Chapter

Appendix 9. Glossary

Author(s):
Sage De Clerck, and Tobias Wickens
Published Date:
March 2015
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Accrual basis of recording

In the accrual basis of recording, flows are recorded at the time economic value is created, transformed, exchanged, transferred, or extinguished 3.62

Actual employers’ social contributions

Actual employers’ social contributions consist of actual contributions payable to social security funds, employment-related pension funds, and other employment-related social insurance schemes to obtain entitlement to social benefits for their employees 6.21

Actual premium (fee)

The actual premium (fee) is the amount payable to the insurer (guarantor) to secure insurance coverage for a specific event over a stated time period A4.74

Aggregates

Aggregates are summations of individual entries and elements in a class of flows or stock positions 3.141

Allocated gold accounts

Allocated gold accounts provide ownership of a specific piece of gold 7.127

Amortized value of a loan

Amortized value of a loan reflects the gradual elimination of the liability by regular payments over a specified period of time 3.115

Ancillary activity

An ancillary activity is a supporting activity providing services within an enterprise in order to create the conditions within which the principal or secondary activities can be carried out 2.45

Arrears

Arrears are defined as amounts that are both unpaid and past the due date for payment 3.71, 7.247, 9.20

Asset

An asset is a store of value representing a benefit or series of benefits accruing to the economic owner by holding or using the resource over a period of time 3.42, 7.6

Asset-backed securities and collateralized debt obligations

Asset-backed securities and collateralized debt obligations are arrangements under which payments of interest and principal are backed by payments on specified assets or income streams 7.151

Balance of payments

The balance of payments summarizes economic transactions between residents and nonresidents during a specific time period A7.76

Balance sheet

A balance sheet is a statement of the values of the stock positions of assets owned and of the liabilities owed by an institutional unit or group of units, drawn up in respect of a particular point in time 3.56, 4.39, 7.1

Balancing items

Balancing items are economic constructs obtained by subtracting one aggregate from a second aggregate 3.142

Banker’s acceptance

A banker’s acceptance is created when a financial corporation endorses, in return for a fee, a draft or bill of exchange and the unconditional promise to pay a specific amount at a specified date 7.145

Bills

Bills are defined as securities (usually short-term) that give holders the unconditional rights to receive stated fixed sums on a specified date 7.144

Bonds and debentures

Bonds and debentures are securities that give the holders the unconditional right to fixed payments or contractually determined variable payments on a specified date or dates 7.146

Book value

Book value generally refers to the value recorded in the entities’ records 3.115

Budgetary central government

The budgetary central government is often a single unit of the central government that encompasses the fundamental activities of the national executive, legislative, and judiciary powers 2.81

Buildings other than dwellings

Buildings other than dwellings include whole buildings or parts of buildings not designated as dwellings. Fixtures, facilities, and equipment that are integral parts of the structures are included 7.46

Capital account in the international accounts

The capital account in the international accounts shows transactions between residents and nonresidents related to capital transfers receivable and payable and the acquisition and disposal of nonproduced nonfinancial assets A7.89

Capital claims payable

Capital claims payable comprise exceptionally large insurance settlements payable in the wake of a catastrophic event or disaster 6.125

Capital claims receivable

Capital claims receivable comprise exceptionally large insurance settlements receivable in the wake of a catastrophic event or disaster 5.151

Capital grants

Capital grants are capital transfers receivable by government units, from other resident or nonresident government units or international organizations, that do not meet the definition of a tax, subsidy, or a social contribution 5.103

Capital levies

Capital levies cover taxes on the values of the assets or net worth owned by institutional units levied at irregular and very infrequent intervals of time 5.52

Capital taxes

Capital taxes are taxes levied at irregular and very infrequent intervals on the values of the assets or net worth owned by institutional units or on the values of assets transferred between institutional units as a result of legacies, gifts, or other transfers 5.52

Capital transfers

Capital transfers are transfers in which the ownership of an asset (other than cash or inventories) changes from one party to another or that oblige one or both parties to acquire or dispose of an asset (other than cash or inventories) 3.16

Capital transfers not elsewhere classified

Capital transfers not elsewhere classified are gifts and transfers of a capital nature (other than grants) from individuals, private nonprofit institutions, nongovernmental foundations, or corporations 5.148

Captive financial institutions and money lenders

Captive financial institutions and money lenders are institutional units providing financial services other than insurance, where most of their assets or liabilities are not available on open financial markets 2.54

Cash basis of recording

In the cash basis of recording, flows are recorded when cash is received or disbursed 3.67

Catastrophic loss

A catastrophic loss is the partial or complete destruction of a significantly large number of assets within any of the asset categories resulting from a large-scale, discrete, and recognizable event 10.60

Center of predominant economic interest

An institutional unit has a center of predominant economic interest in an economic territory when there exists, within the economic territory, some location, dwelling, place of production, or other premises on which, or from which, the unit engages and intends to continue engaging, either indefinitely or over a finite but long period of time, in economic activities and transactions on a significant scale 2.12

Central bank

The central bank is the national financial institution that exercises control over key aspects of the financial system 2.118

Central government subsector

The central government subsector consists of the institutional unit(s) of the central government plus those nonmarket NPIs that are controlled by the central government. The political authority of the central government extends over the entire territory of the country 2.85

Change in net worth due to holding gains or losses

Change in net worth due to holding gains or losses is defined as the sum of the positive or negative holding gains and holding losses on all assets and liabilities 4.37

Change in net worth due to other changes in the volume of assets and liabilities

Change in net worth due to other changes in the volume of assets and liabilities is defined as the sum of the positive and negative other changes in the volume of assets and liabilities 4.38

Change in net worth due to other economic flows

Change in net worth due to other economic flows is defined as the sum of the change in net worth due to holding gains or losses and the change in net worth due to other changes in the volume of assets 4.36, 10.2

Claim (benefit or call)

A claim (benefit or call) is the amount payable to the policyholder by the insurer in respect of an event covered by the policy occurring in the period for which the policy is valid A4.77

Collective service

A collective service is a service provided simultaneously to all members of the community or to all members of a particular section of the community, such as all households living in a particular region 6.134

Commitments basis of recording

In the commitments basis of recording, flows are recorded when an institutional unit has committed itself to a transaction 3.65

Compensation of employees

Compensation of employees is the total remuneration, in cash or in kind, payable to an individual in an employer-employee relationship in return for work performed by the latter during the reporting period 6.9

Computer software

Computer software includes computer programs, program descriptions, and supporting materials for both systems and applications software that are expected to be used for more than one year 7.70

Consolidation

Consolidation is a method of presenting statistics for a set of units (or entities) as if they constituted a single unit 3.153, 9.18

Consumption of fixed capital

Consumption of fixed capital is the decline, during the course of the reporting period, in the current value of the stock of fixed assets owned and used by a government unit as a result of physical deterioration, normal obsolescence, or normal accidental damage 6.53

Contingent liabilities

Contingent liabilities are obligations that do not arise unless a particular, discrete event(s) occurs in the future 4.47, 7.251

Contracts, leases, and licenses

Contracts, leases, and licenses are treated as assets only when both the following conditions are satisfied: (i) the terms of the contract, lease, or license specify a price for the use of an asset or provision of a service that differs from the price that would prevail in the absence of the contract, lease, or license, and (ii) one party to the contract must be able legally and practically to realize this price difference 7.105

Control of a corporation

Control of a corporation is defined as the ability to determine general corporate policy of the corporation 2.107, Box 2.2

Control of an NPI

Control of an NPI is defined as the ability to determine the general policy or program of the NPI Box 2.1

Corporations

Corporations are defined as entities that are capable of generating a profit or other financial gain for their owners, are recognized by law as separate legal entities from their owners, and are set up for purposes of engaging in market production 2.31

Costs of ownership transfer

Costs of ownership transfer are the costs associated with acquiring and disposing of nonfinancial assets (other than inventories) 8.6

Credit derivatives

Credit derivatives are financial derivatives whose primary purpose is to trade credit risk 7.218

Credit entry

A credit entry is a decrease in an asset, an increase in a liability, or an increase in net worth 3.55

Cultivated biological resources

Cultivated biological resources cover animal resources yielding repeat products and tree, crop, and plant resources yielding repeat products whose natural growth and regeneration are under the direct control, responsibility, and management of institutional units 7.59

Currency

Currency consists of notes and coins that are of fixed nominal values and are issued or authorized by the central bank or government 7.135

Currency union

A currency union is defined as a union to which two or more economies belong and that has a regional central decision-making body, commonly a currency union central bank, endowed with the legal authority to conduct a single monetary policy and issue the single currency of the union A5.34

Current account

The current account shows flows of goods and services, primary income, and secondary income between residents and nonresidents A7.78

Current grants

Current grants are current transfers receivable by government units, from other resident or nonresident government units or international organizations, and that do not meet the definition of a tax, subsidy, or a social contribution 5.103

Current transfers

Current transfers consist of all transfers that are not capital transfers 3.17

Custom union

A custom union is a form of regional arrangement whereby agreement exists on a common tariff (custom duties) vis-à-vis the other economies while the movement of goods within the arrangement tends to be duty-free A5.6

Databases

Databases consist of files of data organized in such a way as to permit resource-effective access and use of the data 7.70

Debit entry

A debit entry is an increase in an asset, a decrease in a liability, or a decrease in net worth 3.55

Debt assumption

Debt assumption is a trilateral agreement between a creditor, a former debtor, and a new debtor (typically a government unit), under which the new debtor assumes the former debtor’s outstanding liability to the creditor, and is liable for repayment of debt A3.26

Debt conversion (swap)

Debt conversion (swap) is an exchange of debt—typically at a discount—for a nondebt claim (such as equity), or for counterpart funds that can be used to finance a particular project or policy A3.20

Debt forgiveness (or debt cancellation)

Debt forgiveness (or debt cancellation) is defined as the voluntary cancellation of all or part of a debt obligation within a contractual arrangement between a creditor and a debtor A3.7

Debt payments on behalf of others

Rather than assuming a debt, a public sector unit may decide to repay that debt or make a specific payment on behalf of another institutional unit (original debtor), without a guarantee being called or the debt being taken over A3.30

Debt prepayment

Debt prepayment consists of a repurchase, or early payment, of debt at conditions that are agreed between the debtor and the creditor A3.24

Debt refinancing

Debt refinancing involves the replacement of an existing debt instrument or instruments, including any arrears, with a new debt instrument or instruments A3.14

Debt reorganization (also referred to as debt restructuring)

Debt reorganization (also referred to as debt restructuring) is defined as an arrangement involving both the creditor and the debtor (and sometimes third parties) that alters the terms established for servicing an existing debt A3.2

Debt rescheduling

Debt rescheduling is a bilateral arrangement between the debtor and the creditor that constitutes a formal postponement of debt service payments and the application of new and generally extended maturities A3.11

Debt securities

Debt securities are negotiable financial instruments serving as evidence of a debt 7.143

Debt write-offs or write-downs

Debt write-offs or write-downs refer to unilateral reductions by a creditor, of the amount owed to it A3.32

Deep-discount bonds

Deep-discount bonds are long-term securities that require periodic coupon payments during the life of the instrument, but the amount is substantially below the market rate of interest at issuance 7.147

Defeasance

With defeasance, a debtor unit removes liabilities from its balance sheet by pairing them with financial assets, the income and value of which are sufficient to ensure that all debt-service payments are met A3.37

Defined-benefit pension scheme

A defined-benefit pension scheme is one where the benefits payable to an employee on retirement are determined by the use of a formula, either alone or as a minimum amount payable A2.54

Defined-contribution pension scheme

A defined-contribution pension scheme is one where the benefits payable to an employee on retirement are defined exclusively in terms of the level of the funds built up from the contributions made over the employee’s working life and the increases in value that result from the investment of these funds by the manager of the scheme A2.55

Depository receipts

Depository receipts are securities that represent ownership of securities listed in other economies 7.167

Deposits

Deposits are all claims, represented by evidence of deposit, on the deposit-taking corporations (including the central bank) and, in some cases, general government or other institutional units 7.137

Distributable income

Distributable income of a corporation is equal to entrepreneurial income, plus all current transfers receivable, minus all current transfers payable and minus the adjustment for the change in pension entitlements relating to the pension scheme of that corporation 5.116

Dividends

Dividends are the distributed earnings allocated to government or public sector units, as the owners of equity, for placing funds at the disposal of corporations 5.111, 6.109

Domestic currency

Domestic currency is that which is legal tender in the economy and issued by the monetary authority for that economy—that is, either that of an individual economy or, in a currency union, that of the common currency area to which the economy belongs 3.134

Due-for-payment basis of recording

In the due-for-payment basis of recording, flows that give rise to cash payments are recorded at the latest times they can be paid without incurring additional charges or penalties or, if sooner, when the cash payment is made 3.66

Dwellings

Dwellings are buildings, or designated parts of buildings, that are used entirely or primarily as residences, including any associated structures, such as garages, and all permanent fixtures customarily installed in residences 7.44

Economic assets

Economic assets are resources over which ownership rights are enforced and from which economic benefits may flow to the owners 3.43, 4.43

Economic classification of expense

The economic classification of expense identifies the types of expense incurred according to the economic process involved 6.2

Economic flows

Economic flows reflect the creation, transformation, exchange, transfer, or extinction of economic value; they involve changes in the volume, composition, or value of a unit’s assets, liabilities, and net worth 3.4

Economic owner

The economic owner of resources such as goods and services, natural resources, financial assets, and liabilities is the institutional unit entitled to claim the benefits associated with the use of these resources by virtue of accepting the associated risks 3.39, 7.5

Economic territory

Economic territory, in its broadest sense, can be any geographic area or jurisdiction for which statistics are required 2.8

Economic unions

Economic unions are established by means of an intergovernmental legal agreement among sovereign countries or jurisdictions with the intention of fostering greater economic integration A5.19

Economically significant prices

Economically significant prices are prices that have a significant effect on the amounts that producers are willing to supply and on the amounts purchasers wish to buy 2.66

Economy

An economy consists of a set of resident institutional units 2.6

Embedded derivative

An embedded derivative arises when a derivative feature is inserted in a standard financial instrument and is inseparable from the instrument 7.148

Employee stock options

Employee stock options are options to buy the equity of a company, offered to employees of the company as a form of remuneration 7.221

Employers’ social contributions

Employers’ social contributions are social contributions payable by employers, to social security funds, employment-related pension funds, or other employment-related social insurance schemes to obtain entitlement to social benefits for their employees 6.19

Employment-related social benefits

Employment-related social benefits are social benefits payable in cash or in kind by government or public sector units to their employees or employees of other government or public sector units participating in the scheme (or to survivors and dependents of the employees who are eligible for such payments) 6.104

Enterprise

An enterprise is the view of an institutional unit as a producer of goods and services 2.25

Entertainment, literary, and artistic originals

Entertainment, literary, and artistic originals are original films, sound recordings, manuscripts, tapes, and models in which drama performances, radio and television programming, musical performances, sporting events, and literary and artistic output are recorded or embodied 7.72

Entitlement to future goods and services on an exclusive basis

Entitlement to future goods and services on an exclusive basis relates to the case where one party that has contracted to purchase goods or services at a fixed price at a time in the future is able to transfer the obligation of the second party to the contract to a third party 7.112

Environmental protection activities

Environmental protection activities are those activities whose primary purpose is the prevention, reduction, and elimination of pollution and other forms of degradation of the environment A7.107

Environmental tax

An environmental tax is a tax whose tax base is a physical unit (or a proxy of it) of something that has a proven, specific, negative impact on the environment A7.115

Equity

Equity consists of all instruments and records that acknowledge claims on the residual value of a corporation or quasi-corporation, after the claims of all creditors have been met 7.165

Establishment

An establishment is an enterprise, or part of an enterprise, that is situated in a single location and in which only a single productive activity is carried out or in which the principal productive activity accounts for most of the value added 2.24

Estate, inheritance, and gift taxes

Estate, inheritance, and gift taxes cover taxes on transfers of property at death and on gifts, including gifts made between living members of the same family to avoid, or minimize, the payment of inheritance taxes 5.51

Exchange

An exchange is a transaction in which one unit provides a good, service, asset, or labor to a second unit and receives a good, service, asset, or labor of the same value in return 3.9

Excises

Excises are taxes levied as a product-specific unit tax on a predefined limited range of goods 5.62

Expenditure

Expenditure is the sum of expense and the net investment in nonfinancial assets 4.21

Expense

Expense is a decrease in net worth resulting from a transaction 4.24, 6.1

Explicit contingent liabilities

Explicit contingent liabilities are defined as legal or contractual financial arrangements that give rise to conditional requirements to make payments of economic value 7.252

Extrabudgetary

General government entities with individual budgets not fully covered by the main (or general) budget are considered extrabudgetary 2.82

Face value

Face value of a debt instrument is the undiscounted amount of principal to be repaid at (or before) maturity 3.115, 7.242

Fair value

Fair value is a market-equivalent value defined as the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s-length transaction 3.115

Financial account of the balance of payments

The financial account of the balance of payments records transactions that involve financial assets and liabilities that take place between residents and nonresidents A7.93

Financial assets

Financial assets consist of financial claims and gold bullion held by monetary authorities as a reserve asset 3.48

Financial auxiliaries

Financial auxiliaries consist of financial corporations that are principally engaged in activities associated with transactions in financial assets and liabilities or with providing the regulatory context for these transactions but in circumstances that do not involve the auxiliary taking ownership of the financial assets and liabilities being transacted 2.54

Financial claim

A financial claim is an asset that typically entitles the owner of the asset (the creditor) to receive funds or other resources from another unit, under the terms of a liability 3.47, 7.15

Financial corporations

Financial corporations are corporations that are principally engaged in providing financial services, including insurance and pension fund services, to other institutional units 2.115

Financial corporations sector

The financial corporations sector consists of resident corporations that are principally engaged in providing financial services, including insurance and pension fund services, to other institutional units 2.53

Financial derivative contract

A financial derivative contract is a financial instrument that is linked to another specific financial instrument or indicator or commodity and through which specific financial risks (e.g., interest rate risk, foreign exchange risk, equity and commodity price risks, and credit risk) can be traded in their own right in financial markets 7.204

Financial intermediaries

Financial intermediaries are institutional units that incur liabilities on their own account for the purpose of acquiring financial assets by engaging in financial transactions on the market 2.54

Financial lease

A financial lease is a contract under which the lessor, as legal owner of an asset, conveys substantially all risks and rewards of ownership of the asset to the lessee 7.158, A4.10

Fines and penalties

Fines and penalties are compulsory current transfers imposed on units by courts of law or quasi-judicial bodies for violations of laws or administrative rules 5.142

Finished goods

Finished goods consist of goods that are the output of a production process, are still held by their producer, and are not expected to be processed further by the producer before being supplied to other units 7.83

Fiscal policy

Fiscal policy is the use of the level and composition of the general government and public sectors’ spending and revenue—and the related accumulation of government assets and liabilities—to achieve such goals as the stabilization of the economy, the reallocation of resources, and the redistribution of income 1.2

Fixed assets

Fixed assets are produced assets that are used repeatedly or continuously in production processes for more than one year 7.18, 7.35

Forfeits

Forfeits are amounts that were deposited with a general government unit pending a legal or administrative proceeding and that have been transferred to the general government unit as part of the resolution of that proceeding 5.142

Forward-type contract

A forward-type contract (forward) is an unconditional contract by which two counterparties agree to exchange a specified quantity of an underlying item (real or financial) at an agreed-on contract price (the strike price) on a specified date 7.212

Functional classification of expense

The functional classification of expense provides information on the purpose for which an expense was incurred 6.3

General government sector

The general government sector consists of resident institutional units that fulfill the functions of government as their primary activity 1.2, 2.58, 2.76

General taxes on goods and services

General taxes on goods and services are levied on the production, leasing, delivery, sale, purchase, or other change of ownership of a wide range of goods and the rendering of a wide range of services 5.57

Gold bullion

Gold bullion takes the form of coins, ingots, or bars with a purity of at least 995 parts per 1,000, including such gold held in allocated gold accounts 7.128

Gold swap

A gold swap involves an exchange of gold for foreign exchange deposits with an agreement that the transaction be reversed at an agreed future date at an agreed gold price 7.161

Goods and services account

The goods and services account shows transactions in items that are outcomes of production activities A7.78

Goods for resale

Goods for resale are goods acquired for the purpose of reselling or transferring to other units without being further processed 7.84

Government units

Government units are unique kinds of legal entities established by political processes that have legislative, judicial, or executive authority over other institutional units within a given area 2.38

Grants

Grants are transfers receivable by government units, from other resident or nonresident government units or international organizations, and that do not meet the definition of a tax, subsidy, or social contribution 5.5, 5.101

Gross debt at market value

Gross debt at market value means that debt securities are valued at market prices; insurance, pension, and standardized guarantee schemes are valued according to principles that are equivalent to market valuation; and all other debt instruments are valued at nominal prices, which are considered to be the best generally available proxies of their market prices 7.240

Gross debt at nominal value

Gross debt at nominal value means that debt securities are valued at their nominal values. The nominal value of a debt instrument at any moment in time is the amount that the debtor owes to the creditor 7.241

Gross value added or gross domestic product (GDP)

Gross value added is defined as the value of output minus the value of intermediate consumption A7.24

Historic cost

Historic cost, in its strict sense, reflects the cost at the time of acquisition, but sometimes it may also reflect occasional revaluations 3.115

Holding gain or loss

A holding gain or loss is a change in the monetary value of an asset or liability resulting from changes in the level and structure of prices, excluding qualitative or quantitative changes in the asset or liability 3.33, 10.1

Household

A household is a group of persons who share the same living accommodation, who pool some, or all, of their income and wealth, and who consume certain types of goods and services collectively, mainly housing and food 2.28

Households sector

The households sector consists of all resident households 2.60

Implicit contingent liabilities

Implicit contingent liabilities do not arise from a legal or contractual source but are recognized after a condition or event is realized 7.252

Imputed employers’ social contributions

Imputed employers’ social contributions are the amounts calculated and added to actual contributions, sufficient to exactly match the increases in employees’ social benefit entitlements 6.22

Index-linked securities

Index-linked securities are instruments for which either the coupon payments (interest) or the principal or both are linked to another item, such as a price index, an interest rate, or the price of a commodity 7.153

Individual consumption good or service

An individual consumption good or service is one that is acquired by a household and used to satisfy the needs or wants of members of that household 6.135

Information, computer, and telecommunications equipment

Information, computer, and telecommunications (ICT) equipment consists of devices using electronic controls and also the electronic components forming part of these devices 7.56

Institutional sector

An institutional sector groups together similar kinds of institutional units according to their economic objectives, functions, and behavior 2.50

Institutional unit

An institutional unit is 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 entities 2.22

Intangible nonproduced assets

Intangible nonproduced assets are constructs of society evidenced by legal or accounting actions 7.104

Intellectual property products

Intellectual property products are the result of research, development, investigation, or innovation leading to knowledge that the developers can market or use to their own benefit in production because use of the knowledge is restricted by means of legal or other protection 7.64

Interest

Interest is a form of investment income that is receivable by the owners of certain kinds of financial assets (SDRs, deposits, debt securities, loans, and other accounts receivable) for putting these financial assets and other resources at the disposal of another institutional unit 5.108

Intermediate consumption

Intermediate consumption consists of the goods and services consumed as inputs by a process of production, excluding fixed assets whose consumption is recorded as consumption of fixed capital A7.28

International investment position

The international investment position (IIP) is a statistical statement that shows at a point in time the value of: financial assets of residents of an economy that are claims on nonresidents and gold bullion held as reserve assets; and the liabilities of residents of an economy to nonresidents A7.96

Intersectoral consolidation

Intersectoral consolidation is consolidation between subsectors of the public sector to produce consolidated statistics for a particular grouping of public sector units 3.156

Intrasectoral consolidation

Intrasectoral consolidation is consolidation within a particular subsector to produce consolidated statistics for that particular subsector 3.155

Inventories

Inventories are produced assets consisting of goods and services, which came into existence in the current period or in an earlier period, and that are held for sale, use in production, or other use at a later date 7.18, 7.75

Investment funds

Investment funds are collective investment undertakings through which investors pool funds for investment in financial or nonfinancial assets 7.174

Joint operating arrangements

Joint operating arrangements can be in the form of jointly controlled operations or jointly controlled assets 2.143

Joint venture

A joint venture involves the establishment of a corporation, partnership, or other institutional unit in which, legally, each party has joint control over the activities of the joint venture unit 2.141

Land

Land consists of the ground, including the soil covering and any associated surface waters, over which ownership rights are enforced and from which economic benefits can be derived by their owners by holding or using them 7.92

Land improvements

Land improvements are the result of actions that lead to major improvements in the quantity, quality, or productivity of land, or prevent its deterioration 7.49

Legal or social entity

A legal or social entity is one whose existence is recognized by law or society independently of the persons or other entities that may own or control it 2.30

Legal owner

The legal owner of resources such as goods and services, natural resources, financial assets, and liabilities is the institutional unit entitled by law and sustainable under the law to claim the benefits associated with the resource 3.38, 7.5

Liability

A liability is established when one unit (the debtor) is obliged, under specific circumstances, to provide funds or other resources to another unit (the creditor) 3.45, 4.45, 7.15

Life insurance

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 (or in some cases another nominated person) with an agreed sum, or an annuity, at a given date or earlier if the policyholder dies beforehand A4.69

Life insurance and annuities entitlements

Life insurance and annuities entitlements are financial claims policyholders have against an enterprise offering life insurance or providing annuities 7.187

Listed shares

Listed shares are equity securities listed on an exchange and may be referred to as quoted shares. (Unlisted shares are equity securities not listed on an exchange) 7.168

Loan

A loan is a financial instrument that is created when a creditor lends funds directly to a debtor and receives a nonnegotiable document as evidence of the asset 7.157

Loans and other debt instrument guarantees

Loans and other debt instrument guarantees are commitments by one party to bear the risk of nonpayment by another party 7.259

Local government units

Local government units are institutional units whose fiscal, legislative, and executive authority extends over the smallest geographical areas distinguished for administrative and political purposes 2.95

Machinery and equipment

Machinery and equipment cover transport equipment, machinery for information, computer, and telecommunications (ICT) equipment, and machinery and equipment not elsewhere classified 7.52

Margins

Margins are payments of cash or deposits of collateral that cover actual or potential obligations incurred 7.219, 9.75

Market establishment

A market establishment is an establishment that charges economically significant prices 2.75

Market prices

Market prices refer to current exchange value—that is, the value at which goods, services, labor, or assets are exchanged or else could be exchanged for cash (currency or transferable deposits) 3.107

Market prices for transactions

Market prices for transactions are defined as amounts of money that willing buyers pay to acquire something from willing sellers; the exchanges are made between independent parties and on the basis of commercial considerations only, sometimes called “at arm’s length” 3.108

Market producer

A market producer is an institutional unit that provides all or most of its output to others at prices that are economically significant 2.65

Market regulatory agencies

Market regulatory agencies act on behalf of a government (or a regional organization with governments as its members) and influence the market for specific goods or services directly and/or indirectly 2.156

Marketable operating leases

Marketable operating leases are third-party property rights relating to fixed assets 7.108

Marketing assets

Marketing assets consist of items such as brand names, mastheads, trademarks, logos, and domain names 7.115

Materials and supplies

Materials and supplies consist of all goods held with the intention of using them as inputs to a production process 7.79

Maturity of a debt instrument

The maturity of a debt instrument refers to the time until the debt is extinguished according to the contract between the debtor and the creditor 7.266

Military inventories

Military inventories consist of single-use items, such as ammunition, missiles, rockets, bombs, etc., delivered by weapons or weapons systems 7.86

Mineral and energy resources

Mineral and energy resources consist of mineral and energy reserves located on or below the earth’s surface that are economically exploitable, given current technology and relative prices 7.97

Mineral exploration and evaluation

Mineral exploration and evaluation consists of the value of expenditure on exploration for petroleum and natural gas and for nonpetroleum deposits and subsequent evaluation of the discoveries made 7.68

Monetary gold

Monetary gold is gold to which the monetary authorities (or others who are subject to the effective control of the monetary authorities) have title and is held as a reserve asset 7.126

Monetary transaction

A monetary transaction is one in which one institutional unit makes a payment (receives a payment) or incurs a liability (acquires an asset) to (from) another institutional unit stated in units of currency 3.8

Monetary union

A monetary union exists where there is the presence of a single monetary policy among economies, established by an intergovernmental legal agreement A5.32

Motor vehicle taxes

Motor vehicle taxes include taxes on the use of motor vehicles or permission to use motor vehicles 5.80

Net debt

Net debt is calculated as gross debt minus financial assets corresponding to debt instruments 7.243

Net financial worth

The net financial worth of an institutional unit (or grouping of units) is the total value of its financial assets minus the total value of its liabilities 4.41, 7.235

Net investment in inventories (change in inventories)

Net investment in inventories (change in inventories) is measured by the value of the additions to inventories minus the value of withdrawals from inventories minus the value of any recurrent losses of goods held in inventories during the reporting period 8.44

Net premiums

Net premiums are defined as actual premiums plus premium supplements minus the insurance service charge payable by the policyholders A4.76

Net value added

Net value added is the value of output minus the values of both intermediate consumption and consumption of fixed capital A7.25

Net worth

The net worth of an institutional unit (or grouping of units) is the total value of its assets minus the total value of its liabilities 4.39, 7.1

Neutral holding gain

Neutral holding gains and losses over a period are the increase (decrease) in the value of an asset that would be required, in the absence of transactions and other changes in the volume of assets, to maintain command over the same amount of goods and services as at the beginning of the period 10.11, A7.71

Nominal value

Nominal value at any moment in time is the amount that the debtor owes to the creditor 3.115

Noncultivated biological resources

Noncultivated biological resources consist of animals, birds, fish, and plants that yield both once-only and repeat products over which ownership rights are enforced but for which natural growth or regeneration is not under the direct control, responsibility, and management of any institutional units 7.101

Nonfinancial assets

Nonfinancial assets are economic assets other than financial assets 3.50

Nonfinancial corporations

Nonfinancial corporations are corporations whose principal activity is the production of market goods or nonfinancial services 2.114

Nonfinancial corporations sector

The nonfinancial corporations sector consists of resident institutional units that are principally engaged in the production of market goods or nonfinancial services 2.52

Nonlife insurance

Nonlife insurance is an activity similar to life insurance except that it covers all other risks, accidents, sickness, fire, etc A4.70

Nonlife insurance technical reserves

Nonlife insurance technical reserves consist of (i) prepayments of net nonlife insurance premiums and (ii) reserves to meet outstanding nonlife insurance claims 7.183

Nonmarket producer

A nonmarket producer provides all or most of its output to others for free or at prices that are not economically significant 2.65

Nonmonetary transactions

Nonmonetary transactions are transactions that are not initially stated in units of currency 3.19

Nonparticipating preferred stocks or shares

Nonparticipating preferred stocks or shares are those that pay a fixed income but do not provide for participation in the distribution of the residual value of an incorporated enterprise on dissolution 7.150

Nonpension social benefits

Nonpension social benefits include payments made to individuals when they are temporarily unemployed, suffering from a medical condition, or suffering from an event that prevents them from working for a period A2.7

Nonperforming loans

Nonperforming loans are those for which (i) payments of principal and/or interest are past due by three months (90 days) or more; or (ii) interest payments equal to three months (90 days) interest or more have been capitalized (reinvested to the principal amount) or payment has been delayed by agreement; or (iii) evidence exists to reclassify a loan as nonperforming even in the absence of a 90-day past due payment, such as when the debtor files for bankruptcy 7.262

Nonprofit institutions

Nonprofit institutions (NPIs) are legal or social entities created for the purpose of producing or distributing goods and services, but they cannot be a source of income, profit, or other financial gain for the institutional units that establish, control, or finance them 2.36

Nonprofit institutions serving households

The nonprofit institutions serving households (NPISHs) sector consists of resident nonmarket nonprofit institutions (NPIs) that are not controlled by government 2.61

Notional resident unit

A notional resident unit is a unit identified for statistical purposes to be the resident owner of immovable assets legally owned by nonresidents 2.13

Off-market swap

An off-market swap is a swap contract that has a nonzero value at inception as a result of having reference rates priced differently from current market values—that is, “off-the-market” 7.162, A3.68

On-balance sheet securitization

On-balance sheet securitization involves debt securities backed by a future revenue stream generated by the assets. The assets remain on the balance sheet of the debt securities issuer (the original asset owner), typically as a separate portfolio. There is no securitization unit involved A3.66

One-off guarantees

One-off guarantees comprise those types of guarantees where the debt instrument is so particular that it is not possible to calculate the degree of risk associated with the debt with any degree of accuracy 7.256

On-lending

On-lending of borrowed funds refers to a resident institutional unit, A (usually central government), borrowing from another institutional unit(s), B (usually a nonresident unit), and then on-lending the proceeds from this borrowing to a third institutional unit(s), C (usually state or local governments, or a public corporation(s)), where it is understood that unit A obtains an effective financial claim on unit C A3.72

Operating leasing

Operating leasing is the activity of renting out produced assets under arrangements that provide use of a tangible asset to the lessee, but do not involve the transfer of the bulk of risks and rewards of ownership to the lessee A4.6

Option contract

In an option contract (option), the purchaser acquires from the seller a right to buy or sell (depending on whether the option is a call (buy) or a put (sell)) a specified underlying item at a strike price on or before a specified date 7.209

Original maturity

Original maturity is the period from the issue date until the final contractually scheduled payment date 7.267

Other accounts receivable/ payable

Other accounts receivable/payable consist of trade credit and advances and miscellaneous other items due to be paid or received 7.224

Other changes in the volume of assets

Other changes in the volume of assets are any changes in the value of an asset or liability that do not result from a transaction or a holding gain/loss 3.35, 10.1

Other current transfers not elsewhere classified

Other current transfers not elsewhere classified are gifts and transfers of a current nature (other than grants or subsidies) from individuals, private nonprofit institutions, nongovernmental foundations, or corporations 5.147

Other economic flows

Other economic flows are changes in the volume or value of assets or liabilities that do not result from transactions 3.31

Other employment-related social insurance schemes

Other employment-related social insurance schemes derive from an employer-employee relationship in the provision of pension entitlement and other social benefit to employees as part of the conditions of employment A2.40

Other equity

Other equity is equity that is not in the form of securities 7.169

Other intellectual property products

Other intellectual property products consist of new information and specialized knowledge not elsewhere classified 7.73

Other public financial corporations

Other public financial corporations comprise all resident financial corporations, except public deposit-taking corporations, controlled by general government units or other public corporations 2.121

Other recurrent taxes on property

Other recurrent taxes on property include all recurrent taxes on property other than immovable property or net wealth 5.53

Other revenue

Other revenue is all revenue receivable excluding taxes, social contributions, and grants 5.6, 5.106

Other social contributions

Other social contributions are actual and imputed contributions receivable by social insurance schemes operated by employers on behalf of their employees 5.98

Other structures

Other structures consist of all structures other than buildings 7.48

Other subsidies on production

Other subsidies on production are subsidies that enterprises receive as a consequence of engaging in production but that are not related to specific products 6.90

Other taxes

Other taxes cover revenue from taxes levied predominantly on a base or bases not elsewhere classified, and unidentified taxes 5.93

Other taxes on goods and services

Other taxes on goods and services includes taxes on the extraction of minerals, fossil fuels, and other exhaustible resources from deposits owned privately or by another government and any other taxes on goods or services not included in categories 1141 through 1145 5.82

Other taxes on use of goods and on permission to use goods or perform activities

Other taxes on use of goods and on permission to use goods or perform activities include business and professional licenses that consist of taxes paid by enterprises in order to obtain a license to carry on a particular kind of business or profession and taxes payable by individuals to perform certain activities 5.81

Own funds

Own funds are defined as the difference between total assets (at market values) and total liabilities excluding shares and other equity (at market value) 7.231

Partitioning

Partitioning records a transaction that is a single transaction from the perspective of the parties involved as two or more differently classified transactions 3.29

Pension entitlements

Pension entitlements are financial claims that existing and future pensioners hold against either their employer or a fund designated by the employer, to pay pensions earned as part of a compensation agreement between the employer and employee 7.190

Pensions and other retirement benefits

Pensions and other retirement benefits are payable when individuals cease employment upon retirement A2.6

Permit to undertake a specific activity

A permit to undertake a specific activity is an asset for the holder when: (i) the permits are limited in number and so allow the holders to earn monopoly profits, (ii) the monopoly profits do not come from the use of an asset belonging to the permit-issuer, and (iii) a permit holder is able both legally and practically to sell the permit to a third party 7.110

Permits to use natural resources

Permits to use natural resources are third-party property rights relating to natural resources 7.109

Premium earned

The premium earned is the part of the actual premium that relates to coverage provided in the reporting period A4.75

Premiums, fees, and claims payable related to nonlife insurance and standardized guarantee schemes

Premiums, fees, and claims payable related to nonlife insurance and standardized guarantee schemes include nonlife insurance premiums payable to insurance schemes/corporations to secure entitlement to insurance against risks, claims payable by insurance schemes to beneficiaries, and fees payable to obtain standardized guarantees 6.125

Premiums, fees, and claims receivable related to nonlife insurance and standardized guarantee schemes

Premiums, fees, and claims receivable related to nonlife insurance and standardized guarantee schemes comprise nonlife insurance premiums receivable by insurance schemes to provide entitlement to insurance against risks; claims receivable from insurance schemes by beneficiaries; and fees receivable for the issuance of standardized guarantees 5.149

Premiums, fees, and current claims payable

Premiums, fees, and current claims payable comprise nonlife insurance premiums expense and fees payable for the issuance of standardized guarantees, as well as insurance settlement expense that is not exceptional 6.125

Premiums, fees, and current claims receivable

Premiums, fees, and current claims receivable comprise nonlife insurance premium revenue and fees receivable for the issuance of standardized guarantees, as well as insurance settlement revenue that is not exceptional 5.150

Present value

Present value is the value today of a future payment or stream of payments discounted at some appropriate compounded interest rate 7.33

Primary income account

The primary income account shows primary income flows between resident and nonresident institutional units A7.82

Production measure of gross domestic product

The production measure of gross domestic product is defined as gross value added plus any taxes minus subsidies on products not already included in the value of output A7.24

Profits of fiscal monopolies

Profits of fiscal monopolies cover that part of the profits of fiscal monopolies that is transferred to the government. Fiscal monopolies are public corporations, public quasi-corporations, or government-owned unincorporated enterprises that have been granted a legal monopoly over the production or distribution of a particular kind of good or service in order to raise revenue and not in order to further the interests of public economic or social policy 5.63

Property expense

Property expense is the expense payable to the owners of financial assets or natural resources when they put them at the disposal of another unit 6.108

Property expense for investment income disbursements

Property expense for investment income disbursements includes property income attributed to insurance policyholders, pension entitlements, and holders of investment fund shares 6.113

Property income

Property income is the revenue receivable in return for putting financial assets and natural resources at the disposal of another unit 5.107

Property income from investment income disbursements

Property income from investment income disbursements includes property income attributed to insurance policyholders and holders of investment fund shares 5.120

Provident funds

Provident funds are compulsory saving schemes that maintain the integrity of the contributions for individual participants 2.148

Public corporations subsector

The public corporations subsector consists of all resident corporations controlled by government units or by other public corporations 2.104

Public deposit-taking corporations

Public deposit-taking corporations are financial corporations controlled by general government units or other public corporations whose principal activity is financial intermediation and who have liabilities in the form of deposits or financial instruments that are close substitutes for deposits 2.117

Public deposit-taking corporations except the central bank

Public deposit-taking corporations except the central bank consist of all resident depository corporations, except the central bank, that are controlled by general government units or other public corporations 2.120

Public financial corporations subsector

All resident financial corporations controlled by general government units or other public corporations are part of the public financial corporations subsector 2.115

Public monuments

Public monuments are identifiable because of particular historical, national, regional, local, religious, or symbolic significance 7.42

Public nonfinancial corporations subsector

All resident nonfinancial corporations controlled by general government units or other public corporations are part of the public nonfinancial corporations subsector 2.114

Public-private partnerships (PPPs)

Public-private partnerships (PPPs) are long-term contracts between two units, whereby one unit acquires or builds an asset or set of assets, operates it for a period, and then hands the asset over to a second unit A4.58

Public sector

The public sector consists of all resident institutional units controlled directly, or indirectly, by resident government units—that is, all units of the general government sector and resident public corporations 1.2, 2.63

Quasi-corporation

A quasi-corporation is (i) either an unincorporated enterprise owned by a resident institutional unit that has sufficient information to compile a complete set of accounts and is operated as if it were a separate corporation and whose relationship to its owner is effectively that of a corporation to its shareholders, or (ii) an unincorporated enterprise owned by a nonresident institutional unit that is deemed to be a resident institutional unit because it engages in a significant amount of production in the economic territory over a long or indefinite period of time 2.33

Quasi-fiscal operations

Quasi-fiscal operations are government operations carried out by institutional units other than general government units 2.4

Real holding gain

A real holding gain is defined as the value accruing to an asset as a result of a change in its price relative to the prices of goods and services in general 10.11

Realized holding gain

A holding gain is realized when an asset is sold, redeemed, used, or otherwise disposed of, or a liability incorporating a holding gain or loss is repaid 10.6

Reassignment

Reassignment records a transaction arranged by a third party on behalf of others as taking place directly by the two principal parties involved 3.30

Recurrent taxes on immovable property

Recurrent taxes on immovable property cover taxes levied regularly on the use or ownership of immovable property, which includes land, buildings, and other structures 5.49

Recurrent taxes on net wealth

Recurrent taxes on net wealth cover taxes levied regularly on net wealth 5.50

Regional arrangements

Regional arrangements involve coordination of institutional units in several countries for a particular monetary or economic purpose A5.1

Reinvested earnings

Reinvested earnings are the direct investor’s share of the retained earnings of the direct investment enterprise 5.134, 6.121

Remaining maturity or residual maturity

Remaining maturity or residual maturity is the period from the reference date (balance sheet date) until the final contractually scheduled payment date 7.267

Rent (expense)

Rent is the expense payable to the owners of a natural resource (the lessor or landlord) for putting the natural resource at the disposal of another institutional unit (a lessee or tenant) for use of the natural resource in production 6.120

Rent (revenue)

Rent is the revenue receivable by the owners of a natural resource (the lessor or landlord) for putting the natural resource at the disposal of another institutional unit (a lessee or tenant) for use of the natural resource in production 5.122

Rerouting

Rerouting records a transaction as taking place through channels that differ from the actual ones, or as taking place in an economic sense when no actual transactions take place 3.28

Research and development

Research and development consists of the value of expenditure on creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture, and society, and use of this stock of knowledge to devise new applications 7.66

Residence

The residence of each institutional unit is the economic territory with which it has the strongest connection (i.e., its center of predominant economic interest) 2.7

Resource lease

A resource lease is an agreement whereby the legal owner of a natural resource that macroeconomic statistics treat as having an infinite life makes it available to a lessee in return for a regular payment recorded as property income and described as rent A4.16

Resource management activities

Resource management activities are those activities whose primary purpose is preserving and maintaining the stock of natural resources and hence safeguarding against depletion A7.108

Restructuring agencies

Restructuring agencies are entities set up to sell corporations and other assets, and for the reorganization of companies 2.129

Revenue

Revenue is an increase in net worth resulting from a transaction 5.1

Sales of goods and services

Sales of goods and services consist of the sales by market establishments, administrative fees charged for services, incidental sales by nonmarket establishments, and imputed sales of goods and services 5.136

Sales taxes

Sales taxes are all general taxes levied on sales at one stage only, whether at manufacturing or production stages or on wholesale or retail trade 5.59

Securities

Securities are debt and equity instruments that have the characteristic feature of negotiability 7.119

Securities lending

Securities lending is an arrangement whereby a security holder transfers securities to another party (security taker), subject to the stipulation that the same or similar securities be returned on a specified date or on demand 7.160

Securities repurchase agreement (repo)

A securities repurchase agreement (repo) is an arrangement involving the sale of securities for cash, at a specified price, with a commitment to repurchase the same or similar securities at a fixed price either on a specified future date (often one or a few days hence) or with an open maturity 7.159

Securitization

Securitization occurs when a unit, named the originator, conveys the ownership rights over financial or nonfinancial assets, or the right to receive specific future flows, to another unit, named the securitization unit. In return, the securitization unit pays an amount to the originator from its own source of financing. The securitization unit obtains its own financing by issuing debt securities using the assets or rights to future flows transferred by the originator as collateral A3.59

Sinking fund

A sinking fund is a separate account, which may be an institutional unit, made up of segregated contributions provided by the unit(s) that makes use of the fund (the “parent” unit) for the gradual redemption of the parent unit’s debt. A sinking fund may also be established to provide for major repairs or replacements 2.144

Social assistance

Social assistance provides social protection benefits to all persons who are in need without any formal requirement to participate as evidenced by the payment of contributions A2.25

Social assistance benefits

Social assistance benefits are transfers payable in cash or in kind to households to meet the same needs as social insurance benefits but are not made under a social insurance scheme 6.101, A2.25

Social benefits

Social benefits are current transfers receivable by households intended to provide for the needs that arise from social risks A2.4

Social contributions

Social contributions are actual, or imputed, revenue receivable by social insurance schemes to make provision for social insurance benefits payable 5.4, 5.94, A2.4

Social insurance contribution

A social insurance contribution is the amount payable to a social insurance scheme in order for a designated beneficiary to be entitled to receive the social benefits covered by the scheme A2.31

Social insurance schemes

Social insurance schemes provide social protection and require formal participation by the beneficiaries, evidenced by the payment of contributions (actual or imputed) 2.101, A2.30

Social protection

Social protection is the systematic intervention intended to relieve households and individuals of the burden of a defined set of social risks A2.1

Social risks

Social risks are events or circumstances that may adversely affect the welfare of the households concerned either by imposing additional demands on their resources or by reducing their income 2.46, 6.96, A2.1

Social security benefits

Social security benefits are social benefits expense payable in cash or in kind to households by social security schemes 6.99

Social security contributions

Social security contributions are actual revenue receivable by social security schemes organized and operated by government units, for the benefit of the contributors to the scheme 5.97

Social security fund

A social security fund is a particular kind of government unit that is devoted to the operation of one or more social security schemes 2.100, A2.34

Social security schemes

Social security schemes are social insurance schemes covering the community as a whole, or large sections of the community, and are imposed and controlled by government units 2.101, A2.33

Sovereign wealth funds

Created and owned by the general government for macroeconomic purposes, sovereign wealth funds hold, manage, or administer assets to achieve financial objectives, and employ a set of investment strategies that include investing in foreign financial assets 2.152

Special Drawing Rights

Special Drawing Rights (SDRs) are international reserve assets created by the International Monetary Fund (IMF) and allocated to its members to supplement reserve assets 7.131

Standardized guarantees

Standardized guarantees are those kinds of guarantees that are issued in large numbers, usually for fairly small amounts, along identical lines 7.201, A4.71

State governments

State governments consist of institutional units exercising some of the functions of government at a level below that of central government and above that of the government institutional units existing at a local level 2.90

Stock position

A stock position is the total holdings of assets and/or liabilities at a point in time 3.36

Stripped securities

Stripped securities are securities that have been transformed from a principal amount with coupon payments into a series of zero-coupon bonds, with a range of maturities matching the coupon payment date(s) and the redemption date of the principal amount(s) 7.152

Subsidies

Subsidies are current unrequited transfers that government units make to enterprises on the basis of the level of their production activities or the quantities or values of the goods or services they produce, sell, export, or import 5.146, 6.84

Subsidy on products

A subsidy on products is a subsidy payable per unit of a good or service 6.89

Swap contract

A swap contract involves the counterparties exchanging, in accordance with prearranged terms, cash flows based on the reference prices of the underlying items 7.162, 7.215

Synthetic securitization

Synthetic securitization involves transfer of the credit risk related to a pool of assets without transfer of the assets themselves, either through a securitization unit or through the direct issuing of debt securities by the original asset owner A3.65

Tax credit

A tax credit is an amount subtracted directly from the tax liability due by the beneficiary household or corporation after the liability has been computed 5.29

Tax expenditures

Tax expenditures are concessions or exemptions from a “normal” tax structure that reduce government revenue collection 5.28

Tax refunds

Tax refunds are adjustments for overestimation of taxes payable or the return of amounts to taxpayers due to overpayments 5.27

Tax relief measures

Tax relief measures are incentives that reduce the amount of tax owed by an institutional unit 5.28

Taxes

Taxes are compulsory, unrequited amounts receivable by government units from institutional units 5.2, 5.23

Taxes on capital gains

Taxes on capital gains consist of taxes on the capital gains (including capital gain distributions of investment funds) of persons or corporations that become payable during the current reporting period, irrespective of the periods over which the gains have accrued 5.41

Taxes on financial and capital transactions

Taxes on financial and capital transactions are taxes levied on the change in ownership of property, except those classified as gifts, inheritance, or estate transactions 5.61

Taxes on goods and services

Taxes on goods and services are taxes that become payable as a result of the production, sale, transfer, leasing, or delivery of goods and rendering of services, or as a result of their use for own consumption, or own capital formation 5.55

Taxes on income, profits, and capital gains

Taxes on income, profits, and capital gains consist of taxes assessed on the actual or presumed incomes of institutional units 5.41

Taxes on individual or household income

Taxes on individual or household income consist of personal income taxes, including those deducted by employers (pay-as-you-earn taxes), and surtaxes 5.41

Taxes on international trade and transactions

Taxes on international trade and transactions are taxes that become payable when goods cross the national or customs frontiers of the economic territory, or when transactions in services exchange between residents and nonresidents 5.83

Taxes on payroll or workforce

Taxes on payroll or workforce are taxes payable by enterprises assessed either as a proportion of the wages and salaries paid or as a fixed amount per person employed 5.45

Taxes on property

Taxes on property are taxes payable on the use, ownership, or transfer of wealth 5.46

Taxes on specific services

Taxes on specific services are levied on payments for specific services 5.69

Taxes on the income of corporations

Taxes on the income of corporations consist of corporate income taxes, corporate profits taxes, corporate surtaxes, etc. 5.41

Taxes on use of goods and on permission to use goods or perform activities

Taxes on use of goods and on permission to use goods or perform activities are fees levied for the issuance of a license or permit that are not commensurate with the cost of the control function of government 5.72

Taxes on winnings from lotteries or gambling

Taxes on winnings from lotteries or gambling are taxes payable on the amounts receivable by winners 5.41

Total gross debt

Total gross debt—often referred to as “total debt” or “total debt liabilities”—consists of all liabilities that are debt instruments. A debt instrument is defined as a financial claim that requires payment(s) of interest and/or principal by the debtor to the creditor at a date, or dates, in the future 7.236

Transaction

A transaction is an economic flow that is an interaction between institutional units by mutual agreement or through the operation of the law, or an action within an institutional unit that is analytically useful to treat like a transaction, often because the unit is operating in two different capacities 3.5

Transfer

A transfer is a transaction in which one institutional unit provides a good, service, or asset to another unit without receiving from the latter any good, service, or asset in return as a direct counterpart 3.10

Transfers not elsewhere classified (payable)

Transfers not elsewhere classified payable include a number of gifts and transfers to individuals, private nonprofit institutions, nongovernmental foundations, corporations, or government units that are not included in other categories of transfers, and serving quite different purposes 6.122

Transfers not elsewhere classified (receivable)

Transfers not elsewhere classified receivable include subsidies, as well as gifts and transfers from individuals, private nonprofit institutions, nongovernmental foundations, corporations, or sources other than governments and international organizations 5.145

Transport equipment

Transport equipment consists of equipment for moving people and objects 7.54

True-sale securitization

True-sale securitization involves debt securities issued by a securitization unit where the underlying assets have been transferred from the original asset owner’s (i.e., the originator’s) balance sheet to that of the securitization unit A3.62

Turnover and other general taxes on goods and services

Turnover and other general taxes on goods and services are multistage cumulative taxes and taxes where elements of consumption taxes are combined with multistage taxes 5.60

Unallocated gold accounts

Unallocated gold accounts represent a claim against the account custodian to deliver gold 7.127

Unearned premium

The unearned premium is the amount of the actual premium received that relates to the period past the reporting period A4.75

Unrealized holding gain

An unrealized holding gain is one accruing on an asset that is still owned or a liability that is still outstanding at the end of the reporting period 10.6

Valuables

Valuables are produced assets of considerable value that are not used primarily for purposes of production or consumption, but are held primarily as stores of value over time 7.18, 7.87

Valuation of stock positions

Stock positions should be valued at market value—that is, as if they were acquired in market transactions on the balance sheet reporting date (reference date) 3.113

Value of goodwill and marketing assets

The value of goodwill and marketing assets is the difference between the value paid for an enterprise as a going concern and the sum of its assets minus the sum of its liabilities, each item of which has been separately identified and valued 7.116

Value-added taxes

Value-added taxes (VAT) are taxes on goods or services collected in stages by enterprises but ultimately charged in full to the final purchasers 5.58

Wages and salaries

Wages and salaries are compensation of employees payable in cash and/or in kind, except for social contributions payable by employers 6.12

Wages and salaries in cash

Wages and salaries in cash are the amounts payable in cash, or any other financial instruments used as means of payments, to employees in return for work performed 6.13

Wages and salaries in kind

Wages and salaries in kind are amounts payable in the form of goods, services, interest forgone, and shares issued to employees in return for work performed 6.17

Water resources

Water resources consist of surface and groundwater resources used for extraction to the extent that their scarcity leads to the enforcement of ownership or use rights, market valuation, and some measure of economic control 7.102

Weapons systems

Weapons systems include vehicles and other equipment such as warships, submarines, military aircraft, tanks, missile carriers and launchers, etc. 7.74

Withdrawals of income from quasi-corporations

Withdrawals of income from quasi-corporations consist of that part of distributable income that the owner withdraws from the quasi-corporation 5.118

Work in progress

Work in progress consists of goods and services that are not yet sufficiently processed to be in a state in which it is normally supplied to other institutional units 7.80

Written-down replacement cost

Written-down replacement cost is the current acquisition price of an equivalent new asset minus the accumulated consumption of fixed capital, amortization, or depletion 3.115

Zero-coupon bonds

Zero-coupon bonds are long-term securities that do not involve periodic payments during the life of the bond 7.147

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