Appendix I. Action Plan 2019: Progress to Date

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Appendix II. Methodological Issues

1. For many financial instruments, changes in balance sheet positions can be used to estimate transactions. However, where there are foreign currency instruments, or instruments where there are price and/or volume changes (notably for securities or equities), these effects must be removed to ensure that transactions are as accurate as possible. Reconciling the balancing item of sectoral capital accounts compiled by NBS (when these data will be available) will also improve the quality of the data.

For example, assume a deposit of 200 euros hold by household at a bank, an exchange rate of 0.05 euro for 1MDL at the beginning of the year and 0.04 euro for 1 MDL at the end of the year and no transaction during the period. In MDL at the time of opening balance sheet would be reported 4000 MDL; and at the time of closing balance sheet it would be reported 5000 MDL; the difference of 1000 MDL should be recorded in the revaluation account as the change was not due to a transaction or other change in volume. If, however, there were a transaction of 50 euros during the period, the closing balance sheet in MDL would be 6250. The difference between the opening and closing balance sheet is 2250 MDL. Two components explain the variation: the first one is the transaction and the second one is the revaluation. To determine how much is due to the transaction and how much is due to the depreciation of the MDL, the transaction should be converted to MDL using the exchange rate when the transaction occurs, if known, or alternatively the average exchange rate for the period. In this case, using the latter approach results in a transaction of 1111 MDL (50 euros / average (0.05;0.04)) and a revaluation of 2250 – 1111 = 1139 MDL.

2. The time-adjusted Method can be used to estimate accrual values when the data are recorded on a cash basis. This method is labelled ‘time-adjusted cash’. It consists of applying to the series of the receipts or the payment a simple time lag based on compilers’ knowledge. Payments due are recorded as payables; the part of payment not yet paid is also recorded as a liability (i.e., accounts payable) in the financial accounts and balance sheets. Receipts d ue are recorded as receivables; the part not yet received is also recorded as an asset in the financial accounts and balance sheets. Interest, taxes, excises and social contributions are affected by this issue. In the example below, the VAT is paid with a time lag of one month. Using the ‘time-adjusted cash’ approach, the receipts are recorded one month earlier for the whole series. The difference (100) between the ‘time-adjusted cash’ (18300) and the cash (18200), is recorded in the ‘other accounts receivable’.

Appendix Table 1.

Time Adjusted Cash Method

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3. Provisions for loan losses for a given period should be re-added to the closing financial position before computing the value of FABS. The transaction will be the difference between the opening balance sheet and the closing balance sheet after adding back the provisions to the closing position and taking account of any foreign exchange valuation changes.

4. For example, in the financial statement of a corporation, it is reported the stock of loans less provisions at the beginning of the period of 5220 MDL (where the provision is 20) and at the end of the period 5405 (where the provision is 25). The provisions at the beginning and at the end of the period should be added respectively to the loans at the beginning and at the end of the period to derive the flows from the transaction. In the example, the transaction to be recorded is (5405 + 25) – (5220 + 20) = 190 MDL.

5. The writing-off (as opposed to its forgiveness or debt cancellation) of a loan is not considered a transaction as it is not implemented by mutual agreement. It is not recorded in either the capital account or the financial account; for example, in the case of bankruptcy. It will be recorded in the other changes in the volume of assets accounts, usually only when the creditor removes the asset from its books. In the case of debt cancellation, there is a bilateral agreement between a creditor and a debtor to cancel (or to ‘forgive’) part or all of a liability owed by the debtor to the creditor. The debt cancellation implies a transaction in the capital account as a transfer of capital (D.99) and it will have a negative impact for the unit lending and a positive impact on the unit borrowing.

6. For example, assume a corporation with a credit of 200 to a bank goes bankrupt. In the financial balance sheet of the bank, the position of the loans is deleted and there are no flows recorded in financial accounts. It has no impact on net lending of the banking sector. However, if, the bank and the corporation decide by a mutual agreement to write off the loan, it results in a financial transaction for both entities (a decrease in financial assets of the bank and a decrease in financial liabilities of the corporation) with a counterpart as a transfer of capital (D.99). In this case it does affect the net borrowing and net lending positions of the two entities. The net worth of the bank will be negatively impacted, and the net worth of the corporation will be positively impacted.


Consolidated data are useful for certain types of analysis, such as for monetary policy purposes or the impact of government activities as a whole on the rest of the economy.


1SR and 2SR are standardized report forms. The former is for central bank assets and financial liabilities while the latter is for the deposit-taking corporations.


Provisions for loans are treated as bookkeeping entries in enterprise accounts, but are not recognized in national accounts


NBCOs are active in providing lending and/or financial leasing, savings and credit services.


A close corporation is a company whose shares are held by individuals who are closely associated with the business. Their securities are not publicly traded.


Value of unlisted shares = market price of similar listed shares × (own funds of unlisted corporations)/(own funds of similar listed corp orations).


Deposits or loans of social security funds are offset within central government sector at the end of the years. For quarterly estimates, social security has only two instruments: deposits and loans.

Republic of Moldova: Technical Assistance Report-Report on Sectoral Accounts Mission
Author: International Monetary Fund. Statistics Dept.