cash or...
4.88 Definition: social insurance schemes are schemes in which participants are...
4.89 Two types of social insurance schemes may be distinguished:
4.90 Social insurance schemes organised by government units for their own...
Net social contributions (D.61)
4.91 Definition: net social contributions are the actual or imputed contributions...
Employers' actual social contributions (D.611)
4.92 Employers' actual social contributions (D.611) correspond to flow D.121.
4.93 Payments of actual social contributions may be compulsory by virtue...
4.94 Time of recording: employers' actual social contributions (D.611) are recorded...
4.95 Social contributions payable to the general government sector recorded in...
4.96 Employers' actual social contributions are recorded as:
Social benefits other than social transfers in kind (D.62)
Non-life insurance claims (D.72)
4.114 Definition: non-life insurance claims (D.72) are the claims due under...
4.115 Non-life insurance claims does not include payments which constitute social...
4.116 Net reinsurance premiums and claims are calculated in exactly the...
4.117 Time of recording: non-life insurance claims are recorded at the...
ADJUSTMENT FOR THE CHANGE IN PENSION ENTITLEMENTS (D.8)
4.141 Definition: the adjustment for the change in pension entitlements (D.8)...
4.142 Since households are treated in the financial accounts and balance...
4.143 Time of recording: the adjustment is recorded according to the...
4.144 The adjustment for the change in pension entitlements is recorded...
4.145 Definition: capital transfers require the acquisition or disposal of an...
4.146 A capital transfer in kind consists of the transfer of...
4.147 Capital transfers include capital taxes (D.91), investment grants (D.92) and...
4.152 Definition: investment grants (D.92) consist of capital transfers in cash...
4.153 Investment grants in kind consist of transfers of transport equipment,...
4.154 The value of capital formation carried out by general government...
4.155 Investment grants (D.92) include both lump sum payments designed to...
4.156 Grants for interest relief made by general government are excluded...
4.157 Investment grants to non-financial corporate and quasi-corporate enterprises include, in...
4.158 Investment grants to the households sector include equipment and modernisation...
4.159 Investment grants to general government include payments (except grants for...
4.160 Investment grants to non-profit institutions from general government and from...
4.161 Investment grants to the rest of the world are restricted...
4.162 Time of recording: investment grants in cash are recorded when...
4.168 A particular form of income in kind is the practice...
4.169 Typically an employer informs his employees of the decision to...
4.170 The International Accounting Standards Board (IASB) accounting recommendations are that...
4.171 In the ESA, if there is neither an observable market...
4.172 Before the option is exercised, the arrangement between the employer...
4.174 The costs of administering ESOs are borne by the employer...
4.175 Although the value of the stock option is treated as...
4.176 In the financial account, the acquisition of ESOs by households...
4.177 In principle, any change in value between the grant date...
CHAPTER 5 FINANCIAL TRANSACTIONS
5.01 Definition: financial transactions (F) are transactions in financial assets (AF)...
5.02 A financial transaction between institutional units is a simultaneous creation...
GENERAL FEATURES OF FINANCIAL TRANSACTIONS
Financial assets, financial claims, and liabilities
5.03 Definition: financial assets consist of all financial claims, equity and...
5.04 Financial assets are stores of value representing a benefit or...
5.05 Definition: a financial claim is the right of a creditor...
5.06 Definition: liabilities are established when a debtor is obliged to...
5.07 The gold bullion component of monetary gold, held by monetary...
5.19 Financial transactions are recorded at transaction values, that is, the...
5.20 Financial transactions and their financial or non-financial counterpart transactions are...
5.21 The transaction value refers to a specific financial transaction and...
5.22 The transaction value does not include service charges, fees, commissions,...
Accounting rules for financial transactions
5.32 Quadruple-entry is an accounting practice in which each transaction involving...
5.33 A financial transaction always has a counterpart transaction. This counterpart...
5.34 Where a transaction and its counterpart are both financial transactions,...
5.35 The counterpart of a financial transaction may be a non-financial...
A financial transaction with a current or a capital transfer...
5.36 The counterpart transaction of a financial transaction may be a...
5.37 If the owner of a quasi-corporation assumes liabilities from or...
5.38 If government cancels or assumes debt from a public corporation...
5.39 If government cancels or assumes debt from a public corporation...
5.40 The writing-off or writing-down of bad debts by creditors and...
A financial transaction with property income as counterpart
5.41 The counterpart transaction of a financial transaction may be property...
5.42 Interest (D.41) is receivable by creditors and payable by debtors...
5.43 Interest is recorded as accruing continuously over time to the...
5.44 When accrued interest is not paid when due, it gives...
5.45 Income of corporations comprises dividends (D.421), withdrawals of income from...
5.46 Dividends are recorded as investment income at the time the...
5.47 Property income receivable by investment funds, net of a part...
5.48 Investment income is attributed to insurance policy holders (D.44), holders...
A from-whom-to-whom financial account
5.52 The from-whom-to-whom financial account or the financial account by debtor/creditor...
5.53 Based on the principle of quadruple-entry accounting a from-whom-to-whom financial...
5.54 The table for the financial instrument debt securities category shows...
5.55 The from-whom-to-whom financial account allows analysis of who is financing...
CLASSIFICATION OF FINANCIAL TRANSACTIONS BY CATEGORIES IN DETAIL
Monetary gold and special drawing rights (F.1)
5.56 The monetary gold and special drawing rights (SDRs) (F.1) category...
5.57 Definition: monetary gold is gold to which monetary authorities have...
5.58 Monetary authorities include the central bank and central government institutions...
5.59 Being subject to the effective control of monetary authorities means...
5.60 All monetary gold is included in reserve assets or is...
5.61 Gold bullion included in monetary gold is the only financial...
5.62 Allocated gold accounts provide ownership of a specific piece of...
5.63 In contrast to allocated gold accounts, unallocated gold accounts represent...
5.64 Transactions in monetary gold consist predominantly of purchases and sales...
5.65 If monetary authorities add non-monetary gold to their holdings of...
5.66 Deposits, loans, and securities denominated in gold are treated as...
5.68 Monetary gold is a financial asset; the fees for gold...
5.69 Definition: SDRs are international reserve assets created by the International...
5.70 The SDR Department of the IMF manages reserve assets by...
5.71 The creation of SDRs through their allocation, and extinguishing them...
5.72 SDRs are held exclusively by official holders, which are central...
5.73 SDRs are assets with matching liabilities but the assets represent...
5.74 Definition: currency and deposits are currency in circulation and deposits,...
5.75 There are three sub-categories of financial transaction in relation to...
5.89 Definition: debt securities are negotiable financial instruments serving as evidence...
Variable interest rate debt securities
5.98 Variable interest rate debt securities have their interest and/or principal...
5.99 Variable interest rate debt securities are usually classified as long-term...
5.100 Inflation-linked and asset price-linked debt securities include those debt securities...
5.101 For interest rate-linked debt securities, the contractual nominal interest and/or...
5.104 Definition: securitisation is the issuance of debt securities for which...
5.105 Securitisation of assets or of future income streams is an...
5.106 Securitisation schemes vary within and across debt securities markets. These...
5.108 It is essential to establish, in particular, whether the financial...
5.109 In the case of the securitisation scheme referred to in...
5.110 An asset-backed security (ABS) is a debt security whose principal...
5.112 Definition: loans are created when creditors lend funds to debtors....
Classification of loans by original maturity, currency, and purpose of...
Distinction between transactions in loans and transactions in deposits
Distinction between transactions in loans and transactions in debt securities...
Distinction between transactions in loans, trade credit and trade bills...
Securities lending and repurchase agreements
5.126 Definition: securities lending is the temporary transfer of securities by...
5.127 Definition: a securities repurchase agreement is an arrangement involving the...
5.128 Securities lending with cash collateral and repurchase agreements (repos) are...
5.129 The securities provided under securities lending and repurchase agreements are...
5.130 Neither the supply and receipt of funds under a securities...
5.131 If a securities lending does not involve the supply of...
5.132 Marginal calls in cash under a repo are classified as...
5.133 Gold swaps are similar to securities repurchase agreements except that...
Equity and investment fund shares or units (F.5)
5.139 Definition: equity and investment fund shares or units are residual...
5.140 Equity and investment fund shares are divided into two subcategories:...
5.143 Definition: depository receipts represent ownership of securities listed in other...
5.145 Both listed shares and unlisted shares are negotiable, and described...
5.153 Definition: other equity comprises all forms of equity other than...
Valuation of transactions in equity
5.155 New shares are recorded at issue value, which is nominal...
5.156 Transactions in shares in circulation are recorded at their transaction...
5.157 Scrip dividend shares are shares valued at the price implied...
5.158 Issues of bonus shares are not recorded. However, in cases...
5.159 The transaction value of equity (F.51) is the amount of...
Insurance, pension and standardised guarantee schemes (F.6)
5.168 Insurance, pension and standardised guarantee schemes are divided into six...
Non-life insurance technical reserves (F.61)
5.169 Definition: non-life insurance technical reserves are financial claims that non-life...
5.170 Transactions in non-life insurance technical reserves for unearned premiums and...
5.171 Unearned premiums are premiums paid but not yet earned. Premiums...
5.172 Claims outstanding are claims due but not yet settled, including...
5.173 Other technical reserves, such as equalisation reserves, may be identified...
Life insurance and annuity entitlements (F.62)
5.174 Definition: life insurance and annuity entitlements consist of financial claims...
5.175 Life insurance and annuity entitlements are used to provide benefits...
5.176 Transactions in life insurance and annuity entitlements consist of additions...
5.177 Additions in terms of financial transactions consist of:
Provisions for calls under standardised guarantees (F.66)
5.188 Definition: provisions for calls under standardised guarantees are financial claims...
5.189 Provisions relating to calls under standardised guarantees are prepayments of...
5.190 Standardised guarantees are guarantees that are issued in large numbers,...
5.191 Although it is not possible to establish the likelihood of...
5.192 Standardised guarantees cover guarantees on various financial instruments like deposits,...
5.193 When an institutional unit offers standardised guarantees, it charges fees...
5.194 A guarantee may cover a multi-year period. A fee may...
5.195 The nature of a standardised guarantee scheme is that there...
5.196 Net fees are calculated as fees receivable plus fee supplements...
Financial derivatives and employee stock options (F.7)
5.198 Financial derivatives and employee stock options are divided into two...
5.199 Definition: financial derivatives are financial instruments linked to a specified...
5.200 Financial derivatives are used for a number of purposes including...
5.201 The value of a financial derivative derives from the price...
5.202 Financial derivatives can be categorised by instrument such as options,...
5.221 Definition: employee stock options are agreements made on a given...
5.222 Transactions in employee stock options are recorded in the financial...
Valuation of transactions in financial derivatives and employee stock options...
5.223 Secondary trade in options and closing out options prior to...
5.224 The transactions recorded for financial derivatives include any trading in...
5.225 Any explicit commissions paid or received from brokers or intermediaries...
5.226 Where contracts do not involve an exchange of principal, no...
5.227 Changes in the value of the financial derivative over time...
5.228 Subsequent re-exchanges of principal will be governed by the terms...
5.229 For an institutional unit, a swap or a forward rate...
Other accounts receivable/payable (F.8)
5.230 Definition: other accounts receivable/payable are financial assets and liabilities created...
5.231 Other accounts receivable/payable include transactions in financial claims which stem...
5.232 Financial transactions in other accounts receivable/payable comprise:
Trade credits and advances (F.81)
5.233 Definition: trade credits and advances are financial claims arising from...
5.234 Trade credits and advances arise when payment for goods or...
5.235 FISIM accrued but not yet paid is included with the...
5.237 Trade credits are to be distinguished from trade finance in...
5.238 Trade credits and advances do not include loans to finance...
5.239 Trade credits and advances may be divided by original maturity...
Other accounts receivable/payable, excluding trade credits and advances (F.89)
5.240 Definition: other accounts receivable/payable are financial claims arising from timing...
5.241 Other accounts receivable/payable include financial claims created as a result...
5.242 Interest accrued and arrears are recorded with the financial asset...
5.243 For securities lending and gold loan fees, which are treated...
ANNEX 5.1 CLASSIFICATION OF FINANCIAL TRANSACTIONS
5.A1.01 Financial transactions may be classified according to different criteria: by...
Classification of financial transactions by type of interest rate
5.A1.09 Financial assets and liabilities accruing interest may be broken down...
5.A1.10 For financial instruments with a fixed interest rate the contractual...
5.A1.11 For financial instruments with a variable interest rate, interest and...
5.A1.12 Mixed interest rate financial instruments have both a fixed and...
OTHER CHANGES IN ASSETS AND LIABILITIES
6.02 Definition: other changes in assets and liabilities are economic flows,...
Other changes in the volume of assets and liabilities (K.1...
6.03 In the capital account, produced and non-produced assets may enter...
6.04 Other changes in the volume of assets and liabilities include...
6.05 Other changes in the volume of assets and liabilities cover...
Changes in classification (K.6)
6.16 Changes in classification comprise changes in sector classification and institutional...
Changes in sector classification and institutional unit structure (K.61)
6.17 Reclassifying an institutional unit from one sector to another transfers...
6.18 Changes in sector classification transfer the entire balance sheet from...
6.19 Changes in structure of institutional units cover appearance and disappearance...
6.20 Symmetrically, when a corporation is legally split up into two...
Changes in classification of assets and liabilities (K.62)
6.21 Changes in classification of assets and liabilities occur where assets...
6.22 Appearance or disappearance of monetary gold held in the form...
6.23 A special case of a change in classification occurs for...
6.24 Operations in relation to gold bullion are recorded as follows....
6.25 Changes in classification of assets and liabilities do not include...
Nominal holding gains and losses (K.7)
6.26 The revaluation account records the nominal holding gains and losses...
6.27 Definition: the nominal holding gains and losses (K.7) that relate...
6.29 The nominal holding gains and losses recorded in the revaluation...
6.30 Holding gains and losses include the gains and losses on...
6.31 Nominal holding gains and losses may accrue on assets held...
6.32 The nominal holding gain (G) accruing on a given quantity...
6.33 To calculate nominal holding gains and losses, acquisitions and disposals...
6.34 An exception to the case described in paragraph 6.33 is...
6.35 Four different situations leading to nominal holding gains and losses...
6.36 The nominal holding gains and losses included are those accruing...
Holding gains and losses by types of financial asset and...
6.54 The interest accruing is recorded in the financial account as...
6.55 The prices of fixed-interest long-term debt securities also change, however,...
6.56 Variable interest rate debt securities have their coupon or principal...
6.57 Nominal holding gains and losses may accrue on short-term debt...
Insurance, pension and standardised guarantee schemes (AF.6)
7.01. Definition: a balance sheet is a statement, drawn up for...
7.03 The balance sheet completes the sequence of accounts, showing the...
7.04 For institutional sectors the balancing item on the balance sheet...
7.05 For the total national economy the balancing item is often...
7.08 For the non-financial corporations and financial corporations sectors and subsectors,...
7.09 The net worth of corporations will usually be different from...
7.10 The balancing item of financial assets and liabilities is called...
7.12 A basic accounting identity links the value of the stock...
7.13 The accounting links between the opening balance sheet and the...
TYPES OF ASSETS AND LIABILITIES
7.14 The assets recorded in the balance sheets are economic assets....
7.15 Definition: an economic asset is a store of value representing...
7.16 The economic benefits consist of primary incomes such as operating...
7.17 The economic owner of an asset is not necessarily the...
7.18 An overview of the classification and coverage of economic assets...
CATEGORIES OF ASSETS AND LIABILITIES
7.20 Two main categories of entries in the balance sheets are...
7.21 Non-financial assets are divided into produced non-financial assets (denoted as...
Non-produced non-financial assets (AN.2)
7.24 Definition: non-produced non-financial assets (AN.2) are economic assets that come...
7.25 The classification of non-produced assets is designed to distinguish assets...
7.26 The choice of which natural assets to include in the...
7.27 Contracts, leases, licences and permits are regarded as non-financial assets...
Financial assets and liabilities (AF)
7.28 Definition: financial assets (AF) are economic assets, comprising all financial...
7.29 Financial assets are stores of value representing a benefit or...
7.30 Each financial asset has a counterpart liability, with the exception...
7.31 Contingent assets and contingent liabilities are agreements whereby one party...
7.32 The classification of financial assets and liabilities corresponds to the...
VALUATION OF ENTRIES IN THE BALANCE SHEETS
7.34 The values recorded should reflect prices observable on the market...
7.35 Market prices are usually available for many financial assets and...
7.36 Non-financial assets produced on own-account should be valued at basic...
7.37 In addition to observed market prices, estimates based on observed...
7.38 Market valuation is the key principle for valuing positions (and...
7.39 Nominal valuation reflects the sum of funds originally advanced, plus...
7.40 For some non-financial assets, the revalued initial acquisition price reduces...
7.41 Most fixed assets can be recorded in balance sheets at...
FINANCIAL ASSETS AND LIABILITIES (AF)
7.61 Financial assets and liabilities as negotiable financial instruments such as...
Equity and investment fund shares/units (AF.5)
7.71 Listed shares (AF.511) are valued at their market values. The...
7.72 Listed shares are valued at a representative mid-market price observed...
7.73 The values of unlisted shares (AF.512), which are not traded...
7.74 The estimation method applied depends on the basic statistics available....
7.77 Quasi-corporations' other equity is valued according to their own funds,...
7.78 Corporations that issue shares or units may additionally have other...
7.79 Investment fund shares or units (AF.52) are valued at market...
Insurance, pension and standardised guarantee schemes (AF.6)
7.80 The amounts recorded for non-life insurance technical reserves (AF.61) cover...
7.81 The amounts recorded for life insurance and annuity entitlements (AF.62)...
7.82 The amounts recorded for pension entitlements (AF.63) depend on the...
7.83 In a defined benefit pension scheme the level of pension...
7.84 In a defined contribution scheme the benefits paid are dependent...
7.85 The value recorded for provisions for calls under standardised guarantees...
7.94 In order to show items of more specialised analytic interest...
7.99 Loans are recorded in the balance sheet at nominal value....
7.100 Certain loans that have not been serviced for some time...
7.101 Definition: a loan is non-performing when (a) payments of interest...
7.102 This definition of a non-performing loan is to be interpreted...
7.103 Two memorandum items are required for non-performing loans:
7.104 The closest approximation to market equivalent value is fair value,...
ANNEX 7.2 A MAP OF ENTRIES FROM OPENING BALANCE SHEET TO CLOSING...
CHAPTER 8 THE SEQUENCE OF ACCOUNTS
8.01 This Chapter sets out the details of the accounts and...
8.10 The production account (I) shows the transactions relating to the...
8.11 The production account reveals one of the most important balancing...
8.12 Value added (the balancing item of the account) may be...
8.13 The production account at the level of the total economy...
8.14 Financial intermediation services indirectly measured (FISIM) are allocated to users...
Distribution and use of income accounts (II)
8.15 Distribution and use of income are analysed in four stages:...
Primary distribution of income accounts (II.1)
Generation of income account (II.1.1)
8.16 The generation of income account is also presented by industries,...
8.17 The generation of income account presents the transactions of primary...
8.18 It shows how value added covers compensation of employees and...
8.19 In the case of unincorporated enterprises in the households sector,...
8.20 In the case of own account production of housing services...
Allocation of primary income account (II.1.2)
8.21 Unlike the generation of income account, the allocation of primary...
8.22 'Primary income' is the income which resident units receive by...
8.23 For the households sector, compensation of employees (D.1) as a...
8.24 The allocation of primary income account (II.1.2) can be calculated...
8.25 The allocation of primary income account is broken down into...
8.44 The accumulation accounts are flow accounts. They record the various...
8.45 Changes in assets are recorded on the left-hand side of...
REST OF THE WORLD ACCOUNTS (V)
8.65 The rest of the world accounts record transactions between resident...
8.66 The sequence of rest of the world accounts follows the...
8.67 The accounts listed in points (a) to (c) of paragraph...
8.83 The integrated economic accounts give a concise overview of the...
8.84 In the table of integrated economic accounts, uses, assets and...
8.85 To make the table readable while giving a picture of...
8.86 The columns in the table represent the institutional sectors, namely:...
8.87 The rows in the table represent the various categories of...
CHAPTER 9 SUPPLY AND USE TABLES AND THE INPUT-OUTPUT FRAMEWORK
9.01 The purpose of this Chapter is to provide an overview...
9.02 The core of the input-output framework is the supply and...
9.03 Supply and use tables are matrices describing the values of...
9.04 A supply table shows the supply of goods and services...
9.06 In the supply and use tables the following identities apply:...
9.07 Supply and use tables are the central framework for industry...
9.09 A symmetric input-output table is shown in Table 9.4, and...
9.10 Most statistical information that can be obtained from producer units...
9.11 By contrast, information of a product-by-product or industry-by-industry nature as...
9.12 Information arranged in the form of supply and use tables...
9.13 Supply and use tables and the input-output framework combine three...
SUPPLY AND USE TABLES IN MORE DETAIL
9.20 The classification used for industries in supply, use and input-output...
9.21 In the supply and use tables, the classification for products...
9.22 Industry and product classifications can be based on three different...
9.23 The industry and product classifications in the national accounts are...
9.24 Local KAUs within one industry can have different production processes....
9.25 Due to the changing economic importance of different industries and...
9.26 The product classification in the supply and use tables is...
9.27 The distinction between market output, output for own final use...
9.28 The distinction between market producers, producers for own final use...
9.29 For analysing the economy of Member States from a European...
Taxes less subsidies on production and imports
9.41 Supply at basic prices includes other taxes less subsidies on...
9.42 Table 9.8 on taxes less subsidies on products is simplified,...
9.43 Taxes and subsidies on products are the amounts due for...
9.44 VAT may be deductible, non-deductible or not applicable:
9.45 VAT is recorded net: all supplies are valued at basic...
TOOL FOR ANALYSIS AND EXTENSIONS
9.54 The use table for imported products is compiled by exploiting...
9.55 The use table for goods and services produced domestically can...
9.56 In theory, four basic models exist for the transformation of...
9.58 The symmetric input-output table can be broken down into two...
9.59 Supply and use tables and symmetric input-output tables can be...
9.60 Industry-by-industry tables are well suited for analyses related to industries,...
9.62 In general, many specific types of analysis are served by...
9.63 In order to serve more specific purposes, the supply and...
CHAPTER 10 PRICE AND VOLUME MEASURES
10.01 In a system of economic accounts, all the flows and...
10.02 When time comparisons of flows and stocks are concerned, equal...
10.03 The general rule for comparisons in space is that accurate...
10.04 Economic accounts have the advantage of providing a suitable framework...
10.05 Despite the advantages of an integrated system based on the...
SCOPE OF PRICE AND VOLUME INDICES IN THE NATIONAL ACCOUNTS...
GENERAL PRINCIPLES OF MEASURING PRICE AND VOLUME INDICES
Quality, price and homogeneous products
10.13 Another way of defining a homogeneous product is to say...
10.14 In practice, however, two units of a product with identical...
10.15 Lack of information means that purchasers may not always be...
10.16 Price discrimination implies that sellers may be in a position...
10.17 Parallel markets may exist for several reasons. Buyers may be...
10.18 Thus, if quality is defined by all the characteristics common...
10.19 The introduction of the notion of volume in national accounts...
10.21 The main advantages of using Paasche price indices and Laspeyres...
10.22 Chained indices present the drawback that they lead to volumes...
10.23 The non-additive volume data calculated with chain indices are to...
10.24 In practice, since it is impossible to measure prices and...
10.25 In view of the equation linking the value, price and...
SPECIFIC PROBLEMS IN THE APPLICATION OF THE PRINCIPLES
10.35 Although essentially limited to transactions involving goods and services, the...
Taxes and subsidies on products and imports
10.36 The possibility mentioned above exists, in particular, in the case...
10.37 The simplest case is that of taxes which represent a...
10.39 The amount of taxes on products, excluding VAT (D.212 and...
10.40 Similarly, the amount of subsidies on products (D.31) is measured...
10.41 VAT on products (D.211) is, both for the whole economy...
INTERSPATIAL PRICE AND VOLUME INDICES
10.48 The fact that countries have different price levels and currencies...
10.49 Instead, purchasing power parities (PPPs) are applied. A PPP is...
10.50 PPPs for market goods and services are based on international...
10.51 For non-market services, interspatial comparisons face the same problem as...
10.52 In the calculation of PPPs, the same index number formulae...
10.53 Explicit numerical weights are usually not available at the level...
10.54 Transitivity implies that the direct PPP between countries A and...
10.55 The resulting set of transitive PPPs for all countries and...
10.56 The European Commission (Eurostat) is responsible for calculating PPPs for...
CHAPTER 11 POPULATION AND LABOUR INPUTS
11.01 Comparisons between countries, or between industries or sectors within the...
11.02 The aim of this Chapter is to describe the frameworks...
11.03 Labour inputs are classified on the basis of the same...
11.04 The aggregates to which the figures for population and labour...
CHAPTER 12 QUARTERLY NATIONAL ACCOUNTS
12.01 This Chapter sets out the major principles and characteristics of...
12.02 Quarterly national accounts are national accounts whose reference period is...
12.03 Quarterly national accounts adopt the same principles, definitions, and structure...
12.04 Quarterly national accounts cover the entire sequence of accounts and...
12.05 Compared to annual national accounts, quarterly national accounts are compiled...
12.06 The time series of quarterly national accounts statistics, due to...
12.07 Quarterly national accounts rely on more limited data sources than...
12.08 The direct approach is based on the availability, at quarterly...
12.09 The purpose of quarterly national accounts is different from that...
12.10 Quarterly national accounts may be used in the compilation of...
12.11 A range of data feeds into the compilation of quarterly...
12.12 The coverage of quarterly national accounts corresponds to the coverage...
SPECIFIC FEATURES OF QUARTERLY NATIONAL ACCOUNTS
12.13 Compilation issues which are especially important for quarterly national accounts...
Balancing and benchmarking of quarterly national accounts
12.23 Quarterly national accounts are a coherent set of accounts compiled...
12.24 The internal consistency of quarterly accounts is achieved by reconciling...
Consistency between quarterly and annual accounts — benchmarking
12.27 The process of alignment of quarterly accounts to annual ones...
12.28 Discrepancies between quarterly and annual accounts are mainly due to...
12.29 Many different methods can be used for reconciling quarterly and...
12.30 When quarterly aggregates are taken as the benchmark, annual aggregates...
12.31 Very often, the reconciliation between quarterly and annual aggregates results...
Chain-linked measures of price and volume changes
12.32 For annual national accounts, the measure of price and volume...
12.33 Consistency between quarterly and annual accounts price and volume measures...
12.34 Whilst quarterly chain-linked volume measures could be based on quarterly...
12.35 Quarterly national accounts chain-linked volume series are quarterly volume changes...
12.36 The annual overlap approach uses the annual average values of...
12.37 By contrast, the one-quarter overlap approach generally leads to undistorted...
12.38 The over-the-year approach of chain linking leads to undistorted year-on-year...
12.39 Provided the substitution effects (changes in volumes due to shifts...
Seasonal and calendar adjustments
12.40 Seasonality is any pattern that recurs on a regular basis...
12.42 The presence of seasonal and calendar effects in quarterly national...
12.43 Seasonal variations are commonly the effect of variations in energy...
12.44 For a reliable estimation of seasonal factors, the time series...
Sequence of compilation of seasonally adjusted chain-linked volume measures
12.45 The compilation of seasonal and calendar adjusted quarterly national accounts...
12.46 The sequence of application of the different steps of the...
12.47 There are quarterly national accounts compilation systems in which seasonally...
12.48 Quarterly national accounts volume measures in average prices of the...
12.49 Seasonally adjusted chain-linked quarterly volume measures are constrained to the...
12.50 The calendar effect can be divided into a seasonal and...
12.51 Calendar adjustment removes those non-seasonal calendar components from the series,...
13.01 This Chapter describes regional accounts in general and clarifies the...
13.02 Definition: regional accounts are a regional specification of the corresponding...
13.03 National accounts concepts shall be used for regional accounts unless...
13.04 Regional accounts comprise the same set of accounts as national...
13.05 In several Member States, regions at various levels have a...
13.06 Regional accounts also serve important specific administrative purposes, e.g.:
13.07 Regional accounts can be used flexibly at various levels of...
13.08 Regional accounts shall be compiled on the basis of regional...
13.13 Two types of units are distinguished for the national economy....
Local kind-of-activity units and regional production activities by industry
13.17 Enterprises can engage in production activities at more than one...
13.18 Institutional units can be classified on the basis of economic...
13.19 The local kind-of-activity unit (local KAU) is the part of...
13.21 When defining a local KAU there are three distinct cases....
13.22 Production transactions between local KAUs, which belong to the same...
13.23 If an establishment undertaking only ancillary activities is statistically observable,...
13.24 Regional accounts are based on the transactions of units that...
13.25 The bottom-up or ascending method of estimating a regional aggregate...
13.26 When information is only available at the level of units...
13.27 The top-down method is distributing a national total across the...
13.28 Bottom-up methods are rarely encountered in their pure form. Mixed...
13.29 Direct measures of regional values are preferred to indirect measures....
13.30 Indirect measurement on the basis of national aggregates and an...
13.31 Aggregates of production are allocated to the region where the...
13.32 For specific industries, like construction, energy production and energy distribution,...
13.33 Gross fixed capital formation is allocated to regions by ownership....
AGGREGATES FOR PRODUCTION ACTIVITIES
Gross value added and gross domestic product by region
13.34 Three approaches can be used for estimating regional gross domestic...
13.35 The production approach measures regional gross domestic product at market...
13.36 The income approach measures regional gross domestic product at market...
13.37 Information on gross operating surplus is generally not available by...
13.38 Taxes (less subsidies) on production consist of taxes (less subsidies)...
13.39 For measuring regional gross domestic product, the expenditure approach is...
REGIONAL HOUSEHOLD INCOME ACCOUNTS
13.49 Distribution and redistribution of income result in balancing items, namely...
13.50 Regional accounts of households are a regional specification of the...
13.51 The regional household accounts are based on the households that...
13.52 The rules for determining the residence of households at the...
13.53 The household accounts can be extended by the use of...
13.54 Allocation by region of final consumption expenditure by households requires...
13.55 Governments can play an important role in providing education, health...
CHAPTER 14 FINANCIAL INTERMEDIATION SERVICES INDIRECTLY MEASURED (FISIM)
CHAPTER 15 CONTRACTS, LEASES AND LICENCES
THE DISTINCTION BETWEEN OPERATING LEASES, RESOURCE LEASES AND FINANCIAL LEASES...
15.04 Three types of leases of non-financial assets are distinguished (see...
15.06 Definition: the economic owner of entities such as a good...
15.07 Definition: the legal owner of entities such as a good...
15.13 Definition: a financial lease is one where the lessor is...
15.14 Under a financial lease, the legal owner is shown as...
15.17 A financial lease may also exist when the lease period...
15.18 Although a financial lease will typically be for several years,...
15.19 Any corporation that specialises in financial leasing, even if called...
15.21 Hire purchase is usually restricted to consumer durables, and most...
Permits to undertake specific activities
15.31 In addition to licences and leases to use an asset,...
15.32 When governments restrict the number of cars entitled to operate...
15.33 In principle, if the permit is valid for several years,...
15.35 The permit to undertake specific activities as an asset first...
15.37 A permit issued by government to undertake a specific activity...
15.38 For units other than government, it is much less common...
15.40 Governments issue emission permits to control total emissions. Such permits...
Entitlements to future goods and services on an exclusive basis...
16.01 Insurance is an activity whereby institutional units or groups of...
16.02 Social insurance is a scheme that covers social risks and...
16.03 Insurance other than social insurance covers against events such as...
16.04 This Chapter is concerned with life and non-life insurance. It...
16.05 The rights and obligations of insurance are defined by an...
16.06 The insurance policy defines the roles of the parties involved,...
16.07 The most common form of insurance is called direct insurance,...
16.08 There are two types of direct insurance: life insurance and...
16.09 Definition: life insurance is an activity whereby a policyholder makes...
16.10 Life insurance also covers supplementary insurance against personal injury including...
16.11 Some classes of life insurance provide compensation in case the...
16.12 Definition: non-life insurance is an activity whereby a policyholder makes...
16.14 Life and non-life insurance both involve spreading risk. Insurers usually...
16.15 There are significant differences between life and non-life insurance that...
16.21 The insurance company accepts a premium from a client and...
16.22 Definition: premiums earned are the proportion of premiums written that...
16.23 The insurance premium is either a regular premium payable monthly...
16.24 The premiums earned in the year in question take the...
16.25 The reserves for unearned premiums and other reserves are included...
16.26 Policyholders often have to pay a dedicated tax on payment...
16.27 Definition: premiums supplements are the income earned from the investment...
16.28 For life insurance in particular, but also to a lesser...
16.29 For non-life insurance, even though a premium may be payable...
16.30 Similar reserves exist for life insurance but in addition there...
16.31 All investment income attributed to policyholders is shown as payable...
Adjusted claims incurred and benefits due
16.32 Definition: claims incurred and benefits due are the financial obligations...
16.33 The concept of claims incurred in non-life insurance and benefits...
Non-life insurance adjusted claims incurred
16.34 Claims can be distinguished between claims paid and claims incurred....
16.35 Non-life insurance claims incurred in the calendar year take the...
16.36 Any claims-related costs undertaken by the insurer, either external or...
16.37 In the event of catastrophes, the losses incurred shall not...
16.38 The production of insurance services is a continuous process, not...
16.39 The estimate for adjusted claims incurred may be derived statistically...
16.40 An alternative method of adjusting claims incurred for volatility is...
TRANSACTIONS ASSOCIATED WITH NON-LIFE INSURANCE
16.57 This section describes the set of entries recording the implications...
TRANSACTIONS ASSOCIATED WITH REINSURANCE
16.73 Accounts of reinsurers are largely the same as the accounts...
16.74 Insurance transactions are recorded gross of reinsurance. Premiums are first...
16.75 The output of direct insurance is calculated gross of reinsurance....
16.77 All gross flows between the policyholder and the direct insurer...
16.78 As with direct insurance, for example following a catastrophic disaster,...
16.79 The whole of the output of the reinsurer is intermediate...
16.80 The recording of flows associated with reinsurance resembles the recording...
16.81 The production and consumption transactions are as follows:
16.82 The distributive transactions cover investment income attributed to policyholders in...
16.83 Commissions payable by reinsurers to the insurer as the reinsurance...
16.84 If direct insurance claims are treated as capital and not...
RECORDING NON-LIFE INSURANCE CLAIMS
CHAPTER 17 SOCIAL INSURANCE INCLUDING PENSIONS
17.01 Definition: social insurance schemes are schemes in which participants are...
17.03 The scope of social insurance schemes varies from country to...
Social insurance schemes, social assistance and individual insurance policies
17.04 Social assistance is not part of social insurance. Social assistance...
17.05 Social assistance is distinguished from social security, by the eligibility...
17.06 Individual insurance policies qualify as social insurance schemes if they...
17.07 Insurance claims on policies taken out with the sole purpose...
SOCIAL INSURANCE BENEFITS OTHER THAN PENSIONS
17.15 Definition: other social insurance benefits, or non-pension benefits, are benefits...
17.16 Other social insurance benefits are provided to beneficiaries under social...
Recording of stocks and flows by type of non-pension social...
17.22 In recognition of the fact that social security is normally...
17.23 Pension entitlements arising from social security schemes are included in...
17.24 The recording of the flows for social security schemes other...
17.25 Any contribution made by the employer is treated as part...
17.26 Any contributions made by self-employed or non-employed persons are also...
17.27 Social security benefits are recorded as distributive transactions, from general...
17.28 Table 17.2 shows the transactions related to a social security...
Other employment-related non-pension social insurance schemes
17.29 For other employment-related non-pension social insurance schemes, entitlements of the...
17.30 The social contribution made by an employer to an insurance...
17.31 The investment income on accumulated entitlements is recorded as being...
17.32 Part of the income distributed to households is used to...
17.33 Social contributions are shown as paid by households to the...
17.34 Those who contribute to a social insurance scheme, who are...
17.35 The social benefits paid to households by the scheme administrator...
17.36 The payment of the service provided by the scheme administrator,...
17.37 An increase in entitlements caused by an excess of contributions...
17.38 The adjustment for the change in the entitlements paid by...
17.39 Table 17.3 shows the transactions for an employment-related pension scheme....
17.40 Definition: social insurance pensions are benefits which beneficiaries receive upon...
17.41 Pensions provided to beneficiaries can take the following forms:
17.42 Social insurance pensions are provided to beneficiaries as participants in...
Social security pension schemes
17.43 Definition: social security pension schemes are contractual insurance schemes where...
17.44 When general government takes over the responsibility for providing pensions...
17.45 Beneficiaries usually make compulsory contributions towards a social security pension...
17.46 The narrowest form of social security pension is very basic....
17.47 By contrast, in some countries most or all pension provision...
17.48 Pension entitlements as outstanding amounts for a social security pension...
Other employment-related pension schemes
17.50 Unless employers and beneficiaries agree to change the amounts payable,...
17.51 Other employment-related pensions are seen as part of the compensation...
17.52 Both current employees and former employees, who are the beneficiaries,...
17.53 Pension schemes are categorised according to their nature into defined...
Notional defined contribution schemes and hybrid schemes
17.59 Notional defined contribution schemes and hybrid schemes are grouped as...
17.60 Definition: a notional defined contribution scheme is similar to a...
17.61 In a notional defined contribution scheme, contributions (both from employee...
17.62 Hybrid schemes are those schemes which have both a defined...
17.63 The risk to provide an adequate income in retirement is...
17.64 In certain cases, the employer's risk may be borne by...
Defined benefit schemes as compared to defined contribution schemes
17.65 The fundamental difference in accounting for a defined benefit pension...
17.66 There are four sources of change in pension entitlements in...
17.67 As with a defined contribution pension scheme, the employer and/or...
17.69 A further basic difference between a defined benefit pension scheme...
17.70 For a defined benefit pension scheme, the situation is different....
17.71 For a defined benefit scheme, it is unlikely that self-employed...
Pension administrator, pension manager, pension fund and multi-employer pension scheme...
17.72 Social insurance schemes may be organised by employers or by...
17.73 An employer may contract with another unit to manage the...
17.74 First, the operator of the pension scheme, the pension administrator,...
17.75 Second, the pension manager is responsible also for determining the...
17.77 When government takes responsibility for providing benefits to large sections...
17.78 The pension manager's responsibility for any underfunding, or the benefit...
17.79 Any holding gains and losses on the assets managed by...
Recording of stocks and flows by type of pension scheme...
Transactions for social security pension schemes
17.80 In recognition of the fact that social security is normally...
17.81 Pension entitlements arising from social security schemes are not included...
17.82 The recording of the flows for social security pension schemes...
17.83 Any contribution made by the employer is treated as part...
17.84 Any contributions made by self-employed or non-employed persons are also...
17.85 Social security benefits are recorded as distributive transactions from general...
17.86 Table 17.2 shows the transactions of a social security pension...
Transactions for defined contribution pension schemes
17.90 The contribution made by an employer to a defined contribution...
17.91 The investment income on accumulated pension entitlements is also recorded...
17.92 Part of the income distributed to households is used to...
17.93 Social contributions are recorded as paid by households to the...
17.94 Contributors other than employees who contribute to a defined contribution...
17.95 Pension benefits to households from the pension fund are recorded...
17.96 There is also a transaction for the service provided by...
17.97 The increase in pension entitlements caused by an excess of...
17.98 The adjustment for the change in pension entitlements paid by...
17.99 Table 17.3 illustrates the entries necessary to record the transactions...
Transactions for defined benefit pension schemes
17.102 For defined benefit pension schemes, the employer retains responsibility for...
17.103 The total contribution made by an employer to a defined...
17.104 The contribution by the employer is calculated in relation to...
17.105 In defined benefit schemes, a qualifying period before an employee...
17.106 The sum of employers' actual and imputed pension contributions is...
17.107 The increase in the present value of the entitlements of...
17.108 In the secondary distribution of income account, social contributions are...
17.109 The pension benefits to households from the pension scheme are...
17.113 Other organisations, such as a trade union, may operate a...
17.114 To illustrate the recording of transactions connected with a defined...
17.115 Actuarial calculations show that the increase in pension entitlements coming...
17.116 In the allocation of primary income accounts, property income is...
17.117 In the secondary distribution of income accounts, the payments from...
17.120 In the financial account of the pension fund, the figure...
SUPPLEMENTARY TABLE FOR ACCRUED-TO-DATE PENSION ENTITLEMENTS IN SOCIAL INSURANCE
Design of the supplementary table
17.121 The supplementary table (Table 17.5) on accrued-to-date pension entitlements in...
17.122 The supplementary table covers the pension part of social insurance...
17.123 Entitlements for survivors (e.g. dependent spouses, children, and orphans) as...
17.124 All elements of the supplementary table are recorded with no...
17.125 The columns of the table refer to the three groupings...
17.126 For the most part, the beneficiaries of pension schemes are...
17.127 The decision to record the pension entitlements of an unfunded...
17.129 Pension schemes are classified further according to the pension manager,...
17.130 Some employer pension schemes have a mixed membership, for example...
17.131 General government-funded defined benefit schemes for its own employees are...
17.132 Pension schemes are classified by type of scheme as defined...
17.133 The rows of the table relate to balance sheet positions,...
Changes in pension entitlements due to transactions
17.135 Employer and employee actual social contributions are recorded in rows...
17.136 For defined benefit pension schemes, employer imputed social contributions are...
17.137 Row 2.4 shows the property income earned or imputed in...
17.139 The imputed contribution by employers for those government schemes for...
17.140 An item calculated on the same actuarial basis in respect...
17.141 Given that the supplementary table provides a complete breakdown of...
17.142 Row 3 does not represent cash transfers from tax revenues,...
17.143 Differences in the accounting period encountered between assumed and actual...
17.144 Row 3 captures any 'experience effects' observed for social security...
17.145 Row 4 shows pension benefits that are paid during the...
17.146 Row 5 presents the changes in pension entitlements due to...
17.147 One characteristic of the changing environment of pensions is the...
17.148 If government assumes the responsibility for pension provision for the...
17.149 When one unit takes over the responsibility for pension entitlements...
17.150 Employers are increasingly reforming the pension schemes they manage in...
17.151 Only enacted pension reforms lead to recording in the national...
17.152 In some cases of reform, the employer chooses to leave...
17.153 However, in some cases the employer decides to make reforms...
17.154 Changes in pension entitlements are recorded as transactions as follows:...
17.155 Changes in pension entitlements that are imposed without negotiation are...
17.156 Changes in accrued-to-date entitlements arising from past service are recorded...
17.157 Row 7 shows the impact of reforms of pension scheme...
17.169 Defined benefit pension schemes often apply a formula to the...
17.170 It is, therefore, appropriate to consider what assumptions are made...
17.171 The accounting profession uses two actuarial methods to measure the...
17.172 A projected benefit obligation (PBO) is a more prudent measure...
17.173 The impact of wage increases needs to be reflected in...
17.174 Changes to assumptions of future wage changes, which are generally...
17.175 A number of possible variants in the application of the...
17.176 One important factor is the treatment of indexation arrangements on...
17.177 Given the importance of wage effects, it is recommended that...
17.178 Future pension payments are subject to demographic effects, in terms...
17.179 In the case of employment-related pension schemes, the membership of...
17.180 In the use of longevity tables, also known as mortality...
17.181 Longevity assumptions should include the increase of longevity over time....
17.182 The modelling of pension schemes may involve the use of...
17.183 Where early retirement within a scheme is actuarially neutral, modelling...
CHAPTER 18 REST OF THE WORLD ACCOUNTS
BALANCING ITEMS IN THE CURRENT ACCOUNTS OF THE INTERNATIONAL ACCOUNTS...
THE ACCOUNTS FOR THE REST OF THE WORLD SECTOR AND...
The external account of goods and services
18.23 The goods and services account consists only of imports and...
18.24 Goods that change locations from one economy to another but...
18.25 The balance of payments gives emphasis to the distinction between...
18.26 International merchandise trade statistics are the main source of data...
18.27 The change of ownership basis used for the balance of...
18.28 Re-exports are foreign goods (goods produced in other economies and...
18.29 Goods are presented at an aggregate level in the balance...
18.30 In the balance of payments, detail is produced for the...
18.31 Three of the balance of payments' standard components above are...
18.38 Merchanting is defined as the purchase of goods by a...
18.39 Merchanting arrangements are used for wholesaling and retailing. They may...
18.40 Goods under merchanting are recorded in the accounts of the...
18.41 Merchanting items appear only as exports in the accounts of...
18.42 Wholesaling, retailing, commodity dealing, and management of manufacturing may also...
The external account of primary and secondary income
The secondary income (current transfers) account of the BPM6
18.51 The secondary income account shows current transfers between residents and...
18.52 Cross-border personal transfers are household-to-household transfers and are of interest...
18.53 Other workers, such as border and seasonal workers, do not...
18.54 Insurance flows, especially flows relating to reinsurance, can be important...
The external financial account and international investment position (IIP)
FROM NATIONAL TO EUROPEAN ACCOUNTS
19.05 European accounts are conceptually not equal to the sum of...
19.08 In the ESA, European institutions comprise the following entities:
19.09 European non-financial institutions and bodies covered by the general budget...
19.11 The European Central Bank is an institutional unit classified in...
19.12 The European Investment Bank and the European Investment Fund are...
19.13 The economic territory of the European institutions includes the territorial...
19.14 The main transactions of European institutions are recorded in resources...
ANNEX 19.1 THE ACCOUNTS OF EUROPEAN INSTITUTIONS
19.28 The main resources of European non-financial institutions and bodies include...
19.29 In the accounts of European institutions, these flows are recorded...
19.30 Customs and agricultural duties are levied at the external frontiers...
19.31 Production charges are levied on the sugar, isoglucose and inulin...
19.32 A fixed share of the amounts collected under points (a)...
19.33 The value added tax resource is calculated by applying a...
19.34 The gross national income resource is a residual contribution to...
19.35 The contributions of Member States to the European Development Fund...
19.36 The Member States subscriptions to the paid-in capital of the...
19.37 Interests payable on loans granted by the European Investment Bank,...
19.38 Interests payable on loans granted by the European Central Bank...
19.39 Payments made by European non-financial institutions and bodies consist of...
19.40 The accounts of European institutions record the payments made by...
19.41 Payments made by European non-financial institutions and bodies are generally...
19.42 Payments made by European financial institutions and bodies consist of...
19.43 The accounts of European institutions record the payments made by...
CHAPTER 20 THE GOVERNMENT ACCOUNTS
20.01 The activities of government are presented separately from those of...
20.02 Governments have powers to raise taxes and other compulsory levies...
20.03 The GFS presentation of general government economic activities presents the...
20.04 Additional rules on some more difficult issues of classification and...
DEFINING THE GENERAL GOVERNMENT SECTOR
20.05 The general government sector (S.13) consists of all government units...
20.06 Government units are legal entities established by political process which...
20.07 A government unit usually has the authority to raise funds...
Identification of units in the government
20.08 In all countries, there is a core entity, notably inside...
20.09 General government subsectors such as state and local governments can...
20.10 In addition to this primary unit, there are government entities...
20.11 The general budget of any government level can include unincorporated...
20.12 Social security funds are government units devoted to the operation...
Criteria of the purchaser of the output of a public...
20.23 Economically significant prices normally result when two major conditions are...
20.24 Some services are typically required as ancillary services. They include...
20.25 If a public producer sells only to government and is...
20.26 If a public producer is one of several suppliers to...
20.28 If there are several suppliers, a public producer is a...
20.40 Quasi-corporations are unincorporated enterprises that function as if they were...
20.41 A government establishment or a group of establishments engaged in...
20.42 The amount of income withdrawn from a quasi-corporation during a...
20.43 The producer entities that are not treated as quasi-corporations remain...
20.49 Many public units enter into arrangements with private entities or...
20.50 A joint venture requires the establishment of a corporation, partnership...
20.51 Normally, the percentage of ownership will be sufficient to determine...
20.52 Public units can also enter into joint operating arrangements that...
The subsectors of general government
20.56 Depending on the administrative and legal arrangements, there is generally...
20.57 The central government (excluding social security) subsector (S.1311) consists of...
20.58 The compilation of statistics for central government is important because...
20.59 The central government subsector is a large and complex subsector...
20.60 The main central group or primary central government is sometimes...
20.61 The other component of central government consists of other central...
20.62 Central government can be partitioned into two components: budgetary central...
THE GOVERNMENT FINANCE PRESENTATION OF STATISTICS
20.68 Experience has shown that for government, an alternative presentation to...
20.69 The ESA based GFS presentation consists of transactions recorded in...
20.70 In the GFS system, revenue is defined as the aggregate...
20.71 The difference between revenue and expenditure, equivalent to the surplus/deficit,...
20.73 Additional accounts in the GFS system are for other economic...
20.74 The balance sheet shows total asset levels — non-financial and...
20.75 Government finance statistics presents the financial performance of general government...
20.76 A revenue transaction is one that increases net worth, and...
20.85 Other current revenue consists of property income (D.4), other subsidies...
20.86 Property income comprises interest (D.41), distributed income of corporations (dividends...
20.87 Other current transfers (D.7) include mainly intra-government transfers. They shall...
20.88 Other capital revenue comprises investment grants (D.92) and other capital...
20.89 Grants, which are sometimes defined in other statistical systems as...
20.90 Subsidies received by government units consist only in other subsidies...
20.91 An expenditure transaction is one that has a negative impact...
20.92 The total government expenditure of an accounting period is calculated...
Compensation of employees and intermediate consumption
20.93 Compensation of employees and intermediate consumption are costs of production...
20.94 Compensation of employees (D.1) includes wages and salaries (D.11) paid...
20.95 Intermediate consumption (P.2) comprises the goods and services consumed during...
20.96 In concept, the time of recording of intermediate consumption is...
Link with government final consumption expenditure (P.3)
20.105 Making the link between total government expenditure and its components...
20.106 Final consumption expenditures by general government are equal to the...
20.107 The output of government — market output, own account capital...
20.108 Thus, the following calculation gives final consumption expenditures using selected...
20.118 The financial account of government in the GFS records the...
20.119 Currency and deposits (F.2) reflects mainly movements in government deposits...
20.120 Debt securities (F.3) mainly reflect net purchases of bills, notes...
20.121 Loans (F.4) include, in addition to loans to other government...
20.122 Equity and investment fund shares (F.5) capture acquisitions less disposals...
20.123 Transactions in other accounts receivable (F.8) capture the impact of...
20.124 In most countries, monetary gold and SDRs are managed by...
20.125 Financial transactions are recorded at the transaction values, that is,...
20.126 The transaction value refers to a specific financial transaction and...
20.127 However, in cases where the counterpart transaction of a financial...
20.128 The transaction value does not include service charges, fees, commissions,...
20.129 Transactions in liabilities are recorded at the value at which...
20.130 The repurchase by a unit of a liability is recorded...
20.131 Financial leasing and public-private partnerships (PPP) contracts when the asset...
20.132 Financing presented as long-term trade credits or accounts receivable/payable arrangements...
20.133 Lump sums exchanged at inception on off-market swaps are classified...
20.134 Similarly to receivables, transactions in other accounts payable reflect the...
20.143 The sum of liabilities may be considered as a stock...
20.144 Some assets are more specific to government: heritage assets, like...
20.145 On the liability side, equity liability (AF.5) will not normally...
20.146 Net worth is the balancing item (B.90) of the balance...
20.148 Where the net worth (B.90) of the general government sector...
20.149 The ESA values balance sheet at market value, except for...
20.150 Security liabilities are valued at market value. Even though the...
20.151 Quoted equity is valued using the most recent quotation price...
20.152 Consolidation is a method of presenting the accounts for a...
20.153 Consolidation is important for the general government sector and its...
20.154 Consolidation does not affect balancing items because the consolidated items...
20.155 Conceptually, the nature of consolidation is to eliminate all flows...
20.156 When drawing up the consolidated accounts of government, the ESA...
20.157 Purchases/sales of goods and services between government units are not...
20.158 Taxes or subsidies paid by one government unit or entity...
20.160 Some types of transactions that appear to take place between...
20.161 Practical difficulties arise with consolidation. For example, when a transaction...
ACCOUNTING ISSUES RELATING TO GENERAL GOVERNMENT
20.162 National accounts principles apply to the general government sector in...
20.163 Similarly, the national accounts principles apply in the same way...
20.164 When classifying a transaction, national accountants are not constrained by...
20.176 Interest is an expenditure incurred by a debtor for the...
20.177 Interest is classified within property income (D.4). Differently to dividends...
20.178 In the system, interest is recorded on an accrual basis,...
20.180 Accrual interest is recorded according to the debtor approach, that...
20.181 Recording interest as accruing continuously has the consequence, on a...
20.182 In many countries, government bonds or notes are issued in...
20.183 The issue price of bonds and notes issued in fungible...
20.221 Debt operations can be particularly important for the general government...
Debt assumptions, debt cancellation and debt write-offs
Debt assumption and cancellation
20.222 Debt assumption occurs when a unit assumes responsibility for another...
20.223 When a government assumes a debt, the counterpart transaction of...
20.224 Debt payments on behalf of others are similar to debt...
20.225 Debt cancellation (or debt forgiveness) is the extinction or reduction...
20.226 Debt assumptions and debt cancellations which benefit a controlled entity...
20.227 Debt assumptions and debt cancellations carried out in the context...
20.228 When debtor governments offer to repay the debt in anticipation,...
20.230 As a result, the capital transfer expenditure of government is...
20.231 In rarer cases, when the discount negotiated with the third...
Debt assumption involving a transfer of non-financial assets
20.243 A bailout is a term meaning a rescue from financial...
20.244 Intervention of general government can take various forms. Examples are...
20.245 Government guarantees during a bailout are treated as one-off guarantees...
20.246 If the government buys assets from the enterprise to be...
20.247 During a bailout, governments often buy loans from financial institutions...
20.248 If a public institutional unit is created by government with...
20.255 One-off guarantees exist where the conditions of the loan or...
20.256 In exceptional cases, one-off guarantees granted by governments to corporations...
20.257 The activation of a one-off guarantee is treated in the...
20.258 The activation of a guarantee may or may not require...
20.259 When the original debtor refunds the guarantor while an expenditure...
20.262 In order for the securitisation to be treated as a...
20.263 Thus, securitisation of future revenue flows not recognised as a...
20.264 When a securitisation involves flows associated to a financial or...
20.265 If government retains a beneficial interest in the securitisation, by...
20.266 If government, as originator, guarantees repayment of any debt incurred...
20.267 If it is determined that the securitisation contract involves the...
20.268 If government provides compensation, in the form of cash after...
20.276 Public-private partnerships (PPPs) are complex, long-term contracts between two units,...
20.277 At the end of the contract, the grantor usually acquires...
20.278 A general description that includes the most common accounting problems...
20.279 PPP contracts under this definition involve the grantor paying the...
20.280 When the corporation sells the services directly to the public...
20.281 In PPP contract, the corporation acquires the fixed assets and...
20.282 Furthermore, the assets typically have service lives much longer than...
20.287 If the corporation is assessed as being the economic owner...
20.288 An alternative approach is to record the change of legal...
20.289 Another significant problem arises when government is assessed as being...
20.290 Another important problem concerns the measurement of production. Whatever decisions...
Transactions with international and supranational organisations
20.291 Transactions that occur between resident units and international or supranational...
20.292 An example of such transactions is between non-government residents and...
20.293 The recording of specific transactions between national residents and institutions...
20.294 The institutions of the European Union make significant current and...
20.295 Grants paid from structural funds often involve co-financing, whereby the...
20.296 When non-government units are the beneficiaries, any payments made by...
20.297 The recording time of co-financed government expenditure transfers is the...
20.298 There may be circumstances where government advances exceed the amount...
20.299 When government units are the beneficiaries, the government revenue is...
20.300 All advance payments from the European Union to government units...
20.303 The public sector consists of general government and public corporations....
20.304 Public financial corporations can be further divided into the central...
20.305 Public sector accounts may be constructed according to the ESA...
20.306 All institutional units included in the public sector are resident...
20.307 The distinction between a public sector unit being part of...
21.01 Business accounts represent, alongside business surveys, a major source of...
21.02 National accounting has international standards shared across every country in...
21.03 Detailed guidelines on the contents of business accounts and how...
NATIONAL ACCOUNTS AND BUSINESS ACCOUNTS: PRACTICAL ISSUES
21.11 In order that national accountants may use business accounts on...
21.12 Business accounts can be used when the accounts are not...
21.13 Business surveys are the other major source of data for...
21.14 Globalisation complicates the use of business accounts in preparing national...
21.15 Another practical condition is that the financial year should correspond...
THE TRANSITION FROM BUSINESS ACCOUNTS TO NATIONAL ACCOUNTS: THE EXAMPLE...
22.01 This Chapter provides a general introduction to satellite accounts. It...
22.02 Satellite accounts elaborate or modify the tables and accounts in...
22.04 Satellite accounts can meet specific data needs by providing more...
22.05 Satellite accounts can range from simple tables to an extended...
22.07 In this Chapter, characteristics of satellite accounts will be discussed...
22.08 A major group of satellite accounts have a functional approach....
22.09 The wide range of satellite accounts illustrates that the national...
22.10 Major advantages of satellite accounts include the following:
22.11 Functional classifications classify expenditure by sector, and by the purpose...
22.12 The four different functional classifications that exist in the ESA...
22.14 The individual consumption expenditure of NPISHs and general government is...
22.15 Coicop also serves other major uses such as using the...
22.16 The classification of government expenditure by function (COFOG) is a...
22.17 For describing and analysing the expenditure of private non-profit institutions...
22.18 For describing and analysing the behaviour of producers, COPP can...
22.19 COFOG and COPP show expenditure on environmental protection by the...
22.20 Some expenditure, like final consumption expenditure and intermediate consumption, can...
MAJOR CHARACTERISTICS OF SATELLITE ACCOUNTS
22.21 Functional satellite accounts focus on describing and analysing the economy...
22.22 The central framework is mainly institutional in nature. A functional...
22.23 A key concept in functional satellite accounts is national expenditure...
22.24 To analyse the uses for a function involves asking questions...
22.25 Depending on the field, the design of a satellite account...
22.26 Two types of products can be distinguished: characteristic products and...
22.27 Connected products are relevant for a function without being typical,...
22.28 Some services may appear in two or more satellite accounts....
22.29 The concepts in the satellite account may deviate from those...
22.30 For satellite accounts on social protection and development aid, specific...
22.31 The functional satellite account can provide an overview of the...
22.32 In many satellite accounts, households or individuals are the most...
22.33 Special sector accounts provide an overview focused on one industry...
22.34 The special sector accounts can also focus on an integrated...
22.35 The first step in drawing up special sector accounts is...
22.36 A goods and services account for the key products is...
22.37 The key products and key industries may be analysed in...
22.39 In many cases, government plays an important role in connection...
22.40 When the key activities are based on natural non-renewable resources...
22.41 The key sector accounts can be presented in the framework...
Designing and compiling satellite accounts
22.46 Designing and compiling a satellite account consists of four steps:...
22.47 Designing and compiling satellite accounts for the first time often...
22.48 In selecting what is relevant from the national accounts, three...
22.49 In designing and compiling a satellite account, applying the concepts...
22.50 A similar process applies to the operational concepts used in...
22.51 The reliability of parts of the national accounts statistics may...
22.52 Selecting relevant information from sources other than the national accounts...
22.53 Combining the national accounts information and the other information into...
22.54 Transforming a consistent satellite account into a product for data...
NINE SPECIFIC SATELLITE ACCOUNTS
22.55 In the remainder of this Chapter, the following satellite accounts...
22.60 In the international guidelines on environmental accounts (System of Environmental-Economic...
22.61 The integrated set of accounts for economic and environmental information...
22.62 In the central framework, various aspects of environmental accounting have...
22.63 From an environmental point of view, there are two major...
22.64 In the central framework, only produced assets are taken into...
22.65 The SEEA 2003 environmental accounting framework comprises five categories:
22.66 Physical and hybrid flow accounts record four different types of...
22.67 Physical flows are measured in units of quantity, which reflect...
22.68 Physical flow accounts can be presented as supply and use...
22.69 Hybrid flow accounts is a single matrix presentation containing both...
22.70 The information in the hybrid flow accounts can be linked...
22.71 The economic accounts for environmental transactions consist of environmental protection...
22.72 For describing environmental protection, a functional approach combined with a...
22.73 In the environmental asset accounts, three different types of environmental...
22.74 Environmental asset accounts in physical and monetary terms describe the...
22.75 The aggregates in the central framework can be modified to...
22.76 From an environmental point of view, the adjustment for depletion...
22.77 Defensive expenditure on the environment does not consist only of...
22.78 Domestic product, saving and other key aggregates can be adjusted...
22.79 The health accounts (see OECD, A System of Health Accounts,...
22.80 The health accounts provide answers to three basic questions:
22.81 Health care goods and services are split by function. Three...
22.82 The major types of personal health care services and goods...
22.83 In comparison to the central framework, the production boundary is...
22.84 Two types of collective health services are distinguished:
22.85 Seven types of health-related functions are distinguished:
22.86 For the providers of health care, a detailed industry classification...
22.87 Basically, health care financing can be recorded from two different...
22.88 Simple overview tables showing the importance of health in the...
22.89 In the central framework, household activities such as the services...
22.90 Household production accounts may be of particular interest for the...
22.91 Household production includes only services that can be delegated to...
22.92 For household production, different principal functions can be distinguished: housing,...
22.93 In the central framework, expenditure on consumer durables are part...
22.94 The output and value added of household production can be...
22.95 A major issue for household production accounts is the size...
Productivity and growth accounts
22.99 A major use of the national accounts is to describe,...
22.100 Economic growth in national accounts terms is the volume growth...
22.101 This simple approach omits the role of other inputs, such...
22.102 The volume of capital input from the fixed capital stock...
22.103 Multifactor productivity measurement helps to identify the direct growth contributions...
22.104 For better measuring, analysing and monitoring growth and productivity, KLEMS...
22.105 The accounts consist of three interdependent modules: an analytical module...
22.106 The analytical module provides a research database for use in...
22.107 The statistical modules of the database are developed in parallel...
22.110 Social protection and its interaction with issues such as ageing,...
22.111 Social protection benefits are transfers to households or individuals, in...
22.112 Social protection benefits are made through social protection schemes. These...
22.113 Where the reciprocal arrangement from the employee is not simultaneous,...
22.114 Government-controlled schemes are where the government takes all the principal...
22.115 Examples of government-controlled schemes are as follows:
22.116 Examples of non-government-controlled schemes are as follows:
22.117 Using information on specific individual schemes, the accounts for social...
22.118 For each individual social protection scheme, information is provided on...
22.119 The standard information on the various individual social protection schemes...
22.120 The concepts and classifications in the accounts for social protection...
22.121 The close linkage between standard national accounts statistics and social...
22.122 The OECD also publishes data on social expenditure by individual...
22.123 The tourism satellite account provides an overview of the supply...
22.124 ‘Tourism’ comprises the activities of persons travelling to and staying...
22.125 The demand generated by tourism covers a variety of goods...
22.126 Some of the services for tourism purposes, such as accommodation...
22.127 The key measure for describing the demand for tourism is...
22.128 The supply and use of goods and services for tourism...
22.129 In their tourism satellite account, countries can further disaggregate and...
23.01 The classifications in the ESA 2010 are fully in line...
23.02 The accounts are built around a small number of conceptual...
23.03 The entries in the accounts are divided into types designated...
23.04 In the context of a production approach of GDP, tables...
23.05 Apart from COFOC and Coicop, the functional classifications include also...
CLASSIFICATION OF INDIVIDUAL CONSUMPTION BY PURPOSE (Coicop)
CLASSIFICATION OF THE PURPOSES OF NON-PROFIT INSTITUTIONS SERVING HOUSEHOLDS (COPNI)...
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