Back Matter

Back Matter

Author(s):
International Monetary Fund
Published Date:
March 1993
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    Annex I Changes from the 1968 System of National Accounts

    A. Introduction

    • 1. The System of National Accounts 1993 (1993 SNA), retains the basic theoretical framework of its predecessor, A System of National Accounts (1968 SNA). However, in line with the mandate of the United Nations Statistical Commission, it contains clarifications and justifications of the concepts presented, it is harmonized with other related statistical systems and it introduces a number of features that reflect new analytical and policy concerns of countries and international organizations.

    • 2. The classifications and concepts of the central framework are internally more closely linked up with each other and more fully harmonized externally with standards of related statistical systems than in the 1968 SNA. It more fully integrates production, income, capital and financial accounts and balance sheets, and in doing so, it draws upon the guidelines given in separate United Nations manuals on balance sheets and reconciliation accounts (Series M, No.60), on tangible assets (Series M, No.68), on income distribution (Series M, No.61) and on constant prices (Series M, No.64). Furthermore, the new System describes in detail the links between the SNA and the related statistical system on balance of payments prepared by the International Monetary Fund (IMF). Particular attention has been given to the delineation of the production boundary with regard to coverage of own-account production of goods and services. Also, more precise criteria have been established for the delineation and coverage of the financial sector and identification and classification of financial instruments in light of the many innovations in this field in recent years due to financial deregulation. The central framework retains input-output tables as an integral part of the System particularly as the basis for balancing supply and demand. It includes a detailed breakdown of the household sector by sub-sectors including all accounts which facilitate the links between SNA and social accounting matrices (SAMs). The System also describes and incorporates population and employment data. The System pays special attention to the conceptual implications of some of the structural features of economies in transition.

    • 3. There are two important elements of flexibility built into the System. The first concerns the flexible use of classifications, which is based on a hierarchical structure of classifications of transactors, transactions and assets that permits adaptation of data detail to data availability and other specific circumstances of different countries. This flexible use of classifications, which is further developed in one of the chapters, does not change the concepts of the central framework. The second element of flexibility, which is described in chapter XXI, extends the System to so-called satellite accounts that use product and income concepts that are alternative to those of the central framework. A description of satellite accounts relating to the environment provides a notable example of this kind of flexibility.

    • 4. These changes in the general features of the System are in addition to a number of specific changes in the 1993 SNA as compared to the 1968 SNA, which are grouped together below in nine sections (B.1 to B.9). The descriptions given only highlight the main differences between the two Systems while refraining from exhaustive comparison of definitions. The discussion of all changes contains cross-references to the corresponding chapters and tables.

    B. SNA revisions

    1. Revision of the accounting structure and new balancing items

    Partitioning and further integration of the accounts and balance sheets, and creation of new balancing items

    • Reference: chapter II, paragraphs 2.97 to 2.151

    • 5. In the 1993 SNA the overall sequence of accounts of institutional units and sectors is now subdivided into current accounts, accumulation accounts and balance sheets. Thus, the accounting structure of the System integrates the balance sheets as an additional group. The 1968 SNA did not specify balance sheets in detail; they were developed later in a separate publication (United Nations, M/60).

    • 6. The 1993 SNA partitions the production account of the 1968 SNA into two accounts: a production account, where the balancing item is “value added” (B.1), and a generation of income account, with “operating surplus/mixed income” (B.2/B.3) as the balancing item. The generation of income account has been moved to the next group of accounts, i.e., distribution and use of income accounts.

    • 7. The group of distribution and use of income accounts of the 1993 SNA includes the income and outlay account of the 1968 SNA together with the generation of income account, which was previously included as part of the production account. This second group of accounts is divided into the following accounts: (a) generation of income account, with “operating surplus/mixed income” (B.2/B.3) as the balancing item; (b) allocation of primary income account, with “balance of primary incomes” (B.5) as the balancing item; (c) secondary distribution of income account, with “disposable income” (B.6) as the balancing item; (d) redistribution of income in kind account, with “adjusted disposable income” (B.7) as the balancing item; and (e) use of income account, with “saving” (B.8) as the balancing item.

    • 8. The 1993 SNA divides the capital finance account of the 1968 SNA in order to separate the acquisition of non-financial assets from the acquisition of financial assets and incurrence of liabilities. The two resulting accounts are (a) the capital account, with “net lending/borrowing” (B.9) as the balancing item; and (b) the financial account also with “net lending/borrowing” (B.9) as the balancing item. An additional entry called “changes in net worth due to saving and capital transfers” (B.10.1) is identified on the right-hand side of the capital account.

    • 9. In the 1993 SNA the reconciliation account of the 1968 SNA has been integrated into anew set of accumulation accounts which cover all changes between two successive balance sheets. Two new accounts are introduced: (a) the other changes in volume of assets account, with “changes in net worth due to other changes in volume of assets” (B.10.2) as the balancing item; and (b) the revaluation account, with “changes in net worth due to nominal holding gains/losses” (B.10.3) as the balancing item. The latter account is further broken down into two sub-accounts in order to separate real holding gains/losses in both financial and non-financial assets/liabilities from neutral holding gains/losses that are merely proportionate to changes in the general price level. Consequently, the 1993 SNA incorporates a new balancing item, “changes in net worth” (B.10), which includes three sub-elements: (a) changes in net worth due to saving and capital transfers (B.10.1); (b) changes in net worth due to other changes in volume of assets (B.10.2) and (c) changes in net worth due to nominal holding gains/losses (B.10.3).

      Introduction of production accounts for all sectors and cross-classification of value added by activities and institutional sectors

      Reference: chapter II, paragraph 2.210; chapter VI, paragraphs 6.1 to 6.3; chapter XV, paragraphs 15.105 to 15.109

    • 10. The 1993 SNA includes production accounts for all institutional sectors in addition to production accounts for the establishment-based industries of the 1968 SNA. In order to link these two types of production accounts, the 1993 SNA recommends a cross-classification output, intermediate consumption, gross value added and its components by type of sector and industry. It does not use the terminology “dual sectoring” sometimes used in connection with the 1968 SNA.

    Introduction of a new concept called “mixed income”, for unincorporated enterprises

    • Reference: chapter VII, paragraphs 7.81 to 7.87

    • 11. The 1993 SNA introduces a distinction, not made in the 1968 SNA, between the operating surplus of certain unincorporated enterprises owned by households and the operating surplus of other enterprises. For this purpose, it introduces a new name for the net operating surplus arising from the productive activities of unincorporated enterprises owned by households (except for the surplus arising from the production of housing services for own consumption by owner occupiers). The new category is called mixed income (B.3) because it usually reflects remuneration for work done by the owner of the enterprise as well as a return to entrepreneurship.

    Introduction of balance of primary incomes and gross national income (GNI) concepts

    • Reference: chapter II, paragraphs 2.116 and 2.181; chapter VII, paragraphs 7.1 and 7.2 and 7.13 to 7.16

    • 12. The 1993 SNA introduces a new concept called balance of primary incomes (B.5), which is the sector equivalent of national income and is the balancing item of the allocation of primary income account. The balance of primary incomes results from the distribution of value added to labour (compensation of employees), capital (property income) and government (taxes, less subsidies, on production and imports) and operating surplus and mixed income. The sum of the balance of primary incomes across sectors is GNI (B.5*), which is the new term for what was called gross national product (GNP) in the 1953 SNA.

    2. Further specifications of statistical units, revisions in the sectoring and introduction of multiple sub-sectoring

    Definitions of institutional units and establishments

    • Reference: chapter II, paragraphs 2.19 to 2.21 and 2.43 to 2.45; chapter IV, paragraphs 4.1 to 4.5; chapter V, paragraphs 5.21 to 5.24; chapter VII, paragraphs 7.118 to 7.121; chapter XV, paragraphs 15.13 to 15.19

    • 13. The 1993 SNA defines an institutional unit as an economic entity that is capable in its own right of owning assets, incurring liabilities and engaging in economic activities and in transactions with other units. Corporations providing ancillary-type services to a parent corporation are merged with the parent corporation into one single institutional unit. Also included in the corporate sectors as separate institutional units are quasi-corporations—i.e., unincorporated enterprises owned by households, government or non-resident units that behave like corporations and have complete sets of accounts, including information on withdrawals of entrepreneurial income analogous to the payments of dividends in the case of a corporation. In the 1993 SNA, the family of enterprises is not used as a statistical unit. The 1968 SNA did not include explicit definitions for institutional units but made reference to one criterion—availability of complete accounts. It did not make reference to the requirement that information on withdrawals of entrepreneurial income had to be available.

    • 14. The 1993 SNA introduces a distinction between an analytical unit and an observable unit in the production accounts in the supply and use and input-output tables. The establishment is defined by reference to one activity and one location as in the 1968 SNA, but for practical reasons and harmonization with the International Standard Industrial Classification (ISIC) Rev. 3, the 1993 SNA recognizes an observable unit version of the establishment, which, in addition to its main activity, may also have one or more secondary activities. The analytical unit (unit of homogeneous production) is used in the construction of the input-output table.

    Explicit definition of statistical unit and gross output in agriculture

    • Reference: chapter VI, paragraphs 6.103 to 6.107

    • 15. The 1993 SNA recommends that in agriculture the statistical unit and the definition of output should be the same as for other market producers. The establishment in agricultural activities refers to the individual agricultural holding. As in the case of other activities, the output includes transactions between agricultural holdings but excludes products for intermediate consumption within the same agricultural holding. (Statistical information in agriculture is often not available in this form, and it may be necessary to use either the “gross-gross” measurement of output, which includes products used for intermediate consumption in the same agricultural holding, or the concept of the “national farm”, in which agricultural products used either in the same or other agricultural holdings are entirely omitted.) The 1968 SNA did not deal explicitly with the definition of statistical unit and gross output in agriculture.

    Introduction of three sub-sectors for non-financial and financial corporations, i.e., public, national private, and foreign controlled

    • Reference: chapter IV, paragraphs 4.71 to 4.76 and 4.84

    • 16. The 1993 SNA recommends identifying the following sub-sectors for the non-financial and financial corporation sectors: public corporations, national private corporations and foreign controlled corporations.

    • 17. A public corporation is one controlled by the government. The government may exercise control by owning more than 50 per cent of the equity or by other means such as special legislation or decree even if it holds less than 50 per cent of the equity. An enterprise is also regarded as a public corporation if it is subject to control by another public corporation.

    • 18. Foreign-controlled enterprises are defined as enterprises subject to control by non-residents. Foreign enterprises in which non-resident investment is less than 50 per cent may be included or excluded by individual countries according to their qualitative assessment of foreign control. Foreign-controlled corporations include those direct investment enterprises that are subsidiaries and branches, as defined in the draft fifth edition of the IMF Balance of Payments Manual (BPM) and in the Organisation for Economic Cooperation and Development (OECD) Detailed Benchmark Definition of Foreign Direct Investment.

    • 19. The 1968 SNA terms “corporate enterprises” and “quasi-corporate enterprises” have been shortened to “corporations” and “quasi-corporations” in the 1993 SNA. In subsectoring non-financial and financial corporate and quasi-corporate enterprises, the 1968 SNA distinguished between public and private enterprises but did not distinguish between resident enterprises that are subject to foreign control and those that are not.

    New definition of the financial sector to include financial auxiliaries and exclude holding companies that control mainly non-financial subsidiaries

    • Reference: chapter IV, paragraphs 4.79 to 4.81, 4.96, and 4.100

    • 20. The 1993 SNA has enlarged the 1968 SNA financial sector to include, in addition to financial corporations that incur financial liabilities and acquire financial assets on their own account, auxiliaries engaged primarily in activities that facilitate financial intermediation or provide financial services without placing themselves at risk.

    • 21. The 1993 SNA recommends that holding companies should be assigned to the institutional sector in which the main activity of the group of subsidiaries is concentrated. Consequently, although holding companies often play a primarily financial role, they should be classified as financial corporations only when the preponderant activity of the group of corporations they control is financial.

    Revised sub-sectoring of the financial corporate sector to reflect new developments in financial corporations, markets and instruments

    • Reference: chapter IV, paragraphs 4.83 to 4.98; chapter XI, paragraphs 11.56 and 11.57

    • 22. The 1993 SNA sub-sectors financial corporations as follows: (a) central bank (S.121); (b) other depository corporations (S.122); (c) other financial intermediaries except insurance corporations and pension funds (S.123); (d) financial auxiliaries (S.124); and (e) insurance corporations and pension funds (S.125). However, due to the substantial variations among countries in defining money, the 1993 SNA does not include a definition of money but provides a classification of financial corporations and instruments compatible with national money definitions. Thus, the sub-sector “Other depository corporations” has been established to include all financial corporations except the central bank whose principal activity is financial intermediation and which have liabilities in the form of deposits or other financial instruments that are close substitutes for deposits and which are included in measures of money broadly defined. Where the distinction between narrow and broad money concepts is important, countries are encouraged to disaggregate this sub-sector between “Deposit money corporations (S.1221)”, which have any liabilities in the form of deposits (narrow money), and “Other depository corporations (S.1222)”, which have liabilities in the form of deposits that are not readily transferable or in the form of financial instruments (such as short-term certificates of deposit) which are close substitutes for deposits and which are included in measures of money broadly defined. The 1968 SNA used the concept of narrow money as the classification principle for financial sub-sectors and thus included in “other financial corporations” many financial corporations that had liabilities in the form of broad money instruments.

    • 23. Since the word “bank” has a specific legal connotation in some countries that is different from the new interpretation in the System, the 1993 SNA has changed two 1968 SNA related terms as follows: “depository corporation” is used instead of “bank” and “financial intermediation services” instead of “banking services”.

    Separate identification of unincorporated financial enterprises as distinct from quasi-corporate financial enterprises

    • Reference: chapter IV, paragraph 4.82

    • 24. The 1993 SNA has eliminated the 1968 SNA convention that treated all financial unincorporated enterprises as quasi-corporations. In the 1993 SNA, financial unincorporated enterprises owned by households, such as individuals engaged in financial intermediation or in services auxiliary to financial intermediation, are classified in the households sector.

    • 25. In line with the above, the 1993 SNA treats money lenders who incur liabilities to mobilize funds as financial intermediaries included in the households sector and their output is measured the same way as that of other financial intermediaries. Money lenders who make loans from their own resources are also considered producers of financial services provided their services can be measured. Money lenders were not explicitly referred to in the 1968 SNA.

    • Classification of government employee pension schemes in the financial sector

      Reference: chapter IV, paragraph 4.98

    • 26. The 1993 SNA, like the 1968 SNA, classifies pension funds invested entirely with the employer as part of the employer’s sector, rather than placing them with insurance corporations and pension funds in the financial corporations sector. An exception has been made for government employee pension funds that are separate institutional units; they are classified in the financial corporations sector, even if most of their funds are invested in government securities for reasons of prudence, whether by legal requirement or by choice. The rationale is that investment of government employee pension funds with the employer does not indicate the degree of employer control that investment of private employee pension funds with an employer does.

    Alternative methods of sub-sectoring for general government

    • Reference: chapter IV, paragraph 4.131

    • 27. The 1993 SNA recommends with equal priority two ways for sub-sectoring general government: include social security funds as part of each level of government at which they operate (central government security funds (S.13212), state government security funds (S.13222) and local government security funds (S.13232), or as a sub-sector (S.1314) separate from the operations of all levels of government. The 1968 SNA recommended only the latter classification, i.e., social security funds were shown as a separate sub-sector.

    • Inclusion of an additional sub-sector for state government

      Reference: chapter IV, paragraphs 4.123 to 4.127

    • 28. The 1993 SNA introduces state government (S.1312) as an additional level of government between central (S.1311) and local (S.1313) government. This breakdown is only to be applied in those countries where it is meaningful.

    • Presentation of consolidated public sector accounts in supplementary tables

      Reference: chapter XIX, paragraphs 19.37 to 19.42

    • 29. The 1993 SNA recommends, for supplementary analysis, consolidated presentations of the public sector, covering general government and non-financial public corporations in a manner consistent with GFS.

    Revised sub-sectoring of households based on type of income and introduction of the distinction between formal and informal production activities

    • Reference: chapter IV, paragraphs 4.153 to 4.162; annex to chapter IV; chapter XIX, paragraphs 19.9 to 19.13

    • 30. The 1993 SNA recommends sub-sectoring the households sector on the basis of the nature of the household’s largest source of income (employers’ mixed incomes, own-account workers’ mixed incomes, compensation of employees, property and transfer incomes). Thus, households are allocated to sub-sectors depending on which of the four categories of income is the largest for the household as a whole, even if it does not always account for more than half of total household income. Consequently, the following sub-sectors are distinguished: (a) employers (S.141); (b) own-account workers (S.142); (c) employees (S.143); and (d) recipients of property and transfer income (S.144). The 1993 SNA also suggests sub-sectoring households on the basis of other criteria of an economic, socio-economic or geographical nature. It should be noted that since the 1993 SNA introduces the full set of accounts (including production accounts) for the household sector and its sub-sectors, it allows analysis of the distributional effects of income generation and distribution. The 1968 SNA recommended a similar socio-economic breakdown for the household sector but did not carry it through in all accounts and tables.

    • 31. Unlike the 1968 SNA, the 1993 SNA recognizes that the distinction between formal and informal sectors of the economy is particularly important for many developing countries. The International Conference of Labour Statisticians has developed criteria for the Identification of those production units of the households sector which make up the informal sector as “informal own-account enterprises” or “enterprises of informal employers”. It is recognized, however, that depending on national circumstances, certain production units of the households sector may fall outside the distinction between formal and informal sectors (i.e., units exclusively engaged in agricultural activities, the production of goods for own final use, or the production of services for own final consumption by employing paid domestic workers.

    3. Further specifications of the scope of transactions including the production boundary

    Further specification of the production boundary for household production activities

    • Reference: chapter VI, 6.14 to 6.29; chapter XXI, paragraphs 21.19 and 21.40

    • 32. The production boundary in the 1993 SNA is only slightly different from the one in the 1968 SNA. In defining the production boundary, the 1993 SNA draws on the distinction between goods and services. It includes the production of all goods within the production boundary, and the production of all services except personal and domestic services produced for own final consumption within households (other than the services of owner occupiers and those produced by employing paid domestic staff).

    • 33. With regard to own-account production of goods by households, the 1993 SNA has removed the 1968 SNA limitations which excluded the production of goods not made from primary products, the processing of primary products by those who do not produce them and the production of other goods by households who do not sell any part of them on the market.

    • 34. The coverage of own-account production is clarified. The storage of agricultural goods produced by households is included within the production boundary as an extension of the goods producing process, as is supply of water (water-carrying).

    • 35. The 1993 SNA, like the 1968 SNA, excludes from the production boundary the production of services by households for own final consumption. Included, however, is the production of services of owner-occupied dwellings and the production of services for own final consumption by employing paid domestic staff. The 1993 SNA explains that in the central framework no values are recorded for unpaid domestic or personal services produced within households because the production of such services within households is a self-contained activity with limited repercussions on the rest of the economy, there are typically no prices that can be satisfactorily used to value such services, and the estimated values would not be equivalent to monetary values for analytic or policy purposes. The 1993 SNA does, however, suggest that in satellite accounts an alternative concept of gross domestic product (GDP) be elaborated which is based on an extended production boundary, including estimates for household production of services for own use.

    Voluntary labour inputs are valued on the basis of actual compensation paid

    • Reference: chapter VII, paragraphs 7.20 and 7.23

    • 36. In general, neither the 1993 SNA nor the 1968 SNA includes an estimate of the value of voluntary labour inputs. Labour inputs are valued at actual compensation paid even if this is very low or even zero. However, in the case of production of tangible fixed assets for own use resulting from communal household activities, an estimate of value of labour input is needed in order to calculate the total cost of the assets (if a market price is not available). This inclusion results in mixed income being generated by the production.

    • Allocation of financial intermediation services indirectly measured (FISIM)

      Reference: chapter VI, paragraphs 6.128 to 6.140

    • 37. The 1993 SNA calculates the output of financial intermediation services indirectly measured (FISIM) (this term replaces the term bank service charges used in the 1968 SNA; see paragraph 23 above) in the same way as the 1968 SNA, i.e., as the difference between property income received and interest paid. The property income received should exclude that part which is received from investment of own funds. However, contrary to the 1968 SNA, the 1993 SNA, in principle, recommends to allocate the consumption of these services between users—who could be lenders as well as borrowers—treating the allocated amounts either as intermediate consumption by enterprises or as final consumption or exports. The 1993 SNA suggests that the allocation between different uses could be made on the basis of the difference between interest paid or received by financial intermediaries and a “reference rate” that does not include the value of financial intermediation services, such as an inter-bank lending rate or a central bank loan rate, or some other appropriate method. However, the allocation could be made using different criteria or methods, when appropriate.

    • 38. Nevertheless, the 1993 SNA recognizes that, in practice, it may be difficult to find any method of allocating financial intermediation services indirectly measured among different users and, therefore, accepts that some countries may prefer to continue to use the convention proposed in the 1968 SNA whereby the whole of the services are allocated to intermediate consumption of a notional industry. But, it is recommended that these countries provide supplementary estimates, even if only approximate and very aggregative, of the allocation between intermediate consumption and the main categories of final demand and thus would make it possible to have some estimate of the effect allocation would have on GDP, GNI, and other relevant aggregates. Also, the 1993 SNA requests those countries that allocate financial intermediation services indirectly measured, to identify those allocations separately.

    • 39. The 1993 SNA uses a new term “output of financial intermediation services indirectly measured” to replace the 1968 SNA term “imputed output of bank services”.

    Inclusion, in principle, of all illegal production and other transactions

    • Reference: chapter VI, paragraphs 6.30 to 6.36

    • 40. The 1993 SNA makes it clear that the illegality of a productive activity or transaction is not a reason for excluding it from the System. Comprehensive coverage of illegal activities is, in principle, essential in order not to introduce errors and imbalances in the accounts. For example, failure to record expenditures by households on illegal products will lead to over estimates of their saving and inconsistencies with the financial accounts. The 1968 SNA did not give clear guidance on the coverage of illegal activities.

    • Identification of non-monetary flows and re-routings from other transactions

      Reference: chapter III, paragraphs 3.34 to 3.49; chapter XIX, paragraphs 19.20 to 19.29

    • 41. The 1993 SNA recommends the identification of non-monetary flows and re-routings wherever possible, especially when they are large and significant. In this way, analysts interested in identifying only the monetary transactions in the economy can do so. The 1968 SNA made no such recommendation.

    4. Changes in valuation and in the treatment of product taxes

    Distinction between basic, producers’ and purchasers’ prices in the valuation of outputs and inputs

    • Reference: chapter VI, paragraphs 6.210 to 6.238

    • 42. The 1993 SNA clarifies the terminology used for the valuation of products. The System refers to output prices received by producers, which may be either basic prices or—if difficult to implement—producers’ prices, and to purchasers’ prices that apply to intermediate and final uses. The basic prices exclude all taxes less subsidies on products (D.21 less D.31) but the producer’s prices only exclude invoiced value added tax (VAT) (D.211). Purchasers’ prices, which are paid by intermediate or final users, include trade and transport margins.

    • 43. When using basic prices to value output and purchasers’ prices to value intermediate consumption, there are no product taxes less subsidies payable out of value added. They are treated as taxes less subsidies on uses, payable by the purchasers of the products. On the other hand, when producers’ prices are used to value output, some taxes on products have to be paid out of value added. VAT and taxes and duties on imports are treated as taxes on uses payable by the purchasers of the products and therefore are not payable out of value added.

    • 44. A consequence of the above treatment is that the sum of the values added of all enterprises in the economy is not equal to GDP. In the case of valuation of output in basic prices, all taxes less subsidies on products including import taxes need to be added to the sum in order to derive GDP; in the case of valuation of output in producers’ prices, only VAT and import taxes need to be added.

    • 45. The 1993 SNA has eliminated the 1968 SNA distinction between true and approximate basic prices since the “true price” is a hypothetical concept which is not observable. The 1968 SNA used producers’ prices as the main valuation method for output and input. Basic prices together with commodity taxes were treated as a further subdivision of producers’ prices, which was applied to both output and intermediate inputs for the purposes of input-output analysis.

    Revision of the classification and terminology of taxes; explicit treatment of VAT

    • Reference: chapter VII, paragraphs 7.49 to 7.51; chapter VIII, paragraph 8.41

    • 46. The 1993 SNA replaces the 1968 SNA term “indirect taxes” by the term “taxes on production and imports” (D.2), and replaces the distinction between “commodity taxes” and “other indirect taxes and imports” by “taxes on products” (D.21) and “other taxes on production” (D.29). The taxes on products are further subdivided into: (a) VAT-type taxes (D.211); (b) taxes on imports excluding VAT (D.212); (c) export taxes (D.213); and (d) taxes on products, except VAT, import and export taxes (D.214). The 1968 SNA makes only a brief reference to VAT and gives no specific recommendation for its treatment in the accounts.

    • 47. The 1993 SNA has also replaced the 1968 SNA term “direct taxes” by the term “current taxes on income, wealth, etc.,” and the previous category of capital transfers to government, including estate and gift taxes and non-recurrent taxes on property are treated as capital taxes. Alignment of SNA and GFS/OECD tax coverage

      Reference: chapter VIII, paragraphs 8.44 and 8.45

    • 48. The 1993 SNA recommends that breakdowns of taxes beyond the main categories should be in terms of the GFS and OECD Revenue Statistics tax classifications. While no calculation of total taxes is required within the 1993 SNA accounts, compulsory social contributions are summed with taxes to reach the concept of total taxes used by the GFS and OECD Revenue Statistics. For this purpose the 1993 SNA provides a breakdown of social security contributions so that compulsory contributions can be identified separately and added to taxes to match up with the GFS/OECD concept of total taxes.

    5. Distinction between market and other kinds of production and introduction of alternative concepts of consumption and disposable income

    Explicit identification, valuation and treatment of market, own-account and other non-market production

    • Reference: chapter VI, paragraphs 6.44 to 6.56 and 6.88 to 6.101

    • 49. The 1993 SNA distinguishes three types of output: i.e. market output (P.11), output for own final use (P.12) and other non-market output (P.13). Market output is output that is sold at economically significant prices. Output for own final use such as subsistence output of agricultural products or own account produced capital goods, while not sold on the market, are valued at the average prices of similar products traded on the market. Other non-market output which includes goods and services produced by government and non-profit institutions serving households and provided free, or at prices that are not economically significant, to individual households or the community, is valued at cost.

    • 50. The distinction between market producers, producers for own final use and other non-market producers replaces the distinction in the 1968 SNA between “industries” and “other producers”. Producers for own final use which were included in the 1968 SNA in “industries” are now distinguished as a separate category.

    • 51. The three-way split of products and producers is complementary to the ISIC and Central Product Classification (CPC). The ISIC and CPC breakdowns would apply in principle to all three categories of producers and products respectively.

    • 52. The criterion in the 1993 SNA for making a distinction between market and other output makes it possible to include all heavily subsidized public enterprises as market producers provided their prices are considered economically significant from the point of view of cost and demand. The 1968 SNA made a distinction between government producing units that sold the kind of goods and services often produced by what is called “business establishments” (private market producers) and government departments engaged in the usual social and community activities of government. The required criterion for making the distinction in the 1968 SNA was simply the existence of a price, while in the 1993 SNA the distinction between market and non-market output depends on whether the price is economically significant from the point of view of cost and demand. Since it is very rare that the government departments of the 1968 SNA engaged in social and community activities charge significant prices in the 1993 SNA sense, they are treated generally in the same way in the 1993 SNA.

    • 53. The 1993 SNA distinction between market output, output produced for own final use and other non-market output has simplified the principles of valuation. Valuation of products of market producers is always based on the prices for which they are sold in the market. Output produced for own final use is valued on the basis of prices of similar products made by market producers where these exist. Other non-market output is valued as the sum of costs.

    • 54. The 1993 SNA, like the 1968 SNA, treats all current transfers made by government to producers as subsidies, even if they benefit specific groups of the population or all households. However, recognizing the importance of these “consumption” subsidies in some countries, the 1993 SNA recommends a supplementary presentation of subsidies by purpose where “consumption” subsidies can be identified. This presentation would make it possible to show, outside the System, actual final consumption with an alternative valuation that includes the value of consumption subsidies.

    Introduction of new concepts called “actual consumption” and “adjusted disposable income” to supplement the concepts of consumption expenditure and disposable income

    • Reference: chapter IX, paragraphs 9.93 to 9.98

    • 55. The 1993 SNA introduces the concept of actual final consumption (P.4) for households and government to supplement the 1968 SNA concept of final consumption expenditure (presently P.3). Actual final consumption of households covers goods and services which are actually supplied to households, irrespective of whether the ultimate bearers of the expense are government, non-profit institutions serving households or households themselves. The actual consumption concept utilizes the distinction between individual consumption (benefiting identifiable households) and collective consumption (benefiting society as a whole) within final consumption expenditure by government. For households it is equal to the sum of household final consumption expenditure plus individual consumption items identified within consumption expenditure of government and non-profit institutions serving households. For government, actual consumption consists only of collective consumption. Non-profit institutions serving households, by convention, have no actual consumption; their final consumption expenditures are all categorized as individual consumption and, therefore, included with actual consumption of households.

    • 56. The difference between final consumption expenditure (P.3) and actual final consumption (P.4) of households is treated in the accounts of the 1993 SNA as (current) social transfers in kind (D.63) provided by government and nonprofit institutions serving households to households. For households, the imputed transfers are added to disposable income (B.6) to derive the concept of adjusted disposable income (B.7); for government and NPISHs, they are deducted.

    • 57. The 1968 SNA did not identify different concepts of final consumption and disposable income. It only included one concept of final consumption expenditure and one corresponding concept of disposable income. On the other hand, the 1968 SNA had a wider concept of final consumption expenditure of households than the 1993 SNA, as it included not only what households actually paid, but also health and other expenditures paid or reimbursed by government for services that households are free to select or not.

    Treatment of pension and other social insurance contributions and benefits as current transfers affecting disposable income of households

    • Reference: chapter VIII, paragraphs 8.7 to 8.14; chapter IX, paragraphs 9.6, and 9.14 to 9.16, annex IV

    • 58. The 1993 SNA identifies some insurance and pension funds as social insurance schemes. This affects the recording of contributions and benefits of these schemes, especially pensions. The 1993 SNA treats pension contributions and benefits in the secondary distribution of income accounts as current transfers, which affect the level of disposable income of households. In order not to change the value of saving of households and maintain consistency with the item in the financial accounts called “changes in the net equity of households in life insurance reserves and in pension funds” (F.61) in line with the 1968 SNA treatment, the 1993 SNA introduces an adjustment item in the use of income accounts called “adjustment for the change in net equity of households in pension funds” (D.8), which is recorded as “resources” for households and as “uses” for financial corporations (S.12) or other sectors if the funded pension schemes are not institutional units separate from the employers. In the case of pension funds belonging to the financial corporations sector the 1968 SNA only included an entry in the financial account, where the difference between pension contributions and benefits is recorded as part of the change in the net equity of households in pension funds.

    Enlargement of the concept of social insurance to include arrangements with insurance enterprises and education grants

    • Reference: chapter VIII, paragraphs 8.7 and 8.8, and 8.53 to 8.80

    • 59. In the 1993 SNA social contributions and benefits (D.6) are not restricted to transactions with government and employers as they are in the 1968 SNA. They also include arrangements with insurance schemes that satisfy the definition of “social”. Social benefits in the System are current transfers received by households intended to provide for the needs that arise from certain events or circumstances, such as sickness, unemployment, retirement, housing, education or family circumstances. To qualify as social insurance benefits, the transfers must be provided under organized social insurance schemes. Social insurance benefits may be provided under general social security schemes, under private social insurance schemes or by unfunded schemes managed by the employers for the benefit of their existing or former employees without involving other institutional units. Education grants, which in the 1968 SNA were treated as social assistance grants, are treated in the 1993 SNA as social benefits.

    Channelling of social transfers in kind by enterprises to households through “quasi-NPISHs”, provisional treatment for countries in transition

    • Reference: chapter XIX, paragraphs 19.30 to 19.35

    • 60. The 1993 SNA recommends an exceptional and provisional treatment for social transfers in kind (D.63) made by state controlled enterprises in countries in transition to their employees as an extension of government policy to provide health, education and recreational services to the population. As a transitional treatment, it is recommended to create “quasi-NPISHs” which receive a transfer from the parent enterprise and pass them on to households as social transfers in kind to be included in the redistribution of income in kind account. As a consequence of this treatment, these expenditures enter only actual final consumption (P.4) of households and not their final consumption expenditure (P.3), thus affecting adjusted disposable income (B.7) and not disposable income (B.6). The 1968 SNA would have treated these expenditures as compensation in kind, entering consumption expenditure and disposable income of households.

    6. Extension and further specification of the concepts of assets, capital formation and consumption of fixed capital

    Explicit definition of asset and asset boundary and revised classification of assets

    • Reference: chapter X, paragraphs 10.2 to 10.12; annex to chapter XIII

    • 61. In the 1993 SNA the assets recorded in the balance sheets of the System are economic assets. These are defined as entities over which ownership rights are enforced by institutional units, individually or collectively, and from which economic benefits may be derived by their owners by holding or using them over a period of time. With regard to the classification of assets, the 1993 SNA distinguishes at the first level of the classification between non-financial assets (AN) and financial assets/liabilities (AF). Within non-financial assets, it distinguishes between produced and non-produced assets and within each of these between tangible and intangible assets.

    • 62. Produced assets (AN.1) in the 1993 SNA include not only tangible fixed assets (AN.111), but also intangible fixed assets (AN.112) such as mineral exploration (AN.1121), computer software (AN.1122), and entertainment, literary or artistic originals (AN.1123).

    • 63. Non-produced assets (AN.2) in the 1993 SNA also include tangible non-produced assets (AN.21) and intangible non-produced assets (AN.22). The tangible non-produced assets include land (AN.211), subsoil assets (AN.212), non-cultivated biological resources (AN.213) and water resources (AN.214). The intangible non-produced assets include patented entities (AN.221), leases and other transferable contracts (AN.222), purchased goodwill (AN.223) and other intangible non-produced assets (AN.229).

    • 64. In determining the economic asset coverage of the 1993 SNA in the case of natural assets such as mineral reserves, forests, orchards, plantations and so on, the economic benefit criterion is considered to manifest itself in the form of control by an institutional unit. The 1993 SNA includes specific guidelines with regard to natural assets that are economic assets in the SNA sense. Two types are distinguished: i.e., assets whose growth is the result of human cultivation and are treated as produced assets (AN.1), and all other natural assets including land (AN.211), subsoil assets (AN.212), non-cultivated biological resources (AN.213) and water resources (AN.214) that are not cultivated but are under control of institutional units and are treated as non-produced assets (AN.2). The cultivated natural assets that are treated as produced assets (AN.1) are further broken down into two groups, i.e., (a) cultivated assets which are included in the classification under tangible fixed assets (AN.1 11) and cover livestock for breeding, dairy, draught, etc. (AN.1 1141) and vineyards, orchards and other plantations of trees yielding repeat products (AN.11142); and (b) work-in-progress on natural growth products which is included in the classification under inventories (AN.12) as work-in-progress on cultivated assets (AN.1221) and includes the growth of products such as livestock for slaughter, timber, agricultural crops, and fruits that are the products of orchards and plantations.

    • 65. The 1968 SNA did not include much guidance on the balance sheets of the system and consequently provided little information on the coverage of assets. In principle, however, the 1968 SNA included produced tangible and non-produced tangible and intangible assets within its asset boundary, but did not provide for the inclusion of produced intangible assets. As regards natural assets, the 1968 SNA included in principle natural assets in its asset boundary, although in a much less systematic manner. Only livestock growth was recorded as the addition to a produced asset (see paragraph 71 below), and agricultural crops and fruits from orchards and plantations were only recorded when harvested and, therefore, not reflected in additions to produced assets.

    Extension of produced assets and gross fixed capital formation to include expenditure on mineral exploration, computer software and entertainment literary or artistic originals

    • Reference: chapter X, paragraphs 10.33, and 10.96 to 10.101; chapter XXI, paragraph 21.68

    • 66. The 1993 SNA treats expenditures on mineral exploration as gross fixed capital formation resulting in the creation of an intangible fixed asset (AN.1121) under produced assets. All expenditures are included, no matter whether the exploration is successful or not. The average service lives similar to those used by mining or oil corporations in their own assets are suggested as the appropriate guide for the amortization period. The 1968 SNA treated expenditures on mineral exploration as intermediate consumption.

    • 67. The 1993 SNA treats systems and standard applications computer software that a producer expects to use in production for more than one year as an intangible fixed asset (AN.1122), no matter whether the computer software is purchased in the market—separately or together with the hardware—or developed in-house. It also includes databases which the enterprise expects to use for more than one year. The 1968 SNA was interpreted as treating expenditures on software which is bought as an integral part of a major hardware purchase as gross fixed capital formation, but software purchased or developed independently was treated as intermediate consumption.

    • 68. The 1993 SNA includes in output literary or artistic works (i.e., the writing of books, composing music, etc.) which are produced for sale whether they are produced by employees or by self-employed workers. Furthermore, it recognizes that these outputs can contribute to production in subsequent periods and, therefore, treats expenditures on these outputs as gross fixed capital formation resulting in the creation of an intangible fixed asset (AN.1123). Consequently, fees, commissions, royalties, etc. stemming from licensing others to make use of the works are treated as payments for services rendered. Accordingly, copyrights no longer appear as non-financial non-produced intangible assets giving rise to property income, as they did in the 1968 SNA.

    • 69. Like the 1968 SNA, the 1993 SNA continues to treat expenditures on research and development as intermediate consumption, not gross fixed capital formation. However, it recommends that these expenditures be identified within intermediate consumption to facilitate the development of satellite accounts for research and development. Consequently, there are no produced fixed assets in the accounts to which the legal title of a patent can be linked. Thus, purchase/sale of patents continue to be treated, as in the 1968 SNA, as net purchases of intangible non-produced assets, where the assets to be recorded under “patented entities” (AN.221) are the patented inventions, discoveries or processes that are the result of research and development activity and not the legal titles themselves. It should be noted, however, that the 1993 SNA, by convention, does include licensing related services in output and, therefore, royalty and similar payments in respect of patent licences are considered payment for services and not property income as in the 1968 SNA. The same treatment is applied to payments for services of trademarks and franchising in respect of other non-produced intangible assets.

    Extension of government gross fixed capital formation to include expenditure by the military on structures and equipment except weapons

    • Reference: chapter X, paragraphs 10.71 to 10.74

    • 70. The 1993 SNA treats as gross fixed capital formation all expenditures by the military on fixed assets of a kind that could be acquired by civilian users for purposes of production and that the military use in the same way; this would include airfields, docks, roads, hospitals and other buildings or structures. On the other hand, military weapons, and vehicles and equipment whose sole purpose is to launch or deliver such weapons, are not to be treated as gross fixed capital formation but as intermediate consumption. The 1968 SNA excluded from gross fixed capital formation almost all military expenditures except those on construction or alteration of family dwellings for personnel of the armed forces.

    Treatment of cultivated natural growth as output

    • Reference: chapter X, paragraphs 10.89 to 10.94, and 10.112 to 10.115

    • 71. The 1993 SNA includes in output the growth of cultivated assets including the growth of livestock and fishstock, vineyards, orchards, plantations and timber tracts, as well as the growth of agricultural crops and fruits which are products of plantations and the like. Prior to the harvest or use of the products, the growth of agricultural crops, livestock for slaughter, timber, etc., is to be recorded as work-in-progress (part of changes in inventories). Cultivated growth should be distinguished from growth of biological resources, which are not cultivated but are under human control (such as forests used in timber logging); such growth is treated as other volume changes in the 1993 SNA. Output based on controlled but not cultivated growth and also output based on non-controlled natural assets (e.g., gathering of fuel wood, fruit gathering, hunting, etc.) continues to be recorded when the products are harvested. The 1968 SNA included in output (and subsequently in gross fixed capital formation) only the natural growth of livestock and fishstock. Output of agricultural products, orchards and timber tracts was recorded only at the moment of harvest.

    Treatment of assets with a long production period as changes in inventories (work-in-progress) until such time as the owner is deemed to have taken ownership

    • Reference: chapter X, paragraphs 10.79 to 10.83; and 10.87

    • 72. The 1993 SNA clarifies that fixed assets with a long period of production should be recorded as gross fixed capital formation at the time when the ownership of the output produced is transferred to the eventual user of the asset. Output that is not transferred and continues to belong to the builder or producing enterprise must be recorded as either work-in-progress or as an addition to inventories of finished goods, depending on whether the asset is finished or not. However, a user is deemed to assume ownership of buildings and other structures prior to their completion in two situations: under a contract for purchase/sale agreed in advance, and own-account construction. In the case of large equipment goods, the change of ownership does not occur until the users take delivery of the goods. The 1968 SNA recommended that fixed assets with a long production period should be recorded as gross fixed capital formation at the moment the purchaser took legal possession of the assets.

    Treatment of services output as work-in-progress

    • Reference: chapter VI, paragraph 6.77; chapter X, paragraph 10.108

    • 73. The 1993 SNA recognizes that certain kinds of services take a long time to produce, e.g., architectural design, software development, project development, writing of books, etc. Work-in-progress in service industries is to be recorded as change in inventories by the producers of such services. The 1968 SNA did not include any work-in-progress on services.

    Extension of government inventories to include all goods held in inventories

    • Reference: chapter VI, paragraph 6.106; annex to chapter XIII

    • 74. The 1993 SNA includes all goods held by the government in inventories. This new treatment is symmetrical with the treatment of goods stored by market producers. The 1968 SNA treated strategic materials, grains and other commodities of special importance to the nation as inventories; in general, stores of other commodities were not included in inventories.

    • Retain treatment of purchases of consumer durables as final consumption expenditure but include stocks of consumer durables as memoranda items in the balance sheets

      Reference: chapter XIII, paragraphs 13.85 and 13.86; annex to chapter XIII

    • 75. Like the 1968 SNA, the 1993 SNA treats expenditures by households (excluding expenditures by unincorporated enterprises owned by households) on consumer durable goods as final consumption. However, the 1993 SNA recognizes that information about stocks of consumer durables (defined as durable goods that are not used by households as stores of value or by unincorporated enterprises owned by households for purposes of production), with detail by type of durable is of considerable interest and therefore should be presented as memoranda items to the balance sheets.

    Gross fixed capital formation not resulting in a separate identifiable produced asset is reflected as an increased value of the produced or non-produced asset embodying it

    • Reference: chapter X, paragraphs 10.45 to 10.55

    • 76. In the 1993 SNA not all gross fixed capital formation is reflected in a separate identifiable asset in the balance sheet. In some instances there is not a one-to-one correspondence between transactions in gross fixed capital formation by type and fixed assets by type. Examples of such gross fixed capital formation items include costs of ownership transfer and major improvements to existing fixed assets, such as buildings or computer software, or tangible non-produced assets such as land, that increase their productive capacity, extend their service lives or both. The relation between the classification of changes in assets and assets was not explicitly dealt with in the 1968 SNA.

    • 77. Consumption of fixed capital related to these capital formation elements is treated as an integral part of consumption of fixed capital of the produced assets to which these expenditures are applied. As in the case of other consumption of fixed capital, it is calculated over the life time of the asset to which the expenditures relate. By convention the consumption of fixed capital also includes the writing off of the elements of gross fixed capital formation that add to the value of non-produced assets.

    Extension of capital formation to include expenditures on valuables

    • Reference: chapter X, paragraphs 10.7 and 10.122 and 10.123; chapter XII, paragraphs 12.22 and 12.23; annex to chapter XIII

    • 78. The 1993 SNA includes a third category of capital formation called “acquisitions less disposals of valuables” (P.53), covering expenditures on produced assets that are not used primarily for production or consumption, but acquired and held as stores of value. Examples of valuables are precious metals (non-monetary gold if used as store of value) and stones, antiques and other art objects. When a valuable which was previously not included in the balance sheet of any sector becomes an economic asset in the 1993 SNA sense (see paragraph 61 to 65 above), it enters the balance sheet of the sector in question through the account for other volume changes (economic appearance of produced assets). The 1968 SNA treated these acquisitions less disposals in various ways. In the case of households they were dealt with as final consumption expenditure.

    Treatment of historical monuments as produced assets

    • Reference: chapter X, paragraph 10.85; chapter XII, paragraphs 12.22 to 12.24; chapter XIII, paragraph 13.37

    • 79. Historical monuments—which may include old as well as new historical monuments—are treated in the 1993 SNA as produced assets. They are not separately classified but included as part of the categories of produced assets that refer to dwellings (AN.1111) and other (non residential) buildings and structures (AN.1112). Sales and purchases of historical monuments are treated as positive gross fixed capital formation of the purchasing sector and as negative capital formation of the sector selling the asset. When a historical monument which was previously not included in the balance sheet of any sector becomes an economic asset in the 1993 SNA sense (see paragraphs 61 to 65 above), it enters the balance sheet of the sector in question through the other changes in the volume of assets account (economic appearance of produced assets). The 1968 SNA did not specifically deal with the treatment of historical monuments.

    Treatment of fixed assets resulting from community activities as output of household production activities and as gross fixed capital formation of the sector responsible for their upkeep

    • Reference: chapter X, paragraph 10.85

    • 80. The 1993 SNA treats construction activities carried out collectively by groups of volunteers as production carried out by the households involved. The fixed assets produced in this way are recorded as output and gross fixed capital formation of households first and then they are allocated to the balance sheet of the sector responsible for their upkeep (non-profit institutions serving households or government). The allocation is accomplished by making a capital transfer which involves a negative gross fixed capital formation of households and a positive gross fixed capital formation of the sectors non-profit institutions serving households or general government. While the 1968 SNA also treated the output as gross fixed capital formation, it did not provide explicit guidance on the sector to which such gross capital formation should be allocated.

    Extension of consumption of fixed capital to assets such as roads, dams and breakwaters

    • Reference: chapter X, paragraph 10.78

    • 81. The 1968 SNA suggested that consumption of fixed capital need not be calculated in respect of such assets as roads, dams and breakwaters because it was assumed that the maintenance and repair performed on these assets was sufficient to ensure that these assets had infinite service lives. In practice, most assets of this kind have finite lives even though proper repair and maintenance may result in long lifespans. For this reason, the 1993 SNA recommends that consumption of fixed capital should be calculated for assets such as roads, dams and breakwaters.

    7. Further refinement of the treatment and definition of financial instruments and assets

    Description of a broad range of financial assets and distinction between actual and contingent assets

    • Reference: chapter XI, paragraphs 11.16 to 11.19 and 11.25 to 11.28

    • 82. The 1993 SNA includes a more precise and elaborate description of a broad range of financial assets and distinguishes them from non-financial assets and from financial “contingent positions”. The distinction between a financial liability and a contingent liability is made on the basis of the conditionality of the relationship between the transactors. Where an unconditional relationship exists on the part of both debtor and creditor, there exists an actual financial asset and liability. Thus, bankers’ acceptances are classified as actual assets but letters of credit are not. The 1968 SNA had limited descriptions of financial assets and therefore also did not deal with contingent positions.

    Distinction between monetary and non-monetary gold

    • Reference: chapter XI, paragraphs 11.63 to 11.66

    • 83. The 1968 SNA recognized two kinds of gold: (a) gold held as a financial asset, including gold owned by the monetary authorities which was not separately identified; and (b) other gold used for industrial purposes. The 1993 SNA distinguishes three types of gold: (a) monetary gold owned by the monetary authorities as a component of international reserves; (b) gold held as a store of value; and (c) other gold used for industrial purposes. The last two types of gold may be owned by any kind of institutional unit or sector. Items of gold jewellery of relatively small value purchased by households are not treated as assets, but as part of household consumption expenditure. As was noted in paragraph 78 above, gold purchased as a store of value is treated as a valuable and included in gross capital formation.

    Less emphasis on the distinction between different types of deposits

    • Reference: chapter XI, paragraphs 11.69 to 11.73

    • 84. The 1968 SNA included a distinction between “currency and transferable deposits” and “other deposits”. However, in view of the emphasis placed on broad money as opposed to narrow money, the 1993 SNA includes only the total of “currency and deposits” (AF.2) in the first level of classification of financial assets while suggesting that sub-elements should be compiled only if they are analytically useful.

    Less emphasis on the short- versus long-term distinction with regard to loans and other financial assets

    • Reference: chapter XI, paragraphs 11.72 to 11.84

    • 85. The 1968 SNA short-term/long-term maturity distinction has become less relevant because of the improved facilities available in financial markets to re-finance short-term financial assets. Therefore, the 1993 SNA retains this distinction but only as a secondary classification criterion.

    • Changes to the treatment of insurance

      Reference: chapter VI, paragraphs 6.135 to 6.141; chapter VIII, paragraphs 8.69, 8.70, and 8.85 to 8.89; chapter XI, paragraphs 11.89 to 11.99; annex IV

    • 86. The 1993 SNA has replaced the 1968 term “casualty insurance” by the term “non-life insurance”.

    • 87. The basis of measuring the output of insurance has been changed. Income from the investment of insurance technical reserves is now taken into account when measuring the value of the services provided to policyholders. The income is distributed to policyholders as a property income flow, “property income attributed to insurance policyholders (D.44)” and repaid to the insurance corporations as premium supplements. This treatment applies to both life and non-life insurance.

    • 88. In the 1968 SNA non-life premiums and claims were recorded when payable. In the 1993 SNA non-life premiums are recorded on the basis of premiums earned and non-life claims on a claims due basis. The differences between premiums payable and earned and claims due and payable are included in a new financial asset, “Prepayments of premiums and reserves against outstanding claims (AF.62)”.

    Distinction between financial leasing and operating leasing

    • Reference: chapter VI, paragraphs 6.123 to 6.127; chapter VII, paragraph 7.109; chapter X, paragraph 10.44; chapter XI, paragraph 11.31; chapter XIII, paragraphs 13.23 and 13.24

    • 89. The 1993 SNA recognizes financial leases as financial instruments. Financial leases are distinguished from operating leases in that the former cover leases where the intention is to transfer all risks and rewards incident to ownership to the user of the asset. Assets acquired under financial leasing arrangements are to be treated as assets of the lessees, and the lessors hold a corresponding financial asset which is the equivalent of a loan. Lease payments under financial leases must be divided between interest payments recorded under current transactions and repayment of the loan recorded in the financial account. The 1968 SNA did not recognize financial leases and, as a consequence, treated them in the same manner as operating leases.

    Identification of new financial instruments: repurchase agreements, derivatives and secondary instruments, deep discounted bonds

    • Reference: chapter XI, paragraphs 11.32 to 11.43

    • 90. The 1993 SNA identifies and provides descriptions of a number of new financial instruments which were not treated explicitly in the 1968 SNA, including repurchase agreements, derivatives and secondary instruments and deep discounted bonds.

    • 91. Repurchase agreements include the simultaneous sale of securities with the agreement to repurchase those same securities at a later date; they are regarded as financial instruments that are similar to loans secured by securities.

    • 92. The 1993 SNA recommends that the difference between the issue price and the value at maturity of zero-coupon and other deep-discounted bonds should be treated as interest and that this interest should be converted into a series of annual or quarterly payments over the full lifetime of the instruments. Deep discounted bonds were not dealt with explicitly in the 1968 SNA.

    8. Harmonization between concepts and classifications of the 1993 SNA and the fifth edition of the Balance of Payments Manual

    Centre of economic interest as basic criterion for determining residence or non-residence of entities and one-year rule as operational guideline

    • Reference: chapter XIV, paragraphs 14.12 to 14.34

    • 93. The 1993 SNA and the fifth edition of the BPM use the “centre of economic interest” as the basic criterion for determining whether or not an entity is a resident. The 1993 SNA specifies that an institutional unit be normally deemed to have a centre of economic interest if it has already engaged in economic activities and transactions in the country for one year or more or if it intends to do so for one year or more. However, the 1993 SNA emphasizes that one year is suggested only as a guideline and not an inflexible rule.

    • 94. With regard to the residence of individuals, the 1993 SNA, as well as the fifth edition of the BPM, recommends that students should be treated as residents of the country from which they originate however long they study abroad, provided they maintain an economic attachment with their country of origin. The rationale behind this change from the 1968 SNA is that most students studying abroad return to their country of origin upon completion of their studies. With regard to the residence of individuals working abroad under long-term contracts and of technical assistance personnel, the 1993 SNA recommends no changes, in principle, from the 1968 SNA, but introduces a number of clarifications. In particular, it specifies that technical assistance personnel under bilateral agreements are regarded as residents of the country where they are working if they are staying for more than one year. This treatment is consistent with the treatment of personnel operating in the commercial sector and through international organizations. The fifth edition of BPM, follows the same treatment as the 1993 SNA as concerns technical assistance personnel, constituting a change from the fourth edition.

    • 95. With regard to the residence of enterprises, the 1993 SNA recommends little change from the 1968 SNA, except in the treatment of installation services and of enterprises engaged in construction. The 1993 SNA recommends flexible application of the one-year rule as a guideline in both instances. Enterprises engaged in installing equipment abroad are considered residents of their home country even if the installation takes more than one year to complete. As for enterprises (or site offices) engaged in construction, criteria in addition to the one-year rule are introduced to help determine their residence. Included are such factors as whether or not there are separate sets of accounts maintained, payment of taxes, substantial physical presence, etc. The fifth edition of BPM follows the same treatment.

    Goods exported or imported for processing and re-imported or re-exported thereafter are recorded gross

    • Reference: chapter XIV, paragraphs 14.61 to 14.64

    • 96. The fifth edition of the BPM as well as the 1993 SNA recommend that goods that are sent abroad for processing and later on re-imported should be recorded gross by the processing economy as well as by the economy that sent the goods for processing, if the processing involves a substantial physical change in the goods. The value of the good before and after processing should be shown as part of the trade in goods. This recommendation does not entail any change for the 1993 SNA from the 1968 SNA but does constitute a change between the fourth and fifth edition of the BPM. However, the BPM, while agreeing in concept, recommends on practical grounds that all processing transactions be recorded under goods on a gross basis.

    Distinction between the treatment of investment goods exported/imported for repair

    • Reference: chapter XIV, paragraph 14.91

    • 97. The 1993 SNA as well as the fifth edition of the BPM make a distinction between repairs performed on investment goods and repairs performed on other goods. The value of repairs on investment goods should be shown as part of trade in goods while other repairs should be classified as service items. The 1968 SNA did not make this distinction. The BPM, on practical grounds, however, includes the value of all repairs as part of trade in goods.

    Refinement of the classification of international transactions in services in order to identify separately services, income flows, transfers

    • Reference: chapter XIV, paragraphs 14.94 to 14.124

    • 98. The fifth edition of the BPM, includes an expanded classification of international transactions in services, including financial and communication services. This BPM classification of services is compatible with the distinction made in the SNA between services on the one hand and income and transfer flows on the other. The details of the expanded classification are generally consistent with the CPC, which is the product classification used in the SNA. This implies no change in the SNA, but does constitute a change between the fourth and fifth edition of the BPM.

    Valuation of total imports of goods f.o.b. values and imports by product groups in c.i.f. values

    • Reference: chapter XIV, paragraphs 14.36 to 14.43

    • 99. The 1993 SNA, in conformity with the fifth edition of the BPM, values total imports of goods on an f.o.b. basis, i.e., excluding the cost of insurance and freight after the goods have left the frontier of the exporting country. Thus, the 1993 SNA includes the transport and insurance services provided by non-residents after the goods have left the frontier as imports of services. Since, as a rule, for the detailed analysis of imports of goods in supply and use and input-output tables it is not possible to obtain f.o.b. values for each category of imported goods, a global adjustment has to be made in the supply and disposition estimates in order to adjust the c.i.f. total of imports to a f.o.b. valuation. The 1968 SNA always valued imports of goods in c.i.f. values, i.e., including the cost of insurance and freight services provided by residents or non-residents. Consequently, the 1968 SNA did not record the transport and insurance services provided by non-residents on imported goods as imports of services, and imputed an export of services corresponding to transport and insurance services provided by residents on imported goods. These two distortions have disappeared in the 1993 SNA.

    Sole use of the national concept of final consumption (expenditure)

    • Reference: chapter IX, paragraphs 9.70 and 9.71

    • 100. The 1993 SNA no longer makes a distinction between final consumption on a domestic and national basis. As a consequence, in principle it would no longer separately identify direct purchases in the domestic market by non-resident households which are exports of goods and services and resident households expenditures abroad which are imports of goods and services within the classification of international transactions in services as did the 1968 SNA. Nevertheless, as these direct purchases cannot readily be identified as specific types of goods and services, they remain treated as separate adjustment items in the supply and use table or input-output tables which comprise various types of goods and services that are lumped together as “travel” in the BPM. The 1968 SNA showed private final consumption expenditure as derived from final consumption of households in the domestic market first, and then adjusted it to a national basis by deducting direct purchases in the domestic market by non-resident households and adding resident household expenditures abroad.

    Separate identification of direct foreign investments and the recording of reinvested earnings on directforeign investment

    • Reference: chapter VII, paragraphs 7.122 to 7.125; chapter XI, paragraph 11.101; chapter XIII, paragraph 13.87; chapter XIV, paragraphs 14.123 and 14.151 to 14.154

    • 101. The 1993 SNA recommends that the total and major subcomponents of direct investment be shown as a memorandum item to the relevant financial instruments in the financial account and in the balance sheet.

    • 102. The 1993 SNA, in conformity with the fifth edition of the Balance of Payments Manual, includes the international flows of reinvested earnings attributable to direct investors (D.43) as part of the property income flow (D.4) in the external and corresponding domestic sector accounts. A contra-entry, equal and with opposite sign, is included in the financial account, under the item called “shares and other equity” (AF.5). Direct investment is defined as in the fifth edition of the Balance of Payments Manual and in the OECD Detailed Benchmark Definition of Foreign Direct Investment.

    Treatment of write-off of bad debts and expropriation of property without compensation as other changes in volume of assets

    • Reference: chapter XII, paragraphs 12.37 to 12.39; and 12.50

    • 103. The 1993 SNA, in conformity with the fifth edition of the BPM, treats the write-off of bad debt and expropriation of property without compensation as “other volume changes”. These actions affect outstanding claims in the balance sheets but they are not transactions to be included in the capital and financial accounts. In contrast, when the cancellation of a debt involves a voluntary, contractual arrangement (debt forgiveness) between the parties concerned, it is considered a financial transaction and the offsetting entry to the reduction in debt should be treated as a capital transfer. The 1968 SNA treated the write-off of bad debts, etc. as transactions recorded in the second part of the capital finance account with an offsetting entry reflected under current transfers.

    Recording of reclassification of commodity gold to monetary gold and vice versa and the allocation/cancellation of SDRs as other changes in volume of assets

    • Reference: chapter XI, paragraphs 11.63 to 11.68; chapter XII, paragraph 12.59

    • 104. The 1993 SNA treats gold monetization/demonetization in the same way as the fifth edition of BPM, that is, as entries in the other changes in the Volume of Assets Account. The 1968 SNA treated these transactions as exports and imports in the merchandise trade account and did not deal with SDRs because, at that time, SDRs were not in existence. The fifth edition of the BPM incorporates the same treatment as the 1993 SNA, in contrast to the inclusion of monetization/demonetization of gold and the allocation and cancellation of SDRs among balance of payments transactions in the fourth edition.

    Incorporation of explicit guidelines for exchange rate conversion

    • Reference: chapter XIV, paragraphs 14.77 to 14.84

    • 105. According to both the 1993 SNA and the fifth edition of the Balance of Payments Manual, the exchange rate to be used for conversion from one currency into another is the rate prevailing at the transaction date, or if that is not available, the average rate for the shortest period applicable. The midpoint between buying and selling rates should be used, and the difference between that rate and the buying or selling rate is to be classified as a financial auxiliary service charge. In the case of multiple exchange rates that are the result of official exchange rate policies, the net proceeds accruing to the authorities as a result of transactions involving these multiple rates should be treated as implicit taxes or subsidies. These taxes or subsidies are calculated for each transaction as the difference between the value of the transaction at the actual exchange rate and a “unitary rate” which is calculated as the weighted average of all transactions in the external account. The implicit taxes appear as global adjustments in the external accounts with counterpart items in the central bank or government accounts. The 1968 SNA did not provide any explicit guidelines for conversion of transactions and/or treatment of revenues obtained from the spread between buying and selling rates of foreign currency nor for the case of multiple exchange rates.

    9. Price and volume measures and introduction of real income measures

    Introduction of new concept of real national disposable income into the System

    • Reference: chapter XVI, paragraphs 16.151 to 16.161

    • 106. The 1993 SNA incorporates the calculation of trading gains and losses from changes in the terms of trade as an integral part of the System. These gains and losses are added to GDP at constant prices to derive real GDP. In the calculation of gains and losses from changes in the terms of trade, the 1993 SNA suggests that, if there is uncertainty about what numeraire index to select to deflate the current trade balance, the arithmetic average of price indexes for exports and imports should be used.

    • 107. The 1993 SNA includes net national disposable income in real terms and derives it sequentially from GDP in constant prices in two alternative ways. The recommended method is to calculate, first, real GDP as described above and then calculate real net national disposable income by using the price deflator for gross national final expenditures (final consumption expenditure plus gross capital formation) to convert net primary incomes and current transfers from abroad to real terms. However, the System recognizes that there is no unique way of defining income aggregates in real terms and, therefore, suggests an alternative method of deflation where all net current receipts from abroad including exports minus imports, primary incomes and current transfers are deflated by a single deflator, i.e., the implicit deflator for net national final expenditures.

    Retain nominal interest as the SNA concept

    • Reference: chapter VII, paragraphs 7.109 to 7.111; chapter XII, paragraphs 12.77 to 12.81

    • 108. The 1993 SNA, as did the 1968 SNA, measures interest flows in the allocation of primary income account of the System in nominal terms. However, as the revaluation accounts present holding gains/losses on all assets and liabilities that are denominated in monetary terms and make a distinction between nominal, neutral and real holding gains/losses, users can adjust nominal interest flows to arrive at real interest flows. (An annex to chapter XIX includes a parallel treatment of interest under significant inflation.)

    Price and volume measurements

    • Reference: chapter XVI, paragraphs 16.14 to 16.59

    • 109. The 1993 SNA is more flexible with regard to the choice of index number to calculate price and volume measures for GDP and other aggregates. The best single measure of changes in the volume of GDP is considered to be an annual volume chain index for GDP which can also be used to generate value series by extrapolating GDP in the base year. However, chain indices do not generate series for interrelated aggregates that are additively consistent, and it is, therefore, recommended that Laspeyres volume indices on a fixed base year should also be calculated so that additive time series of values at the constant prices of the base year can also be shown. Such Laspeyres volume indices have nevertheless to be rebased every five years or so, and at least every ten years. The 1968 SNA did not recommend the use of chain indices.

    International comparisons of prices and volumes

    • Reference: chapter XVI, paragraphs 16.82 to 16.84

    • 110. The 1993 SNA recommends that comparisons of the volume of GDP, or GDP per capita, between countries should be based on international volume indices that use the same kinds of methodology as intertemporal price and volume measures. For this purpose, currencies have to be converted at purchasing power parities (PPPs). However, it is recognized that it is more difficult to make reliable price comparisons between countries than between time periods in the same country, and that the construction of a set of transitive multilateral volume indices for a group of countries may create further problems. The 1968 SNA did not consider the use of PPPs to make international comparisons.

    The treatment of quality differences

    • Reference: chapter XVI, paragraphs 16.105 to 16.117

    • 111. The 1993 SNA recommends that most goods or services that are sold at different prices should be treated as different products or, at least, different qualities of the same product when compiling price indices. However, when purchasers are not free to choose because of rationing, lack of information or price discrimination, identical products sold at different prices must be recognized as having the same quality and their prices must be averaged to obtain a single price relative in calculating price indexes.

    Use of representative structures in compiling price indices for unique products

    • Reference: chapter XVI, paragraph 16.125

    • 112. The 1993 SNA recommends that price indexes for unique structures should be based on a limited number of representative structures that should be selected and carefully defined. Experts in the field are then requested to make estimates of what it would cost to build these structures in successive years. The 1968 SNA did not include any guidance on the calculation of price indices for unique products.

    Measurement of the real output of non-market services should be based whenever possible on output indicators

    • Reference: chapter XVI, paragraphs 16.133 to 16.141

    • 113. The 1993 SNA stresses that valuing the output of non-market producers as the sum of costs does not mean that their output cannot be distinguished from the inputs used to produce them. Volume movements for non-market output should therefore be based on output and not input indicators, whenever possible. Adjustments should also be made for changes in quality. The 1968 SNA gave very little guidance on the measurement of the real output of these non-market services.

    Annex II Relationship of the rest of the world account to the balance of payments accounts and the international investment position

    1. Introduction

    • 1. The balance of payments accounts and related data on the international investment position (stocks of external financial assets and liabilities) are closely linked to the overall System of National Accounts. This linkage is reinforced by the fact that, in most countries, data on the balance of payments and international investment position are compiled first, and subsequently incorporated in relevant external account components of the rest of the world account of the System. There is virtually complete concordance between the SNA and the Balance of Payments Manual (the Manual) with respect to such issues as the delineation of resident units (either producers or consumers), valuation of transactions and of the stock of external assets and liabilities, time of recording of transactions, conversion procedures, coverage of international transactions in goods and services, income flows, current transfers, capital transfers, foreign financial assets and liabilities, and coverage of the international investment position. There are, however, differences in classification or level of detail in the rest of the world account and the Manual. These reflect, inter alia, differences in analytical requirements and the need, in the SNA, to adopt a uniform classification scheme for all sectors of the economy. The bulk of the discussion in this annex will focus on the relationship between aggregates and details contained in the rest of the world account and corresponding items in the Manual.

    2. Resident units

    • 2. The SNA and the Manual identify resident producers and consumers in an identical fashion. In the Manual, chapter IV on residence is entirely consistent with chapter XIV of the SNA. Both systems identify resident units by invoking the concept of the centre of economic interest and the definition of economic territory. (These definitions are elaborated in earlier chapters.)

    3. Valuation

    • 3. The SNA and the Manual use market price as the primary basis of valuation. In transaction accounts, market price valuation refers to the actual price agreed upon by transactors (i.e., the amount that a willing buyer pays to acquire something from a willing seller when the exchange is one between independent parties and one into which nothing but commercial considerations enter). Chapter V of the Manual notes the need to apply market price proxies or equivalents in situations in which a market price in its literal sense cannot be determined (e.g., the possible case of transfer pricing that significantly distorts measurement in resource transfers between affiliated enterprises, barter transactions, grants in kind, etc.). In balance sheet accounts affecting external claims and liabilities, both systems advocate the use of end-of-period market (current) prices or proxies thereof.

    4. Time of recording

    • 4. In the SNA and the balance of payments, the “time of recording” for transactions is the same as that for accrual accounting (i.e., when economic value is created, transformed, exchanged, transferred, or extinguished). Claims and liabilities are deemed to arise when there is a change in ownership. Both systems essentially adopt an identical application of the accrual basis in the case of specific categories of transactions. Thus, for example, exports and imports of goods are, in principle, recorded on a change of ownership basis, although in both systems specific exceptions are noted with regard to goods under financial lease, goods shipped between affiliated enterprises, goods for processing, and goods underlying merchanting transactions. Services are recorded when actually rendered—a time that often coincides with the time at which the service is produced. Interest is recorded on an accrual basis; dividends are recorded as of the date they are payable. Reinvested earnings on direct investment are recorded in the period in which the earnings are generated. Transfers—taxes, fines, etc.—that are imposed by one party on another are recorded as of the date of occurrence of the transaction that gives rise to the liability to pay; other transfers are recorded at the time that the resources to which they are offsets change ownership. Transactions in financial claims and liabilities are recorded on a change of ownership basis (i.e., when both the creditor and debtor enter the claim and liability, respectively, on their books). Chapter VI of the Manual provides a full discussion of the application of the accrual basis underlying the balance of payments accounts.

    5. Conversion procedures

    • 5. Both systems employ consistent procedures for converting transactions denominated in a variety of currencies or units of account into the unit of account (usually the national currency) adopted for compiling the balance of payments statement or the national accounts. Under a single exchange rate system, the SNA and the Manual suggest the use of the market exchange rate prevailing at the time the transaction takes place. This rate is defined as the midpoint between buying and selling rates applicable to the transaction or, alternatively, the average rate for the shortest period applicable. When parallel markets are in existence, the appropriate conversion rate is the rate (i.e., midpoint spot rate) applying to foreign currencies purchased/sold in respective parallel markets.

    • 6. A system of multiple official exchange rates gives rise to implicit taxes and subsidies. The SNA recommends that transactions be converted at the actual (multiple) rates applicable but that global adjustments—reflecting the amount of taxes or subsidies—be shown in the rest of the world account and counterpart entries be made under capital transfers. Taxes and subsidies are calculated as the difference between the values of transactions at the actual multiple rates applicable to specific transactions and their values at a unitary rate, which is calculated as a weighted average of all official rates used for external transactions. When multiple rates exist, the Manual suggests using either a unitary rate or a principal rate, that is, the actual (multiple) exchange rate that applies to the largest part of external transactions.

    • 7. As far as balance sheet items (stocks of external financial assets and liabilities) are concerned, both systems suggest the use, for conversion, of actual market exchange rates applicable to specific assets and liabilities on the date to which the balance sheet relates.

    6. Classification and linkages

    • 8. Although harmonization—in terms of the coverage of major aggregates—has been attained between both systems, differences in levels of detail reflect differences in analytical requirements, the relative quantitative significance of some items in international transactions, and constraints imposed by the internal structures of the respective systems. Nonetheless, bridges can be constructed to derive relevant national accounting flows and stocks from balance of payments accounts and the international investment position.

    • 9. In terms of transactions, the SNA distinguishes the following accounts in respect of the rest of the world account (external transactions account): V.I: External account of goods and services; V.II: External account of primary incomes and current transfers; V.III.1: Capital account, and V.III.2: Financial account, which are components of V.III: External accumulation accounts. In the Manual, the transactions reflected in Accounts V.I and V.II are contained in the current account component of the balance of payments accounts, while those reflected in Account V.III.1 are contained in the capital account component of the capital and financial account of the balance of payments. The flows reflected in V.III.2 are shown in the financial account component of the capital and financial account. Account V.III.3.1: Other changes in volume of assets, and Account V.III.3.2: Revaluation account, are contained as separate subdivisions of the international investment position statement in the Manual. Thus, account V.III.3.1 corresponds to the column for other adjustments in the international investment position, while Account V.III.3.2 corresponds to the columns for valuation changes (i.e., price changes and exchange rate changes) in the international investment position. Account V.IV: External assets and liabilities account, of the SNA is equivalent to the international investment position in the Manual, the international investment position is that part of the national wealth statement representing the stock of external financial assets and liabilities. Tables A.II.1 to A.II.6 in this annex provide a reconciliation between the categories shown in relevant external accounts of the SNA and corresponding items in balance of payments accounts and the international investment position. Tables A.II.7 to A.II.9 in this annex refer to the classification scheme underlying balance of payments accounts and the international investment position statement as they are reflected in the Manual. Items denoted with an asterisk(*) are identified as additional details needed to permit the derivation of relevant national accounting flows from balance of payments and international investment position data.

    Tables. Reconciliation of the rest of the world account with the balance of payments accounts

    Table A.II.1.Account V.I External account of goods and services
    SNA categoriesCorrespond toBalance of payments standard components (items), additional details, and aggregates
    UsesCredit
    P.6Exports of goods and servicesItem 1.A.a and 1.A.b.1-11, as noted below
    P.61Exports of goodsItem 1.A.a goods
    P.62Exports of servicesSum of items 1.A.b.1-11 services plus items 1.B.2.2.2.1.1 and 1.B.2.3.1 financial intermediation charge indirectly measured.
    ResourcesDebit
    P.7Imports of goods and servicesItems 1.A.a and 1.A.b.1-11, as noted below
    P.71Imports of goodsItem 1.A.a goods
    P.72Imports of servicesSum of items 1.a.b.1-11 services plus items 1.B.2.2.2.1.1and 1.B.2.3.1 financial intermediation charge indirectly measured.
    B.11External balance of goods and servicesItem 1.A
    Table A.II.2.Account V.II: External account of primary incomes and current transfers
    SNA categoriesCorrespond toBalance of payments standard components (items), additional details, and aggregates
    UsesCredit
    D.1Compensation of employeesItem 1.B.1 compensation of employees
    D.29Other taxes on productionItem 1.C.1.2 other taxes on production
    D.39Other subsidies on productionItem 1.C.1.3 other subsidies on production
    D.4Property incomeItem 1.B.2 investment income minus items 1.B.2.2.2.1.1 and 1.B.2.3.1 financial intermediation charge indirectly measured.
    D.5Current taxes on income, wealth, etc.Item 1.C.1.1 current taxes on income, wealth, etc.
    D.61Social contributionsItem 1.C.1.4 social contribution
    D.62Social benefitsItem 1.C.2.2.5 social benefits
    D.7Other current transfersItem 1.C.2.1 workers’ remittances plus item 1.C.1.6 other current transfers of general government plus item 1.C.2.2.6 other current transfers of other sectors.
    D.8Adjustment for the change in net equity of households in pension funds*
    ResourcesDebit
    D.1Compensation of employeesItem 1.B.1 compensation of employees
    D.29Other taxes on productionItem 1.C.2.2.2 other taxes on production
    D.39Other subsidies on productionItem 1.C.2.2.3 other subsidies on production
    D.4Property incomeItem 1.B.2 investment income minus items 1.B.2.2.2.1.1 and 1.B.2.3.1 financial intermediation charge indirectly measured.
    D.5Current taxes on income, wealth, etc.Item 1.C.2.2.1 current taxes on income, wealth etc.
    D.61Social contributionsItem 1.C.2.2.4 social contributions
    D.62Social benefitsItem 1.C.1.5 social benefits
    D.7Other current transfersItem 1.C.2.1 workers’ remittances plus item 1.C.1.6 other current transfers of general government plus item 1.C.2.2.6 other current transfers of other sectors.
    B.12Current external balanceItem 1. current account

    Item D.8 is not included in the current account in the balance of payments, nor are the receipts of pensions from, or net contributions to, (funded) pension funds.

    Table A.II.3.Account V.III.1: Capital account (of Account V.lll: External accumulation accounts)
    SNA categoriesCorrespond toBalance of payment standard components (items), Additional details, and aggregates
    Changes in assetsTransactions in assets
    K.2Acquisitions less disposals of non-produced non-financial assetsItem 2. A.2 acquisition/disposal of non-produced non-financial assets
    B.9Net lending (+)/net borrowing (-)Item 1. current account balance plus item 2. A capital account balance
    Changes in liabilities and net worthTransactions in liabilities
    B.12Current external balanceItem 1. current account
    D.9Capital transfers receivableItem 2. A.1 capital transfers
    D.9Capital transfers payableItem 2. A.1 capital transfers
    B.10.1Changes in net worth due to saving and net capital transfersItem 1. current account balance plus item 2. A.1 net capital transfers
    Table A.II.4.Account V.III.2: Financial account (of Account V.III: External accumulation accounts)
    SNA categoriesCorrespond toBalance of payments standard components (items), additional details, and aggregates
    Changes in assetsTransactions in assets
    F.1Monetary gold and SDRsSum of items 2.B.4.1 monetary gold and 2.B.4.2 special drawing rights
    F.2Currency and depositsSum of items 2.B.3.1.3 currency and deposits (part of other investment) and 2.B.4.3.1 deposits (part of reserve position in the Fund), 2.B.4.4.1 currency and deposits (part of foreign exchange), and 2.B.4.5.1 currency and deposits (part of other reserve claims)
    F.3Securities other than sharesSum of items 2.B.2.1.2 debt securities (part of portfolio investment), 2.B.4.4.2.2 bonds and notes (part of foreign exchange), 2.B.4.4.2.3 money market instruments and financial derivatives (part of foreign exchange), 2.B.4.5.2.2 debt securities (part of other reserve claims), 2.B.1.2.3.1.1 debt securities issued by direct investors (part of direct investment in the reporting economy), and 2.B.1.1.3.1.1 debt securities issued by affiliated enterprises (part of direct investment abroad)
    F.4LoansSum of items 2.B.3.1.2 loans (part of other investment) and 2.B.4.3.2 loans (part of reserve position in the Fund)
    F.5Shares and other equitySum of items 2.B.1.1.1.1 equity capital: claims on affiliated enterprises (part of direct investment abroad), 2.B.1.1.2 reinvested earnings (part of direct investment abroad), 2.B.1.2.1.1 equity capital: claims on direct investors (part of direct investment in the reporting economy), 2.B.2.1.1 equity securities (part of portfolio investment), and 2.B.4.4.2.1 and 2.B.4.5.2.1 equities (part of reserve assets, foreign exchange, and other claims)
    F.6Insurance technical reservesSum of items 2.B.3.1.4.4.1.1 net equity of households in life insurance reserves and in pension funds and 2.B.3.1.4.1.1.1, 2.B.3.1.4.2.1.1, 2.B.3.1.4.3.1.1, and 2.B.3.1.4.4.1.2 prepayments of premiums and reserves against outstanding claims (all part of other investment)
    F.7Other accounts receivableSum of items 2.B.1.1.3.1.2 other claims on affiliated enterprises (part of direct investment abroad), 2.B.1.2.3.1.2 other claims on direct investors (part of direct investment in the reporting economy), 2.B.3.1.1 trade credits (part of other investment) and 2.B.3.1.4, other assets minus items 2.B.3.1.4.4.1.1, net equity of households in life insurance reserves and in pension funds, and 2.B.3.1.4.1.1.1, 2.B.3.1.4.2.1.1, 2.B.3.1.4.2.1.1, 2.B.3.1.4.3.1.1, and 2.B.3.1.4.4.1.2 prepayments of premiums and reserves against outstanding claims (all part of other investment)
    Table A.II.4.Account V.III.2: Financial account (of Account V.III: External accumulation accounts)
    SNA categoriesCorrespond toBalance of payments standard components (items), additional details, and aggregates
    Changes in liabilities and net worthTransactions in liabilities
    F.2Currency and depositsItem 2.B.3.2.3 currency and deposits
    F.3Securities other than sharesItem 2.B.1.1.3.2.1 debt securities issued by direct investor plus item 2.B.1.2.3.2.1 debt securities issued by affiliated enterprises plus item 2.B.2.2.2 debt securities (part of portfolio investment)
    F.4LoansItem 2.B.3.2.2 loans
    F.5Shares and other equitySum of items 2.B.1.1.1.2 equity capital:liabilities to affiliated enterprises (part of direct investment abroad), item 2.B.1.2.1.2 equity capital:liabilities to direct investors (part of direct investment in the reporting economy), item 2.B.1.2.2.2 reinvested earnings (part of direct investment in the reporting economy), and item 2.B.2.2.1 equity securities (part of portfolio investment)
    F.6Insurance technical reservesSum of items 2.B.3.2.4.4.1.1 net equity of households in life insurance reserves and in pension funds and 2.B.3.2.4.4.1.2 prepayments of premiums and reserves against outstanding claims
    F.7Other accounts payableSum of items 2.B.1.1.3.2.2 other liabilities of direct investors (part of direct investment abroad), 2.B.1.2.3.2.2 other liabilities to direct investors (part of direct investment in the reporting economy), item 2.B.3.2.1 trade credits (part of other investment), and item 2.B.3.2.4 other liabilities minus items 2.B.3.2.4.4.1.1 net equity of households in life insurance reserves and in pension funds, and 2.B.3.2.4.4.1.2 prepayments of premiums and reserves against outstanding claims (all part of other investment)
    B.9Net lending (+)/net borrowing (-)
    Table A.II.5.Account V.III.3: Other changes in asset accounts

    Account V.III.3.1: Other changes in volume of assets account

    SNA CategoriesCorrespond toInternational investment position standard components and additional details
    Changes in assetsChanges in assets
    K.7Catastrophic lossesCatastrophic losses (part of other adjustments)
    K.8Uncompensated seizuresUncompensated seizures (part of other adjustments)
    K.10Other volume changes in financial assets and liabilities, n.e.c.Other volume changes (part of other adjustments)
    K.12Changes in classifications and structureChange in classifications and structure (part of other adjustments)
    Changes in liabilities and net worthChanges in liabilities
    K.7Catastrophic lossesCatastrophic losses (part of other adjustments)
    K.12Changes in classifications and structureChanges in classifications and structure (part of other adjustments)
    B.10.2Changes in net worth due to other changes in volume of assets

    Account V.III.3.2: Revaluation Account

    SNA CategoriesCorrespond toInternational investment position standard components and additional details
    Changes in assetsChanges in assets
    K.11Nominal holding gains/losses in financial assetsSum of entries in the columns for price and exchange rate changes
    K.11.1Neutral holding gains/losses in financial assetsSum of entries in the columns for neutral holding gains/losses
    K.11.2Real holding gains/losses in financial assetsSum of entries in the columns for real holding gains/losses
    Changes in liabilities and net worthChanges in liabilities
    K.11Nominal holding gains/losses in liabilitiesSum of entries in the columns for price and exchange rate changes
    K.11.1Neutral holding gains/losses in liabilitiesSum of entries in the columns for neutral holding gains/losses in liabilities
    K.11.2Real holding gains/losses in liabilitiesSum of entries in the columns for real holding gains/losses in liabilities
    B.10.3Changes in net worth due to nominal holding gains/lossesPrice and exchange rate changes in assets less price and exchange rate changes in liabilities
    B.10.31Changes in net worth due to neutral holding gains/lossesNeutral holding gains/losses in assets less neutral holding gains/losses in liabilities
    B.10.32Changes in net worth due to real holdings gains/lossesReal holding gains/losses in assets less real holding gains/losses in liabilities
    Table A.II.6.Account V.IV: External assets and liabilities

    Account V.IV.1: Opening balance sheet

    SNA categoriesCorrespond toInternational investment position standard components and additional details
    Assets
    AFFinancial assetsSum of items A.1.1.1 claims (equity capital and reinvested earnings) on affiliated enterprises (part of direct investment abroad), A.1.2.1 claims (other capital) on affiliated enterprises (part of direct investment abroad), B.1.1.1 claims (equity capital and reinvested earnings (part of direct investment in the reporting economy), B.1.2.1 claims (other capital) on direct investors (part of direct investment in the reporting economy), A.2 portfolio investment, A.3 other investment, and A.4 reserve assets
    Liabilities
    AFLiabilitiesSum of items B.1.1.2 liabilities (equity capital and reinvested earnings) to direct investors (part of direct investment in the reporting economy), B.1.2.2 liabilities (other capital) to direct investors (part of direct investment in the reporting economy), A.1.1.2 liabilities (equity capital and reinvested earnings) to affiliated enterprises (part of direct investment abroad), A.1.2.2 liabilities (other capital) to affiliated enterprises (part of direct investment abroad), B.2 portfolio investment, and B.3 other investment
    B.90Net worth

    Account V.IV.2: Changes in balance sheet

    SNA categoriesCorrespond toInternational investment position standard components and additional details
    AFTotal changes in financial assetsSum of transactions, price and exchange rate changes, and other adjustments in respect of the corresponding international investment position items identified in Account V.IV.1 of the SNA
    AFTotal changes in liabilitiesSum of transactions, price and exchange rate changes, and other adjustments in respect of corresponding international investment position items identified in Account V.IV.1 of the SNA
    B.10Changes in net worth, totalTotal changes in item A (assets) - total changes in item B (liabilities)

    Account V.IV.3: Closing balance sheet

    SNA categoriesCorrespond toInternational investment position standard components and additional details
    AFFinancial assetsSum of end of period values of corresponding items in the international investment position and identified in Account V.IV.1 of the SNA
    AFLiabilitiesSum of end of period value of corresponding items in the international investment position and identified in Account VI.V.1 of the SNA
    Table A.II.7.Balance of payments: standard components and additional details
    CreditDebit
    1. Current account
    A. Goods and services
    a. Goods
    1. General merchandise
    2. Goods for processing
    3. Repairs on goods
    4. Goods procured in ports by carriers
    5. Non-monetary gold
    5.1 Held as a store of value
    5.2 Other
    b. Services
    1. Transportation
    1.1 Sea transport
    1.1.1 Passenger
    1.1.2 Freight
    1.1.3 Other
    1.2 Air transport
    1.2.1 Passenger
    1.2.2 Freight
    1.2.3 Other
    1.3 Other transport
    1.3.1 Passenger
    1.3.2 Freight
    1.3.3 Other
    2. Travel
    2.1 Business
    2.2 Personal1
    3. Communications services
    4. Construction services
    5. Insurance services2
    6. Financial services
    7. Computer and information services
    8. Royalties and license fees
    9. Other business services
    9.1 Merchanting and other trade-related services
    9.2 Operational leasing services
    9.3 Miscellaneous business, professional, and technical services1
    10. Personal, cultural and recreational services
    10.1 Audio-visual and related services
    10.2 Other cultural and recreational services
    11. Government services, n.i.e.
    B. Income
    1. Compensation of employees
    2. Investment income
    2.1 Direct investment
    2.1.1 Income on equity
    2.1.1.1 Dividends and distributed branch profits3
    2.1.1.2 Reinvested earnings and undistributed branch profits3
    2.1.2 Income on debt (interest)
    2.2 Portfolio investment
    2.2.1 Income on equity (dividends)
    2.2.2 Income on debt (interest)
    2.2.2.1 Bonds and notes
    2.2.2.1.1 Financial intermediation charge indirectly measured*
    2.2.2.1.2 Other interest
    2.2.2.2 Money market instruments and financial derivatives
    2.3 Other investment
    2.3.1 Financial intermediation charge indirectly measured*
    2.3.2 Other interest
    2.3.3 Imputed income to households from net equity in life insurance reserves and in pension funds*
    C. Current transfers
    1. General government
    1.1 Current taxes on income, wealth etc.*XXX
    1.2 Other taxes on production*XXX
    1.3 Other subsidies on production*XXX
    1.4 Social contributions*XXX
    1.5 Social benefits*XXX
    1.6 Other current transfers of general government*
    2. Other sectors
    2.1 Workers’ remittances
    2.2 Other transfers
    2.2.1 Current taxes on income, wealth, etc.*XXX
    2.2.2 Other taxes on production*XXX
    2.2.3 Other subsidies on production*XXX
    2.2.4 Social contributions*XXX
    2.2.5 Social benefits*XXX
    2.2.6 Other current transfers of other sectors*
    2. Capital and financial account
    A. Capital account
    1. Capital transfers
    1.1 General government
    1.1.1 Debt forgiveness
    1.1.2 Other
    1.2 Other
    1.2.1 Migrants’ transfers
    1.2.2 Debt forgiveness
    1.2.3 Other
    2. Acquisition/disposal of non-produced non financial assets
    B. Financial account
    1. Direct investment
    1.1 Abroad
    1.1.1 Equity capital
    1.1.1.1 Claims on affiliated enterprises
    1.1.1.2 Liabilities to affiliated enterprises
    1.1.2 Reinvested earnings
    1.1.3 Other capital
    1.1.3.1 Claims on affiliated enterprises
    1.1.3.1.1 Debt securities issued by affiliated enterprises*
    1.1.3.1.2 Other claims on affiliated enterprises*
    1.1.3.2 Liabilities to affiliated enterprises
    1.1.3.2.1 Debt securities issued by direct investors*
    1.1.3.2.2 Other liabilities of direct investors
    1.2 In reporting economy
    1.2.1 Equity capital
    1.2.1.1 Claims on direct investors
    1.2.1.2 Liabilities to direct investors
    1.2.2 Reinvested earnings
    1.2.3 Other capital
    1.2.3.1 Claims on direct investors
    1.2.3.1.1 Debt securities issued by direct investors*
    1.2.3.1.2 Other claims on direct investors*
    1.2.3.2 Liabilities to direct investors
    1.2.3.2.1 Debt securities issued by affiliated enterprises*
    1.2.3.2.2 Other liabilities to direct investors*
    2. Portfolio investment
    2.1 Assets
    2.1.1 Equity securities
    2.1.1.1 Monetary authorities
    2.1.1.2 General government
    2.1.1.3 Banks
    2.1.1.4 Other sectors
    2.1.2 Debt securities
    2.1.2.1 Bonds and notes
    2.1.2.1.1 Monetary authorities
    2.1.2.1.2 General government
    2.1.2.1.3 Banks
    2.1.1.1.4 Other sectors
    2.1.2.2 Money-market instruments
    2.1.2.2.1 Monetary authorities
    2.1.2.2.2 General government
    2.1.2.2.3 Banks
    2.1.2.2.4 Other sectors
    2.1.2.3 Financial derivatives
    2.1.2.3.1 Monetary authorities
    2.1.2.3.2 General government
    2.1.2.3.3 Banks
    2.1.2.3.4 Other sectors
    2.2 Liabilities
    2.2.1 Equity securities
    2.2.1.1 Banks
    2.2.1.2 Other sectors
    2.2.2 Debt securities
    2.2.2.1 Bonds and notes
    2.2.2.1.1 Monetary authorities
    2.2.2.1.2 General government
    2.2.2.1.3 Banks
    2.2.2.1.4 Other sectors
    2.2.2.2 Money-market instruments
    2.2.2.2.1 Monetary authorities
    2.2.2.2.2 General government
    2.2.2.2.3 Banks
    2.2.2.2.4 Other sectors
    2.2.2.3 Financial derivatives
    2.2.2.3.1 Banks
    2.2.2.3.2 Other sectors
    3. Other investment
    3.1 Assets
    3.1.1 Trade credits
    3.1.1.1 General government
    3.1.1.1.1 Long-term
    3.1.1.1.2 Short-term
    3.1.1.2 Other sectors
    3.1.1.2.1 Long-term
    3.1.1.2.2 Short-term
    3.1.2 Loans
    3.1.2.1 Monetary authorities
    3.1.2.1.1 Long-term
    3.1.2.1.2 Short-term
    3.1.2.2 General government
    3.1.2.2.1 Long-term
    3.1.2.2.2 Short-term
    3.1.2.3 Banks
    3.1.2.3.1 Long-term
    3.1.2.3.2 Short-term
    3.1.2.4 Other sectors
    3.1.2.4.1 Long-term
    3.1.2.4.2 Short-term
    3.1.3 Currency and deposits
    3.1.3.1 Monetary authorities
    3.1.3.2 General government
    3.1.3.3 Banks
    3.1.3.4 Other sectors
    3.1.4 Other assets
    3.1.4.1 Monetary authorities
    3.1.4.1.1 Long-term
    3.1.4.1.1.1 Prepayments of premiums and reserves against outstanding claims*
    3.1.4.1.1.2 Other assets*
    3.1.4.1.2 Short-term
    3.1.4.2 General government
    3.1.4.2.1 Long-term
    3.1.4.2.1.1 Prepayments of premiums and reserves against outstanding claims*
    3.1.4.2.1.2 Other assets*
    3.1.4.2.2 Short-term
    3.1.4.3 Banks
    3.1.4.3.1 Long-term
    3.1.4.3.1.1 Prepayments of premiums and reserves against outstanding claims*
    3.1.4.3.1.2 Other assets*
    3.1.4.3.2 Short-term
    3.1.4.4 Other sectors
    3.1.4.4.1 Long-term
    3.1.4.4.1.1 Net equity of households in life insurance reserves and in pension funds*
    3.1.4.4.1.2 Prepayments of premiums and reserves against outstanding claims*
    3.1.4.4.1.3 Other assets*
    3.1.4.4.2 Short-term
    3.2 Liabilities
    3.2.1 Trade credits
    3.2.1.1 General government
    3.2.1.1.1 Long-term
    3.2.1.1.2 Short-term
    3.2.1.2 Other sectors
    3.2.1.3.1 Long-term
    3.2.1.3.2 Short-term
    3.2.2 Loans
    3.2.2.1 Monetary authorities
    3.2.2.1.1 Use of Fund credit and loans from the Fund
    3.2.2.1.2 Other long-term
    3.2.2.1.3 Short-term
    3.2.2.2 General government
    3.2.2.2.1 Long-term
    3.2.2.2.2 Short-term
    3.2.2.3 Banks
    3.2.2.3.1 Long-term
    3.2.2.3.2 Short-term
    3.2.2.4 Other sectors
    3.2.2.4.1 Long-term
    3.2.2.4.2 Short-term
    3.2.3 Currency and deposits
    3.2.3.1 Monetary authorities
    3.2.3.2 Banks
    3.2.4 Other liabilities
    3.2.4.1 Monetary authorities
    3.2.4.1.1 Long-term
    3.2.4.1.2 Short-term
    3.2.4.2 General government
    3.2.4.2.1 Long-term
    3.2.4.2.2 Short-term
    3.2.4.3 Banks
    3.2.4.3.1 Long-term
    3.2.4.3.2 Short-term
    3.2.4.4 Other sectors
    3.2.4.4.1 Long-term
    3.2.4.4.1.1 Net equity of households in life insurance reserves and in pension funds*
    3.2.4.4.1.2 Prepayments of premiums and reserves against outstanding claims*
    3.2.4.4.1.3 Other liabilities*
    3.2.4.4.2 Short-term
    4. Reserve Assets
    4.1 Monetary gold
    4.2 Special drawing rights
    4.3 Reserve position in the Fund
    4.3.1 Deposits*
    4.3.2 Loans*
    4.4 Foreign Exchange
    4.4.1 Currency and deposits
    4.4.1.1 With monetary authorities
    4.4.1.2 With banks
    4.4.2 Securities
    4.4.2.1 Equities
    4.4.2.2 Bonds and notes
    4.4.2.3 Money-market instruments and financial derivatives
    4.5 Other claims
    4.5.1 Currency and deposits*
    4.5.2 Securities*
    4.5.2.1 Equities*
    4.5.2.2 Debt securities*

    Details needed to reconcile with the classifications used in the rest of the world account of the SNA.

    See table A.II.8 for components.

    Memorandum items: 5.1 Gross premiums 5.2 Gross claims.

    If distributed branch profits are not identified, all branch profits are considered to be distributed.

    Table A.II.8.Selected supplementary information
    1. Liabilities constituting foreign authorities’ reserves
    1.1 Bonds and other securities
    1.1.1 Monetary authorities
    1.1.2 General government
    1.1.3 Banks
    1.1.4 Other sectors
    1.2 Deposits
    1.2.1 Monetary authorities
    1.2.2 Banks
    1.3 Other liabilities
    1.3.1 Monetary authorities
    1.3.2 General government
    1.3.3 Banks
    1.3.4 Other sectors
    2. Exceptional financing transactions
    2.1 Transfers
    2.1.1 Debt forgiveness
    2.1.2 Other intergovernmental grants
    2.1.3 Grants received from Fund subsidy accounts
    2.2 Direct investment
    2.2.1 Investment associated with debt reduction
    2.2.2 Other
    2.3 Portfolio investment: borrowing by authorities or other sectors on authorities’ behalf--liabilities1
    2.4 Other investment--liabilities1
    2.4.1 Drawings on new loans by authorities or other sectors on authorities’ behalf
    2.4.2 Rescheduling of existing debt
    2.4.3 Accumulation of arrears
    2.4.3.1 Principal on short-term debt
    2.4.3.2 Principal on long-term debt
    2.4.3.3 Original interest
    2.4.3.4 Penalty interest
    2.4.4 Repayments of arrears
    2.4.4.1 Principal
    2.4.4.2 Interest
    2.4.5 Rescheduling of arrears
    2.4.5.1 Principal
    2.4.5.2 Interest
    2.4.6 Cancellation of arrears
    2.4.6.1 Principal
    2.4.6.2 Interest
    3. Other transactions
    3.1 Portfolio investment income
    3.1.1 Monetary authorities
    3.1.2 General government
    3.1.3 Banks
    3.1.4 Other sectors
    3.2 Other (than direct investment) income
    3.2.1 Monetary authorities
    3.2.2 General government
    3.2.3 Banks
    3.2.4 Other sectors
    3.3 Other investment (liabilities)
    3.3.1 Drawings on long-term trade credits
    3.3.2 Repayments of long-term trade credits
    3.3.3 Drawings on long-term loans
    3.3.4 Repayments of long-term loans
    4. Services sub-items
    4.1 Travel (personal)
    4.1.1 Health-related
    4.1.2 Education-related
    4.1.3 Other
    4.2 Miscellaneous business, professional, and technical services
    4.2.1 Legal, accounting, management consulting, and public relations
    4.2.2 Advertising, market research, and public opinion polling
    4.2.3 Research and development
    4.2.4 Architectural, engineering, and other technical services
    4.2.5 Agricultural, mining, and on-site processing
    4.2.6 Other
    1

    Specify sector involved and standard component in which the item is included.

    Table A.II.9.International investment position: standard components and additional details
    Changes in position due to:
    Position at
    beginning
    of year
    TransactionsPrice
    changes
    *a *b
    Exchange
    rate
    changes
    *a *b
    Other
    adjustments
    Position
    at end
    of year
    A. Assets
    1. Direct investment abroad1
    1.1 Equity capital and reinvested earnings
    1.1.1 Claims on affiliated enterprises
    1.1.2 Liabilities to affiliated enterprises
    1.2 Other capital
    1.2.1 Claims on affiliated enterprises
    1.2.2 Liabilities to affiliated enterprises
    2. Portfolio investment
    2.1 Equity securities
    2.1.1 Monetary authorities
    2.1.2 General government
    2.1.3 Banks
    2.1.4 Other sectors
    2.2 Debt securities
    2.2.1 Bonds and notes
    2.2.1.1 Monetary authorities
    2.2.1.2 General government
    2.2.1.3 Banks
    2.2.1.4 Other sectors
    2.2.2 Money-market instruments
    2.2.2.1 Monetary authorities
    2.2.2.2 General government
    2.2.2.3 Banks
    2.2.2.4 Other sectors
    2.2.3 Financial derivatives
    2.2.3.1 Monetary authorities
    2.2.3.2 General government
    2.2.3.3 Banks
    2.2.3.4 Other sectors
    3. Other investment
    3.1 Trade credits
    3.1.1 General government
    3.1.1.1 Long-term
    3.1.1.2 Short-term
    3.1.2 Other sectors
    3.1.2.1 Long-term
    3.1.2.2 Short-term
    3.2 Loans
    3.2.1 Monetary authorities
    3.2.1.1 Long-term
    3.2.1.2 Short-term
    3.2.2 General government
    3.2.2.1 Long-term
    3.2.2.2 Short-term
    3.2.3 Banks
    3.2.3.1 Long-term
    3.2.3.2 Short-term
    3.2.4 Other sectors
    3.2.4.1 Long-term
    3.2.4.2 Short-term
    3.3 Currency and deposits
    3.3.1 Monetary authorities
    3.3.2 General government
    3.3.3 Banks
    3.3.4 Other sectors
    3.4 Other assets
    3.4.1 Monetary authorities
    3.4.1.1 Long-term
    3.4.1.2 Short-term
    3.4.2 General government
    3.4.2.1 Long-term
    3.4.2.2 Short-term
    3.4.3 Banks
    3.4.3.1 Long-term
    3.4.3.2 Short-term
    3.4.4 Other sectors
    3.4.4.1 Long-term
    3.4.4.2 Short-term
    4. Reserve assets
    4.1 Monetary gold
    4.2 Special drawing rights
    4.3 Reserve position in the Fund
    4.4 Foreign exchange
    4.4.1 Currency and deposits
    4.4.1.1 With monetary authorities
    4.4.1.2 With banks
    4.4.2 Securities
    4.4.2.1 Equities
    4.4.2.2 Bonds and notes
    4.4.2.3 Money-market instruments and financial derivatives
    4.5 Other claims
    B. Liabilities
    1. Direct investment in reporting economy1
    1.1 Equity capital and reinvested earnings
    1.1.1 Claims on direct investors
    1.1.2 Liabilities to direct investors
    1.2 Other Capital
    1.2.1 Claims on direct investors
    1.2.2 Liabilities to direct investors
    2. Portfolio Investment
    2.1 Equity securities
    2.1.1 Banks
    2.1.2 Other sectors
    2.2 Debt securities
    2.2.1 Bonds and notes
    2.2.1.1 Monetary authorities
    2.2.1.2 General government
    2.2.1.3 Banks
    2.2.1.4 Other sectors
    2.2.2 Money-market instruments
    2.2.2.1 Monetary authorities
    2.2.2.2 General government
    2.2.2.3 Banks
    2.2.2.4 Other sectors
    2.2.3 Financial derivatives
    2.2.2.1 Monetary authorities
    2.2.2.2 General government
    2.2.2.3 Banks
    2.2.2.4 Other sectors
    3. Other investment
    3.1 Trade credits
    3.1.1 General government
    3.1.1.1 Long-term
    3.1.1.2 Short-term
    3.1.2 Other sectors
    3.1.2.1 Long-term
    3.1.2.2 Short-term
    3.2 Loans
    3.2.1 Monetary authorities
    3.2.1.1 Use of Fund credit and loans from the Fund
    3.2.1.2 Other long-term
    3.2.1.3 Short-term
    3.2.2 General government
    3.2.2.1 Long-term
    3.2.2.2 Short-term
    3.2.3 Banks
    3.2.3.1 Long-term
    3.2.3.2 Short-term
    3.2.4 Other sectors
    3.2.4.1 Long-term
    3.2.4.2 Short-term
    3.3 Currency and deposits
    3.3.1 Monetary authorities
    3.3.2 Banks
    3.4 Other liabilities
    3.4.1 Monetary authorities
    3.4.1.1 Long-term
    3.4.1.2 Short-term
    3.4.2 General government
    3.4.2.1 Long-term
    3.4.2.2 Short-term
    3.4.3 Banks
    3.4.3.1 Long-term
    3.4.3.2 Short-term
    3.4.4 Other sectors
    3.4.4.1 Long-term
    3.4.4.2 Short-term

    Details needed to reconcile with the classifications used in the rest of the world account of the SNA (a = neutral holding gains/losses; b = real holding gains/losses).

    Because direct investment is classified primarily on a directional basis—abroad under the heading “Assets” and in reporting economy under the heading “Liabilities”—claims/liabilities breakdowns are shown for the components of each, although these sub-items do not strictly conform to the overall heading of “Assets” and “Liabilities”.

    • 10. As indicated in table A.II.1, SNA coverage of exports and imports of goods and exports and imports of services is identical to coverage of corresponding items in the balance of payments with the exception of the item “financial intermediation charge indirectly measured”. In the Manual this service charge is included, under investment income, as an indistinguishable part of interest income. Also in the Manual exports and imports of services are disaggregated in considerable detail to meet analytical and policy needs for such data—particularly in the context of international negotiations in international trade in services within the framework of the General Agreement on Tariffs and Trade (GATT). The categories of services identified in the balance of payments are consistent with the Central Product Classification (CPC) except for the items travel and government transactions, n.i.e., which have no counterparts in the CPC.

    • 11. As for the external account for primary incomes and current transfers, the relevant transactions are shown under the categories 1.B (income) and 1.C (current transfers), in the balance of payments. The coverage of compensation of employees and property income in account V.II is virtually identical with item 1.B (income) of the Manual, except that the latter includes “financial intermediation charge indirectly measured” indistinguishably under investment income (interest). This treatment in the Manual is predicated on grounds of the practical difficulties inherent in deriving a multiplicity of “reference” rates of interest and appropriate asset/liability positions by sector, instrument, currency, and term structure in order to derive estimates of the imputed financial intermediary service charge.

    • 12. The major elements of the SNA capital account of the external accumulation accounts (Account V.III.1) are identical with the capital account component of the capital and financial account of the balance of payments. Although the balancing item, net lending/net borrowing, in the capital account of the SNA is not explicitly identified in the balance of payments, it nonetheless can be derived by adding the current account balance and the balance of transactions reflected in the capital account of the Manual.

    • 13. Coverage of the SNA financial account (Account V.III.2) is identical with the coverage of the financial account of the capital and financial account in the balance of payments (table A.II.4 of this annex), although the level of detail is different. In the SNA, financial assets are classified primarily by type of instrument. In the Manual, financial items are classified primarily by function (i.e., direct investment, portfolio investment, other investment—including loans—and reserve assets). In addition to identifying types of financial instruments (insurance technical reserves being an exception), the Manual includes an abbreviated sector breakdown (i.e., monetary authorities, general government, banks, and other sectors) to furnish links with other bodies of economic and financial statistics (e.g., money and banking, government finance, international banking, and external debt). Furthermore, to conform with the SNA, the Manual states that entries in the financial account of the balance of payments are recorded, in principle, on a net basis (i.e., increases less decreases in assets or liabilities). However, gross recording is provided as supplementary information (e.g., in the case of drawings and repayments on long-term loans).

    Annex III Financial intermediation services indirectly measured (FISIM)

    • 1. The System recommends a single method of estimating the value of the services provided by financial intermediaries for which no explicit charges are made, known as the financial intermediation services indirectly measured (FISIM). However two alternative methods of allocation of FISIM to users are permitted in the System; FISIM may either be allocated to the industries and sectors of the total economy or to a nominal industry and sector. The purpose of this annex is to give, by means of a worked example drawing on the same information included in the other tables in this mannual, a description of the alternative methods of allocation and the consequences for the presentation of the accounts.

    1. The value of FISIM

    • 2. Interest is payable by borrowers and by lenders to resident financial intermediaries and to the rest of the world. The first part of table A.III.1 in this annex gives illustrative data for the flows involved. The value of FISIM is calculated as the value of the property income receivable by financial intermediaries less the interest payable by them. In this example it is assumed that all property income other than interest is earned on their own funds and no interest is earned on their own funds. Thus the value of FISIM for the financial corporations is equal to the interest receivable (125) less the interest payable (77), or 48.

      Table A.III.1.Calculation arising from the allocation of FISIM to sectors
      UsesResources
      S.2S.1S.1SS.14S 13S 12S 11S.11S.123.13S.14S.15S.1S.2
      TotalRest of the worldTotal economyNPISHsHouse holdsGeneral governmentFinancial corporationsNon-financial corporationTransactions and balancing itemsNon-financial corporationsFinancial corporationsGeneral governmentHouse holdsNPISHsTotal economyRest of the worldTotal
      1251311271722066Interest paid by borrowers to financial corporations125125125
      171717Interest paid by borrowers to the rest of the world1717
      777777Interest paid by financial corporations to lenders2201233572577
      33Interest paid by the rest of the world to lenders333
      22216206717397766Actual interest payments251251233520022222
      19316132010Service charge paid by borrowers to financial corporations191919
      222Service charge paid by borrowers to the rest of the world22
      29128216208Service charge paid by lenders to financial corporations292929
      000Service charge paid by lenders to the rest of the world00
      106109661420056Interest excluding service charge paid by borrowers to financial corporations106106106
      151515Interest excluding service charge paid by borrowers to the rest of the world1515
      106106106Interest paid by financial corporations to lenders including service charge paid by lenders to financial corporations300144971006106
      3300Interest paid by the rest of the world to lenders including service charge paid by lenders to the rest of the world3303
      230132176143510656Interest paid when FISIM is allocated331061449720921230
      Attribution of expenditure on service charges
      Imports22
      Output48635757
      2727306018Intermediate consumption
      28283196Final consumption
      44Exports
      5945561912018Total486357259

    • 3. In this example it is assumed that all financial intermediation by resident units is carried out by financial corporations. Though it is theoretically possible for unincorporated enterprises to undertake financial intermediation, the volume of this output is likely to be small relative to that undertaken by financial corporations.

    • 4. If FISIM is allocated to the industries and sectors of the economy, an allocation should also be made to non-resident borrowers and lenders. These allocations together appear as exports of FISIM in the rest of the world account. Similarly, an element of FISIM should be shown as payable to non-resident financial corporations by resident borrowers and lenders. Together, these elements should appear as imports of FISIM in the rest of the world account. The value of FISIM in respect of interest payments and receipts with non-resident financial intermediaries cannot be calculated directly because information is not available on the totality of all interest transactions by non-resident intermediaries including borrowing from and lending to non-residents. If an allocation of FISIM by institutional sector is made, an estimate of imported FISIM should be made independently. If FISIM is allocated only to a nominal sector, it is not necessary to estimate imported FISIM.

    2. The allocation of FISIM to institutional sectors

    • 5. It is assumed that FISIM is purchased implicitly by borrowers paying higher interest than would be necessary if FISIM were charged for explicitly and by lenders receiving lower interest than would be necessary if FISIM were charged for explicitly. The purpose of allocation of FISIM by sectors and industries is to identify the purchase of these services explicitly and to classify them as intermediate consumption, final consumption expenditure or exports according to which sector incurs the expenditure.

    • 6. The first stage in the allocation of FISIM to sectors is to determine the amount of FISIM earned by resident intermediaries payable by borrowers and the amount payable by lenders. In this example it is assumed that borrowers must pay 19 and lenders 29 (total 48). These amounts must be allocated to all institutional units borrowing from and lending to resident financial intermediaries. In this example it is assumed that different rates of interest are applied to different classes of borrowers and lenders since, for example, transactions with the household sector are assumed to be more costly than similar transactions with general government. The value of FISIM earned in relation to interest paid to the rest of the world (20) and interest earned from the rest of the world (3) is taken to be 2 and to relate only to borrowers. The second part of table A.III.1 shows the allocation of FISIM by sectors for both borrowers and lenders.

    • 7. The third part of table A.III.1 shows interest payable and receivable after FISIM has been deducted from actual payables by borrowers and added to actual receivables by lenders. The amount of interest receivable by resident financial intermediaries is now by definition equal to the amount of interest payable by them. It is this set of interest receivables and payables that appears in the item “interest” in the allocation of primary income account.

    • 8. The value of FISIM produced by resident financial intermediaries represents output (value 48) and that coming from the rest of the world (value 2) represents imports. The total supply of FISIM is thus 50.

    • 9. The FISIM paid by non-resident borrowers (value 3) and lenders (value 1) to resident financial intermediaries represents exports (total value 4). Payments by non-financial corporations (value 18), NPISHs (value 3) and general government (value 6) represent intermediate consumption. In this example no FISIM is consumed by financial intermediaries themselves, though inter-bank lending could give rise to a non-zero allocation of FISIM to financial corporations. Further, it is assumed that no interest paid by households is in respect of their productive activities and so all their consumption of FISIM(value 19) is treated as final consumption expenditure.

    • 10. At this point the total demand for FISIM of 50 balances the supply, but the calculations are not complete. Intermediate consumption of non-financial corporations (18), financial corporations (0) and households (0) subtract from the amount of value added to be calculated. However, because general government and NPISHs are non-market producers whose output is valued at cost, their intermediate consumption increases the value of their output and also the value of their final consumption expenditures by the same amount (3 for NPISHs and 6 for general government). The fourth and last part of table A.III.1 shows the attribution of expenditures arising out of the allocation of FISIM, as follows:

      Allocation of FISIMEffects on non-market producersTotal
      Output of FISIM4848
      Output of general government66
      Output of NPISHs33
      Imports22
      Total supply50959
      Intermediate consumption
      Non-financial corporations1818
      Financial corporations00
      General government66
      Households00
      NPISHs33
      Final consumption expenditure
      General government66
      Households1919
      NPISHs33
      Exports44
      Total demand50959

      The effects on GDP are as follows:

      Output of FISIM48Final consumption expenditure
      Output of general government6General government6
      Output of NPISHs3Households19
      LessNPISHs4
      Intermediate consumptionExports4
      Non-financial corporations18less
      Financial corporations0Imports2
      General government6
      Households0
      NPISHs3
      GDP30GDP30

    • 11. Table A.III.2 shows these entries in the format of the integrated economic accounts. The entries for item D41, Interest correspond exactly to those shown in table 7.1 in chapter VII. Other entries in table 2 show only part of the matching entries in other tables in this manual and cannot be identified explicitly elsewhere.

      Table A.III.2.Effect of allocating FISIM to institutional sectors, including changes for non-market producers
      UsesResources
      S.2S.1S.15S.14S.13S.12S.11S.11S.12S.13S.14S.15S.1S.2
      AccountsTotalGoods and service (res)Rest of the worldTotal economyNPISHsHouseholdsGeneral governmentFinancial corporationsNon-financial corporationsTransactions and balancing itemsNon-financial corporationsFinancial corporationsGeneral governmentHouseholdsNPISHsTotal economyRest of the worldGoods and service (uses)TotalAccounts
      I. Production/external account22P.72Imports of services22I. Production/external account
      44P.62Exports of services44
      P.1Output486357
      2727306018P.2Intermediate consumption
      30−23048−18B.1Value added/external balance18483030II.1.1. Generation of income account
      II.1.1. Generation of income account
      303048−18B.2Operating surplus:−18483030II.1.2. Allocation of primary income account
      II.1.2. Allocation of primary income account
      230132176143510656D.41Interest331061449720921230
      2222135−2148−41B.5Balance of primary incomes:−4148−21351222211.2 Secondary distribution of income account
      11.2 Secondary distribution of income account
      2222135−214841B.6Disposable income:−4148−213512222II.4. Use of income
      II.4. Use of income
      28283196P.3Final consumption expenditure
      6−216−2748−41B.8Saving, net/external balance:

    3. The allocation of FISIM to industries

    • 12. The principles underlying the allocation of FISIM to sectors generalize directly to an allocation to industries when production accounts are compiled by industries, for example, in a supply and use table. For industries with market output or output for own use valued at market prices, the allocation of FISIM to that industry increases intermediate consumption and decreases value added. For industries with non-market output, the allocation of FISIM increases both intermediate consumption and output but leaves value added unchanged.

    4. The allocation of FISIM to nominal sectors

    • 13. Sometimes it may not be appropriate to allocate FISIM to using sectors. In such a case the whole of the value of the output of FISIM is treated as the intermediate consumption of a nominal sector with zero output and negative value added equal in size but opposite in sign from the intermediate consumption. In total, the value added generated by FISIM is exactly offset by the intermediate consumption of the nominal unit and GDP is invariant to the size of FISIM estimated. This device does, however, allow the output and value added, and thus the production and generation of income accounts, for the financial corporations sector to be correctly measured.

    • 14. In the allocation of primary income account, the entries shown for interest are those of actual interest payable and receivable. In this way the values of FISIMpreviously identified as either intermediate consumption, final consumption expenditure or exports remain included in the entries for interest. Further, in this account an item consolidating the entry of negative value added (and thus operating surplus) in the nominal sector with that of financial corporations is shown so that the excess of interest receivable over interest payable enters the balance of primary income for that sector only once. For all sectors, the changes to the balancing items of balance of primary incomes, carry through to disposable income and saving and ensure that the values derived for saving are the same for each sector whether or not FISIM is allocated by sector.

    • 15. Table A.III.3 shows the entries in the format of the integrated economic accounts when FISIM is allocated to a nominal sector. In the supply and use tables or other analyses of the production accounts by industries, a nominal industry is shown with similar treatment as the nominal sector.

      Table A.III.3.Effect of allocating FISIM to nominal sector only
      UsesResource
      S.2S.1S.15S.1S.13S.12S.11S.11S.12S.13S.14S.15S.1S.2
      AccountsTotalGoods and service (res)Rest of the WorldTotal economyNPISHsHouse holdGeneral governmentFinancial corporationsNon-financial: corporationsNominalTransactions and balancing itemsNominalNon-financial corporationsFinancial corporationsGeneral governmentHouseholdsNPISHsTotal economyRest of the worldGoods and service (uses)TotalAccounts
      I. Production accountI. Production account
      P.IOutput484848
      484848P.2Intermediate consumption4848
      48−48B.1Value added/external balance−4848II.1.1. Generation of income account
      II.1.1. Generation of income account
      48−48B.2Operating surplus−4848II.1.2. Allocation of primary income account
      II.1.2. Allocation of primary income account12216206717397766D.41Interest251251233520022222
      Adjustment for FISIM48−48
      −6−216−2748−41B.5Balance of primary incomes−4148−2716−2−6II.2. Secondary distribution of income account
      II.2. Secondary distribution of income account
      −6−216−2748−41B.6Disposable income−4148−2716−2−6II.4. Use of income account
      II.4. Use of income account
      6−6−216−2748−41B.8nSaving, net/external balance

    Annex IV The treatment of insurance, social insurance and pensions

    Introduction

    • 1. There are two types of insurance; life and non-life insurance (see figure A.IV.1). Life insurance is an activity whereby a policyholder makes regular payments to an insurer in return for which the insurer guarantees to provide the policyholder with an agreed sum, or an annuity, at a given date or earlier if the policyholder dies beforehand. The sum may be fixed or may vary to reflect the income earned from the investment of premiums during the period for which the policy operates. In such cases, the terms “with-profits” life insurance or endowment policy are generally used. Although the date and sum may be variable, a claim is always paid in respect of a life policy. Non-life insurance covers all other risks; accidents, sickness, fire, etc. A policy that provides a benefit in the case of death within a given period but in no other circumstances, usually called term insurance, is regarded as non-life insurance because as with other non-life insurance, a claim is payable only if a specified contingency occurs and not otherwise. In practice, because of the way in which insurance corporations keep their accounts, it may not always be possible to separate term insurance from other life insurance. In these circumstances, term insurance may have to be treated in the same way as life insurance for purely practical reasons.

      Figure A.IV.1.Insurance and social insurance schemes

    • 2. What the two types of insurance have in common is that they both involve spreading risk. Insurers receive many (relatively) small regular payments of premiums from policyholders and pay much larger sums to claimants when the contingencies covered by the policy occur. For non-life insurance, the risks are spread over the whole population which takes out the insurance policies. For example, an insurance corporation determines the premiums charged for vehicle insurance in a year by relating them to the amount of claims it expects to pay on vehicle insurance in the same year. Typically, the number of claimants is much smaller than the number of policyholders. For an individual policy-holder there is no relationship between the premiums paid and the claims received, even in the long run, but the insurance corporation establishes such a relationship for every class of non-life insurance on a yearly basis. For life insurance, a relationship between premiums and claims over time is important both to the policyholders and to the insurance corporation. For someone taking out a life policy, the benefits to be received are expected to be at least as great as the premiums paid up till the benefit (claim) is due and can be seen as a form of saving. The insurance corporation must combine this aspect of a single policy with the actuarial calculations about the insured population concerning life expectancy and the risks of fatal accidents when determining the relationship between the levels of premiums and benefits. Further, in the interval between the receipt of premiums and the payment of claims, the insurance corporation earns investment income on the value of the premiums received. This investment income also affects the levels of premiums and benefits set by the insurance corporations.

    • 3. Simply recording the actual premiums and claims paid in the accounts of the System would not reflect the links between premiums and claims. Instead, some actual transactions are decomposed and others are imputed in order to bring out the underlying economic processes actually taking place. This annex attempts to bring together all the entries in the accounts connected with insurance and explain their interconnection.

    • 4. Despite the similarity of the activity of life and non-life insurance, there are significant differences between them which lead to different types of entries in the accounts of the System. Further, in the System an important distinction is made between social insurance schemes and other insurance schemes which affects both life and non-life insurance. Payments to social insurance schemes are described in the System as contributions, rather than premiums, and claims including pensions paid by the schemes are described as benefits.

    • 5. A social insurance scheme is one where the policyholder is obliged or encouraged to insure against certain contingencies by the intervention of a third party. For example, government may oblige all employees to participate in a social security scheme; employers may make it a condition of employment that employees participate in an insurance scheme specified by the employer; an employer may encourage employees to join a scheme by making contributions on behalf of the employee; or a trade union may arrange advantageous insurance cover available only to the members of the trade union. Contributions to social insurance schemes are usually paid by, or on behalf of employees, though under certain conditions non-employed or self-employed persons may also be covered (see figure A.IV.2). An insurance scheme is designated as a social insurance scheme in the System:

      Figure A.IV.2.Social contributions

      • (a) If the benefits received are conditional on participation in the scheme and are as described in the next paragraphs; and

      • (b) At least one of the three conditions following is met:

        • (i) Participation in the scheme is compulsory either by law or by the conditions of employment; or

        • (ii) The scheme is operated on behalf of a group and restricted to group members; or

        • (iii) An employer makes a contribution to the scheme on behalf of an employee.

    • 6. Not all social benefits are provided by social insurance schemes but however they are provided, the characteristics of all social benefits can be described in the following general terms. Social benefits may be provided in cash or in kind. They become payable when certain events occur, or certain conditions exist, that may adversely affect the welfare of the households concerned either by imposing additional demands on their resources or reducing their incomes. There are six kinds of circumstances in which social benefits may be payable:

      • (a) The beneficiaries, or their dependants, require medical, dental or other treatment, or hospital, convalescent or long-term care, as a result of sickness, injuries, maternity, chronic invalidity, old age, etc. The social benefits are usually provided in kind in the form of treatments or care provided free or at prices which are not economically significant, or by reimbursing expenditures made by households. Social benefits in cash may also be payable to beneficiaries needing health care;

      • (b) The beneficiaries have to support dependants of various kinds—spouses, children, elderly relatives, invalids, etc. The social benefits are usually paid in cash in the form of regular dependants’ or family allowances;

      • (c) The beneficiaries suffer a reduction in income as a result of not being able to work, or to work full-time. The social benefits are usually paid in cash regularly for the duration of the condition. In some instances a lump sum may be provided additionally or instead of the regular payment. People may be prevented from working for various different reasons, in particular:

        • (i) Voluntary or compulsory retirement;

        • (ii) Involuntary unemployment, including temporary lay-offs and short-time working;

        • (iii) Sickness, accidental injury, the birth of a child, etc., that prevents a person from working, or working full time;

        • (iv) The beneficiaries suffer a reduction in income because of the death of the main income earner;

        • (v) The beneficiaries are provided with housing either free or at prices which are not economically significant or by reimbursing expenditure made by households. These are social benefits in kind;

        • (vi) The beneficiaries are provided with allowances to cover education expenses incurred on behalf of themselves or their dependants: occasionally education services may be provided in kind.

    • 7. The above are typical circumstances in which social benefits are payable. However, the list is illustrative rather than exhaustive. It is possible, for example, that under some social insurance schemes other benefits may be payable. Conversely, by no means all schemes provide benefits in all the circumstances listed above. In practice, the scope of social insurance schemes is liable to vary significantly from country to country, or from scheme to scheme within the same country.

    • 8. It is convenient in this annex to refer to insurance other than social insurance as other life or non-life insurance.

    1. The units involved

    • 9. The institutional units involved in other insurance are preeminently insurance corporations. In principle it is possible for another type of enterprise to carry out insurance as a non-principal activity, but usually the legal regulations surrounding the conduct of insurance mean that a separate set of accounts covering all aspects of the insurance activity must be kept and thus in the System a separate institutional unit, classified to the insurance corporations and pension funds sub-sector, is identifiable. Sometimes government may conduct other insurance activities, but again it is likely that a separate unit can be identified. Having noted that exceptionally other sectors may be involved, in what follows it is assumed that all other insurance is carried out by insurance corporations, either resident or non-resident.

    • 10. Social insurance schemes can be operated in a number of ways. They are usually organized either by government for the population at large (social security schemes), by employers on behalf of their employees and their dependants or by others, for example a trade union, on behalf of a specified group (both these cases are here called private social insurance schemes).

    • 11. Private social insurance schemes may be arranged with an insurance corporation as a group policy or series of policies or they may be managed by the insurance corporation in return for a fee. Alternatively, the schemes may be managed by an employer directly on his own behalf. Schemes arranged via an insurance corporation are always funded. Those managed by employers themselves may be funded or unfunded. An unfunded scheme is one where there are no identifiable reserves assigned for the payments of benefits. In such cases, benefits are paid from the receipts of contributions with any surplus or deficit going into, or being drawn from, the scheme manager’s other resources.

    • 12. Cover other than for pensions may be provided via an insurance scheme or from an unfunded scheme. If an employer manages his own scheme in respect of non-pension cover, it is treated as unfunded because no reserves have to be established as is the case for pensions. On the other hand, employers not infrequently manage their own pension schemes. These may be funded or unfunded. Funded schemes are divided into those that are autonomous, that is they constitute separate institutional units operating on their own behalf, classified in the insurance corporation and pension fund sub-sector, and those where the funds are segregated from the rest of the employers’ own funds but are not autonomous. These remain classified in the same institutional sector as the employer. In both these cases, the funds are regarded in the System as being the property of the beneficiaries of the schemes and not of the employers. Schemes where the pension provisions are not even segregated from the employers’ own funds are regarded as unfunded pension schemes. In this case there are no separately identified funds to which the beneficiaries can lay claim. Often an unfunded pension scheme will be non-contributory for the employees, but this is not invariably so.

    • 13. Social security schemes may be either funded or unfunded. Even where separate funds are identified, they remain the property of the government and not of the beneficiaries of the schemes. Schemes set up by government in respect of their employees only are not included in social security schemes but are treated in the same way as other employers’ social insurance schemes.

    2. The measurement of output of insurance corporations

    • 14. The output of insurance corporations covers the operation of other life and non-life policies as well as those life and non-life policies included in social insurance schemes operated by insurance corporations. The output represents the value of the service provided by insurance corporations in arranging payments of claims and benefits in exchange for the receipts of premiums and contributions.

    • 15. For both life and non-life insurance, the total amount of claims paid often exceeds the premiums receivable. This is possible because the contingencies covered by the policies do not occur, even for the whole population covered, in the same period as the premiums are paid. Premiums are usually paid regularly, often at the start of an insurance period, whereas claims fall due later, in the case of life insurance many years later. In the time between the payment of premium being made and the claim being receivable, the sum involved is at the disposal of the insurance corporation to invest and earn income from it. The income thus earned allows the insurance corporations to charge lower premiums than would be the case otherwise. An adequate measure of the service provided must take account of the size of this income as well as the relative size of premiums and claims.

    • 16. The income concerned comes from the investment of the technical reserves of the insurance corporations, which are assets of the policyholders, and does not include any income from the investment of the insurance corporations’ own funds. The technical reserves of an insurance corporation consist of pre-paid premiums, reserves against outstanding claims, actuarial reserves for life insurance and reserves for with-profit insurance. For non-life insurance, it is common for a premium to be payable at the start of a period of cover although the premiums are only earned on a continuous basis as the period passes. At any point before the end of the period, the policyholder will have to pay to the insurance corporation an amount relating to services to be provided in the future. This is a form of credit extended by the policyholder to the insurance corporation described as pre-paid premiums. Similarly, although claims become due for payment by the insurance corporation when the contingency specified in the policy eventuates, they may not be actually payable until some time later, often because of negotiation about the amounts due. This is another similar form of credit, described as reserves against outstanding claims. The claims involved may relate to either life or non-life policies. The other two elements of insurance technical reserves, actuarial reserves for life insurance and reserves for with-profit insurance, relate only to life insurance. They represent amounts set aside for payments of claims and benefits in future which exceed the receipts of premiums and contributions received to the current date.

    • 17. Usually the technical reserves are invested in financial assets and the income is in the form of property income (interest and dividends). Sometimes, however, they may be used to generate net operating surplus either in a separate establishment or as a secondary activity. The most common example is from real estate.

    • 18. Some of the income from the investment of the technical life reserves is explicitly attributed by the insurance corporation to the policyholders. In the System, all the income from the investment of both life and non-life technical reserves, calculated separately, is shown as property income attributed to policyholders and again as imputed life or non-life premiums or contribution supplements, as appropriate, paid by the policyholder to the insurer. The output of the insurance activity, which represents the service provided to policyholders, is calculated separately for life and non-life insurance as:

      • (a) Total actual premiums or contributions earned;

      • (b) Plus total premium or contribution supplements;

      • (c) Less claims or benefits due;

      • (d) Less increases (plus decreases) in actuarial reserves and reserves for with-profits insurance.

      Each of these items should be measured excluding holding gains and losses. If the data sources available do not exclude these holding gains and losses, appropriate adjustments must be made in calculating the value of the output.

    3. The output of pension funds

    • 19. The output of autonomous pension funds is calculated in a manner analogous to that for life insurance. The fund generates income from the investment of its reserves which is attributed to the policyholders who then pay a similar sum back to the fund as an imputed contribution supplement. The output of the fund is taken to be a service charge to the beneficiaries equal to:

      • (a) Total actual contributions earned;

      • (b) Plus total imputed contribution supplements;

      • (c) Less benefits due;

      • (d) Less increases (plus decreases) in pension reserves.

      As in the case of the output of insurance corporations, the output of pension funds must exclude holding gains or losses.

    • 20. For non-autonomous pension funds, the costs of managing the funds are included with the other elements of cost in the enterprise’s production account in the same way as the costs of an ancillary activity. There is therefore no service charge applied in this case and thus no output of the funds. The property income attributed to the beneficiaries in the System is the same as that recorded in the funds and this represents the size of the imputed contribution also.

    • 21. Obviously there is no output in respect of an unfunded pension scheme.

    4. Property income attributed to policyholders/beneficiaries

    • 22. The value of the premium or contribution supplements paid by the policyholders or beneficiaries is equal in total to the entirety of the income earned by the insurance corporations or pension funds by investing their technical or pension reserves. Although the income earned by the insurance corporation may not all have been earned as property income, when attributed to policyholders the whole amount is so regarded and appears as the item “property income attributed to policyholders”.

    • 23. For other life insurance policies and all social insurance, the beneficiaries are always households, though some may be non-resident households, i.e., in the rest of the world. For other non-life insurance, the property income must be distributed across all policyholders. In principle the distribution should be made according to the proportion of reserves attributed to the different classes of insurance and policyholders, but in practice the usual method is to distribute the property income in proportion to the actual premiums payable.

    5. Net premiums/contributions and consumption of insurance services

    • 24. The actual premiums or contributions payable and the premiums or contribution supplements are shown in the System divided between two types of transactions. The first is the consumption or export of insurance services which in total is equal to the value of the output of insurance (plus, if appropriate, the value of imported insurance services). The second is net premiums or contributions earned. Because of the way in which the value of the service output is defined, net premiums for non-life insurance are equal in total to claims. The relationship between net premiums and claims for life insurance is discussed below.

    • 25. Insurance services are consumed by those sectors (and the rest of the world) that pay actual and imputed premiums and contributions. Estimates of the value of consumption by sector are made by allocating the total value of the service in proportion to the actual premiums or contributions payable. Estimates of net premiums and contributions are then made by deducting the consumption of services from the total actual premiums and contributions payable plus the value of the imputed premiums and contribution supplements.

    6. Insurance services provided to and from the rest of the world

    • 26. Resident insurance corporations frequently provide insurance cover to households and enterprises in the rest of the world, and resident households and enterprises may purchase cover from insurance corporations in the rest of the world. In principle, the property income attributed by resident insurance corporations to policyholders should include an allocation to policyholders in the rest of the world. These non-resident policyholders would then also pay premium supplements to the resident insurance corporation. Both these flows should in principle appear in the rest of the world account, but because they are of equal size and in opposite direction, there will be no net effect on the current external balance. Similar considerations also apply to the treatment of resident enterprises and households taking out policies with non-resident insurers. They should receive imputed property income from abroad and pay premiums and supplements to abroad. Estimation of the size of these flows is particularly difficult but again these items would cancel in calculating the current external balance.

    7. Reinsurance

    • 27. Insurance corporations undertake insurance in two different ways. The first of these is direct insurance with an institutional unit outside the insurance corporation and pension fund sub-sector. The second is reinsurance which is a form of insurance that involves only institutional units classified as insurance corporations and pension funds, though one party to a transaction may be non-resident. This practice somewhat complicates the recording of transactions for the sub-sector.

    • 28. Reinsurance transactions between resident insurance corporations should be consolidated; non-life direct insurance with non-life reinsurance corporations and life direct insurance with life reinsurance corporations. In consequence, the System records transactions between policyholders and claimants on the one hand and the resident life and non-life industries on the other without regard to the division within the industry between direct insurance and reinsurance.

    • 29. When reinsurance takes place between resident direct insurers and non-resident reinsurers or between non-resident direct insurers and resident reinsurers, a complete consolidation is inappropriate. However, rather than show all flows of premiums, claims, commissions, etc., between direct insurers and reinsurers, it is simpler and more comprehensible to consider that the reinsurers deliver a service to direct insurers measured as the balance of all flows occurring between the reinsurers and direct insurers. In principle, imports of reinsurance services are estimated as the balance of all flows occuring between resident direct insurers and non-resident reinsurers. These flows include premiums ceded, investment income from technical reserves payable, commissions receivable, claims recovered and re-insurers’ share in the addition to technical reserves if relevant. Exports of reinsurance services are similarly estimated as the balance of all flows between resident reinsurers and non-resident direct insurers. Apart from these two flows, all insurance transactions in the rest of the world account refer to direct transactions only.

    • 30. Imported reinsurance services appear as intermediate consumption of resident direct insurers.

    8. The recording of insurance transactions in the System

    • 31. As explained above, the total of actual premiums (contributions) and the supplements payable by policyholders are decomposed into two elements, the part corresponding to the consumption of the service provided by the insurance corporations and net premiums. It follows that the entries for insurance in the accounts of the System consist of two types of transactions. The first set corresponds to the production and consumption of insurance services. The second set corresponds to the payments of net premiums (contributions) and claims (benefits). Except for other life insurance, an equality is established in the accounts between total net premiums and total claims for each type of insurance. These transactions are thus essentially redistributive and are mainly recorded in the secondary distribution of income account as transfers.

    • 32. Because the interaction of these two sets of transactions can seem complicated, the entries associated with the different types of insurance schemes in the System are described in turn below in ascending order of complexity. The first two cases discussed are those of the social security schemes of government and employers’ unfunded schemes where no insurance services are separately recorded. The next case considered is the most familiar case of insurance, other non-life insurance which covers accident, fire, vehicle, etc., insurance. The next case described is for other life insurance. Lastly, the two cases of social insurance under private funded schemes are described where more elaborate recording of contributions and benefits is required.

    • 33. In each description the type of transactions and the sectors involved are specified. The only exception is for imported insurance services. Not to over-complicate the exposition, the possibility of transactions with non-resident insurers is not included explicitly below. It should be remembered however, that every transaction with an insurance corporation could in principle be with a non-resident rather than resident institutional unit in which case the transaction should be recorded in the accounts for the rest of the world rather than with the insurance corporation and pension fund sub-sector.

    Social security schemes of government

    • 34. Most governments operate a social security scheme where employees, the self-employed and occasionally non-employed persons make contributions. However, pensions and other benefits are payable not only to those who have contributed but also to others, for example, surviving spouses and non-employed persons who have not contributed to the scheme. Contributions to the social security scheme may be made directly by employees, the self- and non-employed or on behalf of employees by employers. The value of these latter payments are treated in the System as part of compensation of employees, i.e., payable by employers to employees and then by employees to government in addition to the contributions they make on their own behalf as employees.

    • 35. In the System flows are recorded as follows:

      • (a) Employers’ social security contributions are shown as payable by the sector in which the employer is located and a receivable by households. The sector of the employer may be any of non-financial corporations, financial corporations, general government (as an employer), employer households, NPISHs or the rest of the world (when a resident works for a non-resident institutional unit). For resident employers the payables are shown in the generation of income account; payables by non-resident employers are shown in the external account of primary incomes and current transfers. Receivables by resident households are shown in the allocation of primary income account and by non-resident households in the external account of primary incomes and current transfers;

      • (b) In the secondary distribution of income account, employers’ social security contributions and social security contributions by employees, self- and non-employed persons are shown as payable by households and receivable by government. If the resident employee makes payment to a foreign government, the payment is recorded in the external account of primary incomes and current transfers. Further, social security benefits in cash payable to households are shown as payable by government (or the rest of the world if from a foreign government) and receivable by households. Where non-resident households are involved, the receivables are recorded in the external account of primary incomes and current transfers. Although not formally part of social insurance as defined in the System social assistance benefits in cash payable are also recorded in these accounts in a manner parallel to those of social security benefits.

      An example of these flows is shown in table A.IV.1.

    Table A.IV.1.Accounts for social security schemes
    UsesResources
    S.1S.15S.14S.13S.12S.11S.11S.12S.13S.14S.15S.1
    Corresponding entries of theCorresponding entries of the
    TotalGoods and service accountRest of the world accountTotal economyNPISHsHouseholdsGeneral governmentFinancial corporationsNon-financial corporationsTransactions and balancing itemsNon-financial corporationsFinancial corporationsGeneral governmentHouseholdsNPISHsTotal economyRest of the world accountGoods and service accountTotal
    15501558045498D.12Generation of income account
    Employers’ social security contributions
    D.12Distribution of primary income account
    Employers’ social security contributions
    1551550155
    1550155155Secondary distribution of income account
    Employers’ social security contributions
    1551550155
    7607676Employees’ social security contributions7676076
    323232D.6113Social contributions by self-employed and non-employed persons3232032
    2320232232D.621Social security benefits in cash2322320232
    5205252D.624Social assistance benefits in cash5252052

    Unfunded schemes operated by employers

    • 36. In this case, the flows are similar to those above but all flows are between households and employers. The entries to be recorded are the same whether the benefits involved are pensions or other social benefits.

    • 37. In the System an employer operating an unfunded scheme is regarded as making an imputed social contribution to the scheme on behalf of the employees. This contribution should be determined taking into account the composition of the labour force of the employer and the commitment to provide benefits in the future. In practice, however, it is usually set equal in value to the benefits payable in the period under consideration. The imputed contribution forms part of the compensation of employees and is also shown as being payable by the employees to the scheme together with any actual payments by the employees. However, it is not uncommon for unfunded schemes to be non-contributory for the employees. In these cases the payment by the employees to the scheme exactly matches the imputed contribution payable to them by the employer:

      • (a) Employers’ imputed contributions to unfunded social insurance schemes are shown as a payable by the sector in which the employer is located in the generation of income account and a receivable by households in the allocation of primary income account;

      • (b) In the secondary distribution of income account, employers’ imputed contributions and actual contributions by employees are shown as payable by households and receivable by the employer. Further, pensions and other benefits payable to households by the employer are shown as payable by the employer and receivable by households.

      An example of these flows is shown in table A.IV.2.

    Table A.IV.2.Accounts for unfunded social insurance schemes
    UsesResources
    S.1S.15S.14S.13S.12S.11S.11S 12S.13S.14S.15S.1
    Corresponding entries of theCorresponding entries of the
    TotalGoods and service accountRest of the world accountTotal economyNPISHsHouseholdsGeneral governmentfinancial corporationsNon financial corporationsTransactions and balancing itemsNon financial corporationsfinancial corporationsGeneral governmentHouseholdsNPISHsTotal economyRest of the world accountGoods and service accountTotal
    19019105112D.122Generation of income account
    Employers’ imputed social contributions
    D.122Distribution of primary income account
    Employers’ imputed social contributions
    191919
    1901919D.612Secondary distribution of income account
    Imputed social contributions
    12150119019
    19019105112D.623Unfunded employee social benefits1919019

    Other non-life insurance

    • 38. Altogether six sets of transactions need to be recorded in respect of other non-life insurance; two relating to the measurement of the production and consumption of the insurance service, three relating to redistribution and one in the financial account. The value of the output of the activity, the property income to be attributed to the policyholders and the value of the service charge are calculated specifically for other non-life insurance in the manner described above.

    • 39. The production and consumption transactions are as follows:

      • (a) Since all such activity by resident institutional units is undertaken by insurance corporations, the output is recorded in the production account of the insurance corporations and pension funds sub-sector;

      • (b) The service may be consumed by any of the sectors of the economy or by the rest of the world; the value of the service is payable to the insurance corporations and pension fund sub-sector. Payments by non-financial corporations, financial corporations, general government or non-profit institutions constitute intermediate consumption, recorded in their production account. Insurance clearly associated with the productive activity of an unincorporated enterprise is also recorded as intermediate consumption in the production account of households. Other insurance payments by households are part of final consumption expenditure, recorded in the use of income account. Payments by the rest of the world are recorded as exports in the external account of goods and services.

    • 40. The redistributive transactions cover property income attributed to policyholders in respect of other non-life insurance, net non-life insurance premiums, and insurance claims:

      • (a) Property income attributed to policyholders in respect of other non-life insurance is recorded as payable by insurance corporations and pensions funds. It is recorded as receivable by all sectors and the rest of the world. Both payable and receivables are recorded in the allocation of primary income account or in the external account of primary incomes and current transfers;

      • (b) Net non-life insurance premiums are calculated as premiums earned plus premium supplements (equal to the property income attributed to policyholders) less the value of the services consumed. These net premiums are payable by all sectors of the economy or the rest of the world and receivable by the insurance corporations and pension fund sub-sector;

      • (c) Insurance claims due are payable by the insurance corporations and pension fund sub-sector and receivable by all sectors of the economy and the rest of the world. Both net premiums and claims are recorded in the secondary distribution of income account or in the external account of primary incomes and current transfers.

    • 41. Net non-life insurance premiums should be recorded on the basis of the amounts due to procure cover in the period of account, not the amounts due to be paid in the period. Insurance claims should be recorded on the basis of the amounts due at the date of the event concerned. An entry in the financial account records any difference between premiums payable and premiums earned and claims due and claims payable:

      • (a) By convention, prepayment of premiums and reserves against outstanding claims is shown as a change in liabilities of the insurance corporation and pension fund sub-sector (with a negative sign if necessary) and a change in assets of all sectors and the rest of the world.

      An example of these flows is shown in table A.IV.3.

    Table A.IV.3.Accounts for individiual non-life insurance
    UsesResources
    S.1S.15S.14S.13S.12S.11S.11S.12S.13S.14S.15S.1
    Corresponding entries of theCorresponding entries of the
    TotalGoods and service accountRest of the world accountTotal economyNPISHsHouseholdsGeneral governmentfinancial corporationsNon financial corporationsTransactions and balancing itemsNon financial corporationsfinancial corporationsGeneral governmentHouseholdsNPISHsTotal economyRest of the world accountGoods and service accountTotal
    External account
    00P.6Exports of goods and services00
    00P.7Imports of goods and services00
    Production account
    P.1Output666
    4403001P.2Intermediate consumption
    Distribution of primary income account
    D.44Property income attributable to insurance
    666policyholders50010606
    Secondary distribution of income account
    45243031408D.71Net non-life insurance premiums454545
    4504545D.72Non-life insurance claims60135042345
    Use of disposable income account
    222P. 3Final consumption expenditure
    Financial account
    F.62Prepayment of premiums and reserves
    20202000against outstanding claims222

    Other life insurance

    • 42. Other life insurance transactions take place only between insurance corporations and households, resident and non-resident. The production of the insurance service is matched by the value of the services consumed by households as part of final consumption expenditure and exports. The property income attributed to insurance policyholders is treated as premium supplements, but premiums and claims are not shown separately in the case of other life insurance. Rather they constitute components of a net transaction recorded in the financial account, the financial asset involved being the net equity of households in life insurance reserves.

    • 43. Four transactions are recorded in the account; one each relating to production and consumption of the insurance service, one showing the attribution of property income to the propertyholders and one showing the change in the net equity of households in life insurance reserves:

      • (a) The output of the life insurance activity is recorded in the production account for the insurance corporation and pension fund sub-sector;

      • (b) The value of the services consumed is recorded as final consumption expenditure payable by households in the use of disposable income account or as payable by the rest of the world (exports to non-resident households);

      • (c) Property income attributed to insurance policyholders in respect of other life insurance is recorded in the allocation of primary income account. It is recorded as payable by insurance corporations and pensions funds and receivable by resident households or non-resident households in the rest of the world;

      • (d) In the financial account the item net equity of households in life insurance reserves is shown as a change in assets of households and the rest of the world and a change in liabilities of insurance corporations. It is equal to actual premiums plus premium supplements (equal to the property income attributed to policy-holders) less the value of the services consumed and less claims due.

      An example of these flows is shown in table A.IV.4.

      Table A.IV.4.Accounts for individual life insurance
      UsesResources
      S.1S.15S.14S.13S.12S.11S.11S.12S.13S.14S.15S.1
      Corresponding entries of theCorresponding entries of the
      TotalGoods and service accountRest of the world accountTotal economyNPISHsHouseholdsGeneral governmentFinancial corporationsNon financial corporationsTransactions and balancing itemsNon financial corporationsFinancial corporationsGeneral governmentHouseholdsNPISHsTotal economyRest of the world accountGoods and service accountTotal
      External account
      00P.6Exports of goods and services0
      00P.7Imports of goods and services00
      Production account
      P.1Output444
      Distribution of primary income account
      D.44Property income attributable to insurance
      777D.44policy holders7707
      Use of disposable income account
      4044P.3Final consumption expenditure
      Financial account
      F.611Net equity of households in life insurance
      2202222reserves2222022

    Private funded social insurance other than pensions

    • 44. As explained above, all privately funded social insurance covering benefits other than pensions is carried out by insurance corporations. The output of this activity is measured in the same way as the output of other non-life insurance but the matching consumption of the services is payable only by the households of the beneficiaries. These will be resident households except where a resident producer employs non-residents. Similarly, the property income attributed to the beneficiaries of the social insurance schemes can only be receivable by the same households.

    • 45. All contributions to the schemes are payable by the employee. The contributions include that part paid by the employer as part of compensation of employees in the generation of income account as payable by employers to employees. They also include contributions paid directly by the employee funded from wages and salaries. Further, the employee receives property income attributed to policyholders in respect of both these contributions and this is treated, in total, as contribution supplements. The two items of contributions appearing in the secondary distribution of income account are, first, the employers’ actual social contributions which is exactly equal in value to the amount receivable by households from the employer in the generation of income account. The second item, called employees’ social contributions includes the direct payment by the employees plus the contribution supplements less the service charge payable to the social insurance schemes.

    • 46. Seven types of transactions must be recorded, one each relating to production and consumption of the insurance service, three relating to contributions and benefits, one to the property income attributable to policyholders and one to an adjustment in the financial account:

      • (a) Since all such activity by resident units is undertaken by insurance corporations, the output is recorded in the production account of the insurance corporations and pension funds sub-sector;

      • (b) Employers’ actual social contributions to privately funded social insurance schemes are shown as a payable by the sector in which the employer is located in the generation of income account and a receivable by households in the allocation of primary income account;

      • (c) Property income attributed to policyholders (beneficiaries) in respect of these schemes is payable by insurance corporations and pensions funds and receivable by employee households. Both payable and receivables amounts are recorded in the allocation of primary income account;

      • (d) In the secondary distribution of income account, employers’ actual social contributions and employees’ social contributions by employees, including contribution supplements but excluding the value of the service consumed, are shown as payable by households and receivable by the insurance corporations and pension funds sub-sector;

      • (e) Private funded social benefits other than pensions are also shown in the secondary distribution of income account as payable by the insurance corporations and pension funds sub-sector and receivable by households;

      • (f) The value of the service is payable by households as part of final consumption expenditure, and is recorded in the use of income account, except for non-resident employee households where it is payable by the rest of the world;

      • (g) The entry in the financial account, prepayment of premiums and reserves against outstanding claims, records any difference between contributions payable and contributions earned and benefits due and benefits payable. By convention this item is shown as a change in liabilities of the insurance corporation and pension fund sub-sector (with a negative sign if necessary) and a change in assets of employee households.

        An example of these flows is shown in table A.IV.5.

    Table A.IV.5.Accounts for private funded social insurance other than pensions
    UsesResources
    S.1S 15S.14S.13S.12S.11S.11S.12S.13S.14S 15S.1
    Corresponding entries of theCorresponding entries of the
    TotalGoods and service accountRest of the world accountTotal economyNPISHsHouseholdsGeneral governmentFinancial corporationNon-financial corporationTransactions and balancing itemsNon-financial corporationsFinancial corporationsGeneral governmentHouseholdsNPISHsTotal economyRest of the world accountGoods and service accountTotal
    External account
    00P.6Exports of goods and services00
    00P.7Imports of goods and services00
    Production account
    P.1Output1l1
    Generation of income account
    50510103Employers’ actual social contributions to private funded schemes
    Distribution of primary income account
    Employers’ actual social contributions to private funded schemes5505
    555D.44Property income attributable to insurance policyholders5505
    Secondary distribution of income account
    5055Employers’ actual social contributions to private funded schemes (net) other than for pensions555
    8088Employees’ net social contributions to private funded schemes other than for pensions888
    131313Private funded social benefits other than pensions1313013
    Use of disposable income account
    1011P.3Final consumption expenditure
    Financial account
    111F.62Prepayment of premiums and reserves against outstanding claims111

    Privately funded pensions

    • 47. As compared with other privately funded benefits, the recording of transactions concerned with the provision of privately funded pensions contains two further complexities. The first of these concerns the treatment of non-autonomous pension funds. Although as explained above no separate output is recorded for these funds, net contributions are payable to these funds and pensions are payable by the funds. Since an employer in any sector may operate a non-autonomous pension fund, this means that any sector may in principle be the recipient of net contributions and the payer of pensions. In practice, however, since most privately funded pension schemes are operated by insurance corporations or autonomous pension funds, much the largest entries will still refer to the insurance corporation and pension fund sub-sector.

    • 48. The second feature that affects pensions but not other privately funded social benefits is that only pension provision leads to the build-up of reserves that represent equity belonging to households. These reserves increase due to the payment of actual contributions and contribution supplements by households (excluding the cost of the services payable) and are decreased by the payment of pensions to households. Both these transactions are recorded in the secondary distribution of income account so any net addition to the reserves by households appear in the disposable income of the sectors operating the pension funds. If no adjustment were made, this element of disposable income would also enter the saving of those sectors. However, in keeping with the treatment of other life insurance, this element of saving is considered a part of household saving and the build-up of the reserves a change in assets of households in the financial account, specifically the acquisition of the financial asset net equity of households in pension fund reserves. To ensure the transactions are recorded in this way, an adjustment item is inserted in the use of disposable income (and use of adjusted disposable income account) showing the reattribution of this part of saving from insurance corporations and pension funds to households. Since again, non-autonomous pension funds are involved, all sectors may be affected by this adjustment.

    • 49. Eight types of transactions must be recorded, one each relating to production and consumption of the insurance service, three relating to contributions and benefits, one to the property income attributable to policyholders, one to the adjustment item in the use of income accounts and one to the adjustment in the financial account:

      • (a) As explained above, output by resident units is recorded only in the production account of the insurance corporations and pension funds sub-sector;

      • (b) Employers’ actual social contributions to privately funded social insurance schemes are shown as a payable by the sector in which the employer is located in the generation of income account and a receivable by households in the allocation of primary income account;

      • (c) Property income attributed to policyholders in respect of autonomous pension funds is payable by insurance corporations and pension funds and receivable by employee households. The property income attributable to policyholders payable in respect of non-autonomous pension funds is payable by the employers operating the schemes and receivable by employee households. Both payables and receivables are recorded in the allocation of primary income account;

      • (d) In the secondary distribution of income account, employers’ actual social contributions and employees’ social contributions are shown as payable by house-holds and receivable either by the insurance corporations and pension funds sub-sector or by sectors operating a non-autonomous pension fund. The employers’ actual contributions is exactly equal in value to the amount receivable by households from the employer in the generation of income account. The employees’ social contributions include the direct payment by the employees plus the contribution supplements less any service charge payable to the social insurance schemes. For contributions to insurance corporations and to autonomous pension funds there is a cost of the associated service to exclude from the amount recorded in this account. There is no associated service in respect of contributions to non-autonomous funds;

      • (e) Privately funded pensions are also shown in the secondary distribution of income account as private funded social benefits payable by the sector operating the pension fund and receivable by households;

      • (f) The value of the insurance service is payable by households as part of final consumption expenditure, recorded in the use of income account, except for non-resident employee households where the payable is by the rest of the world and is recorded as an export of services;

      • (g) The adjustment for the change in net equity of households in pension funds is shown in the use of disposable income account (or use of adjusted disposable income account) as receivable by households and payable by any sector operating a pension fund. The entry is exactly equal to net contributions (as recorded in the secondary distribution of income account but only in respect of pensions) less pensions payable;

      • (h) An exactly matching item, of the opposite sign, is shown in the financial account, as net equity of households in pension fund reserves. It appears as a change in assets of households and the rest of the world and a change in liabilities of the sectors operating pension funds.

      An example of these flows is shown in table A.IV.6.

    Table A.IV.6.Accounts for private funded pensions
    UsesResources
    S.1S.15S.14S.13S.12S.11S.11S.12S.13S.14S.15S.1
    Corresponding entries of theCorresponding entries of the
    TotalGoods and service accountRest of the world accountTotal economyNPISHsHouseholdsGeneral governmentfinancial corporationsNon financial corporationsTransactions and balancing itemsNon financial corporationsfinancial corporationsGeneral governmentHouseholdsNPISHsTotal economyRest of the world accountGoods and service accountTotal
    External account
    00P.6Exports of goods and services00
    00P.7Imports of goods and services00
    Production account
    P.1Output222
    Generation of income account
    14014102011Employers’ actual social contributions to private funded schemes
    Distribution of primary income account
    Employers’ actual social contributions to private funded schemes1414014
    7077D.44Property income attributable to insurance policyholders7707
    Secondary distribution of income account
    1401414Employers’ actual social contributions to private funded schemes (net) in respect of pensions11300014014
    1301313Employees’ net social contributions in respect of pensions11200013013
    16016000151Private funded pensions1616016
    Use of disposable income account0
    222P.3Final consumption expenditure
    1101100110D.8Adjustment for the change in net equity of households in pension funds1111011
    Financial account
    111111F.612Net equity of households in pension fund reserves0110011011

    Annex V Classifications and accounts

    Part I. Classifications

    A. Classification of institutional sectors (S)

    S.1 Total economy

    S.11 Non-financial corporations

    • S.11001 Public non-financial corporations

      S.11002 National private non-financial corporations

      S.11003 Foreign controlled non-financial corporations

    S.12 Financial corporations

    S.121 Central bank

    S. 122 Other depository corporations

    • S.1221 Deposit money corporations

      S.12211 Public

      S.12212 National private

      S.12213 Foreign controlled

      S.1222 Other depository corporations, except deposit money corporations

      S.12221 Public

      S.12222 National private

      S.12223 Foreign controlled

    S.123 Other financial intermediaries, except insurance corporations and pension funds

    • S.12301 Public

      S.12302 National private

      S.12303 Foreign controlled

    S.124 Financial auxiliaries

    • S.12401 Public

      S.12402 National private

      S.12403 Foreign controlled

    S. 125 Insurance corporations and pension funds

    • S.12501 Public

      S.12502 National private

      S.12503 Foreign controlled

    S.13 General government

    S.131 General government classification alternatives (1)

    • S.1311 Central government

      S.1312 State government

      S.1313 Local government

      S.1314 Social security funds

      S.13141 Central government social security funds

      S.13142 State government social security funds

      S.13143 Local government social security funds

    S.132 General government classification alternatives (2)

    • S.1321 Central governmenta

      S.13211 Central government

      S.13212 Central government social security funds

      S.1322 State governmenta

      S.13221 State government

      S.13222 State government social security funds

      S.1323 Local governmenta

      S.13231 Local government

      S.13232 Local government social security funds

    S.14 Households

    S.141 Employers

    S.142 Own account workers

    S.143 Employees

    S. 144 Recipients of property and transfer income

    • S.1441 Recipients of property income

      S.1442 Recipients of pensions

      S.1443 Recipients of other transfers

    S.15 Non-profit institutions serving households

    S.2 Rest of the world

    B. Classification of transactions and other flows

    1. Transactions in goods and services (products) (P)

    P.1 Output

    P.11 Market output

    P.12 Output for own final use

    P.13 Other non-market output

    P.2 Intermediate consumption

    P.3 Final consumption expenditure

    P.31 Individual consumption expenditure

    P.32 Collective consumption expenditure

    P.4 Actual final consumption

    P.41 Actual individual consumption

    P.42 Actual collective consumption

    P.5 Gross capital formation

    P.51 Gross fixed capital formation

    • P.511 Acquisitions less disposals of tangible fixed assets

      P.5111 Acquisitions of new tangible fixed assets

      P.5112 Acquisitions of existing tangible fixed assets

      P.5113 Disposals of existing tangible fixed assets

      P.512 Acquisitions less disposals of intangible fixed assets

      P.5121 Acquisitions of new intangible fixed assets

      P.5122 Acquisitions of existing intangible fixed assets

      P.5123 Disposals of existing intangible fixed assets

      P.513 Addition to the value of non-produced non-financial assets

      P.5131 Major improvements to non-produced non-financial assets

      P.5132 Costs of ownership transfer on non-produced non-financial assets

    P.52 Changes in inventories

    P.53 Acquisitions less disposals of valuables

    P.6 Exports of goods and services

    P.61 Exports of goods

    P.62 Exports of services

    P.7 Imports of goods and services

    P.71 Imports of goods

    P.72 Imports of services

    2. Distributive transactions (D)

    D.1 Compensation of employees

    D.11 Wages and salaries

    D.12 Employers’ social contributions

    • D.121 Employers’ actual social contributions

      D.122 Employers’ imputed social contributions

    D.2 Taxes on production and imports

    D.21 Taxes on products

    • D.211 Value added type taxes (VAT)

      D.212 Taxes and duties on imports excluding VAT

      D.2121 Import duties

      D.2122 Taxes on imports excluding VAT and duties

      D.213 Export taxes

      D.214 Taxes on products, except VAT, import and export taxes

    D.29 Other taxes on production

    D.3 Subsidies

    D.31 Subsidies on products

    • D.311 Import subsidies

      D.312 Export subsidies

      D.319 Other subsidies on products

    D.39 Other subsidies on production

    D.4 Property income

    D.41 Interest

    D.42 Distributed income of corporations

    • D.421 Dividends

      D.422 Withdrawals from income of quasi-corporations

    D.43 Reinvested earnings on direct foreign investment

    D.44 Property income attributed to insurance policy holders

    D.45 Rent

    D.5 Current taxes on income, wealth, etc.

    D.51 Taxes on income

    D.59 Other current taxes

    D.6 Social contributions and benefits

    D.61 Social contributions

    • D.611 Actual social contributions

      D.6111 Employers’ actual social contributions

      D.61111 Compulsory employers’ actual social contributions

      D.61112 Voluntary employers’ actual social contributions

      D.6112 Employees’ social contributions

      D.61121 Compulsory employees’ social contributions

      D.61122 Voluntary employees’ social contributions Classifications and accounts

      D.6113 Social contributions by self- and nonemployed persons

      D.61131 Compulsory social contributions by self- and non-employed persons

      D.61132 Voluntary social contributions by self- and non-employed persons

      D.612 Imputed social contributions

    D.62 Social benefits other than social transfers in kind

    • D.621 Social security benefits in cash

      D.622 Private funded social benefits

      D.623 Unfunded employee social benefits

      D.624 Social assistance benefits in cash

    D.63 Social transfers in kind

    • D.631 Social benefits in kind

      D.6311 Social security benefits, reimbursements

      D.6312 Other social security benefits in kind

      D.6313 Social assistance benefits in kind

      D.632 Transfers of individual non-market goods and services

    D.7 Other current transfers

    D.71 Net non-life insurance premiums

    D.72 Non-life insurance claims

    D.73 Current transfers within general government

    D.74 Current international cooperation

    D.75 Miscellaneous current transfers

    D.8 Adjustment for the change in net equity of households in pension funds

    D.9 Capital transfers

    D.91 Capital taxes

    D.92 Investment grants

    D.99 Other capital transfers

    3. Transactions in financial instruments (F) (net acquisition of financial assets/net incurrence of liabilities)

    F.1 Monetary gold and SDRs

    F.2 Currency and depositsbc

    F.21 Currency

    F.22 Transferable deposits

    F.29 Other deposits

    F.3 Securities other than sharesc

    F.31 Short-term

    F.32 Long-term

    F.4 Loanscd

    F.41 Short-term

    F.42 Long-term

    F.5 Shares and other equityd

    F.6 Insurance technical reserves

    F.61 Net equity of households in life insurance reserves and in pension funds

    • F.611 Net equity of households in life insurance reserves

      F.612 Net equity of households in pension funds

    F.62 Prepayment of premiums and reserves against outstanding claims

    F.7 Other accounts receivable/payabled

    F.71 Trade credits and advances

    F.79 Other accounts receivable/payable, except trade credits and advances

    4. Other accumulation entries (K)

    K.1 Consumption of fixed capital

    K.2 Acquisitions less disposals of non-produced non-financial assets

    K.21 Acquisitions less disposals of land and other tangible non-produced assets

    • K.211 Acquisitions of land and other tangible non-produced assets

    • K.212 Disposals of land and other tangible non-produced assets

    K.22 Acquisitions less disposals of intangible non-produced assets

    • K.221 Acquisitions of intangible non-produced assets

      K.222 Disposals of intangible non-produced assets

    K.3 Economic appearance of non-produced assets

    K.4 Economic appearance of produced assets

    K.5 Natural growth of non-cultivated biological resources

    K.6 Economic disappearance of non-produced assets

    K.61 Depletion of natural assets

    K.62 Other economic disappearance of non-produced assets

    K.7 Catastrophic losses

    K.8 Uncompensated seizures

    K.9 Other volume changes in non-financial assets n.e.c.

    K.10 Other volume changes in financial assets and liabilities n.e.c.

    K.11 Nominal holding gains/losses

    K.11.1 Neutral holding gains/losses

    K.11.2 Real holding gains/losses

    K.12 Changes in classifications and structure

    K.12.1 Changes in sector classification and structure

    K.12.2 Changes in classification of assets and liabilities

    • K.12.21 Monetization/demonetization of gold

      K.12.22 Changes in classification of assets or liabilities other than monetization/demonetization of gold

    C. Classification of balancing itemse (B)

    B.1 Value added/B.1* Domestic product

    B.2 Operating surplus

    B.3 Mixed income

    B.4 Entrepreneurial income

    B.5 Balance of primary incomes/ B.5* National income

    B.6 Disposable income

    B.7 Adjusted disposable income

    B.8 Saving

    B.9 Net lending/net borrowing

    B.10 Changes in networth

    B.10.1 Changes in net worth due to saving and capital transfers f,g

    B. 10.2 Changes in net worth due to other changes in volume of assets

    B.10.3 Changes in net worth due to nominal holding gains/losses

    • B.10.31 Changes in net worth due to neutral holding gains/losses

      B.10.32 Changes in net worth due to real holding gains/losses

    B.11 External balance of goods and services

    B.12 Current external balance

    B.90 Networth

    D. Classification of assets

    1. Non-financial assets (AN)

    AN.1 Produced assets

    AN.11 Fixed assetsh

    • AN.111 Tangible fixed assets

      AN.1111 Dwellings

      AN.1112 Other buildings and structures

      AN.11121 Non-residential buildings

      AN.11122 Other structures

      AN.1113 Machinery and equipment

      AN.11131 Transport equipment

      AN.11132 Other machinery and equipment

      AN.1114 Cultivated assets

      AN.11141 Livestock for breeding, dairy, draught, etc.

      AN.11142 Vineyards, orchards and other plantations of trees yielding repeat products.

      AN.112 Intangible fixed assets

      AN.1121 Mineral exploration

      AN.1122 Computer software

      AN.1123 Entertainment, literary or artistic originals

      AN.1129 Other intangible fixed assets

    AN.12 Inventories

    • AN.121 Materials and supplies

      AN.122 Work in progress

      AN.1221 Work in progress on cultivated assets

      AN.1222 Other work in progress

      AN.123 Finished goods

      AN.124 Goods for resale

    AN.13 Valuables

    • AN.131 Precious metals and stones

      AN.132 Antiques and other art objects

      AN.139 Other valuables

    AN.2 Non-produced assets

    AN.21 Tangible non-produced assets

    • AN.211 Land

      AN.2111 Land underlying buildings and structures

      AN.2112 Land under cultivation

      AN.2113 Recreational land and associated surface water

      AN.2119 Other land and associated surface water

      AN.212 Subsoil assets

      AN.2121 Coal, oil and natural gas reserves

      AN.2122 Metallic mineral reserves

      AN.2123 Non-metallic mineral reserves

      AN.213 Non-cultivated biological resources

      AN.214 Water resources

    AN.22 Intangible non-produced assets

    • AN.221 Patented entities

      AN.222 Leases and other transferable contracts

      AN.223 Purchased goodwill

      AN.229 Other intangible non-produced assets

    2. Financial assets/liabilities (AF)

    AF.1 Monetary gold and SDRs

    AF.2 Currency and depositsij

    AF.21 Currency

    AF.22 Transferable deposits

    AF.29 Other deposits

    AF.3 Securities other than sharesj

    AF.31 Short-term

    AF.32 Long-term

    AF.4 Loansjk

    AF.41 Short-term

    AF.42 Long-term

    AF.5 Shares and other equityk

    AF.6 Insurance technical reserves

    AF.61 Net equity of households on life insurance reserves and on pension funds

    AF.62 Prepayment of premiums and reserves against outstanding claims

    AF.7 Other accounts receivable/payable k

    AF.71 Trade credits and advances

    AF.79 Other accounts receivable/payable, except trade credits and advances

    E. Elements of complementary classifications of transactions and other flows

    These elements of complementary classifications are intended to meet various requirements:

    • (a) They show separately the estimated components of certain flows, when these components are not already isolated in the classifications of the System. The latter show separately, for instance, the reinvested earnings on direct foreign investment or the imputed social contributions. However, they do not isolate many flows whose value is not directly observed, such as the services of owneroccupied dwellings or barter transactions. These flows are shown separately in the elements of complementary classifications;

    • (b) They separately show, more generally, the various components of certain transactions, in terms of both monetary and non-monetary components. For example, under “Market output, except in trade”, sales, barter transactions, payments in kind, etc., are shown separately. Or under “Household final consumption expenditure”, purchases, bartered consumption goods and services, own final consumption and various components of it, certain transfers in kind, etc., are distinguished;

    • (c) They sometimes simply provide additional details to the classifications of the System. In certain cases, this detailing is made systematically, i.e., a given item is broken down exhaustively, among more detailed pieces. In other cases, only certain especially important details are suggested. In such cases, these details are introduced by saying “of which”;

    • (d) They also include a number of transactions, adjustments and other elements which are used in the supply and use tables, such as trade and transport margins or direct purchases abroad by residents. In a sense, these items are directly part of the classifications of the System. However, they play an auxiliary role;

    • (e) A special set of complements shows the additional transactions that are needed in relation with the treatment of multiple exchange rates.

    In a number of cases, showing separately various monetary and non-monetary components of certain transactions leads to showing the definition itself or one definition of these flows. Examples are provided by “Market output in trade” or “Changes in inventories of materials and supplies”.

    These elements of complementary classifications are provided to help countries if they want to show certain details, either directly in their accounts or in complementary tables. In a number of cases there is room for variants in practice. As their name indicates, these elements do not intend to be exhaustive. Other complements may be introduced if found meaningful, useful and feasible.

    1. Transactions and other flows, other elements on goods and services

    Output

    Principal output

    Secondary output

    Product

    Principal product

    Secondary product

    Market output, except in trade

    Sales, except sales of goods purchased for resale

    Barter transactions

    Payments in kind of which: Compensation of employees in kind

    Deliveries between establishments belonging to the same

    market enterprise to be used as intermediate consumption

    Changes in inventories of finished goods and work-in-progress intended for one of the above uses

    Output of insurance services

    • output of non-life insurance services

      output of life insurance services

    Output of pension funds

    Output of financial intermediation services

    indirectly measured

    Market output in trade

    Sales of goods purchased for resale

    plus Other uses of goods purchased for resale of which: Compensation of employees in kind

    minus Purchases of goods for resale

    plus Changes in inventories of goods for resale

    Non-market output

    Own final consumption of which: services of owner-occupied dwellings

    Own gross fixed capital formation

    Goods and service supplied free, or at not economically

    significant prices, to other institutional units

    Goods and services supplied by one non-market establishment to another

    Changes in inventories of finished goods and work-in-progress intended for one of the above uses

    Intermediate consumption

    Purchases of materials and supplies

    plus Other acquisitions of materials and supplies of which:

    • Deliveries between establishments belonging to the same market enterprise to be used as intermediate consumption

    minus Changes in inventories of materials and supplies

    Household final consumption expenditure

    Purchases of consumption goods and services

    minus Sales of existing consumption goods and services

    plus Bartered consumption goods and services (net)

    plus Own final consumption

    • in subsistence economy

      services of owner-occupied dwellings

      domestic services produced by employing paid

      domestic servants

      other

    plus Compensation of employees in kind

    plus Transfers in kind (other than from government or non-profit institutions)

    plus Insurance services

    plus Pension funds services

    plus Financial intermediation services indirectly measured

    Household actual final consumption

    Household final consumption expenditure

    Social transfers in kind

    Gross fixed capital formation

    Acquisition less disposals of tangible fixed assets

    • Acquisitions of new tangible fixed assets

      • Purchases

        Barter transactions

        Own gross fixed capital formation

        Capital transfers in kind

      Acquisitions of existing tangible fixed assets

      • Purchases

        Barter transactions

        Capital transfers in kind

      Disposals of existing tangible fixed assets

      • Sales

        Barter transactions

        Capital transfers in kind

    Acquisitions less disposals of intangible fixed assets

    • Acquisitions of new intangible fixed assets

      • Purchases

        Barter transactions

        Own gross fixed capital formation

        Capital transfers in kind

      Acquisitions of existing intangible fixed assets

      • Purchases

        Barter transactions

        Capital transfers in kind

      Disposals of existing intangible fixed assets

      • Sales

        Barter transactions

        Capital transfers in kind

    Addition to the value of non-produced non-financial assets

    • Major improvements to non-produced non-financial assets

      • Purchases

        Barter transactions

        Own gross fixed capital formation

        Capital transfers in kind

      Cost of ownership transfer on non-produced non-financial assets

    Own gross fixed capital formation

    New tangible fixed assets

    New intangible fixed assets

    Major improvements to non-produced non-financial assets

    Gross fixed capital formation

    Consumption of fixed capital

    Net fixed capital formation

    Net addition to the stock of fixed assets

    Net fixed capital formation

    Other changes in volume of fixed assets Catastrophic losses

    • Uncompensated seizures

      Other volume changes in non-financial assets n.e.c.

    Changes in inventories

    Additions to inventories

    minus Withdrawals from inventories

    minus Current losses in inventories

    Changes in inventories of finished goods and work-in-progress

    Additions to inventories of finished goods and work-inprogress

    minus Withdrawals from inventories of finished goods and work-in-progress

    minus Current losses in inventories of finished goods and work-in-progress

    Changes in inventories of goods for resale

    Additions to inventories of goods for resale

    minus Withdrawals from inventories of goods for resale

    minus Current losses in inventories of goods for resale

    Changes in inventories of materials and supplies

    Additions to inventories of materials and supplies

    minus Withdrawals from inventories of materials and supplies

    minus Current losses in inventories of materials and supplies

    Changes in inventories

    Closing inventories

    minus Opening inventories

    minus Holding gains less losses on inventories

    plus Exceptional losses in inventories

    (Non-financial) net accumulation

    Gross capital formation

    minus Consumption of fixed capital

    plus Other changes in volume of non-financial assets

    Exports of goods

    of which:

    • Exports of goods for processing

      Exports of goods transformed from goods imported for processing

      Exports of repairs to fixed assets

      Exports of goods under financial leasing

      Exports of non-monetary gold

      • for use as valuables

        for other uses

      Transfers in kind to the rest of the world

      • current

        capital

      Direct purchases in the domestic market by non-residents

    Exports of goods

    of which:

    • Barter transactions

      Intra-company flows

    Exports of services

    of which:

    • Transfers in kind to the rest of the world

      Exports of insurance services

      Exports of financial intermediation services indirectly measured

      Counterpart of transport and insurance services provided by residents to residents and included in the value of imports f.o.b.

      Direct purchases in the domestic market by non-residents

    Imports of goods (Import of goods f.o.b.)

    Imports of goods c.i.f.

    minus c.i.f./f.o.b. adjustment on imports

    Imports of goods

    of which:

    • Imports of goods for processing

      Imports of goods from goods exported for processing abroad

      Imports of repairs to fixed assets

      Imports of goods under financial leasing

      Imports of non-monetary gold

      • for use as valuables

        for other uses

      Transfers in kind from the rest of the world

      • current

        capital

      Direct purchases abroad by residents

    Imports of goods

    of which:

    • Barter transactions

      Intra-company flows

    Imports of services

    of which:

    • Transfers in kind from the rest of the world

      Imports of insurance services

      Imports of financial intermediation services indirectly measured

      Counterpart of transport and insurance services provided by non-residents to non-residents and included in the value of export f.o.b.

      Direct purchases abroad by residents

    Transactions, adjustments and other elements used in the supply and use tables

    • Trade and transport margins

      Trade margins

      Transport margins

    C.i.f/f.o.b. adjustment on imports

    Transport services on imports rendered by residents

    Transport services on imports rendered by non-residents

    Insurance services on imports rendered by residents

    Insurance services on imports rendered by non-residents

    Direct purchases abroad by residents

    Direct purchases in the domestic market by non-residents

    Labour inputs

    Stocks of fixed assets, net

    2. Distributive transactions

    Wages and salaries

    Wages and salaries in cash

    Wages and salaries in kind

    Interest

    Nominal interest

    plus Financial intermediation services indirectly measured, provided to depositors

    less Financial intermediation services indirectly measured, provided to borrowers

    Rent

    on land

    • in cash

      in kind

    on subsoil assets

    • in cash

      in kind

    Insurance services

    Non-life insurance services (total)

    Non-life insurance total premiums earned

    minus Non-life insurance claims

    Life insurance services (total)

    Life insurance total premiums earned

    Plus Net income from the investment of all (both life and non-life) insurance technical reserves

    minus (Life) claims due

    minus Changes in (life) actuarial reserves and reserves for with-profits insurance less Holding gains/losses allocated to (life) insurance policy holders

    Non-life insurance premiums less service charges

    Non-life insurance total premiums earned

    minus Non-life insurance services

    Current international cooperation

    • in cash

      in kind

    Miscellaneous current transfers

    of which:

    • Transfers to non-profit institutions

      Transfers between resident households

      • in cash

        in kind

      Remittances from family members living abroad

      • in cash

        in kind

      Fines and penalties

      Lotteries and gambling

      Payments of compensation

    Capital transfers

    Capital taxes

    Investment grants

    • in cash

      in kind

    Other capital transfers

    • in cash

      in kind

      of which: Debt cancellation

    3. Complements in relation with the treatment of multiple exchange rates

    Taxes on production and imports

    ...

    • ...

      • ...

        Taxes on imports excl. VAT and duties Implicit taxes on imports resulting from multiple exchange rates Others

      Export taxes

      Implicit taxes on exports resulting from multiple exchange rates Others

      ...

    Other taxes on production

    • Implicit taxes on primary incomes resulting from multiple exchange rates Others

    Subsidies

    ...

    • Import subsidies

      • Implicit subsidies on imports resulting from

        multiple exchange rates

        Others

      Export subsidies

      • Implicit subsidies on exports resulting from

        multiple exchange rates

        Others

      ...

    Other subsidies on production

    • Implicit subsidies on primary incomes resulting from

      multiple exchange rates

      Others

    Current taxes on income, wealth, etc.

    ...

    Other current taxes

    • Implicit other current taxes resulting from multiple

      exchange rates

      Others

    Other current transfers

    ...

    Miscellaneous current transfers

    of which:

    • ...

      ...

      Implicit other current transfers resulting from

      multiple exchange rates

      Implicit current transfers between monetary authorities inrelation with multiple exchange rates

    Capital transfers

    Capital taxes

    • Implicit capital taxes resulting from multiple exchange

      rates

      Others

    ...

    Other capital transfers

    • Implicit other capital transfers resulting from multiple

      exchange rates

      Implicit capital transfers between monetary authorities

      in relation with multiple exchange rates

      Others

    Transactions, adjustments and other elements used in the supply and use table

    Implicit taxes/subsidies on imports resulting from multiple exchange rates

    Implicit taxes/subsidies on exports resulting from multiple exchange rates

    Implicit taxes resulting from multiple exchange rates1

    Implicit subsidies resulting from multiple exchange rates1

    F. International Standard Industrial Classification of all Economic Activities (ISIC), Rev.3

    Tabulation categoriesDivisionDescription
    AAgriculture, hunting and forestry
    01Agriculture, hunting and related service activities
    02Forestry, logging and related service activities
    BFishing
    05Fishing, operation of fish hatcheries and fish farms; service activities incidental to fishing
    CMining and quarrying
    10Mining of coal and lignite; extraction of peat
    11Extraction of crude petroleum and natural gas; service activities incidental to oil and gas extraction excluding surveying
    12ining of uranium and thorium ores
    13Mining of metal ores
    14Other mining and quarrying
    DManufacturing
    15Manufacture of food products and beverages
    16Manufacture of tobacco products
    17Manufacture of textiles
    18Manufacture of wearing apparel; dressing and dyeing of fur
    19Tanning and dressing of leather; manufacture of luggage, handbags, saddlery, harness and footwear
    20Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
    21Manufacture of paper and paper products
    22Publishing, printing and reproduction of recorded media
    23Manufacture of coke, refined petroleum products and nuclear fuel
    24Manufacture of chemicals and chemical products
    25Manufacture of rubber and plastics products
    26Manufacture of other non-metallic mineral products
    27Manufacture of basic metals
    28Manufacture of fabricated metal products, except machinery and equipment
    29Manufacture of machinery and equipment n.e.c.
    30Manufacture of office, accounting and computing machinery
    31Manufacture of electrical machinery and apparatus n.e.c.
    32Manufacture of radio, television and communication equipment and apparatus
    33Manufacture of medical, precision and optical instruments, watches and clocks
    34Manufacture of motor vehicles, trailers and semi-trailers
    35Manufacture of other transport equipment
    36Manufacture of furniture; manufacturing n.e.c.
    37Recycling
    EElectricity, gas and water supply
    40Electricity, gas, steam and hot water supply
    41Collection, purification and distribution of water
    FConstruction
    45Construction
    GWholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods
    50Sale, maintenance and repair of motor vehicles and motorcycles; retail sale of automotive fuel
    51Wholesale trade and commission trade, except of motor vehicles and motorcycles
    52Retail trade, except of motor vehicles and motorcycles; repair of personal and household goods
    HHotels and restaurants
    55Hotels and restaurants
    ITransport, storage and communications
    60Land transport; transport via pipelines
    61Water transport
    62Air transport
    63Supporting and auxiliary transport activities; activities of travel agencies
    64Post and telecommunications
    JFinancial intermediation
    65Financial intermediation, except insurance and pension funding
    66Insurance and pension funding, except compulsory social security
    67Activities auxiliary to financial intermediation
    KReal estate, renting and business activities
    70Real estate activities
    71Renting of machinery and equipment without operator and of personal and household goods
    72Computer and related activities
    73Research and development
    74Other business activities
    LPublic administration and defence; compulsory social security
    75Public administration and defence; compulsory social security
    MEducation
    80Education
    NHealth and social work
    85Health and social work
    OOther community, social and personal service activities
    90Sewage and refuse disposal, sanitation and similar activities
    91Activities of membership organizations n.e.c.
    92Recreational, cultural and sporting activities
    93Other service activities
    PPrivate households with employed persons
    95Private households with employed persons
    QExtra-territorial organizations and bodies
    99Extra-territorial organizations and bodies

    G. Central Product Classification (CPC)

    Section Division

    0 Agriculture, forestry and fishery products

    • 01 Products of agriculture, horticulture and market gardening

      02 Live animals and animal products

      03 Forestry and logging products

      04 Fish and other fishing products

    1 Ores and minerals; electricity, gas and water

    • 11 Coal and lignite; peat

      12 Crude petroleum and natural gas

      13 Uranium and thorium ores

      14 Metal ores

      15 Stone, sand and clay

      16 Other minerals

      17 Electricity, town gas, steam and hot water

      18 Water

    2 Food products, beverages and tobacco; textiles, apparel and leather products

    • 21 Meat, fish, fruit, vegetables, oils and fats

      22 Dairy products

      23 Grain mill products, starches and starch products; other food product

      24 Beverages

      25 Tobacco products

      26 Yarn and thread; woven and tufted textile fabrics

      27 Textile articles other than apparel

      28 Knitted or crocheted fabrics; wearing apparel

      29 Leather and leather products; footwear

    3 Other transportable goods, except metal products, machinery and equipment

    • 31 Products of wood, cork, straw and plaiting materials

      32 Pulp, paper and paper products; printed matter and related articles

      33 Coke oven products; refined petroleum products; nuclear fuel

      34 Basic chemicals

      35 Other chemical products; man-made fibres

      36 Rubber and plastics products

      37 Glass and glass products and other nonmetallic products n.e.c.

      38 Furniture; other transportable goods n.e.c.

      39 Wastes or scraps

    4 Metal products, machinery and equipment

    • 41 Basic metals

      42 Fabricated metal products, except machinery and equipment

      43 General purpose machinery

      44 Special purpose machinery

      45 Office, accounting and computing machinery

      46 Electrical machinery and apparatus

      47 Radio, television and communication equipment and apparatus

      48 Medical appliances, precision and optical instruments, watches and clocks

      49 Transport equipment

    5 Construction work and constructions; land

    • 51 Construction work

      52 Constructions

      53 Land

    6 Trade services; hotel and restaurant services

    • 61 Sale, maintenance and repair services of motor vehicles and motorcycles

      62 Commission agents’ and wholesale trade services, except of motor vehicles and motorcycles

      63 Retail trade services; repair services of personal and household goods

      64 Hotel and restaurant services

    7 Transport, storage and communications services

    • 71 Land transport services

      72 Water transport services

      73 Air transport services

      74 Supporting and auxiliary transport services

      75 Post and telecommunications services

    8 Business services; agricultural, mining and manufacturing services

    • 81 Financial intermediation services and auxiliary services therefor

      82 Real estate services

      83 Leasing or rental services without operator

      84 Computer and related services

      85 Research and development services

      86 Legal, accounting, auditing and book-keeping services; taxation services; market research and public opinion polling services; management and consulting services; architectural, engineering and other technical services

      87 Business services n.e.c.

      88 Agricultural, mining and manufacturing services

      89 Intangible assets

    9 Community, social and personal services

    • 91 Public administration and other services to the community as a whole; compulsory social security services

      92 Education services

      93 Health and social services

      94 Sewage and refuse disposal, sanitation and other environmental protection services

      95 Services of membership organizations

      96 Recreational, cultural and sporting services

      97 Other services

      98 Private households with employed persons

      99 Services provided by extraterritorial organizations and bodies

    H. Classification of individual consumption by purpose (COICOP) (one- and two-digit levels)

    1. Food, beverages and tobacco

    • 1.1 Food

      1.2 Beverages

      1.3 Tobacco

    2. Clothing and footwear

    • 2.1 Clothing

      2.2 Footwear

    3. Housing, water, electricity, gas and other fuels

    • 3.1 Gross rents

      3.2 Regular maintenance and repair of dwelling

      3.3 Other services relating to the dwelling

      3.4 Electricity, gas and other fuels

    4. Furnishings, household equipment and routine maintenance of the house

    • 4.1 Furniture, furnishings and decorations, carpets and other floor coverings and repairs

      4.2 Household textiles

      4.3 Heating and cooking appliances; refrigerators, washing machines, similar major household appliances, including fittings and repairs

      4.4 Glassware, tableware and household utensils

      4.5 Tools and equipment for the house and garden

      4.6 Goods and services for routine household maintenance

    5. Health

    • 5.1 Medical and pharmaceutical products and therapeutic appliances and equipment

      5.2 Non-hospital medical and paramedical services

      5.3 Hospital services

      5.4 Sickness and accident insurance services

    6. Transport

    • 6.1 Purchase of vehicles

      6.2 Operation of personal transport equipment

      6.3 Transports services

    7. Leisure, entertainment and culture

    • 7.1 Equipment and accessories, including repairs

      7.2 Recreational and cultural services

      7.3 Newspapers, books and stationery

    8. Education

    • 8.1 Educational services

      8.2 Educational materials

      8.3 Ancillary educational services

    9. Hotels, cafes and restaurants

    • 9.1 Catering

      9.2 Accommodation services

    10. Miscellaneous goods and services

    • 10.1 Personal care

      10.2 Personal effects n.e.c.

      10.3 Communications

      10.4 Social services

      10.5 Financial services n.e.c.

      10.6 Other services n.e.c.

    I. Classification of the Functions of the Government (COFOG)

    01 General public services

    • 01.1 Executive and legislative organs, financial and fiscal affairs, external affairs other than foreign aid

      01.2 Foreign economic aid

      01.3 Fundamental research affairs and services

      01.4 General services

      01.5 General public services n.e.c

    02 Defence affairs and services

    • 02.1 Military and civil defence administration and operation

      02.2 Foreign military aid

      02.3 Defence-related applied research and experimental development

      02.4 Defence affairs n.e.c.

    03 Public order and safety affairs

    • 03.1 Police and fire protection

      03.2 Law courts

      03.3 Prison administration and operation

      03.4 Public order and safety affairs n.e.c.

    04 Education affairs and services

    • 04.1 Pre-primary and primary education affairs and services (ISCED levels 0 and 1)

      04.2 Secondary education affairs and services (ISCED levels 2 and 3)

      04.3 Tertiary education affairs and services (ISCED levels 5, 6 and 7)

      04.4 Education services not definable by level (ISCED level 9)

      04.5 Subsidiary services to education

      04.6 Education affairs and services n.e.c.

    05 Health affairs and services

    • 05.1 Hospital affairs and services

      05.2 Clinics, and medical, dental and paramedical practitioners

      05.3 Public health affairs and services

      05.4 Medicaments, protheses, medical equipment and appliances or other prescribed health-related products

      05.5 Applied research and experimental development related to the health and medical delivery system

      05.6 Health affairs and services n.e.c.

    06 Social security and welfare affairs and services

    • 06.1 Social security affairs and services

      06.2 Welfare affairs and services

      06.3 Social security and welfare affairs n.e.c.

    07 Housing and community amenity affairs and services

    • 07.1 Housing and community development

      07.2 Water supply affairs and services

      07.3 Sanitary affairs and services including pollution abatement and control

      07.4 Street lighting affairs and services

      07.5 Housing and community amenity affairs and services n.e.c.

    08 Recreational, cultural and religious affairs and services

    • 08.0 Recreational, cultural and religious affairs and services

    09 Fuel and energy affairs and services

    • 09.1 Fuel affairs and services

      09.2 Electricity and other energy sources

      09.3 Fuel and energy affairs and services n.e.c.

    10 Agriculture, forestry, fishing and hunting affairs and services

    • 10.1 Agriculture affairs and services

      10.2 Forestry affairs and services

      10.3 Fishing and hunting affairs and services

      10.4 Agricultural research and experimental development n.e.c.

      10.5 Agriculture, forestry, fishing and hunting affairs and services n.e.c.

    11 Mining and mineral resource affairs and services, other than fuels; manufacturing affairs and services; and construction affairs and services

    • 11.1 Mining and mineral resource affairs and services, other than fuels

      11.2 Manufacturing affairs and services

      11.3 Construction affairs and services

      11.4 Mining and mineral resource affairs and services n.e.c; manufacturing affairs and services n.e.c; and construction affairs and services n.e.c

    12 Transportation and communication affairs and services

    • 12.1 Road transport affairs and services

      12.2 Water transport affairs and services

      12.3 Railway affairs and services

      12.4 Air transport affairs and services

      12.5 Pipeline transport and other transport system affairs and services

      12.6 Transportation system affairs and services n.e.c.

      12.7 Communication affairs and services

      12.8 Transportation and communication affairs and services n.e.c

    13 Other economic affairs and services

    • 13.1 Distribution trade affairs and services including storage and warehousing; hotel and restaurant affairs and services

      13.2 Tourism affairs and services

      13.3 Multipurpose development project affairs and services

      13.4 General economic and commercial affairs other than general labour affairs

      13.5 General labour affairs and services

      13.6 Other economic affairs and services n.e.c.

    14 Expenditures not classified by major group

    • 14.0 Expenditure not classified by major group

    J. Classification of the purposes of the non-profit institutions serving households (COPNI)

    1. Research and scientific services

    2. Education services

    3. Health services

    4. Welfare services

    5. Recreational, cultural and related services

    6. Religious services

    7. Services of professional and labour organizations and civic associations

    8. Miscellaneous services not elsewhere classified

    K. Classification of outlays of producers by purpose (COPP) (one - and two-digit levels)

    1. Outlays on current production programmes

    2. Outlays on repair and maintenance

    • 2.1 Outlays to make good breakage and to keep fixed assets in good working order

      2.2 Outlays on cleaning and general housekeeping

    3. Outlays on engineering and related technological work

    • 3.1 Outlays on engineering and technological work

      3.2 Outlays on fashion designing and other artistic design work

    4. Outlays on research and development

    • 4.1 Outlays on basic research

      4.2 Outlays on applied research

      4.3 Outlays on experimental development

    5. Outlays on pollution abatement and control

    6. Outlays on sales promotion

    • 6.1 Outlays on direct sales effort

      6.2 Outlays on advertising

      6.3 Outlays on sales promotion, not elsewhere classified

    7. Outlays on external transportation

    8. Outlays on employee training, welfare and morale

    9. Outlays on general administration

    Notes

    Including social security funds of this level of government.

    The following memorandum items are related to the elements of the category F.2 “currency and deposits”:

    m 11: denominated in national currency

    m 12: denominated in foreign currency

    m 21: liability of resident institutions

    m 22: liability of the rest of the world

    The suggested breakdown is optional.

    Memo item: F.m direct foreign investment.

    All balancing items can be measured gross or net of consumption of fixed capital. The code for gross balancing item is constituted of the code for the item plus the letter “g”. Similarily, the letter “n” attached to a code indicates net values.

    “Changes in net worth due to saving and capital transfers” is not a balancing item in the structure of the System. It is the total of the right-hand side of the capital account. However, as a significant component of changes in net worth, it is coded with the other components of the latter.

    “Changes in net worth due to saving and capital transfers” for the rest of the world refers to changes in net worth due to current external balance and capital transfers.

    Memorandum item AN.m Consumer durables.

    The following memorandum items are related to the categories of the item AF.2 “currency and deposits”:

    m 11: denominated in national currency

    m 12: denominated in foreign currency

    m 21: liability of resident institutions

    m 22: liability of the rest of the world

    The suggested breakdown is optional.

    memorandum item AF.m: direct foreign investment

    Also used in the integrated economic accounts.

    Part II. Accounts

    Table A.V.1.Account 0: Goods and services account
    ResourcesUses
    P.1Output13 604P.2Intermediate consumption1 883
    P.11Market output3 057
    P.12Output for own use171P.3/P.4Final consumption expenditure/Actual final consumption1 399
    P.13Other non-market output376P.31/P.41Individual consumption expenditure/Actual individual consumption1 243
    P.32/P.42Collective consumption expenditure/Actual collective consumption156
    D.21Taxes on products1141
    D.31Subsidies on products1−8P.51Gross fixed capital formation376
    P.511Acquisitions less disposals of tangible fixed assets303
    P.7Imports of goods and services499P.5111Acquisitions of new tangible fixed assets305
    P.71Imports of goods392P.5112Acquisitions of existing tangible fixed assets11
    P.72Imports of services107P.5113Disposals of existing tangible fixed assets−13
    P.512Acquisitions less disposals of intangible fixed assets51
    P.5121Acquisitions of new intangible fixed assets53
    P.5122Acquisitions of existing intangible fixed assets6
    P.5123Disposals of existing intangible fixed assets−8
    P.513Additions to the value of non-produced non-financial assets22
    P.5131Major improvements to non-produced non-financial assets5
    P.5132Costs of ownership transfer on non-produced non-financial assets17
    P.52Changes in inventories28
    P.53Acquisitions less disposals of valuables10
    P.6Exports of goods and services540
    P.61Exports of goods462
    P.62Exports of services78
    1

    For the valuation of output and the resulting contents of the items “Taxes on products” and “Subsidies on products”, refer to chapter VI, paragraphs 6.210 to 6.227.

    Table A.V.2.Full sequence of accounts for the total economy

    I: Production account

    UsesResources
    P.2Intermediate consumption1 883P.1Output13 604
    P.11Market output3 057
    P.12Output for own final use171
    P.13Other non-market output376
    D.31Taxes less subsidies on products1133
    B.1*gGross domestic product21 854
    K.1Consumption of fixed capital222
    B.1*gNet domestic product21 632

    For the valuation of output, refer to chapter VI, paragraphs 6.210 to 6.227.

    Gross domestic product/net domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    For the contents of the items “Taxes on products” and “Subsidies on products”, refer to chapter VI, paragraphs 6,210 to 6.227.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Including only property income connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Not connected with market activities.

    Including only property income not connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    “Changes in net worth due to saving and capital transfers” is not a balancing item but corresponds to the total of the right-hand side of the capital account.

    The following memorandum items related to the elements of the category F.2 “Currency and deposits”:

    • m11 denominated in national currency

      m12 denominated in foreign currency

      m21 liability of resident institutions

      m22 1iability of rest of the world.

    Memorandum item: F.m. Direct foreign investment.

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    II. Distribution and use of income accounts

    II.1: Primary distribution of income account

    II.1.1: Generation of income account

    UsesResources
    D.1Compensation of employees762B.1Domestic product231 632
    D.11Wages and salaries569
    D.12Employers’ social contributions193
    D.121Employers’ actual social contributions Employers’ imputed social contributions174
    D.122Employers’ imputed social contributions19
    D.2Taxes on production and imports235
    D.21Taxes on products1141
    D.211Value added type taxes (VAT)121
    D.212Taxes and duties on imports excluding VAT17
    D.2121Import duties17
    D.2122Taxes on imports excluding VAT and duties0
    D.213Export taxes1
    D.214Taxes on products except VAT, import and export taxes2
    D.29Other taxes on production94
    D.3Subsidies−44
    D.31Subsidies on products1−8
    D.311Import subsidies0
    D.312Export subsidies0
    D.319Other subsidies on products−8
    D.39Other subsidies on production−36
    B.2Operating surplus1247
    B.3Mixed income1432

    For the valuation of output, refer to chapter VI, paragraphs 6.210 to 6.227.

    Gross domestic product/net domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    For the contents of the items “Taxes on products” and “Subsidies on products”, refer to chapter VI, paragraphs 6,210 to 6.227.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Including only property income connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Not connected with market activities.

    Including only property income not connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    “Changes in net worth due to saving and capital transfers” is not a balancing item but corresponds to the total of the right-hand side of the capital account.

    The following memorandum items related to the elements of the category F.2 “Currency and deposits”:

    • m11 denominated in national currency

      m12 denominated in foreign currency

      m21 liability of resident institutions

      m22 1iability of rest of the world.

    Memorandum item: F.m. Direct foreign investment.

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    II.1.2: Allocation of primary income account

    UsesResources
    D.4Property income391B.2Operating surplus1247
    D.41Interest217B.3Mixed income1432
    D.42Distributed income of corporations84
    D.421Dividends60D.1Compensation of employees766
    D.422Withdrawals from income of quasi-corporations24D.11Wages and salaries573
    D.43Reinvested earnings on direct foreign investment0D.12Employers’ social contributions193
    D.44Property income attributed to insurance policyholders25D.121Employers’ actual social contributions174
    D.45Rent65D.122Employers’ imputed social contributions19
    D.2Taxes on production and imports235
    D. 21Taxes on products141
    D.211Value added type taxes (VAT)121
    D.212Taxes and duties on imports excluding VAT17
    D.2121Import duties17
    D.2122Taxes on imports excluding VAT and duties0
    D.213Export taxes1
    D.214Taxes on products except VAT, import and export taxes2
    D.29Other taxes on production94
    D.3Subsidies−44
    D.31Subsidies on products−8
    D.311Import subsidies0
    D.312Export subsidies0
    D.319Other subsidies on products−8
    D.39Other subsidies on production−36
    D.4Property income416
    D.41Interest209
    D.42Distributed income of corporations103
    D.421Dividends46
    D.422Withdrawals from income of quasi-corporations57
    D.43Reinvested earnings on direct foreign investment14
    D.44Property income attributed to insurance policyholders25
    D.45Rent65
    B.5*National income11661

    For the valuation of output, refer to chapter VI, paragraphs 6.210 to 6.227.

    Gross domestic product/net domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    For the contents of the items “Taxes on products” and “Subsidies on products”, refer to chapter VI, paragraphs 6,210 to 6.227.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Including only property income connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Not connected with market activities.

    Including only property income not connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    “Changes in net worth due to saving and capital transfers” is not a balancing item but corresponds to the total of the right-hand side of the capital account.

    The following memorandum items related to the elements of the category F.2 “Currency and deposits”:

    • m11 denominated in national currency

      m12 denominated in foreign currency

      m21 liability of resident institutions

      m22 1iability of rest of the world.

    Memorandum item: F.m. Direct foreign investment.

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    II.1.2.1: Entrepreneurial income account

    UsesResources
    D.4Property income2236B.2Operating surplus1247
    D.41Interest166B.3Mixed income1432
    D.44Property income attributed to insurance policyholders25
    D.45Rent45D.4Property income2236
    D.41Interest139
    D.42Distributed income of corporations37
    D.421Dividends37
    D.422Withdrawals from income of quasi-corporations0
    D.43Reinvested earnings on direct foreign investment11
    D.44Property income attributed to insurance policyholders5
    D.45Rent44
    B.4Entrepreneurial income1679

    For the valuation of output, refer to chapter VI, paragraphs 6.210 to 6.227.

    Gross domestic product/net domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    For the contents of the items “Taxes on products” and “Subsidies on products”, refer to chapter VI, paragraphs 6,210 to 6.227.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Including only property income connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Not connected with market activities.

    Including only property income not connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    “Changes in net worth due to saving and capital transfers” is not a balancing item but corresponds to the total of the right-hand side of the capital account.

    The following memorandum items related to the elements of the category F.2 “Currency and deposits”:

    • m11 denominated in national currency

      m12 denominated in foreign currency

      m21 liability of resident institutions

      m22 1iability of rest of the world.

    Memorandum item: F.m. Direct foreign investment.

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    II.1.2.2: Allocation of primary income account

    UsesResources
    D.4Property income155B.4Entrepreneurial income1679
    D.41Interest251
    D.42Distributed income of corporations84D.1Compensation of employees766
    D.421Dividends60D.11Wages and salaries573
    D.422Withdrawals from income of quasi-corporations24D.12Employers’ social contributions193
    D.43Reinvested earnings on direct foreign investment0D.121Employers’ actual social contributions174
    D.45Rent220D.122Employers’ imputed social contributions19
    D.2Taxes on production and imports235
    D.21Taxes on products141
    D.211Value added type taxes (VAT)121
    D.212Taxes and duties on imports excluding VAT17
    D.2121Import duties17
    D.2122Taxes on imports excluding VAT and duties0
    D.213Export taxes1
    D.214Taxes on products except VAT, import and export taxes2
    D.29Other taxes on production94
    D.3Subsidies−44
    D.31Subsidies on products−8
    D.311import subsidies0
    D.312Export subsidies0
    D.319Other subsidies on products−8
    D.39Other subsidies on production−36
    D.4Property income3180
    D.41Interest70
    D.42Distributed income of corporations66
    D.421Dividends9
    D.422Withdrawals from income of quasi-corporations57
    D.43Reinvested earnings on direct foreign investment3
    D.44Property income attributed to insurance policyholders20
    D.45Rent21
    B.5*National income11661

    For the valuation of output, refer to chapter VI, paragraphs 6.210 to 6.227.

    Gross domestic product/net domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    For the contents of the items “Taxes on products” and “Subsidies on products”, refer to chapter VI, paragraphs 6,210 to 6.227.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Including only property income connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Not connected with market activities.

    Including only property income not connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    “Changes in net worth due to saving and capital transfers” is not a balancing item but corresponds to the total of the right-hand side of the capital account.

    The following memorandum items related to the elements of the category F.2 “Currency and deposits”:

    • m11 denominated in national currency

      m12 denominated in foreign currency

      m21 liability of resident institutions

      m22 1iability of rest of the world.

    Memorandum item: F.m. Direct foreign investment.

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    II.2: Secondary distribution of income account

    UsesResources
    D.5Current taxes on income, wealth, etc.212B.5National income11661
    D.51Taxes on income203
    D.59Other current taxes9D.5Current taxes on income, wealth, etc.213
    D.51Taxes on income204
    D.61Social contributions322D.59Other current taxes9
    D.611Actual social contributions303D.61Social contributions322
    D.6111Employers’ actual social contributions174D.611Actual social contributions303
    D.61111Compulsory employers’ actual social contributions160D.6111Employers’ actual social contributions174
    D.61112Voluntary employers’ actual social contributions14D.61111Compulsory employers’ actual social contributions160
    D.6112Employees’ social contributions97D.61112Voluntary employers’ actual social contributions14
    D.61121Compulsory employees’ social contributions85D.6112Employees’ social contributions97
    D 61122Voluntary employees’ social contributions12D.61121Compulsory employers’ actual social contributions85
    D.6113Social contributions by self- and non-employed persons32D.61122Voluntary employers’ actual social contributions12
    D.61131Compulsory social contributions by self- and non-employed persons22D.6113Social contributions by self- and non-employed persons32
    D.61132Voluntary social contributions by self- and non-employed persons10D.61131Compulsory social contributions by self- and non-employed persons22
    D.612Imputed social contributions19D.61132Voluntary social contributions by self- and non-employed persons10
    D.612Imputed social contributions19
    D.62Social benefits other than social transfers in kind332
    D.621Social security benefits in cash232D.62Social benefits other than social transfers in kind332
    D.622Private funded social benefits29D.621Social security benefits in cash232
    D.623Unfunded employee social benefits19D.622Private funded social benefits29
    D.624Social assistance benefits in cash52D.623Unfunded employee social benefits19
    D.624Social assistance benefits in cash52
    D.7Other current transfers269
    D.71Net non-life insurance premiums43D.7Other current transfers239
    D.72Non-life insurance claims45D.71Net non-life insurance premiums45
    D.73Current transfers within general government96D.72Non-life insurance claims42
    D.74Current international cooperation31D.73Current transfers within general government96
    D.75Miscellaneous current transfers54D.74Current international cooperation
    D.75Miscellaneous current transfers55
    B.6Disposable income11632

    For the valuation of output, refer to chapter VI, paragraphs 6.210 to 6.227.

    Gross domestic product/net domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    For the contents of the items “Taxes on products” and “Subsidies on products”, refer to chapter VI, paragraphs 6,210 to 6.227.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Including only property income connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Not connected with market activities.

    Including only property income not connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    “Changes in net worth due to saving and capital transfers” is not a balancing item but corresponds to the total of the right-hand side of the capital account.

    The following memorandum items related to the elements of the category F.2 “Currency and deposits”:

    • m11 denominated in national currency

      m12 denominated in foreign currency

      m21 liability of resident institutions

      m22 1iability of rest of the world.

    Memorandum item: F.m. Direct foreign investment.

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    II.3: Redistribution of income in kind account

    UsesResources
    D.63Social transfers in kind228B.6Disposable income11632
    D.631Social benefits in kind162
    D.6311Social security benefits, reimbursements78D.63Social transfers in kind228
    D.6312Other social security benefits in kind65D.631Social benefits in kind162
    D.6313Social assistance benefits in kind19D.6311Social security benefits, reimbursements78
    D.632Transfers of individual non-market goods and services66D.6312Other social security benefits in kind65
    D.6313Social assistance benefits in kind19
    D.632Transfers of individual non-market goods and services66
    B.7Adjusted disposable income11632

    For the valuation of output, refer to chapter VI, paragraphs 6.210 to 6.227.

    Gross domestic product/net domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    For the contents of the items “Taxes on products” and “Subsidies on products”, refer to chapter VI, paragraphs 6,210 to 6.227.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Including only property income connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Not connected with market activities.

    Including only property income not connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    “Changes in net worth due to saving and capital transfers” is not a balancing item but corresponds to the total of the right-hand side of the capital account.

    The following memorandum items related to the elements of the category F.2 “Currency and deposits”:

    • m11 denominated in national currency

      m12 denominated in foreign currency

      m21 liability of resident institutions

      m22 1iability of rest of the world.

    Memorandum item: F.m. Direct foreign investment.

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    II.4: Use of income account

    II.4.1: Use of disposable income account

    UsesResources
    P.3Final consumption expenditure1399B.6Disposable income11632
    P.31Individual consumption expenditure1243
    P.32Collective consumption expenditure156D.8Adjustment for the change in net equity of households on pension funds11
    D.8Adjustment for the change in net equity of households on pension funds11
    B.8Saving1

    For the valuation of output, refer to chapter VI, paragraphs 6.210 to 6.227.

    Gross domestic product/net domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    For the contents of the items “Taxes on products” and “Subsidies on products”, refer to chapter VI, paragraphs 6,210 to 6.227.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Including only property income connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Not connected with market activities.

    Including only property income not connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    “Changes in net worth due to saving and capital transfers” is not a balancing item but corresponds to the total of the right-hand side of the capital account.

    The following memorandum items related to the elements of the category F.2 “Currency and deposits”:

    • m11 denominated in national currency

      m12 denominated in foreign currency

      m21 liability of resident institutions

      m22 1iability of rest of the world.

    Memorandum item: F.m. Direct foreign investment.

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    II.4.2: Use of adjusted disposable income account

    UsesResources
    P.4Actual final consumption1399B.7Adjusted disposable income11632
    P.41Actual individual consumption1243
    P.42Actual collective consumption156D.8Adjustment for the change in net equity of households on pension funds11
    D.8Adjustment for the change in net equity of households on pension funds11
    B.8Saving1233

    For the valuation of output, refer to chapter VI, paragraphs 6.210 to 6.227.

    Gross domestic product/net domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    For the contents of the items “Taxes on products” and “Subsidies on products”, refer to chapter VI, paragraphs 6,210 to 6.227.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Including only property income connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Not connected with market activities.

    Including only property income not connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    “Changes in net worth due to saving and capital transfers” is not a balancing item but corresponds to the total of the right-hand side of the capital account.

    The following memorandum items related to the elements of the category F.2 “Currency and deposits”:

    • m11 denominated in national currency

      m12 denominated in foreign currency

      m21 liability of resident institutions

      m22 1iability of rest of the world.

    Memorandum item: F.m. Direct foreign investment.

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    III. Accumulation accounts

    III.1: Capital account

    Changes in assetsChanges in liabilities and net worth
    P.51Cross fixed capital formation376B.8nSaving, net233
    P.511Acquisitions less disposals of tangible fixed assets303
    P.5111Acquisitions of new tangible fixed assets305D.9Capital transfers, receivable62
    P.5112Acquisitions of existing tangible fixed assets11D.91Capital taxes2
    P.5113Disposals of existing tangible fixed assets−13D.92Investment grants23
    P.512Acquisitions less disposals of intangible fixed assets51D.99Other capital transfers37
    P.5121Acquisitions of new intangible fixed assets53
    P.5122Acquisitions of existing intangible fixed assets6D.9Capital transfers, payable−65
    P.5123Disposals of existing intangible fixed assets−8D.91Capital taxes−2
    P.513Additions to the value of non-produced non-financial assets22D.92Investment grants−27
    P.5131Major improvements to non-produced non-financial assets5D.99Other capital transfers−36
    P.5132Costs of ownership transfer on non-produced non-financial assets17
    K.1Consumption of fixed capital−222
    P.52Changes in inventories28
    P.53Acquisitions less disposals of valuables10
    K.2Acquisitions less disposals of non-produced non-financial assets0
    K.21Acquisitions less disposals of land and other tangible non-produced assets0
    K.22Acquisitions less disposals of intangible non-produced assets0
    B.9Net lending (+) / Net borrowing (-)38B.10.1Changes in net worth due to saving and capital transfers1230

    For the valuation of output, refer to chapter VI, paragraphs 6.210 to 6.227.

    Gross domestic product/net domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    For the contents of the items “Taxes on products” and “Subsidies on products”, refer to chapter VI, paragraphs 6,210 to 6.227.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Including only property income connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Not connected with market activities.

    Including only property income not connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    “Changes in net worth due to saving and capital transfers” is not a balancing item but corresponds to the total of the right-hand side of the capital account.

    The following memorandum items related to the elements of the category F.2 “Currency and deposits”:

    • m11 denominated in national currency

      m12 denominated in foreign currency

      m21 liability of resident institutions

      m22 1iability of rest of the world.

    Memorandum item: F.m. Direct foreign investment.

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    III.2: Financial account

    Changes in assetsChanges in liabilities and net worth
    FNet acquisition of financial assets641FNet incurrence of liabilities603
    F.1Monetary gold and SDRs1
    F.2Currency and deposits1119F.2Currency and deposits1132
    F.21Currency34F.21Currency35
    F.22Transferable deposits62F.22Transferable deposits Other deposits65
    F.23Other deposits23F.23Other deposits32
    F.3Securities other than shares138F.3Securities other than shares123
    F.31Short-term54F.31Short-term51
    F.32Long-term84F.32Long-term72
    F.4Loans2244F.4Loans2217
    F.41Short-term83F.41Short-term76
    F.42Long-term161F.42Long-term141
    F.5Shares and other equity244F.5Shares and other equity243
    F.6Insurance technical reserves36F.6Insurance technical reserves36
    F.61Net equity of households on life insurance reserves and on pension funds33F.61Net equity of households on life insurance reserves and on pension funds33
    F.611Net equity of households on life insurance reserves22F.611Net equity of households on life insurance reserves22
    F.612Net equity of households on pension funds11F.612Net equity of households on pension funds11
    F.62Prepayment of premiums and reserves against outstanding claims3F.62Prepayment of premiums and reserves against outstanding claims3
    F.7Other accounts receivable261F.7Other accounts payable252
    F.71Trade credits and advances18F.71Trade credits and advances18
    F.79Other accounts payable, except trade credits and advances43F.79Other accounts payable, except trade credits and advances43
    B.9Net lending (+)/net borrowing (-)38

    For the valuation of output, refer to chapter VI, paragraphs 6.210 to 6.227.

    Gross domestic product/net domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    For the contents of the items “Taxes on products” and “Subsidies on products”, refer to chapter VI, paragraphs 6,210 to 6.227.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Including only property income connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Not connected with market activities.

    Including only property income not connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    “Changes in net worth due to saving and capital transfers” is not a balancing item but corresponds to the total of the right-hand side of the capital account.

    The following memorandum items related to the elements of the category F.2 “Currency and deposits”:

    • m11 denominated in national currency

      m12 denominated in foreign currency

      m21 liability of resident institutions

      m22 1iability of rest of the world.

    Memorandum item: F.m. Direct foreign investment.

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    III.3: Other changes in assets accounts

    III.3.1. Other changes in volume of assets account

    Changes in assetsChanges in liabilities and net worth
    ANNon-financial assets10AFLiabilities−2
    AN.1Produced assets−7K.7Catastrophic losses0
    K.4Economic appearance of produced assets3K.8Uncompensated seizures0
    K.7Catastrophic losses−9K.10Other volume changes in financial assets and net−2
    K.8Uncompensated seizures0K.12Changes in classifications and structure0
    K.9Other volume changes in non-financial assets n.e.c.1K.12.1Changes in sector classification and structure0
    K.12Changes in classifications and structure−2K.12.2Changes in classification of assets and liabilities0
    K.12.1Changes in sector classification and structure0K.12.22Changes in classification of assets or liabilities other than monetization/demonetization of gold0
    K.12.2Changes in classification of assets and liabilities−2of which:
    AF.2

    Currency and deposits

    0
    K.12.21Monetization/demonetization of gold−2
    K.12.22Changes in classification of assets or liabilities other than monetization/demonetization of gold0AF.3Securities other than shares0
    of which:
    AN.11

    Fixed assets

    −4
    AF.4−4
    AF.5Shares and other equity0
    AN.12Inventories−1AF.6Insurance technical reserves2
    AN.13Valuables−2AF.7Other accounts payable0
    AN.2Non-produced assets17
    K.3Economic appearance of non-produced assets24
    K.5Natural growth of non-cultivated biological resources4
    K.6Economic disappearance of non-produced assets−9
    K.61Depletion of natural assets−8
    K.62Other economic disappearance of non-produced assets−1
    K.7Catastrophic losses−2
    K.8Uncompensated seizures0
    K.9Other volume changes in non-financial assets n.e.c.0
    K.12Changes in classifications and structure0
    K.12.1Changes in sector classification and structure0
    K.12.2Changes in classification of assets and liabilities0
    K.12.22Changes in classification of assets or liabilities oilier than monetization/demonetization of gold0
    of which:
    AN.21

    Tangible non-produced assets

    17
    AN.22Intangible non-produced assets0
    AFFinancial assets5
    K.7Catastrophic losses0
    K.8Uncompensated seizures0
    K.10Other volume changes in financial assets and liabilities n.e.c.3
    K.12Changes in classifications and structure2
    K.12.1Changes in sector classification and structure0
    K.12.2Changes in classification of assets and liabilities2
    K.12.21Monetization/demonetization of gold2
    K.12.22Changes in classification of assets or liabilities other than monetization/demonetization of gold0
    of which:
    AF.1

    Monetary gold and SDRs

    7
    AF.2Currency and deposits0
    AF.3Securities other than shares0
    AF.4Loans−4
    AF.5Shares and other equity0
    AF.6Insurance technical reserves2
    AF.7Other accounts receivable0
    B.10.2Changes in net worth due to other changes in volume of assets17

    For the valuation of output, refer to chapter VI, paragraphs 6.210 to 6.227.

    Gross domestic product/net domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    For the contents of the items “Taxes on products” and “Subsidies on products”, refer to chapter VI, paragraphs 6,210 to 6.227.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Including only property income connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Not connected with market activities.

    Including only property income not connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    “Changes in net worth due to saving and capital transfers” is not a balancing item but corresponds to the total of the right-hand side of the capital account.

    The following memorandum items related to the elements of the category F.2 “Currency and deposits”:

    • m11 denominated in national currency

      m12 denominated in foreign currency

      m21 liability of resident institutions

      m22 1iability of rest of the world.

    Memorandum item: F.m. Direct foreign investment.

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    III.3.2: Revaluation account

    Changes in assetsChanges in liabilities and net worth
    K.11Nominal holding gains(+)/losses(−)1:K.11Nominal holding gains(−)/losses(+)1:
    ANNon-financial assets280AFLiabilities76
    AN.1Produced assets126AF.2Currency and deposits0
    AN.11Fixed assets111AF.3Securities other than shares42
    AN.12Inventories7AF.4Loans0
    AN.13Valuables8AF.5Shares and other equity34
    AN.2Non-produced assets154AF.6Insurance technical reserves0
    AN.21Tangible non-produced assets152AF.7Other accounts payable0
    AN.22Intangible non-produced assets2
    AFFinancial assets84
    AF.1Monetary gold and SDKs12
    AF.2Currency and deposits0
    AF.3Securities other than shares40
    AF.4Loans0
    AF.5Shares and other equity31
    AF.6Insurance technical reserves0
    AF.7Other accounts receivable0
    B.10.3Changes in net worth due to nominal holding gains/losses288

    For the valuation of output, refer to chapter VI, paragraphs 6.210 to 6.227.

    Gross domestic product/net domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    For the contents of the items “Taxes on products” and “Subsidies on products”, refer to chapter VI, paragraphs 6,210 to 6.227.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Domestic product is equal to the value added of the institutional sectors plus taxes less subsidies on products.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Including only property income connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    Not connected with market activities.

    Including only property income not connected with market activities.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    The opening and the closing balancing item of this account can be expressed in gross or in net terms. The amount presented refers to the net value.

    “Changes in net worth due to saving and capital transfers” is not a balancing item but corresponds to the total of the right-hand side of the capital account.

    The following memorandum items related to the elements of the category F.2 “Currency and deposits”:

    • m11 denominated in national currency

      m12 denominated in foreign currency

      m21 liability of resident institutions

      m22 1iability of rest of the world.

    Memorandum item: F.m. Direct foreign investment.

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding errors.

    1

    Differences between data on individual items and totals of holding gains/losses may not be entirely consistent due to rounding err