COMMISSION OF THE EUROPEAN COMMUNITIES 
COM{94) 5 33 final 
Brussels, 16.12.199 4 
9 4/0314 -CVS) 
Proposai for a 
COUNCIL REGULATION 
on the European System of National and Regional Account 
in the European Community 
(presented by the Commission 

EXPLANATORY MEMORANDUM 
The European System of Accounts (ESA) is the reference framework for drawing up accounts for 
Community requirements, since its methodology is designed to produce results which are 
comparable between Member States. 
1. The aim of the draft Regulation is to establish: 
a methodology, known as the European System of Accounts (ESA), comprising common 
standards, definitions, classifications and accounting rules to be used in drawing up 
accounts and tables on a comparable basis for European Community requirements; 
a schedule for transmitting the accounts and tables drawn up on the basis of the ESA to 
the Commission on specific dates. 
2. Responsibility for the project is shared with the Member States: the aim is Jo harmonize the 
concepts and nomenclatures for data collection and to present the information needed by the 
main users: Community institutions, national, regional and local government, international 
organizations, economic operators and research institutes. The methods used to collect the data 
and the collection itself are the province of the Member States. 
3. All Member States have an interest in the system. They already collect certain data for 
accounts purposes. The new system will mean collecting additional information (only a 
limited range for most Member States), plus changes in the concepts and classifications used. 
The proposal for a Regulation observes the international recommendations on the subject. It 
takes account of the need for statistical definitions to be adaptable to socio-economic and 
technical changes affecting the production system. It sets the standard for the quality of 
observation and analysis needed to meet economic policy requirements. 
4. Only a Community measure of this nature is capable of establishing the reference framework 
for common standards, definitions, classifications and accounting rules and drawing up the list 
of necessary data. Member States' own accounts are then drawn up by the Member States 
themselves according to the system fixed at Community level. 
5. One consequence of this legislative act will be an improvement in Community statistics 
relevant to national and regional accounts, and in their consistency. The improved 
comparability will help meet the challenge of managing Economic and Monetary Union and 
enable national accounts aggregates to be used for Community administrative, particularly 
budget, calculations. Without such a legislative act, Community economic and monetary 
policy would have to be formulated, implemented, monitored and evaluated on the basis of 
incomplete, non-harmonized and outdated statistics, with all the risks that would imply. 
6. A legislative act - here a Council Regulation - enables the reference framework (concepts, 
classifications, list of necessary information) to be determined without having to concern itself 
with the details of organizing and the methods of drawing up accounts. 
7. A Council Regulation is needed to establish the reference framework, but the way in which the 
accounts are drawn up and national statistical systems adapted will be for the Member States to 
decide. 
-VK. 
Draft proposal for a Council Regulation 
on the European System of National and Regional Accounts 
in the European Community 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular Article 213 
thereof, 
Having regard to the draft Regulation submitted by the Commission, 
Having regard to the opinion of the European Parliament, 
Having regard to the opinion of the European Monetary Institute, 
Having regard to the opinion of the Economic and Social Committee, 
Having regard to the opinion of the Committee of the Regions, 
Whereas the implementation and supervision of Economic and Monetary Union require 
comparable, up-to-date and reliable information on the structure of and developments in the 
economic situation of each country and/or region; 
Whereas economic accounts are a basic tool for analysing the economic situation of a country 
and/or region on condition that they are drawn up on the basis of strict principles that are not open 
to differing interpretations; 
Whereas the Protocol on the excessive deficit procedure annexed to the Treaty on European Union 
refers to the European System of Integrated Economic Accounts and whereas Regulation (EC) No 
3605/93 on the application of the Protocol on the excessive deficit procedure states in Article 7 
that the revision of this system shall be decided by the Council of the European Union; 
Whereas Council Directive 89/130/EEC, Euratom on the harmonization of the compilation of 
gross national product at market prices (GNPmp) stipulates that GNPmp can be comparable in 
concept only if the definitions and accounting rules of the European System of Integrated Economic 
Accounts are applied, and whereas Regulation (EEC, Euratom) No 1553/89 on the definitive 
uniform arrangements for the collection of own resources accruing from value added tax provides 
that, in order to calculate the weighted average rate of VAT, the breakdown of transactions liable to 
tax shall be effected by means of national accounts, prepared in accordance with the European 
System of Integrated Economic Accounts; 
Whereas Council Regulations (EEC) Nos 2052/884 and 2081/935 on the tasks of the Structural 
Funds stipulate that the eligibility of regions for assistance under Objectives 1 and 5(b) of the 
Structural Funds shall be assessed mainly by comparing their gross domestic product (GDP) per 
inhabitant with that of the Community as a whole; 
Whereas the European System of Integrated Economic Accounts must be revised to meet the 
requirements of Economic and Monetary Union and will have to be used for compiling the national 
and regional accounts provided for by Community legislation; 
2 OJ No L 332, 31.12.1993 
3 OJ No L 49, 21.2.1989 
4 OJ No L 155, 7.6.1989 
5 OJ No L 185, 15.7.1988 
OJNoL 193,31.7.1993 
vÎQv-
Whereas the revised system, entitled "European System of Accounts (ESA)" is the reference 
framework of common standards, definitions, classifications and accounting rules for drawing up 
the accounts of the Member States for the requirements of the European Community, so that results 
that are comparable between the Member States can be obtained; 
Whereas the results of the accounts and tables of all the member countries drawn up according to 
the revised ESA (ESA 95) must be made available by the Commission to users on precise dates, 
particularly with regard to monitoring the convergence of the Member States' economic policies; 
Whereas these dates must be laid down by broad category of accounts and tables, and whereas only 
the information essential to the requirements of the European Community must be processed and 
communicated to the Commission on precise dates; 
Whereas in view of the volume and size of the accounts concerned, the level of detail and the 
geographical coverage, as well as the situation in this respect in the Member States, certain extra 
periods of time for forwarding data shall be granted exceptionally and temporarily to Member States 
which objectively are unable to meet the deadlines laid down by the Regulation; 
Whereas solving the problem of breaking down indirectly measured financial intermediation 
services (IMFIS) would make a substantial qualitative improvement to the methodology of the ESA 
95, and whereas the Member States and the Commission undertake to find a satisfactory solution by 
31 December 1996 so that it can be implemented for the first transmission of data in 1998; 
Whereas, according to the principle of subsidiarity, the creation of common statistical standards is a 
task that can only be dealt with effectively at Community level and whereas such standards will be 
implemented in each Member State under the aegis of the organizations and institutions responsible 
for compiling official statistics; 
Whereas the European Community cooperates with third countries to mutual advantage, particularly 
those in the European Economic Area (EEA); 
Whereas the United Nations Statistical Commission adopted in February 1993 the new System of 
National Accounts (SNA) so that the results in all countries should be internationally comparable; 
Whereas the ESA, which constitutes a version of the SNA adapted to the structures of the Member 
States' economies, must adhere to the layout of the SNA so that the Community's data are 
comparable with those compiled by its main international partners; 
Whereas it is necessary to set up a procedure to adapt and update the provisions of this Regulation 
in cooperation with the Statistical Programme Committee, established by Council Decision 
89/382/EEC, Euratom;6 
Whereas the Statistical Programme Committee and the Committee on Monetary, Financial and 
Balance of Payments Statistics (CMFB), establishe 
declared themselves in favour of the draft Regulation, 7 
Balance of Payments Statistics (CMFB), established by Council Decision 91/115/EEC, have 
^ OJ No L 181,28.6.1? 
OJ NoL 59,6.3.1991 
-3-c^ 
HAS ADOPTED THIS REGULATION: 
Article 1 
Purpose 
1. The purpose of this Regulation is to adapt the European System of Integrated Economic 
Accounts by providing for: 
(a) a methodology annexed to this Regulation on common standards, definitions, 
classifications and accounting rules, hereinafter referred to as the European System 
of Accounts 95 (ESA 95), intended to be used for compiling accounts and tables on 
comparable bases for the purposes of the European Community and 
(b) a programme, which appears in Article 3, for transmitting for Community purposes 
on precise dates the accounts and tables compiled according to the ESA 95. 
2. This Regulation does not oblige any Member State to use the ESA 95 in compiling accounts 
for its own purposes. 
Article 2 
Methodology 
The methodology of the ESA 95 referred to in Article 1(a) of this Regulation is given in Annex A. 
Amendments to the ESA 95 methodology which are intended to clarify and improve its content 
shall be adopted by Commission Decision in accordance with the procedure provided for in Article 
5, provided that they do not change its underlying concepts, do not require additional resources for 
their implementation and do not cause an increase in own resources in the Community. 
The procedure in Article 5 shall also be applied when implementing the system for breaking down 
the indirectly measured financial intermediation services (IMFIS) described in Annex I of the 
methodology. The Commission Decision shall take effect not later than 31 December 1996. 
Article 3 
Transmission to the Commission of the European Communities 
1. The Member States shall transmit to the Commission (Eurostat) the accounts and tables in 
Annex B by the deadlines specified for each table. 
The extra periods of time granted to certain Member States in accordance with Annex B 
shall expire not later than 1 January 2005. 
The Commission, after consulting the SPC, shall report to the Council of the European 
Union not later than 1 July 2003 on the application of the extra periods of time granted in 
order to verify whether they are still justified. 
-*K 
Not later than 1 January 2005, and on a proposal from the Commission, the Council of the 
European Union shall decide again on the extra periods of time granted to certain Member 
States for transmitting data. 
2. The Member States shall transmit the results of Annex B, including the data which has been 
declared confidential by the Member States in accordance with national legislation or 
practice concerning statistical confidentiality, under the provisions of Council Regulation 
(EEC, Euratom ) No 1588/90 of 11 June 1990 on the transmission of data subject to 
statistical confidentiality to the Statistical Office of the European Communities. 
Within the limits set in the second paragraph of Article 2, any changes - new tables, countries 
and/or regions concerned - in the data requested from the Member States may be the subject of 
Commission Decisions in accordance with the procedure provided for in Article 5. 
Article 4 
The Committee and its tasks 
1. The Commission shall be assisted by the Statistical Programme Committee, hereinafter 
referred to as "the Committee". 
2. The Committee shall examine all matters relating to the implementation of this Regulation 
that are raised by its Chairman, either on his own initiative or at the request of a Member 
State. 
Article 5 
Procedure 
1. The representative of the Commission shall submit to the Committee a draft of the measures 
to be taken. The Committee shall deliver its opinion on this draft within a time limit which 
the Chairman may set in the light of the urgency of the matter in hand. The opinion shall be 
delivered by the majority laid down in Article 148 (2) of the Treaty establishing the 
European Community for Decisions which the Council of the European Union is required to 
adopt on a proposal from the Commission. When the Committee votes, the weightings laid 
down in the above-mentioned Article shall be applied to the votes of the representatives of 
the Member States. The Chairman shall not take part in the vote. 
2. The Commission shall adopt measures that are immediately applicable. However, if they do 
not accord with the opinion delivered by the Committee, these measures shall be 
immediately communicated by the Commission to the Council, in which case the 
Commission shall postpone the application of the measures it has adopted by three months 
from the date of such communication. 
3. The Council, acting by a qualified majority, may adopt a different Decision within the time 
limit laid down in paragraph 2. 
•c< <x 
Article 6 
Cooperation with other committees 
1, On all matters falling within the competence of the CMFB, the Commission shall request 
the opinion of this Committee in accordance with Article 2 of Council 
Decision 91/115/EEC. 
2. The Commission shall communicate to the Committee on Gross National Product, set up by 
Council Directive 89/130/EEC, any information concerning the implementation of this 
Directive which is necessary for the performance of its duties. 
Article 7 
First transmission of data 
Data for 1995, 1996 and 1997 based on the ESA 95 shall be sent starting on 1 January 1998 at the 
latest, in accordance with the deadlines laid down in Annex B. 
Until the first transmission based on the ESA 95, the Member States shall continue to send the 
Commission the accounts and tables according to the Directives and Regulations in force. 
Article 8 
Legal acts referring to the ESA 
All references to the ESA in any existing or future legal act shall be understood to comply with the 
definitions of the ESA 95. 
For the application of such legal acts, the Member States shall transmit the results for 1995, 1996 
and 1997 in accordance with the ESA 95 for the first time starting not later than 1 January 1998 . 
Article 9 
This Regulation shall enter into force on the twentieth day following its publication in the Official 
Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in all Member States. 
OJ No L49, 21.2.1989 
-C Ov— 
Annex I: Communication to the Commission 
Annex la: Summary 
Annex II: Financial statement 
Annex III: Impact assessment form 
Annex IV: Supplementary form concerning the EFTA countries 
-i -o^ 
Annex I 
Communication to the Commission 
Concerning: Draft proposal for a Council Regulation on the European System of National 
and Regional Accounts in the European Union 
Grounds: 
1. The statistical services of the Member States, coordinated by Eurostat, have an important 
part to play in meeting Community needs in the area of national accounts. 
Over the past two years, Eurostat, in close cooperation with the Member States and various 
international organizations, has carried out a thorough revision of the European System of 
Accounts (ESA). The aim of this revision was to bring the system up to date with economic 
changes, to clarify it on a number of points, to harmonize it with other Community statistical 
systems, and to iron out differences between the old Community system (ESA) and that used 
within the OECD and throughout the world (SNA). 
2. The draft Regulation has two annexes: Annex A sets out the methodology of the European 
System of Accounts and Annex B is a list of the tables that the National Statistical Institutes 
will be obliged to transmit to the Commission. 
The revised methodology is fully consistent with the United Nations' System of National 
Accounts (SNA), but more specific as regards the institutions and conditions in the 
Community, which will make it possible to achieve the higher level of comparability needed 
for the management of Economic and Monetary Union and the use of national accounts 
aggregates for Community administrative and especially budgetary calculations. 
As regards the production of national accounts data, the main objectives are to reduce the 
time taken to process and disseminate the data, enhance coverage (not least geographical) 
and step up the harmonization of the data. This cannot fail to contribute to better 
management and monitoring of the implementation of Economic and Monetary Union. 
Financial implications 
3. The total cost to the Community budget in the first three years (1995-1997) of implementing 
this project is ECU 9 million, 90% of which is to be devoted to assisting the statistical 
services of the Member States. The rest (10%) covers operating expenditure on research and 
data management. 
Impact on small and medium-sized enterprises fSMEs) 
4. The information required will be obtained by processing official statistics, mostly using 
existing data collection systems. Hence, the impact of the project on enterprises is 
considerably reduced. 
Draft Regulation 
5. The Commission is requested to approve this draft Regulation and forward it to the Council 
for adoption. 
-«*__ 
Annex la 
Summary 
Draft ESA Regulation 
The European System of Accounts (ESA) is a reference framework for drawing up accounts to meet 
the Community's needs, using a methodology designed to produce results that are comparable 
between the Member States. 
The aim of the draft Regulation is to establish: 
a methodology comprising common standards, definitions, classifications and accounting 
rules, called the European System of Accounts (ESA), for drawing up accounts and tables on 
a comparable basis to meet the needs of the European Community; 
a schedule for transmitting the accounts and tables drawn up according to the ESA to the 
Commission on precise dates. 
The implementation of this programme will cost ECU 9 million over the first three years, of which 
90%o will be devoted to the statistical services of the Member States. 
The Commission is requested to approve this draft Regulation and forward it to the Council for 
adoption. 
i-n. 
Annex II 
FINANCIAL STATEMENT 
1 TITLE OF OPERATION 
Draft proposal for a Council Regulation on the European System of National 
and Regional Accounts in the European Union 
2 BUDGET HEADING INVOLVED 
Sub-section B-5: Consumer protection, internal market, industry and trans-European 
networks. 
Chapter B5-60: Statistical information policy connected with the completion of the 
internal market and in support of Community policies. 
Article B5-600: Policy on statistical information concerned with non-member States. 
3 LEGAL BASIS 
Article 213 of the Treaty establishing the European Community 
The Treaty on European Union 
The Treaty establishing the European Economic Area 
Council Decision 93/464/EEC of 22 July 1993 on the framework programme 
for priority action in the field of statistical information 1993-1997, in 
particular, the provisions relating to the policy for Economic and Monetary 
Union (OJ No L 219 of 28.08.1993). 
Council Directive 89/130/EEC of 13 February 1989 on the harmonization of the 
compilation of gross national product at market prices (OJ No L 49 of 21.02.1998, p. 
26). 
Commission Decision 93/570/EEC of 4 October 1993 defining the distinction 
between 'other taxes linked to production' and 'intermediate consumption' for the 
purpose of the implementation of Article 1 of Council Directive 89/130/EEC, 
Euratom on the harmonization of the compilation of gross national product at market 
prices (OJ No L 276 of 09.11.1993, p. 13). 
Commission Decision 94/168/EC of 22 February 1994 on measures to be taken for 
the implementation of Council Directive 89/130/EEC on the harmonization of the 
compilation of gross national product at market prices (OJ No L 77 of 19.03.1994, p. 
51). 
Council Regulation (EEC) No 2081/93 of 20 July 1993 amending Regulation (EEC) 
No 2052/88 on the tasks of the Structural Funds and their effectiveness and on 
coordination of their activities between themselves and with the operations of the 
European Investment Bank and other existing financial instruments (OJ No L 193 of 
31.07.1993, p. 5). 
^4& o~ 
Council Regulation (EC) No 1164/94 of 16 May 1994 establishing a cohesion fund 
(OJ No L 130 of 25.05.1994, p. 1). 
4 DESCRIPTION OF OPERATION 
4.1 General objective 
The objective of the operation is to provide decision-makers in the Institutions and 
the national governments with harmonized statistical indicators enabling them to 
monitor the attainment of objectives in connection with Economic and Monetary 
Union. Such statistics are required by the Institutions and Member States for 
monitoring the application of the principles set out in Article 3 A and Article 130 A-E 
of the Treaty on European Union concerning economic policy convergence and 
economic and social cohesion. 
The aim of the programme is to submit proposals to the statistical institutes of the 
Member States for carrying out statistical surveys and for the processing of existing 
data in the field of national accounts using common procedures. 
The programme will attempt to: 
implement a set of standards, methods and organizational structures for 
producing comparable, reliable and relevant statistics throughout the 
Community; 
provide the European Institutions and the Governments of the Member States 
with the information needed to implement, monitor and promote the 
convergence of economic policy and regional development within the Union; 
disseminate statistical information among the European public, enterprises 
and other social and economic operators to assist them in their decision­
making; 
work towards improving the statistical systems of the Member States. 
4.2 Period covered and arrangements for renewal or extension 
Multiannual operation, as there is an ongoing demand for statistical information. 
5 CLASSIFICATION OF EXPENDITURE OR REVENUE 
5.1 Non-compulsory expenditure 
5.2 Differentiated appropriations 
5.3 Type of revenue involved 
Sale of statistics, partly covering the production of publications 
41-c^ 
6 TYPE OF EXPENDITURE OR REVENUE 
£.J. - 100% subsidy 
No The Community budget contribution accounts for only a small percentage (in 
the region of 5%) of the actual cost of collecting the data, since the 
Community's statistical activities are largely carried out by the Member 
States. However, some expenditure is essential to encourage the 
standardization of data collection, processing and transmission to Eurostat. 
C Jl ., - Subsidy for joint financing with other sources in the public and/or private 
sector 
Yes Joint financing with the public sector (budgets of the national statistical 
services) and the private sector (receipts from sales of statistical products and 
financing of surveys by enterprises). 
<T- 3 . - Interest subsidies 
No 
Other 
None <£.H 
Qxf - Should the initiative prove a financial success, is there provision for all or part 
of the Community contribution to be reimbursed? 
Not applicable 
C é . - Will the proposed operation cause any change in the level of revenue? 
Yes. The results of the statistical work on indicators of own resources (GNP, VAT, 
customs duties) may be used to re-assess the general level of the budget. 
£.-\ Re-use 
This expenditure may generate income which may be re-used. 
7 FINANCIAL IMPACT 
7.1 Method of calculating the total cost of the operation for the 1995 financial year 
The financial statement provides an estimate of annual requirements by type of 
expenditure under the operating budget. 
^Lou 
7.2 The total cost of the operation is broken down into three items: 
Contribution to official statistical institutes 
of the Member States: ECU 8.1 million 
Services of research institutes and private firms 
in the Member States: ECU 0.8 million 
Information and publication: ECU 0.1 million 
Breakdown by budget year (ECU thousand) 
BUDGET 1995 
3 000 1996 
3 000 1997 
3 000 
7.3 Operating expenditure on research, meetings of experts, etc. included in part B 
Administrative expenditure directly related to the achievement of the objective of the 
operation and forming an integral part thereof, totals ECU 0.9 million. 
Research 
Meetings of experts 
Conferences and 
symposia 
Information and 
publication 1995 
0.25 
0.05 
-
-1996 
0.25 
0.05 
-
-1997 
0.15 
0,05 
-
0.1 
7.4 Schedule to be completed for multiannual operations accompanied by 
amount deemed necessary 
8 FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN 
Statistical information is considered an objective means of assessing Community action 
programmes and thus helps to consolidate anti-fraud measures. 
>ft Ow 
ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
9.1 Specific and quantified objectives; target population 
Specific objectives: 
The objective mentioned in point 4.1 is linked to the Treaty provisions 
concerning: 
Economic and Monetary Union. 
The implementation of the programme will involve the following tasks: 
a) developing common classifications, methodologies and definitions directly 
applicable in the Member States with the backing of Community legislation; 
b) carrying out common statistical surveys on the basis of harmonized methods; 
c) producing, analysing and disseminating statistical results for the Community, 
including international and inter-regional comparisons; 
d) incorporating Community practice into the statistical programmes of the 
Member States; 
e) promoting the convergence of national statistical practices by means of 
common training programmes; 
f) assisting the development of the statistical systems of the Member States by 
means of structural initiatives and the exchange of technology and experience 
between Member States. 
Sectoral programmes: 
Sectoral programmes for Economic and Monetary Union: economic and 
financial accounts; public-sector and balance-of-payments statistics; 
monetary policy coordination and ecu indicators; external trade statistics. 
Target population 
The beneficiaries of this operation are: the Community Institutions, the Governments 
of the Member States, enterprises, economic and social decision-makers in the 
Member States, research institutes, universities and the media. 
9.2 Grounds for the operation 
Need for Community financial aid 
Mu-
This operation aims to achieve four results: 
- to provide the Institutions with the quantitative data they need to develop, 
monitor and assess programmes of action in accordance with Article 3, 
paragraph 2, of the Financial Regulation, thereby contributing towards a 
more efficient and relevant employment of the Community budget, 
combating fraud, and providing a basis for better decision-making in all 
areas covered by the programme; 
- to provide national Governments with comparable statistics at regional and 
national levels on all the Member States for assessing and monitoring the 
progress of Community policy programmes; 
- to provide political, economic and social decision-makers in the 
Community with statistics for taking decisions and assessing the results of 
decisions taken in their own area of activity; it is therefore a vital element 
in the European information market, enhancing the European economy's 
competitive position vis-à-vis the rest of the world; 
- to provide the scientific community with the information heeded to pursue 
research into, and broaden knowledge of, the economic and social life of 
the Community. 
Choice of ways and means 
The financing of this operation falls mainly on the Member States (heading 1, 
point 6.1) that have well-established data collection and processing 
structures. If the Commission were to finance the whole programme, the cost 
would be extremely high for a less reliable result; 
the results of the operation contribute towards improving the statistical 
information used in work on the gross national product (GNP) of the Member 
States, the distribution of the regional and cohesion funds, agricultural levies, 
VAT calculations, and customs levies and receipts; 
the collection of statistical information is organized in a highly subsidiary 
manner, whereby the national statistical systems have full responsibility in 
each Member State; the Community statistical programme becomes an 
integral part of the national statistical programmes, thereby contributing to 
the creation of a European statistical area; 
pump-priming effect on progress towards a European statistical area, and 
hence towards enhanced Community-wide integration of national statistical 
systems; 
the Community statistical programme mobilizes the budgets of the national 
statistical systems, which make a large contribution to achieving it; 
effect on the research and university world, which will have unprecedented 
scientific material for social and economic studies and research. 
-IV G-
Main factors of uncertainty which could affect the results of the operation 
The amount of the appropriations. 
9.3 Monitoring and evaluation of the operation 
Performance indicators 
The performance indictors selected for assessing the progress of work are of three 
kinds: 
budgetary: in order to compare the plan with the out-turn of budget at the end of 
1998, the plan must be carried out in full. 
planning: to compare the statistical results with the programme established in 
advance and the forecast budget. 
cost-effectiveness: comparative studies are planned to measure the volume of 
appropriations required for similar operations and to correct assessments. 
A. Implementation of budget (ECU million) 
Committed Disbursed 
1995 3.0 2.1 
end 1996 3.0 3.0 
end 1997 3.0 3.0 
end 1998 not forecast 0.9 
Total 9.0 9.0 
B. Implementation of programme 
Existing programmes 
reduction of time taken to disseminate data to users; 
volume of requests for access to data. 
New programmes 
carrying out surveys and/or statistical processing according to a 
schedule decided under the programme; 
carrying out surveys and/or statistical processing within the budgetary 
limits set for each programme; 
volume of new databases available to users. 
C. Use of human and budgetary resources 
study and assessment of resources needed for standard operations; 
computerization of services as a means of accomplishing the work 
with fewer resources. 
At-*-
Details and frequency of planned evaluations 
The implementation of the programme submitted to the Council for its assent 
(Regulation) will be monitored by a Committee composed of a Chairman and a 
number of Directors-General of National Statistical Institutes: 
Statistical ProgrammCommittee (Council Decision 89/382/EEC of 19 June 1989) 
The Committee examines all questions pertaining to the implementation of the 
Regulation raised by its Chairman, either on his own initiative or at the request of a 
Member State. 
Is the operation included in the DG's financial programming for the years in 
question? 
The planned operation is part of the statistical programme, but no provision was 
made at the time for its financing. 
To which broader objective defined in the DG's financial programming does the 
objective of the planned operation correspond? 
10 ADMINISTRATIVE EXPENDITURE (PART A OF THE BUDGET) 
10.1 Will the proposed operation involve an increase in the number of Commission 
staff? 
No. 
10.2 Indicate the amount of staff and administrative expenditure involved in the 
proposed operation. 
W^c^-
Annex III 
IMPACT ASSESSMENT FORM 
THE IMPACT OF THE PROPOSAL ON BUSINESS 
with special reference to small and medium-sized 
enterprises (SMEs) 
Title of proposal: Draft Proposal for a Council Regulation on the European System of 
National and Regional Accounts in the European Union 
The proposal: 
1. The aim of the proposal is to establish a common statistical language for the purpose of 
producing harmonized statistical indicators for monitoring the attainment of objectives in 
connection with Economic and Monetary Union. The programme aims to submit proposals 
to the statistical institutes of the Member States for carrying out statistical surveys and 
processing existing data in the field of national accounts using common procedures. 
Impact on enterprises: 
2. Enterprises are not directly concerned by this proposal, regardless of sector, size or region. 
3. The Regulation does not entail any particular action involving enterprises, but at the end of 
the day they will benefit from the availability of comparable, reliable and relevant statistics 
for the Member States as a result of the development and implementation of a set of 
standards, methods and organizational structures. 
4. The direct economic effects are considerable, and one may hope for time savings and better 
understanding between partners through the uniform application of a more systematic 
terminology. 
5. The proposal itself defines the standards, terminology, concepts and priorities among the 
elements to be implemented. It does not contain specific measures affecting any given 
category of enterprises. 
Consultation 
6. UNICE and the main European Industrial Branch Federations (FEBI) have been informed 
indirectly via other drafts of this proposed Regulation. 
M Q^ 
Annex IV 
SUPPLEMENTARY FORM CONCERNING THE EFTA COUNTRIES 
Title of the proposal 
Draft proposal for a Council Regulation on the European Systems of National and Regional 
Accounts in the European Union. 
Impact on the EFTA countries 
The EFTA countries are affected by the draft Regulation and were involved in the discussions 
concerning it. 
They attended the meetings of the National Accounts Working Party at which the proposal was 
discussed. 
>f* Ow 

ANNEX A 
ESÂ 1995 
NOVEMBER 1994 eurostat 
ESA 1995 
TABLE OF CONTENTS 
Page 
Chapter I.: 
IL: 
III.: 
IV.: 
V.: 
VI.: 
VIL: 
VIII.: 
IX.: 
X.: 
XI.: 
XII.. 
XIII.: 
Annexes: 
1. 
2. 
3. 
4. General features 5 
Units and groupings of units 31 
Transactions in products 65 
Distributive transactions 107 
Financial transactions v 153 
Other flows 187 
Balance sheets 201 
Sequence of accounts and balancing items 231 
Input-output framework 299 
Price and volume measures 327 
Population and labour input 347 
Quarterly economic accounts 359 
Regional accounts 363 
Financial intermediation services indirectly measured (FISIM) 373 
Leasing and hire purchase of durable goods 381 
Insurance 387 
Classifications and accounts 405 
Index 
CHAPTER I 
GENERAL FEATURES 
-4 S -
L INTRODUCTION 
1.01. The European System of National and Regional Accounts (1995 ESA, or simply: ESA) is 
an internationally compatible accounting framework for a systematic and detailed 
description of a total economy (that is, a region, country or group of countries), its 
components and its relations with other total economies. 
The 1995 ESA replaces the European System of Integrated Economic Accounts published 
in 1970 (1970 ESA; a second, slightly modified, edition appeared in 1978). 
The 1995 ESA is fully consistent with the revised worldwide guidelines on national 
accounting, the System of National Accounts (1993 SNA, or simply: SNA; these 
guidelines have been produced under the joint responsability of the United Nations, the 
IMF, the Commission of the European Communities, the OECD and the World Bank). 
However, the ESA is focused more on the circumstances and data needs in the European 
Union. Like the SNA, the ESA is harmonized with the concepts and classifications used in 
many other, social and economic statistics. Cases in point are statistics on employment, 
statistics on manufacturing and statistics on external trade. The ESA can therefore serve as 
the central framework of reference for the social and economic statistics of the European 
Union and its Member States. 
1.02. The ESA framework consists of two main sets of tables: 
- the sector accounts (see chapter VIII); 
- the input-output framework (see chapter IX) and the accounts by industry (see chapter 
VIII). 
The sector accounts provide, by institutional sector, a systematic description of the 
different stages of the economic process: production, generation of income, distribution of 
income, redistribution of income, use of income and financial and non-financial 
accumulation. The sector accounts also include balance sheets to describe the stocks of 
assets and liabilities at the beginning and the end of the accounting period. 
The input-output framework and the accounts by industry describe in more detail the 
production process (cost structure, income generated and employment) and the flows of 
goods and services (output, imports, exports, final consumption, intermediate consumption 
and capital formation by product group). 
The ESA encompasses concepts of population and employment (see chapter XI). These 
concepts are relevant for both the sector accounts and the input-output framework. 
The ESA is not restricted to annual national accounting, but applies also to quarterly 
accounts (chapter XII) and regional accounts (chapter XIII). 
II. THE USES OF THE ESA 
1.03. The ESA framework can be used to analyse and evaluate: 
- the structure of a total economy. Cases in point are: 
* value added and employment by industry; 
* value added and employment by region; 
* income distributed by sector; 
* imports and exports by product group; 
* final consumption expenditure by product group; 
* fixed capital formation and fixed capital stock by industry; 
* the composition of the stocks and flows of financial assets by type of asset and by 
sector. 
- specific parts or aspects of a total economy. Cases in point are: 
* banking and finance in the national economy; 
* the role of government; 
* the economy of a specific region (in comparison to that of the nation as a whole). 
- the development of a total economy over time. Cases in point are: 
* the analysis of GDP growth rates; 
* the analysis of inflation; 
* the analysis of seasonal patterns in household expenditure on the basis of 
quarterly accounts 
* the analysis of the changing importance of particular types of financial 
instruments over time, e.g. the increased importance of options; 
* the comparison of the industrial structures of the national economy over the long 
term, e.g. over a period of thirty years. 
- a total economy in relation to other total economies. Cases in point are: 
* the comparison of the roles of government in two Member States of the European 
Union; 
* the analysis of the interdependencies between the economies of the European 
Union; 
* the analysis of the composition and destination of the exports of the European 
Union; 
* the comparison of GDP growth rates or disposable income per capita in the 
European Union and in the United States and Japan. 
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1.04. For the EU and its Member States, the figures from this framework play a major role in 
formulating and monitoring their social and economic policy. 
Furthermore, there are some very important specific uses (in 1995): 
- for monitoring and guiding European monetary policy: the criteria of convergence for 
the European Monetary Union have been defined in terms of national accounts figures 
(government deficit, government debt and GDP). 
- for granting monetary support to regions in the EU: the expenditure for the Structural 
Funds of the EU is partly based on regionalised national accounts figures. 
- for determining the own resources of the EU. The latter depend on national accounts 
figures in three ways: 
* the total resources for the EU are determined as a percentage of the Member 
States' Gross National Incomes (in the 1970 ESA, Gross National Income was 
called Gross national Product (GNP)); 
* the third own resource of the EU is the VAT own resource. The, contributions by 
the Member States for this resource are largely affected by national accounts 
figures, because they are used to calculate the average VAT rate; 
* the relative sizes of the contributions by the Member States for the fourth own 
resource of the EU are based on their Gross National Incomes. 
1.05. In order to establish a good balance between data needs and data possibilities, the concepts 
in the ESA have eight important characteristics. They are: 
1. internationally compatible; 
2. harmonized with those in other social and economic statistics; 
3. consistent; 
4. operational; 
5. different from most administrative concepts; 
6. well-established and fixed for a long period; 
7. focused on describing the economic process in monetary and readily observable terms; 
8. flexible and multi-purpose. 
1.06. The concepts are internationally compatible because: 
- For EU Member States, the ESA is the standard for submitting national accounts data to 
all international organizations. Only in the national publications is strict adherence to 
the ESA not obligatory. 
- The concepts in the ESA are in all respects consistent with those in the worldwide 
guidelines on national accounting, i.e. the SNA. 
International compatibility of concepts is crucial when comparing statistics for different 
countries. 
1.07. The concepts are harmonized with those in other social and economic statistics because: 
- The ESA employs many concepts and classifications (e.g. NACE.Rev. 1) that are also 
used for the other social and economic statistics of EU Member States, e.g. in statistics 
on manufacturing, statistics on external trade and statistics on employment; conceptual 
differences have been kept to a minimum. Furthermore, these EU concepts and 
classifications are also harmonized with those of the United Nations. 
- Like the SNA, the concepts in the ESA are also harmonized with those in the major 
international guidelines on some other economic statistics, in particular the IMF 
Balance of Payments Manual (BPM), the IMF Government Finance Statistics (GFS), 
the OECD Revenue Statistics and the ILO resolutions on the concepts of employment, 
hours worked and labour costs. 
This harmonization with other, social and economic statistics greatly aids the linkage to 
and comparison with these figures. As a consequence, better national accounts figures can 
be compiled. Furthermore, the information contained in these specific statistics can now be 
better related to the general statistics on the national economy, i.e. the national accounts 
figures like GNP or value added per industry and sector. 
1.08. The identities in the accounting framework enforce the consistency of the concepts used 
describ the different parts of the economic process (production, income distribution, use of 
income, accumulation). As a result of this internal consistency, statistics from different 
parts of the accounting framework can be usefully related to each other. So, for example, 
the following ratios can be calculated: 
- productivity figures, such as value added per hour worked (this figure requires 
consistency between the concepts of value added and hours worked) ; 
- National Disposable Income per capita (this ratio requires consistency between the 
concepts National Disposable Income and population); 
- fixed capital formation as a percentage of fixed capital stock (this ratio requires 
consistency between the definitions of these flows and stocks); 
- government deficit and debt as percentages of Gross Domestic Product (these figures 
require consistency between the concepts of government deficit, government debt and 
Gross Domestic Product). 
This internal consistency of concepts also allows some estimates to be derived by residual, 
e.g. saving can be estimated as the difference between disposable income and final 
consumption expenditure (see also chapter IX). 
1.09. The concepts in the ESA are operational concepts since they are designed with their 
measurement in mind. The operational character of the concepts is revealed in several 
ways: 
- some activities or items have only to be described when significant in size. This 
pertains, for example, to own-account production of goods by households: weaving 
cloth and the production of pottery are not to be recorded as production, because these 
types of production are deemed to be insignificant for EU countries. Another case in 
point is that small inexpensive tools and appliances are only recorded as fixed capital 
formation when the producer's expenditure on such durables exceeds ECU 500 (at 1995 
prices) per item (or, when bought in quantities, for the total amount bought); when this 
expenditure does not exceed this threshold, these items are recorded as intermediate 
consumption. 
- some concepts are accompanied by clear indications of how to estimate them. For 
example, in defining capital consumption reference is made to linear depreciation and 
for estimating fixed capital stock the Perpetual Inventory Method is recommended. 
Another case in point is the valuation of own-account production: in principle, it should 
be at basic prices, but if necessary the basic prices may be approximated by adding up 
the various costs involved. 
- some simplifying conventions have been adopted. For example, by convention, the 
collective services provided by government are all final consumption expenditures. 
None of these services (e.g. the provision of education and infrastructure) are recorded 
as inputs in the domestic production process. 
- the concepts are harmonized with those in social and economic statistics used as inputs 
for compiling the national accounts. 
1.10. However, at the same time, the concepts are not always easy to put into operation as they 
usually diverge in some respects from those employed in administrative data sources. 
Cases in point are business accounts, data on various types of taxes (VAT, personal income 
tax, import levies, etc.), social security data and data from supervisory boards on banking 
and insurance. These administrative data often serve as inputs for compiling the national 
accounts. In general, they will therefore have to be transformed in order to comply with the 
ESA. 
The concepts in the ESA usually differ in some respects from their administrative 
counterparts because: 
- administrative concepts differ between countries. As a consequence, international 
compatibility cannot be attained through administrative concepts; 
- administrative concepts change over time. As a consequence, comparability in time 
cannot be attained through administrative concepts; 
- the concepts.underlying administrative data sources are usually not consistent with each 
other. However, linking and comparing data, which is crucial for compiling national 
accounts figures, is only possible with a consistent set of concepts; 
- the administrative concepts are generally not optimal for economic analysis and the 
evaluation of economic policy. 
Nevertheless, sometimes, administrative data sources meet the data needs of national 
accounts and other statistics very well, because: 
- concepts and classifications originally devised for statistical purposes may also be 
adopted for administrative purposes, e.g. the classification of government expenditure 
by type; 
- administrative data sources may explicitly take account of the (separate) data needs of 
statistics; this applies, for example, to the Intrastat system for providing information 
about deliveries of goods between EU-Member States. 
1.11. The main concepts in the ESA are well-established and fixed for a long period, because: 
- they have been approved as the international standard for the next decades; 
- in the successive international guidelines on national accounting most of the basic 
concepts have hardly been changed. 
This conceptual continuity reduces the need to recalculate time series and to learn new 
concepts. Furthermore, it limits the vulnerability of the concepts to national and 
international political pressure. For these reasons, the national accounts figures have been 
able to serve as an objective data base for economic policy and analysis for decades. 
1.12. The ESA concepts are focused on describing the economic process in monetary and readily 
observable terms. For the most part, stocks and flows that are not readily observable in 
monetary terms, or that do not have a clear monetary counterpart are not taken into 
account. 
This principle has not been applied strictly, because account should also be taken of the 
requirement of consistency and the various data needs. For example, consistency requires 
that the value of collective services produced by government is recorded as output, because 
the payment of compensation of employees and the purchase of all kinds of goods and 
services by government are readily observable in monetary terms. Furthermore, for the 
purposes of economic analysis and policy, describing the collective services of government 
in relation to the rest of the national economy increases also the usefulness of the national 
accounts as a whole. 
1.13. The scope of the concepts in the ESA can be illustrated by considering some important 
borderline issues. 
The following fall within the production boundary of the ESA (see paras 3.07.-3.09.): 
- production of individual and collective services by government; 
- the own-account production of housing services by owner-occupiers; 
- production of goods for own final consumption, e.g. of agricultural products; 
- own-account construction, including that by households; 
- the production of services by paid domestic staff; 
- breeding of fish in fish farms; 
- production forbidden by law, e.g. prostitution and production of drugs; 
- production from which the revenues are not declared in full to the fiscal authorities, e.g. 
clandestine production of textiles. 
The following fall outside the production boundary: 
- domestic and personal services produced and consumed within the same household, e.g. 
cleaning, the preparation of meals or the care of sick or elderly people; 
- volunteer services that do not lead to the production of goods, e.g. caretaking and 
cleaning without payment; 
- natural breeding offish in open seas. 
In general, the ESA records all outputs that result from production within the production 
boundary. However, there are some specific exceptions to this rule: 
- the outputs of ancillary activities are not to be recorded; all inputs consumed by an 
ancillary activity -materials, labour, consumption of fixed capital, etc.- are treated as 
inputs into the principal or secondary activity which it supports; 
- outputs produced for intermediate consumption in the same local Kind of Activity Unit 
(KAU, see also para 1.29.) are not to be recorded; however, all outputs produced for 
other local KAUs belonging to the same institutional unit are to be recorded as output. 
The accounting logic of the ESA implies that if activities are regarded as production and 
their output is to be recorded, then the concomitant income, employment, final 
consumption, etc. are also to be recorded. For example, as the own-account production of 
housing services by owner-occupiers is recorded as production, so is the income and final 
consumption expenditure it generates for these owner-occupiers. The reverse holds when 
activities are not recorded as production: domestic services produced and consumed within 
the same household do not generate income and final consumption expenditure and 
according to the ESA concepts, no employment is involved. 
The ESA also contains many specific conventions, e.g.: 
- the valuation of government output; 
- the valuation of the output of insurance services and financial intermediation services 
indirectly measured; 
- recording all the collective services provided by government as final consumption 
expenditure and none as intermediate consumption; 
- recording the use of financial intermedation services indirectly measured as the 
intermediate consumption of a nominal sector or a nominal industry. 
1.14. The concepts in the ESA are multi-purpose: for a great range of uses the ESA concepts will 
be acceptable, though they may need to be supplemented for some uses (see also para 
1.18.). 
1.15. The detail in the conceptual framework of the ESA offers the opportunity for flexible use: 
some concepts are not explicitly present in the ESA but can nevertheless easily be derived 
from it. For example, value added 'at factor cost can be derived by subtracting net other 
taxes on production from value added at basic prices. Another case in point is the creation 
of new sectors by rearranging the sub-sectors defined in the ESA. 
1.16. Flexible use is also possible by introducing additional criteria which do not conflict with 
the logic of the system. For example, these criteria might be the scale of employment for 
enterprises or the size of income for households. For employment, subclassification by 
level of education, age and sex can be introduced. 
1.17. This flexible use may be incorporated in a Social Accounting Matrix (SAM). The SAM is 
a matrix presentation which elaborates the linkages between supply and use tables and the 
sector accounts. A SAM commonly provides additional information on the level and 
composition of (un)employment, via a subdivision of compensation of employees by type 
of person employed. This subdivision applies to both the use of labour by industry, as 
shown in the supply and use tables, and the supply of labour by socio-economic subgroup, 
as shown in the allocation of primary income account for households. In this way, the 
supply and use of various categories of labour is shown systematically. 
1.18. For some specific data needs the best solution is to draw up separate satellite accounts. 
Cases in point are the data needs for e.g.: 
- the analysis of the role of tourism in the national economy; 
- the analysis of the costs and financing of health care; 
- the analysis of the importance of research & development and human capital for the 
national economy; 
- the analysis of the income and expenditure of households on the basis of micro-oriented 
concepts of income and expenditure; 
- the analysis of the interaction between the environment and the economy; 
- the analysis of production within households; 
- the analysis of changes in welfare; 
- the analysis of the differences between national accounts and business accounts figures 
and their influence on stock and exchange markets; 
- the estimation of tax revenues. 
1.19. Satellite accounts can serve such data needs by: 
- showing more detail where necessary and leaving out superfluous detail; 
- enlarging the scope of the accounting framework by adding non-monetary information, 
e.g. on pollution and environmental assets; 
- changing some basic concepts, e.g. by enlarging the concept of capital formation by 
amount of the expenditure on research & development or the expenditure on education. 
(2) 
1.20. An important feature of the satellite accounts is that in principle all basic concepts and 
classifications of the standard framework are retained. Only when the specific purpose of 
the satellite account definitely requires a modification, are changes in the basic concepts 
introduced. In such instances, the satellite account should also contain a table showing the 
link between the major aggregates in the satellite account and those in the standard 
framework. In this way, the standard framework retains its role as a framework of 
reference and at the same time justice is done to more specific needs. 
1.21. The standard framework does not pay much attention to stocks and flows which are not 
readily observable in monetary terms (or without a clear monetary counterpart). By their 
nature, the analysis of such stocks and flows is usually also well served by compiling 
statistics in non-monetary terms, e.g.: 
- production within households can most easily be described in terms of hours allocated 
to the alternative uses; 
- education can be described in terms of type of education, the number of pupils, the 
average number of years of education before obtaining a diploma, etc. 
- the effects of pollution are best described in terms of changes in the number of living 
species, the health of the trees in the forest, the volume of refuse, the amounts of 
carbon-monoxide and radiation, etc. 
The satellite accounts offer a possibility to link such statistics in non-monetary units to the 
standard national accounts framework. The linkage is possible by using for these non­
monetary statistics, as far as possible, the classifications employed in the standard 
framework, e.g. the classification by type of household or the classification by industry. In 
this way, a consistent extended framework is drawn up. This framework can then serve as a 
data base for the analysis and evaluation of all kinds of interactions between the variables 
in the standard framework and those in the extended part. 
1.22. The standard framework and its major aggregates do not describe changes in welfare. 
Extended accounts can be drawn up which include also the imputed monetary values of, 
e.g.: 
- domestic and personal services produced and consumed within the same household; 
- changes in leisure time; 
- amenities and dis-amenities of urban life; 
- inequalities in the distribution of income over persons. 
They can also reclassify the final expenditure on regrettable necessities (e.g. defence) as 
intermediate consumption, i.e. as not contributing to welfare. Similarly, the damage due to 
floods and other natural disasters could be classified as intermediate consumption, i.e. as a 
reduction in (absolute) welfare. 
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In this way, one could try to construct a very rough and very imperfect indicator of changes 
in welfare. However, welfare has many dimensions, most of which are best not expressed 
in monetary terms. A better solution for measuring welfare is therefore to use, for each 
dimension, separate indicators and units of measurement. The indicators could be, for 
example, infant mortality, life expectancy, adult literacy and national income per capita. 
These indicators could be incorporated in a satellite account. 
1.23. In order to attain a consistent, internationally compatible framework, administrative 
concepts are not employed in the ESA. However, for all kinds of national purposes, 
obtaining figures based on administrative concepts can be very useful. For example, for 
estimating tax revenues statistics of taxable income are required. These statistics can be 
provided by making some modifications to the national accounts statistics. A similar 
approach could be taken for some concepts used in national economic policy, e.g. for: 
- the concept of inflation used for increasing pensions, unemployment benefits or 
compensation of employees for civil servants; 
- the concepts of taxes, social contributions, government and the collective sector used in 
discussing the optimal size of the collective sector; 
- the concept of 'strategic' sectors/industries used in national economic policy or the 
economic policy of the EU; 
- the concept of'business investments' used in national economic policy. 
Satellite accounts or simple supplementary tables could do justice to such, usually 
specifically national, data needs. 
1.24. The ESA (the 1995 ESA) is fully consistent with the revised System of National Accounts 
(1993 SNA), which provides guidelines on national accounting for all countries throughout 
the world. Nevertheless, there are several differences between the 1995 ESA and the 1993 
SNA: 
- differences in presentation, e.g.: 
* In the ESA there are separate chapters on transactions in products, distributive 
transactions and financial transactions. In contrast, in the SNA these transactions 
are explained in seven chapters arranged by account, e.g. chapters on the 
production account, the primary distribution of income account, the capital 
account and the Rest of the World account. 
* The ESA describes a concept by providing a definition and a listing of what is 
included and what is excluded. The SNA describes concepts usually in more 
general terms and endeavours also to explain the rationale behind the conventions 
adopted. 
The ESA also contains chapters on regional accounts and quarterly accounts. 
The SNA also contains a chapter on satellite accounts. 
- the ESA concepts are in several instances more specific and precise than those of the 
SNA, e.g.: 
* The SNA defines market output in terms of'economically significant prices'. The 
ESA adds that for EU countries economically significant prices should cover at 
least 50% of the production costs of the product. 
* The ESA specifies concrete recording thresholds, e.g. for recording small tools 
and appliances devices as intermediate consumption; 
* The ESA assumes that several types of household production of goods, such as 
the weaving of cloth and the making of furniture, are not significant in EU 
Member States and therefore need not be recorded; 
* The ESA makes explicit reference to specific institutional arrangements in the EU, 
such as the Intrastat system for recording intra-EU flows of goods and the 
contributions by the Member States to the EU. 
* The ESA contains EU-specific classifications, e.g.: CPA for products and 
NACE.Rev.l for industries (specific but harmonized with the corresponding UN 
classifications). 
* The ESA contains an additional classification for all external transactions: they 
should be divided into those between residents of the EU and those with residents 
from outside the EU. 
The ESA can be more specific than the SNA, because the ESA only applies to the EU 
Member States. For the data needs of the EU, the ESA should also be more specific. 
1.25. The 1995 ESA differs in scope as well as in concepts from the 1970 ESA. Most of these 
differences correspond to differences between the 1968 SNA and 1993 SNA. Some of 
these major differences in scope are: 
- the inclusion of balance sheets; 
- the inclusion of other changes in assets accounts, i.e. the introduction of the concepts 
other changes in volume, nominal holding gains and real holding gains; 
- the introduction of a subsectoring of households; 
- the introduction of a new concept of final consumption: Actual Final Consumption; 
- the introduction of a new price-adjusted income concept: Real National Disposable 
Income; 
- the inclusion of the concept of purchasing power parities. 
Some of the major differences in concepts are: 
- literary-artistic work (writing books, composing music) is now regarded as production; 
payments for literary-artistic work are therefore payments for services and not property 
income; 
- the valuation of the output of insurance services has changed in some respects, e.g. 
technical reserves are now also taken into account in valuing the output of non-life 
insurance; 
- more detailed treatment of trade and transport margins; 
- the introduction of chain linking for calculating constant prices; 
- the concept of financial leasing has been introduced (the 1968 SNA and 1970 ESA 
contained only the concept of operational leasing); 
- expenditure on mineral exploration and on computer software is now recorded as capital 
formation (instead of as intermediate consumption); 
- capital consumption should also be recorded for infrastructural works of government 
(roads, dikes, etc.); 
- identification of new financial instruments, such as repurchase agreements, and 
derivative financial instruments such as options. 
There are also differences that do not result from changes in the SNA, e.g.: 
- the introduction of supply and use tables (this was already included in the 1968 SNA); 
- the introduction of some registration thresholds and the reference to specific 
institutional arrangements in the EU (see para 1.24.); 
- a clear choice in favour of valuing output at basic prices (the 1970 ESA, the 1968 SNA 
and the 1993 SNA also accept valuation at producer's prices); 
- the introduction of the concepts of economically active population and unemployment 
(these concepts are absent in the 1968 and 1993 SNA). 
III. THE ESA AS A SYSTEM 
1.26. The main features of the system are: 
- statistical units and their groupings 
- flows and stocks 
- the system of accounts and the aggregates 
- the input-output framework. 
A) STATISTICAL UNITS AND THEIR GROUPINGS 0) 
1.27. A characteristic feature of the system is the use of two types of unit and two ways of 
subdividing the economy which are quite different and serve separate analytical purposes. 
In order to describe income, expenditure and financial flows, and balance sheets, the 
system groups institutional units into sectors on the basis of their principal functions, 
behaviour and objectives. 
See chapter II, "Units and groupings of units". 
17 
In order to describe processes of production and for input-output analysis, the system 
groups local kind-of-activity units (local KAUs) into industries on the basis of their type of 
activity. An activity is characterised by an input of products, a production process and an 
output of products. 
1 ) Institutional units and sectors 
1.28. Institutional units are economic entities that are capable of owning goods and assets, of 
incurring liabilities and of engaging in economic activities and transactions with other units 
in their own right. For the purposes of the system, the institutional units are grouped 
together into five mutually exclusive institutional sectors composed of the following types 
of units : 
- non-financial corporations; 
- financial corporations; 
- general government; 
- households; 
- non-profit institutions serving households. 
The five sectors together make up the total economy. Each sector is also divided into sub-
sectors. The system makes provision for a complete set of flow accounts and balance 
sheets to be compiled for each sector, and sub-sector if desired, as well as for the total 
economy. 
2) Local kind of activity units and industries 
1.29. Most institutional units in their capacity as producers carry out more than one activity; to 
emphasize relationships of a technico-economic kind, they have to be partitioned with 
regard to the type of activity. 
Local Kind of Activity Units are intended to meet this requirement as an operational 
approach. A local KAU groups all the parts of an institutional unit in its capacity as 
producer which are located in a single or closely located sites, and which contribute to the 
performance of an activity at the class level (4 digits) of the NACE Rev. 1. 
In principle, as many local kind of activity units must be registered as there are secondary 
activities; however, if the accounting documents that would be necessary to describe such 
activities are not available, a local kind of activity unit may include one or several 
secondary activities. 
The group of all local KAUs engaged on the same, or similar, kind of activity constitutes 
an industry. 
There is a hierarchical relationship between institutional units and local KAUs. An 
institutional unit contains one or more entire local KAUs; a local KAU belongs to one and 
only one institutional unit. 
For more refined analysis of the production process, use is made of an analytical unit of 
production. This unit, which is not observable (except in the case of a local KAU only 
producing one type of product), is the unit of homogeneous production, defined as 
covering no secondary activities. Groupings of these units constitute homogeneous 
branches. 
3) Resident and non-resident units; total economy and rest of the world 
1.30. The total economy is defined in terms of resident units. A unit is said to be a resident unit 
of a country when it has a centre of economic interest on the economic territory of that 
country - that is, when it engages for an extended period (one year or more) in economic 
activities on this territory. The institutional sectors referred to above are groups of resident 
institutional units. 
Resident units engage in transactions with non-resident units (that is, units which are 
residents in other economies). These transactions are the external transactions of the 
economy and are grouped in the rest-of-the-world account. So, in the system's accounting 
structure, the rest of the world plays a role similar to that of an institutional sector, 
although non-resident units are included only in so far as they are engaged in transactions 
with resident institutional units. Consequently, as far as coding of classifications is 
concerned, a specific item for the rest of the world is included at the end of the 
classification of sectors. 
Notional resident units, treated in the system as institutional units, are defined as : 
- those parts of non-resident units which have a centre of economic interest (that is in 
most cases which engage in economic transactions for a year or more or which carry out 
a construction activity for a period of less than a year if the output constitutes gross 
fixed capital formation) on the economic territory of the country; 
- non-resident units in their capacity as owners of land or buildings on the economic 
territory of the country, but only in respect of transactions affecting such land or 
buildings. 
B) FLOWS AND STOCKS 
1.31. The system records two basic kinds of information: flows and stocks. Flows refer to 
actions and effects of events that take place within a given period of time, while stocks 
refer to positions at a point of time. 
1 ) Flows 
1.32. Flows reflect the creation, transformation, exchange, transfer or extinction of economic 
value. They involve changes in the value of an institutional unit's assets or liabilities. 
Economic flows are of two kinds: i) transactions, and ii) other changes in assets. 
Transactions appear in all accounts and tables where flows appear, except the other 
changes in the volume of assets account and the revaluation account. Other changes in 
assets appear only in these two accounts. 
Elementary transactions and other flows are innumerable. The system groups them into a 
relatively small number of types according to their nature. 
19-
a) Transactions 
1.33. A transaction is an economic flow that is an interaction between institutional units by 
mutual agreement or an action within an institutional unit that it is useful to treat as a 
transaction, often because the unit is operating in two different capacities. It is convenient 
to divide transactions into four main groups: 
1 - Transactions in products 
which describe the origin (domestic output or imports) and use (intermediate consumption, 
final consumption, capital formation or exports) of products/1) 
2 - Distributive transactions 
which describe how value added generated by production is distributed to labour, capital 
and government, and the redistribution of income and wealth (taxes on income and wealth 
and other transfers)/2) 
3 - Financial transactions 
which describe the net acquisition of financial assets or the net incurrence of liabilities for 
each type of financial instrument. Such transactions often occur as counterparts of non-
financial transactions, but they may also occur as transactions involving only financial 
instruments/3) 
4 - Transactions not included in the three groups above : 
consumption of fixed capital and acquisitions less disposals of non-produced non financial 
assets/4) 
b) Properties of transactions 
b. 1 ) Interactions versus intra-unit transactions. 
1.34. Most transactions are interactions between two or more institutional units. However, the 
system records some actions within institutional units as transactions. The purpose of 
recording these intra-unit transactions is to give a more analytically useful picture of 
output, final uses and costs. 
Consumption of fixed capital, which is recorded as a cost by the system, is an important 
intra-unit transaction. All other intra-unit transactions are transactions in products, 
typically recorded when institutional units operating as both producers and final consumers 
choose to consume some of the output they have produced themselves. This is often the 
case for households and general government. 
0) See chapter III, "Transactions in products". 
(2) See chapter IV, "Distributive transactions". 
(3) See chapter V, "Financial transactions". 
(4> See chapter VI, "Other flows". 
20 
1.35. All own-produced output used for final uses within the same institutional unit is recorded. 
Own-produced output used for intermediate consumption within the same institutional unit 
is recorded only when production and intermediate consumption take place in different 
local kind of activity units within the same institutional unit. Output produced and used as 
intermediate consumption within the same local kind of activity unit is not recorded. 
b.2) Monetary versus non-monetary transactions 
1.36. Most transactions recorded by the system are monetary transactions, where the units 
involved make or receive payments, or incur liabilities or receive assets denominated in 
units of currency. 
Transactions that do not involve the exchange of cash, or assets or liabilities denominated 
in units of currency, are non-monetary transactions. Intra-unit transactions are normally 
non-monetary transactions. Non-monetary transactions involving more than one 
institutional unit occur among transactions in products (barter of products), distributive 
transactions (remuneration in kind, transfers in kind, etc.) and other transactions (barter of 
non-produced non-financial assets). 
The system records all transactions in monetary terms. The values to be recorded for non­
monetary transactions must therefore be measured indirectly or otherwise estimated. 
b.3) Transactions with and without counterparts 
1.37. Transactions involving more than one unit are either "something for something" or 
"something for nothing" transactions. The former are exchanges between institutional 
units, i.e. provision of goods, services or assets in return for a counterpart, e.g. money. The 
latter typically are payments in cash or in kind from one institutional unit to another 
without counterpart. "Something for something" transactions occur in all four transaction 
groups, while "something for nothing" transactions occur mainly among distributive 
transactions, in the form of, for example, taxes, social assistance benefits or gifts. 
b.4) Rearranged transactions 
1.38. The system's treatment of most transactions is straightforward; that is, the transactions are 
recorded in the same way as they appear to the institutional units involved. However, some 
transactions are rearranged in order to bring out the underlying economic relationships 
more clearly. Transactions can be rearranged in three ways: rerouting, partitioning and 
recognizing the principal party to a transaction. 
Rerouting 
1.39. A transaction that appears to the units involved as taking place directly between units A 
and C may be recorded as taking place indirectly through a third unit B. Thus, the single 
transaction between A and C is recorded as two transactions: one between A and B, and 
one between B and C. In this case the transaction is rerouted. 
21 
A well-known example of a rerouting is employers' social contributions paid directly by 
employers to social insurance funds. The system records these payments as two 
transactions: i) employers pay employer's social contributions to their employees, and ii) 
employees pay the same contributions to social insurance funds. As with all reroutings, the 
purpose of rerouting employers' social contributions is to bring out the economic 
substance behind the transaction. In this case this means to show employer's social 
contributions as contributions paid for the benefit of employees. 
Another type of rerouting is that of transactions recorded as taking place between two or 
more institutional units, although according to the parties involved no transaction takes 
place at all. An example is the treatment of property income earned on certain insurance 
funds, which is retained by insurance enterprises. The system records this property income 
as being paid by insurance enterprises to policy holders, who then pay the same amount 
back to the insurance enterprises as premium supplements. 
Partitioning 
1.40. When a transaction appearing to the parties involved as a single transaction is recorded as 
two or more differently classified transactions, the transaction is partitioned. Partitioning 
does usually not imply involving additional units in the transactions. 
The payment of non-life insurance premiums is a typical partitioned transaction. Although 
policy holders and insurers regard these payments as one transaction, the system divides 
them into two quite different transactions: i) payments in return for non-life insurance 
services provided, and ii) net non-life insurance premiums. The recording of trade margins 
is another important case of partitioning. 
Recognizing the principal party to a transaction 
1.41. When a unit carries out a transaction on behalf of another unit, the transaction is recorded 
exclusively in the accounts of the principal. As a rule, one should not go beyond this 
principle and try, for instance, to allocate taxes or subsidies to ultimate payers or ultimate 
beneficiaries under the adoption of assumptions. 
b.5) Borderline cases 
1.42. The definition of a transaction stipulates that an interaction between institutional units be 
by mutual agreement. When a transaction is undertaken by mutual agreement, the prior 
knowledge and consent of the institutional units is implied. However, this does not mean 
that all units necessarily enter a transaction voluntarily, because some transactions are 
imposed by law. This applies mainly to certain distributive transactions, such as payments 
of taxes, fines and penalties. However, uncompensated seizure of assets is not regarded as 
a transaction, even when imposed by law. 
Illegal economic actions are transactions only when all units involved enter the actions 
voluntarily. Thus, purchases, sales or barters of illegal drugs or stolen property are 
transactions, while theft is not. 
-22-
c) Other changes in assets 
1.43. Other changes in assets record changes that are not the result of transactions/1) They are 
either 1) other changes in the volume of assets and liabilities, or 2) holding gains and 
losses. 
c.l) Other changes in the volume of assets and liabilities 
1.44. These changes can be roughly divided into three main categories: 
i) normal appearance and disappearance of assets other than by transactions 
ii) changes in assets and liabilities due to exceptional, unanticipated events 
iii) changes in classification and structure. 
1.45. Examples of changes within category i) are discovery or depletion of subsoil assets, and 
natural growth of non-cultivated biological resources. Category ii) comprises changes 
(normally losses) in assets due to natural disasters, war or severe acts of crime/2) Unilateral 
cancellation of debt and uncompensated seizure of assets also belong to category ii). 
Category iii) consists of changes as a consequence of reclassification and restructuring of 
institutional units or of assets and liabilities. 
c.2) Holding gains and losses 
1.46. Holding gains and losses result from changes in the prices of assets. They occur on all 
kinds of financial and non-financial assets, and on liabilities. Holding gains and losses 
accrue to the owners of assets and liabilities purely as a result of holding the assets or 
liabilities over time, without transforming them in any way. 
Holding gains and losses measured on the basis of current market prices are called nominal 
holding gains and losses. These may be decomposed into neutral holding gains and losses, 
reflecting changes in the general price level, and real holding gains and losses, reflecting 
changes in the relative prices of assets. 
2) Stocks 
1.47. Stocks are holdings of assets and liabilities at a point in time. Stocks are recorded at the 
beginning and end of each accounting period. The accounts that show stocks are called 
balance sheets^3). 
Stocks are also recorded for population and labour inputs. However, these stocks are 
recorded as mean values over the accounting period. 
(1) See chapter VI, "Other flows". 
(2^ The consequences of minor crimes, such as shoplifting, may be recorded as part of change in inventories and 
thus as a transaction. 
See chapter VII, "Balance sheets". O) 
23 
Stocks are recorded for all assets within the system's boundaries; that is, for financial assets 
and liabilities and for non-financial assets, both produced and non-produced. However, the 
coverage is limited to those assets that are used in economic activity and that are subject to 
ownership rights. Thus, stocks are not recorded for assets such as human capital and 
natural resources that are not owned. 
Within its boundaries, the system is exhaustive in respect of both flows and stocks. This 
implies that all changes in stocks can be fully explained by recorded flows. 
C) THE SYSTEM OF ACCOUNTS AND THE AGGREGATES*1) 
1) Rules of accounting 
1.48. An account is a means of recording, for a given aspect of economic life, the uses and 
resources or the changes in assets and the changes in liabilities during the accounting 
period, or the stock of assets and liabilities existing at the beginning or at the end of this 
period. 
a) Terminology for the two sides of the accounts 
1.49. The system employs the term "resources" for the right side of the current accounts where 
transactions appear which add to the amount of economic value of a unit or a sector. The 
left side of the accounts, which relates to transactions that reduce the amount of economic 
value of a unit or sector, is termed "uses". 
The right side of the accumulation accounts is called "changes in liabilities and net worth" 
and their left side is called "changes in assets". 
Balance sheets are presented with "liabilities and net worth" (the difference between assets 
and liabilities) on the right side and "assets" on the left. Comparison of two successive 
balance sheets shows changes in liabilities and net worth and changes in assets. 
b) Double entry/quadruple entry 
1.50. For a unit or sector, national accounting is based on the principle of double entry. Each 
transaction must be recorded twice, once as a resource (or a change in liabilities) and once 
as a use (or a change in assets). The total of transactions recorded as resources or changes 
in liabilities and the total of transactions recorded as uses or changes in assets must be 
equal, thus permitting a check on the consistency of the accounts. 
In practice through, national accounts -with all units and all sectors- are based on a 
principle of quadriple entry, since most transactions involve two institutional units. Each 
transaction of this type must be recorded twice by the two transactors involved. For 
example, a social benefit in cash paid by a government unit to a household is recorded in 
the accounts of government as a use under transfers and a negative acquisition of assets 
under currency and deposits ; in the accounts of the household sector it is recorded as a 
resource under transfers and an acquisition of assets under currency and deposits. 
On the other hand, transactions within a single unit (such as the consumption of output by 
the same unit that produced it) require only two entries, whose values have to be estimated. 
0) See chapter VII, "Balance sheets", and chapter VIII, "Sequence of accounts and balancing items". 
24 -
c) Valuation 
1.51. With the exception of some variables concerning population and labour, the system shows 
all flows and stocks in monetary terms. The system does not attempt to determine the 
utility of flows and stocks. Instead, flows and stocks are measured according to their 
exchange value, i.e. the value at which flows and stocks are in fact, or could be, exchanged 
for cash. Market prices are thus ESA's basic reference for valuation. 
1.52. In the case of monetary transactions and cash holdings and liabilities, the values required 
are directly available. In most other cases, the preferred method of valuation is by reference 
to market prices for analogous goods, services or assets. This method is used for e.g. barter 
and the services of owner-occupied dwellings. When no market prices for analogous 
products are available, for instance in the case of non-market services produced by 
government, valuation should be made according to production costs. If neither of these 
two methods are feasible, flows and stocks may be valued at the discounted present value 
of expected future returns. However, due to the great uncertainty involved, this last 
method is only recommended as a last resort. 
1.53. Stocks should be valued at current prices at the time to which the balance sheet relates, not 
at the time of production or acquisition of the goods or assets that form the stocks. It is 
sometimes necessary to value stocks at their estimated written-down current acquisition 
values or production costs. 
c. 1 ) Special valuations concerning products^]) 
1.54. Because of transport costs, trade margins and taxes less subsidies on products, the 
producer and the user of a given product usually perceive its value differently. In order to 
keep as close as possible to the views of the transactors, the system records all uses at 
purchaser's prices, which include transport costs, trade margins and taxes less subsidies on 
products, while output is recorded at basic prices, which exclude these elements. 
1.55. Imports and exports of products are recorded at border values. Total imports and exports 
are valued at the exporter's customs frontier, or free on board (f.o.b.). As it may not be 
possible to obtain f.o.b. values for detailed product breakdowns, the tables containing 
details on foreign trade show imports valued at the importer's customs frontier (c.i.f. 
value), supplemented with global adjustments to f.o.b. C.i.f. values include insurance and 
freight charges incurred between the exporter's frontier and that of the importer. 
(!) See chapter III, "Transactions in products". 
c.2) Valuation at constant prices(1) 
1.56. Valuation at constant prices means valuing the flows and stocks in an accounting period at 
the prices of a previous period. The purpose of valuation at constant prices is to decompose 
changes over time in the values of flows and stocks into changes in price and changes in 
volume. Flows and stocks at constant prices are said to be in volume terms. 
Many flows and stocks, e.g. income, do not have price and quantity dimensions of their 
own. However, the purchasing power of these variables can be obtained by deflating the 
current values with a suitable price index, e.g. the price index for final national uses, 
excluding changes in inventories. Deflated flows and stocks are said to be in real terms. An 
example is real disposable income. 
d) Time of recording 
1.57. The system records flows on an accrual basis; that is, when economic value is created, 
transformed or extinguished, or when claims and obligations arise, are transformed or are 
cancelled. 
Thus, output is recorded when produced, not when paid for by a purchaser, and the sale of 
an asset is recorded when the asset changes hands, not when the corresponding payment is 
made. Interest is recorded in the accounting period when it accrues, regardless of whether 
or not it is actually paid in that period. Recording on an accrual basis applies to all flows, 
monetary as well as non-monetary and intra-unit as well as between units. 
However, in some cases it is necessary to show flexibility as regards time of recording. 
This applies in particular to taxes and other flows concerning general government, which 
are often recorded on a cash basis in government accounts. It is sometimes difficult to carry 
out an exact transformation of these flows from cash basis to accrual basis. In these cases it 
might therefore be necessary to use approximations. 
Any flow should be recorded at the same point of time for all institutional units involved 
and in all accounts in question. This principle may seem simple, but its implementation is 
not. Institutional units do not always apply the same accounting rules. Even when they do, 
differences in actual recording may occur for practical reasons such as delays in 
communication. Consequently, transactions may be recorded at different times by the 
transactors involved. These discrepancies must be eliminated by adjustments. 
e) Consolidation and netting 
e.l) Consolidation 
1.58. Consolidation refers to the elimination, from both uses and resources, of transactions 
which occur between units when the latter are grouped, and to the elimination of reciprocal 
financial assets and liabilities. 
For sub-sectors or sectors, flows and stocks between constituent units are not consolidated 
between constituent units as a matter of principle. 
However, consolidated accounts may be built up for complementary presentations and 
analyses. For certain kinds of analysis, information on the transactions of these (sub) 
sectors with other sectors and the corresponding "external" financial position is more 
significant than overall gross figures. 
0) See chapter X, "Price and volume measures". 
-26 -
Moreover, the accounts and tables showing the creditor/debtor relationship provide a 
detailed picture of financing of the economy and are considered very useful for 
understanding the channels through which the financing surpluses move from final lenders 
to final borrowers. 
e.2) Netting 
1.59. Individual units or sectors may have the same kind of transaction both as a use and as a 
resource (e.g. they both pay and receive interest) and the same kind of financial instrument 
both as an asset and as a liability. 
The system recommends gross recording, apart from the degree of netting which is 
inherent in the classifications themselves. 
In fact, netting is implicit in various transaction categories, the most outstanding example 
being "changes in inventories", which underlines the analytically significant aspect of 
overall capital formation rather than tracking daily additions and withdrawals. 
Similarly, with few exceptions, the financial account and other changes in assets accounts 
record increases in assets and in liabilities on a net basis, bringing out the final 
consequences of these types of flows at the end of the accounting period. 
f) Accounts, balancing items and aggregates 
1.60. For units (institutional units; local kind of activity units) or groups of units (institutional 
sectors and, by extension, the rest of the world; industries), different sub-accounts record 
the transactions or other flows which are connected to some specific aspect of economic 
life (for instance, production). Such a set of transactions usually does not balance; the total 
amounts recorded as receivable and payable usually differ. Therefore, a balancing item 
must be introduced. Usually, a balancing item must also be introduced between the total of 
assets and the total of liabilities of an institutional unit or sector. Balancing items are 
meaningful measures of economic performance in themselves. When summed for the 
whole economy, they constitute significant aggregates. 
2) The sequence of accounts 
1.61. The system is built around a sequence of inter-connected accounts. 
The full sequence of accounts for the institutional units and sectors is composed of current 
accounts, accumulation accounts and balance sheets. 
Current accounts deal with the production, generation, distribution and redistribution of 
income and the use of this income in the form of final consumption. Accumulation 
accounts cover changes in assets and liabilities and changes in net worth (the difference for 
any institutional unit or group of units between its assets and liabilities). Balance sheets 
present stocks of assets and liabilities and net worth. 
1.62. It is not possible to envisage a complete set of accounts, including balance sheets, being 
compiled for a local KAU, because generally such an entity is not capable of owning goods 
or assets in its own right or capable of receiving or disbursing income. The sequence of 
accounts for local kind of activity units and industries is shortened to the first current 
accounts : production account and generation of income account, the balancing item of 
which is the operating surplus. 
3) The goods and services account 
1.63. The goods and services account shows, for the economy as a whole or for groups of 
products, the total resources (output and imports) and uses of goods and services., 
(intermediate consumption, final consumption, changes in inventories, gross fixed capital 
formation, acquisitions less disposals of valuables, and exports). 
4) The rest-of-the-world account 
1.64. The rest of the world account covers transactions between resident and non-resident 
institutional units and the related stocks of assets and liabilities when relevant. 
As the rest of the world plays a role in the accounting structure similar to that of an 
institutional sector, the rest of the world account is established from the point of view of 
the rest of the world. A resource for the rest of the world is a use for the total economy and 
vice versa. If a balancing item is positive, it means a surplus of the rest of the world and a 
deficit of the total economy, and vice versa if the balancing item is negative. 
5) Balancing items 
1.65. A balancing item is an accounting construct obtained by subtracting the total value of the 
entries on one side of an account from the total value on the other side. It cannot be 
measured independently of the other entries; as a derived entry, it reflects the application of 
the general accounting rules to the specific entries on the two sides of the account. 
Balancing items are not only devices introduced to ensure that accounts balance. They 
encapsulate a great deal of information and include some of the most important entries in 
the accounts, as can be seen from the following examples of balancing items: value added, 
operating surplus, disposable income, saving, net lending/net borrowing, net worth. 
6) Aggregates 
1.66. The aggregates are composite values which measure the result of the activity of the total 
economy considered from a particular point of view; for example, output, value added, 
disposable income, final consumption, saving, capital formation, etc. Although the 
calculation of the aggregates is neither its sole nor its main purpose, the system does 
recognise their importance as summary indicators and key magnitudes for purposes of 
macro-economic analysis and comparisons over time and space. 
Two types of aggregates can be distinguished : 
- aggregates which refer directly to transactions in the system, such as the output of goods 
and services, actual final consumption, gross fixed capital formation, compensation of 
employees, etc. 
- aggregates which represent balancing items in the accounts, such as gross domestic 
product at market prices (GDP), operating surplus of the total economy, national 
income, national disposable income, saving, current external balance, net worth of the 
total economy. 
1.67. A dimension is added to the usefulness of a number of national accounts figures by 
calculating these figures per head. For broad aggregates such as GDP or national income or 
household final consumption, the denominator commonly used is the total (resident) 
population. When sub-sectoring the accounts or part of the accounts of the household 
sector, data on the number of households and the number of persons belonging to each sub-
sector are also necessary*1). 
D) THE INPUT-OUTPUT FRAMEWORK*2) 
1.68. The input-output framework consists of supply and use tables by industry, tables linking 
the supply and use tables to the sector accounts and input-output tables by homogeneous 
branch (product). 
1.69. Supply and use tables are matrices (rows of products, columns of industries) showing how 
supplies of products originate from domestic industries and imports and how these supplies 
are allocated between various intermediate or final uses, including exports. They also 
incorporate the structure of production costs and the income generated in that production, 
as they include, for each industry, the flows recorded in the goods and services account and 
in the current accounts calculable by industry. 
The supply and use tables are the coordinating framework for all tables by industry and 
(or) by product, which include data on labour inputs, gross fixed capital formation, stocks 
of fixed assets, detailed price indices - and thus describe in detail cost structure, income 
generated, employment, labour productivity, capital intensity. 
1.70. It is possible to link the supply and use tables to the sector accounts by cross-classifying 
output, intermediate consumption and the components of value added by sector and by 
industry. 
1.71. Product-by-product input-output tables are conceptually different from supply and use 
tables by industry, as they employ a product classification for both rows and columns. 
(i) 
(2) See chapter XI, "Population and labour inputs". 
See chapter IX, "The input-output framework". 
- 2l> 
(3) 
CHAPTER II 
UNITS AND GROUPINGS OF UNITS 
2>3 -31 
2.01. The economy of a country is the outcome of the activity of a very large number of units 
which carry out numerous transactions of various kinds for purposes of production, finance, 
insurance, redistribution and consumption. 
2.02. The units and groupings of units used in national accounts must be defined with reference to 
the kind of economic analysis for which they are intended, and not in terms of the types of 
unit usually employed in statistical inquiries. These latter units (enteiprises, holding 
companies, kind-of-activity units, local units, government departments, non-profit 
institutions, households, etc.) may not always be satisfactory for the purposes of national 
accounts, since they are generally based on traditional criteria of a legal, administrative or 
accounting nature. 
Statisticians should take into account the definitions of units of analysis used in the ESA, in 
order to ensure that in the surveys in which actual data are collected all the elements of 
information needed to compile data based on the units of analysis used in the ESA are 
gradually introduced. 
2.03. A feature of the system is the use of three types of unit corresponding to two very different 
ways of subdividing the economy. To analyse the process of production, it is essential to 
select units which bring out relationships of a technico-economic nature; to analyse flows 
affecting income, capital and financial transactions and balance sheets, it is essential to 
select units which make it possible to study behavioural relationships among economic 
agents. 
Given these two objectives, institutional units appropriate for the analysis of economic 
behaviour, local kind-of-activity units and units of homogeneous production appropriate for 
the analysis of technico-economic relationships are defined later in this chapter. In practice, 
these three types of unit are formed by combining or subdividing the basic units of statistical 
inquiries or sometimes received directly from statistical inquiries. Before giving precise 
definitions of these three types of unit used in the ESA, it is necessary to define the limits of 
the national economy. 
THE LIMITS OF THE NATIONAL ECONOMY 
2.04. The units, whether institutional, local kind-of-activity or of homogeneous production, which 
constitute the economy of a country and whose transactions are recorded in the ESA, are 
those which have a centre of economic interest on the economic territory of that country. 
These units, known as resident units, may or may not have the nationality of that country, 
may or may not be legal entities, and may or may not be present on the economic territory of 
the country at the time they carry out a transaction. Having thus defined the limits of the 
national economy in terms of resident units, it is necessary to define the meaning of the 
terms economic territory and centre of economic interest. 
T? -
2.05. The term economic territory means: 
a) the geographic territory administered by a government within which persons, goods, 
services and capital move freely 
b) any free zones, including bonded warehouses and factories under customs control 
c) the national air-space, territorial waters and the continental shelf lying in international 
waters, over which the country enjoys exclusive rightsO) 
d) territorial enclaves (i.e. geographic territories situated in the rest of the world and used, 
under international treaties or agreements between States, by general government 
agencies of the country (embassies, consulates, military bases, scientific bases, etc.)) 
e) deposits of oil, natural gas, etc. in international waters outside the continental shelf of 
the country, worked by units resident in the territory as defined in the preceding sub­
paragraphs. 
2.06. The economic territory does not include extraterritorial enclaves (i.e. the parts of the 
country's own geographic territory used by general government agencies of other countries, 
by the Institutions of the European Union or by international organisations under 
international treaties or agreements between States (2)). 
2.07. The term centre of economic interest indicates the fact there exists some location within the 
economic territory on, or from, which a unit engages, and intends to continue to engage, in 
economic activities and transactions on a significant scale, either indefinitely or over a finite 
but long period of time (a year or more). It follows that a unit which carries out such 
transactions on the economic territory of several countries is deemed to have a centre of 
economic interest in each of them. The ownership of land and buildings within the economic 
territory is deemed to be sufficient in itself for the owner to have a centre of economic 
interest there. 
2.08. On the basis of these definitions, units deemed to be residents of a country can be sub­
divided into: 
a) units which are principally engaged in production, finance, insurance or redistribution, 
in respect of all their transactions except those relating to ownership of land and 
buildings 
b) units which are principally engaged in consumptions), in respect of all their 
transactions except those relating to ownership of land and buildings 
c) all units in their capacity as owners of land and buildings with the exception of owners 
of extraterritorial enclaves which are part of the economic territory of other countries or 
are States sui generis (see 2.06.). 
* ' Fishing boats, other ships, floating platforms and aircraft are treated in the ESA just like any other mobile equipment, whether owned 
and/or operated by units resident in the country, or owned by non-residents and operated by resident units. Transactions involving the 
ownership (gross fixed capital formation) and use (renting, insurance, etc) of this type of equipment are attributed to the economy of 
the country of which the owner and/or operator respectively are resident.In cases of financial leasing a change of ownership is 
assumed. 
' ' The territories used by the Institutions of the European Union and international organisations thus constitute the territories of States sui 
generis. The feature of such States is that the only residents are the institutions themselves (see 2.10.e). 
(3) Consumption is not the only possible activity of households. Households may as entrepreneurs engage in any kind of economic 
activity. 
2.09. In the case of units which are principally engaged in production, finance, insurance or 
redistribution, in respect of all their transactions except those relating to ownership of land 
and buildings, the following two cases may be distinguished: 
a) activity conducted exclusively on the economic territory of the country: units which 
carry out such activity are resident units of the country 
b) activity conducted for a year or more on the economic territories of several countries: 
only that part of the unit which has a centre of economic interest on the economic 
territory of the country is deemed to be a resident unit. It may be: 
- either an institutional resident unit (see 2.12.), whose activities conducted for a year 
or more in the rest of the world are excluded and treated separatelyO) 
- or a.notional resident unit (see 2.15.), in respect of the activity conducted in the 
country for a year or more by a unit which is resident in another countryO). 
2.10. In the case of units which are principally engaged in consumption, except in their capacity as 
owners of land and buildings, households which have a centre of economic interest in the 
country are deemed to be resident units, even if they go abroad for short periods (less than a 
year). They include, in particular, the following: 
a) border workers, i.e. people who cross the frontier daily to work in a neighbouring 
country 
b) seasonal workers, i.e. people who leave the country for several months, but less than a 
year, to work in another country in sectors in which additional manpower is needed 
periodically 
c) tourists, patients, students(2), visiting officials, businessmen, salesmen, artists and crew 
members who travel abroad 
d) locally recruited staff working in the extraterritorial enclaves of foreign governments 
e) the staff of the Institutions of the European Union and of civilian or military 
international organisations which have their headquarters in extra-territorial enclaves 
f) the official, civilian or military representatives of the government of the country 
(including their households) established in territorial enclaves. 
2.11. All units in their capacity as owners of land and/or buildings which form part of the 
economic territory are deemed to be resident units or notional resident units (see 2.15.) of 
the country in which the land or buildings in question are located. 
' ' It is only where such activity is carried on for less than a year that it should not be separated from the activities of the producer 
institutional unit. This may also be done where the activity, though conducted for a year or more, is insignificant, and in all 
circumstances for the installation of equipment abroad. But a unit which is resident in another country and which is carrying out a 
construction activity in the country for a duration of less than a year is deemed to have a centre of economic interest on the economic 
territory of the country if the output of the construction activity constitutes gross fixed capital formation. Such a unit should therefore 
be treated as a notional resident unit. 
' ' Students are always treated as residents, however long they study abroad. 
-34-
THE INSTITUTIONAL UNITS 
2.12. Definition: The institutional unit is an elementary economic decision-making centre 
characterised by uniformity of behaviour and decision-making autonomy in the 
exercise of its principal function. A resident unit is regarded as constituting an 
institutional unit if it has decision-making autonomy in respect of its principal 
function and either keeps a complete set of accounts or it would be possible and 
meaningful, from both an economic and legal viewpoint, to compile a complete 
set of accounts if they were required. 
In order to be said to have autonomy of decision in respect of its principal function, a 
unit must : 
* be entitled to own goods or assets in its own right ; it will therefore be able to 
exchange the ownership of goods or assets in transactions with other institutional 
units, 
* be able to take economic decisions and engage in economic activities for which it is 
itself held to be directly responsable and accountable at law, 
* be able to incur liabilities on its own behalf, to take on other obligations or further 
commitments and to enter into contracts. 
In order to be said to keep a complete set of accounts, a unit must keep accounting 
records covering all its economic and financial transactions carried out during the 
accounting period, as well as a balance sheet of assets and liabilities. 
2.13. The following principles apply whenever entities do not clearly possess both the 
characteristics of an institutional unit: 
a) households always enjoy autonomy of decision in respect of their principal function and 
must therefore be institutional units, even though they do not keep a complete set of 
accounts 
b) entities which do not keep a complete set of accounts, and for which it would not be 
possible or meaningful to complete a complete set of accounts if required, are combined 
with the institutional units into whose accounts their partial accounts are integrated 
c) entities which, while keeping a complete set of accounts, have no autonomy of decision 
in the exercise of their principal function are combined with the units which control 
them 
d) entities which satisfy the definition of an institutional unit are treated as such even if 
they do not publish their accounts 
e) entities forming part of a group of enterprisesO ) and keeping a complete set of accounts 
are deemed to be institutional units even if they have partially surrendered their 
autonomy of decision to the central body (the holding corporation) responsible for the 
general direction of the group; the holding corporation itself is deemed to be an 
institutional unit distinct from the units which it controls, unless b) is applicable. 
' ' The enterprise does not constitute a separate statistical unit in the ESA 1995. In accordance with the SNA the term "enterprise" is used 
for institutional units engaged in production. 
-35-
f) quasi-corporations keep a complete set of accounts and have no independent legal 
status. However, they have an economic and financial behaviour that is different from 
that of their owners and similar to that of corporations. Therefore they are deemed to 
have autonomy of decision and are considered as distinct institutional units. 
2.14. Holding corporations are institutional units whose main function is to control and direct a 
groupr of subsidiaries. 
2.15. Notional resident units are defined as: 
those parts of non-resident units which have a centre of economic interest (that is in 
most cases which engage in economic transactions for a year or more or which carry out 
a construction activity for a period of less than a year if the output constitutes gross 
fixed capital formation) on the economic territory of the country; 
non-resident units in their capacity as owners of land or buildings on the economic 
territory of the country, but only in respect of transactions affecting such land or 
buildings. 
Notional resident units, even if they keep only partial accounts and may hot always enjoy 
autonomy of decision, are treated as institutional units. 
2.16. In conclusion, the following are deemed to be institutional units: 
units which have a complete set of accounts and autonomy of decision: 
a) private and public corporations 
b) co-operatives or partnerships recognized as independent legal entities 
c) public enterprises which by virtue of special legislation are recognized as independent 
legal entities 
d) non-profit institutions recognized as independent legal entities 
e) agencies of general government. 
units which have a complete set of accounts and which are deemed to have autonomy of 
decision: 
f) quasi-corporations (see 2.13. f) 
units which do not necessarily keep a complete set of accounts, but which by convention 
are deemed to have autonomy of decision : 
g) households 
h) notional resident units (see 2.15.). 
36 
THE INSTITUTIONAL SECTORS 
2.17. The need for aggregation means that it is impossible to consider individual institutional units 
separately; they must be combined into groups called institutional sectors or simply sectors, 
some of which are divided into sub-sectors. 
The following sectors and sub-sectors are distinguished in the ESA : 
Sectors and sub-sectors National Foreign 
Public private controlled 
Non-financial corporations 
Financial corporations S.ll 
S.12 S.1100T 
Central Bank S.121 
Other monetary financial institutions S.122 
Other financial intermediaries,except 
insurance corporations and pension funds S. 123 
Financial auxiliaries S. 124 
Insurance corporations and pension funds S. 125 S. 11002 S.11003 
S.12201 S12202 
S.12301 
S.12401 
S.12501 S.12302 
S. 12402 
S.12502 S.12503 S. 12203 
S.12303 
S. 12403 
General government 
Central government 
State government 
Local government 
Social security funds S.13 
S.1311 
S.1312 
S.1313 
S.1314 
Households 
Employers (including own-
account workers) 
Employees 
Recipients of property incomes 
Recipients of pensions 
Recipients of other transfer incomes 
Others 
Non-profit institutions serving 
households 
Rest of the world 
The European Union 
The member countries of the EU 
The institutions of the EU 
Third countries and international 
organizations S.14 
S.141 + S.142 
S.143 
S.1441 
S.1442 
S.1443 
S.145 
S.15 
S.2 
S.21 
S.211 
S.212 
S.22 
37 
2.18. Each of the sectors and sub-sectors groups together the institutional units which have a 
similar type of economic behaviour. 
The institutional units are grouped into sectors on the basis of their principal function, which 
is considered to be indicative of their economic behaviour; if the principal function of the 
unit is not apparent, it may be deduced from the principal resources of the unit. A sector is 
divided into sub-sectors according to the criteria relevant to that sector; this permits a more 
precise,description of the economic behaviour of the units. 
The accounts for sectors and sub-sectors record all the activities, whether primary or 
secondary, of the institutional units covered. 
Each institutional unit belongs to only one sector or sub-sector. 
2.19. When the principal function of the unit is to produce goods and services, it is necessary - in 
deciding the sector to which it should be allocated - to distinguish first of all whether the 
output of goods and services is : 
market output (P. 11 ) (see 3.17.), 
output produced for own final use (P. 12) (see 3.22.) or 
other non-market output (P. 13) (see 3.25.). 
Institutional units most of whose output is market outputO) are classified in the sectors Non-
financial corporations (S.l 1), Financial corporations (S.12) or Households (S.14). 
Output produced for own final use and retained for own final consumption can only be 
produced by households (see 3.23.). Institutional units most of whose output is output 
produced for own final use and retained for own final consumption^) are classified in the 
Households sector (S.14). 
Institutional units most of whose output is other non-market outputw) are classified in the 
sectors General Government (S.l3) or Non-profit institutions serving households (S.l5). 
' ' Market output is output of producers whose sales (excluding taxes on products) cover generally the major part of their production costs 
(see 3.27.). 
' ' Main examples of such output are housing services produced by owner-occupiers, agricultural products retained by farmers or 
household services produced by employing paid staff (see 3.23). 
( ' Other non-market output covers output that is provided free, or at economically not significant prices to other institutional units (see 
3.25). 
-38-
2.20. The following table shows the principal functions and the nature of the principal resources 
which are characteristic of each sector : 
Sector Type of economic behaviour 
Principal function Principal resources 
Non-financial corporations Production of market goods and Receipts from disposal of market 
(see 2.21.) (S. 11) non-financial services output 
Financial corporations Financial intermediation Funds derived from liabilities 
(5.12) including insurance incurred; interest, commissions; 
Auxiliary financial activities fees; contractual premiums; 
(see 2.32.) 
General government Production and supply of non- Compulsory levies on units in 
(5.13) market output for collective and other sectors, received directly or 
individual consumption and indirectly. 
carrying out transactions 
intended to redistribute national 
income and wealth 
(see 2.68.) 
Households Compensation of employees, 
(5.14) ' property income, transfers from 
Consumption other sectors 
- as consumers 
Production of market output; 
- as entrepreneurs production of goods and non- Receipts from disposal of market 
financial services for own final output 
consumption Imputed receipts from products 
(see 2.75.) for own final consumption 
Non-profit institutions serving Production and supply of non- Voluntary contributions made by 
households market output for collective and households as consumers; 
individual consumption income from property 
(see 2.87.) (S.15) 
59-
The rest of the world (S.2) is a grouping of institutional units (see 2.89.) which is not characterised 
by any principal function or principal resources; it groups together non-resident institutional units 
insofar as they carry out transactions with resident institutional units. 
Non-financial corporations (S.ll) 
2.21. Definition: The sector non-financial corporations (S.ll) consists of institutional units 
whose distributive and financial transactions are distinct from those of their 
owners and which are principally engaged in the production of market goods 
and non-financial services. Most of the output of these units is market output 
(see 2.19.) 0). 
2.22. The sector non-financial corporations also includes non-financial quasi-corporations. 
2.23. The term "non-financial corporations " denotes all bodies recognized as independent legal 
entities, whose main activity is the production of goods and non-financial services for sale 
on the market. 
The institutional units covered are the following: 
a) private and public corporations which are principally engaged in the production of 
market goods and non-financial services 
b) co-operatives and partnerships recognized as independent legal entities which are 
principally engaged in the production of market goods and nonrfinancial services 
c) public enterprises which by virtue of special legislation are recognized as independent 
legal entities and which are principally engaged in the production of market goods and 
non-financial services 
d) non-profit institutions or associations serving non-financial corporations, which are 
recognized as independent legal entities and which are principally engaged in the 
production of market goods and non-financial services (2) 
e) holding corporations controlling (see 2.26.) a group of corporations, if the preponderant 
type of activity of the group of corporations as a whole - measured on the basis of value 
added - is the production of market goods and non-financial services 
f) private and public quasi-corporations which are principally engaged in the production of 
market goods and non-financial services. 
2.24. The term "non-financial quasi-corporations" denotes all bodies without independent legal 
status which are principally engaged in the production of market goods and non-financial 
services and meet the conditions qualifying them as quasi-corporations (see 2.13. f). 
Quasi-corporations must keep a complete set of accounts and are operated as if they were 
corporations. The de facto relationship to their owner is that of a corporation to their 
shareholders. 
(2) ^ ' fly convention, market regulatory agencies whose sole or principal activity is to buy, hold and sell agricultural and other food products 
are classified under S.ll (see 2.69.a note 1 ). 
Including institutions financed by voluntary contributions of a quasi-fiscal nature, levied on enterprises by units whose principal 
activity is to provide services in exchange. These contributions are considered as purchases of market services. 
-40-
Thus non-financial quasi-corporations owned by households, government units or non-profit 
institutions are grouped with non-financial corporations in the non-financial corporations 
sector. 
The existence of a complete set of accounts, including balance sheets, is not a sufficient 
condition for enterprises to be treated as quasi-corporations. Therefore, partnerships and 
public enterprises other than those included under 2.23. a), b), c) and f) and sole 
proprietorships - even if they keep a complete set of accounts - are in general not distinct 
institutional units because they do not enjoy autonomy of decision, their management being 
under the control of the households, non-profit institutions or governments which own them. 
2.25. The sector non-financial corporations also includes all notional resident units (see 2.15.) 
which, by convention, are treated as if they were quasi-corporations. 
2.26. Control over a corporation is defined as the ability to determine general corporate policy by 
choosing appropriate directors, if necessary. 
A single institutional unit, another corporation, or a household or a government unit secures 
control over a corporation by owning more than half the voting shares or otherwise 
controlling more than half the shareholders' voting power. In addition, government secures 
control over a corporation as a result of special legislation decree or regulation which 
enpowers the government to determine corporate policy or to appoint the directors. 
In order to control more than half the shareholders' voting power, an institutional unit needs 
not own any of the voting shares itself. A corporation C could be a subsidiary of another 
corporation B in which a third corporation A owns a majority of the voting shares. 
Corporation C is said to be subsidiary of corporation B when : either corporation B controls 
more than half of the shareholders' voting power in corporation C or corporation B is a 
shareholder in C with the right to appoint or remove a majority of the directors of C. 
2.27. The sector non-financial corporations is divided into three sub-sectors: 
public non-financial corporations (S. 11001 ) 
national private non-financial corporations (S.ll002) 
foreign controlled non-financial corporations (S. 11003). 
Sub-sector : Public non-financial corporations (S.l 1001) 
2.28. Definition: The sub-sector public non-financial corporations consists of all non-financial 
corporations and quasi-corporations that are subject to control (see 2.26.) by 
government units. 
2.29. Public quasi-corporations are quasi-corporations owned directly by government units. 
Sub-sector: National private non-financial corporations (S.l 1002) 
2.30. Definition: The sub-sector national private non-financial corporations consists of all non-
financial corporations and quasi-corporations that are not controlled by 
government or by non-resident institutional units. This sub-sector includes all 
the non-profit institutions which are included in the non-financial corporate 
sector (see 2.23.d). 
This sub-sector includes corporate and quasi-corporate direct foreign investment enterprises 
(see 4.65.) not classified in the sub-sector foreign controlled non-financial corporations 
(S.l 1003). 
Sub-sector: Foreign controlled non-financial corporations (S.l 1003) 
2.31. Definition: The sub-sector foreign controlled non-financial corporations consists of all 
non-financial corporations and quasi-corporations that are controlled (see 2.26.) 
by non-resident institutional units. 
This sub-sector includes : 
all subsidiaries of non-resident corporations; 
all corporations controlled by a non-resident institutional unit that is not itself a 
corporation : for example, a corporation which is controlled by a foreign government; it 
includes corporations controlled by a group of non-resident units acting in concert; 
all branches or other unincorporated agencies of non-resident corporate or 
unincorporated enterprises which are notional resident units to be' treated as non-
financial quasi-corporations (see 2.25.). 
Financial corporations (S.12) 
2.32. Definition: The sector financial corporations (S.12) consists of all corporations and quasi-
corporations which are principally engaged in financial intermediation (financial 
intermediaries) and/or in auxiliary financial activities (financial auxiliaries).0) 
Financial intermediation is the activity in which an institutional unit acquires 
financial assets and at the same time incurs liabilities (see 2.34.) on its own 
account (see 2.33.) by engaging in financial transactions on the market (see 
2.37.- 2.38.). The assets and liabilities of the financial intermediaries have 
different characteristics, involving that the funds are transformed or repackaged 
with respect to maturity, scale, risk and the like in the financial intermediation 
process. 
Auxiliary financial activities are activities closely related to financial 
intermediation but which are not financial intermediation themselves (see 2.39.). 
2.33. Through the financial intermediation process, funds are channelled between third parties 
with a surplus on one side and those with a lack of funds on the other. A financial 
intermediary does not simply act as an agent for these other institutional units but places 
itself at risk by acquiring financial assets and incurring liabilities on its own account. 
(i) My convention, sector S.12 includes holding corporations which only control and direct a group of subsidiaries principally engaged in 
financial intermediation and/or in auxiliary financial activities (see 2.43.) and non-profit institutions recognized as independent legal 
entities serving financial corporations (sec 2.44.). 
42 
2.34. In the financial intermediation process, all categories of liabilities may be involved with the 
exception of the category other accounts payable (AF.7). 
The financial assets involved in the financial intermediation process may be classified in any 
category with the exception of the category insurance technical reserves (AF.6) but 
including the category other accounts receivable (factoring). In addition, financial 
intermediaries may invest their funds in non-financial assets including real estate. However, 
in order to be considered as a financial intermediary, a corporation should, in addition, incur 
liabilities on the market and transform funds. Therefore, real estate corporations (NACE 
division 70) are excluded. 
2.35. The primary function of insurance corporations and pension funds consists of the pooling of 
risks. The main liabilities of these institutions are insurance technical reserves (AF.6). The 
counterparts of the reserves are investments by the insurance corporations and pension 
funds, which, therefore, act as financial intermediaries. 
2.36. Mutual funds primarily incur liabilities through the issue of shares (AF.52). They transform 
these funds by acquiring financial assets and/or real estate. Therefore, mutual funds are 
classified as financial intermediaries. As with other corporations, any change in the value of 
their assets and liabilities other than their own shares is reflected in their own funds (see 
7.05.). Because the amount of own funds normally equals the value of the mutual fund's 
shares, any change in the value of the fund's assets and liabilities will be reflected in the 
market value of these shares. 
Mutual funds investing solely in real estate are also regarded as financial intermediaries. 
2.37. Financial intermediation, generally, is limited to financial transactions on the market. In 
other words, acquiring assets and incurring liabilities should be with the general public or 
specified and relatively large sub-groups thereof. Where the activity is limited to small 
groups of persons or families, generally, no financial intermediation takes place. In 
particular, financial intermediation does not include institutional units providing treasury 
services to a company group. These institutional units are allocated to a sector according to 
the predominant function of the company group within the economic territory. However, in 
cases where the institutional unit providing the treasury services is subject to financial 
supervision, it is classified in the financial corporations sector by convention. 
2.38. Exceptions to the general limitation of financial intermediation to financial transactions on 
the market may exist. Examples are municipal credit and savings-banks, which rely heavily 
on the municipality involved, or financial lease corporations depending on a parent group of 
companies in acquiring funds or in investing funds. However, their lending or their 
acceptance of savings should be independent of the municipality involved or the parent 
group, respectively, in classifying them as financial intermediaries. 
2.39. Auxiliary financial activities comprise auxiliary activities for realizing transactions in 
financial assets and liabilities or the transformation or repackaging of funds. Financial 
auxiliaries do not set themselves at risk by acquiring financial assets or incurring liabilities. 
They only facilitate financial intermediation. 
43 -
2.40. The institutional units included in the sector financial corporations (S.12) are the following: 
a) private or public corporations which are principally engaged in financial intermediation 
and/or in auxiliary financial activities; 
b) co-operatives and partnerships recognized as independent legal entities which are 
principally engaged in financial intermediation and/or in auxiliary financial activities; 
c) public enterprises, which by virtue of special legislation are recognised as independent 
legal entities, which are principally engaged in financial intermediation and/or in 
auxiliary financial activities; 
d) non-profit institutions recognised as independent legal entities which are principally 
engaged in financial intermediation and/or in auxiliary financial activities, or which are 
serving financial corporations; 
e) holding corporations (see 2.14.) if the group of subsidiaries within the economic 
territory as a whole is principally engaged in financial intermediation and/or in auxiliary 
financial activities; 
f) unincorporated mutual funds comprising investment portfolios owned by the group of 
participants, and whose management is undertaken, in general, by other finanical 
corporations. These funds are institutional units by convention, separate from the 
managing financial corporation; 
g) financial quasi-corporations: 
- unincorporated units principally engaged in financial intermediation and subject to 
regulation and supervision (in most cases classified in the other monetary financial 
institutions sub-sector or the insurance corporations and pension funds sub-sector) 
are deemed to enjoy autonomy of decision and to have autonomous management 
independent of their owners. Their economic and financial behaviour is similar to 
that of financial corporations. Therefore, they are treated as separate institutional 
units. Examples are branches of non-resident financial corporations; 
- other unincorporated units principally engaged in financial intermediation but not 
subject to regulation and supervision are only considered as financial quasi-
corporations if they meet the conditions qualifying them as quasi-corporations (see 
2.13.f); 
- unincorporated units principally engaged in auxiliary financial activities are only 
considered as financial quasi-corporations if they meet the conditions qualifying 
them as quasi-corporations (see 2.13.f). 
2.41. The financial corporations sector is subdivided into five sub-sectors: 
- The central bank (S.121); 
Other monetary financial institutions (S.l22); 
Other financial intermediaries, except insurance corporations and pension funds (S.l23); 
Financial auxiliaries (S.l24); 
Insurance corporations and pension funds (S. 125). 
-44 
The other monetary financial institutions sub-sector is regarded as equivalent to the other 
depository corporations sub-sector as defined in the 1993 SNA 4.88-4.94. While the 
definition of the other monetary financial institutions sub-sector (see 2.48.) is intended to 
cover those financial intermediaries through which the effects of the monetary policy of the 
central bank are transmitted to the other entities of the economy, the other depository 
corporations sub-sector is defined in the 1993 SNA with reference to measures of broad 
money. The combined sub-sectors S.121 and S.l22 coincide with the monetary financial 
institutions for statistical purposes as defined by the EMI (see 2.49.). 
2.42. With the exception of sub-sector S.121, each sub-sector may be further subdivided into: 
Public financial corporations; 
National private financial corporations; 
Foreign controlled financial corporations. 
The criteria for this subdivision are the same as for non-financial corporations (see 2.26.-
2.31.). 
2.43. Holding corporations which only control and direct a group of subsidiaries principally 
engaged in financial intermediation and/or in auxiliary financial activities are classified in 
the sub-sector other financial intermediaries except insurance corporations and pension 
funds (S.123).0) However, holding corporations which are financial corporations 
themselves are to be allocated to the sub-sectors according to the main type of financial 
activity. 
2.44. Non-profit institutions recognized as independent legal entities serving financial 
corporations, but not engaged in financial intermediation or auxiliary financial activities, are 
classified in the sub-sector financial auxiliaries (S.124). 
Sub-sector: The central bank (S.121) 
2.45. Definition: The sub-sector the central bank (S.121) consists of all financial corporations 
and quasi-corporations whose principal function is to issue currency, to 
maintain the internal and external value of the currency and to hold all or part 
of the international reserves of the country. 
2.46. The following financial intermediaries are classified in sub-sector S.121: 
a) the national central bank, also in the case where it is part of a European System of 
Central Banks; 
b) central monetary agencies of essentially public origin (e.g. agencies managing foreign 
exchange or issuing currency) which keep a complete set of accounts and enjoy 
autonomy of decision in relation to central government. Mostly these activities are 
performed either within central government or within the central bank. In these cases no 
separate institutional units exist. 
(i) The classification of holding corporations within the financial corporations sector deviates from the 1993 SNA 4.100 in order to 
maintain consistency with the monetary financial institutions for statistical purposes as defined by the EMI and with official statistics 
on insurance corporations. 
-45 -
2.47. Sub-sector S.121 does not include agencies and bodies, other than the central bank, which 
regulate or supervise financial corporations or financial markets. They are classified in sub-
sector S. 124 (see 2.58.g).(1) 
Sub-sector: Other monetary financial institutions (S.122) 
2.48. Definition: The sub-sector other monetary financial institutions (S.122) consists of all 
financial corporations and quasi-corporations, except those classified in the 
central bank sub-sector, which are principally engaged in financial 
intermediation and whose business is to receive deposits and/or close 
substitutes for deposits from institutional units other than monetary financial 
institutions, and, for their own account, to grant loans and/or to make 
investments in securities. 
2.49. The monetary financial institutions (MFIs) comprise the sub-sector the central bank (S.121) 
and the sub-sector other monetary financial institutions (S.122), and coincide with the 
monetary financial institutions for statistical purposes as defined by the EMI (see 2.41.). 
2.50. MFIs cannot be described simply as "banks", because they may possibly include some 
financial corporations which may not call themselves banks, and some which may not be 
permitted to do so in some countries, while some other financial corporations describing 
themselves as banks may not in fact be MFIs. In general, the following financial 
intermediaries are classified in sub-sector S.122: 
a) commercial banks, "universal" banks, "all-purpose" banks; 
b) savings banks (including trustee savings banks and savings banks and loan 
associations); 
c) post office giro institutions, postbanks, girobanks; 
d) rural credit banks, agricultural credit banks; 
e) co-operative credit banks, credit unions; 
f) specialized banks (e.g. merchant banks, issuing houses, private banks). 
2.51. The following financial intermediaries may also be classified in sub-sector S.122 where it is 
their business to receive repayable funds from the public whether in the form of deposits or 
in other forms such as the continuing issue of bonds and other comparable securities. 
Otherwise, they should be classified in sub-sector S.123: 
a) corporations engaged in granting mortgages (including building societies, mortgage 
banks and mortgage credit institutions); 
b) mutual funds, investment trusts and other collective investment schemes; 
c) municipal credit institutions. 
This is a deviation from the 1993 SNA 4.86 and 4.101. in order to maintain consistency with the monetary financial institutions for 
statistical purposes as defined by the EMI. 
-46-
(4) 
2.52. Sub-sector S.122 does not include: 
holding corporations which only control and direct a group consisting predominantly 
of other monetary financial institutions, but which are not other monetary financial 
institutions themselves. They are classified in sub-sector S.123 (see 2.43.); 
non-profit institutions recognized as independent legal entities serving other 
monetary financial institutions, but not engaged in financial intermediation. They are 
classified in sub-sector S.124 (see 2.44.). 
Sub-sector: Other financial intermediaries, except insurance corporations and pension 
funds (S.123) 
2.53. Definition: The sub-sector other financial intermediaries except insurance corporations and 
pension funds (S.123) consists of all financial corporations and quasi-
corporations which are principally engaged in financial intermediation by 
incurring liabilities in forms other than currency, deposits and/or close 
substitutes for deposits from institutional units other than monetary financial 
institutions, or insurance technical reserves. 
2.54. Sub-sector S.123 includes various types of financial intermediaries especially those which 
are predominantly engaged in long-term financing. In most cases this predominant maturity 
forms the basis of a distinction from the other monetary financial institutions sub-sector. 
Based on the non-existence of liabilities in the form of insurance technical reserves, the 
borderline with the insurance corporations and pension funds sub-sector can be determined. 
2.55. In particular, the following financial corporations and quasi-corporations are classified in 
sub-sector S. 123 unless they are MFIs: 
a) corporations engaged in financial leasing; 
b) corporations engaged in hire purchase and the provision of personal or commercial 
finance; 
c) corporations engaged in factoring; 
d) security and derivative dealers (on own account); 
e) specialized financial corporations such as venture and development capital companies, 
export/import financing companies; 
f) financial vehicle corporations, created to be holders of securitized assets; 
g) financial intermediaries which receive deposits and/or close substitutes for deposits 
from MFIs only; 
h) holding corporations which only control and direct a group of subsidiaries principally 
engaged in financial intermediation and/or in auxiliary financial activities, but which are 
not financial corporations themselves (see 2.43.). 
2.56. Sub-sector S.123 does not include non-profit institutions recognized as independent legal 
entities serving other financial intermediaries except insurance corporations and pension 
funds, but not engaged in financial intermediation. They are classified in sub-sector S.124 
(see 2.44.). 
47 
Sub-sector: Financial auxiliaries (S.124) 
2.57. Definition: The sub-sector financial auxiliaries (S.124) consists of all financial 
corporations and quasi-corporations which are principally engaged in auxiliary 
financial activities, that is to say activities closely related to financial 
intermediation but which are not financial intermediation themselves (see 
2.39.). 
2.58. In particular, the following financial corporations and quasi-corporations are classified in 
sub-sector S.124: 
a) insurance brokers, salvage and average administrators, insurance and pension 
consultants, etc.; 
b) loan brokers, securities brokers, investment advisers, etc.; 
c) flotation corporations that manage the issue of securities; 
d) corporations whose principal function is to guarantee, by endorsement, bills and similar 
instruments; 
e) corporations which arrange derivative and hedging instruments, such as swaps, options 
and futures (without issuing them); 
f) corporations providing infrastructure for financial markets; 
g) central supervisory authorities of financial intermediaries and financial markets when 
they are separate institutional units; 
h) managers of pension funds, mutual funds, etc.; 
i) corporations providing stock exchange and insurance exchange; 
j) non-profit institutions recognized as independent legal entities serving financial 
corporations, but not engaged in financial intermediation or auxiliary financial activities 
(see 2.44.). 
2.59. Sub-sector S.124 does not include holding corporations which only control and direct a 
group of subsidiaries principally engaged in auxiliary financial activities, but which are not 
financial auxiliaries themselves. They are classified in sub-sector S.123 (see 2.43.). 
Sub-sector: Insurance corporations and pension funds (S.125) 
2.60. Definition: The sub-sector insurance corporations and pension funds (S. 125) consists of all 
financial corporations and quasi-corporations which are principally engaged in 
financial intermediation as the consequence of the pooling of risks (see 2.35.). 
2.61. The insurance contracts administered might relate to individuals and/or groups, whether or 
not participation results from a general obligation imposed by government. Furthermore, 
social insurance contracts (see 4.83. - 4.91.) are sometimes a considerable part of the 
contracts administered. 
2.62. Sub-sector S.125 includes both captive insurance corporations and reinsurance corporations. 
-48 
2.63. Sub-sector S.125 does not include: 
institutional units which fulfil each of the three criteria listed in 2.74. They are 
classified in sub-sector S.l314; 
holding corporations which only control and direct a group consisting predominantly 
of insurance corporations and pension funds, but which are not insurance 
corporations and pension funds themselves. They are classified in sub-sector S.123 
(see 2.43.); 
non-profit institutions recognized as independent legal entities serving insurance 
corporations and pension funds, but not engaged in financial intermediation. They 
are classified in sub-sector S.124 (see 2.44.). 
2.64. The sub-sector insurance corporations and pension funds may be subdivided into: 
insurance corporations; 
(autonomous) pension funds. 
Autonomous pension funds are pension funds which have autonomy of decision and keep a 
complete set of accounts. They are therefore institutional units. Non-autonomous pension 
funds are not institutional units and remain part of the institutional unit that sets them up. 
2.65. Risks concerning individuals or groups could both be included in the activities of life and 
non-life insurance corporations. Some insurance corporations might limit their activities to 
group contracts only. These corporations are allowed to insure every group. 
2.66. Pension funds can be described as institutions which insure group risks relating to social 
risks and needs (see 4.84.) of the insured persons. The typical groups of participants in such 
policies include employees of a single enterprise or a group of enterprises, employees of a 
branch or industry, and persons having the same profession. The benefits included in the 
insurance contract might encompass benefits which are paid after death of the insured to the 
widow(er) and children (mainly death in service), benefits which are paid after retirement 
and benefits which are paid after the insured became disabled. 
2.67. In some countries all these types of risks could be insured equally well by life insurance 
corporations as by pension funds. In other countries some of these classes of risks have to be 
insured through life insurance corporations. In contrast to life insurance corporations, 
pension funds are restricted (by law) to specified groups of employees and self-employed. 
General government (S.13) 
2.68. Definition: The sector general government (S.13) includes all institutional units which are 
principally engaged in the production of (other) non-market goods and services 
(see 3.25.), and intended for individual and collective consumption and/or in 
the redistribution of national income and wealth. The principal resources of 
these units are derived directly or indirectly from compulsory payments made 
by units belonging to other sectors. 
49 
2.69. The institutional units included in sector S.l3 are the following: 
a) general government entities (excluding public enterprises established as public 
corporations or, by virtue of special legislation, recognized as independent legal entities, 
or quasi-corporations, when any of these are classified in the non-financial or financial 
sectors) which administer and finance a group of activities, principally providing non-
market goods and services, intended for the benefit of the community 0). 
b) non-profit institutions recognized as independent legal entities which are principally 
engaged in the production of non-market goods and services, which are controlled by 
general government and whose principal resources other than the proceeds of sales are 
derived from payments made by the government departments specified in a) above. 
c) autonomous pension funds if the three requirements of paragraph 2.74. are met. 
2.70. The general government sector is divided into four sub-sectors: 
central government (S. 1311 ) 
state government (S. 1312) 
local government (S. 1313 ) 
social security funds (S. 1314). 
Sub-sector: Central government (S.1311) 
2.71. Definition: The sub-sector central government includes all administrative departments of 
the State and other central agencies whose competence extends over the whole 
economic territory, except for the administration of social security funds. 
Included in sub-sector S.1311 are those non-profit institutions which are controlled by 
central government and whose competence extends over the whole economic territory. 
Sub-sector: State government (S.1312) 
2.72. Definition: The state government sub-sector consists of state governments which are 
separate institutional units exercising some of the functions of government at a 
level below that of central government and above that of the governmental 
institutional units existing at local level, except for the administration of social 
security funds. 
Included in sub-sector S.1312 are those non-profit institutions which are controlled by state 
governments and whose competence is restricted to the economic territories of the states. 
Sub-sector: Local government (S.1313) 
2.73. Definition: The sub-sector local government includes those types of public administration 
whose competence extends to only a local part of the economic territory, apart 
from local agencies of social security funds. 
Included in sub-sector S.1313 are those non-profit institutions which are controlled by local 
governments and whose competence is restricted to the economic territories of the local 
governments. 
' ' By convention, market regulatory organisations which are either exclusively or principally simple distributors of subsidies are 
classified in S.l3, sub-sector central government S.1311. However, those organisations which arc exclusively or principally engaged 
in buying, holding and selling agricultural or food products are classified in S.l l(see 2.21., note (1)). 
-50 
Sub-sector : Social security funds (S.1314) 
2.74. Definition: The sub-sector social security funds includes all central, state and local 
institutional units whose principal activity is to provide social benefits and 
which fulfil each of the following three criteria : 
- by law or by regulation - with the exclusion of regulations concerning 
government employees - certain groups of the population are obliged to 
participate in the scheme or to pay contributions; 
- general government is responsible for the management of the institution in 
respect of the settlement or approval of the contributions and benefits 
independently from its role as supervisory body or employer; 
- general government guarantees the payment of the benefits. 
Households (S.14) 
2.75. Definition: The households sector (S.14) covers individuals or groups of individuals as 
consumers and possibly also as entrepreneurs producing market goods and non-
financial and financial services provided that, in the latter case, the 
corresponding activities are not those of separate entities treated as quasi-
corporations. It also includes individuals or groups of individuals as producers 
of goods and non-financial services for exclusively own final consumption (see 
3.22.-3.23.). 
Households as consumers may be defined as small groups 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. The criteria of the existence of family or emotional 
ties may be added. 
The principal resources of these units are derived from the compensation of 
employees, property income, transfers from other sectors or the receipts from 
disposal of market products or the imputed receipts from output of products for 
own final consumption. 
2.76. The households sector includes: 
individuals or groups of individuals whose principal function is consumption; 
persons living permanently in institutions who have little or no autonomy of action or 
decision in economic matters (e.g. members of religious orders living in monasteries, 
long-term patients in hospitals, prisoners serving long sentences, old persons living 
permanently in retirement homes). Such people are treated as comprising, together, a 
single institutional unit, that is, a single household; 
individuals or groups of individuals whose principal function is consumption and that 
produce goods and non-financial services for exclusively own final consumption; only 
two categories of services produced for own final consumption are included within the 
system: services of owner-occupied dwellings and domestic services produced by paid 
employees; 
sole proprietorships and partnerships without independent legal status - other than those 
treated as quasi-corporations - whose principal function is the production of market 
goods and services ; 
51 -
non-profit institutions serving households, which do not have independent legal status 
or those which do but are of only minor importance (see 2.88.). The principal resources 
of these institutions are derived from voluntary contributions by households in their 
capacity as consumers and from property income. 
2.77. The households sector is subdivided into six sub-sectors : 
employers (including own-account workers) (S.141 +S.142) 
employees (S.l43) 
recipients of property incomes (S. 1441 ) 
recipients of pensions (S. 1442) 
recipients of other transfer incomes (S. 1443) 
- others (S. 145). 
2.78. Households are allocated to sub-sectors according to the largest income category (employers' 
income, compensation of employees, etc.) of the household as a whole. When more than one 
income of a given category is received within the same household, the classification must be 
based on the total household income within each category. 
Sub-sector : Employers (including own-account workers) (S.141 + S. 142) 
2.79. Definition: The sub-sector employers (including own-account workers) consists of the 
group of households for which the (mixed) incomes (B3) accruing to the 
owners of household unincorporated enterprises from their activity as 
producers of market goods and services with or without paid employees are the 
largest source of income for the household as a whole, even if it does not 
always account for more than a half of total household income. 
Sub-sector : Employees (S.l43) 
2.80. Definition: The sub-sector employees consists of the group of households for which the 
income accruing from compensation of employees (Dl) is the largest source of 
income for the household as a whole. 
Sub-sector : Recipients of property incomes (S.1441) 
2.81. Definition: The sub-sector recipients of property incomes consists of the group of 
households for which property income (D4) is the largest source of income for 
the household as a whole. 
Sub-sector : Recipients of pensions (S.1442) 
2.82. Definition : The sub-sector recipients of pensions consists of the group of households for 
which the income accruing from pensions is the largest source of income for 
the household as a whole. 
Pension households are households whose largest income consists of retirement or other 
pensions, including pensions from previous employers. 
52 
Sub-sector : Recipients of other transfer incomes (S.1443) 
2.83. Definition : The sub-sector recipients of other transfer incomes consists of the group of 
households for which the income accruing from other current transfers is the 
largest source of income for the household as a whole. 
Other current transfers are all current transfers other than property income, pensions and 
income of persons living permanently in institutions. 
Sub-sector : Others (S. 145) 
2.84. Definition: The sub-sector others consists of persons living permanently in institutions. 
Persons living permanently in institutions are classified separately because the criterion of 
the largest source of income does not allow a meaningful classification of these persons in 
one of the foregoing sub-sectors. 
2.85. If the main income source of the household as a whole is not available for sectoring 
purposes, the income of the reference person constitutes the second-best characteristic to be 
used for classifying purposes. The reference person of a household is normally the person 
with the largest income. If the latter information is not available, the income of the person 
who states that he/she is the reference person may be used for sub-sectoring households. 
2.86. However, other criteria may be appropriate and needed for different kinds of analysis or as 
the basis for policy-making, e.g. breakdown of households as entrepreneurs by activity : 
agricultural households; non-agricultural households (industry, services for sale, services 
provided free). 
Non-profit institutions serving households (S.15) 
2.87. Definition: The sector non-profit institutions serving households (NPISHs) (S.15) consists 
of non-profit institutions which are separate legal entities, which serve 
households and which are principally engaged in the production of non-market 
goods and services intended for particular groups of households. Their 
principal resources, apart from those derived from occasional sales, are derived 
directly or indirectly from voluntary contributions in cash or in kind from 
households in their capacity as consumers, from payments made by general 
governmentsC1) and from property income. 
2.88. Where these institutions are not very important, they are not included in this sector, their 
transactions being mixed up with those of households (S.14). 
The NPISHs sector includes the following main kinds of NPISHs that provide non-market 
goods and services to households : 
Trade unions, professional or learned societies, consumers' associations, political 
parties, churches or religious societies (including those financed but not controlled by 
governments), and social, cultural, recreational and sports clubs; 
Charities, relief and aid organizations financed by voluntary transfers in cash or in 
kind from other institutional units. 
*• ' NPIs financed and controlled by general government are classified in the general government sector (see 2.69.b). 
-53-
Sector S.15 includes charities, relief or aid agencies serving non-resident units and excludes 
entities where membership gives right to a predetermined set of goods and services. 
Rest of the world (S.2) 
2.89. Definition: The rest of the world (S.2) is a grouping of units without any characteristic 
functions and resources; it consists of non-resident unitsO) insofar as they are 
engaged in transactions with resident institutional units, or have other 
economic links with resident units. Its accounts provide an overall view of the 
economic relationships linking the national economy with the rest of the world. 
2.90. The rest of the world is not a sector for which complete sets of accounts have to be kept, 
although it is often convenient to describe the rest of the world as if it were a sector. Sectors 
are obtained by disaggregating the total economy to obtain more homogeneous groups of 
resident institutional units, which are similar in respect to their economic behaviour, their 
objectives and functions. This is not the case for the sector rest of the world: there are 
recorded the transactions and other flows of non-financial and financial corporations, non­
profit institutions, households and general government with non-resident institutional units 
and other economic relationships between residents and non-residents, e.g. claims by 
residents on non-residents. 
2.91. It should be noted that the rule whereby the accounts for the rest of the world include only 
transactions carried out between resident institutional units and non-resident units is subject 
to the following exceptions: 
a) the services of transport (up to the border of the exporting country) provided by resident 
units in respect of imported goods are shown in the rest of the world accounts with fob 
imports, even though they are produced by resident units (see 3.114.); 
b) transactions in foreign assets between residents belonging to different sectors are shown 
in the detailed financial accounts for the rest of the world; although they do not affect 
the country's financial position vis-à-vis the rest of the world, they affect the financial 
relationships of individual sectors with the rest of the world; 
c) transactions in the country's liabilities between non-residents belonging to different 
geographical zones are shown in the geographical breakdown of the rest of the world 
accounts. Although these transactions do not affect the country's overall liability to the 
rest of the world, they affect its liabilities to different parts of the world. 
2.92. The sector rest of the world (S.2) is subdivided into: 
the European Union (S.21 ) 
- the member countries of the EU (S.211) 
- the Institutions of the EU (S .212) 
third countries and international organizations (S.22) 
Sector classification of standard legal types of producer units 
2.93. The following paragraphs summarise the principles underlying the classification of producer 
units into sectors, using the standard terminology for describing the main types of 
institutions. 
' ' Included are the Institutions of the EU and international organizations (see also 2.06.) 
- 54 -
SECTOR CLASSIFICATION OF PRODUCER UNITS FOR 
"\^^ PRINCIPAL FUNCTION 
^~^-^^ (otherwise, principal resources) 
STANDARD ^^\^^ 
LEGAL DESCRIPTION ^"^-^^ 
Private and public corporations 
Co-operatives and partnerships recognized as 
independent 
legal entities 
Public enterprises which by virtue of special 
legislation are recognized as independent legal 
entities 
Public enterprises 
not recognized as 
independent legal 
entities those with the 
characteristics of 
quasi-corporations 
the rest 
Non-profit institutions recognized as 
independent legal entities 
Partnerships not 
recognized as 
independent legal 
entities 
Sole proprietorships those with the 
characteristics 
of quasi-corporations 
the rest 
Holding corporations PRODUCTION OF 
MARKET 
GOODS AND NON-
FINANCIAL 
SERVICES 
S.ll non-financial 
corporations 
(see 2.23.a) 
S.ll non-financial 
corporations 
(see 2.23.b) 
S.ll non-financial 
corporations 
(see 2.23.c) 
S.ll non-financial 
corporations 
(see2.23.f) 
S.13 general 
government 
(see 2.69.a) 
S.ll non-financial 
corporations 
(see 2.23.d) 
S.ll non-financial 
corporations 
(see 2.23 .f) 
S.14 households 
(see 2.75.) FINANCIAL 
INTERMEDIATION 
S.12 financial 
corporations 
(see 2.40.a and 2.40.f) 
S.12 financial 
corporations 
(see 2.40.b) 
S.12 financial 
corporations 
(see 2.40.c) 
S.12 financial 
corporations 
(see 2.40.g) 
S.12 financial 
corporations 
(see 2.40.d) 
S.12 financial 
corporations 
(see 2.40.g) 
S.14 households 
(see 2.75.) 
The sectoral classification of these units is not 
based directly on their principal function, but on 
the preponderant type of activity of the group of 
corporations controlled by them : they should be 
allocated, as appropriate, to S.l 1 non-financial 
corporations (see 2.23.e) or S.12 financial 
corporations (see 2.40.e). 
.0 * - 56 
MAIN STANDARD LEGAL FORMS OF OWNERSHIP 
PRODUCTION OF NON-MARKET GOODS AND SERVICES 
COMPULSORY PAYMENTS MADE BY OTHER UNITS I VOLUNTARY CONTRIBUTIONS MADE BY 
HOUSEHOLDS, IN THEIR CAPACITY AS 
CONSUMERS, PAYMENTS MADE BY GENERAL 
GOVERNMENT AND FROM PROPERTY INCOME 
S.13 general government S.15 non-profit institutions serving households (1) 
(see 2.69.b) (see 2.87.) 
( 1 ) With the exception of non-profit institutions of minor importance (see 2.88.) 
- 57 
2.94. Private and public corporations are classified as follows: 
a) those principally engaged in the production of market goods and non-financial services: 
in sector S.l 1, non-financial corporations (see 2.23.a) 
b) those principally engaged in financial intermediation and auxiliary financial activities: 
in sector S.12, financial corporations (see 2.40.a and 2.40.1). 
2.95. Co-operatives and partnerships recognized as independent legal entities are classified as 
follows: 
a) those principally engaged in the production of market goods and non-financial services: 
in sector S.l 1, non-financial corporations (see 2.23.b) 
b) those principally engaged in financial intermediation and auxiliary financial activities: 
in sector S.12, financial corporations (see 2.40.b). 
2.96. Public enterprises which by virtue of special legislation are recognized as independent legal 
entities are classified as follows: 
a) those principally engaged in the production of market goods and non-financial services: 
in sector S.l 1, non-financial corporations (see 2.23.c) 
b) those principally engaged in financial intermediation and auxiliary financial activities: 
in sector S.12, financial corporations (see 2.40.c). 
2.97. Public enterprises not recognized as independent legal entities are classified as follows: 
if they are quasi-corporate (see 2.13 .f): 
a) those principally engaged in the production of market goods and non-financial 
services: in sector S.ll, non-financial corporations (see 2.23.f) 
b) those principally engaged in financial intermediation and financial auxiliary 
activities: in sector S.12, financial corporations (see 2.40.g) 
if they are not quasi-corporate: in sector S.13, general government, as they remain an 
integral part of the units which control them (see 2.69.a). 
2.98. Non-profit institutions (associations, foundations) recognized as independent legal entities 
are classified as follows: 
a) those principally engaged in the production of market goods and non-financial services: 
in sector S.l 1, non-financial corporations (see 2.23.d) 
b) those principally engaged in financial intermediation and auxiliary financial activities: 
in sector S.12, financial corporations (see 2.40.d) 
- 58 
c) those principally engaged in the production of non-market services : 
- in sector S.13, general government, if their resources come mainly from the 
departments of general government (see 2.69.b) 
- in sector S.15, non-profit institutions serving households, if their resources, other 
than those derived from occasional sales, come mainly from voluntary contributions 
made by households in their capacity as consumers, from payments made by general 
governments or from property income (see 2.87.). 
2.99. Sole proprietorships and partnerships not recognized as independent legal entities are 
classified as follows:. 
if they are quasi-corporate (see 2.13.f): 
a) those principally engaged in the production of market goods and non-financial 
services: in sector S.l 1, non-financial corporations (see 2.23.f) 
b) those principally engaged in financial intermediation and financial auxiliary activities 
in sector S.12 financial corporations (see 2.40.g) 
if they are not quasi-corporate, they are classified in sector S. 14, households (see 2.75.). 
2.100. Holding corporations (i.e. corporations which direct a group of companies) are classified as 
follows: 
a) in sector S.ll, non-financial corporations, if the preponderant type of activity of the 
group of corporations as a whole is the production of market goods and non-financial 
services (see 2.23.e) 
b) in sector S.12, financial corporations, if the preponderant type of activity of the group of 
corporations as a whole is financial intermediation (see 2.40.e). 
2.101. The table on pages 56-57 illustrates in schematic form the various cases which are 
enumerated above. 
5() -
LOCAL KIND-OF-ACTIVITY UNITS AND INDUSTRIES 
2.102. In practice, most institutional units producing goods and services are engaged in a 
combination of activities at the same time. They may be engaged in a principal activity, 
some secondary activities and some ancillary activities (see 3.10. - 3.13.). 
2.103. An activity can be said to take place when resources such as equipment, labour, 
manufacturing techniques, information networks or products are combined, leading to the 
creation of specific goods or services. An activity is characterised by an input of products 
(goods and services), a production process and an output of products. 
Activities can be determined by reference to a specific level of NACE Rev. 1. 
2.104. If a unit carries out more than one activity, all the activities which are not ancillary activities 
are ranked according to the gross value added. On the basis of the preponderant gross value 
added generated, a distinction can then be made between principal activity and secondary 
activities. Ancillary activities are not isolated to form distinct entities or separated from the 
principal or secondary activities of entities they serve. 
2.105. In order to analyse flows occurring in the process of production and in the use of goods and 
services, it is necessary to choose units which emphasize relationships of a technico-
economic kind. This requirement means that as a rule institutional units must be partitioned 
into smaller and more homogeneous units with regard to the kind of production. Local kind-
of-activity units are intended to meet this requirement as a first but practice-oriented 
operational approach. 
The local kind-of-activity unit 
2.106. Definition: The local kind-of-activity unit (local KAU) is the part of a KAU which 
corresponds to a local unit 0). The KAU groups ail the parts of an institutional 
unit in its capacity as producer contributing to the performance of an activity at 
class level (4 digits) of the NACE Rev. 1 and corresponds to one or more 
operational subdivisions of the institutional unit. The institutional unit's 
information system must be capable of indicating or calculating at least the 
value of production, intermediate consumption, compensation of employees, 
the operating surplus and employment and gross fixed capital formation. 
The local unit is an institutional unit producing goods and services or a part thereof situated 
in a geographically identified place. 
A local KAU may correspond to an institutional unit as producer or a part thereof; on the 
other hand, it can never belong to two different institutional units. 
2.107. If an institutional unit producing goods and services contains a principal activity and also 
one or several secondary activities, it should be subdivided into the same number of KAUs, 
and the secondary activities should be classified under different headings from the principal 
activity. On the other hand, the ancillary activities are not separated from the principal or 
secondary activities. But KAUs falling within a particular heading of the classification 
system can produce products outside the homogeneous group on account of secondary 
activities connected with them which cannot be separately identified from available 
accounting documents. Thus a KAU may carry out one or more secondary activities. 
The local KAU is called establishment in the SNA and ISIC Rev.3 
-60 -
The industry 
2.108. Definition: An industry consists of a group of local KAUs engaged in the same, or similar, 
kind of activity. At the most detailed level of classification, an industry consists 
of all the local KAUs falling within a single class (4 digits) of NACE Rev. 1 
and which are therefore engaged in the same activity as defined in the NACE 
Rev.l. 
Industries comprise both local KAUs producing market goods and services and local KAUs 
producing non-market goods and services. An industry by definition consists of a group of 
local KAUs engaged in the same type of productive activity, irrespective of whether or not 
the institutional units to which they belong produce market or non-market output. 
2.109. Industries may be classified in three categories : 
a) industries producing market goods and services (market industries) and goods and 
services for own final use ( ' ) 
b) industries producing non-market goods and services of general government : non-
market industries of general government 
c) industries producing non-market goods and services of non-profit institutions serving 
households : non-market industries of non-profit institutions. 
CLASSIFICATION OF INDUSTRIES 
2.110. The classification used for grouping local KAUs into industries is the NACE Rev. 1. 
UNITS OF HOMOGENEOUS PRODUCTION AND HOMOGENEOUS BRANCHES 
2.111. The local KAU meets the requirements of production process analysis only approximately 
(see 2.105. and 2.107.). The unit which is optimal for this kind of analysis, i.e. input-output 
analysis, is the unit of homogeneous production. 
* ' Services tor own final use concern only housing services produced by owner-occupiers and domestic services produced by employing 
paid stair (see 3.23.). 
-61 -
The unit of homogeneous production 
2.112. Definition: The distinguishing feature of a unit of homogeneous production is a unique 
activity which is identified by its inputs, a particular process of production and 
its outputs. The products which constitute the inputs and outputs are 
themselves distinguished not only by their physical characteristics and the 
extent to which they are processed but also by the technique of production 
used: they can be identified by reference to a classification of products (see 
2.118.). 
2.113. If a goods and services producing institutional unit carries out a principal activity and also 
one or more secondary activities, it will be partitioned into the same number of units of 
homogeneous production. Ancillary activities are not separated from the principal or 
secondary activities. Just like the local KAU, the unit of homogeneous production may 
correspond to an institutional unit or a part thereof; on the other hand, it can never belong to 
two different institutional units. 
The homogeneous branch 
2.114. Definition: The homogeneous branch consists of a grouping of units of homogeneous 
production. The set of activities covered by a homogeneous branch is identified 
by reference to a product classification. The homogeneous branch produces 
those goods or services specified in the classification and only those products. 
2.115. Homogeneous branches are units designed for economic analysis which cannot usually be 
observed directly; data collected from the units used in statistical enquiries have to be re­
arranged to form homogeneous branches. 
2.116. Homogeneous branches may be classified in three categories: 
a) homogeneous branches producing market goods and services (market branches) and 
goods and services for own final use 0) 
b) homogeneous branches producing non-market goods and services of general 
government: non-market branches of general government 
c) homogeneous branches producing non-market goods and services of non-profit 
institutions serving households: non-market branches of non-profit institutions serving 
households. 
2.117. The homogeneous branches producing market goods and services and goods and services for 
own final use consist of all units of homogeneous production of whatever institutional sector 
which are exclusively engaged in the production of market goods and services or of goods 
and services for own final use. The production of market goods and services within the 
general government or non-profit institutions sectors (including those intended for 
themselves) are treated as units of homogeneous production and classified in an appropriate 
market branch. 
The non-market homogeneous branches of general government producing non-market goods 
and services consist of all units of homogeneous production in the general government 
sector which produce non-market goods and services. 
*• ' Services for own final use concern only housing services produced by owner-occupiers and domestic services produced by employiiui 
paid staff (see 3.23). 
-62-
The non-market homogeneous branches of non-profit institutions serving households consist 
of all units of homogeneous production in the non-profit institutions serving households 
sector which produce non-market goods and services. 
THE CLASSIFICATION OF HOMOGENEOUS BRANCHES 
2.118. The classification of homogeneous branches used in the input-output tables is based on the 
Classification of Products by Activity (CPA). The CPA is a product classification whose 
elements are structured according to the industrial origin criterion, industrial origin being 
defined by NACE Rev. 1. 
63-
(5) 
CHAPTER III 
TRANSACTIONS IN PRODUCTS 
^ 65-
INTRODUCTION 
3.01. Definition: Products are all goods and services that are created within the production 
boundary. The latter is defined in paragraph 3.07. 
3.02. The following main categories of transactions in products are distinguished in the ESA: 
Transaction categories Code 
Output P 1 
Intermediate consumption P 2 
Final consumption expenditure P 3 
Actual final consumption P 4 
Gross capital formation P 5 
Exports of goods and services P 6 
Imports of goods and services P 7 
3.03. Transactions in products are recorded in the following accounts: 
- In the Goods and Services Account, output and imports are recorded as resources and 
the other transactions in products are registered as uses. 
- In the Production Account, output is recorded as a resource and intermediate 
consumption is recorded as a use. 
- In the Use of Disposable Income Account, final consumption expenditure is recorded as 
a use. 
- In the Use of Adjusted Disposable Income Account, actual final consumption is 
recorded as a use. 
- In the Capital Account, gross capital formation is registered as a use (a change in 
assets). 
- In the External Account of Goods and Services, imports of goods and services are 
recorded as a resource, while exports of goods and services are registered as uses. 
3.04. In the supply table, output and imports are recorded as supplies. In the use table, 
intermediate consumption, gross capital formation, final consumption expenditure and 
exports are registered as uses. In the symmetric input-output table, output and imports are 
recorded as supplies and the other transactions in products as uses. 
3.05. Supplies of products are valued at basic prices (basic prices are defined in para 3.38.). Uses 
of products are valued at purchasers' prices (purchaser's prices are defined in para 3.06.). 
For some types of supplies and uses, more specific valuation principles are used, e.g. for 
imports and exports of goods. 
66 
3.06. Definition: At the time of purchase, the purchaser's price is the price the purchaser actually 
pays for the products: 
- including any taxes less subsidies on the products (but excluding deductible taxes like 
VAT on the products); 
- including any transport charges paid separately by the purchaser to take delivery at the 
required time and place; 
- after deductions for any discounts for bulk or off-peak-purchases from standard prices 
or charges; 
- excluding interest or services charges added under credit arrangements; 
- excluding any extra charges incurred as a result of failing to pay within the period stated 
at the time the purchases were made. 
If the time of use does not coincide with the time of purchase, adjustments should be made 
in such a way to take account of the changes in price due to the lapsing of time (in a 
manner symmetrical with changes in the prices of the inventories). Such modifications are 
especially important if the prices of the products involved change drastically within a year. 
PRODUCTION AND OUTPUT 
3.07. General definition of production: Production is an activity carried out under the control 
and responsibility of an institutional unit that uses 
inputs of labour, capital and goods and services to 
produce goods and services. Production does not 
cover purely natural processes without any human 
involvement or direction, like the unmanaged growth 
of fish stocks in international waters (but fish farming 
is production). 
3.08. Production includes: 
a) the production of all individual or collective goods or services that are supplied to units 
other than their producers (or intended to be so supplied). 
b) the own-account production of all goods that are retained by their producers for their 
own final consumption or gross fixed capital formation. Own account production for 
gross fixed capital formation includes the production of fixed assets such as 
construction, the development of software and mineral exploration for own gross fixed 
capital formation (for the concept of gross fixed capital formation, see paras 3.90.-
3.117.); 
Own-account production of goods by households pertains in general to: 
- own-account construction of dwellings; 
- the production and storage of agricultural products; 
- the processing of agricultural products, like the production of flour by milling, 
the preservation of fruit by drying and bottling; the production of dairy 
products like butter and cheese and the production of beer, wine and spirits; 
67-
- the production of other primary products, like mining salt, cutting peat and 
carrying water; 
- other kinds of processing, like weaving cloth, the production of pottery and 
making furniture. 
Own-account production of a good by households should be recorded if this type of 
production is significant, i.e. if it is believed to be quantitatively important in relation to 
the total supply of that good in a country. 
By convention, in the ESA, only own-account construction of dwellings and the 
production, storage and processing of agricultural products is included; all other own-
account production of goods by households are deemed to be insignificant for EU 
countries. 
c) the own-account production of housing services by owner-occupiers; 
d) domestic and personal services produced by employing paid domestic staff; 
e) volunteer activities that result in goods, e.g. the construction of a dwelling, church or 
other building are to be recorded as production. Volunteer activities that do not result in 
goods, e.g. caretaking and cleaning without payment, are excluded; 
All such activities are included even if they are illegal or not-registered at tax, social 
security, statistical and other authorities. 
3.09. Production excludes the production of domestic and personal services that are produced 
and consumed within the same household (with the exception of employing paid domestic 
staff and the services of owner-occupied dwellings). Cases in point are: 
a) cleaning, decoration and maintenance of the dwelling as far as these activities are also 
common for tenants; 
b) cleaning, servicing and repair of household durables; 
c) preparation and serving of meals; 
d) care, training and instruction of children; 
e) care of sick, infirm or old people; 
f) transportation of members of the household or their goods. 
Principal, secondary and ancillary activities 
3.10. Definition: The principal activity of a local KAU is the activity whose value added exceeds 
that of any other activity carried out within the same unit. The classification of 
the principal activity is determined by reference to NACE.Rev 1, first at the 
highest level of the classification and then at more detailed levels. 
3.11. Definition: A secondary activity is an activity carried out within a single local KAU in 
addition to the principal activity. The output of the secondary activity is a 
secondary product. 
68-
3ri 2. Definition: The output of an ancillary activity is not intended for use outside the enterprise. 
An ancillary activity is a supporting activity undertaken within an enterprise in 
order to create the conditions within which the principal or secondary activities 
of local KAUs can be carried out. Ancillary activities typically produce outputs 
that are commonly found as inputs into almost any kind of productive activity, 
small as well as large. 
Ancillary activities may be, e.g purchasing, sales, marketing, accounting, data processing, 
transportation, storage, maintenance, cleaning and security services. Enterprises may have 
a choice between engaging in ancillary activities or purchasing such services on the market 
from specialist service producers. 
Own-account capital formation is not considered to be an ancillary activity. 
3.13. Ancillary activities are treated as integral parts of the principal or secondary activities with 
which they are associated. As a result: 
- The output of an ancillary activity is not explicitly recognised and recorded separately. 
It follows that the use of this output is also not recorded. 
- All the inputs consumed by an ancillary activity -materials, labour, consumption of 
fixed capital, etc.- are treated as inputs into the principal or secondary activity which it 
supports. 
Output (PI) 
3.14. Definition: Output consists of the products created during the accounting period. 
Particular cases included are: 
- the goods and services which one local KAU provides to a different local KAU 
belonging to the same institutional unit. 
- the goods which are produced by a local KAU and remain in inventories at the end of 
the period in which they are produced, whatever their subsequent use. 
However, goods or services produced and consumed within the same accounting period 
and within the same local KAU are not separately identified. They are therefore not 
recorded as part of the output or intermediate consumption of that local KAU. 
3.15. When an institutional unit contains more than one local KAU, the output of the 
institutional unit is the sum of the outputs of its component local KAUs, including outputs 
delivered between the component local KAUs. 
3.16. Three types of output are distinguished in the ESA: 
- market output (P 11); 
- output produced for own final use (P 12); 
- other non-market output (P 13). 
-69-
This distinction is fundamental, because it determines the valuation principles to be applied 
to output: market output and output produced for own final use are valued at basic prices, 
while other non-market output is valued from the costs side (see para 3.43.). Furthermore, 
the distinction is used to classify producers as market producers, producers for own final 
use or other non-market producers (see paras 3.26.-3.35.). 
Market output (P11) 
3.17. Definition: Market output consists of output that is disposed of on the market (see para 
3.18.) or intended to be disposed of on the market. 
3.18. Market output includes : 
a) products sold at economically significant prices; 
b) products bartered; 
c) products used for payments in kind (including compensation in kind); 
d) products supplied by one local KAU to another within the same institutional unit to be 
used as intermediate inputs or for final uses; 
e) products added to the inventories of finished goods and work-in-progress intended for 
one or other of the above uses (including natural growth of animal and vegetable 
products and uncompleted structures for which the buyer is unknown). 
•» 
3.19. Definition: An economically significant price is a price that is employed on the market. 
The market consists of all output that is supplied under market conditions. 
Under market conditions, producers are free to decide what they produce, how 
they produce and to whom they supply; they should only meet some general 
regulations, e.g. pertaining to the conditions of employment and the quality of 
the product. Regulation of (changes in) prices is in general compatible with 
market conditions, as competition can continue on the basis of variables other 
than the price, like service and the quality of the product. 
By convention, in the ESA, an economically significant price (excluding taxes 
on products and included subsidies on products) should generally cover at least 
50% of the production costs of the product. 
3.20. Sales at economically significant prices may consist of various elements. For example, in 
case of the health care services provided by a hospital, sales may correspond to: 
- purchases by employers to be recorded as income in kind paid to their employees and 
final consumption expenditure by these employees; 
- purchases by private insurance companies; 
- purchases by social security funds and general government to be classified as social 
benefits in kind; 
- purchases by households without reimbursement (final consumption expenditure). 
Only subsidies and gifts (e.g. from charities) received are not treated as sales. 
70 
Similarly, the sale of transport services by an enterprise may correspond to intermediate 
consumption by producers, income in kind provided by employers, social benefits in kind 
provided by the government and purchases by households without reimbursement. 
3.21. In case a producer produces only one product (or: all the products fall within the same 
product group), the production costs of the product should include the costs of production 
as defined in para 3.43. In all the other cases, the costs of ancillary activities should be 
allocated to calculate the production costs by product. 
In statistical practice, it may be difficult to make a clear distinction between the different 
products of local KAUs of government institutions and NPISHs. Even more, this is true for 
the production costs in relation to the different products. 
In that case, a simple solution is to treat all revenues of other non-market producers from 
their secondary activitie(s) as the revenues for one type of market output. This applies for 
example to a museum's revenues from the sale of posters and cards (though these revenues 
may not be sufficient to cover 50% of all the costs of the museumshop, e.g. because that 
also includes compensation of employees of the museum shop personnel).. 
Other non-market producers may also have revenues from the sale of their other non-
market output at not economically significant prices, e.g. the museum's revenues from 
tickets for entrance. These revenues pertain to other non-market output. However, if both 
types of revenues (revenues from tickets and those from the sale of posters and cards) are 
difficult to distinguish, they can all be treated as either revenues for market output or 
revenues from other non-market output. The choice between these two alternative 
registrations should depend on the assumed relative importance of both types of revenues 
(from tickets versus those from the sale of posters and cards). 
By convention, output by a market producer can never be other non-market output (see 
para 3.34.). So, the primary and secondary outputs of a market producer are always market 
output or for own final use. 
Output for own final use (P12) 
3.22. Definition: Output produced for own final use consists of goods or services that are 
retained either for final consumption by the same institutional unit or for gross 
fixed capital formation by the same local KAU. 
71 -
3.23. Products retained for own final consumption can only be produced by the household 
sector. Typical examples are: 
- agricultural products retained by farmers 
- housing services produced by owner-occupiers 
- household services produced by employing paid staff. 
3.24. Products used for own gross fixed capital formation can be produced by any sector. 
Examples are: 
- special machine tools produced by engineering enterprises; 
- dwellings, or extensions to dwellings, produced by households; 
- own-account construction, including communal construction undertaken by groups of 
households. 
Other non-market output (P13) 
3.25. Definition: Other non-market output covers output that is provided free, or at prices that 
are not economically significant, to other units. 
Three types of producers 
3.26. Producers can be subdivided into: 
- market producers; 
- producers for own final use; 
- other non-market producers. 
3.27. Definition: Market producers are local KAUs the major part of whose output is market 
output, i.e. whose sales (excluding taxes on products) cover generally the major 
part of their production costs. 
A local KAU belonging to the institutional sector government that mostly applies 
economically significant prices should be treated as a market producer and not as an other 
non-market producer. 
3.28. Definition: Producers for own final use are local KAUs the major part of whose (value of) 
output is for own final use. By convention, in the ESA, this will only pertain to 
the producers of the services of owner-occupied dwellings and, to a very 
limited extent, the own-account production of goods by households (see para 
3.08.b). 
3.29. Definition: Other non-market producers are local KAUs whose major part of (the value of) 
output is provided free or at not economically significant prices. 
3.30. In general, the term "major part" used in paras 3.27.-3.29. refers to at least 50% of the 
output (or, for para 3.27., production costs). In an extreme case, it could refer to 34%, as 
three categories are involved and the minor parts could be both 33%. However, in practice, 
one or two types of output will tend to dominate. 
72-
3.31. If the major part-criterion holds for several years or holds for the present year and is 
expected to hold for the near future, it should be applied strictly. However, in case of 
different types of output of rather similar size, fluctuations in the relative sizes from one 
year to another do not necessitate a reclassification of local KAUs. 
3.32. Given the negligible number of separate local KAUs who are producers of output for own 
final use in Europe, except owner-occupiers of dwellings, only two subcategories of 
industries are actually used in the ESA: 
- market producers and producers for own final use; 
- other non-market producers. 
3.33. The relationship between the various types of producers and their outputs is shown in the 
following table: 
Market output 
Output for own 
final use 
Other non-
market output 
Total Market 
producers 
X 
X 
0 
Total output by 
market 
producers Producers for 
own final use 
0 
Services of 
owner-
occupied 
dwellings 
0 
Total output by 
producers for 
own final use Other non-
market 
producers 
X 
X 
X 
Total output by 
other non-
market 
producers Total 
Total market 
output 
Total output 
for own final 
use 
Total other 
non-market 
output 
Total output 
X = large output; x = small output; 0 = no output (by convention) 
3.34. In principle, market producers and producers for own final use could also supply other 
non-market output. However, by convention such secondary output is assumed to be 
zero!1). As a consequence, this output is recorded either as part of their other output or -by 
the creation and registration of a separate local KAU concerned solely or mainly with the 
production of this other non-market output- as part of the output of other non-market 
producers. 
(i) Provided sufficient information is available (see para 2.106.), a separate local KAU can be drawn up for recording the other non-
market output of a market producer. 
73 
3.35. Other non-market producers can supply as secondary output market outputs and output for 
own final use. This might be the case for instance when government hospitals charge 
economically significant prices for their services. Other examples are sales of 
reproductions by government museums and sales of weather forecasts by meteorological 
institutes. 
Time of recording and valuation of output 
3.36. Output is to be recorded and valued when it is generated by the production process. 
3.37. All output is to be valued at basic prices. For the valuation of other non-market output, 
specific conventions are used (see paras 3.43.-3.45.). 
3.38. Definition: The basic price is the price receivable by the producers from the purchaser for a 
unit of a good or service produced as output minus any tax payable on that unit 
as a consequence of its production or sale, plus any subsidy receivable on that 
unit as a consequence of its production or sale. It excludes any transport 
charges invoiced separately by the producer. It includes any transport margins 
charged by the producer on the same invoice, even when they are included as a 
separate item on the invoice. 
3.39. Output for own final use (PI2) is to be valued at the basic prices of similar products sold 
on the market; as a consequence, a net operating surplus or mixed income can occur for 
such output. This also applies to services of owner-occupied dwellings (see para 3.54. 
below). However, it will usually be necessary to value output of own-account construction 
by costs of production. 
3.40. Additions to work-in-progress are valued in proportion to the estimated current basic price 
of the finished product. 
3.41. If the value of output treated as work-in-progress is to be estimated in advance, it should be 
based on the actual costs incurred, plus a mark-up for the estimated operating surplus or an 
estimate of mixed income. The provisional estimates should subsequently be replaced by 
those obtained by distributing the actual value (when it becomes known) of the finished 
products. The latter is the sum of the values of: 
- finished products sold or bartered; 
- entries of finished products into inventories, less withdrawals; 
- finished products consumed by their producer. 
3.42. For buildings and structures acquired in an incomplete state, a value is estimated based on 
costs to date, including a mark-up for operating surplus or mixed income (this mark-up 
results when the value can be estimated on the basis of the prices of similar buildings and 
structures).The amounts of stage payments may be used to approximate the values of gross 
fixed capital formation undertaken by the purchaser at each stage (assuming no advance 
payments or arrears). 
- 74 
If the own-account construction of a structure is not completed within a single accounting 
period, the value of the output and the corresponding gross fixed capital fojmation should 
be estimated by applying the fraction of the total costs of production incurred during the 
relevant period to the estimated current basic price. If it is not possible to estimate the basic 
price of the finished structure, it must be valued by its total costs of production. If some or 
all of the labour is provided free, as may happen with communal construction by 
households, an estimate of what the cost of paid labour would have been is included in the 
estimated total production costs using wage rates for similar kinds of labour in the vicinity 
or region. 
3.43. The output of an other non-market producer is to be valued at the total costs of production, 
i.e. the sum of: 
- intermediate consumption; 
- compensation of employees; 
- consumption of fixed capital; 
- other taxes on production (D29). 
By convention, interest payments are not included as costs of other non-market production. 
The same applies to the rental value of the non-residential buildings owned and used in 
other non-market production. 
3.44. In the absence of secondary market output by other non-market producers, other non-
market output is to be valued at the costs of production. In the case of secondary market 
output by other non-market producers, other non-market output is valued as a residual 
item, i.e. as the difference between the total costs of production of other non-market 
producer minus their revenues from market output. 
3.45. In principle, market output by other non-market producers is to be valued at basic prices. 
However, in some instances it may be difficult to determine whether some secondary 
activities by other non-market producers result in market output (see para 3.21.). For 
practical reasons, all revenues from their secondary activities can then be regarded as either 
revenues from market output or revenues from other non-market output. 
3.46. The revenues from the sales of other non-market output do not influence the value of 
output, because: 
- they are irrelevant for determining the value of the total output of an other non-market 
producer (para 3.43.); 
- they are irrelevant for determining the value of other non-market output by an other 
non-market producer (para 3.44.); 
- they are irrelevant for the value of market output by an other non-market producer (para 
3.21.; only for practical reasons they may be recorded in some cases as part of revenues 
from the sale of secondary market output). 
3.47. For some specific types of output, the times of recording and the valuation of output are 
subject to the following clarifications and exceptions, given in order of CPA sections. 
75 -
3.48. A. Products of agriculture, hunting and forestry; B. Fish 
The output of agricultural products should be recorded as being produced continuously 
over the entire period of production (and not simply when the crops are harvested or 
animals slaughtered). 
Growing crops, standing timber and stocks of fish or animals reared for purposes of food 
should be treated as inventories of work-in-progress during the process, and transformed 
into inventories of finished products when the process is completed. 
3.49. D. Manufactured products; F. Construction work 
When a contract of sale is agreed in advance for the construction of a building or other 
structure extending over several accounting periods, the output produced each period is 
treated as being sold to the purchaser at the end of the period: i.e. in the purchaser's fixed 
capital formation rather than work-in-progress in the construction industry. In effect, the 
output produced is treated as being sold to the purchaser in stages as the latter takes legal 
possession of the output. When the contract calls for stage payments, the value of the 
output may often be approximated by the value of stage payments made each period. In the 
absence of a contract of sale, however, the incomplete output produced each period is 
recorded as work-in-progress. 
3.50. G. Wholesale and retail trade services; repair services of motor vehicles, motorcycles and 
personal and household goods 
The output of wholesale and retail services is measured by the trade margins realised on 
the goods they purchase for resale. 
Definition: A trade margin is the difference between the actual or imputed price realised on 
a good purchased for resale and the price that would have to be paid by the 
distributor to replace the good at the time it is sold or otherwise disposed of. 
« 
By convention, holding gains and losses are not included in the trade margin. However, in 
practice, data sources may not allow to separate out all the holding gains and losses. 
3.51. H. Hotel and restaurant services 
The output of the services of hotels, restaurants and cafes includes the value of the food, 
beverages, etc. consumed. 
3.52. I. Transport, storage and communication services 
The output of transport services is measured by the value of the amounts receivable for 
transporting goods or persons. Transportation for own use within the local KAU is 
considered ancillary activity and is not separately identified and recorded. 
The output of storage services is measured as the value of an addition to work-in-progress, 
either additional output in the sense of transportation over time (e.g. storage on behalf of 
other local KAUs) or a physical change (e.g. in case of the maturing of wine). 
-76 
The output of travel agency services is measured as the value of service charges of 
agencies (fees or commission charges) and not by the full expenditures made by travellers 
to the travel agency. The latter may e.g. also include charges for transport by third parties. 
The output of tour operator services is measured by the full expenditure made by travellers 
to the tour operator. 
The distinction between travel agency services and tour operator services is that travel 
agency services amount only to intermediation on behalf of the traveller, while tour 
operator services create a new product, i.e. a tour is arranged of which the prices of its 
various components (e.g. travel, accommodation and entertainment) are not recognizable 
as such for the traveller. 
3.53. J. Financial intermediation services (insurance services and pension funding services) 
The output of financial intermediation for which no explicit charges are made is measured, 
by convention, as the total property income received by the unit providing the service 
minus their total interest payments, excluding the value of any income received from the 
investment of their own funds (as such income does not arise from financial 
intermediation), and, in the case of secundary insurance activities by a financial 
intermediairy, excluding the income from investment of insurance technical reserves. 
Holding gains and losses should be ignored in measuring this output, because throughout 
the system holding gains are not recorded in the production account but in a separate 
account (Other changes in assets account). This applies also to holding gains on foreign 
exchange and securities by professional dealers (though their holding gains may be 
generally positive and be regarded by the dealers themselves as part of their normal 
revenues). However, the trade margins on foreign exchange and securities (i.e. the common 
differences between the purchasers' prices for the dealer and the purchasers' price for the 
buyer) are to be included in output, like for wholesale and retail traders. Analogously, there 
may also be data problems in distinguishing such trade margins from the holding gains; 
these should be overcome as best as possible. 
The output of services of financial intermediation provided by central banks should be 
measured in the same way as those provided by other financial intermediaries. 
The activity of money lenders who lend only their own funds is not treated as the 
production of services. 
Financial intermediairies may also provide various financial services and business services 
for which fees or commissions are explicitly charged. Cases in point can be e.g. currency 
exchange and advice about investments, the purchase of real estate or advice on taxation. 
The output of such services is valued on the basis of the fees or commissions charged. 
-77 
Output of insurance services (service charge) is measured as: 
+ total actual premiums earned 
+ total premium supplements (equal to the income from the investment of the insurance 
technical reserves) 
- the total claims due 
- the change in the actuarial reserves and reserves for with-profits insurance. 
Holding gains and losses are to be ignored in the measurement of the output of insurance 
services: they are not to be regarded as income from investment of the insurance technical 
reserves and they are not to be considered as changes in the actuarial reserves and reserves 
for with-profits insurance. 
Notice that insurance technical reserves may be invested in secondary activities of the 
insurance company, e.g. the letting of dwellings or offices. In that case, the net operating 
surplus on these secondary activities is income from the investment of insurance technical 
reserves. 
Similarly, the output of pension funding services is measured as: 
+ total actual pension contributions 
+ total supplementary contributions (equal to the income from investment of the pension 
funds technical reserves) 
- the benefits due 
- the change in the actuarial reserves. 
3.54. K. Real estate, renting and business services 
The output of services of owner-occupied dwellings should be valued at the estimated 
value of rental «that a tenant would pay for the same accommodation, taking into account 
factors such as location, neighbourhood amenities, etc. as well as the size and quality of the 
dwelling itself. However, this output is still to be valued at basic prices. This implies that 
any taxes normally paid by tenants but not by enterprises are to be excluded. For garages 
located separately from dwellings, which are used by the owner for final consumption 
purposes in connection with using the dwelling, a similar imputation is to be made. No 
imputation is to be made for garages used by their private owner only for the purpose of 
parking near the workplace. The rental value of owner-occupied dwellings abroad, e.g. 
holiday homes, should not be recorded as part of domestic production, but as imports of 
services and the corresponding net operating surplus as primary income received from 
the Rest of the World. For owner-occupied dwellings owned by non-residents, analogous 
entries should be made. In case of time-sharing apartments, a proportion of the service 
charge should be recorded as such. 
The output of real estate services of non-residential buildings is measured by the value of 
the rentals due. 
-78-
The output of operating leasing services (renting out machinery or equipment, etc.) is 
measured by the value of rental which the lessee pays to the lessor. It is clearly 
distinguished from financial leasing which is a method of financing the acquisition of fixed 
asset, i.e. by making a loan from the lessor to the lessee. In the case of financial leasing 
rentals consist (mainly) of repayments and interest payments, and the value of services are 
very small compared with the total rentals paid (see Annex on leasing). 
When possible, a separate local KAU should be distinguished for research and 
development activities (R&D). When this is not possible, all R&D of a significant size 
(compared to the principal activity) should be recorded as a secondary activity of the local 
KAU. 
The output of R&D services is measured as follows: 
- R&D by specialised commercial research laboratories or institutes is valued at the 
revenues from sales, contracts, commissions, fees, etc. in the usual way. 
- the output of R&D for use within the same enterprise should, in principle, be valued on 
the basis of the estimated basic prices that would be paid if the research were sub­
contracted commercially. However, in practice, it is likely to have to be valued on the 
basis of the total production costs. 
- R&D by government units, universities, non-profit research institutes, etc. is usually 
other non-market production and is thus valued on the basis of the costs of production. 
Revenues from the sale of R&D by other non-market producers of R&D are to be 
recorded as revenues from secondary market output. 
Expenditure on R&D should be distinguished from those on education and training. 
Expenditure on R&D does not include the costs of developing software as a principal or 
secondary activity. However, their accounting treatment is nearly the same; the only 
difference is that software is regarded as a produced intangible asset and is not patented. 
3.55. L. Public administration and defence services, compulsory social security services 
Public administration, defence services and compulsory social security services are always 
provided as other non-market services and should thus be valued accordingly. 
3.56. M. Education services; N. Health and social services 
For education services and health services it may often be necessary to draw precise 
borderlines between between market and other non-market producers and between their 
market and other non-market output. For example, for some types of education and 
medical treatment nominal fees can be levied by government institutions (or by other 
institutions due to specific subsidies), but for other education and special medical 
treatments they may charge commercial tariffs. Another common case in point is that the 
same type of service (e.g. higher education) is provided by, on the one hand, the 
government (or its intermediation) and, on the other hand, commercial institutes. Then, 
often large differences exist between the prices charged and the quality of the services. 
79 
Education and health services exclude R&D activities; health services exclude education in 
health care, e.g. by academic hospitals. 
3.57. O. Other community, social and personal services 
The production of books, recordings, films, software, tapes, disks, etc. is a two stage 
process and measured accordingly: 
(i) The output from the production of originals - an intangible fixed asset - is measured 
by the price paid if sold, or, if not sold, by the basic price paid for similar originals, 
its production costs or the discounted value of the future receipts expected from 
using it in production. 
(ii) The owner of this asset may use it directly or to produce copies in subsequent periods 
(recorded as consumption of fixed capital). If the owner has licensed other producers 
to make use of the original in production, the fees, commissions, royalties, etc. he 
receives from the licenses are his output of the services. In this second stage, the sale 
of the intangible asset is negative fixed capital formation. 
3.58. P. Private households with employed persons 
The output of household services produced by employing paid staff - by convention - is 
valued by the compensation of employees paid; this includes any compensation in kind 
such as food or accommodation. 
INTERMEDIATE CONSUMPTION (P2) 
3.59. Definition: Intermediate consumption consists of the value 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. The goods and 
services may be either transformed or used up by the production process. 
3.60. Intermediate consumption includes the following borderline cases: 
a) the value of all the goods or services used as inputs into ancillary activities. Common 
examples are purchasing, sales, marketing, accounting, data processing, transportation, 
storage, maintenance, security, etc. These goods and services are not distinguished from 
those consumed by the principal (or secondary) activities of a local KAU; 
b) the value of goods and services which are received from another local KAU of the same 
institutional unit (only if they comply to the general definition in para 3.59.); 
c) the costs of using rented fixed assets, e.g. the operational leasing of machines or cars; 
d) the subscriptions, contributions or dues paid to non-profit business associations; 
e) items not treated as gross capital formation, like: 
- small tools which are inexpensive and used for relatively simple operations, 
such as saws, hammers, screwdrivers and other hand tools; small devices, such 
as pocket calculators. By convention, in the ESA, all expenditure on such 
durables which does not exceed 500 ECU (in prices of 1995) per item (or, 
when bought in quantities, for the total amount bought), should be recorded as 
intermediate consumption; 
80 
(6) 
- the ordinary, regular maintenance and repair of fixed assets used in production; 
- military weapons of destruction and the equipment needed to deliver them (but 
not light weapons or armoured vehicles acquired by police and security forces, 
which are treated as gross fixed capital formation); 
- services of research and development, staff training, market research and 
similar activities, purchased from an outside agency or provided by a separate 
local KAU of the same institutional unit; 
f) payments for the use of intangible non-produced assets like patented assets, trade marks, 
copyrights, etc. (excluding payments for the purchase of such property rights: these are 
treated as acquisition of an intangible non-produced asset); 
g) expenditure by employees, reimbursed by the employer, on items necessary for the 
employers' production, like contractual obligations to purchase on own-account tools or 
safety-wear; 
h) expenditure by employers which is to their own benefit as well as to that of their 
employees, because it is necessary for the employers' production. Cases in point are: 
- reimbursement of employees for travelling, separation, removal and 
entertainment expenses incurred in the course of their duties; 
- providing amenities at the place of work. 
A more extensitive list is presented in the paragraphs on compensation of employees 
(Dl). 
i) non-life insurance service charges paid by local KAUs: in order to record only the 
service charge as intermediate consumption the premiums paid should be discounted 
for, e.g. claims paid out and the net change in actuarial reserves. The latter can be 
allocated to local KAUs as a proportion of the premiums paid. 
j) only for the total economy: all financial intermediation services indirectly measured 
(FISIM) provided by resident producers. 
3.61. Intermediate consumption excludes: 
a) items treated as gross capital formation, like: 
- valuables; 
- mineral exploration; 
- major improvements which go considerably beyond what is required simply to 
keep the fixed assets in good working order, e.g. renovations, reconstructions 
or enlargements; 
- software purchased or produced on own-account. 
b) expenditure by employers treated as wages and salaries in kind (see 4.05.); ; 
c) use by market or own-account producer units of collective services provided by 
government units (treated as collective consumption expenditure by government); 
d) goods or services produced and consumed within the same accounting period and within 
the same local KAU (they are also not recorded as output);. 
e) payments for government licenses and fees that are treated as taxes on production (see 
paras 4.14., 4.15.); 
Time of recording and valuation of intermediate consumption 
3.62. Products used for intermediate consumption should be recorded and valued at the time they 
enter the process of production. They are to be valued at the purchasers' prices for similar 
goods or services at that time. 
3.63. In practice, producer units do not usually record the actual use of goods in production 
directly. They record the purchases intended to be used as inputs and the changes in the 
amounts of such goods held in inventory. Intermediate consumption has therefore to be 
estimated by subtracting from the purchases the changes in inventories of inputs (see paras 
3.111.-3.114. for the correct valuation of the latter). 
FINAL CONSUMPTION (P3, P4) 
3.64. Two concepts of final consumption are used: 
- final consumption expenditure (P3); 
- actual final consumption (P4). 
Final consumption expenditure is a concept that refers to a sector's expenditure on 
consumption goods and services. In contrast, actual final consumption refers to its 
acquisition of consumption goods and services. The difference between these concepts lies 
in the treatment of certain goods and services financed by the government or NPI serving 
households but supplied to households as social transfers in kind. 
Final consumption expenditure (P3) 
3.65. Definition: Final consumption expenditure consists of expenditure incurred by resident 
institutional units on goods or services that are used for the direct satisfaction 
of individual needs or wants or the collective needs of members of the 
community. Final consumption expenditure may take place on the domestic 
territory or abroad. 
3.66. Household final consumption expenditure includes the following borderline cases: 
a) services of owner-occupied dwellings; 
b) income in kind, like: 
- goods and services received as income in kind by employees; 
- goods or services produced as outputs of unincorporated enterprises owned by 
households that are retained for consumption by members of the household. 
Cases in point are food and other agricultural goods, housing services by 
owner-occupiers and household services produced by employing paid staff 
(servants, cooks, gardeners, chauffeurs, etc). 
82-
c) items not treated as intermediate consumption, like: 
- materials for small repairs to and interior decoration of dwellings of a kind 
typically carried out by tenants as well as owners; 
- materials for repairs and maintenance to consumer durables, including 
vehicles; 
d) items not treated as capital formation, in particular consumer durables, that continue to 
perform their function in several accounting periods; this includes the transfer of 
ownership of some durables from an enterprise to a household (see transactions in 
existing goods, para 3.137.); 
e) financial services directly charged; 
f) insurance services by amount of the implicit service charge (see para 3.53.); 
g) pension services by amount of the implicit service charge (see para 3.53.); 
h) payments by households for licences, permits, etc. which are regarded as purchases of 
services (see paras 4.14., 4.15.); 
i) the purchase of output at not economically significant prices, e.g. entrance fees for a 
museum (see para 3.21.). 
3.67. Household final consumption expenditure excludes: 
a) social transfers in kind, like expenditures initially incurred by households but 
subsequently reimbursed by social security, e.g. some medical expenses 
b) items treated as intermediate consumption or gross capital formation, like 
- expenditures by households owning unincorporated enterprises when incurred 
for business purposes - e.g. on durable goods such as vehicles, furniture or 
electrical equipment (gross fixed capital formation), and also on non-durables 
such as fuel (intermediate consumption); 
- expenditure that an owner-occupier incurs on the decoration, maintenance and 
repair of the dwelling not typically carried out by tenants (treated as 
intermediate consumption in producing housing services). 
- the purchase of dwellings (treated as gross fixed capital formation); 
- expenditure on valuables (treated as gross capital formation); 
c) items treated as acquisition-of a non-produced asset, in particular the purchase of land; 
d) all those payments by households which are to be regarded as taxes, such as licences to 
own vehicles, boats or aircraft and also licences to hunt, shoot or fish (see para 4.14., 
4.15.). 
e) subscriptions, contributions and dues paid by households to NPISHs, like to trade 
unions, professional societies, consumers' associations, churches and social, cultural, 
recreational and sports clubs; 
f) voluntary transfers of cash or in kind by households to charities, relief and aid 
organizations. 
3.68. Final consumption expenditure of NPISH includes two separate categories: 
a) The value of the goods and services produced by NPISH other than own-account capital 
formation and other than expenditure made by households and other units; 
b) Expenditures by NPISH on goods or services produced by market producers that are 
supplied - without any transformation - to households for their consumption as social 
benefits in kind. 
3.69. Final consumption expenditure by government includes two categories of expenditures, 
similar to those of the NPISH: 
a) The value of the goods and services produced by general government itself (assumed by 
convention to be consumed by the government itself) other than own-account capital 
formation and other than expenditure made by other units; 
b) Purchases by general government of goods and services produced by market producers 
that are supplied to households - without any transformation - as social benefits in kind. 
This implies that general government just pays for goods and services that the sellers 
provide to households. 
3.70. Corporations do not make final Consumption expenditures. Their purchases of the same 
kind of goods or services as used by households for final consumption are either used for 
intermediate consumption or provided to employees as compensation of employees in 
kind, i.e. imputed household final consumption expenditure. Even where, for example 
through advertising, they finance individual consumption, this expenditure is treated as 
intermediate. 
Actual final consumption (P4) 
3.71. Definition: Actual final consumption consists of the goods or services that are acquired by 
resident instutional units for the direct satisfaction of human needs, whether 
individual or collective. 
3.72. Definition: Goods and services for individual consumption ('individual goods and 
services') are acquired by a household and used to satisfy the needs and wants 
of members of that household. Individual goods and services have the 
following characteristics: 
(a) It must be possible to observe and record the acquisition of the good or 
services by an individual household or member thereof and also the time 
at which it took place; 
(b) The household must have agreed to the provision of the good or service 
and take whatever action is necessary to make it possible - for example, 
by attending a school or clinic; 
(c) The good or service must be such that its acquisition by one household or 
person, or possibly by a small, restricted group of persons, precludes its 
acquisition by other households or persons. 
84 
3.73. Definition: Services for collective consumption ('collective services') are provided 
simultaneously to all members of the community or all members of a particular 
section of the community, such as all households living in a particular region. 
Collective services have the following characteristics: 
(a) They can be delivered simultaneously to every member of the community 
or to particular sections of the community, such as those in a particular 
region of locality; 
(b) The use of such services is usually passive and does not require the 
explicit agreement or active participation of all the individuals 
concerned; 
(c) The provision of a collective service to one individual does not reduce 
the amount available to other in the same community or section of the 
community. There is no rivalry in acquisition. 
3.74. All household final consumption expenditure is individual. By convention, all goods and 
services provided by NPISH are treated as individual. 
3.75. For the goods and services provided by government units, the borderline between 
individual and collective goods and services is drawn on the basis of the Classification of 
the Functions of Government (COFOG). 
By convention, all government final consumption expenditures under each of the following 
headings should be treated as expenditures on individual consumption services except for 
expenditures on general administration, regulation, research, etc. in each category: 
- 04 Education; 
- 05 Health; 
- 06 Social Security and Welfare; 
- 08.01 Sport and recreation; 
- 08.02 Culture. 
In addition, expenditures under the following sub-headings should also be treated as 
individual when they are important: 
- 07.11 (part of) the provision of housing; 
- 07.31 (part of) the collection of household refuse; 
- 12.12 (part of) the operation of transport system. 
The collective consumption expenditure is the remainder of the government final 
consumption expenditure. It consists in particular of: 
- management and regulation of society; 
- the provision of security and defence; 
- the maintenance of law and order, legislation and regulation; 
- the maintenance of public health; 
- the protection of the environment; 
- research and development; 
- infrastructure and economic development. 
3.76. The relationships between the various concepts employed can be shown in a table 
Individual 
consump­
tion 
Collective 
consump­
tion 
Total Sector making expenditure 
Govern­
ment 
X 
(= Social 
transfers in 
kind) 
X 
Govern­
ment final 
cons, 
expen­
diture NPISH 
X 
0 
NPISH 
final cons, 
expen­
diture House­
holds 
X 
0 
Household 
final cons, 
expen­
diture Total 
acquisi-tions 
Actual 
individual 
final 
consump­
tion 
Actual 
collective 
final 
consump­
tion 
Actual final 
consump­
tion = Total 
final cons, 
expenditure 
3.77. Final consumption expenditure of NPISH is by convention all individual. As a 
consequence, total actual final consumption is equal to the sum of household actual final 
consumption and actual final consumption of general government. 
3.78. By convention, there are no social transfers in kind with the Rest of the World (though 
there are such transfers in monetary terms). As a consequence, total actual final 
consumption is equal to total final consumption expenditure. 
Time of recording and valuation of final consumption expenditure 
3.79. As explained in chapter I, goods and services should in general be recorded when the 
payables are created, that is, when the purchaser incurs a liability to the seller. This implies 
that expenditure on a good is to be recorded at the time its ownership changes; expenditure 
on a service is recorded when the delivery of the service is completed. 
3.80. Expenditure on a good acquired under a hire purchase or similar credit agreement (and also 
under a financial lease) should be recorded at the time the good is delivered even if there is 
no legal change of ownership at this point. 
3.81. Own-account consumption should be recorded when the output retained for own final 
consumption is produced. 
3.82. The final consumption expenditure of households is recorded at purchasers' prices. This is 
the price the purchaser actually pays for the products at the time of the purchase. A more 
detailed definition can be found in para 3.06. 
3.83. Goods and services supplied as compensation of employees in kind are valued at basic 
prices when produced by the employer and at the purchasers' prices of the employer when 
bought in by the employer. 
3.84. Retained goods or services for own consumption are valued at basic prices. 
3.85. Final consumption expenditures by general government or NPISH on products produced 
by themselves are recorded at the time they are produced, which is also the time of delivery 
of such services by government or NPISH. For the final consumption expenditure on goods 
and services supplied via market producers, the time of delivery is the time of recording. 
3.86. Final consumption expenditures by general government or NPISH are equal to the sum of 
their output, plus the expenditure on products supplied to households via market producers 
(i.e. social transfers in kind) minus the payments by other units minus own-account capital 
formation. 
Time of recording and valuation of actual final consumption 
3.87. Goods and services are acquired by institutional units when they become the new owners 
of the goods or when the delivery of goods or services to them is completed. 
87 -
3.88. Acquisitions - actual final consumption - are valued at the purchasers' prices for the units 
that incur the expenditures. 
Transfers in kind other than social transfers in kind from government and NPIs serving 
households are treated as if they were transfers in cash. Accordingly, the values of the 
goods or services are actually recorded as expenditures by the institutional units or sectors 
that acquire them. 
3.89. The values of the two aggregates of final consumption expenditure and actual final 
consumption are the same. The goods and services acquired by resident households 
through social transfers in kind, thus, are valued at the same prices at which they are valued 
in the expenditure aggregates. 
GROSS CAPITAL FORMATION (P5) 
3.90. Gross capital formation consists of: 
- gross fixed capital formation (P51); 
- changes in inventories (P52); 
- acquisitions less disposals of valuables (P53). 
3.91. Gross capital formation means gross of consumption of fixed capital. Net capital formation 
is arrived at by deducting consumption of fixed capital from gross capital formation. 
Gross fixed capital formation 
3.92. Definition: Gross fixed capital formation consists of resident producers' acquisitions, less 
disposals, of fixed assets during a given period plus certain additions to the 
value of non-produced assets realised by the productive activity of producer or 
institutional units. Fixed assets are tangible or intangible assets produced as 
outputs from processes of production that are themselves used repeatedly, or 
continuously, in processes of production for more than one year. 
3.93. Gross fixed capital formation consists of both positive and negative values: 
a) positive values: 
new or existing fixed assets purchased; 
fixed assets produced and retained for producers' own use (including own 
account production of fixed assets not yet completed or fully mature); 
new or existing fixed assets acquired through barter; 
new or existing fixed assets received as capital transfers in kind; 
new or existing fixed assets acquired by the user under a financial lease; 
major improvements to fixed assets and existing historic monuments; 
natural growth of those natural assets that yield repeat products; 
88-
b) negative values (i.e. disposals of fixed assets recorded as negative acquisitions): 
existing fixed assets sold; 
existing fixed assets demolished, scrapped or slaughtered by their owner; 
existing fixed assets surrendered in barter; 
existing fixed assets surrendered as capital transfers in kind. 
3.94. The disposals components of fixed assets exclude: 
- consumption of fixed capital (which includes anticipated normal accidental damage); 
- exceptional losses, such as those due to drought or other natural disasters (recorded as 
an other change in the volume of assets). 
3.95. The following types of gross fixed capital formation may be distinguished: 
a) acquisitions, less disposals, of tangible fixed assets: 
dwellings; 
other buildings and structures; 
machinery and equipment; 
and cultivated assets (trees and livestock); 
b) acquisitions, less disposals, of intangible fixed assets: 
mineral exploration; 
computer software; 
entertainment, literary or artistic originals; 
other intangible fixed assets. 
c) major improvements to tangible non-produced assets, in particular those pertaining to 
land (though the acquisition of non-produced assets is not included); 
d) costs associated with the transfers of ownership of non-produced assets, like land and 
patented assets (though the acquisition of these assets themselves is not included). 
3.96. Major improvements to land include: 
- reclamation of land from sea by the construction of dykes, sea walls or dams for this 
purpose; 
- clearance of forests, rocks, etc. to enable land to be used in production for the first time; 
- draining of marshes or the irrigation of deserts by the construction of dykes, ditches and 
irrigation channels; 
- prevention of flooding or erosion by the sea or rivers by the construction of breakwaters, 
sea walls or flood barriers. 
- 89 
These activities may lead to the creation of substantial new structures such as sea walls, 
flood barriers and dams but these are not themselves used directly to produce other goods 
and services in the way that most strucmres are. Their construction is undertaken to obtain 
more or better land, and it is the land, a non-produced asset, that is needed for production. 
For example, a dam built to produce electricity serves quite a different purpose from a dam 
built to keep out the sea. Only building the latter type of dam should be classified as an 
improvement to land. 
3.97. Gross fixed capital formation includes borderline cases like: 
- acquisitions of houseboats, barges, mobile homes and caravans used as residences of 
households and any associated structures such as garages; 
- structures and equipment used by the military - similar to those utilised by civilian 
producers - such as airfields, docks, roads and hospitals; 
- light weapons and armoured vehicles used by non-military units; 
- changes in livestock used in production year after year, such as breeding stock, dairy 
cattle, sheep reared for wool and draught animals; 
- changes in trees that are cultivated year after year, such as fruit trees, vines, rubber trees, 
palm trees, etc.; 
- improvements to existing fixed assets that go well beyond the requirements of ordinary 
maintenance and repairs; 
- the acquisition of fixed assets by financial leasing. 
3.98. Gross fixed capital formation excludes: 
a) transactions included in intermediate consumption, like: 
purchase of small tools for production purposes (see para 3.60.e); 
ordinary maintenance and repairs; 
purchase of military weapons and their supporting systems ; 
the purchase of fixed assets to be used under an operational leasing 
contract (see also Annex on leasing and hire purchase of durable goods); 
b) transactions recorded as changes in inventories; 
animals raised for slaughter, including poultry; 
trees grown for timber (work-in-progress); 
c) machinery and equipment acquired by households for purposes of final consumption 
(final consumption expenditure); 
d) holding gains and losses on fixed assets (other changes in assets). 
e) catastrophic losses on fixed assets (other changes in assets), e.g. destruction of 
cultivated assets and livestock by outbreaks of disease (and not normally covered by 
insurance) or damage due to abnormal flooding, wind damage or forest fires (see 
chapter VI). 
-90 
3.99. Gross fixed capital formation in the form of improvements to existing fixed assets is to be 
classified with acquisitions of new fixed assets of the same kind. 
3.100. Intangible fixed assets typically consist of new information, specialized knowledge, etc. 
and comprise: 
- mineral exploration comprising costs of actual test drilling, aerial or other surveys, 
transportation costs, etc.; 
- computer software and large data bases to be used in production for more than one year; 
- literary and artistic originals of manuscripts, renderings, models, films, sound 
recordings, etc. 
3.101. For both fixed assets and non-produced non-financial assets, the costs of ownership 
transfer incurred by their new owner consist of: 
a) charges incurred in taking delivery of the asset (new or existing asset) at the required 
location and time, such as transport charges, installation charges, erection charges, etc.; 
b) professional charges or commissions incurred, such as fees paid to surveyors, engineers, 
lawyers, valuers, etc., and commissions paid to estate agents, auctioneers, etc.; 
c) taxes payable by the new owner on the transfer of ownership of the asset. 
All these costs are to be recorded as gross fixed capital formation by the new owner. Note 
that the taxes are to be treated as taxes on the services of intermediairies and not as taxes 
on the asset bought. 
Time of recording and valuation of gross fixed capital formation 
3.102. Gross fixed capital formation is recorded when the ownership of the fixed assets is 
transferred to the institutional unit that intends to use them in production. 
Modification to this general rule is needed in case of: 
- financial leasing (a change of ownership is then imputed); 
- own-account fixed capital formation. 
Assets acquired under a financial lease are recorded as if the user became owner when he 
takes possession of the goods. Own account capital formation is recorded when produced. 
3.103. Gross fixed capital formation is valued at purchasers' prices including installation charges 
and other costs of ownership transfer. When produced on own-account it is valued at the 
basic prices of similar fixed assets (which implies a mark-up for net operating surplus or 
mixed income) or at the costs of production if such prices are not available. 
3.104. Acquisitions of intangible fixed assets are valued in different ways: 
a) For mineral exploration: by the costs of actual test drillings and borings, and the costs 
incurred to make it possible to carry out tests (such as aerial or other surveys); 
b) For computer software: by purchasers' prices when purchased on the market, while 
valued at its estimated basic price (or at its costs of production if not feasible) when 
developed in-house; 
c) For entertainment, literary or artistic originals: valued at the price paid by the purchaser 
when it is sold, or if not sold, at the basic price paid for similar originals, its production 
costs or the discounted value of the future receipts expected from using it in production. 
3.105. Disposals of existing fixed assets by sale are valued at the (basic) prices after deducting 
any costs of ownership transfer incurred by the seller. 
3.106. Costs of ownership transfer apply to both produced asses, among which fixed assets, and 
non-produced assets, like land. 
These costs are integrated in the purchasers' prices in the case of produced assets. They 
must be separated from the purchases and sales themselves in the case of land and other 
non-produced assets and recorded under a separate heading in the classification of gross 
fixed capital formation. 
Changes in inventories (P52) 
3.107. Definition: Changes in inventories are measured by the value of the entries into inventories 
less the value of withdrawals and the value of any recurrent losses of goods 
held in inventories. 
3.108. Due to physical deterioration, or accidental damage or pilfering, recurrent losses may occur 
to all kinds of goods in inventories, such as: 
- losses of materials and supplies; 
- losses in the case of work-in-progress; 
- losses of finished goods; 
- losses of goods for resale (e.g. shoplifting). 
3.109. Inventories consists of the following categories: 
a) materials and supplies; 
Materials and supplies consist of all commodities held in stock with the intention of 
using them as intermediate inputs in production; this includes commodities held in stock 
by the government. Items such as gold, diamonds, etc. are included when intended for 
industrial use or other production. 
b) work-in-progress; 
Work-in-progress consists of output produced that is not yet finished. It is recorded in 
the inventories of its producer. It can take a variety of different forms, e.g.: 
92 -
growing crops; 
maturing trees and livestock; 
uncompleted structures (except those produced under a contract of sale 
agreed in advance or on own-account which are treated as fixed capital 
formation); 
uncompleted other fixed assets, e.g. ships and oil rigs; 
partially completed research for a legal or consultant's dossier; 
partially completed film productions; 
partially completed computer programs. 
Work-in-progress must be recorded for any production process that is not finished at the 
end of the given period. In particular, this is significant in quarterly accounts, e.g. 
agricultural crops not being completed within a quarter of a year. 
Reductions in work-in-progress take place when the production process is completed. 
At that point, all work-in-progress is transformed into a finished product. 
c) finished goods; 
Finished goods as part of inventories consist of outputs that their producer does not 
intend to process further before supplying them (also when supplied for intermediate 
input into other processes of production). 
d) goods for resale. 
Goods for resale are goods acquired for the purpose of reselling them in their present 
state. 
Time of recording and valuation of changes in inventories 
3.110. The time of recording and valuation of changes in inventories should be consistent with 
that of other transactions in products. This applies in particular to intermediate 
consumption (e.g. for materials and supplies), output (e.g. work-in-progress and output 
from storage of agricultural products) and gross fixed capital formation (e.g. work-in-
progress). Consistency is also required for processing-to-order flows. For example, if 
goods are processed abroad and it involves a substantial physical change in the goods, the 
goods are to be included in exports (and, later, in imports) (see para 3.125.). This export is 
reflected by a concomittant reduction in the inventories and the related import is later also 
recorded as an increase in the inventories (when not immediately used or sold). 
3.111. Changes in inventories should be valued at the time of entering the inventories (for goods 
entering) or at the time of withdrawal (for goods withdrawn). 
- 91 
3.112. The prices used should be consistent with those of other flows, implying more specifically 
that: 
a) Output of finished goods transferred into the producer's inventories are valued as if they 
were sold at that time, at current basic prices; 
b) Additions to work-in-progress is valued in proportion to the estimated current basic 
price of the finished product; 
c) Reductions in work-in-progress (as withdrawn from inventories when production is 
finished) is valued at basic prices; 
d) Goods transferred out of inventories for sale are valued at basic prices; 
e) Goods for resale entering the inventories of wholesalers and retailers, etc. are valued at 
their actual or estimated purchasers' prices of the trader; 
f) Goods for resale withdrawn from inventories are valued at the purchasers' prices at 
which they can be replaced at the time they are withdrawn (not when acquired). 
3.113. Losses as a result of physical deterioration, insurable accidental damage or pilfering are 
recorded and valued as follows: 
- For materials and supplies: as materials and supplied actually withdrawn to be used up 
in production (intermediate consumption). 
- For work-in-progress: as deduction from the additions accruing to production carried 
out in the same period; 
- For finished goods and goods for resale: treated as withdrawals at the current price of 
undeteriorated goods; 
3114. The previous paragraphs have described the conceptually correct valuation of each 
individual transaction in and out of inventories necessary to be consistent with the 
valuation of output, intermediate consumption and final uses. In practice, this will often 
prove too difficult to apply and approximation methods should be used: 
(a) When changes in the volume of inventories are fairly regular, a practical method 
which comes close to the theoretical valuation principle is to multiply the volume 
change of the inventories by the average prices for the period (purchasers' prices for 
inventories held by users or by wholesalers or retailers, basic prices for inventories 
held by their producers). 
(b) In case the prices of the goods involved remain fairly constant, even large fluctuations 
in the volume of inventories may not invalidate a simple approximation, i.e. the 
multiplication of the volume change with the average price. 
(c) If both the volume and the prices of the inventories change substantially within the 
accounting period, more sophisticated approximation methods are required. For 
example, quarterly valuation of the changes in inventories or the use of a priori 
information about the distribution of the fluctuation within the accounting period 
(fluctuations may be largest at the end of the calendar year, during harvest time, etc.). 
94 -
(d) If only information about the values at the beginning and end of the period are 
available (e.g. in case of whole sale or retail trade in which inventories often exist of 
many different products), the changes in volume between the beginning and end of the 
period should also be estimated. This can be done by estimating (assuming) turn-over 
rates by type of product. 
Note that seasonal changes in prices may partly reflect a difference in quality, e.g. 
clearance prices or off-season prices for fruit and vegetables. These changes in quality 
should be treated as changes in the volume. 
Acquisitions less disposals of valuables (P53) 
3.115. Definition: Valuables are non-financial goods that are not used primarily for production or 
consumption, do not deteriorate (physically) over time under normal conditions 
and that are acquired and held primarily as stores of value. 
3.116. Valuables encompass the following types of goods: 
a) precious stones and metals, such as diamonds, non-monetary gold, platihum, silver, etc.; 
b) antiques and other art objects, such as paintings, sculptures, etc.; 
c) other valuables, such as jewellery fashioned out of precious stones and metals and 
collectors items. 
These types of goods are to be recorded as acquisition or disposal of valuables in case of: 
- the acquisition or disposal of non-monetary gold, silver, etc. by (central) banks and 
other financial intermediairies; 
- the acquisition or disposal of these goods by enterprises whose principal or secondary 
activity does not involve the production or trade in such types of goods; as a 
consequence, this acquisition or disposal is not included in the intermediate 
consumption or fixed capital formation of these enterprises; 
- the acquisition or disposal of such goods by households; as a consequence, such 
acquisitions are not included in final consumption expenditure by households. 
In the ESA, by convention also the following cases are recorded as acquisition or disposal 
of valuables: 
- the acquisition or disposal of these goods by jewelleries and art dealers (following the 
general definition of valuables the acquisition of these goods by jewelleries and art 
dealers should be recorded as changes in stocks); 
- the acquisition or disposal of these goods by museums (following the general definition 
of valuables the acquisition by a museum of these goods should be recorded as fixed 
capital formation). 
This convention avoids frequent reclassification between the three main types of capital 
formation, i.e. between acquisition less disposal of valuables, fixed capital formation and 
changes in stocks (e.g. in the case of transactions of such goods between households and 
art dealers). 
3.117. The production of valuables is valued at basic prices (see also para 3.57. on production of 
originals). All other acquisitions of valuables are valued at the purchasers' prices paid for 
them, including any agents' fees or" commissions. They also include trade margins when 
bought from dealers. Disposals of valuables are valued at the prices received by sellers, 
after deducting any fees or commissions paid to agents or other intermediaries. 
Disregarding the production of valuables, in aggregate, acquisitions less disposals between 
resident sectors cancel out, leaving only agents or dealers margins. 
IMPORTS AND EXPORTS OF GOODS AND SERVICES (P6 and P7) 
3.118. Definition: Exports of goods and services consist of transactions in goods and services 
(sales, barter, gifts or grants) from residents to non-residents. 
3.119. Definition: Imports of goods and services consist of transactions in goods and services 
(purchases, barter, gifts or grants) from non-residents to residents. 
3.120. Imports and exports of goods and services do not include: 
- establishment trade, i.e.: 
* deliveries to non-residents by non-resident affiliates of resident 
enterprises, e.g. sales abroad by foreign affiliates of a multinational 
owned/controlled by residents; 
* deliveries to residents by resident affiliates of non-resident enterprises, 
e.g. sales by domestic affiliates of a foreign multinational. 
- primary income flows with abroad, like compensation of employees, interest and 
revenues from direct investment; the revenues from direct investment may include an 
indisguishable part for the provision of various services, e.g. training of employees, 
management services and the use of patents and trade marks; 
- the sale or purchase of financial assets or non-produced assets, like land and patents. 
3.121. Imports and exports of goods and services should be distinguished into: 
- Intra-EU deliveries; 
- Imports and exports outside the EU. 
For convenience they will both be referred to as imports and exports here. 
Imports and exports of goods (P61 and P71) 
3.122. Imports and exports of goods occur when there are changes of ownership of goods between 
residents and non-residents (whether or not there are also corresponding physical 
movements of goods across frontiers). 
3.123. However, in four instances the change of ownership principle is modified in recording 
imports and exports of goods: 
a) Financial leasing: a change of ownership from lessor to lessee is to be imputed for 
goods under a financial lease; it is to be recorded when the lessee takes possession of 
the good (see Annex on leasing and hire purchase of durable goods); 
- 96 -
(7) 
b) Deliveries between affiliated enterprises (branch or subsidiary, or foreign affiliate): a 
change of ownership is to be imputed whenever goods are delivered between affiliated 
enterprises; 
c) Goods for significant processing to order or repair are recorded both in imports and 
exports although no change of ownership occurs; 
d) Merchanting: no import or export is recorded when merchants or commodity dealers 
buy from non-residents and then sell again to non-residents within the same accounting 
period. A similar treatment is to be employed for merchanting by non-residents. 
3.124. In the following cases exports of goods occur without the goods ever crossing the country's 
frontier: 
a) Goods produced by resident units operating in international waters are sold directly to 
non-residents in foreign countries (oil, natural gas, fishery products, maritime salvage, 
etc.); 
b) Transportation equipment or other movable equipment not tied to a fixed location need 
not cross the frontier of the exporting country as a result of being sold by a resident to a 
non-resident; 
c) Goods are lost or destroyed after changing ownership before they have crossed the 
frontier of the exporting country. 
Analogous cases pertain to imports of goods. 
3.125. Imports and exports of goods include transactions between residents and non-residents in: 
- non-monetary gold, i.e. gold not used (anymore) for the purposes of monetary policy; 
- silver bullions, diamonds and other precious metals and stones; 
- paper money and coins not in circulation and unissued securities (valued as goods, not 
at face value); 
- electricity, gas and water; 
- livestock driven across frontiers; 
- parcel post; 
- government exports including goods financed by grants and loans; 
- goods transferred to or from the ownership of a buffer stock organization; 
- goods delivered by a resident enterprise to its non-resident affiliates; 
- goods received by a resident enterprise from its non-resident affiliates; 
- smuggled goods; 
- other unrecorded shipments, such as gifts and those of less than a stated minimum 
value; 
- goods processed to order abroad when a substantial physical change in the goods is 
involved. Similar goods processed on the domestic territory on behalf of non-residents; 
97-
- investment goods repaired abroad when a substantial amount of reconstruction work or 
manufacturing is involved. Similar goods repaired on the domestic territory on behalf of 
non-residents. 
3.126. Imports and exports of goods exclude the following goods which nevertheless may cross 
the national frontier: 
- goods in transit through a country; 
- goods shipped to or from a country's own embassies, military bases or other enclaves 
inside the national frontiers of another country; 
- transportation equipment and other movable kinds of equipment which leave a country 
temporarily, without any change of ownership (e.g. construction equipment for 
installation or construction purposes abroad); 
- equipment and other goods which are sent abroad for minor processing, maintenance, 
servicing or repair; 
- other goods which leave a country temporarily, being generally returned within a year in 
their original state and without change of ownership (e.g. goods sent abroad for 
exhibition and entertainment purposes, goods under an operating lease, including leases 
for several years, goods returned because expected sales did not materialize); 
- goods on consignment lost or destroyed after crossing a frontier before change of 
ownership occurs. 
3.127. In principle, imports and exports of goods should be recorded when the ownership of the 
goods is transferred. In practice, a change of ownership is considered to occur at the time 
the parties to the transaction record it in their books or accounts. This may not coincide 
with the various stages of the contractual process, like: 
- the time of commitment (contract date); 
- the time of provision of goods and services and acquisition of a claim for payment 
(transfer date); 
- the time of settlement of that claim (payment date). 
3.128. Imports and exports of goods are to be valued free on board at the border of the exporting 
country (fob). This value consists of: 
- the value of the goods at basic prices; 
- plus the related transport and distributive services up to that point of the border, 
including the cost of loading on to a carrier for onward transportation (where 
appropriate) (see table 3.1, second column in the second part of the table); 
- plus any taxes less subsidies on the goods exported; for intra-EC deliveries this includes 
VAT and other taxes on the goods paid in the exporting country. 
In the supply and use and symmetrical input-output tables, imports of goods for individual 
product groups has to be valued differently: at the cost-insurance-freight (cif) price at the 
border of the importing country. 
98 
Definition: The cif price is the price of a good delivered at the frontier of the importing 
country, or the price of a service delivered to a resident, before the payment 
of any import duties or other taxes on imports or trade and transport margins 
within the country (for the trade and transport margins included, see also 
table 3.2, third column in second part of the table). 
3.129. Proxies or substitute measures for the fob value may be necessary under certain 
circumstances, such as: 
a) Barter of goods should be valued at the basic prices that would have been received if the 
goods had been sold for cash. 
b) Transactions between affiliated enterprises: as a rule, actual transfer values should be 
used. However, if they largely differ from market prices, they should be replaced by an 
estimated market price equivalent, or at least be separately identified for analytical 
purposes. 
c) Goods transferred under a financial lease: the goods should be valued on the basis of the 
purchasers' price paid by the lessor (not by the cumulative value of the rental payments). 
d) Imports of goods to be estimated on the basis of customs data (for extra-EC trade) or 
Intrastat-information (for intra-EC trade). Both data sources do not apply fob valuation, 
they use respectively the cif value at the EC border and cif values at the national border. 
As fob-values are only used at the most aggregate level and cif-values are used at the 
product group level, these modifications have only to be applied at the most aggregate 
level, i.e. the cif/fob adjustment. 
e) Imports and exports of goods to be estimated on the basis of survey information or 
various types of ad hoc information. In such instances, usually only the total value of 
sales split out by product can be obtained. As a consequence, the estimate will be based 
on purchasers' prices and not on fob values. 
Imports and exports of services (P62 and P72) 
3.130. Definition: Exports of services consist of all services rendered by residents to non­
residents. 
3.131. Definition: Imports of services consist of all services rendered by non-residents to 
residents. 
3.132. Exports of services include the following borderline cases: 
- Transportation of exported goods after they have left the frontier of the exporting 
country when provided by a resident carrier (cases 2 and 3 in table 3.1); 
- Transportation of imported goods by a resident carrier: 
99 
* upto the frontier of the exporting country when goods are valued fob to 
offset the transportation value included in the fob-value (case 3 in table 
3.2); 
* upto the frontier of the importing country when goods are valued cif to 
offset the transportation value included in the cif-value (cases 3 and 2 cif 
in table 3.2); 
- Transportation of goods by residents on behalf of non-residents which does not involve 
imports or exports of the goods (e.g. the transport of goods that do not leave the country 
as exports or the transport of goods outside the domestic territory); 
- International or national passenger transportation on behalf of non-residents by resident 
carriers; 
- Minor processing and repair activities on behalf of non-residents; 
- Construction services when a construction site office abroad is not treated as a quasi-
corporation. This applies to construction projects lasting less than a year and whose 
output is not gross fixed capital formation (see para 2.09. and in particular the 
corresponding note 1); 
- Installation of equipment abroad when a project is of limited duration by its nature; 
- Financial services by the amount of the explicit commissions and fees; 
- Insurance services by the amount of the services charge; 
- Expenditure by non-resident tourists and business travellers (by convention classified as 
services; however, for the purposes of the supply and use and symmetric input-output 
tables, a global breakdown by products may be necessary); 
- Expenditure by non-residents on health and education services provided by residents; 
this includes the provision of these services on the domestic territory as well as abroad; 
- Services of owner-occupied holidays homes of non-residents (see para 3.54.); 
- Royalties and license fees, receipts of which are associated with the authorized use of 
intangible non-produced non-financial assets and property rights, such as patents, 
copyrights, trademarks, industrial processes, franchises, etc., and with the use through 
licensing agreements of produced originals or prototypes, such as manuscripts, 
paintings, etc. 
3.133. For imports of services most borderline cases are the mirror-image of those for exports of 
services; therefore, only a limited number of specific clarifications are necessary for 
imports of services. 
100 
3.134. Imports of transport services include the following borderline cases: 
- Transportation of exported goods upto the frontier of the exporting country when 
provided by a non-resident carrier to offset the transportation value included in the fob-
value of the exported goods (case 4 in table 3.1); 
- Transportation of imported goods by a non-resident carrier 
* from the frontier of the exporting country as a separate transportation 
service when imported goods are valued fob (cases 4 and 5 fob in table 
3-2); 
* from the frontier of the importing country as a separate transportation 
service when imported goods are valued cif:(in this case the value of the 
transportation service between the frontiers of the exporting and the 
importing country is already included in the cif-value of the good; case 4 
in table 3.2); 
- Transportation of goods by non-residents on behalf of residents which does not involve 
imports or exports of goods (but e.g. transport of goods in transit or transport outside the 
domestic territory); 
- International or national passenger transportation on behalf of residents by non-resident 
carriers. 
Imports of transport services does not include transportation of exported goods after they 
have left the frontier of the exporting country when provided by a non-resident carrier 
(cases 5 and 6 in table 3.1). Exports of goods are valued fob and all such transport services 
are thus to be regarded as transactions between non-residents, i.e. between a non-resident 
carrier and a non-resident importer. This applies even when these transportation services 
are paid under export-cif-contracts by the exporter. 
3.135. Imports in respect of direct purchases abroad by residents cover all purchases of goods and 
services made by residents while travelling abroad for business or personal purposes. Two 
categories must be distinguished because they require different treatment: 
- expenditures by business travellers are intermediate consumption; 
- expenditures by other travellers on personal trips are household final consumption 
expenditure. 
3.136. Imports and exports of services are recorded at the time at which they are rendered, which 
mostly coincides with the time at which the services are produced. Imports are to be valued 
at purchasers' price and exports of services at basic prices: 
Table 3.1 The treatment of transportation of exported goods. Explanation of how to read this 
table: The first part of this table indicates that there are six different possibilities of 
transportation of exported goods, depending on whether the carrier is resident or not 
and depending on where the transport takes place: from a place on the domestic 
territory to the national border, from the national border to the border of the importing 
country or from the border of the importing country to a place within the importing 
country. In the second part of this table, for each of these six possibilities, it is 
indicated whether they are to be recorded as exports of goods, exports of services, 
imports of goods or imports of services. 
Domestic territory Territory in between Territory of importing 
country 
1. resident carrier => 2. resident carrier => 3. resident carrier => 
4. non-resident carrier =^> 5. non-resident carrier => 6. non-resident carrier => 
1. 
2. 
3. 
4. 
5. 
6. Exports of 
goods 
(fob) 
X 
X Exports of 
services 
X 
X Imports of 
goods 
(cif/fob) 
-Imports of 
services 
X 
102 -
Table 3.2 The treatment of transportation of imported goods. Explanation of how to read this 
table: The first part of this table indicates that there are six different possibilities of 
transportation of imported goods, depending on whether the carrier is resident or not 
and depending on where the transport takes place: from a place in the exporting 
country to the border of this exporting country, from the border of the exporting 
country to the border of the importing country and from the border of the importing 
country to a place within the importing country. In the second part of this table, for 
each of these six possibilities, it is indicated whether they are to be recorded as imports 
of goods, imports of services, exports of goods or exports of services. In some 
instances (cases 2 and 5), this recording depends on the valuation principle applied for 
imported goods. 
Domestic territory Territory in between Territory of exporting 
country 
1. resident carrier <= 2. resident carrier <= 3. resident carrier <= 
4. non-resident carrier <= 5. non-resident earner <= 6. non-resident carrier <= 
1. 
2. 
3. 
4. 
5. 
6. Valuation 
of 
imported 
goods 
cif/fob 
fob 
cif 
cif7fob 
cif/fob 
fob 
cif 
cif/fob Imports of 
goods 
X 
X 
X 
X Imports of 
services 
X 
X Exports of 
goods 
(fob) 
-Exports of 
services 
X 
X 
Note that the transition from valuation of imported goods at cif to fob consists of: 
cif/fob adjustment, i.e. from 2 cif to 2 fob (reduces total imports and exports); 
cif/fob reclassification, i.e. from 5 cif to 5 fob (leaves total imports and exports unchanged). 
103 
TRANSACTIONS IN EXISTING GOODS 
3.137. Definition: Existing goods are goods that already have had a user (other than inventories). 
3.138. Existing goods include: 
- existing buildings and other fixed capital goods which are sold by producer units to 
other units: 
* to be re-used as such; 
* to be demolished or broken up; the resulting products usually become 
raw materials (e.g. scrap iron) used for the production of new goods (e.g. 
steel). 
- valuables which are sold from one unit to another; 
- existing consumer durables which are sold by households or military authorities to other 
units: 
* to be re-used as such; 
* to be broken up and converted into demolition materials. 
- existing non-durable goods (e.g. waste paper, rags, old clothes, old bottles, etc.) which 
are sold by any unit, either to be used again or to become raw material for the 
manufacture of new goods (recovered goods) 
3.139. The transfer of existing goods is recorded as a negative expenditure (acquisition) for the 
seller and a positive expenditure (acquisition) for the purchaser. 
3.140. This has the following consequences: 
(a) When the sale of an existing fixed asset or valuable takes place between two resident 
producers, the positive and negative values recorded for gross fixed capital formation 
cancel out for the economy as a whole except for the costs of ownership transfer. 
(b) When an existing immovable fixed asset (e.g. a building) is sold to a non-resident, by 
convention the latter is treated as purchasing a financial asset, i.e. the equity of a 
notional resident unit. This notional resident unit is then deemed to purchase the fixed 
asset. As a consequence; the sale and purchase of the fixed asset takes place between 
residents. 
(c) When an existing movable fixed asset, such as a ship or aircraft, is exported, no 
positive gross fixed capital formation is recorded elsewhere in the economy to offset 
the seller's negative gross fixed capital formation. 
(d) Some durable goods, such as vehicles, may be classified as fixed assets or as consumer 
durables depending upon the owner and the purpose for which they are used. If, 
therefore, the ownership of such a good is transferred from an enterprise to a 
household to be used for final consumption, negative gross fixed capital formation is 
recorded for the enterprise and positive consumption expenditure by the household. In 
the less common case where ownership of such a good is transferred from a household 
to an enterprise, for the household negative final consumption expenditure should be 
recorded and for the enterprise positive gross fixed capital formation. 
104 
(e) Transactions in existing valuables are to be recorded as the acquisition of a valuable 
(positive gross capital formation) by the purchaser and as the disposal of a valuable 
(negative gross capital formation) by the seller. In case of a transaction with the Rest 
of the World, the import or export of a good is to be recorded (see para 3.125.). The 
sale of a valuable by a household is not to be recorded as negative final consumption 
expenditure. 
(f) When existing military durables are sold abroad by the government, this should be 
recorded as an export of goods and as negative intermediate (and final) consumption 
by the government. 
3.141. For the selling costs incurred by the former owner (costs of ownership transfer), a holding 
loss has to be recorded. A similar entry is to be made for the part of his original acquisition 
costs that have not been written down as consumption of fixed capital. 
3.142. Transactions in existing goods should be recorded at the time ownership changes. The 
valuation principles to be applied are those appropriate to the type(s) of transactions in 
product involved. 
105 
CHAPTER IV 
DISTRIBUTIVE TRANSACTIONS 
Sl*i 107 
INTRODUCTION 
4.01. Distributive transactions consist of transactions by means of which the value added 
generated by production is distributed to labour, capital and government, and of 
transactions involving the redistribution of income and wealth. 
The system draws a distinction between current and capital transfers, with the latter 
deemed to redistribute saving or wealth rather than income. 
COMPENSATION OF EMPLOYEES (Dl) 
4.02. Definition: compensation of employees (Dl) is defined as the total remuneration, in cash 
or in kind, payable by an employer to an employee in return for work done by 
the latter during the accounting period. 
Compensation of employees is broken down into: 
- wages and salaries (Dl 1): wages and salaries in cash ; wages and salaries in kind 
- employers' social contributions (D12): employers' actual social contributions (D121); 
employers' imputed social contributions (D122). 
Wages and salaries (Dll) 
1. Wages and salaries in cash: 
4.03. Wages and salaries in cash include the values of any social contributions, income taxes, etc 
payable by the employee even if they are actually withheld by the employer and paid 
directly to social insurance schemes, tax authorities, etc on behalf of the employee: 
Wages and salaries in cash include the following kinds of remuneration: 
a) basic wages and salaries payable at regular intervals, 
b) enhanced rates of pay for overtime, nightwork, weekend work, disagreeable or 
hazardous circumstances 
c) cost of living allowances, local allowances and expatriation allowances 
d) bonuses based on productivity or profits, Christmas and New Year bonuses excluding 
employee social benefits (see 4.07. c), "13th - 14th month" pay (annual supplementary 
pay) 
e) allowances for transport to and from work, excluding allowances or reimbursement of 
employees for travelling, separation, removal and entertainment expenses incurred in 
the course of their duties (see 4.07. a). 
f) holiday pay for official holidays or annual holidays 
g) commissions, tips, attendance and directors' fees paid to employees 
h) ad-hoc bonuses or other exceptional payments linked to the overall performance of the 
enterprise made under incentive schemes 
i) payments made by employers to their employees under saving schemes 
j) exceptional payments to employees who leave the enterprise, if those payments are not 
linked to a collective agreement 
k) housing allowances paid in cash by employers to their employees. 
108 
2. Wages and salaries in kind: 
4.04. Definition: Wages and salaries in kind consist of goods and services, or other benefits, 
provided free or at reduced prices by employers, that can be used by employees 
in their own time and at their own discretion, for the satisfaction of their own 
needs or wants or those of other members of their households. Those goods and 
services, or other benefits, are not necessary for the employers' production 
process. For the employees, those wages and salaries in kind represent an 
additional income: they would have paid a market price if they had bought 
these goods or services by themselves. 
4.05. The most common are: 
a) meals and drinks, including those consumed when travelling on business (because they 
would have been taken anyway) but excluding special meals or drinks necessitated by 
exceptional working conditions. Price reductions obtained in free or subsidized 
canteens, or obtained by luncheon vouchers, are to be included in wages and salaries in 
kind. 
b) own account and purchased housing or accommodation services of a type that can be 
used by all members of the household to which the employee belongs 
c) uniforms or other forms of special clothing which employees choose to wear frequently 
outside of the workplace as well as at work 
d) the services of vehicles or other durables provided for the personal use of employees 
e) goods and services produced as outputs from the employer's own processes of 
production, such as free travel for the employees of railways or airlines, free coal for 
miners, or free food for employees in agriculture 
f) the provision of sports, recreation or holiday facilities for employees and their families 
g) transportation to and from work, except when organised in the employer's time, car 
parking 
h) creches for the children of employees 
i) payments made by employers to works councils or similar bodies 
j) bonus shares distributed to employees 
k) remuneration in kind may also include the value of the interest foregone by employers 
when they provide loans to employees at reduced, or even zero, rates of interest. This 
value may be estimated as the amount the employee would have to pay if average 
mortgage (when buying houses) or consumer loan (when buying other goods and 
services) interest rates were charged, less the amount of interest actually paid. 
An imputed payment from the employee is rerouted in the primary distribution of income 
account back to the employer. 
|0O 
4.06. Goods and services, or other advantages, should be valued at basic prices when produced 
by the employer, and at purchasers' prices when purchased by the employer (that is, the 
price actually paid by the employer). 
When provided free, the whole value of the wages and salaries in kind is calculated 
according to the basic prices (or purchasers' prices of the employer when purchased by 
him) of the goods and services, or other advantages, in question. 
When provided at reduced prices, the value is given by the difference between the 
calculation explained above and the amount paid by the employee 
4.07. Wages and salaries do not include: 
a) expenditure by employers which is to their own benefit as well as to that of their 
employees, because it is necessary for the employers' production process 
- allowances or reimbursement of employees for travelling, separation, removal and 
entertainment expenses incurred in the course of their duties 
- expenditure on providing amenities at the place of work, medical examinations 
required because of the nature of the work, supplying working clothes which are 
worn exclusively, or mainly, at work 
- accommodation services at the place of work of a kind which cannot be used by 
the households to which the employees belong - barracks, cabins, dormitories, 
huts and so on 
- special meals or drinks necessitated by exceptional working conditions 
- allowances paid to employees for the purchase of tools, equipment or special 
clothing needed exclusively, or primarily, for their work, or that part of their 
wages or salaries which, under their contracts of employment, employees are 
required to devote to such purchases. 
Such expenditure on goods and services that employers are obliged to provide to their 
employees in order for them to be able to carry out their work is treated as intermediate 
consumption by employers. 
b) the amounts of wages and salaries which employers continue to pay to their employees 
temporarily in the case of sickness, maternity, industrial injury, disability, redundancy, 
etc. These payments are treated as unfunded employee social insurance benefits (D623), 
with the same amounts being shown under employers' imputed social contributions (D 
122) 
c) other unfunded employee social benefits, in the form of children's, spouses', family, 
education or other allowances in respect of dependants, and in the form of the provision 
of free medical services (other than those necessitated by the nature of the work) to 
employees or their families 
d) any taxes payable by the employer on the wage and salary bill - for example, a payroll 
tax. Such taxes are treated as other taxes on production. 
1 10 
Employers' social contributions (D12) 
4.08. An amount equal to the value of the social contributions incurred by employers in order to 
secure for their employees the entitlement to social benefits needs to be recorded under 
compensation of employees. Employers' social contributions may be either actual or 
imputed. 
Employers' actual social contributions (D121) 
4.09. Definition: employers' actual social contributions (D121) consist of the payments made by 
employers for the benefit of their employees to insurers (social security funds 
and private funded schemes). These payments cover statutory, conventional, 
contractual and voluntary contributions in respect of insurance against social 
risks or needs (see D6). 
Although paid directly by employers to the insurers, these employers' contributions are 
treated as a component of the compensation of employees, who are then deemed to pay 
them over to the insurers. 
Employers' imputed social contributions (D122) 
4.10. Definition: employers' imputed social contributions (D122) represent the counterpart to 
unfunded social benefits (less eventual employees' social contributions) paid 
directly by employers to their employees or former employees and other 
eligible persons(l) without involving an insurance enterprise or autonomous 
pension fund, and without creating a special fund or segregated reserve for the 
purpose. 
The fact that certain social benefits are paid directly by employers, and not through the 
medium of social security funds or other insurers, in no way detracts from their character 
as social welfare benefits. However, since the costs of these benefits form part of 
employers' labour costs, they should also be included in the compensation of employees. 
4.11. In the accounts of the sectors, the costs of direct social benefits appear first among uses in 
the generation of income account, as a component of the compensation of employees, and a 
second time among uses in the secondary distribution of income account, as social benefits. 
In order to balance the latter account, it is assumed that the households of employees pay 
back to the employers' sectors the employers' imputed social contributions which finance 
together with eventual employees' social contributions the direct social welfare benefits 
provided to them by these same employers. This notional circuit is similar to that for 
employers' actual social contributions, which pass through the accounts of households and 
are then deemed to be paid by them to the insurers. 
For the valuation of employers' imputed social contributions, the amount of which does not 
necessarily coincide with that of direct social benefits, reference should be made to heading 
D612. 
(1) Employers' imputed social contributions include an amount equal in value to the wages and salaries which employers temporarily 
continue to pay in the event of the sickness, maternity, industrial injury, disability, redundancy, etc. of their employees, if that amount 
can be separated 
4.12. Time of recording of compensation of employees: 
- wages and salaries (Dll) are recorded in the period during which the work is done. 
However, ad-hoc bonuses or other exceptional payments, 13th month, etc. are recorded 
when they are due to be paid. 
- employers' actual social contributions (D121) are recorded in the period during which 
the work is done. 
- employers' imputed social contributions (D122): 
* 
* representing the counterpart of compulsory direct social benefits are recorded in 
the period during which the work is done 
representing the counterpart of voluntary direct social benefits are recorded at the 
time these benefits are provided. 
4.13. The compensation of employees may consist of: 
a) the compensation of resident employees by resident employers 
b) the compensation of resident employees by non-resident employers 
c) the compensation of non-resident employees by resident employers. 
These different items are recorded in the ESA as follows: 
- the compensation of resident and non-resident employees by resident employers groups 
together items a) and c) and appears among uses in the generation of income account of 
the sectors and industries to which the employers belong. 
- the compensation of resident employees by resident and non-resident employers groups 
together items a) and b) and appears among resources in the allocation of primary 
income account of households. 
- item b), compensation of resident employees by non-resident employers appears among 
uses in the external account of primary incomes and current transfers. 
- item c), compensation of non-resident employees by resident employers appears among 
resources in the external account of primary incomes and current transfers. 
TAXES ON PRODUCTION AND IMPORTS (D2) 
4.14. Définition: Taxes on production and imports (D2) consist of compulsory, unrequited 
payments, in cash or in kind which are levied by general government, or by the 
Institutions of the European Union, in respect of the production and 
importation of goods and services, the employment of labour, the ownership or 
use of land, buildings or other assets used in production. These taxes are 
payable whether or not profits are made. 
4.15. Taxes on production and imports are divided into: 
- taxes on products (D21 ) 
* value added type taxes (VAT) (D211) 
* taxes and duties on imports excl. VAT (D212) 
- import duties (D2121) 
- taxes on imports excl. VAT and import duties (D2122) 
* taxes on products, except VAT and import taxes (D214) 
- other taxes on production (D29). 
Taxes on products (D21) 
4.16 Definition: Taxes on products (D21) are taxes that are payable per unit of some good or 
service produced or transacted. The tax may be a specific amount of money per 
unit of quantity of a good or service, or it may be calculated ad valorem as a 
specified percentage of the price per unit or value of the goods and services 
produced or transacted. As a general principle, taxes in fact assessed on a 
product, irrespective of which institutional unit pays the tax, are to be included 
in taxes on products, unless specifically included in another heading. 
Value added type taxes (VAT) (D211) 
4.17. Definition: A value added type tax (VAT) is a tax on goods or services collected in stages 
by enterprises and which is ultimately charged in full to the final purchasers. 
This heading value added type taxes (D211) comprises the value added tax which is 
collected by the General government and which is applied to national and imported 
products, as well as, where appropriate, other deductible taxes applied under similar rules 
to those governing VAT, for simplicity henceforth called "VAT". 
It also includes taxes characterized in law as value added taxes but which are not based on 
a product as defined in national accounts (for instance, sale of plots of land)(l) 
Producers are obliged to pay only the difference between the VAT on their sales and the 
VAT on their purchases for their own intermediate consumption or gross fixed capital 
formation. 
( I ) VAT taxes on sales of land arc treated in supply and use tables as taxes on services of estate agents. 
(8) 
VAT is recorded net in the sense that: 
- outputs of goods and services and imports are valued excluding invoiced VAT 
- purchases of goods and services are recorded inclusive of non-deductible VAT. VAT is 
recorded as being borne by purchasers, not sellers, and then only by those purchasers 
who are not able to deduct it. The greater part of VAT is therefore recorded in the 
system as being paid on final uses, mainly on household consumption. A part of VAT 
may, however, be paid by enterprises, mainly by those which are exempted from VAT. 
For the total economy, VAT is equal to the difference between total invoiced VAT and 
total deductible VAT. 
Taxes and duties on imports excluding VAT (D212) 
4.18 Definition: taxes and duties on imports excluding VAT (D212) comprise compulsory 
payments levied by general government or the Institutions of the European 
Union on imported goods, excluding VAT, in order to admit them to free 
circulation on the economic territory, and on services provided to resident units 
by non-resident units. 
These payments include: 
a) Import duties (D2121): these consist of customs duties, or other import charges, payable 
according to customs tariff schedules on goods of a particular type when they enter for 
use in the economic territory of the country of utilization. 
b) Taxes on imports, excluding VAT and import duties (D2122): 
This heading includes: 
- levies on imported agricultural products 
- monetary compensatory amounts levied on imports 
- excise duties and special taxes on certain imported products, provided such duties 
and taxes on similar products of domestic origin are paid by the producer branch 
itself 
- general sales taxes payable on imports of goods and services 
- taxes on specific services provided by non-resident enterprises to resident units 
within the economic territory 
- profits of public enterprises exercising a monopoly over the imports of some good or 
service, which are transferred to the State. 
Net taxes and duties on imports excluding VAT are calculated by deducting import 
subsidies (D311) from taxes and duties on imports excluding VAT (D212). 
Taxes on products, except VAT and import taxes (D214) 
4.19. Definition: taxes on products, except VAT and import taxes (D214) consist of taxes on 
goods and services that become payable as a result of the production, export, 
sale, transfer, leasing or delivery of those goods or services, or as a result of 
their use for own consumption or own capital formation. 
4.20. This heading includes, in particular: 
a) excise duties and consumption taxes (other than those included in taxes and duties on 
imports). 
b) stamp taxes on the sale of specific products, such as alcoholic beverages or tobacco, and 
on legal documents or cheques 
c) taxes on financial and capital transactions, payable on the purchase or sale of non-
financial and financial assets, including foreign exchange. They become payable when 
the ownership of land or other assets changes, except as a result of capital transfers 
(mainly inheritances and gifts). They are treated as taxes on the services of 
intermediaries. 
d) car registration taxes 
e) taxes on entertainment 
f) taxes on lotteries, gambling and betting, other than those on winnings 
g) taxes on insurance premiums 
h) other taxes on specific services: hotels or lodging, housing services, restaurants, 
transportation, communication, advertising 
i) general sales or turnover taxes (excluding VAT type taxes): these include 
manufacturers' wholesale and retail sales taxes, purchase taxes, turnover taxes 
j) profits of fiscal monopolies which are transferred to the State, except those exercising a 
monopoly over the imports of some good or services (included in D2122). Fiscal 
monopolies are public enterprises which 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. 
When a public enterprise is granted monopoly powers as a matter of deliberate 
economic or social policy because of the special nature of the good or service or the 
technology of production -for example, public utilities, post offices and 
telecommunications, railways and so on- it should not be treated as a fiscal monopoly. 
As a general rule, fiscal monopolies are typically engaged in the production of goods or 
services which may be heavily taxed in other countries; they tend to be confined to the 
production of certain consumer goods (alcoholic beverages, tobacco, matches, etc.) or 
fuels . 
k) export duties and monetary compensatory amounts collected on exports. 
4.21. Net taxes on products are obtained by deducting subsidies on products (D31) from taxes on 
products (D21). 
Other taxes on production (D29) 
4.22. Definition: Other taxes on production (D 29) consist of all taxes that enterprises incur as a 
result of engaging in production, independently of the quantity or value of the 
goods and services produced or sold. 
They may be payable on the land, fixed assets or labour employed in the production 
process or on certain activities or transactions. 
4.23. Other taxes on production (D29) include in particular: 
a) taxes on the ownership or use of land, buildings, or other structures utilized in 
production 
b) taxes on the use of fixed assets (vehicles, machinery, equipment) for purposes of 
production, whether such assets are owned or rented 
c) taxes on the total wage bill and payroll taxes 
d) taxes on international transactions (travel abroad, foreign remittances, or similar 
transactions with non-residents) for purposes of production 
e) taxes paid by enterprises in order to obtain business and professional licences if those 
licences are being granted automatically on payment of the amounts due. However, if 
the government carries out checks on the suitability or safety of the business premises, 
on the reliability or safety of the equipment employed, on the professional competence 
of the staff employed, or on the quality or standard of goods or services produced as a 
condition for granting such a licence, the payments are treated as purchases of services 
rendered, unless the amounts charged for the licences are out of all proportion to the 
costs of the checks carried out by the government 
f) taxes on pollution resulting from production activities. These consist of taxes levied on 
the emission or discharge into the environment of noxious gases, liquids or other 
harmful substances. They do not include payments made for the collection and disposal 
of waste or noxious substances by public authorities, which constitute intermediate 
consumption of enterprises. 
g) under-compensation of VAT resulting from the flat rate system, frequently found in 
agriculture. 
4.24. This heading excludes taxes on the personal use of vehicles etc. by households, which are 
recorded under current taxes on income, wealth, etc. 
Taxes on production and imports paid to the Institutions of the European Union 
4.25. The taxes on production and imports paid to the Institutions of the European Union 
include, in particular: 
a) taxes paid directly by resident producer units to the Institutions of the European Union 
(the ECSC levy on mining and iron and steel producing enterprises) 
b) taxes collected by national governments on behalf of the Institutions of the European 
Union, namely: 
-116 
receipts from the common agricultural policy: 
levies on imported agricultural products, monetary compensatory amounts levied 
on exports and imports, sugar production levies and the tax on isoglucose, co-
responsibility taxes on milk and cereals 
receipts from trade with third countries: customs duties levied on the basis of the 
Integrated Tariff of the European Union (TARIC) 
receipts from VAT in each Member State. 
4.26. Recording of taxes on production and imports: taxes on production and imports are 
recorded when the activities, transactions or other events occur which create the liabilities 
to pay taxes. 
4.27. However, some economic activities, transactions or events, which under tax legislation 
ought to impose on the units concerned the obligation to pay taxes, permanently escape the 
attention of the tax authorities. It would be unrealistic to assume that such activities, 
transactions or events give rise to financial assets or liabilities in the form of payables or 
receivables. For this reason, the amounts to be recorded in the System are determined by 
the amounts due for payment only when evidenced by tax assessments, declarations or 
other instruments which create liabilities in the form of clear obligations to pay on the part 
of taxpayers. The system does not impute missing taxes not evidenced by tax assessments. 
For taxes evidenced by tax assessments but which are never paid (for instance, because of 
bankruptcy) are treated as if they had been paid; there are two eventualities: 
- the writing-off of bad debt by the government, which recognizes that its claim can no 
longer be collected ; this writing off is recorded in the other changes in the volume of 
assets accounts of the government and the defaulting debtor 
- the cancellation of the debt by mutual agreement between the government and the 
debtor. This cancellation is treated as a capital transfer from the government to the 
debtor in the capital account, with a simultaneous extinction of a claim in the financial 
account. 
4.28. The total value of the taxes which should be recorded includes any interest charged on 
arrears of taxes due and any fines imposed by taxation authorities if it is impossible to 
record such interest and fines separately from taxes; it also includes any charges which 
may be imposed in connection with the collection or recovery of taxes outstanding. 
Correspondingly, it is reduced by the amount of any tax rebates made by general 
government as a matter of economic policy and any tax refunds made as a result of over­
payments. 
4.29. In the system of accounts, taxes on production and imports (D2) appear: 
- among uses in the generation of income account of the total economy 
- among resources in the allocation of primary income account of the general government 
sector and in the external account of primary incomes and current transfers. 
17-
Taxes on products are recorded as resources in the goods and services account of the total 
economy. This enables the resources of goods and services - valued exclusive of taxes on 
products - to be balanced with the uses, which are valued inclusive of these taxes. 
Other taxes on production (D29) appear among uses in the generation of income accounts 
of the industries or sectors which pay them. 
SUBSIDIES (D3) 
4.30. Definition: Subsidies (D3) are current unrequited payments which general government or 
the Institutions of the European Union make as a matter of economic or social 
policy to resident(l) market producers and to other resident producers for their 
market output, with the objective of influencing their levels of production, their 
prices and/or making it possible for factors of production to receive an 
adequate remuneration. 
4.31. Subsidies granted by the Institutions of the European Union cover only current transfers 
made directly by them to resident producer units. 
4.32. As the producer units classified in the market branches may belong to different institutional 
sectors, subsidies may go to any sector, provided that they are granted in respect of some 
productive activity for the market. 
Subsidies are classified into: 
- subsidies on products (D31 ) 
* import subsidies (D311) 
* other subsidies on products (D319) 
- other subsidies on production (D39). 
Subsidies on products (D31) 
4.33. Definition: Subsidies on products (D 31) are subsidies payable per unit of a good or service 
produced or imported. The subsidy may be a specific amount of money per unit 
of quantity of a good or service, or it may be calculated ad valorem as a 
specified percentage of the price per unit. A subsidy may also be calculated as 
the difference between a specified target price and the market price actually 
paid by a buyer. A subsidy on a product usually becomes payable when the 
good is produced, sold or imported. 
Import subsidies (D311) 
4.34. Definition: Import subsidies (D 311) consist of subsidies on goods and services that 
become payable when the goods cross the frontier for use in the economic 
territory or when the services are delivered to resident institutional units. They 
may include losses incurred as a matter of deliberate government policy by 
government trading organisations whose function is to purchase products from 
non-residents and then sell them at lower prices to residents. 
(1) Subsidies are granted by the Institutions of the European Union to units resident anywhere in the Community. 
IX 
Other subsidies on products (D319) 
4.35. Other subsidies on products (D 319) include: 
a) subsidies on products used domestically: these consist of subsidies payable to resident 
producers in respect of their outputs which are used or consumed within the economic 
territory. 
b) losses of government trading organisations whose function is to buy and sell the 
products of resident producers, when they are incurred as a matter of deliberate 
government economic or social policy. 
c) subsidies to public corporations and quasi-corporations to compensate for persistent 
losses which they incur on their productive activities as a result of charging prices 
which are lower than their average costs of production as a matter of deliberate 
government economic and social policy. 
d) direct subsidies on exports payable directly to resident producers when the goods leave 
the economic territory or the services are provided to non-residents - except repayments 
at the customs frontier of taxes on products previously paid and waivings of the taxes 
that would be due if the goods were to be sold or used inside the economic territory. 
e) losses of government trading organisations whose function is to buy the products of 
resident enterprises and then sell them at lower prices to non-residents. 
Other subsidies on production (D39) 
4.36. Definition: Other subsidies on production (D39) received by resident producer units as a 
consequence of engaging in production are subsidies not linked to the quantity 
or value of the goods and services produced or sold. 
4.37 This heading includes in particular: 
a) subsidies on payroll or work force: these consist of subsidies payable on the total wage 
or salary bill, or total work force, or on the employment of particular types of persons 
such as physically handicapped persons or persons who have been unemployed for long 
periods, or on the costs of training schemes organised or financed by enterprises. 
b) subsidies to reduce pollution: these consist of current subsidies intended to cover some 
or all of the costs of additional processing undertaken to reduce or eliminate the 
discharge of pollutants into the environment. 
c) grants for interest relief made to resident, producer units, even when they are intended to 
encourage capital formation(l). In effect, these are current transfers designed to lighten 
producers' operating costs. They are treated in the accounts as subsidies to the producers 
benefiting from them, even when the difference in the interest is, in practice, paid 
directly by the government to the credit institution making the loan. 
d) over-compensation of VAT resulting from the flat rate system, frequently found in 
agriculture. 
4.38. The following are not treated as subsidies: 
(1) However, when a grant serves the dual purpose of financing both the amortization of the debt and the payment of interest on it, and 
when it is not possible to apportion it between the two elements, the whole of the grant is treated as an investment grant. 
-II')-
a) current transfers from general government to households in their capacity as consumers. 
These are treated either as social benefits or as miscellaneous current transfers. 
b) current transfers between different parts of general government in their capacity as 
producers of non-market goods and services. These are shown under the heading current 
transfers within general government (D73). 
c) current transfers to non-profit institutions in their capacity as producers of non-market 
goods and services. These are shown under the heading current transfers to non-profit 
institutions (D75) 
d) investment grants (D92) 
e) extraordinary payments into social insurance funds, in so far as these payments are 
designed to increase the actuarial reserves of these funds. Such payments are shown 
under the heading other capital transfers (D99) 
f) transfers made by general government to non-financial corporations and quasi-
corporations to cover losses accumulated over several financial years, or exceptional 
losses due to factors outside the control of the enterprise, are classified under the 
heading other capital transfers (D99) 
g) the cancellation of debts which producer units have incurred towards the government 
(resulting, for example, from loans advanced by a government agency to a non-financial 
enterprise which has accumulated trading losses over several financial years). These 
transactions are treated in the accounts as other capital transfers (D99) 
h) payments made by general government or by the rest of the world for damage to, or 
losses of, capital goods as a result of acts of war, other political events or national 
disasters are shown under the heading other capital transfers (D99) 
i) shares and other equities in corporate enterprises purchased by general government, 
which are shown under the heading shares and other equities 
j) payments made by a general government agency which has assumed responsibility for 
abnormal pension charges affecting a public enterprise. These payments must be 
recorded under miscellaneous current transfers (D75). 
4.39. Time of recording: subsidies are recorded when the transaction or the event (production, 
sale, import, etc .) which gives rise to the subsidy occurs. 
Particular cases: 
- subsidies which take the form of the difference between the purchase price and the 
selling price charged by a government trading agency are recorded at the time the goods 
are bought by the agency, if the selling price is known at that time 
- subsidies intended to cover a loss incurred by a producer unit in a market branch are 
recorded at the time the general government agency decides to cover the loss. 
120 
4.40. In the system of accounts, subsidies appear: 
- among negative uses in the generation of income account of the total economy 
- among negative resources in the allocation of primary income account of the general 
government sector and in the external account of primary incomes and current transfers. 
Subsidies on products are recorded as negative resources in the goods and services account 
of the total economy. This enables the resources of goods and services to be balanced with 
the uses. 
Other subsidies on production (D39) appear among negative uses in the generation of 
income accounts of the industries or sectors which receive them. 
Consequences of a system of multiple exchange rates on taxes on production and imports and on subsidies: 
multiple exchange rates are not currently applicable among the Member States of the EU. In such a system: 
implicit taxes on imports are treated as taxes on imports, excluding VAT and duties (D2122) 
implicit taxes on exports are treated as taxes on products, except VAT and import taxes (D214) 
- implicit subsidies on imports are treated as import subsidies (D311) 
- implicit subsidies on exports are treated as other subsidies on products (D319). 
PROPERTY INCOME (D4) 
4.41. Definition: Property income (D4) is the income receivable by the owner of a financial asset 
or a tangible non-produced asset in return for providing funds to, or putting the 
tangible non-produced asset at the disposal of, another institutional unit. 
Property incomes are classified in the following way in the System: 
- interest (D41) 
- distributed income of corporations (D42) 
- dividends (D421) 
- withdrawals from income of quasi-corporations (D422) 
- reinvested earnings on direct foreign investment (D43) 
- property income attributed to insurance policy holders (D44) 
- rents on land and sub-soil assets' (D45). 
121 -
Interest (D41) 
4.42. Definition: Under the terms of the financial instrument agreed between them, interest (D 
41) is the amount that the debtor becomes liable to pay to the creditor over a 
given period of time without reducing the amount of principal outstanding. 
4.43. Creditors lend funds to debtors that lead to creation of one or other of the financial 
instruments listed below. 
This form of property income is receivable by the owners of certain kinds of financial 
assets: 
Deposits (AF2) 
Securities other than shares (AF3) 
Loans (AF4) 
Other accounts receivable (AF7). 
1) Interest on deposits, loans and accounts receivable and payable: 
4.44. The interest receivable and payable on these financial assets and liabilities is determined by 
applying the relevant rate of interest to the principal outstanding at each point of time 
throughout the accounting period. 
2) Interest on securities 
a) interest on bills and similar short-term instruments: 
4.45. The difference between the face value and the price paid at the time of issue (i.e. the 
discount) measures the interest payable over the life of the bill. The increase in the value of 
a bill due to the accumulation of accrued interest does not constitute a holding gain because 
it is due to an increase in the principal outstanding and not a change in the price of the 
asset. Other changes in the value of the bill are treated as holding gains/losses. 
b) interest on bonds and debentures 
4.46. Bond and debentures are long-term securities that give the holder the unconditional right 
to: a fixed or contractually determined variable money income in the form of coupon 
payments, or a stated fixed sum on a specified date or dates when the security is redeemed, 
or both these two terms. 
* zero-coupon bonds: 
There are no coupon payments. The interest based on the difference between the 
redemption price and the issue price has to be distributed over the years to the maturity of 
the bond. The interest accruing each year is reinvested in the bond by its holder, thus 
counterpart entries equal to the value of the accrued interest must be recorded in the 
Financial Account as the acquisition of more bond by the holder and as a further issue of 
more bond by the issuer or debtor (i.e. as a growth in the "volume" of the original bond). 
* other bonds, including deep-discounted bonds: 
The interest has two components: 
- the amount of the money income receivable from coupon payments each period 
- the amount of interest accruing each period attributable to the difference between the 
redemption price and the issue price, calculated in the same way as for zero-coupon 
bonds. 
* index-linked securities: 
The amounts of the coupon payments and/or the principal outstanding are linked to a price 
index. The change in the value of the principal outstanding between the beginning and the 
end of a particular accounting period due to the movement in the relevant index is treated 
as interest accruing in that period, in addition to any interest due for payment in that 
period. The interest accruing as a result of the indexation is effectively reinvested in the 
security and must be recorded in the financial accounts of the holder and issuer. 
3) Interest rate swaps and forward rate agreements: 
4.47. Swaps are contractual arrangements between two institutional units who agree to exchange 
streams of payables on the same amount of indebtedness over time. Common varieties of 
swaps are interest rate swaps and currency swaps. 
The streams of interest payments resulting from swap arrangements should be recorded net 
of the payments between the two parties to the swap ; any payments to third parties, such 
as specialised brokers, for arranging the swaps are recorded as purchases of services. 
The same principle is applied to transactions under forward rate agreements. 
4) Interest on financial leases: 
4.48. A financial lease is an alternative to lending as a method of financing the purchase of 
machinery and equipment. It is a contract which channels funds from a lender to a 
borrower: the lessor purchases the equipment and the lessee contracts to pay rentals which 
enable the lessor, over the period of the contract, to recover all, or virtually all, of his costs 
including interest. 
The lessor is treated as making a loan to the lessee equal to the value of the purchaser's 
price paid for the asset, this loan being gradually paid off in full over the period of the 
lease. The rental paid each period by the lessee is therefore treated as having two 
components: a repayment of principal and a payment of interest. The rate of interest on the 
imputed loan is implicitly determined by the total amount paid in rentals over the life of the 
lease in relationship to the purchaser's price of the asset. The share of the rental that 
represents interest gradually declines over the life of the lease as the principal is repaid. 
The initial loan by the lessee, together with the subsequent repayments of principal, are 
recorded in the Financial Accounts of the lessor and lessee. The interest payments are 
recorded under interest in their respective Primary Distribution of Income Accounts. 
4.49. 5) The following are also treated as interest: 
a) interest charged on bank overdrafts, extra interest paid on deposits left longer than 
originally agreed, and payments to certain bond holders which are determined by lottery 
b) interest received by unit trusts, net of a part of management costs, from the investments 
they have made, and which is assigned to shareholders, even if it is capitalized. It 
excludes holding gains or losses on financial instruments belonging to unit trusts, which 
are not recorded as property income. The part of management costs which is deducted is 
proportional to the share of interest in the total interest plus dividends. 
4.50. Time of recording: 
Interest is recorded on an accrual basis: that is, interest is recorded as accruing 
continuously over time to the creditor on the amount of principal outstanding. The interest 
accruing in each accounting period must be recorded whether or not it is actually paid or 
added to the principal outstanding. When it is not actually paid, the increase in the 
principal must also be recorded in the Financial Account as a further acquisition of that 
kind of financial asset by the creditor and an equal acquisition of a liability by the debtor. 
4.51. Interest is to be recorded before the deduction of any taxes levied on it. Interest received 
and paid is always recorded inclusive of grants for interest relief, even if those grants are 
directly paid to financial institutions and not to the beneficiaries (see subsidies). 
The value of the services provided by financial intemediaries not being allocated among 
different customers, the actual payments or receipts of interest to or from financial 
intermediaries are not adjusted to eliminate the margins that represent the implicit charges 
made by financial intermediaries. An adjustment item is needed in the allocation of 
primary income account of financial intermediaries and of a nominal industry to which, by 
convention, the whole output of financial intermediaries is allocated as intermediate 
consumption. 
4.52. In the system of accounts, interest is shown: 
- among resources and among uses in the allocation of primary income account of the 
sectors(l) 
- among resources and among uses in the external account of primary incomes and 
current transfers. 
(1) This practice differs from that of most business accounting, where interest paid is normally shown as a fixed charge similar to other 
costs of production in the operating account. 
Distributed income of corporations (D42) 
Dividends (D421) 
4.53. Definition: Dividends (D 421) are a form of property income received by owners of shares 
(AF5) to which they become entitled as a result of placing funds at the disposal 
of corporations. Raising equity capital through the issue of shares is an 
alternative way of raising funds to borrowing. In contrast to loan capital, 
however, equity capital does not give rise to a liability that is fixed in monetary 
terms and it does not entitle the holders of shares of a corporation to a fixed or 
predetermined income. 
4.54. This heading also includes: 
a) shares issued to shareholders in payment of the dividend for the financial year. 
However, issues of bonus shares which represent the capitalisation of own funds in the 
form of reserves and undistributed profits and give rise to new shares to shareholders in 
proportion for their holdings are not included. 
b) dividends received by unit trusts, net of a part of management costs, from the 
investments they have made, and which are assigned to shareholders, even if they are 
capitalized. It excludes holding gains or losses on financial instruments belonging to 
unit trusts, which are not recorded as property income. The part of management costs 
which is deducted is proportional to the share of dividends in the total interest plus 
dividends. 
c) the income paid to general government by public enterprises which are recognized as 
independent legal entities though not formally constituted as corporate enterprises. 
4.55. Time of recording: Dividends are recorded at the time they are due to be paid as 
determined by the corporation. 
In the system of accounts, dividends appear: 
- among uses in the allocation of primary income account of the sectors in which the 
corporations are classified 
- among resources in the allocation of primary income account of the sectors in which 
shareholders are classified 
- among uses and resources in the external account of primary incomes and current 
transfers. 
Withdrawals from the income of quasi-corporations (D422) 
4.56. Definition: Withdrawals from the income of quasi-corporations (D422) consist of the 
amounts which entrepreneurs actually withdraw for their own use from the 
profits earned by the quasi-corporations which belong to them. 
4.57. These amounts are to be recorded before the deduction of any current taxes on income, 
wealth, etc. which are deemed always to be paid by the owners of the businesses. 
4.58. When a quasi-corporation makes a trading profit, the unit which owns it may choose to 
leave part or all of the profit in the business, especially for investment purposes. This 
income left in the business appears as saving by the quasi-corporation, and only the profits 
actually withdrawn by the owner units are recorded in the accounts under the heading 
withdrawals from the income of quasi-corporations. 
4.59. When profits are earned in the rest of the world by the branch-offices, agencies, etc. of 
resident enterprises, in so far as these branch-offices etc. are treated as non-resident units, 
retained earnings appear as reinvested earnings on direct foreign investment (D43). Only 
the income actually transferred to the parent enterprise is treated in the accounts as 
withdrawals from the income of quasi-corporations received from the rest of the world. 
The same principles are applied to deal with the relations between branch-offices, agencies, 
etc. operating on the economic territory and the non-resident parent enterprise to which 
they belong. 
4.60. This heading includes the net operating surplus received by residents as owners of land and 
buildings in the rest of the world, or by non-residents as owners of land or buildings on the 
economic territory. In effect, in respect of all transactions in land and buildings carried out 
on the economic territory of a country by non-resident units, the latter are considered, in 
accordance with the conventions adopted in the ESA, to be notional resident units in which 
the non-resident owners own the equity. 
The rental value of owner-occupied dwellings abroad is registered as imports of services 
and the corresponding net operating surplus as primary income received from the rest of 
the world; the rental value of owner-occupied dwellings belonging to non-residents is 
registered as exports of services and the corresponding net operating surplus as primary 
income paid to the rest of the world. 
4.61. The heading withdrawals from the income of quasi-corporations does not include amounts 
which their owners receive: 
- from the sale of existing fixed capital goods 
- from the sale of land and intangible assets 
- from withdrawals of capital (e.g. the total or partial liquidation of their equity in the 
quasi-corporation). 
These amounts are treated as withdrawals from equity in the financial account. Conversely, 
any funds provided by the owner(s) of a quasi-corporation for the purpose of acquiring 
assets or reducing its liabilities is treated as additions to its equity. However, if the quasi-
corporation is owned by government, and if it runs a persistent operating deficit as a matter 
of deliberate government economic and social policy, any regular transfers of funds into 
the enterprise made by government to cover its losses should be treated as subsidies. 
4.62. Time of recording: withdrawals from the income of quasi-corporations are recorded when 
they are made by the owners. 
4.63. In the system of accounts, withdrawals from the income of quasi-corporations appear: 
- among uses in the allocation of primary income account of the sectors in which the 
quasi-corporations are classified 
- among resources in the allocation of primary income account of the owner sectors 
- among uses and resources in the external account of primary incomes and current 
transfers. 
I2f. 
Reinvested earnings on direct foreign investment (D43) 
4.64. Definition: 
Reinvested earnings on direct foreign investment (D43) are equal to: 
the operating surplus of the direct foreign investment enterprise 
+ any property incomes or current transfers receivable 
- any property incomes or current transfers payable, including actual remittances to 
foreign direct investors and any current taxes payable on the income, wealth, etc., of the 
direct foreign investment enterprise. 
4.65. A direct foreign investment enterprise is an incorporated or unincorporated enterprise in 
which an investor resident in another economy owns 10 per cent or more of the ordinary 
shares or voting power (for an incorporated enterprise) or the equivalent (for an 
unincorporated enterprise). Direct foreign investment enterprises comprise those entities 
that are identified as subsidiaries (investor owns more than 50 per cent), associates 
(investor owns 50 per cent or less) and branches (wholly or jointly owned unincorporated 
enterprises), either directly or indirectly owned by the investor. Consequently, "direct 
foreign investment enterprises" is a broader concept than "foreign controlled corporations". 
4.66. Actual distributions may be made out of the entrepreneurial income of direct foreign 
investment enterprises in the form of dividends or withdrawals of income from quasi-
corporations. 
In addition, retained earnings are treated as if they were distributed and remitted to foreign 
direct investors in proportion to their ownership of the equity of the enterprise and then 
reinvested by them. 
Reinvested earnings on direct foreign investment can be either positive or negative. 
4.67. Time of recording: reinvested earnings on direct foreign investment are recorded when 
they are earned. 
In the system of accounts, reinvested earnings on direct foreign investment appear: 
- among uses and resources in the allocation of primary income account of the sectors 
- among uses and resources in the external account of primary incomes and current 
transfers. 
Property income attributed to insurance policy holders (D44) 
4.68. Definition: Property income attributed to insurance policy holders corresponds to total 
primary incomes received from the investment of insurance technical reserves. 
Insurance technical reserves are invested by insurance enterprises and 
autonomous pension funds in financial assets or land (from which net property 
income, i.e. after deducting any interest paid, are received) or in buildings 
(which generate net operating surpluses). Any net income received that results 
from the investment of insurance enterprises' own funds is to be excluded in 
proportion to the ratio between own funds and a sum of own funds and 
insurance technical reserves. 
- 127 -
4.69. Since technical reserves are assets of insurance policy holders, the receipts from investing 
them are shown in the accounts as being paid by insurance enterprises and autonomous 
pension funds to the policy holders in the form of property income attributed to insurance 
policy holders. 
As this income is retained by insurance enterprises and autonomous pension funds in 
practice, it is therefore treated as being paid back to the insurance enterprises and 
autonomous pension funds in the form of premium and contribution supplements that are 
additional to actual premiums and contributions payable. 
These premium and contribution supplements on non-life insurance policies and on life 
insurance policies taken out under social insurance schemes are recorded together with the 
actual premiums and contributions in the secondary distribution of income accounts of the 
units concerned. 
The premium supplements on individual life insurance not taken out under social insurance 
schemes, like the actual premiums, are not current transfers and are therefore not recorded 
in the secondary distribution of income accounts. They are directly included as one of the 
elements contributing to the change in the "net equity of households on life insurance 
reserves and pension funds reserves" recorded in the financial accounts of the units 
concerned. 
4.70. Time of recording: property income attributed to insurance policy holders is recorded when 
it accrues. 
4.71. In the system of accounts, the property income attributed to insurance policy holders 
appears: 
- among resources in the allocation of primary income account of policy holders 
- among uses in the allocation of primary income account of the insurers 
- among resources and among uses in the external account of primary incomes and 
current transfers. 
Rents (D45) 
1) Rents on land: 
4.72. The rent received by a landowner from a tenant constitutes a form of property income. 
This heading also includes the rents payable to the owners of inland waters and rivers for 
the right to exploit such waters for recreational or other purposes, including fishing. 
A landowner may be liable to pay land taxes or incur certain maintenance expenses solely 
as a consequence of owning the land. By convention, such taxes and expenses are treated 
as payable by the person entitled to use the land, who is deemed to deduct them from the 
rent that he would otherwise be obliged to pay to the landowner. 
4.73. Rents on land do not include the rentals of buildings and of dwellings situated on it ; those 
rentals are treated as the payment for a market service provided by the owner to the tenant 
of the building or dwelling, and are shown in the accounts as the intermediate or final 
consumption of the tenant unit. If there is no objective basis on which to split the payment 
between rent on land and rental on the buildings situated on it, the whole amount is treated 
as rent when the value of the land is believed to exceed the value of the buildings on it and 
as rental otherwise. 
2X 
2) Rents on sub-soil assets: 
4.74 This heading includes the royalties that accrue to owners of deposits of minerals or fossil 
fuels (coal, oil or natural gas) who grant leases to other institutional units permitting them 
to explore or to extract such deposits over a specified period of time. 
4.75. Time of recording of rents. 
Rents are recorded in the period when payable. 
4.76. In the system of accounts, rents are recorded: 
- among resources and among uses in the allocation of primary income account of sectors 
- among resources and among uses in the external account of primary incomes and 
current transfers. 
CURRENT TAXES ON INCOME, WEALTH, ETC. (D5) 
4.77. Définition: current taxes on income, wealth, etc (D5) cover all compulsory, umequited 
payments, in cash or in kind, levied periodically by general government and by 
the rest of the world on the income and wealth of institutional units, and some 
periodic taxes which are assessed neither on the income nor the wealth 
Current taxes on income, wealth, etc. are divided into: 
- taxes on income (D51 ) 
- other current taxes (D59). 
Taxes on income (D51) 
4.78. Definition: taxes on income (D51) consist of taxes on incomes, profits and capital gains. 
They are assessed on the actual or presumed incomes of individuals, 
households, corporations or NPIs. They include taxes assessed on holdings of 
property, land or real estate when these holdings are used as a basis for 
estimating the income of their owners. 
Taxes on income include: 
a) taxes on individual or household income (income from employment, property, 
entrepreneurship, pensions, etc.), including taxes deducted by employers (pay-as-you-
earn taxes). Taxes on the income of owners of unincorporated enterprises are included 
here 
b) taxes on the income or profits of corporations 
c) taxes on holding gains 
d) taxes on winnings from lottery or gambling, payable on the amounts received by 
winners as distinct from taxes on the turnover of producers that organize gambling or 
lotteries which are treated as taxes on products. 
129 
(9) 
Other current taxes (D59) 
4.79. Other current taxes (D59) include: 
a) current taxes on capital which consist of taxes that are payable periodically on the 
ownership or use of land or buildings by owners, and current taxes on net wealth and on 
other assets (jewellery, other external signs of wealth) -except taxes mentioned in D29 
(which are paid by enterprises as a result of engaging in production) and those 
mentioned in D51 (taxes on income) 
b) poll taxes, levied per adult or per household, independently of income or wealth 
c) expenditure taxes, payable on the total expenditures of persons or households 
d) payments by households for licences to own or use vehicles, boats or aircraft (which are 
not used for business purposes), or for licences to hunt, shoot or fish, etc(l) 
e) taxes on international transactions (travel abroad, foreign remittances, foreign 
investments, etc.), except those payable by producers and import duties paid by 
households. 
4.80. Current taxes on income, wealth, etc do not include: 
a) inheritance taxes, death duties or taxes on gifts inter-vivos, which are deemed to be 
levied on the capital of the beneficiaries and are shown under the heading capital taxes 
(D91) 
b) occasional or exceptional levies on capital or wealth, which are shown under the 
heading capital taxes (D91) 
c) taxes on land, buildings or other assets owned or rented by enterprises and used by them 
for production, such taxes being treated as other taxes on production (D29) 
d) payments by households for licences other than licences on the use of vehicles, boats or 
aircraft, or licences to hunt, shoot or fish: driving or pilot's licences, television or radio 
licences, firearm licences, museum or library admissions, garbage disposal fees, etc. 
which are treated in most cases as purchases of services rendered by government (1). 
4.81. The total value of the taxes which should be recorded includes any interest charged on 
arrears of taxes due and any fines imposed by taxation authorities if it is impossible to 
record such interest and fines separately; it also includes any charges which may be 
imposed in connection with the recovery and assessment of taxes outstanding. 
Correspondingly, it is reduced by the amount of any rebates made by general government 
as a matter of economic policy and any refunds made as a result of over-payments. 
(1) The borderline between taxes and purchases of services from goverment is defined according to the same criteria as those used in the 
case of payments made by enterprises : if the licences are being granted automatically on payment of the amounts due, their payment 
is treated as taxes. But if the goverment uses the issue of licences to organize some proper regulatory function (such as checking the 
competence, or qualifications, of the person concerned), the payments made should be treated as purchases of services from goverment 
rather than payments of taxes, unless the payments are clearly out of all proportion to the cost of providing the services. 
- 130 
4.82. Recording of current taxes on income, wealth, etc.: 
current taxes on income, wealth, etc. are recorded at the time when activities, transactions 
or other events occur which create the liabilities to pay. 
However, some economic activities, transactions or events, which under tax legislation 
ought to impose on the units concerned the obligation to pay taxes, permanently escape the 
attention of the tax authorities. It would be unrealistic to assume that such activities, 
transactions or events give rise to financial assets or liabilities in the form of payables or 
receivables. For this reason, the amounts to be recorded in the System are determined by 
the amounts due for payment only when evidenced by tax assessments, declarations or 
other instruments which create liabilities in the form of clear obligations to pay on the part 
of taxpayers. The system does not-impute missing taxes not evidenced by tax assessments. 
Taxes evidenced by tax assessments but which are never paid (for instance, because of 
bankruptcy) are treated as if they had been paid ; there are two eventualities: 
- the writing-off of bad debt by the government, which recognizes that its claim can no 
longer be collected ; this writing-off is recorded in the other changes in the volume of 
assets accounts of the government and the defaulting debtor 
- the cancellation of the debt by mutual agreement between the government and the 
debtor. This cancellation is treated as a capital transfer from the government to the 
debtor in the capital account, with a simultaneous extinction of a claim in the financial 
account. 
In some cases, the liability to pay income taxes can only be determined in a later 
accounting period than that in which the income accrues. Some flexibility is therefore 
needed in the time at which such taxes are recorded. Income taxes deducted at source, such 
as PAYE taxes and regular prepayments of income taxes, may be recorded in the periods in 
which they are paid and any final tax liability on income can be recorded in the period in 
which the liability is determined. 
In the system of accounts, current taxes on income, wealth, etc. are recorded: 
- among uses in the secondary distribution of income account of the sectors in which the 
taxpayers are classified 
- among resources in the secondary distribution of income account of general government 
- among uses and resources in the external account of primary incomes and current 
transfers. 
SOCIAL CONTRIBUTIONS AND BENEFITS (D6) 
Definitions: 
4.83. Social benefits are transfers to households, in cash or in kind, intended to relieve them 
from the financial burden of a number of risks or needs, made through collectively 
organized schemes, or outside such schemes by government units and NPIs. 
4.84. The list of risks or needs which may give rise to social benefits is, by convention, fixed as 
follows: 
a) sickness 
b) invalidity, disability 
c) occupational accident or disease 
d) old age 
e) survivors 
f) maternity 
g) family 
h) promotion of employment 
i) unemployment 
j) housing(l) 
k) education 
1) general neediness. 
4.85. Social benefits include: 
a) current and lump-sum transfers from schemes which receive contributions, cover the 
entire community or large sections of the community and are imposed and controlled by 
government units (social security schemes) 
b) current and lump sum transfers from schemes organized by enterprises on behalf of their 
employees, ex-employees or dependants (private funded and unfunded enterprises' 
schemes). Contributions may be made by employees or employers ; they may also be 
made by self-employed persons 
c) current transfers from government units and NPISHs which are not conditional on 
previous payment of contributions (assistance) 
(1) In the case of housing, payments made by public authorities to tenants in order to reduce their rents are social benefits, with the 
exception of special benefits paid by public authorities in their capacity as employers. 
132 
4.86. Social benefits exclude: 
a) insurance claims based on policies taken out solely on the own initiative of the insured, 
independently of his employer or government 
b) insurance claims on policies taken out with the sole purpose of obtaining a discount, 
even if those policies follow from a collective agreement. 
4.87. In order for an individual policy to be treated as part of a social insurance scheme, the 
eventualities or circumstances against which the participants are insured must correspond 
to the risks or needs listed in 4.84 above, and in addition, one or more of the following 
conditions must be satisfied: 
a) participation in the scheme is obligatory either by law for a specified category of 
worker, whether employees, self or non-employed, or under the terms and conditions of 
employment of an employee, or group of employees, 
b) the scheme is a collective one operated for the benefit of a designated group of workers, 
whether employees, self or non-employed, participation being restricted to members of 
that group, 
c) an employer makes a contribution (actual or imputed) to the scheme on behalf of an 
employee, whether or not the employee also makes a contribution. 
4.88. Social insurance schemes are schemes in which workers are obliged, or encouraged, by 
their employers or by general government to take out insurance against certain 
eventualities or circumstances that may adversely affect their welfare or that of their 
dependants. 
Social insurance schemes may be classified according to the following types: 
a) social security schemes, covering the entire community, or large sections of the 
community, that are imposed, controlled and financed by government units 
b) private funded schemes, which consist of: 
schemes in which the social contributions are paid to third parties (insurance 
enterprises, autonomous pension funds) 
schemes in which employers maintain special reserves which are segregated from 
their other reserves, even though such schemes do not constitute separate 
institutional units from the employers. These are referred to as non-autonomous 
pension funds. The reserves are treated as assets that belong to the beneficiaries 
and not the employers. 
c) unfunded schemes in which employers pay social benefits to their employees, ex-
employees or their dependants out of their own resources without creating special 
reserves for the purpose. 
4.89. Social insurance schemes organised by government units for their own employees, as 
opposed to the working population at large, are classified as private funded schemes or 
unfunded schemes as appropriate and are not classified as social security schemes. 
4.90. Social contributions may be divided into actual contributions payable under the first two 
categories of schemes mentioned in 4.88 above and imputed contributions payable under 
unfunded schemes. 
4.91. Social contributions may be divided into those that are compulsory by law and those that 
are not. 
Social contributions (D61) 
Actual social contributions (D 611) 
4.92. Actual social contributions include: 
a) employers' actual social contributions (D6111). These correspond to flow D121. 
Employers' actual social contributions are paid by employers to social security funds, 
insurance enterprises or autonomous as well as non autonomous pension funds 
administering social insurance schemes to secure social benefits for their employees. 
As employers' actual social contributions are made for the benefit of their employees, 
their value is recorded as one of the components of compensation of employees together 
with wages and salaries in cash and in kind. The social contributions are then recorded 
as being paid by the employees as current transfers to the social security funds, 
insurance enterprises or autonomous as well as non autonomous pension funds. 
b) employees' social contributions (D 6112): 
These are social contributions payable by employees to social security, private funded 
and unfunded schemes. Employees' social contributions consist of the actual 
contributions payable plus, in the case of private funded schemes, the contribution 
supplements payable out of the property income attributed to insurance policy holders 
received by employees participating in the schemes, minus the service charges. All the 
service charges are treated as charges against the employees' contributions and not the 
employers'. 
c) social contributions by self-employed and non-employed persons (D6113): 
These are social contributions payable for their own benefit by persons who are not 
employees - namely, self-employed persons (employers or own-account workers), or 
non-employed persons. They also include the value of the contribution supplements 
payable out of the property income attributed to insurance policy holders received by 
participating individuals that they are recorded as paying back to the insurance 
enterprises in addition to their other contributions. 
134 -
4.93. Payments of actual social contributions may be compulsory by virtue of a statute or 
regulation, or they may be paid as a result of collective agreements in a particular industry 
or agreements between employer and employees in a particular enterprise, or because they 
are written into the contract of employment itself. In certain cases, the contributions may 
be voluntary. 
The voluntary contributions referred to here cover: 
a) social contributions which persons who are not, or who are no longer, legally obliged to 
contribute pay or continue to pay to a social security fund 
b) social contributions paid to insurance enterprises (or friendly societies and pension 
funds classified in the same sector) as part of supplementary insurance schemes 
organised by enterprises for the benefit ot their employees and which the latter join 
voluntarily 
c) contributions to friendly societies with membership open to employees or self-employed 
workers. 
4.94. To distinguish between social contributions that are compulsory and those that are not, a 
supplementary level is introduced in the classification: 
- compulsory employers' actual social contributions (D61 111) 
- voluntary employers' actual social contributions (D61112) 
- compulsory employees' social contributions (D61121) 
- voluntary employees' social contributions (D61122) 
- compulsory social contributions by self and non-employed persons (D61131) 
- voluntary social contributions by self and non-employed persons (D61132). 
4.95. Actual social contributions to social security funds or other government agencies are 
recorded gross as distributive transactions. 
On the other hand, social contributions paid under private funded schemes to insurance 
enterprises, and to friendly societies and autonomous pension funds included in the same 
sector, are recorded net, i.e. after deducting that part of the contribution which represents 
the value of the insurance service provided to (resident and non-resident) households. 
Under the conventions adopted, this part of the contribution represents, in effect, the 
payment for a market service which forms part of the final consumption of households or, 
in the case of contributions paid by non-resident households, part of exports of services. 
In the case of non-autonomous private funded social insurance schemes, where employers 
maintain their own segregated reserves, no service charge is deducted from contributions 
paid by the employees. As such schemes do not constitute separate institutional units from 
the employers, the costs of managing and administering the funds are assimilated with the 
employers' general production costs. 
- 135 
4.96. Time of recording: 
Employers' actual social contributions (D6111) and employees' social contributions 
(D6112) are recorded at the time when the work that gives rise to the liability to pay the 
contributions is carried out. Social contributions by self-employed and non-employed 
persons (D6113) are recorded when the liabilities to pay are created. 
4.97. In the system of accounts, actual social contributions are recorded: 
- among uses in the secondary distribution of income account of households 
- among uses in the external account of primary incomes and current transfers (in the case 
of non-resident households) 
- among resources in the secondary distribution of income account of resident insurers or 
employers 
- among resources in the external account of primary incomes and current transfers (in the 
case of non-resident insurers or employers). 
Imputed social contributions (D612) 
4.98. Definition: Imputed social contributions (D612) represent the counterpart to social benefits 
(less eventual employees' social contributions) paid directly by employers (i.e. 
not linked to employers' actual contributions) to their employees or former 
employees and other eligible persons. They correspond to flow D 122. 
4.99. It is necessary to introduce imputed social contributions if the social benefits distributed 
directly by employers are to be included in the accounts under the heading social benefits 
and if the cost of these benefits (for the part which is not covered by employees' actual 
contributions) is to be included in the compensation of employees paid by the employer. 
When employers provide social benefits themselves directly to their employees, ex-
employees or dependants out of their own resources without involving a social security 
fund, an insurance enterprise or an autonomous pension fund, and without creating a 
special fund or segregate reserve for the purpose, beneficiaries may be considered as being 
protected against various specific needs, or circumstances, even though no payments are 
being made to cover them. 
Remuneration should therefore be imputed for employees equal in value to the amount of 
social contributions that would be needed to secure the de facto entitlements to the social 
benefits they accumulate. These amounts depend not only on the levels of the benefits 
currently payable but also on the ways in which employers' liabilities under such schemes 
are likely to evolve in the future as a result of factors such as expected changes in the 
numbers, age distribution and life expectancies of their present and previous employees. 
Thus, the values that should be imputed for the contribution ought, in principle, to be based 
on the same kind of actuarial considerations that determine the levels of premiums charged 
by insurance enterprises. When as a result of political events or economic changes, the 
ratio between the number currently employed and the number receiving pensions changes 
appreciably and becomes abnormal, the value of the imputed contributions for current 
employees should be estimated, which will be different from the actual value of the 
pensions paid out. A reasonable percentage of wages and salaries paid to current 
employees can be used for this purpose. 
36 
In practice, however, it may be difficult to decide how large such imputed contributions 
should be. The enterprise may make estimates itself, perhaps on the basis of the 
contributions paid into similar funded schemes, in order to calculate its likely liabilities in 
the future. Otherwise, the only practical alternative may be to use the unfunded social 
benefits payable by the enterprise during the same accounting period (after deducting 
actual contributions made by employees themselves) as an estimate of the imputed 
remuneration that would be needed to cover the imputed contributions. While there are 
obviously many reasons why the value of the imputed contributions that would be needed 
may diverge from the unfunded social benefits actually paid in the same period, such as the 
changing composition and age structure of the enterprise's labour force, the benefits 
actually paid in the current period may nevertheless provide the best estimates of the 
contributions and associated imputed remuneration. 
4.100. Employers are recorded, in the generation of income account, as paying to their existing 
employees as a component of their compensation an amount described as imputed social 
contributions equal in value to the estimated social contributions that would be needed to 
provide for the unfunded social benefits to which they become entitled. Employees are 
recorded, in the secondary distribution of income account, as paying back to their 
employers the same amount of imputed social contributions (i.e. current transfers) as if 
they were paying them to a separate social insurance scheme. 
4.101. Time of recording: 
Imputed social contributions which represent the counterpart of compulsory direct social 
benefits are recorded at the time the obligation to pay the benefits arises. 
Imputed social contributions which represent the counterpart of voluntary direct social 
benefits are recorded at the time the benefits are provided. 
4.102. In the system of accounts, imputed social contributions are recorded: 
- among uses in the secondary distribution of income account of households and in the 
external account of primary incomes and current transfers 
- among resources in the secondary distribution of income account of the sectors to which 
the employers belong and in the external account of primary incomes and current 
transfers. 
Social benefits other than social transfers in kind (D62) 
4.103. This heading includes: 
Social security benefits in cash (D621) 
payable to households by social security funds (excluding reimbursements, see D6311). 
Those benefits are provided under social security schemes. 
I >7 
Private funded social benefits (D622) 
(in cash or in kind), payable to households by insurance enterprises or other institutional 
units administering private funded social insurance schemes 
Unfunded employee social benefits (D623) 
(in cash or in kind), payable to their employees, their dependants or survivors by employers 
administering unfunded social insurance schemes. They typically include: 
a) the continued payment of normal, or reduced, wages during periods of absence from 
work as a result of ill health, accident, maternity, etc. 
b) the payment of family, education or other allowances in respect of dependants 
c) the payment of retirement or survivors' pensions to ex-employees or their survivors, and 
the payment of severance allowances to workers or their survivors in the event of 
redundancy, incapacity, accidental death, etc. (if linked to collective agreements) 
d) general medical services not related to the employer's work 
e) convalescent and retirement homes. 
Unfunded employee social benefits payable by employers to their former employees or 
other eligible persons should be recorded including employers' actual social 
contributions, viz payments made by the employers for the benefit of the persons 
concerned to insurers. 
Social assistance benefits in cash (D624) 
payable to households by government units or NPISHs to meet the same needs as social 
insurance benefits but which are not made under a social insurance scheme incorporating 
social contributions and social insurance benefits. Such benefits do not include current 
transfers paid in response to events or circumstances that are not normally covered by 
social insurance schemes (i.e. transfers made in response to natural disasters, recorded 
under other current transfers ). 
Social transfers in kind (D63) 
4.104. Definition: social transfers in kind (D63) consist of individual goods and services provided 
as transfers in kind to individual households by government units and NPISHs, 
whether purchased on the market or produced as non-market output by 
government units or NPISHs. They may be financed out of taxation, other 
government income or social security contributions, or out of donations and 
property income in the case of NPISHs. 
Although some of the non-market services produced by NPISHs have some of the 
characteristics of collective services, all the non-market services produced by NPISHs are, 
for simplicity and by convention, treated as individual in nature. Services provided free, or 
at prices that are not economically significant, to households are described as individual 
services to distinguish them from collective services provided to the community as a 
whole, or large sections of the community. Individual services consist mainly of education 
and health services, although other kinds of services such as housing services, cultural and 
recreational services are also frequently provided. 
The heading social transfers in kind (D63) includes social benefits in kind and transfers of 
individual non-market goods or services: 
Social benefits in kind (D631) 
4.105. Social benefits in kind are social transfers in kind which answer to the definition of social 
benefits (see 4.83.). They can be subdivided into those where beneficiary households 
actually purchase the goods and services themselves and are then reimbursed, and those 
where the relevant services are provided directly to the beneficiaries. 
a) social security benefits, reimbursements (D6311): 
These benefits consist of reimbursement by social security funds of approved 
. expenditures made by households on specified goods or services 
When a household purchases a good or service for which it is subsequently 
reimbursed, in part or in whole, by a social security fund, the household can be 
regarded as if it were acting on behalf of the social security fund. In effect, the 
household provides a short-term credit to the social security fund that is liquidated as 
soon as the household is reimbursed. 
The amount of the expenditure reimbursed is recorded as being incurred directly by 
the social security fund at the time the household makes the purchase, while the only 
expenditure recorded for the household is the difference, if any, between the 
purchaser's price paid and the amount reimbursed. Thus, the amount of the 
expenditure reimbursed is not treated as a current transfer in cash from the social 
security funds to households. 
b) other social security benefits in kind (D6312): 
These consist of social transfers in kind, except reimbursements, made by social 
security funds to households. Most of other social security benefits in kind are likely 
to consist of medical or dental treatments, surgery, hospital accommodation, 
spectacles or contact lenses, medical appliances or equipment, and similar goods or 
services associated with the provision of health care. The service is provided directly 
to the beneficiaries, without reimbursement, by market or non-market producers and 
should be valued accordingly. Any nominal payments made by the householders 
themselves should be deducted. 
c) social assistance benefits in kind (D6313): 
these consist of transfers in kind provided to households by government units or 
NPISHs that are similar in nature to social security benefits in kind but are not 
provided in the context of a social insurance scheme. 
Transfers of individual non-market goods or services (D632) 
4.106. Definition: transfers of individual non-market goods or services (D632) consist of goods or 
services provided to individual households free or at prices which are not 
economically significant, by non-market producers of government units or 
NPISHs. They correspond to individual consumption expenditure of NPISHs 
and government (see 3.75.), less social benefits in kind (D631) granted to 
households under social security or social assistance arrangements. 
13() 
4.107. Time of recording of social benefits: 
- in cash, they are recorded when the claims on the benefits are established 
- in kind, they are recorded at the time the services are provided, or at the time the 
changes of ownership of goods provided directly to households by non-market 
producers take place. 
4.108. In the system of accounts, social benefits other than social transfers in kind (D62) are 
recorded: 
- among uses in the secondary distribution of income account of the sectors granting the 
benefits 
- among uses in the external account of primary incomes and current transfers (in the case 
of benefits granted by the rest of the world) 
- among resources in the secondary distribution of income account of households 
- among resources in the external account of primary incomes and current transfers (in the 
case of benefits granted to non-resident households). 
Social transfers in kind (D63) are recorded: 
- among uses in the redistribution of income in kind account of the sectors granting the 
benefits 
- among resources in the redistribution of income in kind account of households. 
The consumption of the goods and services transferred is recorded in the use of adjusted 
disposable income account. 
By convention there are no social transfers in kind with the rest of the world (they are 
registered in D62 social benefits other than social transfers in kind). 
OTHER CURRENT TRANSFERS (D7) 
Net non-life insurance premiums (D71) 
4.109. Definition: net non-life insurance premiums (D71) are premiums payable under policies 
taken out by institutional units. The policies taken out by individual households 
are those taken out on their own initiative and for their own benefit, 
independently of their employers or government and outside any social 
insurance scheme(l). Net non-life insurance premiums comprise both the 
actual premiums payable by policy holders to obtain insurance cover during the 
accounting period (premiums earned) and the premium supplements payable 
out of the property income attributed to insurance policy holders, after 
deducting the service charges of insurance enterprises arranging the insurance. 
Net non-life insurance premiums are the amounts available to provide cover against 
various events or accidents resulting in damage to goods or property, or harm to persons as 
a result of natural or human causes - fires, floods, crashes, collisions, sinkings, theft, 
violence, accidents, sickness, etc. or against financial losses resulting frorn events such as 
sickness, unemployment, accidents, etc. 
4.110. Time of recording: net non-life insurance premiums are recorded when they are earned. 
The insurance premiums from which the service charges are deducted are those parts of the 
total premiums paid in the current period, or previous periods, that cover risks outstanding 
in the current period. 
Premiums earned in the current period must be distinguished from the premiums due for 
payment during the current period, which are likely to cover risks in future periods as well 
as the current period. 
4.111. In the system of accounts net non-life insurance premiums are recorded: 
- among uses in the secondary distribution of income account of resident policy holders 
- among uses in the external account of primary incomes and current transfers (in the case 
of non-resident policy holders) 
- among resources in the secondary distribution of income account of resident insurance 
enterprises 
- among resources in the external account of primary incomes and current transfers (in the 
case of non-resident insurance enterprises). 
( I ) Life insurance premiums do not appear as such in the system of accounts. They are divided into: 
a) premiums constituting a form of social contribution (they are paid to social insurance schemes) 
b) individual life insurance premiums 
! he former are included under the heading actual social contributions and the latter are not treated as distributive transactions. Both categories of 
hie insurance premiums increase the insurance technical reserves which appear in the financial account and in the balance sheet. 
Non-life insurance claims (D72) 
4.112. Definition: Non-life insurance claims (D72) represent the claims due under contracts in 
respect of non-life insurance(l); that is, the amounts which insurance 
enterprises are obliged to pay in settlement of injuries or damage suffered by 
persons or goods (including fixed capital goods). 
4.113. Non-life insurance claims do not include payments which constitute social benefits. 
4.114. As the service charges on non-life insurance are calculated by subtracting claims due from 
the combined value of the premiums earned and premium supplements, it follows that the 
total claims due must equal the net non-life premiums receivable by an insurance enterprise 
during the same accounting period. This underlines the fact that the essential function of 
non-life insurance is to redistribute resources. 
The settlement of a non-life insurance claim is treated as a transfer to the claimant. Such 
payments are always treated as current transfers, even when large sums may be involved as 
a result of the accidental destruction of a fixed asset or serious personal injury to an 
individual. The amounts received by claimants are usually not committed for any particular 
purpose and goods or assets which have been damaged or destroyed need not necessarily 
be repaired or replaced. 
Some claims arise because of damage or injuries that the policy holders cause to the 
property or persons of third parties. In these cases, valid claims are recorded as being 
payable directly by the insurance enterprise to the injured parties and not indirectly via the 
policy holder. 
4.115. Time of recording: Non-life insurance claims are recorded at the time the accident or other 
event insured against occurs. 
4.116. In the system of accounts, they are recorded: 
- among uses in the secondary distribution of income account of resident insurance 
enterprises 
- among uses in the external account of primary incomes and current transfers (in the case 
of non-resident insurance enterprises) 
- among resources in the secondary distribution of income account of the beneficiary 
sectors 
- among resources in the external account of primary incomes and current transfers (in the 
case of non-resident beneficiaries). 
(1 ) Life insurance claims do not appear as such in the system of accounts. They are divided into: 
a) claims constituting a form of social benefits 
b) individual life insurance claims. 
The former are included under the heading social benefits other than social transfers in kind and the latter are not treated as distributive-
transactions. 
Both categories of life insurance claims reduce the insurance technical reserves which appear in the financial account, and in (lie-
balance sheet. 
I -12 
Current transfers within general government (D73) 
4.117. Definition: Current transfers within general government (D73) include all transfers 
between the different sub-sectors of general government (central government, 
State, local government, social security funds) with the exception of subsidies, 
investment grants and other capital transfers. 
4.118. Current transfers within general government do not include transactions on behalf of 
another unit; these are recorded only once in the accounts, in the resources of the 
beneficiary unit on whose behalf the transaction is made. This situation arises particularly 
when a government agency (e.g. a central government department) collects taxes which are 
automatically transferred, in total or in part, to another government agency (e.g. a local 
authority). In this case, the tax receipts destined for the other government agency are 
shown as if they were collected directly by that agency and not as a current transfer within 
general government. This solution applies a fortiori in the case of taxes destined for 
another government agency which take the form of additional rates superimposed on taxes 
levied by central government. Delays in remitting the taxes from the first to the second 
government unit give rise to entries under "other accounts receivable/payable" in the 
Financial Account. 
On the other hand, transfers of tax receipts which form part of a block transfer from central 
government to another government agency are included in current transfers within general 
government. These transfers do not correspond to any specific category of taxes and they 
are not made automatically but mainly through certain funds (county and local authority 
funds) in accordance with scales of apportionment laid down by central government. 
4.119. Time of recording: current transfers within general government are recorded at the time the 
regulations in force stipulate they are to be made. 
4.120. In the system of accounts, current transfers within general government are recorded among 
uses and resources in the secondary distribution of income account of the sub-sectors of 
general government 1). 
Current international co-operation (D74) 
4.121. Definition: Current international co-operation (D74) includes all transfers in cash or in 
kind between general government and governments or international 
organisations(2) in the rest of the world, except investment grants and other 
capital transfers. 
(1) Current transfers within general government are flows internal to the general government sector, and do not appear in a consolidated 
account for the sector as a whole. 
(2) Internationa! organisations, in the sense used in the system, derive their authority either directly from the national States which are 
their members or indirectly from them through other international organisations whose members are national States. 
4.122. Heading D74 covers: 
a) the non-tax contributions of the government to the Institutions of the European Union, 
except the "GNP based fourth own resource (1) 
b) the contributions of the government to international organisations (excluding taxes 
payable by member governments to supra-national organisations) 
c) any current transfers which general government may receive from the institutions or 
organisations referred to under a) and b)(2) 
d) current transfers between governments, either in cash (e.g. payments intended to finance 
the budget deficits of foreign countries or overseas territories) or in kind (e.g. 
counterpart of gifts of food, military equipment, emergency aid after natural disasters in 
the form of food, clothing, medicines, etc). 
e) Wages and salaries paid by a government, an Institution of the European Union or an 
international organisation, to advisers or technical assistance experts made available to 
developing countries. 
Current international cooperation includes transfers between general government and international 
organisations located in the country, as international organisations are not treated as resident 
institutional units of the countries in which they are located. 
4.123. Time of recording: the time the regulations in force stipulate the transfers are to be made 
(obligatory transfers), or the time the transfers are made (voluntary transfers). 
4.124. In the system of accounts, current international co-operation is recorded: 
- among uses and resources in the secondary distribution of income account of the general 
government sector 
- among uses and resources in the external account of primary incomes and current 
transfers. 
Miscellaneous current transfers (D75) 
1) Current transfers to NPISHs 
4.125. Current transfers to NPISHs include all voluntary contributions (other than legacies), 
membership subscriptions and financial assistance which NPISHs receive from households 
(including non-resident households) and, to a lesser extent, from other units. 
4.126. The following are included: 
a) regular subscriptions paid by households to trade unions and political, sporting, cultural, 
religious and similar organisations classified in the sector NPISHs 
(1) The levies paid by resident producer units to the Institutions of the European Union are recorded in the accounts as taxes on 
production paid to the rest of the world ; GNP based fourth own resource created by the Council Decision of 24 June 1988 on the 
system of the Communities' own resources is classified in D75 Miscellaneous current transfers. 
(2) The current transfers which the Institutions of the European Union make directly to resident market producer units are shown as 
subsidies paid by the rest of the world 
144 -
b) voluntary contributions (other than legacies) from households, corporate enterprises and 
the rest of the world to NPISHs, including transfers in kind in the form of gifts of food, 
clothing, blankets, medicines, etc; to charities for distribution to resident or non resident 
households 
c) assistance and grants from general government, other than transfers made for the 
specific purpose of financing capital expenditure, which are shown under investment 
grants. 
Excluded are payments of membership dues or subscriptions to market NPIs serving businesses, 
such as chambers of commerce or trade associations, which are treated as payments for services 
rendered. 
4.127. Time of recording: current transfers to NPISHs are recorded at the time they are made. 
4.128. In the system of accounts, current transfers to NPISHs are recorded: 
- among uses in the secondary distribution of income account of the contributing sectors 
- among uses in the external account of primary incomes and current transfers 
- among resources in the secondary distribution of income account of the NPISHs sector. 
2) Current transfers between households 
4.129. Definition: Current transfer between households consist of all current transfers in cash or 
in kind made, or received, by resident households to, or from, other resident or 
non-resident households. In particular, these comprise remittances by emigrants 
or workers permanently settled abroad (or working abroad for a period of a 
year or longer) to members of their family living in their country of origin, or 
by parents to children in another location. 
4.130. Time of recording: the time the transfers occur. 
4.131. In the system of accounts, current transfers between households are recorded: 
- among uses and resources in the secondary distribution of income account of 
households 
- among uses and resources in the external account of primary incomes and current 
transfers. 
3) Fines and penalties 
4.132. Definition: Fines and penalties imposed on institutional units by courts of law or quasi-
judicial bodies are treated as compulsory current transfers. 
4.133. Not included under this heading are: 
a) fines and penalties imposed by tax authorities for the evasion or late payment of taxes, 
which cannot usually be distinguished from the taxes themselves 
b) payments of fees to obtain licences, such payments being either taxes or payments for 
services rendered by government units (see D29, D59). 
145 
(10) 
4.134. Time of recording: fines and penalties are recorded at the time the liabilities arise. 
4) Lotteries and gambling 
4.135. The amounts paid for lottery tickets or placed in bets consist of three elements: the 
payment of a service charge to the unit organising the lottery or gambling ; a current 
transfer between households (from the losers to the winners) ; and a current transfer to 
other beneficiaries designated by the organizers (e.g. charities). The current transfers are 
recorded at the time they are made. 
5) Payments of compensation 
4.136. Definition: Payments of compensation consist of current transfers paid by institutional 
units to other institutional units in compensation for injury to persons or 
damage to property caused by the former, excluding payments of non-life 
insurance claims. Payments of compensation could be either compulsory 
payments awarded by a court of law, or ex gratia payments agreed out of court. 
This heading covers ex gratia payments made by government units or NPISHs 
in compensation for injuries or damage caused by natural disasters other than 
those classified as capital transfers. 
4.137. Time of recording: Payments of compensation are recorded when they are made (ex gratia 
payments) or when they are to be made (compulsory payments). 
6) GNP based fourth own resource 
4.138. The "GNP based fourth own resource" created by the Council Decision of 24 June 1988 on 
the system of Communities' own resources is a current transfer paid by the general 
government of each Member State to the Institutions of the European Union. 
It is a residual contribution to the budget of those Institutions, which is assessed on the 
levels of GNP of each of the countries. 
Time of recording: GNP based fourth own resource is recorded when it is to be paid. 
In the system of accounts, GNP based fourth own resource appears: 
- among uses in the secondary distribution of income account of general government 
- among resources in the external account of primary incomes and current transfers. 
7) Other 
4.139. a) Current transfers from NPISHs to general government which are not taxes 
b) payments by general government to public enterprises classified in the sector non-
financial corporate and quasi-corporate enterprises intended to cover abnormal pension 
charges 
c) travelling fellowships and awards paid to resident or non-resident households by general 
government or NPISHs 
46 
d) bonus payments on savings granted at intervals by general government to households in 
order to reward them for their saving during the period 
e) the refunds by households of expenditure incurred on their behalf by social welfare 
organisations 
f) current transfers from NPISHs to the rest of the world 
g) sponsoring by corporations if those payments cannot be regarded as purchases of 
advertising or other services (for instance, transfers for a good cause, or scholarships). 
4.140. Time of recording: These transfers are recorded when they are made, except those from or 
to general government, which are recorded when they are to be made. 
In the system of accounts, miscellaneous current transfers appear: 
- among resources and uses in the secondary distribution of income account of all sectors 
- among resources and uses in the external account of primary incomes and current 
transfers. 
ADJUSTMENT FOR THE CHANGE IN THE NET EQUITY OF HOUSEHOLDS ON 
PENSION FUNDS (D8) 
4.141. Definition: The adjustment for the change in the net equity of households on pension funds 
(D8) represents the adjustment needed to make appear in the saving of 
households the change in the actuarial reserves on which households have a 
definite claim (a claim which re-appears at the financial level as an asset under 
heading F61) and which are fed by premiums and contributions recorded in the 
secondary distribution of income account as social contributions. 
4.142. Since households are treated in the financial accounts and balance sheets of the system as 
owning the reserves of private funded schemes, both autonomous and non-autonomous, an 
adjustment item is necessary to ensure that any excess of pension contributions over 
pension receipts (i.e. of "transfers" payable over "transfers" receivable) does not affect 
household saving. 
In order to neutralize this effect, an adjustment equal to: 
the total value of the actual social contributions in respect of pensions payable into 
private funded pension schemes 
+ the total value of contribution supplements payable out of the property income 
attributed to insurance policy holders 
- the value of the associated service charges 
- the total value of the pensions paid out as social insurance benefits by private funded 
pension schemes 
4 7 
is added to the disposable income, or adjusted disposable income, of households in the use 
of income accounts before arriving at saving. 
In this way, the saving of households is the same as what it would be if pension 
contributions and pension receipts had not been recorded as current transfers in the 
secondary distribution of income account. This adjustment item is necessary in order to 
reconcile the saving of households with the change in their net equity on pension funds 
reserves recorded in the financial account of the system. Opposite adjustments are, of 
course, needed in the use of income accounts of the insurance enterprises or autonomous 
pension funds or employers maintaining non autonomous pension funds. 
4.143. Time of recording: 
the adjustment is recorded according to the flows which compose it. 
4.144. In the system of accounts, the adjustment for the change in the net equity of households on 
pension funds is recorded: 
- among uses in the use of income accounts of the insurance enterprises sector and other 
sectors administering non-autonomous pension funds 
- among uses in the external account of primary incomes and current transfers (in the case 
of non-resident institutions) 
- among resources in the use of income accounts of the households sector 
- among resources in the external account of primary incomes and current transfers (in the 
case of non-resident households). 
CAPITAL TRANSFERS (D9) 
4.145. Capital transfers are different from current transfers by the fact that they involve the 
acquisition or disposal of an asset, or assets, by at least one of the parties to the transaction. 
Whether made in cash or in kind, they should result in a commensurate change in the 
financial, or non-financial, assets shown in the balance sheets of one or both parties to the 
transaction. 
4.146. A capital transfer in kind consists of the transfer of ownership of an asset (other than 
inventories and cash), or the cancellation of a liability by a creditor, without any 
counterpart being received in return. 
A capital transfer in cash consists of the transfer of cash that the first party has raised by 
disposing of an asset, or assets (other than inventories), or that the second party is 
expected, or required, to use for the acquisition of an asset, or assets (other than 
inventories). The second party, the recipient, is often obliged to use the cash to acquire an 
asset, or assets, as a condition on which the transfer is made. 
4.147. Capital transfers cover capital taxes (D91), investment grants (D92) and other capital 
transfers (D99). 
Capital taxes (D91) 
4.148. Definition: capital taxes (D91) consist of 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 inter-vivos or other transfers. 
4.149. Capital taxes include: 
a) taxes on capital transfers: inheritance taxes, death duties and taxes on gifts inter-vivos, 
which are deemed to be levied on the capital of the beneficiaries - except taxes on sales 
of assets, as these are not transfers 
b) capital levies: occasional and exceptional levies on assets or net worth owned by 
institutional units(l) . These include betterment levies, that is taxes on the increase in 
the value of agricultural land due to planning permission to develop the land for 
commercial or residential purposes. 
4.150. Time of recording: capital taxes are recorded at the time when the tax liabilities arise. 
4.151. In the system of accounts, capital taxes are recorded: 
- among changes in liabilities and net worth (-) in the capital account of the sectors in 
which the taxpayers are classified 
- among changes in liabilities and net worth (+) in the capital account of general 
government 
- among changes in liabilities and net worth in the capital account of the rest of the world. 
Investment grants (D92) 
4.152. Definition: Investment grants (D92) consist of capital transfers in cash or in kind made by 
governments or by the rest of the world(2) to other resident or non-resident 
institutional units to finance all or part of the costs of their acquiring fixed 
assets. 
4.153. Investment grants can be made in cash or in kind. Investment grants in kind consist of 
transfers of transport equipment, machinery and other equipment by governments to other 
resident or non-resident units and also the direct provision of buildings or other structures 
for resident or non-resident units. 
4.154. Investment grants do not include transfers of military equipment in the form of weapons or 
equipment whose sole function is to fire such weapons, as they are not classified as fixed 
assets. 
(1) However, capital gains taxes arc shown in the accounts under the heading current taxes on income, wealth, etc. 
(2) Investment grants made by the rest of the world include those paid directly by the Institutions of the European Union_(e.g. certain 
transfers made by the European Agricultural Guidance and Guarantee Fund, EAGGL-Guidance Section) 
4.155. The value of capital formation carried out by general government for the benefit of other 
sectors of the economy is also to be shown under investment grants whenever the 
beneficiary is identifiable and becomes the owner of the capital. In such cases, the capital 
formation is recorded among uses in the capital account of the beneficiary and is financed 
by an investment grant which appears among resources in the same account. 
4.156. Heading D92 includes not only single non-recurrent payments designed to finance capital 
formation during the same period, but also instalment payments in respect of capital 
formation carried out during an earlier period. Thus, those parts of the annual payments by 
general government which, represent the amortization of debts, contracted by enterprises 
for the purpose of capital formation projects for whose amortization the government has 
assumed total or partial responsibility, are also treated as investment grants. 
Grants for interest relief made by general government are, however, excluded, even when 
the object of the relief is to encourage capital formation. In practice, the assumption by 
public authorities of part of the interest charges constitutes, like the flow of interest itself, a 
current distributive transaction. Nevertheless, when a grant serves the dual purpose of 
financing the amortization of the debt contracted and the payment of the interest on the 
capital borrowed, and when it is not possible to separate these two elements, the whole of 
the grant is treated in the accounts as an investment grant. 
4.157. Investment grants to the sector non-financial corporate and quasi-corporate enterprises 
include, in addition to grants to private enterprises, capital grants to public enterprises 
recognized as independent legal entities, provided that the government department which 
makes the grant does not retain a claim against the public enterprise. 
4.158. Investment grants to the households sector include equipment and modernisation grants to 
businesses other than corporate or quasi-corporate enterprises and grants to households for 
the construction, purchase and improvement of dwellings. 
4.159. Investment grants to general government include all payments (except grants for interest 
relief) made to subsectors of general government 1) for the purpose of financing capital 
formation. The most important examples are transfers from central government to local 
authorities for the specific purpose of financing their gross fixed capital formation. It 
should be emphasized that transfers of a general nature intended for various or 
indeterminate purposes are shown under current transfers within general government, even 
if they are partly used to cover expenditure on capital formation. 
4.160. Investment grants to non-profit institutions from general government and from the rest of 
the world are distinguished from current transfers to non-profit institutions by using the 
same criterion. 
(1) Investment grants within general government are flows internal to the general government sector and do not appear in a consolidated 
account for the sector as whole 
I so 
4.161. Investment grants to the rest of the world should also be restricted to transfers with the 
r specific objective of financing capital formation by non-resident units. They include, for 
example, unrequited transfers for the construction of bridges, roads, factories, hospitals or 
schools in developing countries, or for constructing buildings for international 
organisations. They may comprise instalment payments over a period of time as well as 
single payments. This heading also covers the supply of fixed capital goods free of charge. 
4.162. Time of recording: investment grants in cash are recorded when the payment is due to be 
made. Investment grants in kind are recorded when the ownership of the asset is 
transferred. 
4.163. In the system of accounts, investment grants are recorded: 
- among changes in liabilities and net worth (-) in the capital account of general 
government 
- among changes in liabilities and net worth (+) in the capital account of the sectors 
receiving the grants 
- among changes in liabilities and net worth in the capital account of the rest of the world. 
Other capital transfers (D99) 
4.164. Definition: Other capital transfers (D99) cover transfers other than investment grants and 
capital taxes which do not themselves redistribute income but redistribute 
saving or wealth among the different sectors or subsectors of the economy or 
the rest of the world. 
4.165. Other capital transfers include the following transactions: 
a) payments by general government or by the rest of the world to the owners of capital 
goods destroyed or damaged by acts of war, other political events or natural disasters 
(floods etc.) 
b) transfers from general government to non-financial corporate and quasi-corporate 
enterprises to cover losses accumulated over several financial years or exceptional 
losses from causes beyond the control of the enterprise 
c) transfers between sub-sectors of general government designed to cover unexpected 
expenditure or accumulated deficits(l) 
d) non-recurrent bonus payments on savings granted by general government to households 
to reward them for their savings carried out over a period of several years 
e) legacies, large gifts inter-vivos and donations between units belonging to different 
sectors, including legacies or large gifts to NPIs (for example, gifts to universities to 
cover the costs of building new residential colleges, libraries, laboratories, etc.) 
(1) These transfers between sub-sectors of general government are flows within the general government sector and do not appear in a 
consolidated account for the sector as a whole 
f) the cancellation of debts by agreement between institutional units belonging to different 
sectors or sub-sectors (for example, the cancellation by the government of a debt owed 
to it by a non-financial corporate enterprise or a foreign country; payments in fulfilment 
of guarantees which free defaulting debtors from their obligations). Such cancellations 
are treated as a capital transfer from the creditor to the debtor equal to the value of the 
outstanding debt at the time of cancellation. However, the writing-off of debt is not a 
transaction between institutional units and therefore does not appear in either the capital 
account or the financial account of the system. If the creditor accepts such a write-off or 
default, it should be recorded in the other changes in the volume of assets accounts of 
the creditor and the debtor. Provisions for bad debt are treated as book-keeping entries 
that are internal to the enterprise and do not appear anywhere in the system. The 
unilateral repudiation of debt by a debitor is also not a transaction and is not recognised 
in the system 
g) that part of realised capital gains (or losses) which is redistributed to another sector 
h) major payments in compensation for extensive damage or serious injuries not covered 
by insurance policies (except payments by general government or by the rest of the 
world described in a)). The payments may be awarded by courts of law or settled out of 
court. They include payments of compensation for damage caused by major explosions, 
oil spillages, the side-effects of drugs, etc. 
i) extraordinary payments into social insurance funds made by employers (including 
government) of by government (as part of its social function), in so far as these 
payments are designed to increase the actuarial reserves of these funds. The 
accompagnying adjustment from social insurance funds to households is also recorded 
as other capital transfers (D99) (see annex on insurance para. 20). 
4.166. Time of recording: 
- other capital transfers in cash are recorded when the payment is due to be made 
- other capital transfers in kind are recorded when the ownership of the asset is transferred 
or the liability cancelled by the creditor. 
4.167. In the system of accounts, other capital transfers are shown among changes in liabilities 
and net worth in the capital account of sectors and of the rest of the world. 
!52 
CHAPTER V 
FEVANCIAL TRANSACTIONS 
153 
5.01. Definition: Financial transactions are transactions in financial assets and liabilities between 
institutional units, and between them and the rest of the world. 
5.02. Considering the definition of a transaction (see 1.33.), a financial transaction is an interaction 
between institutional units, or between an institutional unit and the rest of the world, by 
mutual agreement, involving a simultaneous creation or liquidation of a financial asset and the 
counterpart liability, or a change in ownership of a financial asset, or an assumption of a 
liability. 
5.03. Financial assets are economic assets, comprising means of payment, financial claims and 
economic assets which are close to financial claims in nature. 
5.04. Means of payment consist of monetary gold, special drawing rights, currency and transferable 
deposits. 
Financial claims entitle their owners, the creditors, to receive a payment or series of payments 
without any counter-performance from other institutional units, the debtors, who have 
incurred the counterpart liabilities. 
Examples of economic assets which are close to financial claims in nature are shares and other 
equity and partly contingent assets. The institutional unit issuing such a financial asset is 
considered to have incurred a counterpart liability. 
5.05. Contingent assets are contractual arrangements between institutional units, and between them 
and the rest of the world, which specify one or more conditions which must be fulfilled before 
a financial transaction takes place. Examples are guarantees of payment by third parties, 
letters of credit, lines of credit, underwritten note issuance facilities (NIFs) and many of the 
derivative instruments. In the System, a contingent asset is a financial asset in cases where the 
contractual arrangement itself has a market value because it is tradable or can be offset on the 
market. Otherwise, a contingent asset is not recorded in the System^1) 
5.06. Seven categories of financial assets are distinguished: monetary gold and special drawing 
rights (AF.l), currency and deposits (AF.2), securities other than shares (AF.3), loans (AF.4), 
shares and other equity (AF.5), insurance technical reserves (AF.6) and other accounts 
receivable/payable (AF.7). 
5.07. In the System, each financial asset has a counterpart liability, with the exception of those 
financial assets classified in the category monetary gold and special drawing rights (AF.l). 
Six categories of liabilities are distinguished corresponding to the categories of the 
counterpart financial assets. 
5.08. The classification of financial transactions corresponds to the classification of financial assets 
and liabilities. Seven categories of financial transactions are distinguished: transactions in 
monetary gold and special drawing rights (F.l), transactions in currency and deposits (F.2), 
transactions in securities other than shares (F.3), transactions in loans (F.4), transactions in 
shares and other equity (F.5), transactions in insurance technical reserves (F.6) and 
transactions in other accounts receivable/payable (F.7). 
^ ' Insurance technical reserves (AF.6) are unconditional liabilities of insurance corporations and pension fudns. However, the counterpart 
financial assets of individual policy holders and beneficiaries are contingent assets in most cases. 
I M 
5.09. The financial assets held and the liabilities outstanding at a particular point in time (of a sector 
or the rest of the world) are recorded in the balance sheet (see chapter VII). Financial 
transactions result in changes in balance sheets. However, the changes between the opening 
balance sheet and the closing balance sheet may also include other flows (see chapter VI). 
They are not due to interactions between institutional units, or between them and the rest of 
the world, by mutual agreement. The other flows are broken down into revaluations in 
financial assets and liabilities, and changes in the volume of financial assets and liabilities not 
due to financial transactions. The former are recorded in the revaluation account and the latter 
in the other changes in the volume of assets account under the categories catastrophic losses, 
uncompensated seizures, other volume changes in financial assets and liabilities n.e.c, and 
changes in classifications and structure. 
5.10. Financial transactions between institutional units are recorded in the financial accounts of the 
sectors involved. Financial transactions between institutional units and the rest of the world 
are recorded in the financial accounts of the sectors involved and the external financial 
account, that is the financial account of the rest of the world (see chapter VIII). 
The financial account (of a sector or the rest of the world) shows on its left side acquisitions 
less disposals of financial assets, while its right side shows the incurrence of liabilities less 
their repayment. The balancing item of the financial account, that is net acquisition of 
financial assets less net incurrence of liabilities, is net lending (+) / net borrowing (-) (B.9). 
5.11. The financial account of a sector may be consolidated or non-consolidated. The non-
consolidated financial account of a sector shows the changes in financial assets and liabilities 
due to all financial transactions in which institutional units classified in the sector are 
involved. The consolidated financial account of a sector shows the changes in financial assets 
and liabilities due to financial transactions between institutional units classified in the sector 
under consideration and other institutional units or the rest of the world. Compared to the non-
consolidated financial account, the financial transactions between institutional units classified 
in the sector under consideration are eliminated from the consolidated financial account. The 
external financial account is consolidated by definition. 
5.12. A financial transaction between two institutional units increases net lending / net borrowing of 
one institutional unit and, by the same amount, decreases net lending / net borrowing of the 
other institutional unit. Financial transactions between institutional units classified in the same 
sector do not change net lending / net borrowing of the sector. The consolidated and the non-
consolidated financial account of a sector show the same amount of net lending / net 
borrowing. By the same token, financial transactions between institutional units do not change 
net lending / net borrowing of the total economy. It is of equal amount but opposite sign to net 
lending / net borrowing in the external financial account. Therefore, total net lending / net 
borrowing of all institutional units and the rest of the world is zero. 
5.13. The financial account by debtor/creditor^1) (of a sector or the rest of the world) is an extension 
of the financial account, showing in addition a breakdown of the net acquisition of financial 
assets by debtor sector and a breakdown of the net incurrence of liabilities by creditor sector. 
Therefore, it provides informations on debtor/creditor relationships and it is consistent with 
the financial balance sheet by debtor/creditor (see 7.63.). In the case of financial transactions 
on secondary markets, however, it does not provide informations on the institutional units to 
whom financial assets were sold or from whom financial assets were bought, that is to say the 
financial account by debtor/creditor provides not a complete answer on the question who is 
financing whom in an accounting period. 
5.14. The financial account is the final account, in the full sequence of accounts that records 
transactions (see chapter VIII). Therefore, the financial account does not have a balancing 
item that is carried forward to another account. In the System, the balancing item of the 
financial account is identical with the balancing item of the capital account. In practice, a 
discrepancy will usually be found between them because they are calculated on the basis of 
different statistical data. 
5.15. Financial transactions have always counterpart transactions in the System., The counterpart 
transactions are either also financial transactions or transactions to be recorded in accounts 
other than the financial account. 
The simultaneous rise or reduction of both financial assets and liabilities, or the exchange of 
one financial asset for another are recorded wholly within the financial account (of a sector or 
the rest of the world). In cases where a transaction and its counterpart are both financial 
transactions, they change the portfolio of financial assets and liabilities and they may change 
the totals of both financial assets and liabilities of the institutional units involved or the rest of 
the world, but they do not change net lending / net borrowing or net worth. 
The counterparts of financial transactions may also be transactions in products (see chapter 
III), distributive transactions (see chapter IV) or transactions in non-financial non-produced 
assets (see 6.06.). In cases where the counterpart transaction of a financial transaction is not a 
financial transaction, net lending / net borrowing of the institutional units involved or the rest 
of the world will change. 
5.16. The counterpart transaction of a financial transaction may be a (current or a capital) transfer 
(see chapter IV). In this case, the financial transaction involves a change in ownership of a 
financial asset, or an assumption of a liability as debtor (debt assumption), or the simultaneous 
liquidation of a financial asset and the counterpart liability (debt cancellation or debt 
forgiveness). The counterpart transfer of debt assumption and debt cancellation is classified in 
the category capital transfers (D.9) and is recorded in the capital account. However, the 
counterpart transaction of debt assumption and debt cancellation is not always a transfer. In 
cases where the owner of a corporation or quasi-corporation assumes liabilities from or 
cancels financial claims against the corporation or quasi-corporation, the counterpart 
transaction of debt assumption or debt cancellation is a transaction in shares and other equity 
(F.5). 
0) The 1993 SNA (11.103 - 11.111) uses the term detailed flow of funds account. 
156 
Contrary to debt assumption and debt cancellation, the writing-off or writing-down of bad 
debts by creditors and the unilateral cancellation of a liability by a debtor (debt repudiation) 
are not classified as financial transactions because they do not involve interactions between 
institutional units, or between institutional units and the rest of the world, by mutual 
agreement. The writing-off or writing-down of bad debts by creditors is recorded in the other 
changes in the volume of assets account (see 6.27.d). Debt repudiation is not recognized in the 
System. 
5.17. The counterpart transaction of a financial transaction may be interest (D.41). Interest is 
receivable by the creditors and payable by the debtors of certain kinds of financial claims 
classified in the categories currency and deposits (AF.2), securities other than shares (AF.3), 
loans (AF.4) and other accounts receivable/payable (AF.7). In the System, interest is recorded 
on an accrual basis, that is to say interest is recorded as accruing continuously over time to the 
creditor on the amount of principal outstanding (see 4.50.). The counterpart transaction of an 
entry in interest (D.41) is always a financial transaction creating an additional financial claim 
of the creditor against the debtor. The effect of this financial transaction is that interest is 
reinvested. The actual payment of interest is not recorded in interest (D.41), but it involves a 
transaction relating to the change in ownership of the means of payment.- The counterpart 
transaction is a financial transaction reducing the net financial claim of the creditor against the 
debtor. When accrued interest is not paid when due, this gives rise to interest arrears. As 
accrued interest is already recorded in the System, interest arrears do not change the total of 
financial assets or liabilities but possibly their classification (see 5.131.). 
5.18. The counterpart transaction of a financial transaction may be property income allocated but 
not distributed. Examples are interest (D.41) and dividends (D.421) received by mutual funds 
from the investments they have made and which are allocated but not distributed to 
shareholders (see 4.49.b and 4.54.b), reinvested earnings on direct foreign investment (D.43) 
and property income attributed to insurance policy holders (D.44) in case of individual life 
insurance policies not taken out under social insurance schemes. The effect of the counterpart 
financial transaction is that the (positive or negative) property income is reinvested. 
CLASSIFICATION OF FINANCIAL TRANSACTIONS 
5.19. The financial transactions are classified in categories subdivided into sub-categories and 
some of which are further subdivided into sub-positions. The classification of the 
transactions in financial assets and liabilities corresponds to the classification of financial 
assets and liabilities (see 5.06. - 5.08.). Therefore, the definitions of the categories, sub­
categories and sub-positions and the supplementary explanations are provided only once in 
the ESA - in this section of the financial transactions chapter. The balance sheets chapter 
does not repeat the definitions and their explanations in its main text but it provides in its 
annex 1 a summary of all assets and liabilities defined in the System. 
5.20. The classification of financial transactions and of financial assets and liabilities is based 
primarily on the liquidity and the legal characteristics of the financial assets. The 
classification does not contain functional categories with the exception of a memorandum 
item related to direct foreign investment. The definitions of the categories, sub-categories 
157 
Classification of financial transactions 
Monetary gold and special drawing rights (SDRs) 
Monetary gold 
Special drawing rights (SDRs) 
Currency and deposits 
Currency 
Transferable deposits 
Other deposits 
Securities other than shares 
Securities other than shares, excluding financial derivatives 
Short-term 
Long-term 
Financial derivatives 
Loans 
Short-term 
Long-term 
Shares and other equity 
Shares and other equity, excluding mutual funds shares 
Quoted shares 
Unquoted shares 
Other equity 
Mutual funds shares 
Insurance technical reserves 
Net equity of households in life insurance reserves and 
in pension funds reserves 
Net equity of households in life insurance reserves 
Net equity of households in pension funds reserves 
Prepayments of insurance premiums and reserves for 
outstanding claims 
Other accounts receivable/payable 
Trade credits and advances 
Other Code 
F.l 
F.2 
F.3 
F.4 
F.5 
F.6 
F.7 F.ll 
F.12 
F.21 
F.22 
F.29 
F.33 
F.34 
F.41 
F.42 
F.51 
F.52 
F.61 
F.62 
F.71 
F.79 F.331 
F.332 
F.511 
F.512 
F.513 
F.611 
F.612 
Memorandum item: Direct foreign investment F.m 
- 158-
and sub-positions are in general independent of the classification of institutional units. As the 
need arises, however, the classification of financial assets and liabilities can be further 
detailed by a cross classification with the classification of institutional units. The class 
deposits between monetary financial institutions would be an example. The detail in which the 
classification of financial assets and liabilities may be employed depends on the institutional 
sector to be analyzed. 
5.21. Analyses of the monetary policy transmission channels may require to identify measures of 
money in the balance sheets and also in the financial accounts of the sectors and the rest of the 
world. However, the definitions of the measures of money applied vary among countries and 
in time. In addition, they are composed of components which in most of the cases do not 
correspond with the categories, sub-categories or sub-positions of financial assets and 
liabilities as defined in the System. Moreover, the money-creating, money-holding and 
money-neutral sectors depend on the definition of the monetary aggregate under 
consideration. Therefore, measures of money are not defined in the System. Nevertheless, a 
method is provided in the annex to, this chapter which allows to show any measure of money 
in the balance sheets and the financial accounts. 
5.22. Innovations in financial markets have diminished the usefulness of a short-term / long-term 
distinction for financial assets and liabilities. However, when maturity analysis is important, 
such as for analysis of interest rates and asset yields, a breakdown of a range of maturities 
may be required. Therefore, maturity distinction is recognized as a secondary classification 
criterion when relevant. 
Definition: Short-term financial assets (liabilities) are financial assets (liabilities) whose 
original maturity is normally one year or less, and in exceptional cases two years 
at the maximum^). 
Long-term financial assets (liabilities) are financial assets (liabilities) whose 
original maturity is normally more than one year, and in exceptional cases more 
than two years at the minimum. 
5.23. Many of the categories, sub-categories and sub-positions of the financial assets and liabilities 
may be broken down by the units in which they are denominated. 
Definition: Financial assets (liabilities) in national currency are financial assets (liabilities) 
which are denominated in the currency unit(s) of the country's legal tender. 
Financial assets (liabilities) in foreign currency are financial assets (liabilities) 
which are not denominated in the currency unit(s) of the country's legal tender. 
Financial assets in foreign currency include financial assets denominated in a currency basket, 
for example ECU or SDR, and financial assets denominated in gold. A distinction between 
national and foreign currency is particularly useful for the category currency and deposits 
(AF.2). 
(i) In certain cases, securities other than shares issued by the general government sector with a maturity up to five years may be classified 
as short-term. 
I so 
MONETARY GOLD AND SPECIAL DRAWING RIGHTS (SDRs) (F.l) 
5.24. Category F.l consists of two sub-categories of financial transactions: 
monetary gold (F.ll) 
special drawing rights (SDRs) (F.l2). 
5.25. The financial assets classified in the category monetary gold and SDRs (AF.l) are the only 
financial assets for which there are no counterpart liabilities in the System. Therefore, 
transactions in monetary gold and SDRs (F.l) always involve changes in ownership of 
financial assets (see 5.02.). 
Monetary gold (F.ll) 
5.26. Definition: The sub-category monetary gold (F.ll) consists of all transactions in monetary 
gold (AF.l 1) that is gold held as a component of foreign reserves by monetary 
authorities or by others who are subject to the effective control of the authorities. 
5.27. The monetary authorities sector, which is based on a functional concept, consists of the sub-
sector the central bank (S.121) and central government institutions, which carry out operations 
usually attributed to the central bank. Such operations include the issue of currency, 
maintenance and management of international reserves and the operation of exchange 
stabilization funds. 
Therefore, gold can normally be a financial asset only for the central bank or central 
government. However, in some circumstances, other financial corporations may hold title to 
gold that can only be sold with the specific consent of the monetary authorities. In such 
restricted circumstances, the concept of effective control can be applied to the gold holdings 
of financial corporations other than the central bank. 
5.28. Monetary gold normally takes the form of bars with a purity of at least 995/1000. 
5.29. Transactions in monetary gold consist predominantly of sales and purchases of monetary gold 
among monetary authorities. Purchases of monetary gold are recorded in the financial 
accounts of the domestic monetary authorities as increases in financial assets. The counterpart 
entries are decreases in financial assets of the rest of the world. 
5.30. Transactions in non-monetary gold, that is gold other than monetary gold, are treated as 
acquisitions less disposals of valuables (if the sole purpose is to provide a store of wealth) and 
otherwise as final or intermediate consumption and/or change in inventories. Transactions in 
non-monetary gold include transactions by the monetary authorities in gold, that is not a 
component of their foreign reserves. 
5.31. If monetary authorities add non-monetary gold to their holdings of monetary gold or release 
monetary gold from their holdings for non-monetary purposes, they are deemed to have 
monetized or demonetized gold, respectively. Monetization or demonetization of gold does 
not give rise to entries in the financial accounts; instead, the change in balance sheet positions 
is accounted for by entries in the other changes in the volume of assets account as a 
reclassification, i.e. the reclassification of gold as valuables (AN. 13) to monetary gold 
(AF.l 1) (see 6.32.). Demonetization of gold is recorded symmetrically. 
160 
5.32. Deposits, securities and loans denominated in gold are treated as financial assets other than 
monetary gold and are classified along with similar financial assets in foreign currency in the 
appropriate category. 
Non-monetary gold swaps, that is arrangements involving the temporary exchange of non­
monetary gold for deposits, are treated as collateralized loans (see 5.8l.e). 
Special drawing rights (SDRs) (F.12) 
5.33. Definition: The sub-category special drawing rights (SDRs) (F.12) consists of all 
transactions in SDRs (AF.l2) that is international reserve assets created by the 
International Monetary Fund (IMF) and allocated to its members to supplement 
existing reserve assets. 
5.34. SDRs are not considered liabilities of the IMF, and IMF members to whom SDRs are 
allocated do not have an actual (unconditional) liability to repay their SDRs allocations. SDRs 
are held exclusively by official holders, which are normally central banks, and are transferable 
among participants in the IMF's Special Drawing Rights Department and other holders 
designated by the IMF (other central banks and certain international agencies). SDRs 
represent each holder's assured and unconditional right to obtain other reserve assets, 
especially foreign exchange. 
5.35. Changes in SDRs hold by a monetary authority can arise through transactions in SDRs 
involving SDR payments to or receipts from the IMF, other participants in the IMF's Special 
Drawing Rights Department, or other holders. They are recorded in the financial accounts of 
the monetary authorities and the rest of the world, respectively. Changes in SDRs can also 
arise from changes in the value of SDRs to be recorded in the revaluation account, or from 
allocations and cancellations of SDRs to be recorded in the other changes in the volume of 
assets account (see 6.27.a). 
CURRENCY AND DEPOSITS (F.2) 
5.36. Definition: The category currency and deposits (F.2) consists of all transactions in currency 
and deposits (AF.2) that is currency in circulation and all types of deposits in 
national and in foreign currency. 
5.37. Category F.2 is divided into three sub-categories of financial transactions: 
currency (F.21) 
transferable deposits (F.22) 
other deposits (F.29). 
The distinction between transferable and non-transferable deposits may be difficult and not 
very useful analytically in some countries (for the distinction between deposits and loans see 
5.74.-5.76.). 
Currency (F.21) 
5.38. Definition: The sub-category currency (F.21) consists of all transactions in currency (AF.21) 
that is notes and coins in circulation that are commonly used to make payments. 
161 -
(11) 
5.39. Sub-category AF.21 includes: 
a) notes and coins in circulation issued by resident monetary authorities; 
b) notes and coins in circulation issued by non-resident monetary authorities and held by 
residents. 
5.40. Sub-category AF.21 does not include: 
notes and coins that are not in circulation, for example, a central bank's stock of own 
notes or emergency stockpiles of notes; 
commemorative coins that are not commonly used to make payment. 
5.41. All sectors and the rest of the world may hold currency. It is issued by the central bank, 
central government, the rest of the world, and in exceptional cases other monetary financial 
institutions. Currency is deemed to be a liability of the issuing institutional unit. 
Transferable deposits (F.22) 
5.42. Definition: The sub-category transferable deposits (F.22) consists of all transactions in 
transferable deposits (AF.22) that is deposits (in national or in foreign currency) 
which are immediately convertible into currency or which are transferable by 
cheque, banker's order, debit entry or the like, both without any kind of significant 
restriction or penalty. 
5.43. Sub-category AF.22 includes transferable deposits with resident and non-resident monetary 
financial institutions. They cover transferable deposits between monetary financial 
institutions, such as deposits which other monetary financial institutions hold with the central 
bank to satisfy compulsory reserve requirements, insofar as such deposits remain transferable, 
or working balances and foreign exchange swaps between central banks or between other 
monetary financial institutions. 
5.44. All sectors and the rest of the world may hold transferable deposits. They are liabilities 
predominantly of monetary financial institutions and the rest of the world, and sometimes of 
general government. 
Other deposits (F.29) 
5.45. Definition: The sub-category other deposits (F.29) consists of all transactions in other 
deposits (AF.29) that is deposits (in national or in foreign currency) other than 
transferable deposits. Other deposits cannot be used to make payments at any time 
and they are not convertible into currency or transferable deposits without any-
kind of significant restriction or penalty. 
5.46. Sub-category AF.29 includes: 
a) time deposits. These deposits are not immediately disposable because they are subject to 
a fixed term or a period of prior notice before withdrawal. They include, for example, 
deposits with the central bank as a form of compulsory reserves to the extent that the 
depositors cannot realize them without notice or restriction; 
162 
b) savings deposits, savings books, savings certificates or certificates of deposit all of 
which are not negotiable, or whose negotiability, while theoretically possible, is very 
restricted; 
c) deposits resulting from a savings scheme or contract. These deposits often involve an 
obligation on the part of the depositor to make regular payments over a given period, 
and the capital paid and interest accrued do not become available until a fixed term has 
elapsed. These deposits are sometimes combined with the issue, at the end of the 
savings period, of loans which are proportionate to the accumulated savings, for the 
purpose of buying or building a dwelling; 
d) evidence of deposit issued by savings and loan associations, building societies, credit 
unions, and the like, sometimes called shares, which are legally, or in practice, 
redeemable on demand or at relatively short notice; 
e) repayable margin payments related to financial derivatives which are liabilities of 
monetary financial institutions (see 5.81.c); 
f) short-term repurchase agreements (repos) which are liabilities of monetary financial 
institutions (see 5.8l.d)(1>. 
5.47. Sub-category AF.29 does not include negotiable certificates of deposit and negotiable savings 
certificates. They are classified in category securities other than shares, excluding financial 
derivatives (AF.33). 
5.48. Sub-category AF.29 includes further: 
a) Official ECUs hold by the central bank. These financial assets consist of the ECUs 
issued by the EMI against monetary reserves from the central banks of the Member 
States for the purpose of implementing the EMS Agreement. These ECUs may be used 
by the EMI and the central banks of the Member States as a means of settlement and for 
transactions between them and the EMI. The EMI may grant to the monetary authorities 
of third countries and to international monetary institutions the status of Other Holders 
ofECUs;(2) 
b) Financial claims or liabilities of the central bank arising from the very short-term 
financing mechanism and the short-term monetary support mechanism. They are 
administered by the EMI;<3) 
c) Financial claims on the IMF that are components of international reserves and that are 
not evidenced by loans. They consist of an IMF member's reserve tranche position 
which arises from the payment of part of a member's subscription in reserve assets and 
the Fund's net use of the member's currency. 
^ Liabilities to the IMF that are not evidenced by loans. They consist of use of Fund credit 
within the IMF's General Resources Account; it measures the amount of a member's 
currency with the IMF that the member is obligated to repurchase. 
(2) ' ' The 1993 SNA (11.32, 11.72 and 11.83) classifies repurchase agreements under loans unless they involve bank liabilities and are 
classified in national measures of broad money; in the latter case, repurchase agreements are classified under other deposits. 
Articles 6.2 and 6.3 of the Protocol on the Stature of the European Monetary Institute annexed to the Treaty establishing the European 
Community. 
' ' Article 6.1 second indent of the Protocol on the Statute of the European Monetary Institute annexed to the Treaty establishing the 
European Community. 
163 
5.49. AU sectors and the rest of the world may hold other deposits. They are liabilities 
predominantly of monetary financial institutions and the rest of the world, but also of other 
sectors, for example, general government (see 5.74. - 5.76.). 
SECURITIES OTHER THAN SHARES (F.3) 
5.50. Definition: The category securities other than shares (F.3) consists of all transactions in 
securities other than shares (AF.3) that is financial assets which are bearer 
instruments, are usually negotiable and traded on secondary markets or can be 
offset on the market, and do not grant the holder any ownership rights in the 
institutional unit issuing them. 
5.51. Category AF.3 covers financial assets which are typically represented by documents intended 
to circulate, and whose nominal value is determined on issue. It includes bills, bonds, 
certificates of deposit, commercial paper, debentures, financial derivatives, and similar 
instruments normally traded in the financial markets (for the distinction between securities 
other than shares and loans see 5.77. - 5.80.). 
5.52. All sectors and the rest of the world may hold securities other than shares as financial assets. 
They are liabilities predominantly of financial and non-financial corporations, central, state 
and local government, and the rest of the world. 
5.53. Category F.3 is divided into two sub-categories of financial transactions:^) 
securities other than shares, excluding financial derivatives (F.33) 
financial derivatives (F.34). 
Securities other than shares, excluding financial derivatives (F.33) 
5.54. Definition: The sub-category securities other than shares excluding financial derivatives 
(F.33) consists of all transactions in securities other than shares excluding 
financial derivatives (AF.33), that is securities other than shares which give the 
holder the unconditional right to a fixed or contractually determined variable 
money income in the form of coupon payments (interest) and/or a stated fixed 
sum on a specified date or dates or starting from a date fixed at the time of issue. 
5.55. Sub-category F.33 may be divided, when relevant, into two sub-positions of financial 
transactions: 
short-term securities other than shares, excluding financial derivatives (F.331) 
long-term securities other than shares, excluding financial derivatives (F.332). 
' ' The 1993 SNA (11.79, 11.80 and 11.81) recommends an optional subclassification of transactions in securities other than shares by 
maturity into short-term (T.31) and long-term (F.32). However, the 1993 SNA (11.82) provides for an additional optional 
subclassification of transactions in securities other than shares showing transactions in financial derivatives separately where they are 
important from the point of view of analysis and policy. This second option is adopted in the ESA. It also facilitates the linkage to the 
sub-category debt securities as defined in the 1993 Balance of Payments Manual, which divides debt securities into bonds, notes, 
money market instruments and financial derivatives. The codes F.31 and F.32 are not used in the ESA to avoid confusion with the 
1993 SNA codes. 
164 
Short-term securities other than shares, excluding financial derivatives (F.331) 
5.56. Definition: The sub-position short-term securities other than shares excluding financial 
derivatives (F.331) consists of all transactions in short-term securities other than 
shares excluding financial derivatives (AF.331) that is securities other than 
shares with a short-term original maturity (see 5.22.) except financial 
derivatives. 
5.57. Short-term securities other than financial derivatives are generally issued at a discount. 
5.58. Sub-position AF.331 includes: 
a) treasury bills and other short-term paper issued by general government, including those 
which are taken up by other monetary financial institutions to satisfy their compulsory 
reserve requirements; 
b) negotiable short-term paper issued by financial and by non-financial corporations. A 
variety of terms are used for such paper including: commercial paper, commercial bills, 
promissory notes, bills of trade, bills of exchange and certificates of deposit; 
c) short-term securities issued under long-term underwritten note issuance facilities 
(NIFs); 
d) bankers' acceptances (BAs). A BA involves the acceptance by financial corporations of 
drafts, commercial bills or bills of exchange issued by non-financial corporations and 
the unconditional promise to pay a specific amount at a specified date. The BA 
represents an unconditional financial claim on the part of the holder and an 
unconditional liability on the part of the accepting financial corporation. The financial 
corporation's counterpart transaction is a transaction in a short-term loan made by the 
financial corporation to its customer. For this reason it is recommended that BAs be 
treated as an actual liability of the accepting financial corporation and as a financial 
asset of the holder, even though no funds may have been exchanged. Flexibility in the 
application of this recommendation will be required to take national practices and 
variations in the nature of these instruments into account. 
5.59. Sub-position AF.331 does not include securities whose negotiability, while theoretically 
possible, is very restricted in practice and which are therefore classified in the sub-categories 
other deposits (AF.29) or short-term loans (AF.41) as appropriate (see 5.74. - 5.76.). 
Long-term securities other than shares, excluding financial derivatives (F.332) 
5.60. Definition: The sub-position long-term securities other than shares excluding financial 
derivatives (F.332) consists of all transactions in long-term securities other than 
shares excluding financial derivatives (AF.332) that is securities other than 
shares with a long-term original maturity (see 5.22.) except financial derivatives. 
5.61. Long-term securities are generally issued with coupons. 
- 165 
5.62. Sub-position AF.332 includes: 
a) bearer bonds; 
b) subordinated bonds, often referred to as subordinated debt; 
c) bonds with optional maturity dates, the latest of which is more than one year away; 
d) undated or perpetual bonds; 
e) floating rate notes (FRNs); 
f) index-linked securities, where the value of the principal is linked to a price index, the 
price of a commodity, or to an exchange rate index; 
g) deep-discount bonds and zero-coupon bonds; 
h) eurobonds. A bond issue that is placed simultaneously on the market of at least two 
countries and is denominated in a currency which need not be that of either, usually 
through international syndicates of financial corporations of several countries; 
i) privately issued bonds, that is bonds restricted by bilateral agreement to certain 
investors, if they are at least potentially transferable; if not, they are treated as long-term 
loans; 
j) loans that have become negotiable de facto. This should be interpreted to mean only if 
they are traded on an organized secondary market (see 5.79.); 
k) securities resulting from the conversion of loans. A conversion involves two financial 
transactions: the liquidation of the loan and the creation of the new securities; 
1) debentures and loan stock convertible into shares, whether shares of the issuing 
corporation or shares of another corporation, so long as they have not yet been 
converted. A conversion involves two financial transactions: the liquidation of the 
debenture or loan stock and the share issue. Where separable from the underlying bond, 
the conversion option should be regarded as a separate financial asset classified in the 
sub-category financial derivatives (AF.34) (see 5.67.a and 5.67.b); 
m) shares or stocks that pay a fixed income but do not provide for participation in the 
distribution of the residual value of a corporation on dissolution, including non 
participating preference shares. 
5.63. Sub-position AF.332 includes further financial assets issued as part of the securitization of 
loans, mortgages, credit card debt, accounts receivable and other assets. Sometimes the new 
security is issued as replacement for the original asset, which is effectively liquidated. 
Alternatively, the original asset is transferred to another institutional unit and the new 
securities replace the original asset on the original institutional unit's balance sheet. In this 
case the original asset should be recorded on the balance sheet of the new institutional unit 
that holds it. 
5.64. Sub-position F.332 does not include: 
transactions in securities as part of repurchase agreements. Repurchase agreements are 
classified in the sub-category other deposits (see 5.46.f) or in the category loans (see 
5.81 .d) depending on the institutional units involved. The stock lent or subject to 
repurchase does not change balance sheet and remains classified in AF.332; 
I 66 -
transactions in non-negotiable securities. They are classified in sub-category long-term 
loans; 
transactions in non-negotiable loans, including those which have been sold to a third 
party, but for which no organized secondary market exist (see 5.79.). 
Financial derivatives (F.34) 
5.65. Definition: The sub-category financial derivatives (F.34) consists of all transactions in 
financial derivatives (AF.34) that is financial assets based on or derived from a 
different underlying instrument. The underlying instrument is usually another 
financial asset, but may also be a commodity or an index. 
5.66. Financial derivatives are also referred to as secondary instruments and since risk avoidance is 
frequently a motivation for their creation, they are also referred to as hedging instruments. 
Only those secondary instruments, which have a market value because they are tradable or can 
be offset on the market, are financial assets in the System and are classified in the sub­
category AF.34 (see 5.05.). 
5.67. Sub-category AF.34 includes: 
a) options, tradable and over-the-counter (OTC). Options are contingent assets which give 
their holders the right, but not the obligation, to purchase from (in the case of a call 
option) or to sell to (in the case of a put option) the issuer of the option (the option 
writer) financial or non-financial assets (the underlying instrument) at a predetermined 
price (the strike price) within a given time span (American option) or on a given date 
(European option). The purchaser of the option pays a premium (the option price) for 
the commitment of the option writer to sell or to purchase the specified amount of the 
underlying asset or to provide, on demand of the purchaser, appropriate remuneration. 
By convention, that commitment is treated as a liability of the option writer because the 
option price represents the current cost to the option writer of buying out his contingent 
liability; 
b) warrants. They are a form of tradable options, which give their holders the right to 
purchase from the issuer of the warrant (usually a corporation) a certain number of 
shares or bonds under specified conditions for a designated period of time. There are 
also currency warrants, the value of which is based on the amount of one currency 
required to purchase another currency at or before the expiration date of the warrant and 
cross-currency warrants tied to third currencies. By convention, the issuer of the warrant 
is considered to have incurred a liability representing the current cost of buying out the 
issuer's contingent liability; 
c) futures, but only if they have a market value because they are tradable or can be offset. 
Futures are commitments to deliver, or to take delivery of, a specified quantity of a 
standard grade of a commodity, foreign exchange, or a security at a fixed price and for a 
specified delivery date or period. Futures may also be based on an index rather than a 
specific financial or non-financial asset; 
d) swaps, but only if they have a market value because they are tradable or can be offset. 
Swaps are contractual arrangements between two parties who agree to exchange, over 
time and according to predetermined rules, streams of payment on the same amount of 
indebtedness. The two most prevalent varieties are interest rate swaps and currency 
swaps. Interest rate swaps involve an exchange of interest payments of different 
167 
character, such as fixed rate for floating rate, two different floating rates, fixed rate in 
one currency and floating rate in another, etc. (see 4.47.). Currency swaps involve an 
exchange of specified amounts of two different currencies with subsequent repayments, 
which include both interest and repayment flows, over time according to predetermined 
rules; 
e) forward rate agreements (FRAs), but only if they have a market value because they are 
tradable or can be offset. FRAs are contractual arrangements in which two parties, in 
order to protect themselves against interest rate changes, agree on an interest rate to be 
paid, at a specified settlement date, on a notional amount of principal that is never 
exchanged. The payments are related to the difference between the agreed forward rate 
agreement rate and the prevailing market rate at the time of settlement. They are 
recorded as property income in the System (see 4.47.). 
5.68. Sub-category AF.34 does not include: 
the underlying instrument upon which the financial derivative is based; 
repayable margin payments related to financial derivatives. They are classified in other 
deposits (AF.29) (see 5.46.e) or loans (AF.4) (see 5.81.c) depending on the institutional 
units involved; 
secondary instruments, which are not tradable and cannot be offset on the market. 
LOANS (F.4) 
5.69. Definition: The category loans (F.4) consists of all transactions in loans (AF.4) that is 
financial assets created when creditors lend funds to debtors, either directly or 
through brokers, which are either evidenced by non-negotiable documents or not 
evidenced by documents. 
5.70. Generally loans are characterized by the following features: 
the conditions governing a loan are either fixed by the financial corporation granting the 
loan or negotiated by the lender and the borrower directly or through a broker; 
the initiative concerning a loan normally lies with the borrower; 
a loan is an unconditional debt to the creditor which has to be repaid at maturity and 
which is interest-bearing. 
5.71. Category F.4 may be divided, when relevant, into two sub-categories of financial transactions: 
short-term loans (F.41) 
long-term loans (F.42). 
Short-term loans (F.41) 
5.72. Definition: The sub-category short-term loans (F.41) consists of all transactions in short-
term loans (AF.41) that is loans with a short-term original maturity (see 5.22.) 
and loans repayable on demand. 
168-
Long-term loans (F.42) 
5.73. Definition: The sub-category long-term loans (F.42) consists of all transactions in long-term 
loans (AF.42) that is loans with a long-term original maturity (see 5.22.). 
5.74. The distinction between transactions in loans (F.4) and transactions in deposits (F.22, F.29) 
may often be based on the criterion who is taking the initiative for the transaction. In cases 
where the initiative is taken by a borrower, the transaction is to classify in the category loans. 
In cases where the initiative is taken by a lender, the transaction is to classify in one of the 
deposit sub-categories. However, the criterion of who is taking the initiative is often a matter 
of judgement. 
5.75. By convention, short-term loans granted to monetary financial institutions, resident or non­
resident, are normally classified in one of the deposit sub-categories (AF.22, AF.29), and 
short-term deposits accepted by institutional units other than monetary financial institutions, 
resident or non-resident, are normally classified in sub-category short-term loans (AF.41). 
Therefore, deposits are liabilities predominantly of resident and non-resident monetary 
financial institutions (see 5.44. and 5.49.), while monetary financial institutions have normally 
no short-term loan liabilities in the System. 
5.76. It might be useful analytically to allow for exceptions to the above conventions. Examples are 
savings deposits with general government and non-monetary gold swaps between monetary 
financial institutions (see 5.8l.e)(1). 
5.77. The distinction between transactions in loans (F.4) and transactions in securities other than 
shares (F.3) can be based on the degree of marketability of the financial assets and its 
implications. 
5.78. Security issues consist of a large number of identical documents, each evidencing a round 
sum, which together form the total amount borrowed. Compared with this, loans are 
evidenced in most cases by a single document and transactions in loans are carried out 
between one creditor and one debtor. In the case of syndicated loans, however, the loan is 
granted by several creditors. 
5.79. Secondary trade in loans exists. However, individual loans are only traded incidentally. In 
cases where a loan becomes negotiable on an organized market, it is to classify in the category 
securities other than shares. An explicit conversion of the original loan is normally involved 
(see 5.62J and 5.62.k). 
5.80. Standard loans are offered in most cases by financial corporations and they are often granted 
to households. The financial corporations determine the conditions and the households have 
only the choice either to accept or not to accept. Compared with this, the conditions of non­
standard loans are usually the result of negotiations between the creditor and the debtor. This 
is an important criterion which facilitates a distinction between non-standard loans and 
securities other than shares. In the case of public security issues, the issue conditions are 
determined by the borrower, possibly after consulting the bank/lead-manager. In the case of 
private security issues, however, the creditor and the debtor negotiate the issue conditions (see 
5.62.i). 
' ' Foreign exchange swaps between the central bank and other monetary financial institutions, that is a central bank acquires foreign 
exchange from an other monetary financial institutions in return for a deposit at the central bank and there is a commitment to reverse 
the transaction at a later date, are not classified in the category loans. This is a deviation from the 1993 SNA (11.33). 
169 
5.81. Category AF.4 includes: 
a) balances on current accounts, for example, intra-group balances between non-financial 
corporations and their non-resident subsidiaries, but excluding balances which are 
liabilities of monetary financial institutions classified in the deposit sub-categories; 
b) balances of employees because of participation in the corporation's profits; 
c) repayable margin payments related to financial derivatives which are liabilities of 
institutional units other than monetary financial institutions (see 5.46.e); 
d) short-term repurchase agreements (repos) which are liabilities of institutional units other 
than monetary financial institutions (see 5.46.f) and long-term repurchase agreements; 
e) loans arising from non-monetary gold swaps. These are arrangements involving the 
temporary exchange of non-monetary gold for deposits. Their economic nature is 
similar to that of a collateralized loan in that the purchaser of the gold is providing to the 
seller advances backed by the gold for the period of the arrangement and is receiving a 
return from the fixed price when the gold is repurchased; 
f) loans which are counterparts of bankers' acceptances (see 5.58.e); 
g) financial leasing and hire-purchase agreements^) ; 
h) loans to finance trade credits; 
i) mortgage loans; 
j) consumer credit; 
k) revolving credits; 
1) instalment loans; 
m) loans paid as a guarantee for fulfilling certain obligations. 
5.82. Category AF.4 includes further: 
a) Financial claims or liabilities arising from the medium-term financial assistance for 
Member States' balances of payments. The loans are administered by the EMI<2); 
b) Financial claims on the IMF evidenced by loans under the General Arrangements to 
Borrow or under special borrowing arrangements with members; 
Liabilities to the IMF evidenced by loans under the Structural Adjustment Facility, the 
Enhanced Structural Adjustment Facility, and the Trust Fund. 
5.83. Category AF.4 does not include: 
other accounts receivable/payable (AF.7), including trade credits and advances (AF.71); 
financial assets or liabilities arising from the ownership of immovable assets, such as 
land and structures, by non-residents. They are classified in sub-position other equity 
(AF.513) (see 5.95.f). 
^ ' See annex 2 on leasing and hire purchase of durable goods. 
' ' Article 6.1 third indent of the Protocol on the Statute of the European Monetary Institute annexed to the Treaty establishing the 
European Community. 
170 
5.84. Loans may be financial assets or liabilities of all sectors and the rest of the world. However, 
monetary financial institutions have normally no short-term loan liabilities in the System. 
5.85. The sub-categories short-term loans and long-term loans are not divided into sub-positions in 
the System. Nevertheless, it may be useful analytically to divide, in particular, long-term 
loans into consumer credit^), mortgage loans<2) and other loans. 
SHARES AND OTHER EQUITY (F.5) 
5.86. Definition: The category shares and other equity (F.5) consists of all transactions in shares 
and other equity (AF.5) that is financial assets which represent property rights on 
corporations or quasi-corporations. These financial assets generally entitle the 
holders to a share in the profits of the corporations or quasi-corporations and to a 
share in their own funds in the event of liquidation. 
5.87. Category F.5 is divided into two sub-categories of financial transactions: 
shares and other equity, excluding mutual funds shares (F.51) 
mutual funds shares (F.52). 
Shares and other equity, excluding mutual funds shares (F.51) 
5.88. Definition: The sub-category shares and other equity excluding mutual funds shares (F.51) 
consists of all transactions in shares and other equity excluding mutual funds 
shares (AF.51) that is financial assets except mutual fund shares which represent 
property rights on corporations or quasi-corporations. These financial assets 
generally entitle the holders to a share in the profits of the corporations or quasi-
corporations and to a share in their own funds in the event of liquidation. 
5.89. Sub-category F.51 may be divided, when relevant, into three sub-positions of financial 
transactions: 
quoted shares, excluding mutual funds shares (F.511) 
unquoted shares, excluding mutual funds shares (F.512) 
other equity (F.513). 
(2) Consumer credit are loans granted to households, which in the case of these transactions are acting for purposes outside their business 
and profession. Mortgage loans for financing house building or buying (amongst others bridging loans) are excluded. It is the intention 
that consumer credit relates exclusively to credits used for buying goods and/or services which are consumed bu the households 
individually. National practices might necessitate a somewhat different definition. 
Mortgage loans are long-term loans secured by a mortgage on a dwelling used by the borrower for its own accommodation. National 
practices might necessitate a somewhat different definition. 
- 171 
Quoted shares, excluding mutual funds shares (F.511), and unquoted shares, excluding 
mutual funds shares (F.512) 
5.90. Definition: The sub-position quoted shares excluding mutual funds shares (F.511) consists 
of all transactions in quoted shares excluding mutual funds shares (AF.511) and 
the sub-position unquoted shares excluding mutual funds shares (F.512) consists 
of all transactions in unquoted shares excluding mutual funds shares (AF.512). 
Shares cover beneficial interest in the capital of corporations in the form of 
securities which in principle are negotiable. Sub-position AF.511 covers those 
shares with prices quoted on a recognized stock exchange or other form of 
secondary market, and sub-position AF.512 covers those shares that are not 
quoted. 
5.91. Sub-positions AF.511 and AF.512 include: 
a) capital shares issued by limited liability companies: these are securities which give the 
holders the status of joint owners and entitle them both to a share in the total distributed 
profits and to a share in the net assets in the event of liquidation; 
b) redeemed shares in limited liability companies: these are shares whose capital has been 
repaid but which are retained by the holders who continue to be joint owners and to be 
entitled to a share in the profits left after dividends have been paid on the remaining 
registered capital and also to a share in any surplus which may be left on liquidation, i.e. 
the net assets less the remaining registered capital; 
c) dividend shares issued by limited liability companies: these are securities: 
- which, according to country and the circumstances in which they are created, have a 
variety of names such as founders' shares, profits shares, dividend shares, etc. and 
which are not part of the registered capital; 
- which do not give the holders the status of joint owners strictly speaking (the right to 
a share in the repayment of the registered capital, the right to a return on this capital, 
the right to vote at shareholders' meetings, etc.); 
- which entitle the holders to a proportion of any profits remaining after dividends 
have been paid on the registered capital and to a fraction of any surplus remaining on 
liquidation; 
d) preferred (preference) stocks or shares which provide for participation in the distribution 
of the residual value on dissolution of a corporation. These may be quoted or unquoted 
on a recognized exchange. 
5.92. Sub-positions AF.511 and AF.512 do not include: 
shares offered for sale but not taken up on issue. They are not recorded in the System; 
debentures and loan stock convertible into shares. They are shown in the accounts under 
sub-category AF.33 up to the time when they are converted (see 5.62.1); 
the equity of partners with unlimited liability (unlimited partners) in incorporated 
partnerships. They are classified in sub-position AF.513; 
172 
government investments in the capital of international organizations which are legally 
constituted as corporations with share capital. They are classified in sub-position 
AF.513 (see 5.95.c). 
5.93. Sub-positions F.511 and F.512 do not include issues of bonus shares that is the remittance of 
new shares to shareholders in proportion to their holdings. Such an issue, which changes 
neither the liability of the corporation vis-à-vis the shareholders nor the proportion of the 
assets that each shareholder holds in the corporation, does not constitute a financial 
transaction and is not recorded in the System (see 6.56.). The same applies for share split 
issues. 
Other equity (F.513) 
5.94. Definition: The sub-position other equity (F.513) consists of all transactions in other equity 
(AF.513) that is all forms of equity other than those classified in sub-positions 
AF.511 and AF.512, and in sub-category AF.52. 
5.95. Sub-position AF.513 includes: 
a) all forms of equity incorporations which are not shares: 
the equity in incorporated partnerships subscribed by unlimited partners; 
the equity in limited liability companies whose owners are partners and not 
shareholders; 
the capital invested in ordinary or limited partnerships recognized as 
independent legal entities; 
the capital invested in co-operative societies recognized as independent legal 
entities; 
b) investments by general government in the capital of public enterprises, whose capital is 
not divided into shares, which by virtue of special legislation are recognized as 
independent legal entities (see 2.16.c). These investments cover payments made by 
general govemment, which are intended to restructure the balance sheet of the public 
enterprise and thereby increase the financial assets of government on the public 
enterprise; 
c) government investments in the capital of international and supranational organizations, 
with the sole exception of the IMF, even if these are legally constituted as companies 
with share capital (e.g. the European Investment Bank); 
d) the financial resources of the EMI provided out of contributions by the national central 
banks<1); 
e) capital invested in financial and non-financial quasi-corporations (see 2.13.f). The 
amount of such investments corresponds to new investments (in cash or kind) less any 
capital withdrawals (see 4.61.); 
f) the financial assets that non-resident units have against notional resident units (see 
2.15.) and vice versa. 
(i) Article 16 2 of the Protocol on the Statute of the European Monetary Institute annexed to the Treaty establishing the European 
Communitv. 
- 173 
Mutual funds shares (F.52) 
5.96. Definition: The sub-category mutual funds shares (F.52) consists of all transactions in 
mutual funds shares (AF.52) that is shares issued by a specific type of financial 
corporation, whose exclusive purpose is to invest the funds collected on the 
money market, the capital market and/or in real estate. 
5.97. Sub-category AF.52 includes the shares issued by financial corporations called, according to 
country, mutual funds, unit trusts, undertakings for collective investment in transferable 
securities (UCITS), whether they are open-ended, semi-open or closed-end funds. These 
shares may be quoted or unquoted. When they are unquoted, they are usually repayable on 
request, at a value corresponding to their share in the own funds of the financial corporation. 
These own funds are revalued regularly on the basis of the market prices of their various 
components. 
INSURANCE TECHNICAL RESERVES (F.6)<1) 
5.98. Definition: The category insurance technical reserves (F.6) consists of all transactions in 
insurance technical reserves (AF.6) that is the technical provisions of insurance 
corporations and (autonomous and non-autonomous) pension funds against 
policy holders or beneficiaries as laid down in Council Directive 91/674/EEC of 
19 December 1991 on the annual accounts and consolidated accounts of 
insurance undertakings^). 
5.99. Category AF.6 covers: 
net equity of households in life insurance reserves 
net equity of households in pension funds reserves 
prepayments of insurance premiums 
reserves for outstanding claims. 
5.100. Insurance technical reserves are financial assets: 
for policy holders - in respect of net equity of households in life insurance reserves and 
in pension funds reserves, and prepayments of insurance premiums; 
for beneficiaries - in respect of reserves for outstanding claims. 
5.101. Insurance technical reserves are liabilities: 
of life or non-life insurance corporations and autonomous pension funds included in the 
sub-sector insurance corporations and pension funds (S.125); 
of non-autonomous pension funds included in the sectors of the institutional units that 
set them up. 
' ' See annex 3 on insurance for a description of the treatment of social insurance and other insurance in the System. 
*• ' Official Journal of the European Communities No L 374 of 31 December 1991, p. 7-31. 
174 -
Provisions or similar funds constituted by employers to provide employees with pensions 
(non-autonomous pension funds) are only included in category AF.6 if they are calculated 
according to actuarial criteria similar to those used by insurance corporations and autonomous 
pension funds. Otherwise, these provisions are covered by the shares or other equity issued by 
the institutional unit that sets up the provisions. 
5.102. Category AF.6 does not include provisions established by institutional units classified in the 
sub-sector social security funds (S.l314). In the System, these provisions are no liabilities of 
the social security funds sub-sector. 
5.103. Category F.6 is divided into two sub-categories of financial transactions: 
net equity of households in life insurance reserves and in pension funds reserves (F.61) 
prepayments of insurance premiums and reserves for outstanding claims (F.62). 
Net equity of households in life insurance reserves and in pension funds reserves (F.61) 
5.104. Definition: The sub-category net equity of households in life insurance reserves and in 
pension funds reserves (F.61) consists of all transactions in net equity of 
households in life insurance reserves and in pension funds reserves (AF.61) that 
is technical provisions set aside in the corporations and quasi-corporations 
concerned for the purpose of satisfying, once the established conditions are met, 
the claims and benefits foreseen. 
5.105. Sub-category F.61 is divided into two sub-positions of financial transactions: 
net equity of households in life insurance reserves (F.611) 
net equity of households in pension funds reserves (F.612). 
Net equity of households in life insurance reserves (F.611) 
5.106. Definition: The sub-position net equity of households in life insurance reserves (F.611) 
consists of all transactions in net equity of households in life insurance reserves 
(AF.611) that is technical provisions against outstanding risks and technical 
provisions for with-profit insurance that add to the value on maturity of with-
profit endowments or similar policies. 
5.107. Sub-position AF.611 includes life assurance provisions, provisions for bonuses and rebates 
and technical provisions for life-assurance policies where the investment risk is borne by the 
policyholders as defined in articles 27, 29 and 31 of Council Directive 91/674/EEC of 19 
December 1991 on the annual accounts and consolidated accounts of insurance undertakings. 
5.108. Transactions in net equity of households in life insurance reserves consist of additions less 
reductions, which are to be distinguished from nominal holding gains or losses on the funds 
invested by insurance corporations (see 6.57.): 
175 
Additions consist of: 
actual premiums earned during the current accounting period 
plus premium supplements corresponding to the income from the investment of the 
provisions, which is attributed to policy holding households 
less service charges for life insurance. 
Reductions consist of: 
amounts due to holders of endowment and similar insurance policies when they mature 
and amounts due to beneficiaries from deaths of insured persons 
plus payments due on policies that are surrendered before maturity. 
5.109. Life insurance reserves are financial assets of resident or non-resident households and 
liabilities of resident or non-resident insurance corporations. 
In the case of a group insurance taken out, for example, by a corporation on behalf of its 
employees, the employees, but not the employer, are deemed to be the creditors, since they are 
considered as the real policy holders. 
Net equity of households in pension funds reserves (F.612) 
5.110. Definition: The sub-position net equity of households in pension funds reserves (F.612) 
consists of all transactions in net equity of households in pension funds reserves 
(AF.612) that is technical provisions held by autonomous and non-autonomous 
pension funds established by employers and/or employees or groups of self-
employed to provide pensions for employees or self-employed. 
5.111. Transaction in net equity of households in pension funds reserves consist of additions less 
reductions, which are to be distinguished from nominal holding gains or losses on the funds 
invested by pension funds (see 6.57.): 
Additions consist of: 
actual contributions into pension funds payable by employees, employers, self-
employed or other institutional units on behalf of individuals or households with claims 
on the funds 
plus contribution supplements corresponding to the income earned from the investment 
of the provisions of the pension funds, which are attributed to participating households 
less service charges during the period for managing the funds. 
Reductions consist of: 
social benefits equal to die amounts payable to retired persons or their dependants in 
the form of regular payments or other benefits 
plus social benefits which consist of any lump sums payable to persons when they 
retire. 
176-
5.112. Transactions in net equity of households in pension funds reserves do not include funds 
transferred from non-autonomous pension funds to autonomous pension funds, classified in 
the sub-sector insurance corporations and pension funds (S.125), as a result of the conversion 
of one fund into another This event is.to be recorded in the category changes in sector 
classification and structure (K.12.1) of the other changes in the volume of assets account (see 
6.30.). 
5.113. Pension funds reserves are financial assets of resident or non-resident households but not 
financial assets of the institutional units that manage them. 
Prepayments of insurance premiums and reserves for outstanding claims (F.62) 
5.114. Definition: The sub-category prepayments of insurance premiums and reserves for 
outstanding claims (F.62) consists of all transactions in prepayments of 
insurance premiums and reserves for outstanding claims (AF.62) that is technical 
provisions established by insurance corporations and (autonomous and non-
autonomous) pension funds for 
the amount representing that part of gross premiums written which is to be 
allocated to the following accounting period (prepayments of insurance 
premiums); 
the total estimated ultimate cost of settling all claims arising from events 
which have occurred up to the end of the accounting period, whether 
reported or not, less amounts already paid in respect of such claims 
(provisions for outstanding claims). 
5.115. Prepayments of insurance premiums result from the fact that insurance premiums are, in 
general, due to be paid at the start of the period covered by the insurance, and this period does 
not normally coincide with the accounting period itself. Therefore, at the end of the 
accounting period when the balance sheet is drawn up, parts of the insurance premiums 
payable during the accounting period are intended to cover risks in the subsequent period. The 
prepayments of insurance premiums are determined on the basis of the proportion of the risks 
involved in relation to time for the period remaining to run until the contract expires. 
In the financial account, the prepayments of insurance premiums recorded between policy 
holders and insurance corporations consist of the premiums earned - those parts of the 
premiums that are payable in the current accounting period and that are intended to cover risks 
outstanding during the following period. 
5.116. The prepayments of insurance premiums are financial assets of the policy holders. If these 
prepayments relate to life insurance, the policy holders are resident or non-resident 
households. If they relate to non-life insurance, the policy holders may belong to any sector of 
the economy or to the rest of the world. The insurance premiums or social contributions paid 
by the policy holders may be taken as the criterion to distribute the prepayments of insurance 
premiums among the sectors of the economy and the rest of the world. 
5.117. Reserves for outstanding claims are hold by insurance corporations in order to cover the 
amounts they expect to pay out in respect of claims that are not yet settled, for example, 
because they are disputed. Valid claims accepted by insurance corporations are considered 
due for payment when the event that gives rise to the claim occurs - however long it takes to 
settle disputed claims. 
177-
(12) 
5.118. Reserves for outstanding claims are financial assets of the beneficiaries that may belong to 
any sector of the economy or to the rest of the world. 
5.119. Sub-category AF.62 includes provisions for unearned premiums, other technical provisions, 
claims outstanding and equalization provisions as defined in articles 25, 26, 28 and 30 of 
Council Directive 91/674/EEC of 19 December 1991 on the annual accounts and consolidated 
accounts of insurance undertakings. 
OTHER ACCOUNTS RECEIVABLE/PAYABLE (F.7) 
5.120. Definition: The category other accounts receivable/payable (F.7) consists of all transactions 
in other accounts receivable/payable (AF.7) that is financial claims which are 
created as a counterpart of a financial or a non-financial transaction in cases 
where there is a timing difference between this transaction and the corresponding 
payment. 
5.121. Category F.7 includes transactions in financial claims which stem from the early or late 
payment for transactions in goods or services, distributive transactions or secondary trade in 
financial assets. They consist of the counterpart transactions in case payment is due and not 
yet paid. Debts arising from income accruing over time and arrears are also classified under 
this category. 
5.122. Category F.7 does not include: 
statistical discrepancies other than timing differences between transactions in goods and 
services, distributive transactions or financial transactions and the corresponding 
payments; 
items about which there is not enough information for them to be classified. The 
classification should be based on whatever information is available; 
items about whose nature nothing whatsoever is known; 
the miscellaneous item of the balance of payments described as net errors and 
omissions; 
early or late payment (inclusive of arrears) in case of the creation of financial assets or 
the redemption of liabilities other than classified in category F.7. They remain classified 
in their category. 
5.123. Category F.7 is divided into two sub-categories of financial transactions: 
trade credits and advances (F.71) 
other accounts receivable/payable, excluding trade credits and advances (F.79). 
Trade credits and advances (F.71) 
5.124. Definition: The sub-category trade credits and advances (F.71) consists of all transactions in 
trade credits and advances (AF.71) that is financial claims arising from the direct 
extension of credit by suppliers and buyers for goods and services transactions 
and advance payments for work that is in progress or to be undertaken and 
associated with such transactions. 
178 
5.125. Sub-category AF.71 includes: 
a) financial claims relating to the delivery of goods or services where payment has not 
taken place; 
b) trade credit accepted by factoring corporations except when regarded as a loan; 
c) rent of buildings accruing over time; 
d) arrears concerning the payment of goods and services, when not evidenced by a loan. 
5.126. Sub-category AF.71 does not include loans to finance trade credits. They are classified in 
category AF.4 (see 5.81.h). 
5.127. Trade credits and advances may be financial assets or liabilities of all sectors and the rest of 
the world. 
Other accounts receivable/payable, excluding trade credits and advances (F.79) 
5.128. Definition: The sub-category other accounts receivable/payable excluding trade credits and 
advances (F.79) consists of all transactions in other accounts receivable/payable 
excluding trade credits and advances (AF.79) that is financial claims which arise 
from timing differences between distributive transactions or financial 
transactions on the secondary market and the corresponding payment. It includes 
also financial claims due to income accruing over time. 
5.129. Sub-category AF.79 includes financial claims created as a result of the timing difference 
between accrued transactions and payments made in respect of, for example: 
a) taxes; 
b) social contributions; 
c) wages and salaries; 
d) rents on land and subsoil assets; 
e) dividends; 
f) interest; 
g) transactions in financial assets on the secondary market. 
5.130. Preferably, the counterpart financial transaction of interest accruing on financial assets (see 
5.17.) should be recorded as being reinvested in that financial asset. The recording of interest 
will, however, have to follow national practices. If the interest accrual is not recorded as being 
reinvested in the financial asset, it should be classified in sub-category F.79. 
5.131. At the date due for payment of interest, two financial transactions are recorded (see 5.17.): 
firstly, in the event of payment, a transaction in the financial asset used for payment, or, in the 
event of non-payment, an increase of interest arrears to be recorded in sub-category F.79; 
secondly, the counterpart financial transaction reducing the net financial claim of the creditor 
against the debtor. 
-179 
MEMORANDUM ITEM: DIRECT FOREIGN INVESTMENT (F.m) 
5.132. Definition: Direct foreign investment (F.m) consists of all transactions in direct foreign 
investment (AF.m) that is investment involving a long-term relationship 
reflecting a lasting interest of a resident institutional unit in one economy 
("direct investor") in an institutional unit resident in an economy other than that 
of the investor ("direct investment enterprise"). The direct investor's purpose is 
to exert a significant degree of influence on the management of the enterprise 
resident in the other economy. Direct investment involves both the initial 
transaction between the direct investor and the direct investment enterprise and 
all subsequent capital transactions between them and among affiliated 
enterprises, both incorporated and unincorporated*1). 
5.133. Transactions in financial assets and liabilities that constitute direct foreign investment are to 
be recorded under the appropriate categories of financial transactions, i.e. loans (F.4), shares 
and other equity (F.5) and other accounts receivable/payable (F.7). However, the amounts of 
direct foreign investment included within each of those categories should also be recorded 
separately as a memorandum item. 
ACCOUNTING RULES FOR FINANCIAL TRANSACTIONS 
Valuation 
5.134. Financial transactions are recorded at the transaction value that is the value in national 
currency at which the financial assets and/or liabilities involved are created, liquidated, 
exchanged or assumed between institutional units, or between them and the rest of the world, 
on the basis of commercial considerations only. 
5.135. Financial transactions and their financial or non-financial counterpart transactions are 
recorded at the same transaction value. Three possibilities can be envisaged: 
a) the financial transaction is a transaction in means of payment in national currency (see 
5.04. and 5.23.): The transaction value is equal to the amount of the means of payment 
exchanged; 
b) the financial transactions is a transaction in means of payment in foreign currency (see 
5.04. and 5.23.) and the counterpart transaction is not a transaction in means of 
payment in national currency: The transaction value is equal to the amount of the 
means of payment exchanged converted into national currency applying the market rate 
prevailing when the payment takes place; 
c) neither the financial transactions nor its counterpart transaction is a transaction in 
means of payment (see 5.04.): The transaction value is identified with the current 
market value of the financial assets and/or liabilities involved. 
' ' OECD benchmark definition of foreign direct investment, 3rd edition. 
180 
5.136. The transaction value refers to a specific financial transaction and its counterpart transaction. 
In concept, the transaction value is to be clearly distinguished from a value based on a price 
quoted in the market, a fair market price, or any price that is intended to express the generality 
of prices for a class of similar or even identical financial assets and/or liabilities. However, in 
cases where the counterpart transaction of a financial transaction is, for example, a transfer 
and therefore the financial transaction is undertaken other than for purely commercial 
considerations, the transaction value is identified with the current market value of the 
financial assets and/or liabilities involved. 
5.137. The transaction value does not include service charges, fees, commissions, and similar 
payments for services provided in carrying out the transactions; these are to be recorded as 
payments for services. Taxes on financial transactions are also excluded and treated as taxes 
on services within taxes on products. When a financial transaction involves a new issue of 
liabilities, the transaction value is equal to the amount of the liability incurred exclusive of 
any prepaid interest. Similarly, when a liability is extinguished, the transaction value for both 
creditor and debtor must correspond to the reduction of the liability. 
Special valuation criteria for some sub-categories of financial transactions 
5.138. Securities other than shares, excluding financial derivatives (F.33) 
a) When securities are marketed by issuers through underwriters or other intermediaries 
and then sold at higher prices to final investors, the financial assets and liabilities are to 
be recorded at the values paid by the investors. The differences between the amounts 
paid by the investors and those received by the issuers should be treated as service 
payments paid by the issuers to the underwriters; 
b) Security issues are recorded at the issue value. When securities are issued at a discount 
or at a premium, the proceeds to the issuer at the time of sale, and not the face value, is 
recorded in the accounts as the actual issue value. The difference between the issue 
value and the redemption value is treated as interest that is accrued over the life of the 
security; 
c) Deep-discount or zero-coupon bonds should be treated as securities issued at a discount. 
The interest is accrued over the life of the bonds and treated as being reinvested in such 
bonds (see 4.46.); 
d) When long-term securities are issued at a discount, which is not significant, the 
difference between the issue value and the redemption value can be imputed at the date 
of issue; 
e) In case of securities where the value of the principal is linked to a price index, the price 
of a commodity or an exchange rate index, the issue price of the security is recorded as 
the principal and the index payment paid periodically and/or at maturity is treated as 
interest that is accrued over the life of the security, and the counterpart is recorded as 
reinvestment in securities other than shares in the financial account; 
f) Investment in securities in circulation on the secondary market is recorded at the stock 
exchange quotation or market price; 
g) Securities which have reached maturity are recorded at redemption value, which 
includes redemption premiums but excludes payments by lottery and savings premiums, 
which are recorded as interest; 
- 181 
h) The conversion of bonds into shares should be treated as a sale of bonds and a purchase 
of shares (see 5.62.1). The transaction value is to be derived from the market value of the 
bonds disposed of, possibly implying a holding gain or loss on shares to be recorded in 
the revaluation account (see 6.54.). 
5.139. Financial derivatives (F.34) 
a) Secondary trade in options and closing out options prior to delivery involve financial 
transactions. If an option proceeds to delivery, it may be exercised or not exercised. In 
cases where the option is exercised, there may be a payment from the option writer to 
the option holder equal to the difference between the prevailing market price of the 
underlying asset and the strike price, or, alternatively, there may be the acquisition or 
sale of the underlying financial or non-financial asset recorded at the prevailing market 
price and a counterpart payment between the option holder and the option writer equal 
to the strike price. The difference between the prevailing market price of the underlying 
asset and the strike price is in both cases equal to the liquidation value of the option, 
that is the option price at delivery. In cases where the option is not exercised, no 
transaction takes place. However, the option writer makes a holding gain and the option 
holder makes a holding loss to be recorded in the revaluation account; 
b) Financial derivatives other than options typically involve contracts where two parties 
agree to exchange specified assets, either real or financial, at some future point or 
points in time. The transactions which are to be recorded against such financial 
derivatives include any trading in the contracts as well as the net value of settlements 
made. There may also be the need to record transactions associated with the 
establishment of derivative contracts. However, in many cases, the two parties will 
enter into a derivative contract without any payment by one party to the other; in these 
cases the value of the transaction establishing the contract is nil and no entry is actually 
required in the financial account; 
c) Any explicit commissions paid to or received from brokers or other intermediaries for 
arranging options, futures, swaps, and other derivatives contracts are treated as 
payments for services in the appropriate accounts. Streams of interest payments 
resulting from swap arrangements are to be recorded as property income and 
repayments of principal are to be recorded in the financial account. The parties to a 
swap are not considered to be providing a service to each other, but any payment to a 
third party for arranging the swap should be treated as payment for a service (see 4.47.). 
While the premium paid to the seller of an option can conceptually be considered to 
include a service charge, in practice, it is usually not possible to distinguish the service 
element. Therefore, the full price is to be recorded as acquisition of a financial asset by 
the buyer and as incurrence of a liability by the seller. 
182 
5.140. Shares and other equity, excluding mutual funds shares (F.51) 
a) New shares are recorded at issue value, which normally corresponds to nominal value 
plus the issue premium; 
b) Transactions in shares in circulation are to be recorded at their transaction value. When 
it is not known, it may be approximated by the stock exchange quotation or market 
price for quoted shares and by the book value for unquoted shares; 
c) Scrip dividend shares are valued at the price implied by the issuer's dividend proposal; 
d) Issues of bonus shares are not recorded in the System (see 5.93.). However, in cases 
where the issue of bonus shares involves changes in the total market value of the shares 
of a corporation, the changes are to be recorded in the revaluation account (see 6.56.). 
e) The transaction value of other equity (F.513) is the amount of funds transferred by the 
owners to their corporations or quasi-corporations. In some cases, funds can be 
transferred by assuming liabilities of the corporation or quasi-corporation. 
5.141. Mutual funds shares (F.52) 
a) Transactions in mutual funds shares include the value of net contributions to a fund; 
b) Property income received by mutual funds, net of a part of management costs, and 
assigned to shareholders, even though it is not distributed, have a counterpart entry in 
the financial account under mutual funds shares. The effect is that property income is 
reinvested. 
Time of recording 
5.142. Financial transactions and their counterpart transactions are to be recorded at the same point 
in time. 
5.143. When the counterpart of a financial transaction is a non-financial transaction, both are 
recorded at the time the non-financial transaction takes place. For example, when sales of 
goods or services give rise to a trade credit, this financial transaction is to be recorded when 
the entries are made in the relevant non-financial account. 
5.144. When the counterpart of a financial transaction is also a financial transaction, three 
possibilities can be envisaged: 
a) both financial transactions are transactions in means of payment (see 5.04.): They are 
recorded at the time the first payment is made; 
b) only one of the two financial transactions is a transaction in means of payment (see 
5.04.): They are recorded at the time payment is made; 
c) neither of the two financial transactions is a transaction in means of payment (see 
5.04.): They are recorded at the time the first financial transaction takes place. 
183-
Compiling financial transactions from changes in balance sheets 
5.145. In cases where basic statistics on financial transactions are not available, financial transactions 
may be compiled based on changes in financial balance sheets, that is changes in the amount 
of financial assets held and liabilities outstanding between the closing balance sheet and the 
opening balance sheet. The difference between the amount of financial transactions and the 
changes in financial balance sheets consists of entries in the revaluation account and the other 
changes in the volume of assets account. 
-184-
ANNEX 
LINK WITH MEASURES OF MONEY 
5.146. This annex explains a method which allows to show measures of money in the balance 
sheets and the financial accounts. 
5.147. The definitions of the measures of money applied vary among countries and in time. In 
addition, these definitions are not necessarily based on the classification of financial assets 
and the classification of sectors as defined in the System. Therefore, measures of money are 
not defined in the System. 
5.148. The following problems appear by integrating measures of money in the balance sheets and 
the financial accounts. Firstly, the measures of money may be composed of components 
which do not correspond with the classes, that is to say the categories, sub-categories and 
sub-positions, of financial assets as defined in the System. For example, a measure of money 
may include only a sub-class of the category currency and deposits (AF.2). The sub-class 
may be defined by a reference to maturity and/or by a reference to the institutional units 
holding or issuing currency and deposits. Secondly, the measures of money may imply 
money-creating, money-holding and money-neutral sectors which cannot be composed of 
the sectors and sub-sectors as defined in the System. Thirdly, the data sources used for 
compiling monetary aggregates may in practice differ from the data sources used for 
compiling the balance sheets and the financial accounts of the sectors and the rest of the 
world. 
5.149. In order to identify a measure of money MX in the balance sheets or the financial accounts, 
it may be necessary to subdivide any class i of financial assets and liabilities defined in the 
System into two sub-classes: 
MXJ: sub-class of financial assets (liabilities) classified in class i and included in the 
measure of money MX; 
MX_J: sub-class of financial assets (liabilities) classified in class i but not included in 
the measure of money MX. 
In practice, some classes of financial assets (liabilities) do not contribute even to broad 
measures of money, for example, monetary gold and SDRs (AF.l) or insurance technical 
reserves (AF.6). Therefore, MXi and MXg would be zero, that is to say a breakdown of 
AF.l in MXj and MX.j or of AF.6 in MX^ and MX_g is not necessary. 
5.150. The measure of money MX is equal to the sum of all sub-classes of financial assets MXj of 
the money-holding sectors and MX is equal to the sum of all sub-classes of liabilities MXj 
of the money-creating sectors. 
5.151. A main advantage of this method is its flexibility. In cases where the definition of a measure 
of money is changed, only the breakdowns of some classes of financial assets and liabilities 
into MXj an(^ MX_j have to be adapted. 
- 185-
Measures of money in the balance sheets or the financial accounts 
FINANCIAL ASSETS OF MONEY-HOLDING SECTORS 
Total Households Non-financial 
corporations LIABILITIES OF MONEY-CREATING SECTORS 
Monetary financial 
institutions Rest of the world Total 
AF.1 
AF.2 
of which MX, 
MX-2 
AF.3 
AF.33 
of which MXr 
MX-, 
AF.34 
of which MX»\ 
MX.» 
AF.4 
AF.41 
ofwhich \MX}, 
AF.42 
ofwhich MX* 
MX^ 
AF.5 
AF.51 
ofwhich MX, 
MX-
AF.52 
ofwhich \MX» 
MX-n 
AF.6 
AF.7 
AF.71 
ofwhich MXv 
MX-n 
AF.79 
Total of financial 
assets and liabilities 
ofwhich \MX\ 
CHAPTER VI 
OTHER FLOWS 
187-
6.01. Other flows cover consumption of fixed capital (K.l), acquisitions and disposals of non-
financial non-produced assets (K.2) and other changes in assets (K.3 - K.l2). 
The other changes in assets consist of different kinds of changes in assets, liabilities and 
net worth which are not the result of transactions being recorded in the capital and financial 
accounts. They cover other changes in volume (K.3 - K.10 and K. 12) and also holding 
gains and losses (K.l 1). 
Consumption of fixed capital (K.l) 
6.02. Definition: Consumption of fixed capital (K.l) represents the amount of fixed assets used 
up, during the period under consideration, as a result of normal wear and tear 
and foreseeable obsolescence, including a provision for losses of fixed assets as 
a result of accidental damage which can be insured against. 
6.03. Consumption of fixed capital must be calculated for all fixed assets, including both 
tangible fixed assets and intangible fixed assets such as mineral exploration costs and 
software, major improvements to non-produced assets and costs of ownership transfers 
associated with non-produced assets. 
6.04. Consumption of fixed capital (which should be distinguished from the depreciation 
allowed for tax purposes or the depreciation shown in business accounts) should be 
estimated on the basis of the stock of fixed assets and the probable average economic life 
of the different categories of those goods. For the calculation of the stock of fixed assets, 
the perpetual inventory method is recommended whenever direct information on the stock 
of fixed assets is missing. The stock of fixed assets should be valued at the purchasers' 
prices of the current period. 
Losses of fixed assets occurring as a result of accidental damage which can be insured 
against are taken into account in calculating the average service life of the goods in 
question. For the economy as a whole the actual normal accidental damage within a given 
accounting period may be expected to be equal, or close, to the average. However, for 
individual units and groupings of units actual normal and average accidental damage may 
differ. In this case, for sectors, any difference is recorded as other changes in volume of 
fixed assets. 
Consumption of fixed capital is calculated according to the "straight line" method, by 
which the value of a fixed asset is written off at a constant rate over the whole lifetime of 
the good. 
However, depending on the pattern of decline in the efficiency of a fixed asset the 
calculation of consumption of fixed capital according to the geometric depreciation method 
may be required. 
6.05. In the system of accounts consumption of fixed capital is recorded below each balancing 
item, which is shown gross and net . Recording "gross" means without deducting 
consumption of fixed capital, while recording "net" means after deducting consumption of 
fixed capital. 
188 -
Acquisitions less disposais of non-financial non-produced assets (K.2) 
6.06. Definition: Non-financial non-produced assets^) consist of land and other tangible non-
produced assets that may be used in the production of goods and services, and 
intangible non-produced assets. 
6.07. Land is defined as the ground itself, including soil covering and associated surface waterO). 
The associated surface water includes any inland waters - reservoirs, lakes, rivers, etc. -
over which ownership rights can be exercised. 
6.08. The following items are not included in land: 
a) buildings or other structures on the land or through it - roads, tunnels, etc.; 
b) vineyards, orchards, or other plantations of trees and any growing crops, etc.; 
c) subsoil assets; 
d) non-cultivated biological resources; 
e) water resources below the ground. 
Items a) et b) are produced fixed assets, items c), d) and e) belong to tangible non-produced 
assets. 
6.09. Acquisitions and disposals of land are valued at current market prices prevailing at the time 
the acquisitions/disposals occur. Transactions with land are recorded at the same value 
both in the accounts of the purchaser and in those of the seller. This value excludes the 
costs involved in the transfer of ownership of land, which are treated as gross fixed capital 
formation. 
6.10. Acquisitions and disposals of other tangible non-produced assets cover subsoil assets, non-
cultivated biological resources and water resources. Subsoil assets include coal, oil and 
natural gas reserves, metallic mineral reserves and non-metallic mineral reserves^). 
6.11. Acquisitions and disposals of other tangible non-produced assets are valued at current 
market prices prevailing at the time the acquisitions/disposals occur. Acquisitions and 
disposals exclude the associated costs of ownership transfer. The latter are recorded as 
gross fixed capital formation. 
6.12. Intangible non-financial non-produced assets consist of patented entities, leases or other 
transferable contracts, purchased goodwill and other intangible non-produced assets. Such 
leases are on land, subsoil assets and residential and non-residential buildings^). Further 
examples include transferable contracts with athletes and authors. The value of the 
acquisitions or disposals of leases or other transferable contracts consists of payments 
made to the original or subsequent tenants or lessees when the leases or concessions are 
sold or transferred to other institutional units. The value of acquisitions and disposals of 
intangible non-produced assets excludes the associated costs of ownership transfer. The 
costs of ownership transfer are a component of gross fixed capital formation. 
6.13. Acquisitions less disposals of non-financial non-produced assets are recorded in the capital 
account of the sectors, the total economy and the rest of the world. 
(i) for the definition of assets see Annex 1 to chapter VII. 
Other changes in assets (K.3 - K.12) 
6.14. Definition: Other changes in assets are flows which are not the result of transactions 
recorded in the capital and financial accounts. Two kinds of other changes are 
distinguished. The first kind consists of changes in the volume of assets. The 
second consists of changes in the value of assets, liabilities and net worth due 
to changes in the level and structure of prices leading to holding gains or 
losses. 
Other changes in volume (K.3 - K.10 and K.12) 
6.15. Other changes in volume are flows with different functions. One important function is to 
allow certain assets to enter and leave the System in the normal course of events - e.g. 
entrances and exits of naturally occurring assets. This is important for recording the 
discovery, depletion and degradation of natural assets. A second function is to record the 
effect of exceptional, unanticipated events that affect the economic benefits derivable from 
assets. 
6.16. The other changes in volume cover nine categories: 
Economic appearance of non-produced assets (K.3) 
Economic appearance of produced assets (K.4) 
Natural growth of non-cultivated biological resources (K.5) 
Economic disappearance of non-produced assets (K.6) 
Catastrophic losses (K.7) 
Uncompensated seizures (K.8) 
Other volume changes in non-financial assets n.e.c. (K.9) 
Other volume changes in financial assets and liabilities n.e.c. (K.10) 
Changes in classifications and structure (K.12). 
Economic appearance of non-produced assets (K.3) 
6.17. Economic appearance of non-financial non-produced assets (K.3) represents the increase in 
the volume of this kind of assets that is not the result of production. 
Included are: 
a) gross increases in the level of exploitable subsoil resources: proven reserves of coal, 
oil, natural gas, metallic minerals or non-metallic minerals that are economically 
exploitable. This also covers the increase in reserves for which exploitation becomes 
economic as a result of technological progress or relative price changes. 
b) transfers of other natural assets to economic activity: naturally occurring entities that 
change status to qualify as economic assets, economic assets being entities over which 
ownership rights are enforced by institutional units and from which economic benefits 
may be derived by their owners (e.g. exploitation of virgin forests, transfer of land 
from a wild or waste state to land that can be put to economic use, land reclamation). 
- 190 
c) quality changes in non-produced assets due to changes in economic uses. Changes in 
quality are treated as changes in volume. The quality changes recorded here occur as 
the counterpart of the changés in economic use that are shown as changes in 
classification (see 6.32.) - e.g. from cultivated land to land underlying buildings. 
d) appearance of intangible non-produced assets. Intangible non-financial non-produced 
assets arise when entities are patented or transferable contracts are written. Also when 
enterprises are sold at prices that exceed their own funds (see 7.05.), the excess of 
purchase price over own funds is the asset "purchased goodwill". Goodwill not 
evidenced by a sale/purchase is not considered as an economic asset. 
Economic appearance of produced assets (K.4) 
6.18. Economic appearance of produced assets (K.4) occurs in the case of goods that are not 
already recorded in the Balance Sheets. It is the recognition of a significant or special value 
that is considered an economic appearance to be recorded under other changes in volume. 
Economic appearance of produced assets includes: 
a) valuables, such as precious stones and art objects, when the high value or artistic 
significance of an object not already recorded in the Balance Sheets is first recognized; 
b) historic monuments,when the special archeological, historical or cultural significance 
of a structure or site not already recorded in the Balance Sheets is first recognized. 
Natural growth of non-cultivated biological resources (K.5) 
6.19. Natural growth of non-cultivated biological resources (K.5) is not under the direct control, 
responsibility and management of an institutional unit and thus is not production. The 
increment in these economic assets such as standing natural timber, or fish in the estuaries, 
must then be regarded as an economic appearance. 
6.20. Natural growth should be recorded as an addition (K.5) ; the depletion of these resources 
should be recorded as an economic disappearance (K.61). In practice, however, natural 
growth can only be recorded net because the physical measurements that are likely to be 
the only basis available for the recording are, in effect, net measurements. 
Economic disappearance of non-produced assets (K.6) 
6.21. Economic disappearance of non-financial non-produced assets (K.6) includes: 
a) depletion of natural economic assets (K.61), which covers the reduction of deposits of 
subsoil assets and the depletion of non-cultivated biological resources included in the 
asset boundary (see 6.19.); 
b) other economic disappearance of non-produced assets (K.62): 
other reductions in the level of exploitable subsoil resources (reassessments of 
exploitability due to changes in technology or relative prices), 
quality change in non-produced assets due to changes in economic uses, 
191 
degradation of non-produced assets due to economic activity. Covered is 
degradation of land, water resources and in principle of other natural assets, 
write-off of purchased goodwill, cancellation of transferable contracts and 
exhaustion of patent protection. 
Catastrophic losses (K.7) 
6.22. Catastrophic losses (K.7) recorded as other changes in the volume of assets are the result of 
large-scale, discrete and recognizable events that may destroy items within any of the 
categories of economic (non-financial or financial) assets. 
6.23. Such events include major earthquakes, volcanic eruptions, tidal waves, exceptionally 
severe hurricanes, drought and other natural disasters ; acts of war, riots and other political 
events ; and technological accidents such as major toxic spills or release of radioactive 
particles into the air. 
Included here are in particular: 
a) deterioration in the quality of land caused by abnormal flooding or wind damage; 
b) destruction of cultivated assets by drought or outbreak of disease; 
c) destruction of buildings, equipment or valuables in forest fires or earthquakes; 
d) accidental destruction of currency or bearer securities as a result of natural 
catastrophes or political events. 
Uncompensated seizures (K.8) 
6.24. Uncompensated seizures (K.8) occur when governments or other institutional units take 
possession of the assets of other institutional units, including non-resident units, without 
full compensation, for reasons other than the payment of taxes, fines or similar levies. The 
uncompensated part of such unilateral seizures is not a capital transfer recorded in the 
capital account. 
Other volume changes in non-financial assets n.e.c. (K.9) 
6.25. Under other volume changes in non-financial assets (K.9) are recorded the effects of 
unexpected events on the economic benefits derivable from assets. 
Included are: 
a) unforeseen obsolescence. Consumption of fixed capital does not cover unforeseen 
obsolescence in fixed assets, and the amount included for their normally expected 
obsolescence may fall short of the actual obsolescence. Entries must, therefore, be 
made for the decline in the value of the fixed assets resulting from the introduction of 
improved technology. 
b) differences between allowances included in consumption of fixed capital for normal 
damage and actual losses. Consumption of fixed capital does not cover unforeseen 
damage, and the amount included for their normally expected damage may fall short 
(or exceed) the actual damage. Adjustments must therefore be made for the unforeseen 
decline (or increase) in the value of the fixed assets due to these events. 
192 
c) degradation of fixed assets not accounted for in consumption of fixed capital: decline 
in the value of fixed assets from, for example, the unforeseen effects of acidity in air 
and rain on building surfaces or vehicle bodies. 
d) abandonment of production facilities before completion or being brought into 
economic use. 
e) exceptional losses in inventories (e.g. from fire damage, from robberies, from insect 
infestation of grain stores). 
f) statistical discrepancies concerning non-financial assets between the closing balance 
sheet and the corresponding opening balance sheet. 
Other volume changes in financial assets and liabilities n.e.c. (K.10) 
6.26. Any changes in financial assets and liabilities that are not due to financial transactions 
recorded in the financial account, that are not attributed to holding gains and losses 
recorded in the revaluation account, that are not changes in classifications and structure and 
that are not due to catastrophic losses and uncompensated seizures are to be recorded here. 
6.27. Category K.10 includes: 
a) allocations and cancellations of SDRs (AF.12) (see 5.33.-5.35.): For SDRs not even a 
notional liability exists. Therefore, the mechanism by which SDRs are created 
(referred to as allocations of SDRs) and extinguished (cancellations of SDRs) is not 
treated as one that gives rise to transactions but rather to entries in the other changes in 
the volume of assets account. Allocations of SDRs increase the financial assets of the 
monetary authorities, cancellations of SDRs decrease their financial assets. 
b) Other volume changes related to defined benefit pension funds: Defined benefit 
pension schemes are those in which the level of pension benefits promised to 
participating employees is guaranteed. Benefits are related by some formula to 
participants' length of service and salary and are not totally dependent on the assets in 
the fund. For defined benefit schemes, an entry in the other changes in the volume of 
assets account captures changes in the actuarially determined liability that result from 
changes in benefits structure, which are to be distinguished from changes in the age 
and service composition of the beneficiary pool. Examples of changes in benefit 
structure include changes in the formula, reductions in the pensionable age, or funding 
for an annual increase (usually defined as constant x per cent year) in future pensions 
or in all pensions in the course of payment. 
c) exceptional losses of currency or bearer securities because of, e.g., fire damage or 
theft. 
d) writing-off or writing-down of bad debts by creditors: Unilateral recognition by a 
creditor that a financial asset can no longer be collected, due to bankruptcy or other 
factors, and the consequent removal by the creditor of that financial asset from his 
balance sheet should be accounted for here, along with the removal of the counterpart 
liability of the debtor. However, in cases where the debtor institutional unit is 
controlled by the creditor, the writing-off or writing-down of debt by the creditor, not 
due to bankruptcy, is recorded in the accumulation accounts. 
e) statistical discrepancies concerning financial assets and liabilities between the closing 
balance sheet and the corresponding opening balance sheet. 
193 
(13) 
6.28. Category K.10 does not include: 
cancellation of debt by mutual agreement between debtor and creditor (debt 
cancellation or debt forgiveness): it is treated as a transaction between the creditor and 
the debtor and the counterpart transaction is an extinction of the financial asset and the 
counterpart liability in the financial account (see 5,16.). 
debt repudiation: the unilateral cancellation of a liability by a debtor is not recognized 
in the System. 
Changes in classifications and structure (K.12) 
6.29. Changes in classifications and structure (K.12) comprise changes in sector classification 
and structure of institutional units (K.l2.1) and changes in classification of assets and 
liabilities (K. 12.2). 
Changes in sector classification and structure (K.12.1) 
6.30. Reclassifying an institutional unit from one sector to another transfers its entire balance 
sheet, e.g. an institutional unit classified in the household sector becomes a quasi-
corporation to be reclassified in the corporations sector. 
Changes in structure of institutional units cover appearance and disappearance of certain 
financial assets and liabilities arising from corporate restructuring. When a corporation 
disappears as an independent legal entity because it is absorbed by one or more 
corporations, all financial assets/liabilities including shares and other equity that existed 
between that corporation and those that absorbed it, disappear from the System. However, 
the purchase of shares and other equity of a corporation as part of a merger is to be 
recorded as a financial transaction between the purchasing corporation and the previous 
owner. Replacement of existing shares by shares in the takeover or new corporation are to 
be recorded as redemptions of shares accompanied by the issue of new shares. Financial 
assets/liabilities that existed between the absorbed corporation and third parties remain 
unchanged and pass to the absorbing corporation(s). 
Symmetrically, when a corporation is legally split up into two or more institutional units, 
new financial assets and liabilities (appearance of financial assets) are recorded in this 
category (K.12.1). 
Changes in classification of assets and liabilities (K12.2) 
6.31. Category K. 12.2 distinguishes monetization/demonetization of gold (K. 12.21 ) and changes 
in classification of assets or liabilities other than monetization /demonetization of gold 
(K.12.22). 
6.32. Monetization/demonetization of gold (K. 12.21) is recorded in the other changes in the 
volume of assets account of the monetary authorities, that is to say in the sub-sector the 
central bank (S.121) or central government (S.1311). 
194 
Monetization of gold occurs when the monetary authorities reclassify gold from stocks of 
valuables to reserve assets held by the monetary authorities. The other changes in the 
volume of assets account records then a decrease in their holding of valuables and an 
increase in their holding of monetary gold. 
Purchases of monetary gold directly from other monetary authorities are classified as 
transactions in monetary gold (F.ll). All other purchases, including those from financial 
intermediaries or via an organized gold market must be recorded as purchases of valuables 
followed by a classification change. 
Demonetization of gold occurs when the monetary authorities transfer gold from reserve 
assets to valuables. Holdings of monetary gold by monetary authorities then decrease and 
valuables show an increase. Sales of monetary gold directly to other monetary authorities 
are classified as transactions in monetary gold (F.ll). All other sales, including those to 
financial intermediaries or via an organized gold market must be recorded as sales of 
valuables preceded by a classification change. 
6.33. Changes in classification of assets or liabilities other than monetization/demonetization of 
gold (K.12.22): examples are changes in land use or conversions of dwellings to 
commercial use or vice versa. In the case of land both entries -a negative entry for the old 
category, a positive one for the new category- have to be made with the same value in the 
category K.12.22. The change in land value resulting from this change in use is recorded in 
economic appearance (see 6.17.c) or disappearance of non-produced assets (see 6.2l.b) 
considered as volume changes. 
K.12.22 does not include the conversion of bonds into shares. This conversion is recorded 
as two financial transactions (see 5.63.1). 
6.34. Entries for other changes in volume (K.3-K.10 and K.12) are recorded in the other changes 
in the volume of assets accounts of the sectors, the total economy and the rest of the world. 
Nominal holding gains/losses (K.11) 
6.35. Nominal holding gainst are that category of other changes in the value of assets, liabilities 
and therefore net worth which reflects the changes in the level and structure of their prices. 
Nominal holding gains are broken down into neutral holding gains and real holding gains. 
6.36. Definition: The nominal holding gain (K.l 1) on a given quantity of an asset is defined as 
the change in value for the owner of that asset as a result of a change in its 
price. The nominal holding gain on a liability is defined as the change in value 
of that liability as a result of a change in its price, but with the sign reversed. 
6.37. A positive holding gain is due to an increase in the value of a given asset or to a reduction 
in the value of a given liability. A negative holding gain - i.e. a holding loss - is due to a 
reduction in the value of a given asset or an increase in the value of a given liability. 
The te. n "holding gain" is used to cover both holding gains and losses on the clear understanding that holding gains may be negative 
as well as positive. Similarly, the term "asset" may be used collectively to cover both assets and liabilities. 
195 
6.38. The nominal holding gains recorded in the revaluation account are those accruing on assets 
or liabilities, whether realised or not. A holding gain is said to be realised when the asset 
in question is sold, redeemed, used or otherwise disposed of, or the liability repaid. An 
unrealised gain is therefore one accruing on an asset that is still owned or a liability that is 
still outstanding at the end of the accounting period. A realised gain is usually understood 
as the gain realised over the entire period over which the asset is owned or liability 
outstanding whether this period coincides with the accounting period or not. However, as 
holding gains are recorded on an accruals basis in the System, the distinction between 
realized and unrealized gains, although useful for some purposes, does not appear in the 
classifications and accounts. 
6.39. Holding gains include gains on all kinds of assets: non-financial produced and non-
produced assets, and financial assets. Thus, holding gains on inventories of all kinds of 
goods held by producers, including work in progress, are also covered. 
6.40. Nominal holding gains may accrue on assets held for any length of time during the 
accounting period and not merely on assets that appear in the opening and/or closing 
balance sheets. The nominal holding gain accruing to the owner of a particular asset, or 
given quantity of a specific type of asset, between two points of time is defined as: 
the current value of that asset at the later point of time, 
minus 
the current value of that asset at the earlier point of time, 
assuming that the asset itself does not change, qualitatively or quantitatively, in the 
meanwhile. The nominal holding gain G accruing on a given quantity q of some asset 
between times o and t can be expressed as follows: 
G = (PrPo)-q 
where p0 and p^ are the prices of the asset at times o and t respectively. For financial assets 
and liabilities with fixed current values for which both p0 and p^ are unity by definition, 
nominal holding gains are always zero . 
6.41. For purposes of calculating nominal holding gains, acquisitions and disposals of assets 
must be valued in the same way as in the capital and financial accounts arid stocks of assets 
must be valued in the same way as in the balance sheets. In the case of fixed assets the 
value of an acquisition is the amount paid by the purchaser to the producer, or seller, plus 
the associated costs of ownership transfer incurred by the purchaser. The value of a 
disposal of an existing fixed asset is the amount received by the seller from the purchaser 
minus the costs of ownership transfer incurred by the seller. 
!96 
Four different situations giving rise to nominal holding gains may be distinguished: 
(1) an asset held throughout the accounting period: the nominal holding gain accruing 
during the accounting period is equal to the closing balance sheet value minus the 
opening balance sheet value. These values are the estimated values of the assets if they 
were to be acquired at the times the balance sheets are drawn up. The nominal gain is 
unrealized. 
(2) an asset held at the beginning of the period that is sold during the period: the nominal 
holding gain accruing is equal to the actual or estimated disposal value minus the 
opening balance sheet value. The nominal gain is realized. 
(3) an asset acquired during the period and still held at the end of the period: the nominal 
holding gain accruing is equal to the closing balance sheet value minus the actual, or 
estimated, acquisition value of the asset. The nominal gain is unrealized. 
(4) an asset acquired and disposed of during the accounting period: the nominal holding 
gain accruing is equal to the actual, or estimated, disposal value minus the actual, or 
estimated, acquisition value. The nominal gain is realized. 
6.42. The nominal holding gains included are those accruing on assets and liabilities, whether 
realized or not. They are recorded in the revaluation account of the sectors, the total 
economy and the rest of the world. 
Neutral holding gains/losses (K.ll.l) 
6.43. Definition: The neutral holding gain (K.ll.l) on an asset is defined as the value of the 
holding gain that would accrue if the price of the asset changed over time in the 
same proportion as the general price level. 
Neutral holding gains are identified to facilitate the derivation of real holding gains which 
redistribute real purchasing power between sectors. 
6.44. Let the general price index be denoted by r. The neutral holding gain NG on a given 
quantity q of an asset between times o and t is then given by the following expression: 
NG = Po-q(rt/r0-l) 
where p0 . q is the current value of the asset at time o and r^ / r0 the factor of the change in 
the general price index between times o and t. The same term r^ / r0 is applied to all assets 
and liabilities. 
6.45. There is no ideal general price index appropriate to calculate neutral holding gains. By 
convention, the general price index to be applied for the calculation of neutral holding 
gains is the price index for final national uses excluding changes in inventories. 
6.46. Neutral holding gains are recorded in the neutral holding gains/losses account, which is a 
sub-account of the revaluation account of the sectors, the total economy and the rest of the 
world. 
- 197 
Real holding gains/losses (K.l 1.2) 
6.47. Definition: The real holding gain (K.l 1.2) on an asset is defined as the difference between 
the nominal and the neutral holding gain on that asset. 
The real holding gain RG on a given quantity q of an asset between times o and t is given 
by: 
RG = G-NG or 
RG = (pt / p0 - rt / r0) • p0 • q . 
The values of the real holding gains on assets thus depend on the movements of their prices 
over the period in question, relative to movements of other prices, on average, as measured 
by the general price index. 
6.48. Real holding gains are recorded in the real holding gains/losses account, which is a sub­
account of the revaluation account of the sectors, the total economy and the rest of the 
world. 
Holding gains by type of financial asset 
Currency and deposits (AF.2) 
6.49. The current values of currency and deposits denominated in national currency remain 
constant over time. The "price" of such an asset is always unity while the quantity is given 
by the number of units of the currency in which they are denominated. The nominal 
holding gains on such assets are always zero. For this reason, the difference between the 
values of the opening and closing stocks of such assets is, with the exception of the other 
changes in the volume of assets, entirely accounted for by the values of the transactions in 
the assets. This being one case in which it is normally possible to deduce the latter from the 
balance sheet figures. 
6.50. In order to calculate the neutral and real holding gains on assets of fixed current value, 
however, data on the times and values of transactions are needed as well as the opening and 
closing balance sheet values. Suppose, for example, a loan is made and repaid within the 
accounting period while the general price level is rising. The neutral gain on the loan is 
positive and the real gain negative from the creditor's point of view, the amount depending 
upon the length of time the loan is outstanding and the rate of inflation. It is impossible to 
record such real losses without data on the value of the loans made and repaid during the 
accounting period and the times at which they are made and repaid. In general, it may be 
inferred that if the total absolute value of the positive and negative transactions is large in 
relation to the opening and closing balance sheet levels, approximate estimates of the 
neutral and real holding gains on financial assets and liabilities with fixed current values 
derived from balance sheet data alone may not be very satisfactory. Even recording the 
values of financial transactions on a gross basis - i.e. recording loans made and repaid 
separately as distinct from the total value of loans minus repayments - may not be 
sufficient without information on the timing of the loans. 
198 
Loans (AF.4) and Other accounts receivable/payable (AF.7) 
6.51. The same as for currency and deposits applies for loans and other accounts 
receivable/payable, which are not traded. However, when an existing loan or trade credit is 
sold to another institutional unit the difference between the redemption price and the 
transaction price should be recorded under the revaluation account of the seller and the 
purchaser at the time of transaction. 
Securities other than shares (AF.3) 
6.52. When bonds are issued at a premium or discount, including deep discounted and zero 
coupon bonds, the difference between its issue price and its face or redemption value when 
it matures measures interest that the issuer is obliged to pay over the life of the bond. Such 
interest is recorded as property income payable by the issuer of the bond and receivable by 
the holder of the bond in addition to any coupon interest actually paid by the issuer at 
specified intervals over the life of the bond. The interest accruing is recorded in the 
financial account as being simultaneously reinvested in the bond by the holder of the bond 
(see 5.17.). It is, therefore, recorded in the financial account as the acquisition of an asset 
which is added to the existing assetO) . Thus the gradual increase in the market value of a 
bond that is attributable to the accumulation of accrued, reinvested interest reflects a 
growth in the principal outstanding - that is, in the size of the asset. It is essentially a 
quantum or volume increase and not a price increase. It does not generate any holding gain 
for the holder of the bond or holding loss for the issuer of the bond. The situation is 
analogous to that of a good, such as wine, that matures while it is being stored. Any 
increase in the price of the wine that is attributable to an improvement in its quality reflects 
an increase in volume and not price. Bonds change qualitatively over time as they 
approach maturity and it is essential to recognize that increases in their values due to the 
accumulation of accrued interest are not price changes and do not generate holding gains. 
6.53. The prices of fixed-interest bonds also change, however, when the market rates of interest 
change, the prices varying inversely with the interest rate movements. The impact of a 
given interest rate change on the price of an individual bond is less, the closer the bond is 
to maturity. Changes in bond prices that are attributable to changes in market rates of 
interest constitute price and not quantum changes. They therefore generate nominal 
holding gains or losses for both the issuers and the holders of the bonds. An increase in 
interest rates generates a nominal holding gain for the issuer of the bond and an equal 
nominal holding loss for the holder of the bond, and vice versa in the case of fall in interest 
rates. 
Nominal holding gains or losses may accrue on bills in the same way as for bonds. 
However, as bills are short-term securities with much shorter times to maturity, the holding 
gains generated by interest rate changes are generally much smaller than on bonds with the 
same face values. 
*• ' The System recommends this treatment, but allows for recording of such interest under other accounts receivable/payable (AF.7) 
where required to conform to national practices (see 5.125.). 
I 99 -
6.54. The conversion of bonds into shares is recorded as two financial transactions (see 5.63.1). It 
will usually take place at a price below the market price of the shares and the resulting 
holding gains are to be recorded as a price change under the revaluation account. 
6.55. The value of financial derivatives (AF. 34) may change as a result of changes in the value 
of the underlying instrument, changes in the volatility of the price of the underlying 
instrument, or approaching the date of execution or maturity. All such changes in value 
should be regarded as price changes and recorded under K. 11. 
Shares and other equity (AF.5) 
6.56. Bonus shares (see 5.94.) increase the number of shares and the nominal value of the shares 
issued but do not in theory alter the market value of the totality of shares. By convention, 
they do not enter the accounts at all. However, these issues are designed to improve the 
liquidity of the shares on the market and hence the total market value of shares issued may 
rise as a result - any such change should be recorded as a revaluation effect. 
Insurance technical reserves (AF.6) 
6.57. Changes in the net equity of households in life insurance reserves and in pension funds 
reserves (AF.61) that occur between the beginning and the end of the accounting period 
and that result from nominal holding gains or losses on the reserves invested by insurance 
corporations and pension funds are recorded in the revaluation account, as well as changes 
in prepayments of insurance premiums and reserves for outstanding claims (AF.62) 
resulting from holding gains or losses. 
Financial assets in foreign currency 
6.58. The value of financial assets in foreign currency is measured by their current market value 
in foreign currency converted into national currency at the current exchange rate. Nominal 
holding gains may therefore occur not only because the price of the asset in local currency 
changes but also because the exchange rate changes. The total value of the nominal holding 
gains accruing over the accounting period may be calculated in the usual way by 
subtracting the value of transactions from the difference between the opening and closing 
balance sheet values. For this purpose, transactions in the financial assets in foreign 
currency must be converted into the national currency using the exchange rates at the time 
the transactions occur, while the opening and closing balance sheet values must be 
converted using the exchange rates prevailing at the dates to which the balance sheets 
relate. This implies that the total value of the transactions - acquisitions less disposals -
expressed in foreign currency is, in effect, converted by a weighted average exchange rate 
in which the weights are given the values of transactions conducted on different dates. 
2(10 
CHAPTER VII 
BALANCE SHEETS 
7.01. Definition : A balance sheet is a statement, drawn up at a particular point in time, of the 
values of assets owned and of liabilities outstanding. The balancing item is 
called net worth (B. 90). 
The stock of the assets and liabilities recorded in the balance sheet is valued at 
the market prices prevailing on the date to which the balance sheet relates. 
7.02. A balance sheet is drawn up for sectors, the total economy and the rest of the world. 
For a sector the balance sheet shows the value of all assets -produced, non-produced and 
financial- and liabilities and the sector's net worth. 
For the total economy the balance sheet provides as balancing item what is often referred to as 
national wealth -the sum of non-financial assets and net financial assets with respect to the 
rest of the world. 
The balance sheet for the rest of the world, called the external assets and liabilities account, 
consists entirely of financial assets and liabilities. 
7.03. Corporations are seen to have a net worth in addition to the value of the shares and other 
equity issued. In the case of quasi-corporations, net worth is zero, because the value of the 
owners' equity is assumed to be equal to its assets less its liabilities. Therefore, the net worth 
of resident direct investment enterprises, which are branches of non-resident enterprises and 
are therefore treated as quasi-corporations, is zero. 
7.04. The difference between total financial assets and total liabilities is called net financial assets 
(see 7.67.). 
7.05. For the non-financial and the financial corporations sectors the calculation of own funds 
provides an analytically meaningful indicator. 
Own funds are the sum of net worth (B. 90) and shares and other equity (AF. 5) issued. 
7.06. The balance sheet completes the sequence of accounts, showing the ultimate result of the 
entries in the production, distribution and use of income, and accumulation accounts (see 
chapter VIII : Sequence of accounts and balancing items). 
7.07. A balance sheet relates to the value of assets and liabilities at a particular moment of time. 
Balance sheets are to be compiled at the beginning of the accounting period (the same as the 
end of the preceding period) and at its end. 
7.08. A basic accounting identity links the opening balance sheet and the closing balance sheet : 
(1) the value of the stock of a specific type of asset in the opening balance sheet; 
plus 
(2) transactions : the total value of the assets acquired, less the total value of those 
disposed of, in transactions that take place within the accounting period : transactions 
in non-financial assets are recorded in the capital account and transactions in 
financial assets in the financial account; 
102 
minus 
(3) consumption of fixed capital; 
plus 
(4) other volume changes : the value of other positive or negative changes in the volume 
of the assets held (for example, as a result of the discovery of a subsoil asset or the 
destruction of an asset as a result of war or a natural disaster) : these changes are 
recorded in the other changes in volume of assets account; 
plus 
(5) revaluations: the value of the positive or negative nominal holding gains accruing 
during the period resulting from a change in the price of the asset : these changes are 
recorded in the revaluation account; 
is identical with 
(6) the value of the stock of the asset in the closing balance sheet. 
The accounting links between the opening and closing balance sheets via transactions and 
other changes in assets (other changes in volume and holding gains) are shown schematically 
in Annex 2. 
Types of assets 
7.09. The assets recorded in the balance sheets are economic assets. 
7.10. Definition : Economic assets are entities functioning as a store of value 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 
them or using them over a period of time. 
7.11. The economic benefits consist of primary incomes (operating surplus by using, property 
income by letting others use) derived from the use of the asset and the value, including 
possible holding gains/losses, that could be realized by disposing of the asset or terminating it. 
7.12. An overview of the classification and coverage of economic assets is given in the table on 
pages .... The detailed definition of each asset category is set out in the annex 1 to this chapter. 
Excluded from the asset boundary are : 
(1) human capital, 
(2) natural assets that are not economic assets (eg. air, river water), 
(3) contingent assets, which are not financial assets (see 7.22.). 
203 
7.13. Three categories of assets are distinguished : 
(1) non-financial produced assets, 
(2) non-financial non-produced assets, 
(3) financial assets. 
Non-financial produced assets (AN.l) 
7.14. Definition : Produced assets (AN.l) are non-financial assets that have come into existence as 
outputs from production processes. 
7.15. The classification of produced assets is designed to distinguish among assets on the basis of 
their role in production. It consists of: fixed assets1) which are used repeatedly or 
continuously in production for more than one year ; inventories which are used up in 
production as intermediate consumption, sold or otherwise disposed of ; and valuables. The 
latter are not used primarily for production or consumption, but are instead acquired and held 
primarily as stores of value. 
Non-financial non-produced assets (AN.2) 
7.16. Definition : Non-produced assets (AN.2) are economic assets that come into existence other 
than through processes of production. They consist of tangible assets and 
intangible assets as defined below. 
7.17. The classification is designed to distinguish assets on the basis of the way they come into 
existence. Some of these assets occur in nature, others, which may be referred to as constructs 
devised by society, come into existence by legal or accounting actions. 
7.18. All tangible non-produced assets are natural assets. Which natural assets are included is 
determined, in compliance with the general definition of an economic asset, by whether the 
assets are subject to effective ownership and are capable of bringing economic benefits to 
their owners, given the existing technology, knowledge, economic opportunities, available 
resources, and set of relative prices. Moreover, natural assets over which ownership rights 
have not, or cannot, be established, such as open seas or air, are excluded. 
7.19. Intangible non-produced assets include patented entities, transferable contracts, purchased 
goodwill, etc. Entities not evidenced by legal or accounting actions -that is, such actions as the 
granting of a patent or the conveyance of some economic benefit to a third party- are 
excluded. 
Financial assets and liabilities (AF.) 
7.20. Definition: Financial assets (AF.) are economic assets, comprising means of payment, 
financial claims and economic assets which are close to financial claims in 
nature. 
' Two kinds of durable goods used by producers are excluded from gross fixed capital formation : small tools and certain 
kinds of military equipment. Therefore there are no corresponding assets. 
In addition, transport equipment and other machinery and equipment acquired by households for final consumption arc 
not considered fixed assets. They are included in the memorandum item "consumer durables" in the balance sheet (see 
7.63.). 
204 -
7.21. Means of payment consist of monetary gold, special drawing rights, currency and transferable 
deposits. 
Financial claims entitle their owners, the creditors, to receive a payment or series of payments 
without any counter-performance from other institutional units, the debtors, who have 
incurred the counterpart liabilities. 
Examples of economic assets which are close to financial claims in nature are shares and other 
equity and partly contingent assets. The institutional unit issuing such a financial asset is 
considered to have incurred a counterpart liability. 
7.22. Contingent assets are contractual arrangements between institutional units, and between them 
and the rest of the world, which specify one or more conditions which must be fulfilled before 
a financial transaction takes place. Examples are guarantees of payment by third parties, 
letters of credit, lines of credit, underwritten note issuance facilities (NIFs) and many of the 
derivative instruments. In the System, a contingent asset is a financial asset in cases where the 
contractual arrangement itself has a market value because it is tradable or can be offset on the 
market. Otherwise, a contingent asset is not recorded in the System. 0 
7.23. In the System, each financial asset has a counterpart liability, with the exception of those 
financial assets classified in the category monetary gold and special drawing rights (AF.l). 
7.24. The classification of financial assets and liabilities corresponds to the classification of 
financial transactions. Therefore, the definitions of the categories, sub-categories and sub-
positions of financial assets and liabilities and the supplementary explanations are provided 
only once in the ESA - in the financial transactions chapter. The balance sheets chapter does 
not repeat the definitions and their explanations in its main text but it provides in its annex 1 a 
summary of all assets and liabilities defined in the System. 
Insurance technical reserves (AF.6) are unconditional liabilities of insurance corporations and pension funds. However, 
the counterpart financial assets of individual policy holders and beneficiaries are contingent assets in most cases. 
205 
CLASSIFICATION OF ASSETS 
AN. NON-FINANCIAL ASSETS (AN.l. + AN.2.) 
AN.l. Produced assets 
AN.l 1 Fixed assets1) 
AN. 111 Tangible fixed assets 
AN.l 111 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 obj ects 
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 
Memorandum item AN.m consumer durables. 
206 
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 
AF. FINANCIAL ASSETS 0 (AF. 1 + AF.2 + AF.3 + AF.4 + AF.5 + AF.6 + AF.7) 
AF.l Monetary gold and special drawing rights (SDRs) 
AF.ll * Monetary gold 
AF. 12 Special drawing rights (SDRs) 
AF.2 Currency and deposits 
AF.21 Currency 
AF.22 Transferable deposits 
AF.29 Other deposits 
AF.3 Securities other than shares 
AF.33 Securities other than :>*..-os, excluding financial derivatives 
AF.331 Short-term 
AF.332 Long-term 
AF.34 Financial derivatives 
AF.4 Loans 
AF.41 Short-term 
AF.42 Long-term 
AF.5 Shares and other equity 
AF.51 Shares and other equity, excluding mutual funds shares 
AF.511 Quoted shares 
AF .512 Unquoted shares 
AF. 513 Other equity 
AF.52 Mutual funds shares . 
AF.6 Insurance technical reserves 
AF.61 Net equity of households in life insurance reserves and in pension funds reserves 
AF.611 Net equity of households in life insurance reserves 
AF.612 Net equity of households in pension funds reserves 
AF.62 Prepayments of insurance premiums and reserves for outstanding claims 
AF.7 Other accounts receivable/payable 
AF.71 Trade credits and advances 
AF.79 Other 
Memorandum item AF.m : direct foreign investment. 
20" 
Valuation of entries in the balance sheets 
General valuation principles 
7.25. A particular item in the balance sheet should be valued as if it were being acquired on the date 
to which the balance sheet relates, including any associated costs of ownership transfer in the 
case of non-financial assets. This implies that assets and liabilities are to be valued using 
current market prices on the date to which the balance sheet relates. 
This means that assets should be valued on the basis of 
( 1 ) purchasers' prices if they are bought 
(2) basic prices if they are own-account produced and on the basis of basic prices of 
similar goods or of the sum of its cost if no basic prices are available. 
7.26. Ideally, these prices should be prices observable on the market. When there are no observable 
prices - as may be the case if no purchases/sales of the items in question have been observed 
in the recent past - an attempt has to be made to estimate what the prices would be if the assets 
were acquired on the market on the date to which the balance sheet relates. 
7.27. In addition to prices observed on markets or estimated from observed prices or costs incurred, 
current prices may be approximated for balance sheet valuation by 
(1) revaluating and accumulating acquisitions less disposals or 
(2) the present, or discounted, value of future returns. 
7.28. Market prices are usually available for many of the financial assets, existing real estate 
(buildings and other structures plus the underlying land), existing transport equipment, crops 
and livestock as well as for newly produced fixed assets and inventories. 
7.29. For some assets revaluated initial acquisition prices are written off over the asset's expected 
life. The value of such an asset at a given point in its life is given by its current acquisition 
price less the accumulated value of these write-offs. Most fixed assets can be recorded in 
balance sheets at current purchasers' prices written down for the accumulated consumption of 
fixed capital (written-down replacement cost)1). 
7.30. In the case of assets for which the returns either are delayed (as with timber) or are spread 
over a lengthy period (as with subsoil assets), a rate of discount must be used to compute the 
present value of the expected future returns. 
The rate of discount should be derived from information based on transactions in the 
particular type of assets under consideration -forests, mines and quarries- rather than using a 
general rate of interest. 
7.31. The value of assets and liabilities denominated in foreign currencies should be converted into 
the national currency at the market exchange rate prevailing on the date to which the balance 
sheet relates. This rate should be the midpoint between the buying and the selling spot rates 
for currency transactions. 
) The sum of written-down values of all fixed assets still in use is described as net capital stock. Gross capital stock 
includes the values of the accumulated consumption of fixed capital. 
- 208 -
7.32. Alternatives to current market values might be useful for some analytical purposes and may 
be shown as memorandum items in the balance sheets. Examples of alternative valuation 
include nominal value for long-term bonds and revalued paid-in and equivalent value for 
corporate equity. 
Non-financial assets (AN.) 
Produced assets (AN.l) 
Fixed assets (AN.ll) 
Tangible fixed assets (AN.l 11) 
7.33. Tangible fixed assets have to be recorded at market prices if possible (or basic prices in the 
case of own-account production of new assets), if not then at current purchasers' prices written 
down by the accumulated consumption of fixed capital. Purchasers' costs of ownership 
transfer associated with these assets, appropriately written down, are included in the balance 
sheet value. 
Intangible fixed assets (AN. 112) 
7.34. Mineral exploration should be valued either on the basis of the accumulated amounts paid 
under contracts awarded to other institutional units for the purpose, or on the basis of the costs 
incurred for exploration undertaken on own account. That part of exploration undertaken in 
the past that has not yet been fully written off should be revaluated at the prices and costs of 
the current period. 
7.35. Computer software should be valued on the basis of the purchasers' price paid on the market, 
on the basis of estimated basic prices when produced in house, or on the basis of costs of 
production when such prices are not available. Software acquired in previous years and not 
yet fully written down should be revaluated at current prices or costs (which may be less than 
the original price or cost). 
7.36. Entertainment, literary or artistic originals and other intangible fixed assets should be valued 
at the acquisition price when these intangible assets are actually traded on markets. In the case 
of intangible assets that have been produced on own account, it may be necessary to value 
them on the basis of their costs of production, appropriately revaluated at prices of the current 
period and written down. Otherwise, it may be necessary to use estimates of the present value 
of the expected future receipts to be received by owners of such assets. 
Inventories (AN.12) 
7.37. Inventories should be valued at prices prevailing on the date to which the balance sheet 
relates, and not at the prices at which the products were valued when they entered inventory. 
209 
(14) 
7.38. Inventories of materials and supplies are valued at purchasers' prices, and inventories of 
finished goods and work in progress are valued at basic prices. Inventories of goods intended 
for resale without further processing by wholesalers and retailers are valued at the prices paid 
for them, excluding any transportation costs incurred by the wholesalers or retailers. For 
work-in-progress inventories, the value of the closing balance sheet can be calculated by 
applying the fraction of the total production cost incurred by the end of the period to the basic 
price of a similar finished product on the date to which the balance sheet relates. If the basic 
price of the finished products is not available, it can be estimated by the value of the 
production cost with a mark-up for expected net operating surplus or (estimated net) mixed 
income. 
Growing single-use crops (except timber) and livestock being raised for slaughter can be 
valued by reference to the prices of such products on the markets. Standing timber is valued 
by discounting the future proceeds of selling the timber at current prices after deducting the 
expenses of bringing the timber to maturity, felling, etc. 
Valuables (AN. 13) 
7.39. Valuables (works of art, antiques, jewellery, precious stones, non-monetary gold (see 5.30.) 
and other metals) are to be valued at current prices. To the extent that organized markets exist 
for these assets, they should be valued at the actual or estimated prices that would be paid for 
them were they purchased on the market, including any agents' fees or commissions, on the 
date to which the balance sheet relates. Otherwise, they should be valued at revaluated 
acquisition prices, because there is no deterioration. 
Non-produced assets (AN.2) 
Tangible non-produced assets (AN.21) 
Land (AN.211) 
7.40. In the capital account expenditures on land improvements and cost of ownership transfer on 
land are recorded as gross fixed capital formation separated from land itself. However, the 
balance sheet value for land includes its full value incorporating these improvements. 
If land cannot be separated from buildings or other structures situated on it, the assets have to 
be classified according to its main value. 
In the balance sheet of the purchaser land is valued at its current price paid by the new owner 
plus the cost of ownership transfer incurred by him. 
In the balance sheet of the seller the disposal of land is valued at the current price paid by the 
purchaser minus the cost of ownership transfer incurred by the seller on the occasion of the 
sale and minus the cost of ownership transfer of land not already written off to zero incurred 
by the seller on the occasion of the purchase of that land. The combined value of these not 
already written-off parts of the transfer cost of land acquisition (by the seller) and of the 
transfer cost of disposal are holding losses. 
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Subsoil assets (AN.212) 
7.41. Proven reserves of mineral deposits located on or below the earth's surface that are 
economically exploitable given current technology and relative prices are valued by the 
present value of expected net returns resulting from the commercial exploitation of those 
assets. 
Other natural assets (AN.213 and AN.214) 
7.42. As observed prices for these assets are not likely to be available, they have to be valued by the 
present value of future returns expected from them. 
Intangible non-produced assets (AN.22) 
7.43. Intangible non-produced assets (patented entities, leases or other transferable contracts, and 
purchased goodwill) should be valued at current prices when they are actually traded on 
markets. Otherwise, estimates of the present value of the expected future returns to be 
received by the owners of such assets will have to be made. 
Financial assets and liabilities (AF.) 
7.44. Financial assets and liabilities should in principle be valued at current prices. They should be 
assigned the same value whether they appear as financial assets or liabilities. The prices 
should exclude service charges, fees, commissions and similar payments which are recorded 
as services provided in carrying out the transactions. 
Monetary gold and SDRs (AF.l) 
7.45. Monetary gold (AF.l 1) is to be valued at the price established in organized gold markets. 
The value of SDRs (AF.l2) is determined daily by the IMF and the rates against domestic 
currencies are obtainable from foreign exchange markets. 
Currency and deposits (AF.2) 
7.46. For currency (AF.21), the valuation is the nominal or face value of the currency. 
For deposits (AF.22, AF.29), the values to be recorded in the balance sheets are the amounts 
of principal that the debtors are contractually obliged to repay the creditors under the terms of 
the deposits when the deposits would be liquidated on the date the balance sheet is set up. The 
values may include accrued interest (see 5.124.). 
Securities other than shares (AF.3) 
7.47. For consistency with the treatment of accrued interest (see 5.124.), securities other than shares 
excluding financial derivatives (AF.33) should be valued at current market prices after 
deduction of the impact of accrued interest, whereas their volume equals market volume (i.e. 
the number of securities in circulation plus the supplementary volume resulting from accrued 
interest). However, despite this decomposition into price and volume, global value of 
securities other than shares equals global current market value (see 6.52.). 
7.48. Short-term securities other than shares excluding financial derivatives (AF.331) are to be 
valued at their current market values. 
If current market values are not available: 
short-term securities issued at par should be valued at face value plus accrued interest 
not due for payment or not paid; 
discounted securities should be valued at the issue price plus accrued interest. 
These approximations should be restricted to securities whose original maturity does not 
exceed three months. 
7.49. Long-term securities other than shares excluding financial derivatives (AF.332) are always to 
be valued at their current market values, whether they are bonds on which interest is paid 
regularly or deep-discounted or zero-coupon bonds on which little or no interest is paid. 
7.50. Financial derivatives (AF.34) should be included in the balance sheets at their current market 
prices. In the case that no quoted market price exists (eg. OTC options), a financial derivative 
should be valued at either the amount required to buy out or to offset the contract or the 
amount of premium paid. 
By convention, the issuer of a financial derivative is considered to have incurred a counterpart 
liability. 
Loans (AF.4) 
7.51. The values to be recorded in the balance sheets of both creditors and debtors are the amounts 
of principal that the debtors are contractually obliged to repay the creditors, even in cases 
where the loan was traded with a discount or premium. 
Shares and other equity (AF.5) 
7.52. Shares and other equity are to be valued at their current prices. The same current price is 
adopted for both the asset side and the liability side, although shares and other equity are not, 
legally, a liability of the issuer, but an ownership right on the liquidation value of the 
corporation, whose amount is not known in advance. 
7.53. Quoted shares (AF.511) are to be valued at a representative mid-market price observed on the 
stock exchange or other organized financial markets. 
7.54. The values of unquoted shares (AF.512), which are not regularly traded on organized markets, 
should be estimated with reference to the values of quoted shares. However, these estimates 
should take into account differences between the two types of shares, notably their liquidity, 
and they should consider the reserves accumulated over the life of the corporation and its 
branch of business. 
-212 
7.55. The estimation method applied depends very much on the basic statistics available. It may 
take into account, for example, data on merger activities involving unquoted shares. 
Furthermore, in cases where the reserves of corporations, which issue unquoted shares, differ 
on average, and in proportion to their nominal capital, from that of corporations, which issue 
quoted shares, it would be appropriate to calculate the current price of unquoted shares in 
proportion to figures including reserves, such as net worth given by the corporation balance 
sheet, or as own funds compiled according to ESA principles: 
current price of current price of own funds (unquoted corporations) 
unquoted shares quoted shares own funds (quoted corporations) 
The ratio of current price to own funds may vary with the branch of business. Therefore, it is 
preferable to calculate the current price of unquoted shares branch by branch. There may be 
other differences between quoted and unquoted corporations, which may have an effect on the 
estimation method. 
7.56. Other equity (AF.513) is very often a liability of specific institutional units (quasi-
corporations, corporations owned by the state, international organisations, notional units, etc.). 
In general, they have to be valued according to specific methods, such as own funds or 
nominal value. The own funds method is notably to be used systematically for quasi-
corporations, since their net worth is by convention equal to zero. 
7.57. Mutual funds shares (AF.52) are to be valued at their current stock exchange price, if they are 
quoted, or at their current redemption value, if they are redeemable by the fund itself. 
Insurance technical reserves (AF.6) 
7.58. In the case of net equity of households in life insurance reserves (AF.611), the present value 
of the individuals' actuarially determined claims to the payment of capital or income can be 
ascertained. This value includes the liability of life insurance corporations for reserves against 
outstanding risks and reserves for with-profit insurance that add to the value on maturity of 
with-profit endowments or similar policies. In the case of with-profit insurance, the reserves 
include holding gains. 
7.59. In the case of net equity of households on pension funds reserves (AF.612), the nature of the 
liability of the funds -and financial asset of the households- depends on the kind of pension 
scheme. 
Defined benefit pension schemes are those in which the level of pension benefits promised to 
participating employees is guaranteed. The liability of a defined benefit pension scheme is 
equal to the present value of the promised benefits. As the scheme may be temporarily over-
or underfunded, a defined benefit pension scheme may have a positive or negative net worth. 
Money purchase pension schemes are those for which benefits are directly dependent on the 
assets of the fund. The liability of a money purchase pension scheme is the current market 
value of the funds' assets. The funds' net worth is always zero. 
- 213 -
7.60. The value of the prepayments of insurance premiums, which are part of AF.62, is determined 
on the basis of the proportion of the risks involved in relation to time for the time remaining 
on the contract. The value of the reserves for outstanding claims, which are also part of 
AF.62, is the present value of the amounts expected to be paid out in settlement of claims, 
including disputed claims. 
Other accounts receivable/payable (AF.7) 
7.61. Trade credits and advances (AF.71) or other items receivable/payable (AF.79) are to be 
valued for both creditors and debtors at the amount the debtors are contractually obliged to 
pay the creditors when the obligation is extinguished. 
Memorandum items 
7.62. In order to show items of more specialized analytic interest for particular sectors, two 
memorandum items are to be included in the balance sheets : 
(1) consumer durables (AN.m) 
(2) direct foreign investment (AF.m). 
Consumer durables (AN.m) 
7.63. Consumer durables are durable goods used by households repeatedly over periods of time of 
more than one year for final consumption. They are included in the balance sheets only as 
memorandum items. Their inclusion as a component of the balance sheet would be 
appropriate if the system postulated that the durables were gradually used up in production 
processes whose outputs consist of services. But consumer durables are not treated in this 
way. 
7.64. The stocks of consumer durables held by households -transport equipment and other 
machinery and equipment- are to be valued at current prices, both gross and net of 
accumulated charges equivalent to consumption of fixed capital. The figures shown as 
memorandum items in the balance sheet should be net of these accumulated charges. 
7.65. Durable goods owned by owners of unincorporated enterprises may be used partly by the 
enterprise for production and partly by members of the household for final consumption. The 
values shown in the balance sheet for the enterprise should reflect the proportion of the use 
that is attributable to the enterprise. 
Direct foreign investment (AF.m) 
7.66. Direct investment consists of financial assets, not physical capital, because the direct 
investment enterprise is a corporation or quasi-corporation resident in another country. 
Financial assets and liabilities that constitute direct investment are to be recorded according to 
the nature of the financial assets in the categories shares and other equity, loans, and other 
accounts receivable/payable. The amounts of direct investment included within each of those 
categories should be recorded separately as a memorandum item. 
214 
Financial Balance Sheets 
7.67. The financial balance sheet (of a sector or the rest of the world) shows on its left side financial 
assets and on its right side liabilities. The balancing item of the financial balance sheet is net 
financial assets (BF.90). 
7.68. The financial balance sheet of a sector may be consolidated or non-consolidated. The non-
consolidated financial balance sheet shows the financial assets and liabilities of the 
institutional units classified in the sector. Compared to the non-consolidated financial balance 
sheet, those financial assets and liabilities are eliminated from the consolidated financial 
balance sheet, the counterparts of which are liabilities respectively financial assets of 
institutional units classified in the same sector. The external assets and liabilities account, that 
is the financial balance sheet of the rest of the world (see 8.77.), is consolidated by definition. 
7.69. The financial balance sheet by debtor/creditor (of a sector or the rest of the world) is an 
extension of the financial balance sheet, showing in addition a breakdown of financial assets 
by debtor sector and a breakdown of liabilities by creditor sector. Therefore, it provides 
informations on debtor/creditor relationships and it is consistent with the financial account by 
debtor/creditor (see 5.13.). 
215 
Annex 1 
Classification of Assets Definitions 
Non-financial assets (AN.) 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 them, or using them over a period 
of time, that consist of tangible assets, both produced 
and non-produced, and most intangible assets for 
which no corresponding liabilities are recorded. 
Produced assets (AN.l) Non-financial assets that have come into existence as 
outputs from production processes. Produced assets 
consist of fixed assets, inventories and valuables, as 
defined below. 
Fixed assets (AN.ll) Produced assets that are used repeatedly or 
continuously in production processes for more than 
one year. Fixed assets consist of tangible and 
intangible fixed assets, as defined below. 
Tangible fixed assets (AN.l 11) Fixed assets that consist of dwellings; other buildings 
and structures; machinery and equipment and 
cultivated assets, as defined below. 
Dwellings (AN.l111) Buildings that are used entirely or primarily as 
residences, including any associated structures, such 
as garages, and all permanent fixtures customarily 
installed in residences. Houseboats, barges, mobile 
homes and caravans used as principal residences of 
households are also included, as are historic 
monuments identified primarily as dwellings. Costs of 
site clearance and preparation are also included. 
Examples include residential buildings, such as one-
and two-dwelling buildings and other residential 
buildings intended for non-transient occupancy. 
Uncompleted dwellings are included to the extent that 
the ultimate user is deemed to have taken ownership, 
either because the construction is on own account or 
as evidenced by the existence of a contract of 
sale/purchase. Dwellings acquired for military 
personnel are included because they are used, as are 
dwellings acquired by civilian units, for the 
production of housing services. 
216 
Other buildings and structures (AN.l 112) Non-residential buildings and other structures, as 
defined below. 
Non-residential buildings (AN.l 1121) 
Other structures (AN.11122) Uncompleted buildings and structures are included to 
the extent that the ultimate user is deemed to have 
taken ownership, either because the construction is for 
own use or as evidenced by the existence of a contract 
of sale/purchase. Buildings and structures acquired 
for military purposes are included to the extent that 
they resemble civilian buildings acquired for purposes 
of production and are used in the same way. 
Buildings other than dwellings, including fixtures, 
facilities and equipment that are integral parts of the 
structures and costs of site clearance and preparation. 
Historic monuments identified primarily as 
non-residential buildings are also included. 
Examples include warehouse and industrial buildings, 
commercial buildings, buildings for public enter­
tainment, hotels, restaurants, edu'cational buildings, 
health buildings, etc. 
Structures other than buildings, including the cost of 
the streets, sewers and site clearance and preparation 
other than for residential or non- residential buildings. 
Also included are historic monuments for which 
identification as dwellings or non-residential buildings 
is not possible and shafts, tunnels and other structures 
associated with mining subsoil assets. (Major 
improvements to land, such as dams and dikes for 
flood control, are included in the value of land.) 
Examples include highways, streets, roads, railways 
and airfield runways; bridges, elevated highways, 
tunnels and subways; waterways, harbours, dams and 
other waterworks; long-distance pipelines, communi­
cation and power lines; local pipelines and cables, 
ancillary works; constructions for mining and 
manufacture; and constructions for sport and 
recreation. 
Machinery and equipment (AN. 1113) Transport equipment and other machinery and 
equipment, as defined below other than that acquired 
by households for final consumption. Tools that are 
relatively inexpensive and purchased at a relatively 
steady rate, such as hand tools, may be excluded. 
Also excluded is machinery and equipment integral to 
buildings that is included in dwellings and 
non-residential buildings. 
217 
Uncompleted machinery and equipment is excluded, 
unless produced for own use, because the ultimate 
user is deemed to take ownership only on delivery of 
the asset. Machinery and equipment acquired for 
military purposes is included to the extent that it 
resembles goods acquired by civilian units for 
purposes of production and that the military uses in 
the same way. 
Machinery and equipment acquired by households for 
final consumption is not treated as an asset. It is 
instead included in the memorandum item "consumer 
durables" in the balance sheet for households. 
Houseboats, barges, mobile homes and caravans used 
by households as principal residences are included in 
dwellings. 
Transport equipment (AN.11131) 
Other machinery 
(AN. 11132) and equipment Equipment for moving people and objects. Examples 
include products other than parts included in CPA1) 
subsection DM, transport equipment, such as motor 
vehicles, trailers and semitrailers;'ships; railway and 
tramway locomotives and rolling stock; aircraft and 
spacecraft; and motorcycles, bicycles, etc. 
Machinery and equipment not elsewhere classified. 
Examples include products other than parts, 
installation, repair and maintenance services included 
in CPA groups 29.1, machinery for the production and 
use of mechanical power, except aircraft, vehicle and 
cycle engines; 29.2, other general purpose machinery; 
29.3, agricultural and forestry machinery; 29.4, 
machine-tools; 29.5 other special purpose machinery; 
in CPA divisions 30, office machinery and computers; 
31, electrical machinery and apparatus n.e.c; 32, radio, 
television and communication equipment and 
apparatus; and 33, medical, precision and optical 
instruments, watches and clocks. Other examples are 
products other than parts included in CPA category 
23.30.2, fuel elements (cartridges), non-irradiated, for 
nuclear reactors; in CPA groups 36.1, furniture; 36.3, 
musical instruments; 36.4, sport goods; and 28.3, 
steam generators, except central heating hot water 
boilers. 
Cultivated assets (AN.l 114) Livestock for breeding, dairy, draught, etc. and 
vineyards, orchards and other plantations of trees 
yielding repeat products that are under the direct 
control, responsibility and management of institutional 
units, as defined below. 
Immature cultivated assets are excluded unless 
produced for own use. 
0 Statistical Classification of Products by Activity (CPA), 1993 
'IX-
Livestock for breeding, dairy, draught, 
etc. (AN. 11141) Livestock that are kept for the products they provide 
year after year. They include breeding stocks 
(including fish and poultry), dairy cattle, draught 
animals, sheep or other animals used for wool 
production and animals used for transportation, racing 
or entertainment. 
Vineyards, orchards and other 
plantations of trees yielding repeat 
products (AN.l 1142) Trees (including vines and shrubs) cultivated for 
products they yield year after year, including those 
cultivated for fruits and nuts, for sap and resin and for 
bark and leaf products. 
Intangible fixed assets (AN.112) Fixed assets that consist of mineral exploration, 
computer software, entertainment, literary or artistic 
originals and other intangible fixed assets, as defined 
below, intended to be used for more than one year. 
Mineral exploration (AN.1121) The value of expenditures on exploration for 
petroleum and natural gas and for non-petroleum 
deposits. These expenditures include prelicence costs, 
licence and acquisition costs, appraisal costs and the 
costs of actual test drilling and boring, as well as the 
costs of aerial and other surveys, transportation costs, 
etc., incurred to make it possible to carry out the tests. 
Computer software (AN.1122) Computer programs, program descriptions and 
supporting materials for both systems and applications 
software. Included are purchased software and 
software developed on own account, if the expenditure 
is large. Large expenditures on the purchase, 
development or extension of computer databases that 
are expected to be used for more than one year, 
whether marketed or not, are also included. 
Entertainment, literary or artistic originals 
(AN.l 123) Original films, sound recordings, manuscripts, tapes, 
models, etc., on which drama performances, radio and 
television programmes, musical performances, 
sporting events, literary and artistic output, etc., are 
recorded or embodied. Included are works produced 
on own account. In some cases, such as films, there 
may be multiple originals. 
Other intangible fixed assets (AN.l 129) New information, specialized knowledge, etc., not 
elsewhere classified, whose use in production is 
restricted to the units that have established ownership 
rights over them or to other units licensed by the latter. 
Inventories (AN.12) Produced assets that consist of goods and services that 
came into existence in the current period or in an 
earlier period held for sale, use in production or other 
use at a later date. They consist of materials and 
supplies, work-in-progress, finished goods and goods 
for resale, as defined below. 
Included are all inventories held by government, 
including, but not limited to, inventories of strategic 
materials, grains and other commodities of special 
importance to the nation. 
219 
Materials and supplies (AN.121) 
Work-in-progress (AN.122) Goods that their owners intend to use as intermediate 
inputs in their own production processes, not to resell. 
Goods and services that are partially completed but 
that are not usually turned over to other units without 
further processing or that are not mature and whose 
production process will be continued in a subsequent 
period by the same producer. Excluded are partially 
completed structures for which the ultimate owner is 
deemed to have taken ownership, either because the 
production is for own use or as evidenced by the 
existence of a contract of sale/purchase. They consist 
of work-in-progress on cultivated assets and other 
work-in-progress, as defined below. 
Work-in-progress 
(AN.1221) on cultivated assets 
Other work-in-progress (AN.1222) 
Finished goods (AN.123) 
Goods for resale (AN.124) Livestock raised for products yielded only on 
slaughter, such as fowl and fish raised commercially, 
trees and other vegetation yielding once-only products 
on destruction and immature cultivated assets yielding 
repeat products. 
Goods other than cultivated assets and services that 
have been partially processed, fabricated or assembled 
by the producer but that are not usually sold, shipped 
or turned over to others without further processing. 
Goods that are ready for sale or shipment by the 
producer. 
Goods acquired by enterprises, such as wholesalers 
and retailers, for the purpose of reselling them without 
further processing (that is, not transformed other than 
by presenting them in ways that are attractive to the 
customer). 
Valuables (AN. 13) Produced assets that are not used primarily for 
production or consumption, that are expected to 
appreciate or at least not to decline in real value, that 
do not deteriorate over time under normal conditions 
and that are acquired and held primarily as stores of 
value. Valuables consist of precious metals and 
stones, antiques and other art objects and other 
valuables, as defined below. 
Precious metals and stones (AN.131) 
Antiques and other art objects (AN.132) Precious metals and stones that are not held by 
enterprises for use as inputs into processes of 
production. 
Paintings, sculptures, etc., recognized as works of art 
and antiques. 
Other valuables (AN.139) Valuables not elsewhere classified, such as collections 
and jewellery of significant value fashioned out of 
precious stones and metals. 
220 
Non-produced assets (AN.2) Non-financial assets that come into existence other 
than through processes of production. Non-produced 
assets consist of tangible assets and intangible assets, 
as defined below. Also included are costs of 
ownership transfer on and major improvements to 
these assets. 
Tangible non-produced assets (AN.21) Non-produced assets that occur in nature and over 
which ownership may be enforced and transferred. 
Environmental assets over which ownership rights 
have not, or cannot, be enforced, such as open seas or 
air, are excluded. Tangible non-produced assets 
consist of land, subsoil assets, non-cultivated 
biological resources and water resources, as defined 
below. 
Land (AN.211) The ground, including the soil covering and any 
associated surface waters, over which ownership 
rights are enforced. Also included are major 
improvements that cannot be physically separated 
from the land itself. Excluded are any buildings or 
other structures situated on it or running through it; 
cultivated crops, trees and animals; subsoil assets; 
non-cultivated biological resources and water 
resources below the ground. Land consists of land 
underlying buildings and structures, land under 
cultivation, recreational land and associated surface 
water and other land and associated surface water, as 
defined below. 
Land underlying buildings and structures 
(AN.2111) Land on which dwellings, non-residential buildings 
and structures are constructed or into which their 
foundations are dug, including yards and gardens 
deemed an integral part of farm and non-farm 
dwellings and access roads to farms. 
Land under cultivation (AN.2112) Land on which agricultural or horticultural production 
is carried on for commercial or subsistence purposes, 
including, in principle, land under plantations, 
orchards and vineyards. 
Recreational land and associated surface 
water (AN.2113) Land that is used as privately owned amenity land, 
parklands and pleasure grounds and publicly owned 
parks and recreational areas, together with associated 
surface water. 
Other land and associated surface water 
(AN.2119) Land not elsewhere classified, including private 
gardens and plots not cultivated for subsistence or 
commercial purposes, communal grazing land, land 
surrounding dwellings in excess of those yards and 
gardens deemed an integral part of farm and non-farm 
dwellings and associated surface water. 
Subsoil assets (AN.212) Proven reserves of mineral deposits located on or 
below the earth's surface that are economically 
exploitable, given current technology and relative 
prices. Ownership rights to the subsoil assets are 
usually separable from those to the land itself. Subsoil 
assets consist of coal, oil and natural gas reserves, 
metallic mineral reserves and non-metallic mineral 
reserves, as defined below. 
Coal, oil and natural gas 
(AN.2121) reserves Anthracite, bituminous and brown coal deposits; 
petroleum and natural gas reserves and fields. 
Metallic mineral reserves (AN.2122) 
Non-metallic mineral reserves (AN.2123) 
Non-cultivated biological resources (AN.213) 
Water resources (AN.214) Ferrous, non-ferrous and precious metal ore deposits. 
Stone quarries and clay and sand pits; chemical and 
fertilizer mineral deposits; salt deposits; deposits of 
quartz, gypsum, natural gem stones, asphalt and 
bitumen, peat and other non-metallic minerals other 
than coal and petroleum. 
Animals and plants that yield both once-only and 
repeat products over which ownership rights are 
enforced but for which natural growth and/or 
regeneration is not under the direct control, 
responsibility and management of institutional units. 
Examples are virgin forests and fisheries within the 
territory of the country. Only those resources that are 
currently, or are likely soon to be, exploitable for 
economic purposes should be included. 
Aquifers and other groundwater resources to the 
extent that their scarcity leads to the enforcement of 
ownership and/or use rights, market valuation and 
some measure of economic control. 
Intangible non-produced assets (AN.22) 
Patented entities (AN.221) Non-produced assets that are constructs of society. 
They are evidenced by legal or accounting actions, 
such as the granting of a patent or the conveyance of 
some economic benefit to a third party. Some entitle 
their owners to engage in certain specific activities and 
to exclude other institutional units from doing so 
except with the permission of the owner. Intangible 
non-produced assets consist of patented entities, leases 
and other transferable contracts, purchased goodwill 
and other intangible non-produced assets. 
Inventions in categories of technical novelty that, by 
law or by judicial decision, can be afforded patent 
protection. Examples include constitutions of matter, 
processes, mechanisms, electrical and electronic 
circuits and devices, pharmaceutical formulations and 
new varieties of living things produced by artifice. 
- 222 
Leases and 
(AN.222) other transferable contracts Leases or contracts where the lessee has the right to 
convey the lease to a third party independently of the 
lessor. Examples include leases of land and buildings 
and other structures, concessions or exclusive rights to 
exploit mineral deposits or fishing grounds, 
transferable contracts with athletes and authors and 
options to buy tangible assets not yet produced. 
Leases on the rental of machinery are excluded from 
non-financial intangible assets. 
Purchased goodwill (AN.223) The difference between the value paid for an 
enterprise as a going concern and the sum of its assets 
less the sum of its liabilities, each item of which has 
been separately identified and valued. The value of 
goodwill, therefore, includes anything of long-term 
benefit to the business that has not been separately 
identified as an asset, as well as the value of the fact 
that the group of assets is used jointly and is not 
simply a collection of separable assets. 
Other intangible 
(AN.229) non-produced assets Intangible non-produced assets' not elsewhere 
classified. 
Financial assets and liabilities (AF.) Financial assets are economic assets comprising 
means of payment, financial claims and economic 
assets which are close to financial claims in nature. 
Means of payment consist of monetary gold, special 
drawing rights, currency and transferable deposits. 
Financial claims entitle their owners, the creditors, to 
receive a payment or series of payments without any 
counter-performance from other institutional units, 
the debtors, who have incurred the counterpart 
liabilities. 
Monetary gold and SDRs (AF.l) 
Monetary gold (AF.ll) Examples of economic assets which are close to 
financial claims in nature are financial derivatives 
and shares and other equity. 
The financial assets classified in this category are the 
only financial assets for which there are no 
counterpart liabilities in the System. 
Gold held as a component of foreign reserves by 
monetary authorities or by others who are subject to 
the effective control of the authorities. 
Special drawing rights (SDRs) (AF.12) 
Currency and deposits (AF.2) 
Currency (AF.21) International reserve assets created by the 
International Monetary Fund (IMF) and allocated to 
its members to supplement existing reserve assets. 
Currency in circulation and all types of deposits in 
national and in foreign currency. 
Notes and coins in circulation that are commonly 
used to make payments. 
2?3 
Transferable deposits (AF.22) Deposits (in national or in foreign currency) which 
are immediately convertible into currency or which 
are transferable by cheque, banker's order, debit entry 
or the like, both without any kind of significant 
restriction or penalty. 
Other deposits (AF.29) Deposits (in national or in foreign currency) other 
than transferable deposits. Other deposits cannot be 
used to make payments at any moment and they are 
not convertible into currency or transferable deposits 
without any kind of significant restriction or penalty. 
Securities other than shares (AF.3) Financial assets which are bearer instruments, are 
usually negotiable and traded on secondary markets 
or can be offset on the market, and do not grant the 
holder any ownership rights in the institutional unit 
issuing them. 
Securities other than shares, 
excluding financial derivatives (AF.33) Securities other than shares which give the holder the 
unconditional right to a fixed or contractually 
determined variable money incorrie in the form of 
coupon payments (interest) and/or a stated fixed sum 
on a specified date or dates or starting from a date 
fixed at the time of issue. 
Short-term securities other than shares, 
excluding financial derivatives (AF.331) Securities other than shares, whose original maturity 
is normally one year or less and in exceptional cases 
two years at the maximum, except financial 
derivatives. 
Long-term securities other than shares, 
excluding financial derivatives (AF.332) Securities other than shares, whose original maturity 
is normally more than one year, and in exceptional 
cases more than two years at the minimum, except 
financial derivatives. 
Financial derivatives (AF.34) Financial assets based on or derived from a different 
underlying instrument. The underlying instrument is 
usually another financial asset, but may also be a 
commodity or an index. 
Loans (AF.4) Financial assets created when creditors lend funds to 
debtors, either directly or through brokers, which are 
either evidenced by non-negotiable documents or not 
evidenced by documents. 
Short-term loans (AF.41) Loans whose original maturity is normally one year 
or less, and in exceptional cases two years at the 
maximum, and loans repayable on demand. 
Long-term loans (AF.42) Loans whose original maturity is normally more than 
one year, and in exceptional cases more than two 
years at the minimum. 
Shares and other equity (AF.5) Financial assets which represent property rights on 
corporations or quasi-corporations. These financial 
assets generally entitle the holders to a share in the 
profits of the corporations or quasi-corporations and 
to a share in their own funds in the event of 
liquidation. 
224 -
Shares and other equity, 
excluding mutual funds shares (AF.51) 
Quoted shares, 
excluding mutual funds shares (AF.511) 
Unquoted shares, 
excluding mutual funds shares (AF.512) 
Other equity (AF.513) Financial assets except mutual fund shares which 
represent property rights on corporations or quasi-
corporations. These financial assets generally entitle 
the holders to a share in the profits of the 
corporations or quasi-corporations and to a share in 
their own funds in the event of liquidation. 
Shares cover beneficial interest in the capital of 
corporations in the form of securities which in 
principle are negotiable. Quoted shares cover those 
shares with prices quoted on a recognized stock 
exchange or other form of secondary market. 
Unquoted shares cover those shares that are not 
quoted. 
All forms of equity other than those classified in sub-
positions AF.511 and AF.512, and in sub-category 
AF.52. 
Mutual funds shares (AF.52) Shares issued by a specific type of financial 
corporation, whose exclusive purpose is to invest the 
funds collected on the money market, the capital 
market and/or in real estate. 
Insurance technical reserves (AF.6) 
Net equity of households in life insurance reserves 
and in pension funds reserves (AF.61) Technical provisions of insurance corporation _.d 
(autonomous and non-autonomous) pension funds 
against policy holders or beneficiaries as laid down in 
Council Directive 91/674/EEC of 19 December 1991 
on the annual accounts and consolidated accounts of 
insurance undertakings. 
Technical provisions set aside in the corporations and 
quasi-corporations concerned for the purpose of 
satisfying, once the established conditions are met, 
the claims and benefits foreseen. 
Net equity of households in life insurance 
reserves (AF.611) 
Net equity of households in pensions funds 
reserves (AF.612) Technical provisions against outstanding risks and 
technical provisions for with-profit insurance that add 
to the value on maturity of with-profit endowments 
or similar policies. 
Technical provisions held by autonomous and non-
autonomous pension funds established by employers 
and/or employees or groups of self-employed to 
provide pensions for employees or self-employed. 
225 
(15) 
Prepayments of insurance premiums and 
reserves for outstanding claims (AF.62) 
Other accounts receivable/payable (AF.7) 
Trade credits and advances (AF.71) Technical provisions established by insurance 
corporations and (autonomous and non-autonomous) 
pension funds for 
- the amount representing that part of gross 
premiums written which is to be allocated to the 
following accounting period (prepayments of 
insurance premiums); 
- the total estimated ultimate cost of settling all 
claims arising from events which have occurred up 
to the end of the accounting period, whether 
reported or not, less amounts already paid in 
respect of such claims (provisions for outstanding 
claims). 
Financial claims which are created as a counterpart of 
a financial or a non-financial transaction in cases 
where there is a timing difference between this 
transaction and the corresponding payment. 
Financial claims arising from the direct extension of 
credit by suppliers and buyers for goods and services 
transactions and advance payments for work that is in 
progress or to be undertaken and associated with such 
transactions. 
Other accounts receivable/payable, 
excluding trade credits and advances (AF.79) 
Memorandum items Financial claims which arise from timing differences 
between distributive transactions or financial 
transactions on the secondary market and the 
corresponding payment. It includes also financial 
claims due to income accruing over time. 
The System calls for several memorandum items to 
show assets not separately identified in the central 
framework that are of more specialized analytic 
interest. 
Consumer durables (AN.m) 
Direct foreign investment (AF.m) Durable goods acquired by households for final 
consumption (i.e. those that are not used by 
households as stores of value or by unincorporated 
enterprises owned by households for purposes of 
production). 
Direct foreign investment involves a long-term 
relationship reflecting a lasting interest of a resident 
institutional unit in one economy ("direct investor") 
in an institutional unit resident in an economy other 
than that of the investor ("direct investment 
enterprise"). The direct investor's purpose is to exert a 
significant degree of influence on the management of 
the enterprise resident in the other economy. 
-226 
Annex 2 
A MAP OF ENTRIES FROM OPENING BALANCE SHEET TO CLOSING BALANCE SHEET 
Classification of Assets, 
Liabilities, and Net Worth 
Non-financial assets 
Produced assets 
Fixed assets 1/ 
Tangible fixed assets 
Dwellings 
Other buildings and 
structures 
Machinery and 
equipment 
Cultivated assets 
Intangible fixed assets 
Inventories 
Valuables 
Non-produced assets IV.1 
Opening 
Balance Sheet 
AN. 
AN.1 
AN.11 
AN.111 
AN.1111 
AN.1112 
AN.1113 
AN.1114 
AN.112 
AN.12 
AN.13 
AN.2 111.1 
Transactions 
P.5, K.1, K.2 
P.5, K.1 
P.51, K.1 
P.511, K.1 
P.511, K.1 
P.511, K.1 
P.511, K.1 
P.511, K.1 
P.512, K.1 
P.52 
P.53 
K.2, P.513, 
K.1 III.3.1 
Other changes 
in volume 
K.3, K.4, K.5, 
K.6, K.7, K.8, 
K.9, K.12.1, 
K.12.22 
K.4, K.7, K.8, 
K.9, K.12.1, 
K.12.22 
K.4, K.7, K.8, 
K.9, K.12.1, 
K.12.22 
K.4, K.7, K.8, 
K.9, K.12.1, 
K.12.22 
K.4, K.7, K.8, 
K.9, K.12.1, 
K.12.22 
K.4, K.7, K.8, 
K.9, K.12.1, 
K.12.22 
K.7, K.8, K.9, 
K.12.1, K.12.22 
K.7, K.8, K.9, 
K.12.1, K.12.22 
K.7, K.8, K.9, 
K.12.1, K.12.22 
K.7, K.8, K.9, 
K.12.1, K.12.22 
K.4, K.7, K.8, 
K.9, K.12.1, 
K.12.22 
K.3, K.5, K.61, 
K.62, K.7, K.8, 
K.9, K.12.1, 
K.12.22 III. 3.2 
Holding gains 
III.32.1 
Neutral 
Holding 
Gains and 
Losses 
K.ll.l 
K.ll.l 
K.l 1.1 
K.11.1 
K.ll.l 
K.11.1 
K.11.1 
K.11.1 
K.11.1 
K.11.1 
K.11.1 
K.11.1 III.3.2.2 
Real 
Holding 
Gains and 
Losses 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
K.11.2 IV.3 
Closing Ba­
lance Sheet 
AN. 
AN.1 
AN.11 
AN.111 
AN.1111 
AN.1112 
AN.1113 
AN.1114 
AN.112 
AN.12 
AN.13 
AN.2 
1/ Memorandum item : AN.m Consumer durables. 
227-
A MAP OF ENTRIES FROM OPENING BALANCE SHEET TO CLOSING BALANCE SHEET 
Classification of Assets, 
Liabilities, and Net Worth 
Tangible non-produced 
assets 
Land 
Subsoil assets 
Non-cultivated biological 
resources 
Water resources 
Intangible non-produced 
assets 
Financial 
assets/liabilities 1/ 
Monetary gold and SDRs 
(assets only) 
Currency and deposits 
Securities other than shares IV.1 
Opening 
Balance Sheet 
AN.21 
AN.211 
AN.212 
AN.213 
AN.214 
AN.22 
AF. 
AF.1 
AF.2 
AF.3 111.1 
Transactions 
K.21, P.513, 
K.1 
K.21, P.513, 
K.1 
K.21, P.513, 
K.21, P.513, 
K.21, P.513, 
K.22, P.513, 
F. 
F.1 
F.2 
F.3 111.3.1 
Other changes 
in volume 
K.3, K.5, K.61, 
K.62, K.7, K.8, 
K.9, K.12.1, 
K.12.22 
K.3, K.62, K.7, 
K.8, K.9, 
K.12.1, K.12.22 
K.3, K.61, K.62, 
K.7, K.8, K.9, 
K.12.1, K.12.22 
K.3, K.5, K.61, 
K.62, K.7, K.8, 
K.9, K.12.1, 
K.12.22 
K.3, K.61, K.62, 
K.7, K.8, K.9, 
K.12.1, K.12.22 
K.3, K.62, K.7, 
K.8, K.9, 
K.12.1, K.12.22 
K.7, K.8, K.10, 
K.12.1, K.12.21, 
K.12.22 
K.7, K.8, K.10, 
K.12.1, K.12.21, 
K.12.22 
K.7, K.8, K.10, 
K.12.1, K.12.22 
K.7, K.8, K.10, 
K.12.1, K.12.22 III. 3.2 
Holding gains 
III.3.2.1 
Neutral 
Holding 
Gains and 
Losses 
K.11.1 
K.11.1 
K.11.1 
K.11.1 
K.11.1 
K.11.1 
K.11.1 
K.11.1 
K.11.1 
K.11.1 Hl.3.2.2 
Real 
Holding 
Gains and 
Losses 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
K.11.2 IV.3 
Closing Ba­
lance Sheet 
AN.21 
AN.211 
AN.212 
AN.213 
AN.214 
AN.22 
AF. 
AF.1 
AF.2 
AF.3 
1/ Memorandum item : AF.m Direct foreign investment. 
-228 
A MAP OF ENTRIES FROM OPENING BALANCE SHEET TO CLOSING BALANCE SHEET 
Classification of Assets, 
Liabilities, and Net Worth 
Loans 
Shares and other equity 
Insurance technical 
reserves 
Other accounts 
receivable/payable 
Net worth IV. 1 
Opening 
Balance Sheet 
AF.4 
AF.5 
AF.6 
AF.7 
B.90 111.1 
Transactions 
F.4 
F.5 
F.6 
F.7 
B.10.1 111.3.1 
Other changes 
in volume 
K.7, K.8, K.10, 
K.12.1, K.12.22 
K.7, K.8, K.10, 
K.12.1, K.12.22 
K.7, K.8. K.10, 
K.12.1, K.12.22 
K.7, K.8, K.10, 
K.12.1, K.12.22 
B.10.2 III, 3.2 
Holding gains 
III.32.1 
Neutral 
Holding 
Gains and 
Losses 
K.11.1 
K.11.1 
K.11.1 
K.11.1 
B.10.31 III.3.2.2 
Real 
Holding 
Gains and 
Losses 
K.11.2 
K.11.2 
K.11.2 
K.11.2 
B.10.32 IV.3 
Closing Ba­
lance Sheet 
AF.4 
AF.5 
AF.6 
AF.7 
B.90 
AN-. ..., AF. ... are from Classification of assets. 
Balancing items Other accumulation entries 
B.10.1 Changes in net worth due to saving and 
capital transfers 
B.10.2 Changes in net worth due to other changes 
in volume of assets 
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.90 Net worth 
Transactions in financial assets and liabilities 
F. Transactions in financial assets and liabilities 
F.1 Monetary gold and SDRs 
F.2 Currency and deposits 
F.3 Securities other than shares 
F.4 Loans 
F.5 Shares and other equity 
F.6 Insurance technical reserves 
F.7 Other accounts receivable/payable 
Transactions in goods and services 
P.5 Gross capital formation 
P.51 Gross fixed capital formation 
P.511 Acquisitions less disposals of tangible fixed assets 
P.512 Acquisitions less disposals of intangible fixed 
assets 
P.513 Additions to the value of non-produced 
non-financial assets 
P.52 Changes in inventories 
P.53 Acquisitions less disposals of valuables K.1 
K.2 
K.21 
K.22 
K.3 
K.4 
K.5 
K.61 
K.62 
K.7 
K.8 
K.9 
K.10 
K.11 
K.l 1. 
K.11. 
K.12 
K.12. 
K.12. 
K.12. Consumption of fixed capital 
Acquisitions less disposals of non-financial 
non-produced assets 
Acquisitions less disposals of land and other 
tangible non-produced assets 
Acquisitions less disposals of intangible non-produced 
assets 
Economic appearance of non-produced assets 
Economic appearance of produced assets 
Natural growth of non-cultivated biological resources 
Depletion of natural assets 
Other economic disappearance of non-produced assets 
Catastrophic losses 
Uncompensated seizures 
Other volume changes in non-financial assets n.e.c. 
Other volume changes in financial assets and 
liabilities n.e.c. 
Nominal holding gains/losses 
1 Neutral holding gains/losses 
2 Real holding gains/losses 
Changes in classifications and structure 
1 Changes in sector classification and structure 
21 Monetization/demonetization of gold 
22 Changes other than monetization/demonetization of gold 
in classifications of assets or liabilities 
-229 
CHAPTER VIII 
SEQUENCE OF ACCOUNTS AND BALANCING ITEMS 
- *3o -23 1 -
INTRODUCTION 
8.01. The ESA records flows and stocks in an ordered set of accounts describing the economic 
cycle from the generation of income, through its distribution and redistribution and finally 
to its accumulation in the form of assets. 
8.02. Each of the accounts shows transactions which balance out, either because of the 
definitions used or because a significant balance is carried forward to the next account. 
8.03. The structured recording of transactions according to a logical analysis of economic life 
provides the aggregates required for the study of an industry, an institutional sector or sub-
sector, or the total economy. The breakdown of the accounts was designed to reveal the 
most significant economic information. 
8.04. The accounts are grouped in three categories: 
- current accounts . 
- accumulation accounts 
- balance sheets. 
Current accounts concern the generation, distribution and redistribution of income and its 
use in the form of final consumption. Finally, they permit the calculation of saving, which 
is an essential factor in accumulation. 
Accumulation accounts analyse the various components of changes in the assets and 
liabilities of the various units and enable changes in net worth (the difference between 
assets and liabilities) to be recorded. 
Balance sheets show the total assets and liabilities of the various units at the beginning and 
the end of the accounting period, together with their net worth. The flows for each asset 
and liability item recorded in the accumulation accounts are seen again in the changes in 
balance sheets account. 
8.05. The sequence of accounts applies, wholly or partly, to institutional units, institutional 
sectors and sub-sectors, industries and the total economy. 
8.06. The balancing items are established both gross and net. They are gross if calculated before 
deduction of consumption of fixed capital and net if calculated after this deduction. It is 
more significant to express income balancing items in net terms. 
8.07. The accounts are presented in various ways: 
- in the form of integrated economic accounts, showing the accounts for all the 
institutional sectors, the total economy and the rest of the world in a single table; 
- in the form of a sequence of accounts, giving more detailed information. The tables 
showing the presentation of each account are given in the section of this chapter entitled 
"Sequence of accounts"; 
- in the form of matrices, in which each account is represented by a row/column pair. 
8.08. Synoptic presentation of the accounts, balancing items and main aggregates: 
232 
Synoptic presentation of the accounts, balancing items and main aggregates 
Balancing items Main aggregates 
Full sequence of accounts for institutional sectors 
Current 
accounts Production 
account 
Distribution and 
use of income 
accounts 
H.4. -
II.4.1. Production 
account 
Primary 
distribution of 
income accounts 
Secondary distribution 
of income account 
Redistribution of income 
in kind account 
Use of income account 
Use of disposable 
income account 
Use of adjusted disposable 
income account nil. 
II.1.2. Generation of 
income account 
Allocation of 
primary income 
account B.l 
B.2 
B.3 
II. 1.2.1. Entrepreneurial 
income account 
II. 1.2.2. Allocation of 
other primary 
income account 
B.6 
B.7 
B.8 Operating surplus 
Mixed income 
Entrepreneurial income 
Balance of primary incomes 
Disposable income 
Adjusted disposable income 
Saving Domestic product 
(GDP/NDP) 
National income (GNI.NNI) 
National disposable income 
National saving 
no Accumulation 
accounts Accumulation 
accounts 
III.2. 
III.3. Capital account 
Financial account 
Other changes in 
assets accounts III. 1.2. 
III.3.1. Change in net worth due to 
saving and capital 
transfers account 
Acquisition of non financial assets account 
Other changes in 
volume of assets 
account 
Revaluation 
accounts III.3.2.I. Neutral holding 
gains/losses 
IH.3.2.2. Real holding gains/ 
losses B.10.1 Changes in net worth, due 
to saving and capital 
transfers 
B.9 Net lending/Net borrowing 
B.9 Net lending/Net borrowing 
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 
Balance 
sheets Balance sheets IV. 1. Opening balance sheet 
IV.2. Changes in balance sheet 
IV.3. Closing balance sheet B.90 
B.10 
B.90 Net worth 
Changes in net worth, total 
Net worth National worth 
Changes in national worth 
National worth 
0. Goods and 
services account Transaction accounts 
Goods and services 
account National expenditure 
Current 
accounts 
Accumulation 
accounts 
Balance sheets Rest of the world account (external transactions account) 
Rest of the world 
account V.I. 
VII. 
v.m. External account of 
goods and services 
External account of 
primary income and 
current transfers 
External 
accumulation V. Ill. 1. Capital account 
V.IV. External assets and 
liabilities account V.III.2. 
V.III.3. 
V.IV. I. 
V.IV.2. 
V.IV.3. Financial account 
Other changes in 
assets account 
Opening balance 
sheet 
Changes in 
balance sheet 
Closing balance 
sheet V.III.1.1. Changes in net worth 
to saving and capital 
transfers account 
V.III. 1.2. Acquisition of non fin 
cial assets account 
V.III.3.1. Other changes in 
volume of assets 
V.HI.3.2. Revaluation 
accounts B.l 1 External balance of goods 
and services 
B. 12 Current external balance 
B.10.1 Changes in net worth due 
to current external balance 
and capital tranfers 
B.9 Net lending/Net borrowing 
B.9 Net lending/Net borrowing 
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 
neutral holding gains/losses 
real holding gains/losses 
B.90 Net worth 
B.10 Changes in net worth 
B.90 Net worth External balance of goods 
and services 
Current external balance 
Net lending/Net borrowing 
Net external financial position 
Net external financial position 
SEQUENCE OF ACCOUNTS 
8.09. The sequence of accounts is composed of three main categories of accounts: 
Current accounts 
- production account (I) 
- distribution and use of income accounts (II) 
Accumulation accounts (III) 
Balance sheets (IV) 
Current accounts 
Production account (I) 0) 
8.10. The production account (I) shows the transactions relating to the production process 
proper. It is drawn up for institutional sectors and for industries. Its resources include 
output and its uses include intermediate consumption. 
8.11. The production account can be used to obtain one of the most important balancing items in 
the system - value added, or the value generated by any unit engaged in a production 
activity - and a vital aggregate: gross domestic product. Value added is economically 
significant for both the institutional sectors and the industries. 
8.12. As with the balancing items of the following accounts, value added (the balancing items of 
the account) may be calculated before or after consumption of fixed capital, i.e. gross or 
net. Given that output is valued at basic prices and intermediate consumption at purchaser's 
prices, value added does not include taxes less subsidies on products. 
8.13. The production account at the level of the total economy includes in resources, in adddition 
to the output of goods and services, taxes less subsidies on proe acts. It thus enables gross 
domestic product (at market prices) to be obtained as a balancing item. 
8.14. As financial intermediation services indirectly measured (FISIM) are not allocated to user 
sectors, 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 to intermediate consumption. In this way, the value added of all sectors 
and industries together is reduced in total by this amount. To lighten the presentation of 
accounts, it is possible not to insert a supplementary column for the nominal sector, but 
instead to take into account the corresponding figure in the column total economy. 
C' See chapter III "Transactions in products". 
234-
Uses Account I: Production account 
S.14 S.13 S.12 S.ll Resources 
S.l S.15 S.ll S.12 S.13 S.14 S.15 S.l 
Corres-port^ing 
entries of the Non-
Finan- finan-
General cial cial 
House- govern- corpo- corpo- Transactions and 
Total Goods Rest 
and Of the Total 
services world eco-
account account nomy NPISHs holds ment rations rations balancing items Non-
finan- Finan­
cial cial General Total 
corpo- corpo- govern- House- eco-
rations rations ment holds NPISHs nomy Cort^pottdtng 
entries of U» 
Rest' '""(^'o'ods"1 
oithe mi 
wûritf services 
account account Total 
3,595 3,595 P.l Output I 753 102 434 1269 37 3,595 3,595 
3,048 3,048 P.ll Market output / FISIM 1722 102 74 1 129 21 3,048 3,048 
P. 12 Output for own final use 171 171 31 140 0 171 171 
P. 13 Other non-market output 376 376 360 16 376 376 
1,904 1,904 694 246 29 881 P.2 Intermediate consumption / FISIM 1,904 
133 
1,824 133 D.21-D.31 Taxes less subsidies on products 133; 133 
1,824 31 575 73 872 B.lg/B.l*g Value added, gross/gross domestic product 
222 222 42 30 10 137 K.1 Consumption of fixed capital 
1,602 1,602 28 533 158 63 735 B.ln/B.l*n Valueadded.net/netdomesticproduct 
P.l 1 Financial corporations : 102 including 48 for FISIM (P.l 19) 
P.2 Total economy : 1904 corresponding to the sum of institutional sectors (1856) and to FISIM ( 48) 
Big Total economy : 1824 corresponding to the sum of institutional sectors (1739),plus taxes less subsidies on products (133) less FISIM (48) 
Distribution and use of income accounts (11)0) 
8.15. Distribution and use of income is analysed in four stages: primary distribution, secondary 
distribution, redistribution in kind and use of income. 
The first stage concerns the generation of income resulting directly from the production 
process and its distribution between the production factors (labour, capital) and general 
government (via taxes on production and imports, and subsidies). It enables the operating 
surplus (or mixed income in the case of households) and primary income to be determined. 
The second stage traces redistribution of income via transfers other than social transfers in 
kind. This yields the disposable income. 
The third stage describes redistribution via social transfers in kind, yielding the adjusted 
diposable income. 
The fourth stage describes how the income is consumed and saved, yielding the saving. 
Primary distribution of income accounts (II. 1) 
Generation of income account (II.1.1.) 
The layout of the generation of income account by institutional sector is as shown in the table: 
8.16. The generation of income account is also presented by industries, in the columns of the 
supply and uses tables. 
8.17. The generation of income account presents the sectors, sub-sectors and industries which are 
the source, rather than the destination, of primary income. 
8.18. It analyses the extent to which value added can cover compensation of employees and taxes 
less subsidies on production. It measures the operating surplus, which is the surplus (or 
deficit) on production activities before account has been taken of the interest, rents or 
charges which the production unit: 
- must pay on financial assets or on tangible non-produced assets which it has borrowed 
or rented; 
- must receive on financial assets or on tangible non-produced assets of which it is the 
owner. 
The operating surplus corresponds to the income which the units obtain from their own use 
of their production facilities. It is the last balancing item which can be calculated for both 
the industries and the institutional sectors and sub-sectors. 
8.19. In the case of unincorporated enterprises in the households sector, the balancing item of the 
generation of income account implicitly contains an element corresponding to 
remuneration for work carried out by the owner or members of his family which cannot be 
distinguished from his profits as entrepreneur. This is referred to as "mixed income". 
8.20. In the case of own account production of accommodation services by owner-occupier 
households, the balancing- item of the generation of income account is an operating surplus. 
' ' Sec chapter IV "Distributive transactions" 
236-
Account 11.1.1: Generation of income account 
r^rrwporKjIrtg 
entries <tf tria i 
Good»' ::':Hea 
:3èctiùrtt:j: •mmm 
fiâctsàit Total 
eco­
nomy House­
holds General 
govem­
ment Finan­
cial 
corpo­
rations S.11 
Non-
finan­
cial 
corpo­
rations Transactions and 
balancing Items 
B.1g/B.1*g Value added, gross/ gross domestic product 
B.1n/B.1*n Value added, net/net domestic product Resources 
S.11 
Non-
flnan-
clal 
corpo­
rations 
872 
D.1 
D.11 
D.12 
D.121 
D.122 
D.2 
D.21 
D.211 
D.212 
D.2121 
D.2122 
D.214 
D.29 
D.3 
D.31 
D.311 
D.319 
D.39 
B.2g 
B.3g 
B.2n Compensation of employees 
Wages and salaries 
Employers' social contributions 
Employers' actual social contributions 
Employers' imputed social contributions 
Taxes on production and imports 
Taxes on products 
Value added type taxes (VAT) 
Taxes and duties on imports excluding 
VAT 
Import duties 
Taxes on imports excluding VAT 
and duties 
Taxes on products except VAT 
and import taxes 
Other taxes on production 
Subsidies 
Subsidies on products 
Import subsidies 
Other subsidies on products 
Other subsidies on production 
Operating surplus, gross 
Mixed income, gross 
Operating surplus, net 
432 432 432 B.3n Mixed income, net Wïimml^Mi 
ifiécQ^'gSilaûtouftt 
•:-Mïiïrnïrn 
fit 1824 
"Ï6ÔF 
Allocation of primary income account (II.1.2) 
8.21. Unlike the generation account, the allocation of primary income account concerns the 
resident units and institutional sectors as recipients rather than producers of primary 
income. 
8.22. "Primary income" is the income which resident units receive by virtue of their direct 
participation in the production process, and the income receivable by the owner of a 
financial asset or a tangible non-produced asset in return for providing funds to, or putting 
the tangible non-produced asset at the disposal of, another institutional unit. 
8.23. The allocation of primary income account (II. 1.2) can be calculated only for the 
institutional sectors and sub-sectors because, in the case of industries, it is impossible to 
break down certain flows connected with financing (capital leans and borrowings) and 
assets. 
8.24. As financial intermediation sendees indirectly measured (FISIM) are not allocated to user 
sectors, the entries shown for interest are those for actual interest payable and receivable. 
An adjustment is made to resources in the column financial corporations (with a negative 
sign) and in the column nominal sector (with a positive sign). To lighten the presentation of 
accounts, it is possible not to insert a supplementary column for the nominal sector, but 
instead to present the corresponding figure in the column total economy. 
8.25. The allocation of primary income account is broken down into an entrepreneurial income 
account (II. 1.2.1) and an allocation of other primary income account (II. 1.2.2). 
238 -
Account 11.1.2: Allocation of primary income account 
iEOr^jp^n^gS:;:;:*: 
IX' > • • • J I I IXvliil "I" '" 
Total 
eco­
nomy House­
holds General 
govern­
ment Finan­
cial 
corpo­
rations Transactions and 
balancing Items 
1 633 B.2g Operating surplus, gross 
Mixed income, gross 
B.2n Operating surplus, net 
B.3n Mixed income, net 
Compensation of employees 
Wages and salaries 
Employers' social contributions 
Employers' actual social contributions 
Employers' imputed social contributions 
Taxes on production and imports 
Taxes on products 
Value added type taxes (VAT) 
Taxes and duties on imports excluding VAT 
Import duties 
Taxes on imports excluding VAT 
and duties 
Taxes on products except VAT and Import 
taxes 
Other taxes on production 
Subsidies 
Subsidies on products 
Import subsidies 
Other subsidies on products 
Other subsidies on production 
Property income 
Interest 
Adjustment FISIM 
Distributed income of corporations 
Dividends 
Withdrawals from income of quasi-corporations 
Reinvested earnings on direct foreign investment 
Property income attributed to insurance policy holders 
Rent 
TRa 
1 633 1 348 191 19 72 alance of primary incomes, gross/National income, 
gross 
B.5n/B.5* Balance of primary incomes, net/National Income, net Resources 
S.11 T.12 
Non-
finan­
cial 
corpo­
rations Finan­
cial 
corpo­
rations General 
govern- House-
ment holds Total 
eco-
NPISHs nomy Corfftspo^ifrsJ 
•aniftM-çf th* 
accourt. *ctoWnt 
The adjustment FISIM for Total economy (0) is the sum of Financial corporations sector (-48) 
and of the nominal sector (+48) 
Entrepreneurial income account (II.1.2.1) 
8.26. The purpose of the entrepreneurial income account is to determine a balancing item 
corresponding to the concept of current profit before distribution and income tax, as 
normally used in business accounting. 
8.27. In the case of general government and non-profit institutions serving households, this 
account concerns only their market activities. 
8.28. Entrepreneurial income corresponds to the operating surplus or mixed income (on the 
resources side): 
- plus property income receivable in connection with financial and other assets belonging 
to the enterprise (on the resources side); 
- minus interest on debts payable by the enterprise and rents payable on land and other 
non-produced tangible assets rented by the enterprise (on the uses side). 
Property income payable in the form of dividends or reinvested earnings on direct foreign 
investment is not deducted from entrepreneurial income. 
Allocation of other primary income account (II.1.2.2) 
8.29. The purpose of the allocation of other primary income account is to return from the concept 
of entrepreneurial income to the concept of primar> income. It therefore contains the 
elements of primary income not included in the entrepreneurial income account: 
- in the case of corporations, distributed dividends and reinvested earnings on direct 
foreign investment (on the uses side); 
- in the case of households: 
. property income payable, excluding rents and interest payable in connection with 
the entrepreneurial activity (on the uses side); 
. compensation of employees (on the resources side); 
. property income receivable, excluding that receivable in connection with the 
activity of the enterprise (on the resources side). 
- in the case of general government: 
. property income payable, excluding that payable in connnection with the market 
activities (on the uses side); 
. taxes on production and imports less subsidies (on the resources side); 
. property income receivable, excluding that receivable in connection with the 
market activities (on the resources side). 
240-
Accounts 11.1.2.1 Entrepreneurial income and 11.1.2.2 Allocation of other primary income 
Resources 
Accounts 
11.1.2.1. 
Entrepre 
neurial 
income S.1 
•Corrtspondlnfl 
•Goods .Rest 
*»b¥» »Mômft nomy S.15 S.14 S.13 S.12 S.11 
Total 
eco- House-
NPISHs holds Non-
Flnan- flnan-
Oeneral dal cial 
govern- corpo- corpo-
ment rations rations 
244 
160 
0 
11.1.2.2. 
Allocation 
of other 
primary 6 
income 
0 
0 
0 
0 
0_ 
202 
62 
120 
60 
60 
0 
20 
1855 
1633 m 217 
147 
0 102 
77 97 
257 
120 
m mi m m mi m Wi 
II m m 
W\ 
iii m IM mm mm mm 163 
59 
84 
60 
24 
0 
1855 
1633 20 37 
37 36 48 
36 48 
36 24 
0 24 
0 0 Transactions and 
balancing Items 
B.2g Operating surplus, gross 
B.3g Mixed income, gross 
B.2n Operating surplus, net 
B.3n Mlxedlncome.net 
D.4 Property income 
D.41 interest 
P.119 Adjustment FISIM 
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 policyholders 
D.45 Rent 
B.4g 
B.4n Entrepreneurial income, gross 
Entrepreneurial Income, net 
B.4g Entrepreneurial Income, gross 
B.4n Entrepreneurial Income, net 
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 S.11 
Non-
flnan-
dal 
rations 
276 
139 
~W 25 
3 
3 
0 
4 
5 
41 
257 
120 S.12 
Finan­
cial 
rations 
IT 
45 
^60" 
125 
-48 
25 
25 
0 
7 
0 
3 
65 
55 S.13 S.14 S.15 S.1 
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.214 Taxes on products except VAT, and Import 
taxes 
D.29 Other taxes on production 
D.3 Subsidies 
D.31 Subsidies on products 
D.311 Import subsidies 
D.319 Other subsidies on products 
D.39 Other subsidies on production General 
govem­
ment 
46~ 
16 
T 
0 
4 
4 
0 
0 
0 
0 
235 
141 
121 
17 
17 
0 
3 
94 
-44 
1390 
1348 221 
191 29 
19 209 
72 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 policyholders 
D.45 Rent 
B.5g/B. Balance of primary incomes, gross/National income, gross 
B.5n/B. Balance of primary Incomes, net/National Income, net 26 
12 
14 
1 
13 House­
holds 
92~ 
442 
60 
432_ 
5 
0 
5 
5 
0 
532 
490 
"756"" 573 
193 
174 
19 
129 
33 
52 
8 
44 
3 
20 
21 Total 
eco-
NPISHs nomy 
8" 429* 
442 
5 217 
432 ;iji^tti;||!«iiii^;i Total 
247 
150 
0 
37 
37 
0 
11 
5 
44 
901 
679 
~7W 
573 
193 
174 
19 
235 
141 
121 
17 
17 
0 
3 
94 
«T -8 
0 
-8 
-36 
160 
50 
66 
9 
57 
3 
20 
21 21 
4 S 
0 
T 
Z 
û 
0 
D T 0 
o 
D 
6 
0 
0 
JL 
0 
0 
0 
0 
JL 
& 
« 
3 Accounts 
429 ' 11.1.2.1. 
442 Entrepre-
217 neurial 
432 income 
"26T 
166 
0 
42 
42 
0 
11 
5 
44 
901 11.1.2.2. 
679 Allocation 
768 of other 
575 primary 
193 income 
174 
19 
"235" 
141 
121 
17 
17 
0 
3 
94 *T 
-8 
0 
-8 
-36 
778" 
56 
78 
18 
60 
3 
20 
21 
Secondary distribution of income account (II.2) 
8.30. The secondary distribution of income account shows how the balance of the primary 
income of an institutional sector is allocated by redistribution: current taxes on income, 
wealth etc., social contributions and benefits (excluding social transfers in kind) and other 
current transfers. 
8.31. The balancing item of the account is disposable income, which reflects current transactions 
and explicitly excludes capital transfers, real holding gal is and losses and the 
consequences of events such as natural disasters. 
8.32. Social contributions are recorded^) on the uses side of the secondary distribution of income 
account of households and on the resources side of the secondary distribution of income 
account of the institutional sectors responsible for management of social insurance. When 
payable by employers for their employees, they are first included under compensation of 
employees, on the uses side of the employers' generation of income account, since they 
form part of wage costs; they are also recorded, as compensation of employees, on the 
resources side of the households' allocation of primary income account, since they 
correspond to benefits to households 
Redistribution of income in kind account (II.3) 
8.33. The redistribution of income in kind account gives a broader picture of households' income 
by including the flows corresponding to the use of individual goods and services which 
these households receive free of charge, i.e. social benefits in kind and transfers of 
individual non-market goods and services, these two categories of flows being grouped 
together under the concept of social transfers in kind. This facilitates comparisons over 
time when there are differences or changes in economic and social conditions, and 
supplements the analysis of the role of general government in the redistribution of income. 
8.34. Social transfers in kind are recorded on the resources side of the redistribution of income in 
kind account in the case of households, and on the uses side in the case of general 
government and non-profit institutions serving households. 
8.35. The balancing item in the redistribution of income in kind account is adjusted disposable 
income. 
' ' ' The social contributions shown on the uses side of the secondary distribution of income account of households are net of the service 
charges of the pension funds arid other insurance companies, all or part of whose resources are made up of actual social contributions. 
242-
(16) 
Account 11.2: Secondary distribution of income account 
Resources 
rv) Total Cort-0^MJftdtnu 
lu» IIIITIIIUJIIIIIIIIII 
and «| <h* 
$ftfvfe$ IH«WW 
««aw» Bccottft S.1 
Total 
eco­
nomy S.15 
NPISH S.14 S.13 S.12 
Finan-
Genera cial 
House- govern- corpo-
holds ment rations S.11 
Non-
finan­
cial 
corpo­
rations S.11 S.12 S.13 S.14 S.15 
Transactions and 
balancing items Non-
finan- Finan­
cial cial 
corpo- corpo­
rations rations Genera 
govern- House-
ment holds S.1 
Total 
eco­
nomy QofflMfpwding 
of (he BM 
aûcoUtt ôCCôurt 
B.5g/ 
B.5*g Balance of primary incomes, gross/National 
income, gross 
B.5n/ 
B.5*n Balance of primary incomes, net/National 
income, net 
^rrêTt^xeToTnncômë^ê^uîrelc™"™ 
Taxes on income 
Other current taxes 
Social contributions 
Actual social contributions 
Employers, actual social contributions 
Compulsory employers, actual social contnbutions 
Voluntary employers, actual social 
contributions 
Employees, social contributions 
Compulsory employees, social contributions 
Voluntary employees, social contributions 
Social contributions by self- and non-employed persons 
Compulsary social contributions by self-and non-employed persons 
Voluntary social contributions by self-
and non-employed persons 
mputed social contributions 
Social benefits other than social transfers in kind 
Social security benefits in cash 
Private funded social benefits 
Unfunded employee social benefits 
Social assistance benefits in cash 20 
15 76 
69 
7 
32 97 
85 
12 
32 iiinmii!M:-:-:mnt 
Other current transfers 
Net non-life insurance premiums 
Non-life insurance claims 
Current transfers within general government 
Current international cooperation 
Miscellaneous current transfers 
Disposable income, gross 
Disposable income, net 97 
85 
12 
32 
Account 11.3: Redistribution of income in kind account 
4> Uses Resources 
S.1 S.15 S.14 S.13 S.12 S.11 S.11 S.12 S.13 S.14 S.15 S.1 
ÛotfeSjMrKfcno; 
«rwteïofth» 
Sotxi* R«st 
«fid Oftr* Total 
services: wortd eco-
Total aécourit fcctourrt nomy Non-
Finan- flnan-
General cial cial 
House- govern- corpo- corpo-
NPISHs holds ment rations rations Cof«ïporidi^J:; 
Use of income account (II.4) 
8.36. For the institutional sectors with final consumption, the use of income account shows how 
disposable income (or adjusted disposable income) is divided between final consumption 
expenditure (or actual final consumption) and saving. 
8.37. In the system, only government, NPISHs and households have final consumption. In 
addition, the use of income account includes, for households and for pension funds, an 
adjustment item (D8 Adjustment for the change in the net equity of households on pension 
funds) which relates to the way that transactions between households and pension funds are 
recorded^1) 
Use of disposable income account (II.4.1) 
8.38. The use of disposable income account includes the concept of final consumption 
expenditure financed by the various sectors concerned: households, general government 
and non-profit institutions serving households. 
8.39. The balancing item in the use of disposable income account is saving. 
Use of adjusted disposable income account (II.4.2) 
8.40. The use of adjusted disposable income account includes the concept of actual final 
consumption, which corresponds to the value of the goods and services actually at the 
disposal of households for final consumption, even if their acquisition is financed by 
general government or non-profit institutions serving households. 
Consequently, the actual final consumption of general government corresponds only to 
collective final consumption. Since final consumption expenditure by non-profit 
institutions serving households is regarded as entirely individual, their actual final 
consumption is zero. 
8.41. At the level of the total economy, final consumption expenditure and actual final 
consumption are equal; it is only the distribution over the institutional sectors which 
differs. The same is true of disposable income and adjusted disposable income. 
8.42. Saving is the balancing item in both versions of the use of income account. Its value is 
identical for all sectors, regardless of whether it is obtained by subtracting final 
consumption expenditure from disposable income or by subtracting actual final 
consumption from adjusted disposable income. 
8.43. Saving is the (positive or negative) amount resulting from current transactions which 
establishes the link with accumulation. If saving is positive, non-spent income is used for 
the acquisition of assets or for paying off liabilities. If saving is negative, certain assets are 
liquidated or certain liabilities increase. 
' ' See chapter IV "Distributive transactions 
-245 
Account 11.4.1 : Use of disposable income account 
Resources 
ÇoKMponâmg 
•artriM-^rth^ 
•JSood* 8wt 
and ofihe Total 
jçfviqéï *K*ffl eco-
sçcouftt account nomy Flnan-
General cial 
House- govern- corpc-
NPISHs holds ment Non-
flnan-
dal 
corpo­
rations rations Transactions and 
balancing Kama 
B.6g Disposable Income, gross 
B.6n Disposable income, net 
D.8 Adjustment for the change in net equity 
of households on pension funds 
B.8g Saving, gross 
B.8n Saving, net 
B. 12 Current external balance Non-
finan­
cial 
corpo­
rations 
"l85 
48 
P.3 Final consumption expenditure 
P.31 Individual consumption expenditure 
P.32 Collective consumption expenditure Finan­
cial 
corpo­
rations 
~32 
22 General 
govem­
ment 
182 
352 House­
holds 
T787 
1 145 
11 NPISHs 
40 
37 Total 
eco­
nomy 
T826 
1 604 
11 $atretportdinq 
«ntnèa <tt to» 
fast 
Vtfrltf 
Mltllllllllll <ïooa$ 
1371 
1215 Total 
TJ26 
1 604 
1 371 
1 215 
156 
11 
O Account II.4.2: Use of adjusted disposable income account 
::Çi^$^ndi^:;SS:¥SJ: 
l^ilPlSïiiilll To,al 
;Wr^9«S;:ii;;;iir^lii: eco-Flnan-
General cial 
House- govern- corpc-
NPISHs holds ment Non-
finan­
cial 
corpo­
rations rations Transactions and 
balancing Items 
D.8 Adjustment for the change in net equity 
of households in pension funds Resources 
S.11 
Non-
finan-
cla! 
corpo­
rations 
B.7g Adjusted disposable income, gross 
B.7n Adjusted disposable income, net 
P.4 Actual finai consumption 
P.41 Actual individual consumption 
P.42 Actual collective consumption Finan­
cial 
corpo­
rations General 
govem­
ment House­
holds Total 
eco­
nomy :^^i»;B^i|^::;:g:::::;:g 
mmm. •BB lilt? 1 243 
156 
Accumulation accounts (111)0) 
8.44. The accumulation accounts are flow accounts. They record the various causes of changes 
in the assets and liabilities of units and the change in their net worth. 
8.45. Changes in assets are recorded on the left-hand side of the accounts (plus or minus), 
changes in liabilities and net worth on the right-hand side (plus or minus). 
Capital account (III.l) 
8.46. The capital account records acquisitions less disposals of non-financial assets by resident 
units and measures the change in net worth due to saving (final balancing item in the 
current accounts) and capital transfers. 
8.47. The capital account makes it possible to determine the extent to which acquisitions less 
disposals of non-financial assets have been financed out of saving and by capital transfers. 
It shows a net lending corresponding to the amount available to a unit or sector for 
financing, directly of indirectly, other units or sectors, or a net borrowing corresponding to 
the amount which a unit or sector is obliged to borrow from other units or sectors. 
Change in net worth due to saving and capital transfers account (III.l.1) 
8.48. This account makes it possible to determine the change in net worth due to saving and 
capital transfers, which corresponds to net saving plus capital transfers receivable, minus 
capital transfers payable. 
Acquisitions of non-financial assets account (III. 1.2) 
8.49. This account records acquisitions less disposals of non-financial assets in order to return 
from the concept of change in net worth due to saving and capital transfers to net lending 
or borrowing. 
Financial account (III.2) 
8.50. The financial account records, by type of financial instrument, the changes in the financial 
assets and liabilities that compose net lending or borrowing. 
8.51. The classification of assets and liabilities used in the financial account is identical to that 
used in the balance sheets. 
O See chapter V "Financial transactions" and chapter VI "Other flows" 
247 
Account 111.1.1 : Change in net worth due to saving and capital transfers account 
Changes in assets 
Total 
r\j 
00 Corresponding 
enlrtes of the 
Oocyte 
and 
atcourrf of the 
wôfW 
account S.1 
Total 
eco­
nomy S.15 
NPISH S.14 
House­
holds S.13 
Genera 
govern­
ment S.12 
Finan­
cial 
corpo­
rations S.11 
Non-
finan­
cial 
corpo­
rations Changes in liabilities and net worth 
Transactions and 
balancing Items 
B.8n Saving, net 
THT Current external balance 
D.9 
"DIT" Capital transfers, receivable 
Capital taxes 
TX9T Investment grants 
Other capital transfers" 
D.9 
TJST" 
"D~9T Capital transfers, payable 
Capital taxes, payable 
Investment grants, payable 
D.99 Other capital transfers, payable 
B. 10.1 Cnangestnnet worth duetosaving 
and capital transfers S.11 S.12 S.13 S.14 S.15 S.1 
Cûrfaapondîng 
srtfrtea-ofttie 
Account III.1.2 : Acquisition of non financial assets account 
Changes in assets 
17 
222 
28 
10 <ÎOff$$pôndlng 
entries ofttm, S.1 S.15 S.14 S.13 S.12 
Goods Rest 
arid Of ma Total 
Service w0CW eco-
Total aecoufl. accourt nomy 
17 
-222 -3 -42 -30 
28 
10 S.11 
Non-
Finan- finan-
Genera cial cial 
House- govern corpo- corpo-
NPISH holds ment rations rations 
17 Transactions and 
balancing Items Changes in liabilities and net worth 
S.11 S.12 S.13 s". 14 
Non-
flnan- Finan­
cial cial Genera 
corpo- corpo- govern House-
rations rations ment holds S.15 
NPISH S.1 
Total 
eco­
nomy enWwoffhs 
B. 10.1 Changes In net worth due to saving 
and capital transfers 
Gross^e^ôâpnano'rmation'' 65 -38 178 230 
TT5T 
"FTBTf 
P.5H1 
P.5H3 
P.512 Acquisitions less disposals of tangible fixed assets 
Acquisitions of new tangible fixed assets 
Acquisitions of existing tangible fixed assets 
-P3T7T 
P.5122 
P.5123 
P.513 
P.5131 
P.5132 Disposals of existing tangible fixed assets" 
Acquisitions less disposals of Intangible fixed assets ' 
Acquisitions of new intangible fixed assets 
Acquisitions of existing intangible fixed assets 
Disposals of existing intangible fixed assets 
Additions to the value of non-produced 
non-financial assets 
Major improvements to non-produced * 
non-financial assets 
Costs of ownership transfer on non-produced 
non-financial assets Rest Ôootfs 
OKU* Wt 
accptffl accourt 
' "'"&$' 
235-
sr 
•H+++W WMUHMit 
n Total 
192 
376 
303 
305 
TT~ 
—HT 
5T 
—5T 
22 
-10 -137 K.1 Consumption of fixed capital 
26 P.52 Changes in Inventories 
2_ 
-_7_ 
• 6 P.53 Acquisitions less disposals of valuables 
K.2 
"RTT 
"OF Acquisitions less disposals of non-produced 
non-financial assets 
Acquisitions less disposals of land and other 
tangible non-produced assets 
Acquisitions less disposals of intangible 
non-produced assets 
"5^9" Net lending (+) net borrowing (-f 
Account ltl.2: Financial account 
1 
ro 
O 
I Changes in assets 
46 Total <&>t>d> tt«M 
*nd afib* 
*«wit*i wMd :. eco-
Total *&8utti| »çç8kirl) ; nomy House­
holds General 
govem­
ment Non-
Finan- finan­
cial dal 
corpo- corpo­
rations ration* 
warn 43 29 Transaction» and 
balancing hams 
F.1 Monetary gold and SDRs 
F.2 Currency and deposits 
F.21 
F.3 
F.4 
F.41 
F.42 
F.6 
"rTSTT" 
F.612 
F.62 
F.71 
F.79 Currency 
F.22 Transferable deposits 
F.29 Other deposits 
Securities other than shares 
Loans 
Short-term 
Long-term 
F.5 Shares and other equity 
Insurance technical reserves 
Net equity of households 
in life Insurance reserves 
Net equity of households 
In pension funds 
Prepayment of premiums and reserves against 
outstanding claims ^ 
F.7 Other accounts receivable/payable 
Trade credits and advances 
Other accounts receivable/payable 
except trade credits and advances Changes in liabilities and net worth 
B.9 Net lending (+)/net borrowing (-) 
F Net acquisition of financial assets/ 
F Net incurrence of liabilities 
F.61 Net equity of households on life insurance 
reserves and In pension funds Non-
finan­
cial 
corpo­
rations 
"^69 
140 
71 
16 
55 
26 
37 
29 S.12 
Finan­
cial 
corpo­
rations 
232 
130 
35 
63 
32 
53 
13 
36 
33 
22 S.13 
General 
govem­
ment 
-50 
170 
64 
94 
32 
62 
10 House­
holds 
"l48 
33 NPISHs 
T 
28 
28 
17 24 
17 Total 
eco­
nomy 
38 
603 
132 
35 
65 
32 
123 
217 
76 
43 
36 
33 
22 
52 
18 
34 »Atoe*-of-th* 
ùfth* 
Iwftd; 
Ht 
IIIIIMIHtll 
+2 
x3 
•a? 
10 
27 
ma '$m 
am and 
ketvfctt 
«WW 
j,i.ti,i,i,i.'.i.na 
691 
130 
37 
29 
143 
254 
86 
168 
33 
22 
82 
36 
46 
Other changes in assets account (III.3) 
8.52. The other changes in assets account records changes in assets and liabilities of units, other 
than in connection with saving and voluntary transfers of wealth, these being recorded in 
the capital and financial accounts. It is divided into two: the other changes in volume of 
assets account (III.3.1) and the revaluation account (III.3.2). 
Other changes in volume of assets account (III.3.1) 
8.53. The movements recorded in the other changes in volume of assets account affect the net 
worth of the balance sheets of the units, sectors and sub-sectors concerned. This change, 
called change in net worth due to other volume changes of assets, is the balancing item in 
the account. 
Revaluation account (III.3.2) 
8.54. The revaluation account records changes in the value of assets and liabilities due to 
changes in their prices. 
For a given asset or liability, this change is measured as: 
- either the difference between its value at the end of the accounting period and its value 
at the start of the accounting period or the date on which it was first entered in the 
balance sheet, 
- or the difference between its value at the date on which' it was vvritten out of the balance 
sheet and its value at the start of the accounting pericd or the date on which it was first 
entered in the balance sheet. 
This difference is called "nominal holding gain (or loss)". 
A nominal holding gain corresponds to the positive revaluation of an asset or the negative 
revaluation of a (financial) liability. 
A nominal holding loss corresponds to the negative revaluation of an asset or the positive 
revaluation of a (financial) liability. 
8.55. The flows recorded in the revaluation account change the net worth of the balance sheets of 
the units concerned. This change, called "change in net worth due to. nominal holding gains 
and losses", is the balancing item in the account. It is recorded on the changes in liabilities 
and net worth side. 
8.56. The revaluation account is broken down into two sub-accounts: the neutral holding gains 
and losses account (III.3.2.1) and the real holding gains and losses account (III.3.2.2). 
251 -
Account III.3.1 : Other changes in volume of assets account 
Changes in assets 
S.1 S.15 S.14 S.13 S.12 S.11 
Corresponding 
entries-t>rM 
Goods Rest 
«rtd MM 
*e<v>aM <WMd 
account account Changes in liabilities and net worth 
sTî 
Transactions and 
balancing Items S.12 
Non-
rinan- Finan­
cial cial 
corpo- corpo­
rations rations S.13 
General -
govern­
ment S.14 
House­
holds S.15 S.1 
Total 
eco-
NPISHs nomy Corrwppndfns 
R«d GH»<j* 
recount account Total 
AN Non-financial assets 
AN.1 Produced assets 
K.4 Economic appearance of produced assets 
K.7 Catastrophic losses 
K.8 Uncompensated seizures 
K.9 Other volume changes in non-financial assets n.e.c. 
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 
ofwhich: 
AN.11 Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
K.3 Economic appearance of non-produced assets 
K.5 Natural growth of non-cultivated biological resorrces 
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.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.12.22 Changes in classification of assets or liabilities 
other than monetization/demonetization of gold 
of which: 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets/liabilities 
K.7 Catastrophic losses 
K.8 Uncompensated seizures 
K. 10 Other volume changes in financial assets and 
liabilities n.e.c. 
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 
ofwhich: 
AF.1 Monetary gold and SDRs 
Currency and deposits 
Securities other than shares 
Loans 
Shares and other equity 
Insurance technical reserves 
Other accounts receivable/payable AF.2 
AF.3 
AF.4 
AF.5 
AF.6 
AF.7 
B.10.2 Changes in net worth due to other 
changes In volume of assets 17 17 
Neutral holding gains and losses account (III.3.2.1) 
8.57. The neutral holding gains and losses account records changes in the value of assets and 
liabilities in proportion to changes in the general price level. Such changes correspond to 
the revaluation necessary to maintain the general purchasing power of assets and liabilities. 
The general index price to be applied for this calculation is the price index for final 
national uses, excluding changes in inventories. 
Real holding gains and losses account (HI.3.2.2) 
8.58. Real holding gains and losses measure the difference between nominal holding gains and 
losses and neutral holding gains and losses. 
8.59. If the nominal holding gains net of the nominal holding losses on a given asset exceed the 
neutral holding gains net of the neutral holding losses, there is a real holding gain on the 
asset for the unit holding it. This gain reflects the fact that the actual price of the asset has, 
on average, risen faster than the general price level. Conversely, a drop in the relative price 
of the asset produces a real holding loss for the unit holding it. 
By the same token, a rise in the relative price of a liability produces a real holding loss on 
liabilities, while a drop in the relative price of a liability generates a real holding gain on 
liabilities. 
- 253 -
Account 111.3.2: Revaluation account 
Changes in assets 
S.1 
Accounts 
lil.3.2. 
Revaluation 
account 
111.3.2.1. 
Neutral 
holding 
gains 
account 
III.3.2.2. 
Real 
holding 
gains 
account "550" 
126 
111 
7 
8 
154 
152 
2 
91 
12 
44 
34 
198 
121 
111 
5 
5 
78 
76 
1 
147 
15 
32 
28 
29 
28 
8 
7 
81 
5 
3 
2 
77 
76 
1 
-57 
-3 
-32 
17 
-29 
6 
-8 
-7 Corre»pondOT9 
«nttei-jBfftfr 
sand <rfHw Total 
stsrvKtt worid eco-
«bCOUM *dçtf<4ft nomy 
it 
• 2 
2 
3-
im iii; Hi 
til 
Wii "581T 
126 
111 
7 
8 
154 
152 
2 
84 
12 
40 
31 
198 
121 
111 
5 
5 
78 
76 
1 
136 
15 
30 
25 
28 
26 
7 
5 
81 
5 
3 
2 
77 
76 
1 
-52 
-3 
-30 
15 
-28 
5 
-7 
-5 S.15 S.14 
House­
holds S.13 S.12 
-2 
-2 35 
28 
2 
5 
45 
45 
6 
10 
56 
34 
28 
2 
4 
22 
22 
36 
17 
4 
8 
6 
1 
1 
22 
22 
"^20 
-17 
2 
2 
-6 
-1 "4T 
20 
18 
1 
1 
23 
23 
32 
20 
18 
1 
1 
12 
12 
12 
12 
12 
-"6 
-3 
-2 30 
16 
70 
14 
19 
24 
13 
1 
1 
1 
"Ï3 
-3 
11 
24 
3 
-1 S.11 
Nort-
Finan- finan-
Gerteral cial cial 
govern- corpo- corpo-
ment rations rations 
"TO" 
63 
58 
4 
1 
81 
80 
1 
101 
60 
58 
2 
1 
41 
40 
1 
43 
3 
40 
40 
^ÏÔ 
-8 
1 
-1 
1 
-1 
-3 Other flows and 
balancing items 
K. 11 Nominal holding gains / losses 
AN Non-financial assets 
AN.1 Produced assets 
AN.11 Fixed assets 
AN.12 Inventories 
AN. 13 Valuables 
AN-.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets/liabilities 
AF.1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and ofher equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable/payable 
B.10.3 Changes in net worth due to 
nominal holding gains/losses 
K.11.1 Neutral holding gains / losses 
AN Non-financial assets 
AN.1 Produced assets 
AN.11 Fixed assets 
AN. 12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets/liabilities 
AF.1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable/payable 
B.10.3 Changes in net worth due to 
neutral holding gains/losses 
K.11.2 Real holding gains / losses 
AN Non-financial assets 
AN.1 Produced assets 
AN.11 Fixed assets 
AN. 12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets/liabilities 
AF.1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares , 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable/payable 
B.10.3 Changes in net worth due to 
real holding gains/losses 
- 254 -
Changes in liabilities and net worth 
S.11 
Non-
finan­
cial 
corpo­
rations S.12 
Finan­
cial 
corpo­
rations S.13 
General 
govern­
ment S.14 S.15 
House­
holds S.1 
Total 
eco­
nomy CorrBspondwg 
«rttfiei j&f ihe 
fe& Oopds 
«Tttie a«t 
world ssfvices 
«fcC#Wrt $d$bu(>t Accounts 
Hl.3.2. 
Revaluation 
account 
51 76 78 
1 34 
16 17 42 
34 44 
34 
134 10 38 96 10 288 292 
111.3.2.1. 
Neutral 
holding 
gains 
account 
36 
1 
1 
18 
14 
3 
~82~ 68 
26 
21 126 
29 
26 
29 
28 
7 
6 
26 87 208 132 
32 
28 
29 
28 
8 
7 
214 
III.3.2.2. 
Real 
holding 
gains 
account 
-1 
1 
•18 
3 
-3 -17 
-26 
13 
3 
-7 -2 
3 
-7 
12 -3 50 
29 
16 
29 
6 
-7 
-6 
80 -54 
-32 
17 
-29 
6 
-8 
-7 
78 
- 255 -
Balance sheets (IV^1) 
8.60. The aim of the balance sheets is to give a picture of the assets, liabilities and net worth of 
units at the start and end of the accounting period and of changes between balance sheets. 
The sequence is as follows: 
- opening balance sheet (IV. 1) 
- changes in balance sheet (IV.2) 
- closing balance sheet (IV.3). 
Opening balance sheet (IV. 1) 
8.61. The opening balance sheet records the value of assets and liabilities held by units at the 
start of the accounting period. 
These items are categorized on the basis of the classification of assets and liabilities. 
They are valued at prices current at the start of the accounting period. 
The difference between assets and liabilities - the balancing item in the account - is the net 
worth at the start of the accounting period. 
Changes in balance sheet (IV.2) 
8.62. The changes in balance sheet account records changes in the value of assets and liabilities 
in the course of the accounting period and aggregates the amounts recorded in the various 
accumulation accounts, i.e. change in net worth due to saving and capital transfers, change 
in net worth due to other volume changes in assets and change in net worth due to nominal 
holding gains and losses. 
Closing balance sheet (IV.3) 
8.63. The closing balance sheet records the value of assets and liabilities held by units at the end 
of the accounting period. These items are categorized on the basis of the same 
classification used in the opening balance sheet and are valued at prices current at the end 
of the period. 
The difference between assets and liabilities is the net worth at the end of the accounting 
period. 
8.64. The value of an asset or liability in the closing balance sheets is equal to the sum of its 
value in the opening balance sheets and the amount recorded for the said item in the 
changes in balance sheet account. 
O See chapter VII "Balance sheets". 
- 2_SY - 257 -
Account IV: Balance sheets 
Accounts Total 
IV. 1. 
Opening 
balance 
sheet 
IV.Z 
Changes 
in 
balance 
sheet 
IV.3. 
Closing 
balance 
sheet 9 922 
6 047 
5 544 
231 
272 
3 875 
3 809 
66 
7 365 
770 
1 587 
1 388 
1 454 
1 409 
396 
361 
482 
289 
239 
34 
16 
193 
191 
2 
~ÏW 
19 
.130 
187 
250 
80 
38 
82 
10 404 
6 336 
5 783 
265 
288 
4 068 
4 000 
68 
8 152 
788 
1 717 
1 575 
1 704 
1489 
434 
443 Corresponding 
entries, of {hé 
Goods :Rest 
and tft&t* 
service, world: 
accourt accotât 
wm 
WÊÈ 
&Ï25S 
mm 
im$ii 
mm 
mm 
in mm mm 
WE S.1 
Total 
eco­
nomy 
9 922 
6 047 
5 544 
231 
272 
3 875 
3 809 
66 
6 792 
770 
1 482 
1 263 
1 384 
1 296 
370 
227 
482 
289 
239 
34 
16 
193 
191 
2 
TScT 
18 
119 
178 
240 
75 
38 
61 
mm mm Wm wm mm mm mm 10 404 
6 336 
5 783 
265 
288 
4 068 
4 000 
68 
7 522 
788 
1 601 
1441 
1 624 
1 371 
408 
288 S.15 
NPISH 
324 
243 
231 
2 
10 
81 
81 
172 
110 
25 
8 
22 
4 
3 
25 
21 
21 
33 
349 
264 
252 
2 
10 
85 
85 
205 
122 
38 
8 
23 
4 
11 S.14 
House­
holds 
2 822 
1 698 
1 423 
97 
178 
1 124 
1 124 
1819 
840 
198 
24 
411 
291 
55 
110 
61 
47 
4 
10 
49 
48 
1 
~Î99~ 
68 
35 
5 
13 
38 
40 
2 932 
1759 
1 470 
101 
188 
1 173 
1 172 
1 
2 018 
908 
233 
29 
424 
329 
95 S.13 
Genera 
govem­
ment 
1 591 
1 001 
913 
47 
41 
590 
578 
12 
396"" 
80 
150 
115 
12 
20 
19 
56 
25 
20 
1 
4 
30 
30 
123 
1 
7 
29 
45 
34 
1 647 
1 026 
933 
48 
45 
620 
608 
12 
519 
81 
157 
29 
160 
46 
20 
25 S.12 
Finan­
cial 
corpo­
rations 
Î44~ 
104 
99 
5 
40 
37 
3 
3 508 
690 
950 
1 187 
651 
30 
294 
17 
15 
80 
163 
19 
145 
103 
100 
3 
42 
38 
3 
3 802 
707 
15 
1030 
1 350 
670 
30 S.11 
Non-
finan­
cial 
corpo­
rations 
5 041 
3 001 
2 878 
85 
38 
2 040 
1 989 
51 
897~ 
382 
90 
50 
200 
25 
150 
290 
182 
150 
29 
3 
108 
108 
81 
17 
21 
27 
9 
5 331 
3 183 
3 028 
114 
41 
2 148 
2 097 
51 
978 
399 
111 
77 
209 
25 
157 Transactions, other flows, stocks 
and balancing items 
AN Non-financial assets 
AN.1 Produced assets 
AN.11 Fixed assets 
AN. 12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
"ÂF Financial assets/liabilities 
AF.1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable/payable 
B.90 Net worth 
Total changes in assets/liabilities: 
AN Non-financial assets 
AN.1 Produced assets 
AN.11 Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
"ÂF Financial assets/liabilities 
AF.1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable/payable 
B.10 Changes in net worth, total 
due to: 
B.10.1 Saving and capital transfers 
B.10.2 Other changes in volume of assets 
B.10.3 Nominal holding gains/losses 
B.10.31 Neutral holding gains/losses 
B.10.32 Real holding gains/losses 
AN Non-financial assets 
AN.1 Produced assets 
AN.11 Fixed assets 
AN. 12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets/liabilities 
AF.1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable/payable 
B.90 Net worth 
258 
Liabilities and net worth 
S.11 S.12 
Non-
finan- Finan­
cial cial 
corpo- corpo­
rations rations S.13 S.14 
Genera 
govern- House-
ment holds S.15 
NPISH S.1 
Total 
eco­
nomy Cwrespoodeig entries of fié 
Rest 
ofHw 
Tiyprld 
accourt Goods 
*ervice 
aasom Total Accounts 
1817 3 384 
40 
44 
897 
687 
12 
137 
4 121 1 281 
1 053 
715 
335 
268 687 
102 
212 
328 
4 
19 
22 289 
10 
2 
169 
108 
1 300 4 352 6 298 
1471 
1311 
1437 
1406 
371 
302 
"371 10 416 121 
38 
43 
5 
35 237 
37fe 6 595 
1 587 
1 388 
1454 
1 409 
396 
361 
10 692 IV. 1. 
Opening 
balance 
sheet 
155 
7 
68 
42 
37 
216 
65 
17 
134 
82 
51 285 
130 
87 
30 
38 
10 176 
2 
71 
93 
10 
~~2~ 
-38 
2 
38 
26 
12 33 
28 
276 
178 
2 
96 
87 
9 28 
24 
4 
31 
21 
10 
8 
2 677 
132 
165 
213 
77 
38 
52 
535 
230 
17 
288 
208 
80 M 
~% 
3? 
3 
~-34 767 
4 
-1 130 
187 
250 
80 
38 
82 
501 
192 
17 
292 
214 
78 IV.2. 
Changes 
in 
balance 
sheet 
1 972 
40 
51 
965 
729 
12 
174 
4 337 3 669 
1 411 
1 140 
745 
373 863 
104 
283 
421 
4 
19 
32 322 
10 
2 
197 
113 149 
38 
67 
4 
5 
35 6 975 
1 603 
1476 
1 650 
1483 
409 
354 
278 1 302 4 628 406 10 951 144 
S£r 
£4 7 362 IV.3. 
1717 
1575 
1704 
1489 
434 
443 
11 193 Closing 
balance 
sheet 
- 259 -
(17) 
REST OF THE WORLD ACCOUNTS (V) 
8.65. The rest of the world accounts record transactions between resident and non-resident units. 
The rest of the world does not constitute an institutional sector as such, but in the structure 
of the system it plays a similar role. 
8.66. The sequence of rest of the world accounts follows the same general pattern as the 
institutional sector accounts, i.e.: 
- current accounts 
- accumulation accounts 
- balance sheets. 
8.67. These accounts are drawn up from the point of view of the rest of the world. Thus, what is 
a resource for the rest of the world is a use for the total economy and vice versa. By the 
same token, a financial asset held by the rest of the world is a liability for the total 
economy and vice versa (except monetary gold and special drawing rights). 
Current accounts 
External account of goods and services (V.l) 
8.68. Imports of goods and services are recorded on the resources side of the account and exports 
of goods and services on the uses side. The difference between resources and uses is the 
balancing item in the account, called " external balance of goods and services". If it is 
positive, there is a surplus for the rest of the world and a deficit for the total economy and 
vice versa if it is negative. 
8.69. In order to be consistent with measures of the output of resident units, imports are valued at 
an equivalent of the basic price, i.e. net of import taxes but including import subsidies. 
Imports of goods recorded in the external account of goods and services are valued fob, i.e. 
at the border of the country of export. Exports of goods are also valued fob. 
When transport and insurance services included in the fob value of imports of goods (i.e. 
between the factory and the border of the country of export) are provided by resident units, 
they must be included in the value of exports of services by the economy importing the 
goods. Conversely, when transport and insurance services included in the fob value of 
exports of goods are provided by non-resident units they must be included in the value of 
imports of services by the economy exporting the goods. 
External account of primary incomes and current transfers (V.2) 
8.70. The purpose of the external account of primary incomes and current transfers is lo 
determine the current external balance, which, in the structure of the system, corresponds to 
saving by the institutional sectors. This account is a condensed version of the sequence, for 
an institutional sector, extending from the allocation of primary income account to the use 
of income account. 
8.71. On the resources side, the external account of primary incomes and current transfers shows 
the external balance of goods and sendees. It also records, on the resources or uses side, all 
distributive transactions which may involve the rest of the world, apart from capital 
transfers. 
-260-
External accumulation accounts (V.3) 
Capital account (V.3.1) 
8.72. The rest of the world capital account records acquisitions less disposals of non-produced 
non-financial assets by non-resident units and measures the changes in net worth due to 
saving and capital transfers. 
8.73. The balancing item of the capital account is the net lending or borrowing of the rest of the 
world. It is equal, but has the opposite sign, to the sum of the net lending or borrowing of 
the resident institutional sectors. 
Financial account (V.3.2) 
8.74. The layout of the rest of the world financial account is identical to that of the institutional 
sectors' financial account. 
Other changes in assets account (V.3.3) 
8.75. As for the institutional sectors, the changes in net worth due to other changes in volume of 
assets and due to nominal holding gains and losses are determined successively, holding 
gains and losses themselves being broken down into neutral and real holding gains and 
losses. 
8.76. The absence of produced assets in the accumulation accounts and balance sheets of the rest 
of the world is due to the convention whereby a notional institutional unit is created, the 
rest of the world being deemed to have acquired a financial asset - and vice versa for assets 
held in other economies by resident units. 
Balance sheets (V.4) 
8.77. The balance sheets of the rest of the world contain financial assets and liabilities. On the 
assets side, they record the total acquisitions less disposals between non-resident and 
resident units of monetary gold and SDRs. 
261 
Full sequence of accounts for rest of the world (external transactions account) 
V.l: External account of goods and services 
Uses 
P.6 Exports of goods and services 
P.61 Exports of goods 
P.62 Exports of services 
B. 11 External balance of goods and services -39 Resources 
536 P.7 Imports of goods and services 
462 P.71 
74 P.72 Imports of goods 
Imports of services 497 
392 
105 
V.ll: External account of primary incomes and current transfers 
Uses 
D. 1 Compensation of employees 
D. 11 Wages and salaries 
D.2 Taxes on production and imports 
D.21 Taxes on products 
D.211 Value added type taxes (VAT) 
D.2121 Import duties 
D.29 Other taxes on production 
D.3 Subsidies 
D.31 Subsidies on products 
D.311 Import 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.5 Current taxes on income, wealth, etc. 
D. 51 Taxes on income 
D.59 Other current taxes 
D.61 Social contributions 
D.611 Actual social contributions D.212 Taxes and duties on imports excluding VAT 
D.2122 Taxes on imports excluding VAT and duties 
D.214 Taxes on products except VAT and import taxes 
D.422 Withdrawals from income of quasi-corporations 
D.43 Reinvested earnings on direct foreign investment _66_ 
16 
36 
0 
36 
14 
D.6111 Employers, actual social contributions 
D.61 111 Resources 
B.I1 External balance of goods and services 
D. 1 Compensation of employees 
Dll Wages and salaries 
D.12 Employers, social contributions 
D.2 Taxes on production and imports 
D.21 Taxes on products 
D.211 Value added type taxes (VAT) 
0 D.212 Taxes and duties on imports excluding VAT 
D.2121 Import duties 
D.2122 Taxes on imports excluding VAT and duties 
D.214 Taxes on products except VAT and import 
taxes 
D.29 Other taxes on production 
D.3 Subsidies 
D.31 Subsidies on products 
D.311 Import 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 
0 D.44 Property income attributed to insurance policyholders 
D.5 Current taxes on income, wealth, etc. 
D.61112 Compulsory employers, actual social contributions 0_ D.51 Taxes on income 
Voluntary employers, actual social contributions 0 D.59 Other current taxes 
D.6112 Employees, social contributions 
D.61121 
D.61122 Compulsory employees, social contributions 0 
0 D.61 Social contributions 
Voluntary employees, social contributions 0 D.611 Actual social contributions 
D.612 Imputed social contributions 0 D.6111 Employers, actual social contributions 
D.62 Social benefits other than social transfers in land 
D.622 Private funded social benefits Employees, social contributions 
D.623 Unfunded employee social benefits D.61121 Compulsory employees, social contributions -39 
D.121 Employers, actual social contributions 
D.122 Employers, imputed social contributions 
D.422 Withdrawals from income of quasi-corporations 
D.43 Reinvested earnings on direct foreign investment 39 
22 
17 
14 
3 
0 
0 
D.61 111 Compulsory employers, actual social contributions 0 
_0_ D.61112 Voluntary employers, actual social contributions 0_ 
0 D.6112 
- 262 
Full sequence of accounts for rest of the world (external transactions account) [cont.] 
V.ll: Extemal account of primary incomes and current transfers [cont/ 
Uses 
D.7 Other current transfers 
D.7I Net non-life insurance premiums 
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 on pension funds 
B. 12 Current external balance -41 Resources 
D.61122 
D.612 
D.62 
D.621 
D.622 
D.624 
D.7 
D.72 
D.75 
D.8 Voluntary employees, social contributions 
Imputed social contributions 
Social benefits other than social transfers in kind 
Social security benefits in cash 
Private funded social benefits 
Social assistance benefits in cash 
Other current transfers 
Non-life insurance claims 
D.74 Current international cooperation 
Miscellaneous current transfers 
Adjustment for the change in net equity 
of households on pension funds D.73 Current transfers within general govemment 39 
3 
4 
31 
1 
V.lli. Accumulation accounts 
V.lll. 1.1: Change in net worth due to saving and capital transfers account 
Uses Resources 
B. 10. Changes in net worth due to saving 
and capital transfers -38 B. 12 Current external balance 
D.9 Capital transfers, receivable 
D.91 Capital taxes 
D.92 Investment grants 
D.99 Other capital transfers 
D.9 Capital transfers, payable 
D.91 Capital taxes 
D.92 Investment grants 
D.99 Other capital transfers -41 
T 
V.lll. 1.2: Acquisition of non-financial assets account 
Changes in assets Changes in liabilities and net worth 
K.2 Acquisitions less disposals of non-produced 
non-financial assets 0 
K.21 Acquisitions less disposals of land and other 
tangible non-produced assets 0_ 
K.22 Acquisitions less disposals of intangible 
non-produced assets 0 
B.9 Net lending (+)/net borrowing (-) -38 B. 10.1 Changes in net worth due to saving 
and capital transfers -38 
263 
Full sequence of accounts for rest of the world (external transactions account) [cont.] 
V.l 11.2: Financial account 
Changes in assets 
Net acquisition of financial assets 
F.l Monetary gold and SDRs 
F.2 Currency and deposits 
F.21 Currency 
F.22 Transferable deposits 
F.29 Other deposits 
F.3 Securities other than shares 
F.4 Loans 
F.41 Short-term 
F.42 Long-term 
F.5 Shares and other equity 
F.6 Insurance technical reserves 
Prepayment of premiums and reserves against 
outstanding claims 
F.7 Other accounts receivable 
F.71 Trade credits and advances 
F.79 Other accounts receivable, except trade credits and 
advances Changes in liabilities and net worth 
50 
F.61 Net equity of households on life insurance reserves 
and on pension funds 
F.611 Net equity of households on life insurance reserves 
F.62 
21 Net incurrence of liabilities 
F.2 Currency and deposits 
3 F.21 Currency 
2 F.22 Transferable deposits 
6 F.29 Other deposits 
F.3 Securities other than shares 
10 F.4 Loans 
F.41 Short-term 
7 F.42 Long-term 
2 F.5 Shares and other equity 
0 F.6 Insurance technical reserves 
F.61 Net equity of households on life insurance reserves 
and on pension funds 
0 F.612 Net equity of households on pension funds 
F.7 Other accounts payable 
F.71 
18 F.79 Trade credits and advances 
Other accounts payable' except trade credits and 
advances 
B.9 Net lending(+)/net borrowing(-) 20 
37 
10 
27 
30 
18 
12 
-38 
- 264 -
Full sequence of accounts for rest of the world (external transactions account) [cont.] 
V.lll.3: Other changes in assets accounts 
V.III.3.1: Other changes in volume of assets account 
Changes in assets 
AN Non-financial assets 
AN.2 Non-produced assets 
K.8 Uncompensated seizures 
K.12 Changes in classifications and structure 
ofwhich: 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
K.7 Catastrophic losses 
K.8 Uncompensated seizures 
K.10 Other volume changes in financial assets and 
liabilities n.e.c. 
K. 12 Changes in classifications and structure 
K.12.22 Changes in classification of assets or liabilities 
other than monetization/demonetization of gold 
ofwhich: 
AF. 1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable K.12.2 Changes in classification of assets and liabilities 
K.12.22 Changes in classification of assets or liabilities 
other than monetization/demonetization of gold 
K. 12.2 Changes in classification of assets and liabilities Changes in liabilities and net worth 
AF Liabilities 
K.7 Catastrophic losses 
K.8 Uncompensated seizures 
K.10 Other volume changes in financial assets and 
liabilities n.e.c. 
K.12 Changes in classifications and structure 
K.12.1 Changes in sector classification and structure 
ofwhich: 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts payable K.12.2 Changes in classification of assets and liabilities 
K. 12.22 Changes in classification of assets or liabilities 
other than monetization/demonetization of gold 
B. 10.2 Changes in net worth due to other 
changes in volume of assets 
265 -
Full sequence of accounts for rest of the world (external transactions account) [cont.] 
V.lll.3.2: Revaluation account 
Changes in assets Changes in liabilities and net worth 
K.11 Nominal holding gains(+)/losses(-) : K.11 Nominal holding gains(-)/losses(+) 
AN.2 Non-produced assets 0 AF 
AN.21 Tangible non-produced assets 0 AF.2 
AN.22 Intangible non-produced assets 0 AF.3 
AF.4 
AF Financial assets 
AF. 1 Monetary gold and SDRs AF.6 
AF.2 Currency and deposits 0 AF.7 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable Liabilities 
Currency and deposits 
Securities other than shares 
Loans 
7 AF.5 Shares and other equity 
Insurance technical reserves 
Other accounts payable 
B. 10.3 Changes in net worth due to nominal holding gains/losses 
266 -
Full sequence of accounts for rest of the world (extemal transactions account) [cont.] 
V.lll.3.2.1: Neutral holding gains/losses account 
Changes in assets 
K.ll.l Neutral holding gains (+)/losses (-) : Changes in liabilities and net worth 
K.ll.l Neutral holding gains (-/losses (+) : 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF. 1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 0 AF 
0 AF.3 
AF.4 
0 AF.6 Liabilities 
0 AF.2 Currency and deposits 
Securities other than shares 
Loans 
AF.5 Shares and other equity 
Insurance technical reserves 
2 AF.7 Other accounts payable 
B.10.31 Changes in net worth due to neutral holding gains/losses 
V.lll.3.2.2: Real holding gains/losses account 
Changes in assets 
K.11.2 Real holding gains(-t-)/losses(-) : Changes in liabilities and net worth 
K.11.2 Real holding gains(-)/losses(+) : 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF. 1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 0 AF 
0 AF.2 
AF.3 
AF.4 
0 AF.6 Liabilities 
Currency and deposits 
Securities other than shares 
Loans 
-5 AF.5 Shares and other equity 
Insurance technical reserves 
-2 AF.7 Other accounts payable 
B. 10.32 Changes in net worth due to real holding gains/losses 
267 
Full sequence of accounts for rest of the world (external transactions account) [cont. 
V.IV: External assets and liabilities account 
V.IV.1: Opening balance sheet 
Assets 
AN Non-financial assets 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF.l Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 573 
0_ 
IPS 
125 
70 
113 
26 
134 Liabilities 
and net worth 
AF 
AF.3 
AF.4 
AF.6 
AF.7 Liabilities 
AF.2 Currency and deposits 
Securities other than shares 
Loans 
AF.5 Shares and other equity 
Insurance technical reserves 
Other accounts payable 
B.90 Net worth 297 
116 
77 
17 
3_ 
25 
59 
276 
V.IV.2: Changes in balance sheet 
Assets 
Total changes in assets 
AN Non-financial assets 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF. I Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 57 
1 
11 
9 
10 
5 
0 
21 Liabilities 
and net worth 
AF 
AF.3 
AF.4 
AF.6 
B.10 Total changes in liabilities 
Liabilities 
AF.2 Currency and deposits 
Securities other than shares 
Loans 
AF.S Shares and other equity 
Insurance technical reserves 
AF.7 Other accounts payable 
Changes in net worth' total 
due to: 
B.10.1 Saving and capital transfers 91 
-2 
22 
37 
3 
0 
30 
-34 
B.10.2 Other changes in volume of assets 
B.10.3 Nominal holding gains/losses 
B.10.31 Neutral holding gains/losses 
B.10.32 Real holding gains/losses 
~ 2( 
Full sequence of accounts for rest of the worid (extemal transactions account) [cont.] 
V.IV.3. Closing balance sheet 
Assets 
AN- Non-financial assets 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF. 1 Monetary gold and SDRs 
AF.2 Currency and deposits 116 
AF.3 Securities other than shares 134 
AF.4 Loans 80 
AF.5 Shares and other equity 118 
AF.6 Insurance technical reserves 26 
AF.7 Other accounts receivable 155 Liabilities 
and net worth 
AF 
0 AF.2 
AF.3 
AF.4 
630 AF.6 Liabilities 388 
Currency and deposits 114 
Securities other than shares 99 
Loans 54 
AF.5 Shares and other equity 
Insurance technical reserves 25 
0 AF.7 Other accounts payable 89 
B.90 Net worth 242 
269 -
GOODS AND SERVICES ACCOUNT (0) 
8.78. The purpose of the goods and services account is to show, by product group and for the 
total economy, how the products available are used. 
8.79. It therefore shows, by product group and for the total economy, the resources (output and 
imports) and the uses of goods and services (intermediate consumption, final consumption, 
gross fixed capital formation, changes in inventories, acquisitions less disposals of 
valuables, exports). 
8.80. Given the way in which output is valued at basic prices and uses at purchaser's prices, taxes 
less subsidies on products must be included in the resources section. 
8.81. Uses are recorded on the right-hand side of the goods and services account and resources 
on the left, i.e. on the opposite side from that used in the current accounts for the 
institutional sectors, since the product flows are the counterparts of the monetary flows. 
8.82. The goods and services account is by definition in balance and therefore has no balancing 
items. 
-270 
Account 0: Goods and services account 
Resources 
P.l Output 
P. 11 Market output 
P. 12 Output for own use 
P. 13 Other non-market output 
D.21' Taxes on products 
D.31 Subsidies on products 
P.7 Imports of goods and services 
P.71 Imports of goods 
P.72 Imports of services Uses 
3 595 P.2 Intermediate consumption 
3 048 
171 
376 P.3/P.4 Final consumption expenditure/Actual 
final consumption 
P.31/P.41 Individual consumption expenditure/Actual 
individual consumption 
141 P.32/P.42 Collective consumption expenditure/Actual 
collective consumption 
P.51 
497 P.5U 
392 P.5111 
105 P.5112 
P.512 
P.5121 
P.5122 
P.5123 
P.513 
P.5131 
P.5132 Gross fixed capital formation 
Acquisitions less disposals of tangible fixed assets 
Acquisitions of new tangible fixed assets 
Acquisitions of existing tangible fixed assets 
Disposals of existing tangible fixed assets 
Acquisitions less disposals of intangible fixed assets 
Acquisitions of new intangible fixed assets 
Acquisitions of existing intangible fixed assets 
Disposals of existing intangible fixed assets 
Additions to the value of non-produced 
non-financial assets 
Major improvements to non-produced 
non-financial assets 
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 1904 
1 371 
1 215 
#U 
53 
28 
### 
- 271 -
INTEGRATED ECONOMIC ACCOUNTS 
8.83. The integrated economic accounts give a concise overview of the accounts of an economy: 
current accounts, accumulation accounts and balance sheets. 
They bring together in the same table the accounts of all the institutional sectors, the total 
economy and the rest of the world, and balance all the flows and all the assets and 
liabilities. They also enable the aggregates to be read off directly. 
8.84. In the table of integrated economic accounts, uses, assets and changes in assets are 
recorded on the left-hand side, while resources, liabilities, changes in liabilities and net 
worth are recorded on the right-hand side. 
8.85. To make the table readable while giving a picture of the whole economic process, the 
levels of aggregation used are the highest compatible with an understanding of the structure 
of the system. 
8.86. The columns in the table represent the institutional sectors, namely: non-financial 
corporations, financial corporations, general government, non-profit institutions serving 
households, and households. There are also a column for the total economy, a column for 
the rest of the world, and a column which balances uses and resources of goods and 
services 
8.87. The rows in the table represent the various categories of transactions, assets and liabilities, 
balancing items and certain aggregates. 
- 2J[l 273 
Integrated economic accounts 
Current accounts 
Uses 
Accounts S.15 -S.14 S.13 
Goods 
and 
service 
Total (res.) Rest Total 
of the eco-
world nomy NPISHs holds S.12 S.11 
Non-
Finan- finan-
General cial cial 
House- govern- corpo- corpo-
ment rations rations Code Transactions and other flows 
stocks and balancing items 
I Production/ 
external account 
of goods and 497 
536 
3595 
I904 
133 497 
3 595 
133 P.7 
P.6 
PI Imports of goods and services 
Exports of goods and services 
Output 
Intermediate consumption 
Taxes less subsidies on products 
(III. Generation of 
income account 222 
I 602 
768 
191 
459 
442 
247 
432 222 
1602 
762 
191 
133 
58 
459 
442 
247 
432 23 39 
0 2 
8 92 
442 
5 60 
432 30 
158 872 B.lg/B.I«g 
10 137 K.1 
63 735 B.ln/B.l* 
15 545 D.I 
3 51 D.2-D.3 
D.2I-D31 
3 51 D.29-D39 
55 258 B.2g 
B.3g 
121 B.2n 
B.3n 45 Value added, gross/Gross domestic 
product 
Consumption of fixed capital 
Value added, net/Net domestic 
product 
External balance of goods and services 
Compensation of employees 
Taxes less subsidies on production 
and imports 
Taxes less subsidies on products 
Other taxes less subsidies on 
production 
Operating surplus", gross 
Mixed income, gross 
Operating surplus, net 
Mixed income, net 
II 1.2. Allocation of 
primary income 466 
1 861 66 380 
1855 138 145 D.4 
29 209 B.5g Property income 
Balance of primary incomes, 
gross/National income, gross 
3 1 348 19 72 B.5n/B.5*n Balance of primary 
net/National income, net 
fl 2. Secondary 
distribution of 
income account 322 
332 322 
332 322 
0 289 
141 D.61 
13 D.62 Current taxes on income, wealth etc 
Social contributions 
Social benefits other than social 
transfers in kind 
Other current transfers 
D.3. Redistribution of 
income in kind 
account 1 854 
1632 
228 
1854 
1632 I 854 
1632 
228 
I 854 
1632 1206 
I 164 
1434 
1392 386 
356 
212 
174 
144 186 B.6g 
49 B.6n 
D.63 
33 186 B.7g 
23 49 B.7n Disposable income, gross 
Disposable income, net 
Social transfers in kind 
Adjusted disposable income, gross 
Adjusted disposable income, net 
II.4. Use of income account 
1399 
1 399 
11 I 399 
1399 1243 
1015 156 
368 
0 B.6g Disposable income,gross 
B.6n Disposable income, net 
P.4 Actual final consumption 
P.3 Final consumption expenditure 
D.8 Adjustment for the change in net equity 
of households on pension funds 
455 
233 455 
233 202 
160 20 
-10 18S B.8g 
48 B8n Saving, gross 
having, net 
Current external balance 
- 274 -
Resources 
S.11 S.12 
Non-
finan- Rnan 
cial cial 
corpo- corpo­
rations rations General 
govern­
ment S.14 
House­
holds NPISHs S.1 
Total 
eco­
nomy Rest 
of the 
world Goods 
and 
service 
(uses) Total Accounts 
497 I. Production/ 
536 extemal account 
3 595 of goods and 
I 904 services 
133 
I 824 II. I. I. Generation of income 
account 
766 
I9I 768 II. 1.2. Allocation of primary 
191 income account 
133 
58 133 
58 
92 
442 8 459 
442 
5 247 
432 459 
442 
247 
432 
78 
209 160 
29 407 
1855 1 861 11.2. Secondaiy distribution of 
income account 
213 
268 0 
332 322 
332 322 
332 
186 
49 386 
356 1206 
1 164 1854 
1632 1 854 II 3 Redistribution of income 
I 632 in kind account 
186 
49 174 
144 228 
1434 
1392 228 
1854 
1632 I 854 11.4 Use of income account 
1632 
186 
49 386 
356 1206 
I 164 1854 
1632 1854 
1632 
1 399 1 399 
I 399 1 399 
11 
- 27 s-
Integrated economic accounts (cont.) 
Accumulation accounts 
Changes in assets 
S.15 
Goods 
and 
service 
Total (res.) Rest Total 
of the eco-
world nomy House­
holds General 
govern­
ment S.12 
Finan­
cial 
corpo­
rations S.11 
Non-
finan­
cial 
corpo­
rations Code Transactions and other flows 
stocks and balancing items 
III I I Change in net worth due to saving 
and capital transfer account 
III 12 Acquisition of non-fmancial 
assets account 
376 
-222 
28 
10 B.8n Saving, net 
B.12 Current external balance 
D.9 Capital transfers, receivable 
D.9 Capital transfers, payable (-) 
B. 10 i Changes in net worth due to saving 
and capital transfers 
376 19 61 37 9 250 P.51 Gross fixed capital formation 
-222 -3 -42 -30 -10 -137 K.1 Consumption of fixed capital (-) 
28 0 2 0 0 26 P.52 Changes in inventories 
10 0 5 3 0 2 P.53 Acquisitions less disposals of 
valuables 
0 1 4 2 0-7 K.2 Acquisitions less disposals of 
non-produced 
non-financial assets 
Net lending (+-/ net borrowing (-) 
III 2 Financial account 
III 3 I. Other changes i 
volume of assets 
account 130 
143 
254 -I 
119 
138 
244 
44 
36 
61 15 
53 
167 F 
F 
F.I 
F2 
F.3 
F.4 
F.5 
F.6 
F.7 
K.3-I0 
and K.12 
K.3 
K.4 
K.5 
K.6 
K.7 
K.8 
K.9 
K.12 
ofwhich: 
AN 
AN.l 
AN.2 
AF Net acquisition of financial assets\ 
Net incurrence of liabilities 
Monetary gold and SDRs 
Currency and deposits 
Securities other than shares 
Loans 
Shares and other equity 
Insurance technical reserves 
Other accounts receivable/payable 
Other volume changes, total 
Economic appearance of 
non-produced assets 
Economic appearance of produced 
assets 
Natural growth of non-cultivated 
biological resources 
Economic disappearance of 
non-produced assets 
Catastrophic losses 
Uncompensated seizures 
Other volume changes in non-financial 
assets n.e.c 
Other volume changes in financial 
assets and liabilities n.e.c 
Changes in classifications and structure 
Non-financial assets 
Produced assets 
Non-produced assets 
Financial assets/Liabilities 
III 3 2 Revaluation 
account 280 
126 
154 
91 280 
126 
154 144 
63 K.I1 
AN 
AN.l 
AN.2 
AF Changes in net worth due to other 
changes in volume of assets 
Nominal holding gains/losses 
Non-financial assets 
Produced assets 
Non-produced assets 
Financial assets/Liabilities 
Changes in net worth due to 
nominal holding gains (+)/losses (-) 
- 2?S-
(10) 
Changes in liabilities and net worth 
S.11 S.12 
Non-
finan- Rnan 
rial cial 
corpo- corpo­
rations S.13 
General 
govern-
rations NPISHs Total 
eco­
nomy Rest 
of the 
world Goods 
and 
service 
(uses) Total Accounts 
48 
33 
-16 11 
6 
-34 23 
-5 62 
-65 -41 
4 
-1 233 DILL Change in net worth due 
-41 to saving and capital 
66 transfer account 
-66 
III. 1.2. Acquisition of non-
financial assets account 
376 376 
28 
10 28 
10 
111.2 Financial account 
132 
123 
217 130 
143 
254 
46 
36 
IŒ.3.1. Other changes in 
volume of assets 
account 
UI.3.2. Revaluation 
account 
18 
134 76 
288 78 
292 
- 2 f 
Integrated economic accounts (cont.) 
Balance sheets 
Assets 
Accounts Goods 
and 
service 
Total (res.) Rest 
of the Total 
eco-
world nomy NPISHs S.13 S.12 S.11 
Non-
Finan- finan-
General cial cial 
govern- corpo- corpo-
ment rations rations Code Transactions and other flows 
stocks and balancing Kerns 
IV. I. Opening balance 
sheet 9 922 
6 047 
3 875 9 922 324 2 822 1591 144 5 041 AN 
6 047 243 1698 1001 104 3 001 AN.l 
3 875 81 1124 590 40 2 040 AN.2 Non-financial assets 
Produced assets 
Non-produced assets 
Financial assets/liabilities 
rV.2. Changes in 
balance sheet 
IV.3. Closing balance 
sheet 482 
289 
193 
10 404 
6 336 
4 068 0 482 
289 
0 193 110 
61 I 290 AN 
1 182 AN.l 
2 108 AN.2 
B.10 
B.10.1 
B.10.2 
B.10.3 Total changes in assets 
Non-financial assets 
produced assets 
non-produced assets 
Financial assets/liabilities 
Changes in net worth, total 
Saving and capital transfers 
Other changes in volume of assets 
Nominal holding gains (+)/losses (-) 
0 10 404 349 2 932 1647 145 5 331 AN 
6336 264 1759 1026 103 3 183 AN.l 
0 4 068 85 1173 620 42 2 148 AN.2 Non-financial assets 
produced assets 
non-produced assets 
2 018 519 3 802 978 AF 
B.90 Financial assets/liabilities 
Net worth 
- 27ë -
S.11 
Non-
finan­
cial 
corpo­
rations S.12 S.13 
Rnan 
cial General 
corpo- govern-
rations ment S.14 
House­
holds Total 
eco­
nomy Rest 
of the 
world Goods 
and 
service 
(uses) Total 
IV. 1. Opening balance 
sheet 
1 817 
4 121 3 384 
268 289 
4 352 121 
375 6 298 
10416 297 
276 6 595 
10 692 
216 
66 
17 
134 2 
-40 
2 
38 276 
178 
2 535 
230 
17 
288 -34 
-38 501 
192 
17 
292 IV.2. Changes in 
balance sheet 
IV.3. Closing balance 
sheet 
1972 
4 337 3 669 
278 863 
1302 322 
4 628 149 
406 6 975 
10951 388 
242 7 362 
11 193 
279 
AGGREGATES 
8.88. The aggregates are summary indicators of the result of the activity of the total economy 
and key magnitudes for purposes of macroeconomic analysis and comparisons over time 
and space. 
Gross domestic product at market prices (GDP) 
8.89. Gross domestic product at market prices is the final result of the production activity of 
resident producer units. 
It can be defined in three ways: 
GDP is the sum of gross value added of the various institutional sectors or the various 
industries plus taxes and less subsidies on products (which are not allocated to sectors and 
industries). It is also the balancing item in the total economy production account. 
GDP is the sum of final domestic uses of goods and services (actual final consumption and 
gross capital formation), plus exports and minus imports of goods and services. 
GDP is the sum of uses in the total economy generation of income account (compensation 
of employees, taxes on production and imports less subsidies, gross operating surplus and 
mixed income of the total economy). 
8.90. By deducting consumption of fixed capital from GDP, we obtain net domestic product at 
market prices (NDP). 
Operating surplus of the total economy 
8.91. The gross (or net) operating surplus of the total economy is the sum of the gross (or net) 
operating surpluses of the various industries or the various institutional sectors. 
Mixed income of the total economy 
8.92. The gross (or net) mixed income of the total economy is identical with the gross (or net) 
mixed income of the household sector. 
Entrepreneurial income of the total economy 
8.93. The gross (or net) entrepreneurial income of the total economy is the sum of the gross (or 
net) entrepreneurial incomes of the various sectors. 
National income (at market prices) 
8.94. Gross (or net) national income (at market prices) represents total primary income 
receivable by resident institutional units: compensation of employees, taxes on production 
and imports less subsidies, property income (receivable less payable), (gross or net) 
operating surplus and (gross or net) mixed income. 
-280-
Gross national income (at market prices) was called Gross national product (GNP) (at 
market prices) in 1979 ESA. 
Gross national income (at market prices) equals GDP minus primary income payable by 
resident units to non-resident units plus primary income receivable by resident units from 
the rest of the world. 
National income is not a production concept but an income concept, which is more 
significant if expressed in net terms, i.e. after deduction of the consumption of fixed 
capital. 
National disposable income 
8.95. Gross (or net) national disposable income is the sum of the gross (or net) disposable 
incomes of the institutional sectors. 
Gross (or net) national disposable income equals gross (or net) national income (at market 
prices) minus current transfers (current taxes on income, wealth etc., social contributions, 
social benefits and other current transfers) payable to non-resident units, plus current 
transfers receivable by resident units from the rest of the world. 
Saving 
8.96. This aggregate measures the portion of national disposable income that is not used for final 
consumption expenditure. 
Gross (or. net) national saving is the sum of the gross (or net) savings of the various 
institutional sectors. 
Current external balance 
8.97. The balancing item in the external account of primary incomes and current transfers 
represents the surplus (if it is negative) or the deficit (if it is positive) of the total economy 
on its current transactions (trade in goods and services, primary incomes, current transfers) 
with the rest of the world. 
Net lending (+) or borrowing (-) of the total economy 
8.98. The net lending (+) or borrowing (-) of the total economy is the sum of the net lending or 
borrowing of the institutional sectors. It represents the net resources that the total economy 
makes available to the rest of the world (if it is positive) or receives from the rest of the 
world (if it is negative). 
The net lending (+) or borrowing (-) of the total economy is equal but of opposite sign to 
the net borrowing (-) or lending (+) of the rest of the world. 
Net worth of the total economy 
8.99. The net worth of the total economy is the sum of the net worth of the institutional sectors. 
It represents the value of the non-financial assets of the total economy minus the balance of 
financial assets and liabilities of the rest of the world. 
28! 
MATRIX PRESENTATION 
A. Introduction 
8.100. Previous parts of this chapter have presented a sequence of (T-) accounts. At the same 
time, the concepts and definitions of the System allow other methods of presentation. 
These serve to provide additional insights and to enable different types of analysis. 
8.101. The input-output table is a widely used matrix framework to supply detailed and coherently 
arranged information on the flow of goods and services and on the structure of production 
costs. This matrix' contains more information than T-accounts for goods and services, 
production and the generation of income; for example, final consumption expenditure is 
shown by product group or industry of origin and intermediate consumption is shown both 
by product group or industry of origin and by product group or industry of destination. 
Disaggregated linkages between these accounts are further developed in the ESA's supply 
and use tables, through a specification of output of product groups by industry. 
8.102. The rest of this section will demonstrate, first, that the full sequence of accounts and 
balancing items can also be presented in a matrix format. In this table, all transactions are 
presented for the total economy and for the rest of the world, respectively. In addition, an 
aggregate goods and services account is included. 
8.103. Next, the general purposes that can be served by an accounting matrix will be discussed. A 
crucial feature is the wide range of possibilities for expanding or condensing such a matrix 
in accordance with specific circumstances and needs. Finally, it will be illustrated how this 
works out in practice. In particular, the linkages between the supply and use tables and the 
sectoral accounts will be elaborated through the insertion of labour accounts, to arrive at a 
Social Accounting Matrix (SAM) framework. A SAM serves, among other things, to 
enable a more integrated analysis of economic and social policy issues, including 
unemployment. 
B. Matrix presentation of ESA accounts 
8.104. Table VIII.xl presents the full sequence of accounts and balancing items in a matrix. For 
this purpose, the accounts for the primary distribution of income, for use of income and for 
other changes in assets have not been subdivided. Besides, the option is left open whether 
or not to combine the account for the redistribution of income in kind with the secondary 
distribution of income. Finally, an account that records net worth has been inserted. 
8.105. The figures which are presented in the tables of this section correspond exactly to the 
numerical example worked out in the preceding part of this chapter. In all matrices, the 
boxes containing a balancing item have been framed with bold lines. 
282-
8.106. A matrix presentation permits each transaction to be represented by a single entry and the 
nature of the transaction to be inferred from its position. Each account is represented by a 
row and column pair and the convention is followed that resources are shown in the rows 
and uses are shown in the columns. For instance, net domestic product (1602) is payable by 
the economy's producers and received on the primary distribution of income account. Table 
VIII.xl shows this in cell (3,2), that is, in row 3 and column 2. Since this table 
distinguishes transactions with the rest of the world in a separate account, its diagonal 
items, that is cells (3,3), (4,4), (5,5), (6,6), (7,7) and (8,8), contain only transactions among 
resident institutional units. 
8.107. The row and column totals have not been named. Their main function in matrix accounting 
is to ensure that all accounts indeed represent complete balances, in the sense that total 
incomings (row sums) equal total outgoings (column sums). In turn, meaningful balancing 
items, which connect successive accounts, can only be derived if this condition is fulfilled. 
8.108. Row 1 shows the uses of goods and services, at purchaser's prices: intermediate 
consumption (1904) in column 2, final consumption (1371) in column 5, gross capital 
formation (414) in column 7 and exports (536) in column 14. 
8.109. The elements in row 1 add up to total use of goods and services, at purchaser's prices 
(4225). Column 1 presents the supply of goods and services (also totalling 4225, of 
course). Output (at basic prices) plus taxes less subsidies on products (3728) is shown at 
the intersection with row 2. Imports (497) originate from the external account of goods and 
services (row 14)r 
8.110. Row 2 shows output (at basic prices) plus taxes less subsidies on products. Because of this 
valuation, the sum of row 2 (3728), and the concomitant sum of column 2, are inclusive of 
taxes less subsidies on products. This ensures that these taxes are incorporated in the 
balancing item of account 2, net domestic product (NDP), see cell (3,2). Most balancing 
items can be calculated gross or net. In this matrix, all balancing items are shown net. 
Consumption of fixed capital (222) is put directly on the capital subaccount for the 
acquisition of non-financial assets (row 7 and column 2). 
8.111. Row 3 shows the receipts of primary income by the total economy: net domestic product 
in cell (3,2), property income from other resident sectors (341) on the diagonal, and 
primary income flows from the rest of the world (72) in cell (3,15). As this matrix does not 
subdivide the account for primary distribution of income, it does not break down value 
added payable by producers into various categories cf value added, as recorded in the 
generation of income account. 
8.112. Apart from the diagonal item, column 3 contains primary income payable to the rest of the 
world (41) in cell (15,3) and the balancing item, net national income (1633), that connects 
this account and the next one. 
283 
8.113. This matrix leaves open the option whether or not to combine the account for the 
redistribution of income in kind with the secondary distribution of income. If redistribution 
of income in kind is not shown, then the diagonal contains current transfers, excluding 
social transfers in kind, between resident sectors (1096). These transfers consist of current 
taxes on income, wealth, etc., social contributions and benefits other than social transfers in 
kind, and other current transfers. If redistribution of income in kind is incorporated, then 
the diagonal of account 4 also records social transfers in kind; aggregated with the other 
current transfer flows, this equals 1315. In both cases, row 4 opens with net national 
income, while current transfers from the rest of the world (10) are recorded in cell (4,15). 
Column 4 shows, in addition to the diagonal item, current transfers to the rest of the world 
(39), in cell (15,4), while the balancing item, (adjusted) net disposable income (1604), is 
put on the use of (adjusted) disposable income account. 
8.114. If redistribution of income in kind is incorporated, then account 5 is the use of adjusted 
disposable income account. Otherwise, this account is the use of disposable income 
account. At the aggregate level, this is only a matter of terminology, for total disposable 
income equals total adjusted disposable income and total final consumption expenditure 
equals total actual final consumption. Apart from disposable income, 'the row of this 
account records an adjustment for changes in net equity of households on resident pension 
funds (11) on the diagonal and an adjustment for changes in net equity of households on 
non-resident pension funds (0) in column 15. The column contains, in addition to final 
consumption (1371) and the diagonal item, an adjustment for changes in net equity of non­
resident households on resident pension funds (0), see cell (15,5), and the balancing item, 
net saving (233), which is put on the first capital subaccount (account 6). 
8.115. For the capital account, two subaccounts have been distinguished. First, in the row of the 
account for change in net worth due to saving and capital transfers, net saving is 
augmented with capital transfers receivable from resident sectors (61), see cell (6,6), and 
from abroad (1), see cell (6,16). In the column of this account, capital transfers payable are 
shown, to resident sectors and to abroad (4), see cell (16,6). This yields a balancing item, 
change in net worth due to saving and capital transfers (230), that is transferred to the 
changes in balance sheet account (account 11). 
8.116. Next, the row of the account for acquisition of non-financial assets presents consumption 
of fixed capital (cell 7,2), the acquisitions less disposals of non-produced non-financial 
assets by resident units (0), see cell (7,7), and by non-resident units (0), see cell (7,17) and 
the changes in assets due to saving and capital transfers (833), see cell (7,12). This yields 
the total sum that is available to residents for the acquisition of assets. That acquisition is 
shown in two stages: first the acquisition of non-financial assets, in the column of this 
account, and then the acquisition of financial assets (including external financial assets), in 
the column of the next account. The column of this account, account 7, thus contains gross 
capital formation (cell 1,7), the diagonal item (7,7) discussed above, the changes in 
liabilities due to saving and capital transfers (603), see cell (12,7), and a balancing item, net 
lending of the total economy (38), that is put on the next account, for financial transactions. 
284-
8.117. Account 8, the financial account, opens with net lending of the total economy (cell 8,7) and 
adds financial transactions between resident sectors (553) on the diagonal and also the net 
incurrence of external liabilities (50), see cell (8,18). The column contains the diagonal 
item and the net acquisition of external financial assets (88) in cell (18,8). Of course, the 
net incurrence of external liabilities plus net lending of the total economy equals the net 
acquisition of external financial assets, so that in this account too the balance between row 
and column totals is maintained. 
8.118. The account for other changes in assets, account 9, records in the row the changes in assets 
due to other changes (379), see cell (9,12), and in the column: the changes in liabilities due 
to other changes (74), see cell (12,9), and the balancing item, changes in net worth due to 
other changes (305), see cell (11,9). 
8.119. The last four accounts for the total economy refer to the balance sheets and the changes 
therein. First, the opening balance sheet gives in the row the opening stock of assets 
(16714), see cell (10,12), and in the column the opening stock of liabilities (6298), see cell 
(12,10), and the opening net worth (10416), see cell (13,10). Next, the account for changes 
in balance sheet records both components of these changes in the row, see cells (11,6) and 
(11,9), and the total changes in net worth (535) in the column, see cell (13,11). Then, the 
closing balance sheet presents in the row the opening stock of liabilities (cell 12,10), both 
components of changes in liabilities (cells 12,7 and 12,9), and the closing net worth 
(10951), see cell (12,13). Of course, the sum of these elements equals the closing stock of 
assets, which is also computed in the column of this account: the opening stock of assets 
(cell 10,42) plus both components of changes in assets, see cells (7,12) and (9,12). Finally, 
the extra account for net worth gives opening net worth (cell 13,10) and total changes in 
net worth (cell 13,11) in the row and closing net worth in the column (cell 12,13). 
8.120. For the rest of the world, the same accounts have been included as for the total economy, 
albeit in a slightly more aggregate form. First, the external account of goods and services 
presents in the row imports by the total economy (cell 14,1) and in the column: exports 
(cell 1,14) and the balancing item (cell 15,14), the external balance of goods and services (-
39). Note that all balancing items of accounts for the rest of the world are viewed from the 
perspective of the rest of the world. In order to obtain the relevant aggregates for the total 
economy, the sign must therefore be reversed. 
8.121. Secondly, the external account of primary incomes and current transfers records the 
balancing item of the previous account, and also primary income, current transfers and 
adjustment for the change in net equity of households on pension funds, to and from the 
rest of the world, respectively. These items have already been discussed above. All this 
yields the current external balance (-41), shown in cell (16,15). 
285 
8.122. Thirdly, the capital account for the rest of the world has also been split into two 
subaccounts: one for the current external balance, capital transfers to and from the rest of 
the world and the balancing item, changes in the net external financial position due to the 
current external balance and capital transfers (-38), see cell (21,16); another one for 
changes in assets due to the current external balance and capital transfers (50), see cell 
(17,22), acquisitions less disposals of non-produced non-financial assets by non-resident 
units, see cell (7,17), changes in liabilities due to the current external balance and capital 
transfers (88), see cell (22,17), and the balancing item net lending of the rest of the world (-
38), transferred to the next account. 
8.123. Fourthly, the financial account gives the net acquisition of external financial assets (cell 
18,8) and net lending of the rest of the world (cell 18,17) in the row, and the net incurrence 
of external liabilities (cell 8,18) in the column. Fifthly, the account for other changes in 
assets presents in the row such changes of assets (7), see cell (19,22), and in the column 
such changes of liabilities (3), see cell (22,19), and also the balancing item, changes in the 
net external financial position due to other changes (4), see cell (21,19). 
8.124. Finally, the balance sheets for the rest of the world are analogous to those for the total 
economy. Elements not yet mentioned above are: the opening stock of external assets 
(573), see cell (20,22), the opening stock of external liabilities (297), see cell (22,20), the 
opening net external financial position of the rest of the world vis-a- vis the total economy 
(276), see cell (23,20), total changes in the net external financial position of the rest of the 
world (-34), see cell (23,21), and the closing financial position of the rest of the world vis­
a-vis the total economy (242), see cell (22,23). 
8.125. As a next step, this reduced format matrix can be disaggregated to show the full sequence 
of accounts, including details for transactors and transaction categories. However, the full 
potential of matrix accounting can be realized if not all accounts are detailed in the same 
way, but instead for each account the most relevant classification is selected. This feature is 
dealt with at greater length in the next subsection. 
C. Properties of accounting matrices 
8.126. Each entry in an aggregate matrix such as table VIII.xl can be considered as the grand total 
of a submatrix in which categories of transactors involved at either end of the set of 
transactions under consideration are presented. A very useful option in a matrix 
presentation of accounts is that different types of transactors and groupings thereof can be 
selected in each account, without giving up the coherence and the integration of the 
complete accounting system. This means that one may apply 'multiple actoring and 
multiple sectoring', by choosing in each account a unit and a classification of units which 
are most relevant to the set of economic flows under consideration. 
8.127. In principle, each account can be broken down in two rather different ways: by subdividing 
the total economy into groups of units, or by assigning the categories of transactions shown 
in an account to various sub-accounts. For instance, a subdivision of the total economy in 
the first five accounts could run as follows: 
286-
(l)Distinguish products in the goods and services account and classify these by product 
groups. 
(2)Distinguish local kind-of-activity units in the production account and classify these by 
industries. 
(3)Distinguish institutional units in the accounts for the primary and secondary distribution 
of income and for the use of income and classify these by institutional (sub)sectors. 
8.128. These subdivisions have two major consequences. First, for all categories of transactions 
distinguished in a single cell of these accounts it becomes clear which group of paying 
units has exchanged what with which group of receiving units. Secondly, the interrelations 
among various economic flows are revealed through detailed cross- classifications. For 
instance, in the example given in the previous paragraph, a simple circular flow of income 
is presented, at a meso-level, through the following mappings: 
(l)Submatrix (3,2) shows which institutional subsector receives net value added from 
which industries; 
(2)Submatrices (4,3) and (5,4) show which institutional subsector receives primary income 
and disposable income from which institutional subsector (naturally, in the distribution 
of income accounts and in the use of income account different classifications can be 
applied, and then these submatrices are no longer diagonal); 
(3)Submatrix (1,5) shows which product group is consumed by which institutional 
subsectors; and 
(4)Submatrix (2,1) shows which industry makes which product groups. 
8.129. When compiling such a matrix, it is convenient to start by designing an accounting 
structure which is relevant to the applications envisaged. Subsequently, in each account the 
most appropriate units and classifications of units are selected. However, in practice it will 
be an interactive process. Suppose, for instance, that there is a transaction category for 
which only total receipts and payments of transactors (the row and column totals of a 
submatrix) are known, and not who paid whom (the interior structure of the submatrix). 
This problem can be solved by the insertion of an undivided, dummy account. 
8.130. Among the general properties of a matrix presentation of accounts are the following: 
(1)A detailed matrix presentation is suitable for mathematical treatment using matrix 
algebra; this can also be of help when balancing the accounts. 
(2)A detailed matrix presents a simultaneous breakdown of interrelated transactions by 
paying and receiving units; as a consequence, it is an appropriate format to reveal, at a 
meso-level, interrelations among economic flows; this includes those flows which 
involve two different types of units (e.g. final consumption expenditure on various 
categories of goods and services by a number of household subsectors). 
(3)For a set of accounts giving a breakdown of transactions by paying and receiving units, 
a matrix presentation is more concise than other methods of presentation; the payment 
by one unit and the receipt by another unit involved in each transaction are represented 
by a single entry. 
287 
8.131. An aggregate matrix for the total economy can serve as a reference table for subsequent, 
more detailed tables. As soon as the reader is then introduced to a detailed presentation of 
parts of the System (supply and use tables, sector accounts, etc.), the relation of the detailed 
submatrices to the aggregate matrix should be clear through a system of codes. The matrix 
format is particularly advantageous if it is not possible or desirable to show an equally 
detailed classification in all accounts of the System. 
8.132. The matrix presentation is a suitable tool for exploring the flexibility of the System. For 
instance, one may further elaborate on the interrelations between the social and economic 
aspects of the System to arrive at a Social Accounting Matrix. The SAM approach is set 
out and illustrated in the next subsection of this chapter. 
D. Adaptation of the reduced format matrix to specific types of analysis 
8.133. The supply and use tables opt for a classification of rows and columns which is most 
suitable to describe the economic processes under consideration, namely the processes of 
production and use of products. However, those matrices do not incorporate the 
interrelations between value added and final expenditure. By extending a supply and use 
table, or an input-output table, to show the entire circular flow of income at a meso-level, 
one captures an essential feature of a Social Accounting Matrix (SAM). 
8.134. A SAM is defined here as: The presentation of ES A-accounts in a matrix which elaborates 
on the linkages between a supply and use table and sector accounts. SAMs typically focus 
on the role of people in the economy, which may be reflected by, among other things, extra 
breakdowns of the household sector and a disaggregated representation of labour markets 
(i.e. distinguishing various categories of employed persons). 
8.135. An important social concern is the level and composition of (un)employment. A SAM 
commonly provides additional information on this issue, via a subdivision of compensation 
of employees by type of person employed. This subdivision applies to both the use of 
labour by industry, as shown in the supply and use tables, and the supply of labour by 
socio-economic subgroup, as shown in the allocation of primary income account for 
households. It implies that the matrix presents not only the supply and use of various 
product groups, but also the supply and use of various categories of labour services. 
8.136. The classification of (self-)employed persons may be based on a combination of 
background and (main) job characteristics, such as sex, schooling, age and place of 
residence on the one hand, and occupation, type of job contract (full-time/part-time, 
permanent/ temporary) and region and subsector of employment on the other hand. 
Another consideration should be that within-group variations in relative wage rate changes 
are smaller than between-group variations. A classification by industry of employment is 
less relevant, because this is already shown in the SAM by the cross-classification of value 
added. 
8.137. Both resident persons employed in non-resident enterprises and non-resident persons 
working for resident enterprises plus employees working temporarily abroad should be set 
apart. In this way, employment can be estimated by counting the number of (national) 
employed person units. Evidently, this includes the self-employed, for whose labour input 
an imputed remuneration may then be isolated from the rest of net mixed income in the 
SAM. 
288 
8.138. In particular, comparing (1) labour incomes of all employed persons as shown in the SAM, 
(2) a decomposition of these incomes into hours worked and average wage rates per hour 
and (3) the potential supply of labour by type of person and household group (expressed in 
'full-time' equivalents) yields detailed information on the composition of unemployment 
and an aggregate indicator ('full-time equivalent unemployment') which is consistent, both 
conceptually and numerically, with the other macro-economic indicators; these can also be 
derived from the SAM framework. Moreover, juxtaposing the head-count of the employed 
persons (excluding foreigners) and the potential labour force in this data set reveals 
unemployment as conventionally defined. 
8.139. At this stage, it is perhaps useful to work out an illustrative SAM. For this purpose, Table 
VIII.x2 exemplifies the design of a SAM which records all transactions distinguished in the 
System (that is, all flows excluding 'other changes in assets'). The main novelty refers to a 
new meaning that is attached to the generation of income account, in order to facilitate a 
linkage of detailed labour market analyses and the national accounts. The aggregate SAM 
shown here is meant as a summary table, to which subsequent, more detailed tables can 
refer. Possible types of classifications in each account are indicated in parentheses in the 
row and column headings. 
8.140. The sequence of accounts in this matrix is the same as in table VIII.xl. Turning that matrix 
into the aggregate SAM presented here implies: 
(l)deleting the other changes in assets account, the opening balance sheet, the changes in 
balance sheets account, the closing balance sheet and the net worth account, both for the 
total economy and for the rest of the world, and deleting the external financial account; 
(2)subdividing the primary distribution of income account and the second capital 
subaccount; and 
(3)combining both capital subaccounts (excluding fixed capital formation) and combining 
the external account of goods and services and the external account of primary incomes 
and current transfers. 
8.141. The first two rows and columns of table VIII.x2 contain an aggregated version of the 
supply and use table, here explicitly linked up with the other accounts of the System. Note 
that rows and columns of the supply table (cell 11,1) have been transposed. 
8.142. The third account records the generation of income and plays an important role. It is 
classified by primary input category: (1) compensation of various types of employees, (2) 
other taxes less subsidies on production, (3) net operating surplus and (4) net mixed 
income. 
8.143. Here, this account accommodates transactions between two different types of units. In 
particular, this refers to compensation of employees, which is recorded as a transaction 
(work in return for compensation) between an institutional unit (employer) and a person 
(employee). In this SAM, employed persons are considered as separate units who receive 
compensation of employees in the generation of income account and distribute this income 
to their household in the allocation of primary income account. These units are 
subsequently classified into groups of (self-)employed persons. This representation serves 
to integrate labour market analyses and the national accounts. 
289 -
8.144. The (residual) mixed income and operating surplus remain with the producing unit, but the 
classification of producing units need not be the same as in the production account. In 
effect, some classification by institutional subsector is particularly relevant to operating 
surplus and mixed income. This implies a cross-classification of these value added 
components by industry and institutional subsector in the SAM. 
8.145. As the balancing item in cell (III, II) equals total domestic value added, the primary input 
categories encompass all persons employed in resident enterprises. In column III, 
compensation of non-resident persons employed in resident enterprises is then handed over 
to the rest of the world. A meaningful, national balancing item is only obtained in account 
III if compensation of resident persons employed in non-resident enterprises is added first. 
This is done in row III and for this purpose a separate category, resident persons employed 
in non-resident enterprises, may be created. An additional advantage of inserting this 
category is that it facilitates the estimation of employment as conventionally defined. 
8.146. The result of all this is that the generation of income account is closed with a new 
balancing item (1473), in between total net value added and NNI. This balancing item, 
named total net generated income, at basic prices, gives total income earned by resident 
institutional units as a result of being engaged in production. 
8.147. The allocation of primary income account of a detailed SAM presents household labour 
income(s) as a contribution by one or more (self-)employed household members. Among 
other things, this will indicate to what extent each household group depends on multiple 
sources of (labour) income. Apart from this, the transaction categories in the distribution 
and use of income accounts are the same as in the previous table. 
8.148. In the design of this SAM, the capital and financial accounts have been interlaced, with the 
financial account classified not by institutional sector but by type of financial asset. As a 
consequence, a disaggregation of this SAM would show, by institutional subsector, both 
acquisitions less disposals of various types of financial assets, see cell (IX,VII), and 
incurrence less repayment of various types of liabilities, see cell (VII,IX). These two 
categories of transactions have been combined as far as the rest of the world is involved. 
This serves to include the balancing item net lending in table VIII.x2, though with a reverse 
sign when viewed from the standpoint of the national economy (cell IX,XI). 
8.149. A large part of total volume changes in net worth probably consists of increases in fixed 
assets. If one is particularly interested in the dynamics of an economy, it is important to 
show in which industries production capacity has been expanded. This is the aim of the 
fixed capital formation account (account VIII) inserted in this SAM. A more detailed table 
would then present: 
(l)who invests where in the rows of this account - cell (VIII,VII); and 
(2)where does one invest in what in the columns - cell (I,VIII). 
290 
In this case, the who refers to an institutional subsector, the where refers to an industry, and 
the what refers to a product group. Through this fixed capital formation account the SAM 
shows at a meso-level the linkages which exist between fixed capital formation by 
institutional sector, as presented in the capital account, and fixed capital formation by 
product group, as contained in the supply and use tables. 
8.150. Table VIII.x3 serves to illustrate what kind of information can be derived from a more 
detailed SAM. Its main purpose is to show: 
The circular flow of income, including a subdivision of labour income by a few categories 
of employed persons; this enables a more detailed analysis of the linkage between value 
added of industries and primary income of household subgroups. 
The interdependence between the distribution of income and the structure of production; 
among other things, this is related to diverging demand patterns of various household 
subgroups. 
The subsectoral allocation of saving, including a subdivision of fixed capital formation by 
investing industry; this enables a more detailed analysis of the linkagp between fixed 
capital formation of subsectors and fixed capital formation by product group. 
For purposes of presentation, the number of groups in each account is kept to a minimum. 
Obviously, a fully-fledged SAM should distinguish more categories per account. 
8.151. As a SAM integrates both income and expenditure flows and the supply and use tables at a 
meso-level, it may serve as a format for the estimation of a wide set of accounts. The SAM 
approach is particularly useful if one wants to reconcile detailed information on, for 
example, production and international trade with basic data from, for example, a labour 
force survey, a household budget survey and an investment survey for industries. In 
addition, casting accounts into a SAM framework implies that matrix algebra can be 
applied to balance them. 
8.152. Integration of more basic data entails the possibility of more policy issues being monitored 
and analysed in an interrelated. Above all, the linkage of employment and income 
distribution aspects to more macro- oriented objectives such as NDP growth, balance of 
payments equilibrium, stable price levels, etc. comes within reach with a SAM. In addition, 
the SAM provides a framework and consistent (base-year) data for economy-wide (general 
equilibrium) models with detailed classifications of actors, including industries, labour 
types and household subgroups. 
8.153. Table VIII.x4 shows part of the information contained in a fully- fledged SAM. It looks at 
total net value added, i.e. cell (3,2) of the aggregate table VIII.x2, through a magnifying 
glass. To facilitate cross-reference with the supply and use table, industries are only 
classified by NACE sections. Male and female labour incomes are broken down by 
category of occupation and place of residence of the employed person. Net operating 
surplus is shown according to the (sub)sector of the enterprise to which the establishment 
belongs, and net mixed income according to the location of the household enterprise. In 
this example, mixed income still includes an imputed remuneration for the labour of the 
self-employed. Obviously, the figures in this table add up to the concomitant totals shown 
in tables VIII.x2 and VIII.x3. For instance, total net value added appears in the bottom 
right-hand corner. 
291 
8.154. The additional insights which can be obtained from such a table include the following: 
- The share of female labour income by industry and region. 
- The degree of concentration of female labour income in a certain occupational category, 
by industry and region. 
- The composition of labour income by occupation in each industry and region, for both 
sexes. 
- The regional split of mixed income by industry. 
- The weight of public enterprise and foreign-controlled corporations in the operating 
surplus of each industry. 
8.155. In this table, the detailed information on compensation of employees comes from labour 
statistics; its integration into a national accounts framework will improve the relevance as 
well as the reliability of both this source and the national accounts. 
Labour incomes as presented in this table can be decomposed into a volume and a price 
component by labour type and industry: full-time equivalent employment and (weighted, 
full-time equivalent) wage rates, respectively. Apart from that, a fully-fledged SAM also 
contains a table showing the allocation of these labour incomes and the concomitant 
employment to household groups. Similar transactions might be shown for imputed labour 
income of the self-employed. 
A data set which contains an estimate of imputed labour income of the self-employed 
person units as well as a split of all labour income into a volume and a price component 
yields detailed labour data which are quite useful for all kinds of analysis and which are 
directly linked to all important macro-economic aggregates, including employment (that is, 
the total number of employed person units) and full-time equivalent employment (that is, 
total labour input volume). 
292 -
(19) 
TABLE VIII.xl : Matrix prcsenialion of Ihe full sequence of accounts and balancing items 
ACCOUNT 
0. Goods and 
services 
T 
0 
T 
A 
L 
E 
C 
0 
N 
O 
M 
Y 
R 
E 
S 
T 
0 
F 
T 
H 
E 
W 
0 
R 
L 
D 
TÔT/1 i. rroaucuoa 
111 Primary 
distribution of 
income 
11.2/3 Secondary 
(rc)distribu(ion 
of income 
(in kind) 
11.4 Use of 
(adjusted) 
disposable 
income 
IILI.I Saviauj 
and capital 
transfers 
111. 1.2 Acqui­
sitions of non-
financial assets 
III / financial 
lll.J Utter 
changes In 
assets 
IV.I Upeninf 
balance sheet 
IV.2 Changes to 
balance sheet 
tV.J Closing 
balance sheet 
Net worth 
V.l External 
services 
V J External 
primary incomes 
and eurent 
tianfcrs 
V 3.1.1 Saving 
and capital 
transfers 
V.J. 1.2 Acqui­
sitions of non-
finandal assets 
V.3 J Financial 
VJ.JUthcr 
changes in 
assets 
V.4.1 Upaung 
balance sheet 
V.4.2 Changes i 
balance sheet 
V.4.3 Closing 
balance sheet 
Net worth 1 
I 
3 
4 
5 
6 
7 
X 
u 
IU 
II 
12 
13 
U 
IS 
16 
IV 
18 
19 
21 
22 
23 
L 0. Goods and 
services 
Trade and 
transport 
margins 
0 
uurpuia taxes 
less subsidies 
on products 
372» 
Import! of good! 
and services 
497 
nu or Ihc total economy 
•" 1-IV. TOTAL ECONOMY 
I. Production 
Intermediate 
consumption 
1904 
WCTboUKTIc 
PRODUCT 
1602 
Consumption of 
fixed capital 
222 
3728 il. 1 ramary 
distribution of 
income 
i 
Property income 
341 
NATIÔNAL 
1NCOME.NET 
1633 
Primary income 
to the rest of 
(he world 
41 
Joli 11.1/J Secondary 
(re)dislribution 
of income 
(in kind) 
4 
Current transfers 
(1315) 
1(196 
(AfjJUsTE6) 
DISPOSABLE 
INCOME. NET 
1604 
Current transfen 
to the rest of 
the world 
39 
iW TT.4 Use 01 
(adjusted) 
disposable 
income 
5 
Final 
consumption 
1371 
Adjustment for the 
change in net equity 
of households on 
pension funds 
11 
SAVIUI!. WET 
233 
Adjustment for the 
change in net equity 
of households on pen­
sion funds lo the 
rest of the worid 
0 III.l. 1 i>aving 
and capital 
transfers 
b 
Capital transfers 
61 
CHANGEINWET 
WORTH DUE TO 
SAVING AND 
CAPITAL 
TRANSFERS 230 
Capital transfen 
to the rest of 
the worid 
4 
il til. 1.2 Acqui­
sition of non-
financial assets 
; Gross capital 
formation 
414 
Acquisitions less 
disposals of non-
produced non-
financial assets 
0 
Nfcl liWDINU 
OF THE TOTAL 
ECONOMY 
3S 
Changes in 
liabilities 
due lo saving and 
capital transfers 
603 
ïàii 111.2 financial 
8 
Net acquisitions 
of financial assets 
(-. net incurrence 
of liabilities) 
553 
Net acquisition 
of external 
financial assets 
88 
641 changes in 
assets 
9 
CHANGE IN WE 
WORTH DUE T 
OTHER 
CHANGES 
305 
Changes in 
liabilities 
due to other 
changes 
74 
ih IV.1 Upcning 
balance sheet 
IU 
Opening slock 
of liabilities 
6298 
OPENING 
NET WORTH 
10416 
16714 IV.2 Changes in 
balance sheet 
u 
CHANGE IN WE 
WORTH. TOTAL 
535 
535 IV.3 Closing 
>alance sheet 
12 
Changes in 
assets due to 
saving and 
capital transfer 
833 
Changes in 
assess due to 
other changes 
379 
Upemng stock 
of assets 
16714 
•"""" "TOT 
- IM ~ 294 -
Not worth 
CLOSIWG 
NET 
WORTH 
10951 
I095I V. REST OP TflE-wTTRTB : 
V.I bxlcmal 
goods and 
services 
Exports of good, 
and services 
536 
EXTERNAL 
BALANCE 
OF GOODS AN! 
SERVICES 
-39 
497 V.2 txtemal 
primary incomes 
and current 
transfers 
15 
Primary income 
from the rest 
of the worid 
72 
Current transfers 
from the rest 
of the worid 
10 
Adjustment for the 
change in net equity 
of households on pen­
sion funds from the 
rest of the worid 
0 
3 
CURRENT 
EXTERNAL 
BALANCE 
-41 
41 v.j.i saving 
and capital 
transfers 
lb 
Capital transfers 
from the rest 
of the worid 
1 
OUNCE IN WET 
EXTERNAL 
FINANCIAL 
POSITION DUE TO 
CURRENT EXTER 
NAL BALANCE 
AND CAPITAL 
TRANSFERS 
-38 
-37 VJ.2 Acqui­
sition of non-
financial assets 
1/ 
Acquisitions less 
disposals of non-
produced non-
financial assets 
0 
NlMfLErAlNG 
OF THE REST 
OF THE WORLD 
-38 
Changes in external 
liabilities due to 
current external 
balance and 
capital transfers 
88 
50 v.j. 1 f uianci 
IX 
Nd 
incurrence 
of external 
liabilities 
50 
50 V.J .3 IHher 
changes in 
assets 
19 
CHANGE fN WET 
EXTERNAL 
FINANCIAL 
POSITION 
DUE TO OTHER 
CHANGES 
4 
Changes in extemal 
liabilities due lo 
other changes 
3 
7 V.4.1 Opening 
balance sheet 
2» 
Opening stock 
of external 
liabilities 
297 
ÔPEWIWG 
NET 
EXTERNAL 
FINANCIAL 
POSITION 
276 
573 V.4.2 Changes m 
balance sheet 
21 
CHAWGE IN WE 
EXTERNAL 
FINANCIAL 
POSITION. 
TOTAL 
-34 
-34 v.«.j Closing 
balance sheet 
22 
Changes in external 
assets due 10 
current external 
balance and 
capital transfers 
50 
Changes m external 
assets due 10 
other changes 
7 
Upcning stock 
of externa! 
assets 
573 
630 Net worth 
ZJ 
CLOSING 
NET 
EXTERNAL 
FINANCIAL 
POSITION 
242 
242 ToTÂT 
4225 
3728 
2015 
2739 
1615 
295 
1055 
641 
379 
16714 
305 
17926 
10951 
497 
41 
-37 
50 
50 
7 
573 
-34 
630 
242 
- 295 -
TABLE VIII.x2: Schematic presentation of a Social Accounting Matrix 
ACCOUNT 
0. Goods and 
services 
(products) 
T 
0 
T 
A 
L 
E 
C 
0 
N 
0 
M 
Y 
R 
0 
W 1. Production 
(industries) 
11.1.1 Generation 
of income 
(primary input 
categories) 
II. 1.2 Allocation 
of primary 
income 
(institutional 
sectors) 
11.2 Secondary 
distribution 
of income 
(institutional 
sectors) 
11.4 Use of 
disposable 
income 
(institutional 
sectors) 
Capital 
(institutional 
sectors) 
Fixed capital 
formation 
(industries) 
III.2 Financial 
(financial 
assets) 
Current 
Capital 1-1 
U-2 
III-3a 
IV-3b 
V-4 
VT-5 
V.l - 6/7a 
Vlll-7b 
IX-8 
X-14/15 
XI- 16/17 
TOTAL 0. Goods and 
services 
(products) 
1-1 
Trade and 
transport 
margins 
0 
Output 
3595 
Taxes less 
subsidies on 
products 
133 
Imports of 
goods and 
services 
497 
4225 TOTAL ECONOMY 
I, Production 
(Industries) 
II-2 
Intermediate 
consumption 
1904 
NET VALUE 
ADDED (BASIC 
PRICES) 
1469 
Consumption 
of fixed 
capital 
222 
3595 II.I.I Generation 
of income 
(primary input 
categories) 
III - 3a 
GENERATED 
INCOME, NET 
(BASIC 
PRICES) 
1473 
Compensation 
of employees 
to the rest 
of the world 
2 
1475 11.1 Allocation 
of primary 
income 
(institutional 
sectors) 
IV-3b 
Property income 
341 
NATIONAL 
INCOME. NET 
1633 
Property income 
and taxes less 
subsidies on pro­
duction to the 
rest of the world 
39 
2013 II 2 Secondary 
distribution 
of Income 
(Institutional 
sectors) 
V-4 
Current 
transfen 
1096 
DISPOSABLE 
INCOME, NET 
1604 
Current 
transfers 
to the rest 
of the world 
39 
2739 11.4 Use of 
disposable 
Income 
(institutional 
sectors) 
Vl-5 
Final 
consumption 
1371 
Adjustment for the 
change In net equity 
of households on 
pension funds 
11 
SAVING, NET 
233 
Adjustment for the 
change in net equity 
of households on 
pension funds to the 
rest of the world 
0 
1615 Capital 
(institutional 
sectors) 
VII-6/7a 
Changes in 
inventories 1) 
38 
Capital transfers 2) 
61 
Net fixed capital 
formation 
154 
Net acquisitions 
of financial 
assets 
641 
Capital transfers 
to the rest of 
the world 
4 
898 Fixed capital 
formation 
(industries) 
Vlll-7b 
Gross fixed 
capital 
formation 
376 
376 III.2 Financial 
(financial 
assets) 
IX-8 
Net incurrence 
of liabilities 
603 
603 REST OF THE WORLD 
Current 
X-14/15 
Exports of goods 
and services 
536 
Compensation of 
employees from the 
rest of the world 
6 
Property income and 
taxes less subsidies 
on production from 
the rest of the world 
66 
Current transfers 
from the rest 
of the world 
10 
Adjustment for the 
change In net equity 
of households on pen­
sion funds from the 
rest of the world 
0 
CURRENT 
EXTERNAL 
BALANCE 
-41 
577 Capital 
XI- 16/17 
Capital transfers 
from the rest 
of the world 2) 
1 
NET LENDING 
OF THE REST 
OF THE WORLD 
-38 
-37 TOTAL 
4225 
3595 
1475 
2013 
2739 
1615 
898 
376 
603 
577 
-37 
1) Including acquisitions less disposals of valuables. 
2) Including acquisitions less disposals of non-produced non-financial assets. 
TAJll.F. VIT! V? Example 0 i more detailed Social Accounting Matrix 
ACCOUNT 
0 Goods and 
(product») 
0 
r 
r. 
c 
0 
N 
o 
M 
Y 
« 
[lOlAi 1. Production 
(industries) 
II. 1.1 Generation 
of income 
(primary input 
II. 1 2 Allocation 
of primary 
(institutional 
sectors) 
II.2 Secondary 
dislnhution 
(institutional 
sectors) 
11.4 Use of 
(institutional 
sectors) 
Capital 
(institutional 
sectors) 
fixed capital 
formation 
(.ndustriss) 
III.2 Financial 
(financial 
assets^ 
Capiul Agriculture, forestry and fishery products (0) 
Ores and minerals, electricily, manufacturing and construction (t>5) 
Services (6-9) 
Agriculture, hunting, forestry and fishing (A-B) 
Mining, manufacturing, electricily and construction (C-F) 
Services (O-P) 
Compensation 
or 
employees 
Ouier taxes less subsidies on 
Operating surplus, net 
Mixed income, net Domestic 
Residents abroad 
production Resident male 
Resident female 
Non-residents 
Households, employees 
Households, other 
Corporations and NPISHs 
General govemment 
Households, employees 
Households, other 
Corporations and NPISHs 
General government 
Households, employees 
Households, other 
Corporations and NPISHs 
General government 
Households, employees 
Households, other 
Corporations and NPISHs 
General govemment 
Agriculture, hunting, forestry and fishing (A-B) 
Mining, manufacturing, electricity and construction (C-F) 
Services (G-P) 
Currency and deposits 
Loans 
Other financial assets la 
lb 
Ic 
lia 
lib 
nc 
Ilia 
nib 
lire 
nid 
irte 
nif 
nig 
IVa 
rvb 
rvc 
rvd 
Va 
Vb 
Vc 
Vd 
vu 
Vlb 
Vic 
Vld 
Vila 
Vllb 
Vile 
Vlld 
Villa 
vim, 
VHIc 
IXa 
rxb 
IXc 
X 
XI 0. Goods and 
services 
(products) 
la ID Ic 
2 76 -78 
87 2 -
2112 11 
39 1344 
2 111 20 
37 345 115 
128 2685 1412 TOTAL ECONOMY 
L Production 
(industrial) 
lia lib lie 
3 71 14 
36 969 246 
7 209 " 349 
8 311 153 
1 95 192 
1 1 
-2 49 11 
II 64 142 
14 262 156 
II 
92 
119 
89 2123 1383 tL 1.1 Oencration 
rfinotrmc 
(primary input 
categories) 
nia Ilfb IIIc Hid lllc Illf 111, 
452 278 - 6 - - 16 
20 10 - - - 60 416 
141 -
58 16 • 
2 
472 288 2 6 58 217 432 III Allocation 
of primary 
(Inatrtutionat 
sectors) 
rva rvb rvc rvd 
15 II 
52 24 
3 28 174 II 
23 -
771 
577 
94 
191 
4 9 26 -
778 614 384 237 IU Secondary 
distribution 
0Mth«lonsl 
factors) 
Va Vb Vc Vd 
^ 
56 197 
23 92 
58 59 16 12 
320 134 37 92 
646 
499 
107 
352 
4 35 
1024 692 243 780 11.4 Use of 
dtapotablc 
(tmllrulional 
aeetors) 
Via Vlb Vic Vld 
16 12 • 2 
339 269 - 3 
208 152 13 357 
2 • 
9 -
85 
75 
83 
-10 
648 508 107 352 Capital 
(inHrftnlonal 
aeclori) 
Vila Vllb VIIo Vlld 
1 -
2 4 28 3 
16 7 
4 4 25 
1 4 • 
4 36 -
1 14 92 7 
56 12 44 7 
5 194 45 
26 82 102 68 
4 
86 130 516 166 Fixed capital 
formatioo 
(industries) 
Villa VHIb Vlllc 
2 -
9 109 233 
23 -
11 132 233 III 2 Financial 
(financial 
assets) 
IXa DCb IXc 
1 
28 4 
130 95 175 
2 94 74 
132 217 254 ROW 
Current 
X 
7 
435 
94 
6 
32 
27 
7 
4 
6 
-41 
577 Capiul 
XI 
1 
13 
-27 
-24 
•37 TOTAL 
128 
2685 
1412 
89 
2123 
1383 
472 
288 
2 
6 
58 
217 
432 
778 
614 
384 
237 
1024 
692 
243 
780 
648 
508 
107 
352 
86 
130 
516 
166 
Ii 
I32 
233 
132 
2I7 
254 
577 
-37 
to 
TABLE VIII x4: Example of a detailed submatrix: NET VALUE ADDED (BASIC PRICES) 
(TABLE VT.II.x2, cell 3,2) Agri- Fishing 
culture, 
hunting 
and 
forestry Mining 
and 
quarrying Manufac­
turing INDUSTRIES (by NACE-sections) 
Elec-
tricity, 
gas and 
water 
supply Construc­
tion 
IIb3 Wholesale, 
retail trade, 
repair of 
motor vehicles 
households 
goods restau­
rants Transport, Financial 
storage, Inter-
communi- mediation 
cation Real Public 
estate, adminlstra-
rentlng Hon, 
and defence and 
business compulsory 
services socsecurHy Educa­
tion Health Other 
and communlt 
social social, 
work personal 
services Financial 
Inter­
mediation 
services 
Irrflrectly 
measured 
IIcl HcS IIc6 IIc8 Hc9 IIclO 
Com-
pen-Resi-
dent 
male 
Resi­
dent 
female Agricultural 
Clerical, sales, service 
Professional, 
managerial, etc. 
Non-resident em] Agricultural 
Manual 
Clerical, sales, service 
Professional, 
managerial, etc. Rural 
Urban 
Rural 
Urban 
Rural 
Urban 
Rural 
Urban 
Rural 
Urban 
Rural 
Urban 
Rural 
Urban 
Rural 
Urban 
iplo yees Ilia I 
IIIa2 
iïla3 
nia4 
IIIa5 
IIIa6 
II1«7 
IllaS 0.0 
21.1 
105.3 
5.9 
35.6 
17.7 
47.7 14.0 
20! 
Illbl 
IIIM 
Illb3 
IIIb4 
Htb5 
Iirb6 
iin>7 
nibs 24.2 
36.6 6.8 
0.5 
46.0 
165.9 
20.0 
75.9 
46.1 
111.0 
1.1 
0.0 
7.5 
18.8 
47.8 
142.1 
21.0 
493 
2.01 
Residents In non-resident enterprises 
Other taxes less subsidies on production 
OO Opera- Households (owner-occupied housing) 
NPISHs and govemment unincorporated 
enterprises 
Corporations Public 
National private 
Foreign inn 
HID 
Ulf4 
inrs 21.0 
10.1 
11.5 -33.0 21.01 
26 3 j 
103.71 
Mi.xcd i Rural 
Urban IHgl 
nig2 65.4 
161.6 10.7 
20.4 32.9 
61.1 
SUBTOTALS: 
Compensation of employees (paid by resident prod) 
- Resident male 
- Resident female 
• Non-resident 
Mixed income and operating surplus 
- Operating surplus, net 
-Mixed income,'net 13.0 
II.I 
232 
10.8 
12.4 317.3 
233.3 
254.0 
27.0 
227.0 18.5 
15.4 39.0 
17.3 
21.3 
0.2 
25.5 
-5.6 
31.1 15.9 
14.3 
15.5 
12.5 35.5 
20.1 
13.4 
0.0 
23.5 
18.5 
5.0 18.4 
11.3 
205.5 
111.5 
94.0 21.9 
16.9 37.1 
29.9 
18.3 
7.5 49.6 
42.6 -48.0 
-48.01 761.8 
472.2 
287.6 
2.0 
649.1 
217.1 
432.0 
TOTAL NET VALUE ADDED 
CHAPTER IX 
INPUT-OUTPUT FRAMEWORK 
-299 
INTRODUCTION 
9.01. The input-output framework consists of three types of tables: 
supply and use tables; 
tables linking the supply and use tables to the sector accounts; 
symmetric input-output tables. 
9.02. Supply and use tables are matrices by industry and product describing the domestic 
production processes and the transactions in products of the national economy in great 
detail. These tables show: 
the structure of the costs of production and the income generated in the production 
process; 
the flows of goods and services produced within the national economy; 
the flows of goods and services with the Rest of the World. 
9.03. A supply table shows the supply of goods and services by product and by type of supplier, 
distinguishing output by domestic industries and imports. A simplified example of a supply 
table is given in table IX. 1. 
Table IX. 1 A simplified supply table 
Supplies 
Products 
Total (1) 
(2) Industries 
(1) 
Output by product and 
by industry 
Total output by industry Rest of the World 
(2) 
Imports by product 
Total imports Total 
(3) 
Total supply by product 
Total supply 
9.04. A use table shows the use of goods and services by product and by type of use, i.e. as 
intermediate consumption (by industry), final consumption, gross capital formation or 
exports. Furthermore, the table shows the components of gross value added, i.e. 
compensation of employees, other taxes less subsidies on production, net mixed income, 
net operating surplus and consumption of fixed capital. A simplified example of a use table 
is given in table IX.2. 
300-
Table IX.2 A simplified use table 
Uses 
Products 
Components of 
value added 
Total (1) 
(2) 
(3) Industries 
(1) 
Intermediate 
consumption by 
product and by 
industry 
Value added by 
component and 
by industry 
Total inputs by 
industry ROW 
(2) 
Exports 
-Final cons. 
(3) 
Final 
consumption 
expenditure 
-Gross cap. 
formation 
(4) 
Gross capital 
formation 
' 
-Total 
(5) 
Total use by 
product 
-
9.05. Between the supply and use tables, two types of identities hold good (provided supplies 
and uses are valued consistently, see tables IX.5 and IX.6): 
(1) The identity by industry: Output by industry = Input by industry. In terms of our 
simplified supply and use table, this indicates that the row vector in cell (2,1) in table 
IX. 1 should be equal to that in cell (3,1) in table IX.2. 
So, for each industry: 
Output = Intermediate consumption + Value added. 
(2) The identity by product: Total supply by product = Total use by product. 
In terms of our simplified tables, the column vector in cell (1,3) of table IX. 1 should be 
equal to the column vector in cell (1,5) of table IX.2. 
So, for each product: 
Output + Imports = Intermediate consumption + Exports + Final consumption expenditure 
+ Gross capital formation. 
These identities by industry and product can be used to check and improve the consistency 
and completeness of estimates (see para 9.11.). 
301 
9.06. Supply and use tables are the central framework for all tables by industry, e.g. those on 
employment, gross fixed capital formation and capital stock. 
9.07. The supply and use tables contain all the flows in the following accounts: 
the goods and services account; 
the production account; 
the generation of income account. 
9.08. A supply table and a use table can also be combined and presented as a single table. This 
can be achieved by adding two rows and a column to the use table, for output and imports 
(see table IX.3). Note that the rows and columns from the supply table presented in para 
9.03. have been transposed here. 
Table IX.3 A simplified combined supply and use table 
Products 
Industries 
Components 
of value added 
ROW 
Total (1) 
(2) 
(3) 
(4) 
(5) Products 
(1) 
-
Output 
-
Imports 
Total supply 
by product Industries 
(2) 
Intermediate 
consumption 
-
Value added 
_ 
Total inputs 
by industry ROW 
(3) 
Exports 
-
-
_ 
-Final cons. 
(4) 
Final 
consumption 
expenditure 
-
-
_ 
-Gross cap. 
formation 
(5) 
Gross capital 
formation 
-
-
_ 
-Total 
(6) 
Total use by 
product 
Total output 
by industry 
-
_ 
-
- 302 
9.09. A symmetric input-output table is a product by product or industry by industry matrix 
describing the domestic production processes and the transactions in products of the 
national economy in great detail. A symmetric input-output table rearranges both supply 
and use in a single table. There is one major conceptual difference between a symmetric 
input-output table and a combined supply and use table: in the supply and use table, the 
statistics relate products to industries, while in the symmetric input-output table the 
statistics relate products to products or industries to industries. So, in a symmetric input-
output table either a product or an industry classification is employed for both rows and 
columns (see table IX.4). 
Table IX.4 A simplified symmetric input-output table (product by product) 
Products 
Components of 
value added 
ROW 
Total (1) 
(2) 
(3) 
(4) Products 
(1) 
Intermediate 
consumption 
Value added 
Imports 
Total supply by 
product ROW 
(2) 
Exports 
-
_ 
-Fin^l 
consuniption 
expenditure 
(3) 
Final 
consumption 
expenditure 
-
_ 
-Gross capital 
formation 
(4)? 
Gross capital 
formation 
-
_ 
-Total 
(5) 
Total use by 
product 
-
_ 
Total supply = 
Total use 
9.10. Most statistical information that can be obtained from producer units indicates what type of 
products they have sold and, usually less detailed, what type of products they have 
bought/used. The format of the supply and use tables is designed to fit in with this type of 
statistical information (i.e. industry by product). By contrast, information of a product by 
product or industry by industry nature as required by the symmetric input-output table is 
not often available. For example, surveys of industries usually provide information about 
the type of products used and about the products produced. However, information on the 
inputs in terms of products and value added components for each product produced is 
usually not collectable (ideally, the administration of an enterprise should show all costs 
allocated to the various types of output and, simultaneously, show the composition of 
intermediate consumption by type of product). In practice, information arranged in the 
form of supply and use tables is therefore a practical starting point for constructing the 
more analytic information in the symmetric input-output tables. The industry by product 
information in the supply and use tables can be converted into product by product (industry 
by industry) statistics by adding extra statistical information on the input structures, or by 
assuming constant input structures by product or by industry (see paras 9.54. - 9.60.). 
303 
9.11. The supply and use tables serve both statistical and analytical purposes. 
Important statistical purposes are: 
identifying gaps and inconsistencies in basic data sources; 
weighting and calculation of index numbers and price and volume measures; 
making estimates by residual (estimating a variable by first estimating all other 
variables in the identity), e.g. for the production or final consumption of specific 
products; 
checking and improving the consistency, plausibility and completeness of figures in 
the supply and use tables and the derived figures (such as those in the production 
accounts). To this end, the balancing process should not be limited to the supply and 
use tables at current prices: 
* By compiling supply and use tables at current and constant prices for two or 
more years, estimates of changes in volumes,' values and prices can be balanced 
simultaneously: compared to integrating supply and use tables for a single year 
in isolation, this is a major extension of the effectiveness of the integration 
framework. 
* With me aid of me tables showing the linkage with the sector accounts, a direct 
comparison can be made with information from the latter, e.g. information on 
the distribution of income, on saving and on net lending (calculated as the 
result of financial transactions). This at least guarantees that, after the 
balancing process, consistency is obtained between the supply and use tables 
and the sector accounts. 
* Trying to derive symmetric input-output tables from the supply and use tables 
may reveal inconsistencies and weaknesses in the supply and use tables. In this 
respect, there is therefore also a feedback from the symmetric input-output 
tables to the supply and use tables. 
estimating figures for periods on which less reliable information is available, e.g. 
estimating annual figures on the basis of the detailed supply and use figures for a 
benchmark year or estimating quarterly figures on the basis of annual supply and use 
tables. 
9.12. The supply and use tables and symmetric input-output table give a detailed picture of the 
composition of the supply and use of goods, services and labour and the primary incomes 
involved. These tables and the ratios that can be derived from them, such as productivity 
figures, are an important subject for economic analysis. 
304 
9.13. The supply and use tables and input-output table can also be used as tools of economic 
analysis. Both types of tables have different merits. For calculating direct and indirect 
effects, the supply and use tables need to be accommodated with specific assumptions or 
extra statistical information. For calculating cumulative effects, these assumptions and 
extra data requirements are the strongest. In fact, the requirements for calculating 
cumulative effects with a supply and use table amount to constructing a symmetric input-
output table. Therefore, for calculating cumulative effects, the symmetric input-output 
table is the preferrable tool. However, for calculating direct effects and first-order effects, 
the supply and use tables adjusted with a selected amount of assumptions (or extra 
statistical information) is in general to be preferred, because: 
the calculation is less dependent on assumptions; 
the supply and use table provides more detail than the symmetric input-output table; 
the information in the supply and use table can be better linked to other types of 
statistical data. 
These features are also helpful when the supply and use tables are integrated in a macro-
economic model: the resulting overall model is more close to real statistics, can show a lot 
of detail and can relatively easily be linked to areas on which other statistical data are 
available (e.g. on the labour market or the environment). 
9.14. The supply and use tables and symmetric input-output table can be used to calculate: 
effects of changes in prices or tax rates on the values of supply or use; 
effects of changes in volumes on the values of supply or use; 
effects of changes in prices of supply on prices of use. ; 
effects of changes in the volume of use on the volume of supply; 
effects of changes in the volume of supply on the volume of use; 
The calculations can show indirect as well as direct effects. For example, a significant 
increase in energy prices will affect not only those industries that use energy intensively, 
but also those industries that use the outputs of the energy-intensive producers. With the 
aid of some assumptions, estimates of the size of such indirect effects can be deduced from 
the supply and use and symmetric input-output tables. Examples of common assumptions 
are: 
a constant input structure in terms of values; 
a constant composition of the value of output by industry and by product; 
a constant composition of the value of final consumption expenditure of households 
by product. 
These assumptions are rather rigid as they imply that relative prices do not change, that the 
production processes remain technically the same and that no substitution occurs between 
categories of final consumption expenditure by households. However, these general 
assumptions can be modified by allowing first for changes in relative prices, e.g. the 
Leontief-price model. This can then be extended with econometric or other estimates of the 
influence of relative prices and other variables on technical coefficients or final 
consumption expenditure by households. 
- 305 
The calculations need not be confined to the supply and use of goods and services. They 
could also be applied to the supply and use of labour and the components of value added. 
9.15. The supply and use tables and the symmetric input-output table can be integrated into 
macro-economic models to provide the latter with a detailed meso-economic foundation. 
Specific types of analysis served by supply and use tables and the symmetric input-output 
table are, for example: 
analysis of production, cost structures and productivity; 
analysis of prices; 
analysis of employment; 
analysis of the structure of capital formation, final consumption, exports,etc; 
analysis of the relationship between domestic production and the environment (e.g. 
focusing on the use of specific products like fuel, paper and glass); 
analysis of imports of energy required; 
impact analysis of new technologies; 
sensitivity analysis of the effects of changes in tax rates and regulation. 
SUPPLY AND USE TABLES 
9.16. Tables IX.5 and IX.6 show the supply and use tables in more detail. 
9.17. The classification used for industries is the NACE.Rev. 1 and the classification employed 
for products is the CPA; these classifications are fully aligned to each other: at each level 
of aggregation, the CPA shows the principal products of the industries according to the 
NACE.Rev. 1. 
9.18. In the supply and use tables, the classification for products is at least as detailed as the 
classification for industries, e.g. the three digit-level of the CPA (200 groups) and the two 
digit-level of the NACE.Rev. 1 (60 groups). 
9.19. The distinction between market output, output for own final use and other non-market 
output is only to be used for the total output by industry; the distinction is not required for 
each product group. 
9.20. The distinction between market producers and producers for own final use on the one hand 
and other non-market producers on the other hand should only be used by industry when 
both types of producers are present within one industry. In general, this distinction will 
therefore only be used for subclassifying a very limited number of industries, e.g. health 
care and education (see para 3.56.). 
9.21. Imports and exports should be subdivided into: 
intra-EU deliveries; 
imports and exports with other countries. 
306 
Table IX.5. A supply table at basic prices, including a transformation into purchasers' prices 
o 
-vJ 1 
2 
3 
4 
Products 
(CPA) 
m 
(Adjustm. items) 
2(1) 
Total ofwhich: 
Market output 
For own final use 
Other non-market 
output (1) 
(2) 
(3) Industries (NACE) 
12 3 4... ....n 
(1) 
Output by product and by industry at 
basic prices 
Total output by industry 2(1) 
(2) 
V Imports 
cif 
(3) 
0 
0 Total supply 
at basic 
prices 
(4) Trade and 
transport margins 
(5) 
0 
0 
0 Taxes less 
subsidies on 
products 
(6) Total supply 
at purchasers' 
prices 
(7) 
Table IX.6. A use table at purchasers' prices 
1 
2 
3 
Products 
(CPA) 
m 
(Adjustment items) 
2(1) 
Comp.of empl. 
Other net taxes on 
production 
Cons, of fixed capital 
Oper. surplus, net 
1(3) 
2(1) + 2 (3) 
Suppl. information: 
Gr. fixed cap. form. 
Stocks of fixed assets 
Labour inputs (1) 
(2) 
(3) 
(4) 
(5) 
(6) Industries (NACE) 
1 2 3 .... ...n 
(1) 
Intermediate consumption at purchasers' 
prices by product and by industry 
Total interm. consumption by industry 
Components of value added by industry 
Value added by industry 
Output at basic prices by industry 2(1) 
(2) Final uses 
a) b) c) d) e) f) 
(3) 
Final uses at purchasers' 
prices: 
Final consumption exp: 
a) by households 
b) by NPISH 
c) by government 
Gross capital formation: 
d) gr. fixed capital form, 
and valuables 
e) changes in inventories 
f) Exports 
Total final uses by type 2(3) 
(4) 2(1) + 
2(3) 
(5) 
Total use 
-
9.22. In the supply table, flows of goods and services are valued at basic prices. In the use table, 
the flows of goods and services are valued at purchasers' prices. In order to attain identities 
between supply and use, table IX.5 also shows the transition of supply at basic prices to 
supply at purchasers' prices. As supply should be equal to use, the table reveals also the 
transition of uses at purchasers' prices to uses at basic prices. As a consequence, two 
identities can be derived from this transition: 
supply at purchasers' prices is equal to use at purchasers' prices; 
supply at basic prices is equal to use at basic prices. 
9.23. Value added is recorded at basic prices. It is the net result of output valued at basic prices 
less intermediate consumption valued at purchasers' prices. 
9.24. Value added at factor cost is not a concept in the ESA. Nevertheless, it could be derived 
from value added at basic prices by subtracting other taxes less subsidies on production. 
9.25. GDP is valued at market prices. This aggregate can be derived from the supply and use 
tables in three different ways: 
the aggregate of output at basic prices by industry minus the aggregate of 
intermediate consumption at purchasers' prices by industry plus net taxes on products 
(the production approach); the intermediate consumption by industry includes the use 
of financial intermediation services indirectly measured that are recorded in a 
nominal industry (see para 9.33.); 
the aggregates of the various components of value added at basic prices by industry 
minus the use of financial intermediation services indirectly measured (recorded in a 
nominal industry, see para 9.33.) plus the net taxes on products (the income 
approach); 
the sum of final uses categories minus imports: exports - imports + final 
consumption expenditure + gross capital formation (all at purchasers' prices) (the 
expenditure approach). 
9.26. The use table IX.6 also contains some supplementary information: gross fixed capital 
formation, stocks of fixed assets and labour inputs by industry. This information is crucial 
for productivity analysis and may also serve several other types of analyses (e.g. analysis 
of employment). 
9.27. In the ESA, the stocks of fixed assets are valued at the market prices prevailing on the date 
of the balance sheet. For fixed assets bought in earlier years, this implies that consumption 
of fixed capital of the foregoing years is to be deducted from the current market prices of 
new assets of the same type and quality. This net concept of fixed capital stock could be 
used in calculating capital intensity. However, for productivity analysis more often a 
specific gross concept of fixed capital stock is used. According to this gross concept all 
fixed assets should be valued at the current market prices of new assets of the same type 
and quality; no deduction should be made for capital consumption in the last and earlier 
years. This gross concept of fixed capital stock is no standard concept in the ESA, but can 
easily be calculated with the aid of the Perpetual Inventory Method. Considering the great 
use of such gross figures, it is recommended to include both gross and net figures on fixed 
capital stock as supplementary information. 
-309-
(20] 
9.28. For productivity analysis, hours worked is the preferable labour input variable. In drawing 
inferences about employed persons, however, also the number of jobs may be relevant. 
Both variables can be subclassified, e.g. into the part pertaining to employees and to self-
employed persons. 
9.29. For a proper compilation and understanding of the supply and use tables, it is important to 
recall some of the accounting conventions employed in the ESA: 
The outputs of ancillary activities are not recorded separately; all the inputs consumed 
by an ancillary activity are treated as inputs into the principal or secondary activity 
which it supports. Ancillary activities may be, for example, marketing, accounting, 
storage and cleaning (see paras 3.12. and 3.13.). 
Goods or services produced and consumed within the same accounting period and 
within the same local KAU are not separately identified. They are therefore not 
recorded as part of the output or intermediate consumption of that local KAU. This 
may pertain for example to: 
* seeds and plants for sowing and planting; 
* hard coal consumed in the production of briquettes by coal mines; 
* electrical energy consumed by power stations. 
Minor processing, maintenance, servicing or repair on behalf of other local KAUs is 
to be recorded net, i.e. excluding the value of the goods involved. By contrast, when 
the goods are subject to a substantial physical change, the transaction should be 
recorded gross, i.e. as the purchase and sale of the goods involved. 
Durable goods can be rented or be subject to operating leasing. In such instances, 
they are recorded as fixed capital formation and fixed capital stock in their owner's 
industry; in the industry of the user intermediate consumption by amount of the rent 
is recorded. 
Persons working via temporary agencies are recorded as being employed in the 
industry of these agencies and not in the industries in which they are actually 
working. As a consequence, in the latter industries, the payments for these persons 
are recorded as intermediate consumption (and not as compensation of employees). 
Labour contracted out is treated similarly. 
Employment and compensation of employees in the ESA are broad concepts: 
* Employment for social reasons is also counted as employment; this applies, for 
example, to work placements for disabled people, employment projects for 
people who have been unemployed for a long time and employment 
programmes for young people seeking jobs. As a consequence, the people 
involved are employees and receive compensation of employees (not social 
transfers), though their productivity may be (much) lower than that of the other 
employees. 
* Employment includes also some cases in which the persons involved are not 
expected to work at all, e.g. persons dismissed but receiving for some period 
payments from their former employer. However, labour input in terms of hours 
worked is not distorted by this convention, as no hours are actually worked. 
310 
9.30. In the supply and use tables, two adjustment items should be introduced for reconciling the 
valuation of imports in the supply and use tables and in the sector accounts (see also table 
3.2). 
In the supply table, imports of goods are valued at cif values. This is an overstatement of 
the costs of imports when the transport and insurance services incorporated in the cif value 
are provided by residents (e.g. own-account transport or transport by specialized resident 
transporters). In order to obtain the right balance between imports and exports, exports of 
services should thus also be increased by amount of this overstatement of imports. In the 
sector accounts, imports of goods are valued at fob values. This is an overstatement of 
imports like in the case of cif valuation. However, in the case of fob valuation the 
overstatement is smaller, which implies that the imputed increase in exports is smaller too. 
The result of employing different valuation principles is thus that net total imports are the 
same, but that both total imports and total exports are larger for cif valuation. The two 
valuation principles can be reconciled in the supply and use tables by introducing 
adjustment items for imports as well as exports. The adjustment items should be equal to 
the value of the transport and insurance services by residents incorporated in the cif value 
but not in the fob value, i.e. referring to the transport and insurance from the border of the 
exporting country to the border of the importing country. These adjustment items, once 
incorporated in the supply and use tables, need no special treatment in the input-output 
calculations. 
9.31. The transfer of existing goods is recorded in the use table as a negative expenditure for the 
seller and a positive expenditure for the purchaser. For the product group involved, the 
transfer of an existing good amounts to a reclassification among uses. Only the transaction 
costs are not a reclassification:, they are recorded as a use of business or professional 
services. For the purposes of description and analysis, it can be useful to show for some 
product groups the relative size of the transfer of existing goods separately, e.g. the 
importance of second-hand cars or the importance of recycled of paper. 
9.32. Direct purchases abroad by residents and purchases on the domestic territory by non­
residents are commonly estimated as a special excercise in the statistical compilation 
process. They are introduced as adjustments to inititial estimates of imports, exports and, 
by amount of the consumption part of the purchases abroad, final consumption 
expenditure. In order to obtain a balance between supply and use by product, all these 
purchases should be split over the various product groups involved. For the product groups 
where these types of purchases are important, they could be shown as a subcategory, e.g. 
expenditure on accommodation. 
9.33. Throughout the supply and use tables, the NACE.Rev. 1 industry classification is extended 
with a nominal industry for the use of financial intermediation services indirectly 
measured. In the supply table, no transactions are recorded at all for this industry. In the 
use table, the total use of financial intermediation services indirectly measured is recorded 
as the intermediate consumption of this nominal industry. As this nominal industry does 
not have any other transactions, its net operating surplus is negative by the amount of its 
intermediate consumption; all other components of its value added are zero. As a 
consequence, its total gross value added is equal to its (negative) net operating surplus. 
-311 
9.34. The transition from supply and use at basic prices to purchasers' prices involves: 
reallocating trade margins; 
reallocating transport margins; 
adding taxes on products (except deductible VAT); 
deducting subsidies on products. 
The estimation of this transition is an important part of the balancing process. Separate 
tables can show the transition in more detail (see tables IX.7 and IX.8). These tables can 
also serve important analytical purposes, e.g. analysis of prices and analysis of the 
consequences of changes in the rates of taxes on products. 
9.35. In general, when preparing supply and use tables and making the proper balancing between 
the two sides, there is always a choice of emphasis between two opposite ways of adjusting 
statistical data: 
(1) Supply of each product at basic prices could be adjusted to a purchasers' prices 
valuation to allow balancing with uses at purchasers' prices; 
(2) Each of the uses at purchasers' prices could be adjusted to a basic prices' valuation to 
match with supply at basic prices. 
9.36. In practice, both types of balances may be needed to build up a supply and use table. Both 
alternatives deal with or require similar kinds of adjustments, i.e. for taxes less subsidies 
on products and trade and transport margins by products. In fact, the first alternative is not 
possible without the second, since it is usually not possible to know the columns of taxes 
on products, subsidies on products and trade and transport margins broken down by 
products in the supply table unless the distribution among uses of the individual products is 
known from the use table at purchasers' prices (table IX.6). 
9.37. Thus, the following tables are involved in the balancing process: 
the supply and use tables IX.5 and IX.6 showing the final results of balancing totals 
of supply and use by products at purchasers' prices and at basic prices; 
the tables on trade and transport margins and on taxes less subsidies on products 
(tables IX.7 and IX.8). 
9.38. The transition of supply and use from basic prices to purchasers' prices (see para 9.34.) 
amounts to reallocating trade margins: valuation at basic prices implies that the trade 
margins are recorded as part of the product trade, while valuation at purchasers' prices 
implies that the trade margins are allocated to the products to which they pertain. An 
analogous situation holds for transport margins. 
9.39. The total of trade margins by product is equal to the total of trade margins by the trade 
industries plus the secondary trade margins by other industries. An analogous equation 
holds for the transport margins. 
-312 
Table IX.7. A simple trade and transport margins table. 
I 1 
2 
3 
Products 
(CPA) 
m 
2(1) 0) 
(2) Industries (NACE) 
1 2 3 .... ...n 
(1) 
Trade and transports margins on 
intermediate consumption by product and 
by industry 
Trade and transports margins on interm. 
consumption by industry 2(1) 
(2) Final uses 
a) b) c) d) e) f) 
(3) 
Trade and transport 
margins on final uses: 
Final consumption exp: 
a) by households 
b) by NPISH 
c) by government 
Gross capital formation: 
d) gr. fixed capital form, 
and valuables 
e) changes in inventories 
f) exports 
Trade and transport 
margins on final uses by 
type 2(3) 
(4) 2(1) + 
2(3) 
(5) 
Total tr. & 
tr. margins 
Table IX.8. A simple taxes less subsidies on products table. 
i 1 
2 
3 
Products 
(CPA) 
m 
2(1) 0) 
(2) Industries (NACE) 
1 2 3 .... ...n 
(1) 
Taxes less subsidies on products on 
intermediate consumption by product and 
by industry 
Taxes less subsidies on products for 
interm. consumption by industry 2(1) 
(2) Final uses 
a) b) c) d) e) f) 
(3) 
Taxes less subsidies on 
products for final uses: 
Final consumption exp: 
a) by households 
b) by NPISH 
c) by government 
Gross capital formation: 
d) gr. fixed capital form, 
and valuables 
e) changes in inventories 
f) Exports 
Taxes less subsidies on 
products for final uses 
by type 2(3) 
(4) 2(1) + 
2(3) 
(5) 
Total taxes 
less 
subsidies 
on 
products 
9.40. The transport margin consists of all transportation costs that are included in the use of 
products at purchasers' prices but not in the basic prices of a manufacturers' output or in the 
trade margins of wholesale or retail traders. The transport margin includes in particular: 
transport of goods from the place where it is manufactured to the place where the 
purchaser takes delivery of it in case the manufacturer pays a third party for the 
transport; 
transport of goods arranged in such a way that the purchaser has to pay separately for 
the transport costs even when the transport is done by the manufacturer or the 
wholesale or retail trader himself. 
All other costs of transporting goods are not recorded as transport margins, e.g.: 
if the manufacturer transports the goods himself, these transportation costs will be 
included in the basic prices of the manufacturer's output; this transport represents an 
ancillary activity and the individual costs of transport will be not identifiable as 
transportation costs; 
if the manufacturer arranges for the goods to be transported without a separate invoice 
for the transport services, these transportation costs will be included in the basic prices 
of the manufacturer's output; these transportation costs will be identifiable as such and 
be recorded as part of the manufacturer's intermediate consumption; 
if wholesale and retail traders arrange for goods to be moved from where they take 
delivery of them to where another purchaser takes delivery, these costs will be 
included in the trade margin if no separate charge is made for transportation to the 
purchaser. Again, as with manufacturers, these costs may represent ancillary activity 
of wholesale and retail traders or the purchase of an intermediate service, thus entering 
trade margins but not transport margins. 
if a household buys goods for final consumption purposes and arranges for transport 
by a third party, these transport costs are recorded as final consumption expenditure on 
services (and not included in some trade or transport margin). 
9.41. Table IX.7 shows a somewhat simplified picture of a trade and transport margins matrix, 
because: 
No. explicit distinction is made between trade and transport margins. Both types of 
margins could be shown for each product group. Another solution is to have separate 
tables: one for trade margins and one for transport margins; 
For trade margins, a distinction between wholesale trade and retail trade should be 
made in order to take account of the differences in their prices. In drawing up the 
tables, it should be realized that wholesale traders may also sell directly to households 
(e.g. furniture) and that retail traders may also sell to industries (e.g. to cafes and 
restaurants). 
315 
In calculating and analysing trade margins on products for final consumption 
expenditure by households, for each product group the most important distribution 
channels could also be distinguished in order to take account of the differences in their 
prices; the distinction between wholesale trade and retail trade is in fact too rough. For 
example, goods and services can be bought by households in the supermarket, the 
grocery, flower shop, department store, abroad or obtained as income in kind. 
Furthermore, for some products, secondary sales may be very important, e.g. in the 
case of cigarettes this can pertain to the sales by cafes, restaurants and petrol stations. 
Of course, such more refined distinctions can only be introduced if the available data 
sources provide sufficient information for at least rough estimates of the importance of 
each of the distribution channels. 
In calculating transport margins, a distinction by type of transport (e.g. by rail, air, 
sea/inland waterway or road) could be very useful. 
9.42. Taxes on production and imports consist of: 
taxes on products (D21): 
* value-added-type taxes (VAT) (D211); 
* taxes and duties on imports; except VAT (D212); 
* taxes on products, except VAT and import taxes (D214); 
other taxes on production (D29). 
Similar categories are distinguished for subsidies on production and imports. Subsidies are 
treated as if they were negative taxes on production and imports. 
The definitions of all these categories are given in paras 4.17. - 4.24. 
9.43. Supply at basic prices includes net other taxes on production (i.e. less other subsidies on 
production). In order to make the transition from basic prices to purchasers' prices (or vice 
versa; see para 9.34.), the various taxes on products should be added and the subsidies on 
products should be deducted (or vice versa). 
9.44. VAT may be deductible, non-deductible or just not applicable: 
Deductible VAT usually applies to most of intermediate consumption, most of gross 
fixed capital formation and part of changes in inventories. 
Non-deductible VAT often applies to final consumption expenditure, part of gross 
fixed capital formation, part of changes in inventories and part of intermediate 
consumption. 
VAT is in general not applicable for: 
* exports (at least those to countries outside the EU); 
* any goods or services subject to a zero rate of VAT regardless of their use; 
* any producers exempted from VAT registration (small businesses, religious 
organizations, etc.). 
316-
9.45. VAT is recorded net in the ESA: all supplies are valued at basic prices, i.e. excluding 
invoiced VAT; intermediate and final uses are recorded at purchasers' prices, i.e. excluding 
deductible VAT. 
9.46. Table IX.8 on taxes less subsidies on products is simplified, because: 
the different types of taxes on products are not distinguished and subsidies are not 
shown separately; 
different tax rates and subsidies can apply to different distribution channels; the latter 
should therefore also be distinguished when relevant and sufficient information 
exists. 
9.47. Taxes and subsidies on products are the amounts due for payment only when evidenced by 
tax assessments, declarations, etc. or the amounts actually paid (see para 4.27.). Taxes (and 
subsidies) on products are usually estimated by product by applying the official tax 
(subsidy) rates to the various flows. Afterwards an analysis should be made of the 
differences with the tax assessments or the amounts actually paid. 
Some of these differences indicate that the initial estimate of taxes on products does 
not comply to the ESA definitions: 
* in case of exemption the initial estimate of taxes on products should therefore 
be lowered; 
* in case of evasion of the payment of taxes on products (e.g. the payment of 
taxes is compulsory but there is no tax assessment), the estimate of taxes on 
products should therefore be lowered; 
* in case of fines the estimate of taxes on products should be increased. 
Changes in the estimates of taxes on products has concomittant effects on variables 
estimated by adding up or deducting the estimate of taxes on products. For example, output 
at basic prices of a specific product group may be estimated by deducting inter alia taxes 
on products from the estimated use at purchasers' prices. However, an estimate of output at 
basic prices may also be combined with inter alia estimates of taxes on products to arrive at 
an estimate of uses at purchasers' prices. 
Several other types of differences should not be accounted for in the supply and use 
table: 
* differences in timing, e.g. payments may relate to tax assessments of several 
years; 
* enterprises being unable to pay (bankruptcies): this should be recorded as an 
other change in the volume of financial assets and liabilities, i.e. not in the 
supply and use table. 
In some instances, the differences may also indicate that the initial estimate for taxes 
and subsidies on products is subject to serious error, e.g. because the output of some 
product is underestimated. Then also modifications of the estimates of the flows of 
goods and services can be justified. 
317-
In the transition from uses by product at purchasers' prices to basic prices, the modification 
of the initial estimate of taxes and subsidies on products may be shown as a separate item. 
However, for all input-output calculations it will be necessary to allocate this modification 
by product, even if this can only be based on a simple mathematical device (e.g. 
proportional allocation). 
9.48. The use table IX.6 does not show to what extent the goods and services used have been 
produced domestically or imported. This information is necessary for all analyses in which 
the link between supply and use of goods and services within the national economy plays a 
role. A case in point is the analysis of the impact of changes in exports or final 
consumption expenditure on imports, domestic production and related variables such as 
employment. In fact, it applies to most analyses indicated in paras 9.14. and 9.15. The 
input-output framework therefore contains also a use table for imported products and one 
for domestically produced goods and services (see tables IX.9 and IX. 10). 
9.49. The use table for imported products should be compiled by exploiting all information 
available on the uses of imports, e.g. for some products the major importing enterprises 
may be known and for some producers information on the amount of imports may exist. 
However, in general, direct statistical information on the use of imports is scarce. This 
information has therefore usually to be supplemented by assumptions by product group. 
9.50. The use table for goods and services produced domestically can then be obtained by 
deducting the use table for imported products from the general use table. 
9.51. In order to serve more specific purposes, the supply and use tables presented above can be 
modified by introducing alternative and supplementary classifications. Important cases in 
point are: 
more detailed product and industry classifications based on national classifications or 
to take account of specific purposes, e.g. for the analysis of the role of research and 
development in the national economy; 
more detailed geographical breakdown of imports and exports, e.g. intra-EU trade 
subclassified by country and extra-EU trade subclassified by economic regions and 
some specific countries such as the United States and Japan; 
classification of imports into: 
* imports of products that are also domestically produced 
('competitive imports'); 
* imports of products that are not domestically produced 
('complementary imports'). 
Both types of imports can be expected to have a different relationship with and 
importance for the national economy. Competitive imports can be the subject 
of analysis (and economic policy) as they may be a substitute for domestic 
output; they could therefore be incorporated as a separate category of 
(potential) final use in the use tables. For complementary imports, analyses will 
mainly focus on the impact of changes in their prices or volume (e.g. in the 
case of an oil crisis) on the national economy; 
3 IX 
Table IX.9. A use table for imports 
i 
O 1 
2 
3 
Products 
(CPA) 
m 
2(1) (1) 
(2) Industries (NACE) 
1 2 3 .... ...n 
(1) 
For imported products: Intermediate 
consumption at cif values by product and 
by industry 
Total interm. consumption of imported 
products by industry 2(1) 
(2) Final uses 
a) b) c) d) e) f) 
(3) 
For imported products: 
Final uses at purchasers' 
prices: 
Final consumption exp: 
a) by households 
b) by NPISH 
c) by government 
Gross capital formation: 
d) gr. fixed capital form, 
and valuables 
e) changes in inventories 
f) exports 
Total final uses of 
imported products by 
type 2(3) 
(4) 2(1) + 
2(3) 
.(5) 
Total 
imports 
Table IX. 10. A use table at basic prices for domestic output 
1 
2 
3 
Products 
(CPA) 
m 
2(1) 
Use of imported products 
Net taxes on products 
2(1)+ (3)+ (4) . 
Comp.ofempl. 
Other net taxes on 
production 
Cons, of fixed capital 
Oper. surplus, net 
2(5) 
2(1)+ (3)+2 (5) 
Fixed capital formation 
Fixed capital stock 
Labour inputs (1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) Industries (NACE) 
1 2 3 .... ...n 
0) 
For domestic output: Intermediate 
consumption at basic prices by product 
and by industry 
Total interm.cons. of domestic output at 
basic prices by industry 
Total interm. cons, of imported products 
by industry 
Net taxes on products for intermediate 
consumption by industry. 
Total interm. cons, at purch.p. by industry 
Components of value added by industry 
Value added by industry 
Output at basic prices by industry 2(1) 
(2) Final uses 
a) b) c) d) e) f) 
(3) 
For domestic output: 
Final uses at basic prices: 
Final consumption exp: 
a) by households 
b) by NPISH 
c) by government 
Gross capital formation: 
d) gr. fixed capital form, 
and valuables 
e) changes in inventories 
f) Exports 
Final use of domestic 
output at basic prices 
Final use of imported 
products at basic prices 
Net taxes onproducts for 
final use 
Total final uses by type 2(3) 
(4) 2(1) + 
2(3) 
(5) 
Total 
dom. 
output. 
Total 
imports 
Total net 
taxes on 
products 
Total use 
classification of compensation of employees by criteria such as level of education, 
part-time/full-time, age and sex. This classification could then also be applied to the 
supplementary information on employment. In this way, the supply and use tables 
can also be used for all kinds of analyses of the labour market; 
breakdown of compensation of employees into: 
* wages and salaries, ofwhich: 
social contributions by employees (global estimation of this concept may be necessary 
when the social contribution of an employee depends not only on the wage and salary 
but also on, e.g. the other revenues of the employee, the age and the marital status); 
* employers' social contributions; 
This breakdown permits analysis of the role of social contributions for the price of 
labour inputs and the shifting of this burden towards gross operating surplus; 
classification of final consumption by purpose (for households: COICOP and for 
government: COFOG). The functional classification of these expenditure enables the 
impact of each function on the rest of the economy to be assessed. For example, the 
importance of public and private expenditure on health care,transport and education 
can then be assessed. Another case in point is the analysis of the impact of 
government expenditure on defence for some domestic industries, in particular the 
producers of aircraft, trucks and weapons; 
reclassification of fixed capital formation and fixed capital stock for fixed assets that 
are rented out by the owner, e.g. in the case of operating leasing: the fixed assets can 
be recorded as if owned by the user (unlike the standard treatment in the ESA). The 
purpose of this reclassification is to make the cost structures of industries that rent 
fixed assets and those that own similar fixed assets comparable. For a consistent 
accounting treatment, this reclassification requires also the modification of the 
intermediate consumption of the lessor and the output of the lessee by amount of the 
rent of the fixed asset; 
reclassification of employment and compensation of employees for labour contracted 
out and persons working via temporary employment agencies: the purpose of this 
reclassification is to make the cost structure of industries more comparable by 
recording persons as employees in the industries 'where they actually work'. This 
reclassification also amounts to a modification of the concepts of intermediate 
consumption and output of the industries involved. 
-321 
TABLES LINKING THE SUPPLY AND USE TABLES TO THE SECTOR ACCOUNTS 
9.52. The information in the supply and use tables should be linked to the sector accounts, to 
ensure that the supply and use table is consistent with the sector accounts. This is achieved 
by introducing a table with variables cross-classified by industry and by sector (see table 
IX. 11). 
Table IX.11. Table linking the supply and use tables to the sector accounts 
Industries (NACE) 
1 2 3 
(1) £(1) 
(2) 
I. Non-financial corporations 
Total output 
Market output 
Output for own final use 
Other non-market output 
Intermediate consumption 
Gross value added 
Compensation of employees 
Other net taxes on production 
Consumption of fixed capital 
Operating surplus, net 
Gross fixed capital formation 
II. Financial corporations 
Total output 
Gross fixed capital formation 
m. General government 
rV. Households 
V. NPISH (1) 
Total of sectors 
Output 
Gross fixed capital formation (2) 
"22 
SYMMETRIC INPUT-OUTPUT TABLES 
9.53. In the ESA, the product-by-product input-output table is the most important symmetric 
input-output table and this table is described here. 
9.54. The product-by-product input-output table (see tables IX.4 and IX. 12) can be compiled by 
converting the supply and use tables, both at basic prices. This involves a change in format, 
i.e. from two asymmetric tables to one symmetric table (see also para 9.09.). The 
conversion can be divided into three steps: 
(1) allocation of secondary products in the supply table to the industries ofwhich they are 
the principal products; 
(2) rearrangement of the columns of the use table from inputs into industries to inputs into 
homogeneous branches (without aggregation of the rows); 
(3) aggregation of the detailed products (rows) of the new use table to the homogeneous 
branches shown in the columns, if appropriate. 
9.55. Step (1) involves transfers of outputs in the form of secondary products in'the supply table. 
Since secondary products appear as "off-diagonal" entries in the supply table, this kind of 
transfer is a comparatively simple matter. These secondary products are treated as 
additions into the industries for which they are principal and removed from the industries 
in which they were produced. 
9.56. Step (2) is more complicated, as the basic data on inputs relate to industries and not to each 
individual product produced by each industry. The kind of conversion to be made here 
entails the transfer of inputs associated with secondary outputs from the industry in which 
that secondary output has been produced to the industry to which they principally 
(characteristically) belong. In making this transfer, two different approaches might be 
taken: 
by means of supplementary statistical and technical information; 
by means of assumptions. 
9.57. Supplementary statistical and technical information should be utilized as much as possible. 
For example, it might be possible to obtain specific information on the inputs required to 
produce certain kinds of output. However, information of this kind is usually incomplete. 
Ultimately it will usually be necessary to resort to simple assumptions to make the 
transfers. 
9.58. The assumptions used to transfer outputs and associated inputs hinge on two types of 
technology assumptions: 
(1) industry technology, assuming that all products produced by local KAUs in an 
industry are produced with the same input structure; 
(2) product technology, assuming that all products in a product group have the same 
input structure, whichever industry produces them. 
323 -
Table IX. 12. A symmetric input-output table at basic prices (product by product) 
1 
2 
3 
Products 
(CPA) 
n 
2(1) 
Taxes on products 
Subsidies on products (-) 
1(1)+ (3) 
Comp.ofempl. 
Other net taxes on 
production 
Cons, of fixed capital 
Oper. surplus, net 
2(5) 
2(1)+ (3)+2 (5) 
Imports 
(7)+(8) 
Fixed capital formation 
Fixed capital stock 
Labour inputs (1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10 
) Product (CPA) 
1 2 3 .... ...n 
(1) 
Intermediate consumption at basic prices 
by product and byproduct 
Total interm.cons.at basic prices by 
product 
Net taxes on products by product 
Total interm. cons, at purchasers' prices by 
product 
Components of value added by product 
Value added by product 
Output at basic prices by product 
Imports cif by product 
Supply at basic prices by product 2(1) 
(2) Final uses 
a) b) c) d) e) f) 
(3) 
Final uses at basic' 
prices: 
Final consumption exp: 
a) by households 
b) by NPISH 
c) by government 
Gross capital formation: 
d) gr. fixed capital form, 
and valuables 
e) changes in inventories 
f) Exports 
Final use at basic prices 
by type 
Net taxes on products by 
type of final use 
Total final uses by type 
at purchasers' prices 2(3) 
(4) 2(1) + 
2(3) 
(5) 
Total use 
at bas.pr. 
Tot.net 
tax.prod. 
Total use 
at purch.p. 
-
The choice of the best assumption to apply in each case is not an easy one. It must, in fact, 
depend on the structure of national industries, e.g. the degree of specialization, and on the 
homogeneity of the national technologies used to produce products within the same 
product group. For example, boots may be made from leather and from plastic. Assuming 
the same product technology for all boots (or, when a higher level of aggregation is used, 
e.g. footwear) can thus be problematic; assuming industry technology can then be a better 
alternative. 
Simple application of the product technology assumption has often shown results that are 
unacceptable, insofar as the input-output coefficients sometimes generated are improbable 
or even impossible (for example, negative coefficients). Improbable coefficients may be 
due to errors in measurement and to heterogeneity (product-mix) in the industry of which 
the transferred product is the principal product. This might be overcome by making 
adjustments based on supplementary information or exploiting informed judgement to the 
fullest extent possible. Of course, another solution is to apply the alternative assumption of 
industry technology. In practice, employing mixed technology assumptions combined with 
supplementary information is the best strategy for compiling symmetric input-output 
tables. 
9.59. The importance of the role played by the assumptions depends on the extent of secondary 
production, which in turn depends not only on how production is organized in the economy 
but also on the product breakdown. The more detailed the product breakdown, the more 
secondary output can be expected. 
9.60. Step (3) involves the aggregation of the products in the new use table to the industries that 
generate them according to step (1) and this results in a symmetric input-output table with 
products cross-classified against by-products. While these amendments start from data 
based on local KAUs, the resulting entries are made to conform to those of "homogeneous 
units of production". 
9.61. The classifications in the symmetric input-output table coincide with those in the supply 
and use tables, as the former is a transformation of the latter (except of course the 
classification by industry/homogeneous branch). 
9.62. The symmetric input-output table IX. 12 should be accompanied by at least two tables: 
a matrix showing the use of imports; the format of this table is the same as that of the 
import table supporting the supply and use tables (see table IX. 10), except that the 
product-by-product classification is used; 
a symmetric input-output table for domestic output (table IX. 13). 
The latter table should be used in calculating the cumulated coefficients, i.e. the Leontief-
inverse. In terms of table IX. 13, the Leontief-inverse is the inverse of the difference 
between the identity matrix I and the matrix in cell (1,1). The Leontief-inverse could also 
have been calculated for domestic output and competitive imports (see para 9.51.). It 
should then be assumed that the competitive imports have been produced in the same way 
as the competing domestic produce. 
- 325 -
(21) 
Table IX.13. A symmetric input-output table for domestic output (product by product). 
1 
2 
3 
Products 
(CPA) 
n 
2(1) 
Use of imported products 
Net taxes on products 
2(1)+ (3)+ (4) 
Comp.ofempl. 
Other net taxes on 
production 
Cons, of fixed capital 
Oper. surplus, net 
2(5) 
2(1) + (3) +2 (5) 
Fixed capita! formation 
Fixed capital stock 
Labour inputs (1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) Products (CPA) 
1 2 3 .... ...n 
(1) 
For domestic output: Intermediate 
consumption at basic prices by product 
and by product 
Total interm.cons. of domestic output at 
basic prices by product 
Total interm. cons, of imported products 
by product 
Net taxes on products for intermediate 
consumption by product 
Total interm. cons, at purch.p. by product 
Components of value added by product 
Value added by industry 
Output at basic prices by industry 2(1) 
(2) Final uses 
a) b) c) d) e) f) 
(3) 
For domestic output: 
Final uses at basic prices: 
Final consumption exp: 
a) by households 
b) by NPISH 
c) by government 
Gross capital formation: 
d) gr. fixed capital form, 
and valuables 
e) changes in inventories 
f) Exports 
Final use of domestic 
output at basic prices 
Final use of imported 
products at basic prices 
Net taxes on products for 
final use 
Total final uses by type 2(3) 
(4) 2(1) + 
2(3) 
(5) 
Total 
dom. 
output 
Total 
imports 
Total net 
taxes on 
products 
Total use 
CHAPTER X 
PRICE AND VOLUME MEASURES 
-327 
INTRODUCTION 
10.01. In a system of economic accounts, all the flows and stocks are expressed in monetary units. 
The monetary unit is the only common denominator which can be used-to value the 
extremely diverse transactions recorded in the accounts and to derive meaningful balancing 
items. 
The problem when using the monetary unit as a measuring unit is that this unit is neither a 
stable nor an international standard. A major concern in economic analysis is to measure 
economic growth in volume terms between different periods. It is then necessary to 
distinguish, in the value changes for certain economic aggegates, the changes arising solely 
from price changes from the remainder which is called the change in "volume". 
Economic analysis is also concerned with comparisons in space, i.e. between different 
national economies. These focus on international comparisons in volume terms of the level 
of production and income, but the level of prices is also of interest. It is therefore necessary 
to factor the differences in value of economic aggregates between pairs or groups of 
countries into components, which reflect the differences in volume and the differences in 
price. 
10.02. When time comparisons of flows and stocks are concerned, equal importance should be 
attached to the accurate measurement of changes in prices and in volumes. In the short 
term, observation of price changes is of no less interest than the measurement of the 
volume of supply and demand. On a longer term basis, the study of economic growth has 
to take account of movements in the relative prices of the different types of goods and 
services. 
The primary objective is not simply to provide comprehensive measures of changes in 
prices and volumes for the main aggregates of the system but to assemble a set of 
interdépendant measures which make it possible to carry out systematic and detailed 
analyses of inflation and economic growth and fluctuations. 
10.03. The general rule for comparisons in space is that accurate measures must be made for both 
the volume and the price components of the economic aggregates. As the spread between 
the Laspeyres and Paasche formulae often is significant in spatial comparisons, the Fisher 
index formula is the only acceptable one for this purpose. 
10.04. The economic accounts have the advantage of providing a suitable framework for 
constructing a system of volume and price indices as well as ensuring the consistency of 
the statistical data. 
The advantages of an accounting approach can be summarized as follows: 
1) On a conceptual level, the use of an accounting framework covering the entire economic 
system requires the prices and physical units for the different products and flows in the 
system to be specified consistently. In a framework of this type, it is imperative that, for 
example, the price and volume concepts for a given group of products should be defined 
identically in both resources and uses. 
328 
2) On a statistical level, the use of the economic accounts framework imposes accounting 
constraints which must be respected at both current and constant prices and will 
normally require some adjustments to be made to ensure consistency of the price and 
volume data. 
3) Furthermore, the creation of an integrated system of price and volume indices in the 
context of a system of economic accounts provides the national accountant with extra 
checks. Assuming the existence of a balanced system of supply and use tables at current 
prices, the construction of such balanced tables at constant prices means that a system of 
implicit price indices can be automatically derived. Examination of the plausibility of 
these derived indices can lead to revision and correction of the data at constant prices 
and even, in some cases, of the values at current prices. 
4) Finally, the accounting approach permits themeasurement of price and volume changes 
for certain balancing items in the accounts, the latter being derived by definition from 
the other elements in the accounts. 
10.05. Despite the advantages of an integrated system based on the balance - both overall and by 
industry - of transactions in goods and services, it has to be acknowledged that the price 
and volume indices thus obtained do not meet all needs or answer all possible questions on 
the subject of change in prices or volume. Accounting constraints and the choice of price 
and volume index formulae, although essential for the construction of a coherent system, 
can sometimes be a hindrance. There is also a need for information for shorter periods such 
as months or quarters. In these cases, other forms of price and volume indices may prove 
useful. 
SCOPE OF PRICE AND VOLUME INDICES IN THE ACCOUNTS SYSTEM 
10.06. Amongst the flows, which appear in economic accounts at current prices, there are some -
mainly concerning products - where the distinction between changes in price and volume is 
similar to that made at micro-economic level. For many other flows in the system, the 
distinction is far less obvious. 
In the former case, the flows cover a group of elementary transactions in goods and 
services, the value of each being equivalent to the product of a number.of physical units 
and their respective unit price. In this case it is sufficient to know the breakdown of the 
flow in question into elementary transactions in order to determine its average variation in 
price and volume. 
In the latter case - which concerns a number of transactions relating to distribution and 
financial intermediation as well as to balancing items such as value added - it is difficult or 
even impossible to separate directly current values into price and volume components and 
special solutions have to be adopted. 
-329 
There is also a need to measure the real purchasing power of a number of aggregates, such 
as compensation of employees, disposable income of households or National Income. This 
can be done, for example, by deflating them by means of an index of the prices of the 
goods and services which can be bought with them. 
10.07. It must be emphasised that the objective and the procedure followed in the last case is 
fundamentally different from those in the other two cases. For these an integrated system 
of price and volume indices can be established, which is useful, amongst other things, for 
measuring economic growth. The valuation in real terms of flows of the last type uses 
price indices of flows other than those considered, which may differ according to the 
objectives of the analysis: it can only be a convention and cannot be done in a unique way 
within an integrated system of price and volume indices. 
The integrated system of price and volume indices 
10.08. The systematic division of changes in current values into the components "changes in 
price" and "changes in volume" is restricted to flows representing transactions, recorded in 
the goods and services accounts (0) and in the production accounts (I); it is carried out both 
for the data relating to individual industries and for those relating to the total economy. 
Flows representing balancing items, e.g. value added, cannot be directly factored into price 
and volume components; this can only be done indirectly using the relevant flows of 
transactions. 
The use of the accounting framework imposes a double constraint on the calculation of the 
data: 
1) the balance of the goods and services account must for any sequence of two years be 
obtained at both constant and current prices; 
2) each flow at the level of the total economy must be equal to the sum of the 
corresponding flows for the various industries. 
A third constraint, not inherent in the use of an accounting framework but resulting from a 
deliberate choice, is that every change in the value of transactions must be attributed either 
to a change in price or to a change in volume, or to a combination of the two. 
If these three requirements are fulfilled, valuation of the goods and services accounts and 
production accounts at constant prices means that an integrated set of price and volume 
indices can be obtained. 
10.09. The items to be considered when constructing such an integrated set are as follows: 
a) Transactions in products 
Output P.l 
Market output P. 11 
Output for own final use P. 12 
Other non-market output P. 13 
Intermediate consumption P.2 
Final consumption expenditure P.3 
330-
Individual final consumption expenditure 
Collective final consumption expenditure 
Actual final consumption P.4 
Actual final individual consumption 
Actual final collective consumption 
Gross capital formation P.5 
Gross fixed capital formation 
Changes in inventories 
Acquisition less disposals of valuables 
Exports of goods and services P.6 
Exports of goods 
Exports of services 
Imports of goods and services P.7 
Imports of goods 
Imports of services 
b) Taxes and subsidies on products 
Taxes on products, excluding VAT 
Subsidies on products 
VAT on products 
c) Consumption of fixed capital K. 1 
d) Balancing items 
Value added at basic prices B.l 
GDP at market prices B. lg P.31 
P.32 
P.41 
P.42 
P.51 
P.53 
P.61 
P.62 
P.71 
P.72 P.52 
D.21 part 
D.31 
D.21 part 
Price and volume indices for other aggregates 
10.10. In addition to the price and volume measures considered above, the following aggregates 
can also be decomposed into their own price and volume components. The objectives for 
these measures vary. 
e) Inventories AN. 12 
f) Stock of produced fixed assets AN. 11 
g) Compensation of employees D.1 
$31 -
Inventories at the beginning and at the end respectively of each period may have to be 
calculated at constant prices in order to estimate the volume change in inventories during 
the period. 
The stock of produced fixed assets has to be calculated at constant prices to estimate 
capital output ratios, as well as to obtain a basis for estimating consumption of fixed capital 
at constant prices. 
Compensation of employees has to be calculated at constant prices for purposes of 
measuring productivity and in some instances also when outputs have been estimated by 
using constant price data on inputs. 
10.11. Compensation of employees is an element of income. For the purpose of measuring 
purchasing power it can be valued in real terms by deflating with an index reflecting the 
prices of products purchased by employees. Other income elements too, such as disposable 
income of households and National Income, can be measured in real terms in the same 
general way. 
GENERAL PRINCIPLES OF MEASURING PRICE AND VOLUME INDICES 
Definition of prices and volumes of market products 
10.12. The creation of an integrated system of price and volume indices is based on the 
assumption that, at the level of a single homogeneous good or service, value (v) is equal to 
the price per unit of quantity (p), multiplied by the number of quantity units (q), that is 
v = pq. 
10.13. Definition: 
Price is defined as the value of one unit of a product, for which the quantities are perfectly 
homogeneous not only in a physical sense but also in respect of a number of other 
characteristics described in para 10.16. To be additive in an economic sense, quantities 
must be identical and have the same unit price. For each aggregate of transactions ill goods 
and services shown in the accounts, price and quantity measures have to be constructed so 
that 
value index = price index * volume index. 
This means that each and every change in the value of a given flow must be attributed 
either to a price change or to a change in volume or to a combination of the two. 
10.14. For transactions in goods it is in many cases easy to define the physical unit involved in the 
transaction and hence the price per unit. In a number of cases, e.g. for unique capital goods, 
it is more difficult and special solutions have to be adopted. 
- 332 
For transactions in services it is frequently more difficult to specify the characteristics 
which determine the physical units and differences of opinion on the criteria to be used 
may arise. This may concern important industries such as financial intermediation 
services, wholesale and retail trade, services to enterprises, education, research and 
development, health or recreation. In view of the growing importance of the service 
industries, it is essential to find common solutions to the problem of the choice of physical 
units, even if they are only conventional ones. 
Differences in quality and differences in price 
10.15. The physical and other characteristics to be taken into consideration when identifying 
products constitute differences in quality and play an important role, while at the same time 
raising difficult statistical problems. 
The fact is that for many goods and services intended for a specific purpose there exist 
several varieties of differing qualities, each with its own price. 
10.16. Definition: 
Differences in quality are reflected by the following factors: 
i. Physical characteristics. 
ii. Deliveries in different locations. 
iii. Deliveries at different times of the day or at different periods of the year. 
iv. Differences in conditions of sale or the circumstances or environment in which goods or 
services are supplied. 
With given physical characteristics, the differences in the other factors imply that the 
physical units are not identical in an economic sense, and that the value differs amongst the 
units. These differences in unit values are considered to be differences in volume and not 
as differences in price. 
In reality, the payment made when a good is purchased covers not only the price of a good 
but also the price of the services associated with the supply of goods. This means that in 
principle identical goods sold at different prices and in different circumstances should be 
considered to be different products. This conclusion is explicitly acknowledged in the 
supply and use tables, where the value of trade and transport margins - which represent the 
main services associated with the provision of goods - is recorded separately. 
10.17. Within a given market and in a single period, the coexistence of several unit values can, 
except in the cases described in para 10.19, be considered as evidence of the existence of 
quality differences. Accordingly, the various models of cars and even different versions of 
the same model must be treated as different products similarly, a distinction must be made 
between first-class and second-class railway journeys. 
For the purposes of calculating price and volume measures, it is necessary to use as a 
detailed product classification as possible so that each product identified has maximum 
homogeneity, regardless of the level of detail used in the presentation of results. 
333 -
10.18. The dimension of quality has to be taken into account also when changes over time are to 
be recorded. The change in quality due, for example, to the modification of the physical 
characteristics of a product must be considered to be a change in volume and not in price. 
Also the effects of aggregation have to be considered. Variations in the composition of a 
flow which imply, for example, a shift in favour of higher average quality have to be 
recorded as a volume increase and not as a price increase. It follows that for outputs, the 
effect of shifts between markets with differing prices, e.g. domestic vs external, or 
industrial uses vs markets for consumer products, will be treated as changes in volume and 
not as changes in price. It also follows that a price change for a given flow can occur only 
as result of changes in prices at the level of individual transactions. 
10.19. Definition: 
The existence of observed unit value differences is not to be considered as an indicator of 
differences in quality when the following circumstances apply, namely lack of information, 
price discrimination reflecting limitations in freedom of choice and the existence of parallel 
markets. In these cases, the unit value differences are considered as differences in price. 
10.20. Lack of information means that purchasers may not always be properly informed about 
existing price differences and may therefore inadvertently buy at higher prices. This - or 
the opposite - may occur also in situations where individual buyers and sellers negotiate or 
bargain over the price. On the other hand, the difference between the average price of a 
good purchased in a market or a bazaar, where such bargaining often occurs, and the price 
of the same good sold in a different type of retail outlet, such as a department store, should 
normally be treated as reflecting differences in quality due to different sales conditions. 
10.21. Price discrimination implies that sellers may be in a position to charge different prices to 
different categories of purchasers for identical goods and services sold under exactly the 
same circumstances. In these cases, there is no or limited freedom of choice on the part of a 
purchaser belonging to a special category. The principle adopted is that variations in price 
are to be regarded as price discrimination when different prices are charged for identical 
units sold under exactly the same circumstances in a clearly separable market. Price 
variations due to such discrimination do not constitute differences in volume. 
The possibility of the retrading of goods in a given market implies that price discrimination 
for these types of products in most cases can be assumed to be insignificant. The price 
differences that may exist for goods can normally be interpreted as due to lack of 
information or to the existence of parallel markets. 
In service industries, e.g. in transportation, producers may charge lower prices to groups of 
individuals with typically lower incomes, such as pensioners or students. If these are free to 
travel at whatever time they choose, this must be treated as a price discrimination. 
However, if they are charged lower fares on condition that they travel only at certain times, 
typically off-peak times, they are being offered lower-quality transportation. 
10.22. Parallel markets may exist for several reasons. Buyers may be unable to buy as much as 
they would like at a lower price because there is insufficient supply available at that price, 
and a secondary, parallel market, where higher prices are quoted, may exist. There is also 
the possiblity that a parallel market exists, where sellers can charge lower prices because 
they can avoid certain taxes. In these cases too, a price variation constitutes a difference in 
price and not in volume. 
334 
10.23. A change in the structure of a flow affecting its total value may occur when in the 
circumstances of lack of information, price discrimination and the existence of parallel 
markets identical products are sold at different prices. 
Suppose that a certain quantity of a particular good or service is sold at a lower price to a 
particular category of purchasers without any difference whatever in the nature of the good 
or service offered, location, timing or conditions of sale, or other factors. A subsequent 
decrease in the proportion sold at the lower price raises the average price paid by 
purchasers of the good or service. This must be recorded as a price and not a volume 
increase. 
Principles for non-market services 
10.24. The establishment of a comprehensive system of price and volume indices covering all 
supply and uses of goods and services encounters a particular difficulty when measuring 
the output of non-market services. These services differ from market services in that they 
are not sold at a market price and their value at current prices is calculated by convention 
as the sum of the costs incurred. These costs are intermediate consumption, compensation 
of employees, other taxes less subsidies on production and consumption of fixed capital. 
10.25. In the absence of a unit market price, the change in the "unit cost" of a non-market service 
can be considered as an approximation of the change in the price. If non-market services 
are consumed on an individual basis, it is in principle possible to estimate quantities which 
are homogeneous and which reflect the utilisation of these services and apply the unit costs 
of a base year to obtain data in constant prices. By such type of output-measurement it will 
be possible to analyse changes in productivity for individual non-market services. For 
collective services it is generally not possible to establish unit costs and quantities 
reflecting their utilisation. If attempts are made to account for changes in productivity for 
collective services by indirect methods, users should be made aware of this. 
10.26. In the context of the economic accounts, it is of prime importance to adopt the principle 
that the production and consumption of non-market services - like the production and 
consumption of goods and market services - must be defined in terms of the actual flows of 
these goods and services and not in terms of final results obtained from their use. As these 
results depend on several other factors as well, it is not possible to measure, for example, 
the volume of teaching services by the rise in the level of education, or the volume of 
health services by the improvement in the health of the population. 
335 
Principles for value added at basic prices and GDP 
10.27. Value added at basic prices, the balancing item in the production account, is the only 
balancing item to form part of the integrated system of price and volume indices. The very 
special characteristics of this item must, however, be emphasized, as must the significance 
of its related volume and price indices. 
Unlike the various flows of goods and services, value added does not represent any single 
category of transactions. It cannot, therefore, be directly broken down into a price 
component and a volume component. 
10.28. Definition: 
Value added at constant prices is defined as the difference between output at constant 
prices and intermediate consumption at constant prices. 
VA = EP(0)Q(1)-Ip(0)q(l) 
where P and Q are prices and quantities for output and p and q are prices and quantities for 
intermediate consumption. The theoretically correct method to calculate value added at 
constant prices is by double deflation, i.e. deflating separately the two flows of the 
production account (output and intermediate consumption) and calculating the balance of 
these two revalued flows. 
10.29. In some cases, where the statistical data remain incomplete or not sufficiently reliable, it 
may be necessary to use a single indicator. If there are good data on value added at current 
prices, one alternative to double deflation is to deflate current value added directly by a 
price index for output. This implies the assumption that prices for intermediate 
consumption change at the same rate as for output. Another possible procedure is to 
extrapolate value added in the base year by a volume index for output. This volume index 
can be calculated either directly from quantity data or by deflating the current value of 
output by an appropriate price index. This method in fact assumes that the volume changes 
are the same for outputs and for intermediate consumption. 
For certain market and non-market service industries, such as finance, business services, 
education or defence, it may not be possible to obtain satisfactory estimates of price or 
volume changes for output. In these cases the movements of value added at constant prices 
can be estimated by means of changes in compensation of employees at constant wage 
rates and consumption of fixed capital at constant prices. Compilers of data may be forced 
to adopt such expedients, even when there is no good reason to assume that labour 
productivity remains unchanged in the short or long term. 
10.30. By their very nature, therefore, the indices of volume and price for value added are 
different from the corresponding indices for the flows of goods and services. 
336 
The same applies to price and volume indices of aggregate balancing items such as Gross 
Domestic Product at market prices. The latter is equivalent to the sum of all the values 
added minus FISIM - i.e. to an addition of balancing items - plus taxes less subsidies on 
products and from another point of view can be seen to represent the balancing item 
between total final uses and imports. 
PROBLEMS IN THE APPLICATION OF THE PRINCIPLES 
10.31. To apply the principles of price and volume to the different flows in the system it is 
necessary to specify the solutions to be adopted for a number of problems which arise in 
this connection. 
General application 
10.32. The need to determine which of the various factors described in the previous section 
explain differences in price arises whenever one studies time series of value data and has to 
separate price changes and volume changes. It follows that, even at a fine level of detail, 
series of quantity data may give only crude measures of volume changes, as they do not 
properly reflect changes that may have occurred in the mix of different qualities. This 
means that, for example, a constant number of physical units, recorded for a certain flow, 
understates the volume change if the composition has changed in favour of units with 
higher quality. This shift implies a change in average quality and must be registered as an 
increase in the volume index. In general, the best method of estimating volume changes for 
flows of goods and services is deflating value data with price indices. Since all changes in 
average quality are correctly reflected in the value series, dividing by a representative price 
index, which is adjusted for quality changes, gives a correct volume index. 
10.33. Deflation with price indices may not always be best in practice and other methods have to 
be adopted. Value series may, for example, have been established by multiplying price and 
quantity data and constant price data can then be obtained by using prices from the base 
year. Alternatively, some value series may be of an inferior quality or difficulties may exist 
in obtaining reliable price indices. Estimates can then be made on the basis of quantity 
indicators. In these cases care must be taken that the quantities refer to products that are as 
homogeneous as possible. If none of the methods described above are applicable, constant 
price data on outputs may have to be based on estimates of inputs at constant prices. 
10.34. For non-market services the possibility of deflating values by using price indices does not 
exist and other solutions have to be applied. These are described in paragraphs 10.41. -
10.46. below. 
Application to specific flows 
a) Flows of goods and market services 
10.35. Of all the flows in the economy, the changes in the value of the flows of goods and market 
services are the most readily broken down into price and volume changes. In this context a 
clear distinction should be made between: 
J 3 1-
i) flows representing transactions actually carried out on the market at a certain price; 
ii) flows representing output for own final use (e.g. own-account production of 
agricultural products and services from owner-occupied dwellings); 
iii) flows whose value is defined as a balance between transactions in goods and services 
(e.g. trade margins); 
iv) flows whose value is defined as a difference between distributive and/or financial 
transactions (e.g. financial intermediation services indirectly measured and insurance 
services). 
10.36. The flows in category i) are by far the most numerous and commonplace. Changes in the 
values of these flows can, by their very nature, be split into volume and price changes. The 
general method of deflating the current value of these flows by price indices is applicable 
in all cases where goods and services can be expressed in units, the majority ofwhich are 
homogeneous from one year to the next. 
10.37. The flows in category ii), which are notional transactions, are typified by the absence of an 
actual price for the transaction. This is the case for such goods as agricultural products for 
own final use and goods for fixed capital formation on own-account. For services, the most 
important type refers to owner-occupied dwellings. Values for these imputed flows are to 
be obtained by applying prices of similar products when marketed and the deflator should 
therefore be the same. Since it is usually necessary to value output of own-account 
construction by costs of production rather than prices, the deflator has to be adjusted in this 
respect. 
10.38. The most important flows in category iii) are those whose value at current prices is 
obtained as a difference between the values of two flows of goods. This arises in the case 
of trade margins, whose value at current prices is defined as the difference between the 
actual or imputed price realised on a good purchased for resale by the wholesale and retail 
trades and the price that would have to be paid by the distributor to replace the good at the 
time it was sold or otherwise disposed of. By one method, estimates of trade margins at 
constant prices can therefore also be made by difference, by subtracting the constant-price 
value of goods bought for resale from the constant-price value of goods resold by these 
trades. An alternative method of measurement would be to extrapolate the trade margins of 
the base year either by the volume of sales or by the volume of purchases made by the 
wholesale and retail trades. To be correct, this alternative has to take into account the fact 
that trade margins vary amongst different products and uses. This is explicitly 
acknowledged in the supply and use tables. 
10.39. Category iii) also includes output of travel agency services measured as the value of 
service charges of agencies and (fees and commission charges). These services can also be 
measured as the difference between two flows - the full payment made by the purchaser 
and the expenditure made for transport and accommodation by the producer. The volume 
measure can be obtained as the difference between these flows calculated at constant 
prices. Alternatively, the fee or commission can be defined as the price per unit of the type 
of transportation or accommodation arranged and the volume indicator for the service 
charge would therefore move in the same way as these flows. 
-338 
10.40. The flows in category iv) consist of financial intermediation services, service charges from 
insurance and pension funds are also included. Financial intermediation services are 
provided by banks and other financial corporations and consist of lending money to 
businesses or households, providing a safe and convenient means of saving, safeguarding 
money and other valuables, buying and selling foreign currencies, clearing cheques, 
providing general economic intelligence, dealing in stocks and bonds, and offering 
investment advice. In some cases these services are easily defined and specifically paid for, 
e.g. in the case of renting space in bank vaults, or when fees are charged in connection with 
issues of stocks, bonds or loans. The current value of transactions can then be defined, as 
well as prices and quantities necessary for price and volume measurement. However, a 
breakdown into price and volume components for financial intermediation services 
indirectly measured and for insurance services can usually only be made on arbitrary 
grounds and would have to be based on conventions. 
b) Flows of non-market services 
10.41. The non-market services produced by general government and non-profit institutions 
serving households (NPISH) cover a vast range of services both necessary and useful to 
society. They fall into two main categories: 
a) Services provided to individuals, i.e. whose consumers or beneficiaries are individually 
identifiable. Consumption of these services requires individual initiative on the part of 
those concerned. 
b) Pure collective services, i.e. services which are consumed jointly by the 
entire population. 
10.42. The services provided to individuals can be given to single individuals (e.g. medical care) 
or to groups of individuals (e.g. teaching). By their nature, these services can be supplied 
on a market or a non-market basis; in many cases, the individual can obtain services of this 
type either by applying to a market unit (paying the price) or by turning to a non-market 
unit of general government or NPISH (getting the services free, or almost free). 
For market units the method of deflating current values by price indices should be used, 
since the variations in the mix of products with differing prices are then correctly shown as 
influencing volumes rather than prices. For non-market services provided to individuals, 
output estimates can be based on quantity indicators. For education these may relate to 
numbers of hours spent by pupils in classes or in individual tutoring, and for non-market 
health services the indicators should reflect treatment in hospitals or visits to doctors or 
nurses. In both cases there is a quality dimension reflected in the amount of resources 
provided per pupil or patient. Care must be taken to use data with a detailed breakdown so 
that each indicator for which calculations are made is as homogeneous as possible in 
respect of costs. It is only then that changes in the mix of products are shown correctly as 
volume changes. 
In the case of services provided to individuals, changes in the volume of their output and 
consumption should in principle be measured on the basis of the use which is made of 
these services; this will avoid using different criteria for the same services depending on 
whether they are market or non-market. Of course, any change in quality must be treated 
as a change in volume; but this applies as much to market services as to non-market 
services provided to individuals. 
539 
10.43. The pure collective services are produced by general government for the benefit of the 
entire population. In fact, they cover a vast range of activities such as general public 
services, national defence, foreign affairs, justice and the police, town planning and the 
environment, economic policy, etc. Since these services are consumed collectively, 
indirectly and continuously, the volume of their output cannot be measured by the extent to 
which they are utilised. 
10.44. It may not be possible in practice to obtain reliable quantity indicators for non-market 
services provided for individuals and these may therefore have to be measured in terms of 
volume by the same methods as for pure collective services. It is then necessary to start 
from a valuation at constant prices of the different cost elements of this output, i.e.: 
a) intermediate consumption 
b) compensation of employees 
c) other taxes on production 
d) consumption of fixed capital. 
The use of input-measures as proxies for output implies that analysis of productivity is not 
possible. 
10.45. The calculation of intermediate consumption at constant prices poses no particular 
theoretical problems base-year since intermediate consumption relates to goods and market 
services. It can be done either by deflating current values by a price index of intermediate 
consumption or on the basis of quantities revalued at base-year prices. 
10.46. Calculation at constant prices of the compensation of employees and the consumption of 
fixed capital in non-market service industries is done by the general methods described in 
paras 10.53. and 10.54. below. Other taxes on production are often of a type that can be 
related to a volume indicator, e.g. volume of employment, number of cars used. 
c) Taxes and subsidies on products and imports 
10.47. Although essentially limited to transactions involving goods and services, the integrated 
system of price and volume indices does not exclude the possibility of calculating 
measures of changes in price and volume for certain other transactions. This possibility 
exists, in particular, in the case of taxes and subsidies directly linked to the quantity or 
value of the goods and services which are the subject of certain transactions. In the supply 
and use tables, the values of these are shown explicitly. By applying the rules described 
below, it is possible to obtain price and volume measures for the categories of taxes and 
subsidies which are recorded in the goods and services accounts, namely: 
- taxes on products, excluding VAT (D.21 part) 
- subsidies on products (D.31) 
- VAT on products (D.21 part). 
-340 
10.48. The .simplest case is that of taxes which represent a fixed amount per unit of quantity of the 
product which is the subject of the transaction. The value of the revenue from such a tax 
depends upon: 
a) the quantity of products involved in the transaction 
b) the amount levied per unit, i.e. the taxation price. 
The breakdown of the value change into its two components presents virtually no 
difficulties. The variation in volume is determined by the change in the quantities of 
products taxed; the price variation corresponds to the change in the amount levied per unit, 
i.e. to the change in the taxation price. 
10.49. A moie frequent case is that in which the tax represents a certain percentage of the value of 
the transaction. The value of the revenue from such a tax then depends upon: 
a) the quantity of products involved in the transaction 
b) the pi ice of the products involved in the transaction 
c) the tax iate (as a percentage). 
The taxation price is then obtained by applying the rate to the price of the product. The 
change in value of the revenue from a tax of this type can also be divided into a volume 
change determined by the change in the quantities of products taxed, and a price change 
corresponding to the change in the taxation price (b x c). 
10.50. Ihe amount of taxes on products (excluding VAT) (D.21 part) is measured in terms of 
volume by applying to the quantities of products produced or imported the taxation prices 
of the base year or by applying to the value of output or imports, revalued at the prices of 
the base year, the tax rates of the base year. Attention has to be paid to the fact that taxation 
prices may differ among different uses This is taken into account in the supply and use 
tables 
10.51. Siiiiilufi Uie amount of subsidies on products (D.31) is measured in terms of volume by 
applying U) the quantities of products produced or imported the subsidy prices of the base-
year or by applying to the value of output or imports, revalued at the prices of the base-
year/the rates of subsidy of the base year, taking into account different subsidy prices for 
different uses. 
10.52. VAl on products (D.21 part) is, both for the whole economy and for individual industries 
and other users, calculated on a net basis and refers only to non-deductible VAT. This is 
defined as the difference between VAT invoiced on the products and VAT deductible by 
the users of these products. Alternatively, it is also possible to define VAT on products as 
the sum of all non deductible amounts which have to be paid by users. 
Non-deductible VAT at constant prices can be calculated by applying the VAT rates in 
force in the base-year to the flows expressed in the prices of the base-year. Any change in 
the rate of VAT for the current year will therefore be reflected in the price index and not in 
the volume index of non-deductible VAT. 
341 
(22) 
The fraction of deductible VAT in invoiced VAT and hence non-deductible VAT may 
change: 
a) either because of a change in the right to deduct VAT, resulting from a change in tax 
laws or regulations, taking effect with or without a time lag; 
b) or because of changes in the pattern of uses of the product (e.g. increase in the 
proportion of uses on which VAT may be deducted). 
A change in the amount of deductible VAT resulting from a change in the right to deduct 
VAT will by the method described be treated as a change in the taxation price, as will a 
change in the rate of invoiced VAT. 
On the other hand, a change in the amount of deductible VAT resulting from a change in 
the pattern of uses of the product constitutes a change in the volume of deductible VAT to 
be reflected in the index of the volume of VAT on products. 
d) Consumption of fixed capital 
10.53. The calculation of volume measures of the consumption of fixed capital poses few 
problems when good data on the composition of the stock of fixed capital goods are 
available. The perpetual inventory method, used by most countries, already implies, for 
the estimation of the consumption of fixed capital at current prices, the need to pass via a 
calculation of the stock of fixed capital goods at constant prices. To go from a valuation at 
historic cost to one at replacement cost, it is first necessary to value capital goods acquired 
over a number of different periods on a homogeneous basis, i.e. base-year prices. The 
price and volume indices derived in the process can therefore be used to calculate the value 
of the consumption of fixed capital at constant prices and the associated price index. 
Where there is no perpetual inventory of the stock of fixed capital goods, the change in the 
consumption of fixed capital at constant prices can be obtained by deflating the current 
price data by price indices derived from data on gross fixed capital formation by product. 
Account has then to be taken of the age structure of the capital goods acquired. 
e) Compensation of employees 
10.54. For the purpose of measuring the volume of input from employee labour, the quantity unit 
for compensation of employees may be considered to be an hour's work of a given type and 
level of skill. As with goods and services, different qualities of work must be recognized 
and quantity relatives calculated for each separate type of work. The price associated with 
each type of work is the compensation paid per hour, which may vary, of course, between 
different types of work. A volume measure of work done may be calculated as a weighted 
average of the quantity relatives for different kinds of work, weighted by the values of 
compensation of employees in the previous year or fixed base year. Alternatively, a wage 
rate index may be calculated for work by calculating a weighted average of the 
proportionate changes in hourly rates of compensation for different types of work, again 
using compensation of employees as weights. If a Laspeyres-type of volume index is 
calculated indirectly by deflating the changes in compensation of employees at current 
values by an index of the average change in hourly compensation, the latter should be a 
Paasche-type index. 
342 
10.55. For the purpose of measuring the real purchasing power of compensation of employees, 
this flow can be deflated by an index reflecting the uses made of these earnings. The price 
index normally chosen for this purpose is the implicit deflator for individual consumption 
expenditure or the consumer price index. 
f) Stocks of produced fixed assets and inventories 
10.56. Constant-price data are needed both for stocks of produced fixed assets and for inventories. 
For the former, such data as are necessary for the calculation of capital output ratios are 
available if use is made of the perpetual inventory method. In other cases information on 
the values of stocks of assets may be collected from producers and deflation made by the 
price indices used for fixed capital formation, taking into account the age structure of 
stocks. 
Changes in inventories are measured by the value of entries into inventories less the value 
of withdrawals from inventories, and the value of any recurrent losses of goods held in 
inventories during a given period. Constant-price estimates can be derived by the deflation 
of these components. When changes in the volume and the prices of inventories are fairly 
regular, estimates of changes in inventories can also be obtained by multiplying the volume 
change of inventories by average prices for the current year or the base year. As a second 
alternative and as a cross-check, estimates of changes in inventories can also be obtained as 
the difference between stocks of inventories held at the end and the beginning of the 
period, respectively. For this purpose the value of inventories minus revaluation according 
to the accounts of producers has to be revalued and expressed at the average prices, either 
relating to the current year or to the base-year. If they refer to the current year, the value 
measures the volume changes in inventories at current prices. If the average prices refer to 
a base-year, the value corresponds to volume changes in inventories at base-year prices. 
g) Measures of real income for the total economy 
10.57. It is not possible to divide income flows into a price and a quantity component and for this 
reason price and volume measures cannot be defined in the same way as for the flows and 
stocks described earlier. Income flows can be measured in real terms only if one chooses 
some selected basket of goods and services on which the income is typically spent and uses 
the price index for this basket as a deflator of current incomes. The choice is always 
arbitrary in the sense that income is seldom spent specifically for purchases during the 
period in question. Some of it may be saved for purchases in later periods or, alternatively, 
the purchases during the period may be partly financed from savings made earlier. 
10.58. Gross Domestic Product at constant prices measures the total production (less the 
intermediate consumption) in volume terms for the total economy. The total Real Income 
of residents is influenced not only by this volume of production but also by the rate at 
which exports can be traded against imports from the rest of the world. If the terms of trade 
improve, fewer exports are needed to pay for a given volume of imports, so that at a given 
level of domestic production goods and services can be reallocated from exports to 
consumption or capital formation. 
-34; 
10.59. The Real Gross Domestic Income can be derived by adding the so-called Trading Gain to 
volume figures on Gross Domestic Product. The Trading Gain - or, as the case may be, 
Loss - is defined as 
T = XzM- [ )L-M_ 1 
P L Px Pm J 
i.e. the current balance of exports less imports, deflated by a price index P, less the 
difference between the deflated value of exports and the deflated value of imports. The 
choice of an appropriate deflator P for the current trade balances should be left to the 
statistical authorities in a country, taking of the particular circumstances of that country. In 
the circumstances in which there is uncertainty about the choice of deflator an average of 
the import and the export price indices is likely to provide a suitable deflator. 
10.60. Various Real Income Aggregates are identified and defined in the way shown in the 
following table. 
1) Gross Domestic Product at constant prices 
plus the trading gain or loss from changes in the terms of trade 
2) equals Real Gross Domestic Income 
plus real primary incomes receivable from abroad 
minus real primary incomes payable to abroad 
3) equals Real Gross National Income 
plus real current transfers receivable from abroad 
minus real current transfers payable to abroad 
4) equals Real Gross National Disposable Income 
minus consumption of fixed capital at constant prices 
5) equals Real Net National Disposable Income. 
To be able to express the various National Income aggregates in real terms, it is recommended that 
receivables and payables of primary incomes and transfers from and to abroad should be deflated 
with an index of Gross Domestic Final Expenditure. Real National Disposable Income is to be 
expressed on a net basis by deducting from its gross value the consumption of fixed capital at 
constant prices. 
CHOICE OF INDEX NUMBER FORMULAE AND THE BASE YEAR 
10.61. The construction of an integrated system of price and volume indices entails a deliberate 
choice as to the types of indices to be used. 
10.62. The preferred measure of year to year changes in volume is a Fisher volume index which is 
defined as the geometric mean of the Laspeyres and the Paasche indices. Changes in 
volume over longer periods being obtained by chaining, i.e. by cumulating the year to year 
volume movements. 
-344-
10.63. The preferred measure of year to year changes in prices is a Fisher price index. Price 
changes over long periods being obtained by chaining the year to year price movements. 
10.64. Chain indices that use Laspeyres volume indices to measure changes in volume and 
Paasche price indices to measure year to year price movements provide acceptable 
alternatives to Fisher indices. 
10.65. Altough the preferred measure of volume and price is a chain index, it must be recognized 
that the lack of additive consistency can be a serious disadvantage for many types of 
analysis. 
An aggregate is defined as the sum of its components. Additivity requires this identity to 
be preserved when the values of both an aggregate and its components in some reference 
period are extrapolated over time using a set of volume index numbers. 
10.66. It is therefore recommended that disaggregated constant price data - i.e. direct valuation of 
current quantities at base-year prices - are compiled in addition to the chain indices for the 
main aggregates. 
Estimating accounts data in constant prices has to be done at the finest level of detail 
possible if the data are to be consistent within the framework of an integrated system of 
price and volume measures. The supply and use tables form the central, conceptual and 
statistical framework for all the measures at constant prices. Additional data are found in 
supplementary tables. 
Constant price series have nevertheless to be rebased in the course of time. The ESA has 
adopted the principle of changing the base year every five years as from 1995. When the 
base year is changed it is customary to link the data on the old base to the date on the new 
base rather than to carry the rebasing backwards. When the base year is updated additivity 
is lost as a result of linking. 
10.67. When base year values are extrapolated by chain volume indices, it will have to be 
explained to users why there is no additivity in the tables. 
The non-additive "constant price" data is published without any adjustment. This method is 
transparent and indicates to users the extent of the problem. 
This does not preclude the possibility that there may be circumstances in which compilers 
may judge it preferable to eliminate the discrepancies in order to improve the overall 
consistency of the data. 
INTERSPATIAL PRICE AND VOLUME INDICES 
10.68. Comparisons of prices and volumes between countries have to overcome the difficulty in 
comparing different national currencies. Since exchange rates are neither sufficiently stable 
for this purpose nor do they reflect differences in purchasing power in a correct way, it is 
necessary to use a methodology similar to the one used for intertemporal comparisons 
within a single country. Price and volume indices have therefore to be compiled between 
pairs of countries, applying the same kinds of index number formulae as when measuring 
changes between time periods. Either of the two countries A and B can be used to give the 
weights and - viewed from the angle of country A - a Laspeyres-type index with weights 
from country A can be calculated as well as a Paasche-type using weights from country B. 
- 345 -
10.69. If the economies of the two countries differ much from one another, the spread between 
these two indices may be quite large and the results would depend too much on which one 
is chosen. For binary comparisons the ESA therefore requires an average between the two, 
in the form of a Fischer index. 
10.70. Direct quantitative comparisons between economic situations that have little in common 
with each other are inherently difficult and the method of deflation of current values with 
price indices is therefore the best alternative. This applies even more in international than 
in intertemporal comparisons. By careful specification and identification of products, price 
relatives can be calculated from information collected in price surveys in each country. As 
prices are quoted in national currencies, the interpretation of the price relatives introduces 
the concept of Purchasing Power Parity (PPP). For a given product the PPP between two 
currencies of countries A and B is defined as the number of units of country B's currency 
that are needed in country B to purchase the same quantity of the product as one unit of 
country A's currency will purchase in country A. PPPs for groups of products and 
successively higher levels of aggregation up to GDP are obtained by weighting PPPs for 
products by their share in expenditure. In order to arrive at an international price index 
between the two countries, the PPP index has to be divided by the current exchange rate 
between the two currencies concerned. 
10.71. For non-market services, international comparisons face the same problem as intertemporal 
comparisons. This means that outputs are measured as the sum of inputs. The method used 
at present in interspatial comparisons is to obtain PPPs on the basis of price relatives for 
important elements in these inputs. This method, which implies volume comparisons of 
inputs, fails to take into account differences in productivity in non-market service 
production in the countries compared. It is important, therefore, to develop methods which 
instead lead to comparisons of the volume of output of non-market services. This should in 
principle be feasible for individual non-market services, in the same general way as when 
intertemporal comparisons are concerned. 
10.72. The need to make international comparisons of prices and volumes between countries is 
recognized in the ESA. The main objective is volume comparisons of GDP and its uses and 
the condition of transitivity must be met. Transitivity means that the direct index for 
country C based on country A is equal to the indirect index obtained by multiplying the 
direct index for country B based on country A by the direct index for country C based on 
country B. 
10.73. The approach adopted in the ESA to the calculation of a set of multilateral volume 
measures and PPPs is to start from binary comparisons between all possible pairs of 
countries considered. The Fischer indices used for this purpose are not transitive, but it is 
possible to derive from them a set of transitive indices that resemble the original Fischer 
indices as closely as possible, using the traditional criterion of least squares for this 
purpose. Minimising the deviations between the original Fischer indices and the desired 
transitive indices leads to the so-called EKS formula. 
10.74. The EKS index utilises all the indirect indices linking country i to country k as well as the 
direct index between them. Between countries i and k it is the geometric mean of the direct 
index between i and k and every possible indirect index connecting countries i and k. The 
direct index is given twice the weight of each indirect index. Transitivity is achieved by 
involving every other country in the EKS index for any given pair of countries. 
46 
CHAPTER XI 
POPULATION AND LABOUR INPUTS 
-347 
11.01. Certain comparisons between countries, or between branches or sectors within the same 
economy, become meaningful only when the aggregates in the national accounts (for 
example, Gross Domestic Product, the final consumption of households, the value added of 
a branch, compensation of employees) are considered in relation to the number of 
inhabitants and labour input variables. It is therefore necessary to have definitions of the 
total population, employment, jobs, total hours worked, full-time equivalence and 
employee labour input at constant compensation, which are closely linked to the concepts 
used in the national accounts. 
11.02. These titles are defined in the system on the basis of the concepts of economic territory and 
centre of interest. 
11.03. Labour inputs must be classified on the basis of the same statistical units as used for the 
analysis of production, namely the local kind-of-activity unit and the institutional unit. 
11.04. The aggregates to which the figures for population and labour inputs are related are annual 
totals. Therefore, average population and labour inputs during the year should be used. 
When inquiries are conducted at several times during the course of the year, the figure 
taken is the average of the results obtained on these various dates. 
When a single inquiry is made, it is important to examine if the period used is fully 
representative ; the last available information on variations throughout the year should be 
used in estimating data for the year as a whole. For example, when estimating the mean 
employment, some allowance should be made for the fact that certain people do not work 
throughout the whole year (casual and /or seasonal workers). 
TOTAL POPULATION 
11.05. Definition: 
On a given date, the total population of a country consists of all persons, national or 
foreign, who are permanently settled in the economic territory of the country, even if they 
are temporarily absent from it. For some purposes, an annual average of head counts will 
provide an appropriate basis for estimating national accounts variables or for use as a 
denominator in comparisons. 
11.06. Total population is defined for national accounts according to the concept of residence (see 
units and grouping of units chapter). 
A person who is staying, or intends to stay, on the economic territory of the country for a 
period of one year or more is regarded as permanently settled there. 
A person is regarded as being temporarily absent if he or she is permanently settled in the 
country but is staying, or intends to stay, in the rest of the world for a period of less than 
one year. 
-348 
All individuals who belong to the same household^1) are resident where the household has a 
centre of economic interest: this is where the household maintains a dwelling, or 
succession of dwellings, which members of the household treat, and use, as their principal 
residence. A member of a resident household continues to be a resident even if that 
individual makes frequent journeys outside the economic territory, because its centre of 
economic interest remains in the economy in which the household is resident. 
11.07. The total population of a country includes: 
nationals settled in the country 
national civilians who are staying abroad for a period of less than one year 
(frontier workers, seasonal workers, tourists, patients, etc.) 
foreign civilians settled in the country for a period of one year or more (including 
the personnel^2) of the Institutions of the European Communities and of 
international civilian organisations located within the geographic territory of the 
country) 
foreign military personnel(2) working with international military organisations 
located within the geographic territory of the country, 
foreign technical assistance personnel(2) on long-term assignments who work in 
the country and are deemed to be employed by their host government on behalf of 
the government, or international organisation, which is actually financing their 
work. 
By convention, the total population also includes the following, irrespective of the length 
of their stay outside the country: 
national students however long they study abroad 
members(2) of the country's armed forces stationed in the rest of the world 
nationals(2) who are on the staff of national scientific bases established outside 
the geographic territory of the country 
nationals(2) who are on the staff of diplomatic missions abroad 
nationals(2) who are members of the crews of fishing boats, other ships, aircraft 
and floating platforms operating partly, or wholly, outside the economic territory. 
11.08. Conversely, the total population of a country does not include: 
foreign civilians staying on the territory for less than a year (frontier workers, 
seasonal workers, tourists, patients, etc.) 
national civilians staying abroad for a period of one year or more 
national military personnel working with international organisations located in the 
rest of the world 
national technical assistance personnel on long-term assignments who work 
abroad and are deemed to be employed by their host government on behalf of the 
government, or international organisation, which is actually financing their work 
' ' The concept of household is defined in the chapter "units and groupings of units". 
' ' Including accompanying members of their households. 
349 
and also, by convention, 
foreign students however long they study in the country 
members of the armed forces of a foreign country who are stationed in the country 
the foreign personnel of foreign scientific bases located on the geographic territory 
of the country 
members of foreign diplomatic missions stationed in the country. 
11.09. The definition given above differs from the present (or de facto) population, which consists 
of persons actually present on the geographic territory of a country at a given date. 
ECONOMICALLY ACTIVE POPULATION 
11.10 Definition: 
In accordance with the norms established by the International Labour Office (thirteenth 
International Conference of Labour Statisticians), the economically active population 
comprises all persons of either sex, and above a certain age, who furnish the supply of 
labour for the productive activities (falling in the production boundary of the system), 
during a specified time-reference period. 
It includes all persons who fulfil the requirements for inclusion among the employed 
(employees or self employed) or the unemployed. 
The "employees" and "self-employed" are defined under the title "employment". 
The "unemployed" are defined under the title "unemployment". 
EMPLOYMENT 
11.11. Definition: 
Employment covers all persons -both employees and self-employed- engaged in some 
productive activity that falls within the production boundary of the system. 
a) EmpIoyeesO) 
11.12. Definition: 
Employees are defined as all persons who, by agreement, work for another resident 
institutional unit and receive a remuneration (recorded as Dl compensation of employees). 
The relationship of employer to employee exists when there is an agreement, which may be 
formal or informal, between an enterprise and a person, normally entered into voluntarily 
by both parties, whereby the person works for the enterprise in return for remuneration in 
cash or in kind. 
Employees are classified here if they are not also in self-employment which constitutes 
their principal activity: in that case they are classified under b). 
' ' "Employees" corresponds to the International Labour Office definition of "paid employment" 
350-
11.13. The following categories are included: 
persons (manual and non-manual workers, management personnel, domestic staff, 
people carrying out remunerated productive activity under employment programs) 
engaged by an employer under a contract of employment 
civil servants and other government employees whose terms and conditions of 
employment are laid down by public law 
the armed forces, consisting of those who have enlisted for both long and short 
engagements and also conscripts (including conscripts working for civil purposes) 
ministers of religion, if they are paid directly by general government or a non­
profit institution 
owners of corporations and quasi-corporations if they work in these enterprises 
students who have a formal commitment whereby they contribute some of their 
own labour as an input into an enterprise's process of production in return for 
remuneration and (or) education services 
outworkers^) if there is an explicit agreement that the outworker is remunerated 
on the basis of the work done that is, the amount of labour which is contributed as 
an input into some process of production 
disabled workers, provided the formal or informal relationship of employer to 
employee exists. 
persons employed by temporary employment agencies, who are to be included in 
the industry of the agency which employs them, and not in the industry of the 
enterprise for which they actually work. But for input-output analysis, 
reclassifications of this people and of all the related costs can be considered (see 
paragraph 9.51. "the input-output framework"). 
11.14. Persons temporarily not at work, are also considered as employees provided they have a 
formal job attachment. This formal attachment should be determined according to one or 
more of the following criteria: 
the continued receipt of wage or salary 
an assurance of return to work following the end of the contingency, or an agreement 
as to the date of return 
the elapsed duration of absence from the job which, wherever relevant, may be that 
duration for which workers can receive compensation benefits without obligations to 
accept other jobs. 
This covers persons temporarily not at work because of illness or injury, holiday or 
vacation, strike or lock-out, educational or training leave, maternity or parental leave, 
reduction in economic activity, temporary disorganisation or suspension of work due to 
such reasons as bad weather, mechanical or electrical breakdown, or shortage of raw 
materials or fuels, or other temporary absence with or without leave. 
^ ' An outworker is a person who agrees to work for a particular enterprise or to supply a certain quantity of goods or services to a 
particular enterprise by prior arrangement or contract with that enterprise, but whose place of work is not within it. 
351 -
b) Self-employed persons 
11.15. Definition 
Self-employed persons are defined as persons who are the sole owners, or joint owners, of 
the unincorporated enterprises in which they work, excluding those unincorporated 
enterprises that are classified as quasi-corporations. Self-employed persons are classified 
here if they are not also in a paid employment which constitutes their principal activity: in 
that latter case they are classified under a). 
They may be temporarily not at work during the reference period for any specific reason. 
The compensation for self-employment is mixed income. 
11.16. Self-employed persons also include the following categories: 
unpaid family workers, including those working in unincorporated enterprises 
engaged wholly or partly in market production 
outworkers whose income is a function of the value of the outputs from some 
process of production for which they are responsible, however much or little work 
was put in 
workers engaged in production undertaken entirely for their own final 
consumption or own capital formation, either individually or collectively. 
Unpaid voluntary workers are included in self-employed persons if their volunteer 
activities result in goods, e.g. the construction of a dwelling, church or other 
building. But if their volunteer activities result in services, e.g. care taking or 
cleaning without payment, they are not included in employment, because those 
volunteer services are excluded from production (see 3.08.). 
There is no labour input into the production of the services of owner-occupied 
dwellings; the owner-occupiers of dwellings are not, as such, considered as self-
employed persons. 
c) Employment and residence 
11.17. The results of the activity of producer units can only be compared with employment if the 
latter includes both the residents and the non-residents who work for resident producer 
units. 
Employment therefore also includes the following categories: 
non-resident frontier workers, i.e. persons who cross the border each day to work 
in the economic territory 
non-resident seasonal workers, i.e. persons who move into the economic territory 
and stay there for less than one year in order to work in industries which 
periodically require additional labour 
members of the country's armed forces stationed in the rest of the world 
-352 
nationals who are on the staff of national scientific bases established outside the 
geographic territory of the country 
nationals who are on the staff of diplomatic missions abroad 
members of the crews of fishing boats, other ships, aircraft and floating platforms 
operated by resident units 
local employees of general government bodies situated outside the economic 
territory. 
11.18. On the other hand, the following are excluded from employment: 
residents who are frontier workers or seasonal workers, i.e. who work in another 
economic territory 
nationals who are members of the crews of fishing boats, other ships, aircraft and 
floating platforms operated by non-resident units 
local employees of foreign government agencies located on the geographic 
territory of the country 
the personnel of the Institutions of the European Communities and international 
civilian organisations located within the geographic territory of the country 
(including local employees directly recruited) 
members of the armed forces working with international military organisations 
located on the geographic territory of the country 
nationals working in foreign scientific bases established in the economic territory. 
11.19. In order to be able to make the transition to the concepts generally used in labour force 
statistics (employment on a national basis), the ESA provides for the following items to be 
shown separately: 
1) the conscripted forces (not included in the labour force statistics, but included in the 
ESA under general government services) 
2) residents working for non-resident producer units (included in labour force statistics but 
not included in employment as defined in the ESA) 
3) non-residents working with resident producer units (not included in labour force 
statistics but included in employment as defined in the ESA). 
UNEMPLOYMENT 
11.20 Definition: 
In accordance with the norms established by the International Labour Office (thirteenth 
International Conference of Labour Statisticians), the "unemployed" comprise all persons 
above a specified age who during the reference period were: 
a) "without work", i.e. not in paid employment or self-employment 
b) "currently available for work", i.e. were available for paid employment or self-
employment during the reference period; and 
c) "seeking work", i.e. had taken specific steps in a specified recent period to seek paid 
employment or self-employment. 
The specific steps may include registration at a public or private employment exchange; 
application to employers; checking at worksites, farms, factory gates, market or other 
assembly places; placing or answering newspaper advertisements; seeking assistance of 
friends or relatives; looking for land, building, machinery or equipment to establish own 
enterprise; arranging for financial resources; applying for permits and licences, etc... 
11.21 Definition: 
Unemployment rates represent unemployed persons as a percentage of the economically 
active population. 
They are usually calculated for sex-age groups and sometimes further cross-classified by 
other demographic variables such as marital status, qualifications or nationality. 
JOBS 
Definition: 
11.22. A job is defined as an explicit or implicit contract1) between a person and a resident 
institutional unit to perform work*2) in return for compensation^3) for a defined period or 
until further notice. 
In that definition, both employee and self-employment jobs are covered: that is, an 
employee job if the person belongs to another institutional unit than the employer and a 
self-employment job if the person belongs to the same institutional unit as the employer. 
11.23. The concept of jobs differs from the concept of employment as defined above: 
It includes second, third, etc. jobs of the same person. Those second, third, etc. 
jobs of a person may either successively follow one another within the reference 
period (usually, a week) or, as when someone has an evening job as well as a 
daytime job, run in parallel. 
On the other hand, it excludes persons temporarily not at work but who have a 
"formal attachment to their job" in the form, for instance, of "an assurance of 
return to work or an agreement as to the date of return". Such an understanding 
between an employer and a person on lay-off or away on training is not counted as 
a job in the System. 
O) The explicit or implicit contract relates to the provision of labour input, not to supplying output of a good or service. 
' ) Work means any activity which contributes to the production of goods or services within the production boundary. The legality of the 
work and the age the worker are, in principle, irrelevant 
'-^ Compensation must be interpreted here a wide sense including mixed income of self-employed persons. 
354 
Jobs and residence 
11.24. A job in the economic territory of the country is an explicit or implicit contract between a 
person (who may be resident in another economic territory) and an institutional unit 
resident in the country. 
For measuring labour input into economic activity, only the residence of the producer 
institutional unit is relevant, because resident producers alone contribute to gross domestic 
product. 
11.25. Moreover: 
Jobs are included in the count of jobs in the economic territory when the employees of 
a resident producer are working temporarily in another economic territory and when 
the nature and duration of the activity do not warrant its treatment as a notional 
resident unit of that other territory. 
Jobs are excluded from the count of jobs in the economic territory when performed for 
non-resident institutional units, that is, for units with a centre of interest in another 
country which have no intention of being active on the domestic territory for a year or 
more. 
The jobs of the staff of international organisations and those of locally recruited staff 
engaged by foreign embassies are excluded from the count, since the employing units 
are not resident. 
TOTAL HOURS WORKED 
11.26. Definition: 
Total hours worked represent the aggregate number of hours actually worked as an 
employee or self-employed during the accounting period, when their output is within the 
. production boundary. 
Because of the broad definition of employees which covers persons temporarily not at 
work but with a formal attachment, and part-time workers, the ESA recommends that the 
appropriate measure for productivity calculation is not a head count but total hours worked. 
Total hours worked is the preferred measure of labour inputs for the system. 
11.27. In accordance with the norms established by the International Labour Office (Tenth 
International Conference of Labour Statisticians), total hours actually worked cover: 
a) hours actually worked during normal working hours 
b) hours worked in addition to those worked during normal working hours, and 
generally paid at higher rates than normal rate (overtime) 
c) time which is spent at the place of work on tasks such as preparing the site, repair 
and maintenance work, the preparation and cleaning of tools, and the making-out 
of receipts, invoices, records of the length of time worked and other reports 
355 -
d) idle time spent at the place of work waiting or standing by because, for example, 
of temporary lack of work, the breakdown of machinery or accidents, or time 
spent at the place of work during which no work is done but for which payment is 
made under a guaranteed employment contract 
e) time corresponding to short periods of rest at the work place, including 
refreshment breaks. 
11.28. On the other hand, hours actually worked do not include: 
a) hours which are paid but not worked, such as paid annual holidays, public 
holidays, or sick-leave 
b) breaks for meals 
c) time spent travelling between home and the place of work, even when paid 
(construction workers). However, such travel organized in employers' time is 
included in hours of work. 
11.29. Total hours worked is the aggregate number of hours actually worked during the 
accounting period in employee and self-employment jobs within the economic territory 
including work outside the economic territory for resident employer institutional 
units who have no centre of economic interest there 
excluding work for foreign employer institutional units who have no centre of 
economic interest within the economic territory. 
11.30. Many surveys of enterprises record hours paid not hours worked. 
In those cases, hours worked have to be estimated for each job group, using whatever 
information is available about paid leave, etc. 
11.31. For business cycle analysis, it may be useful to adjust total hours worked by adopting a 
standard number of working days per year. 
FULL-TIME EQUIVALENCE 
11.32. Definition: 
Full-time equivalent employment, which equals the number of full-time equivalent jobs, is 
defined as total hours worked divided by the average annual number of hours worked in 
full-time jobs within the economic territory. 
11.33. This definition does not necessarily describe how the concept is estimated: since the lengh 
of a full-time job has changed through time and differs between industries, methods which 
establish the average proportion and average hours of less than full-time jobs in each job 
group have to be used. A normal full time week must first be estimated in each job group. 
If possible, a job group can be defined, inside an industry, according to sex and (or) kind of 
work of people. Hours contractually agreed upon constitute, for employee jobs, the 
appropriate criteria for determining those figures. Full-time equivalent is calculated 
separately in each job group, then summed. 
- 356 -
11.34. In spite of the fact that total hours worked are the best measure of labour inputs, there are 
some advantages in the full-time equivalence: it can be estimated more easily and this 
facilitates international comparisons with countries which can only estimate full-time 
equivalent employment. 
EMPLOYEE LABOUR INPUT AT CONSTANT COMPENSATION 
11.35. Definition: 
Employee labour input at constant compensation measures current labour inputs valued at 
the levels of compensation of employee jobs ruling during a selected base period. 
11.36. Compensation of employees at current prices divided by employee labour input at constant 
prices yields an implicit compensation price index comparable with the implicit price index 
of final uses. 
11.37. The purpose of the concept of employee labour input at constant compensation is to 
express the changes in the composition of the work force, e.g. from lower paid to higher 
paid workers. To be effective, the analysis should be undertaken on an industry basis. 
-357-
(23) 
CHAPTER XII 
QUARTERLY ECONOMIC ACCOUNTS 
3VS- 359 
12.01. The quarterly economic accounts form an integral part of the system of national accounts 
and amongst other uses, are very important for the analysis of the current year and 
calculation of provisional estimates for the last year. The quarterly economic accounts 
constitute a coherent set of transactions, accounts and balancing items, defined in both non-
financial and financial domain, recorded on a quarterly basis. They adopt the same 
principles, definitions and structure as the annual accounts, subject to certain 
modifications, due to the period of time covered. 
12.02. The importance of quarterly economic accounts derives essentially from the consideration 
that they are the only coherent set of indicators, available with a short time-lag, able to 
provide a short term overall picture of both non-financial and financial economic activity. 
12.03. The period of time to which the quarterly accounts relate and the need to have reliable 
information as quickly as possible determine certain typical features. These specificities 
include statistical methods of compiling accounts, seasonality and the treatment thereof, 
consistency of quarterly and annual accounts and some account particularities related to the 
reference period. These typical features will be extensively analyzed in a handbook of 
quarterly account that Eurostat intends to publish before the application of this 
methodology. 
12.04. The statistical methods used for compiling quarterly accounts may differ quite 
considerably from those used for the annual accounts. They can be classified in two major 
categories: direct procedures and indirect procedures. Direct procedures are based on the 
availability at quarterly intervals, with appropriate simplifications, of the similar sources as 
used to compile the annual accounts. On the other hand, indirect procedures are based on 
time disaggregation of the annual accounts data in accordance with mathematical or 
statistical methods using reference indicators which permit the extrapolation for the current 
year. The choice between the different indirect procedures must above all take into account 
the minimisation of the forecast error for the current year, in order that the provisional 
annual estimates correspond as closely as possible to the final figures. The choice between 
these approaches depends, among other things, on the information available at quarterly 
level. 
12.05. The quarterly accounts series quite often show very short-term variations due to weather, 
habits, legislation, etc., usually defined as seasonal fluctuations. Although seasonality is an 
integral part of quarterly data, it is often an impediment to the correct identification and 
analysis of the cycle-trend component. From this consideration follows the need to compile 
both raw and seasonally adjusted accounts. The accounting consistency of seasonally 
adjusted figures should be ensured. A closely related problem to seasonal adjustment, is 
that of the working days correction, which needs further consideration to be taken up in the 
Eurostat handbook. 
-360-
12.06. Since quarterly accounts adopt the same framework of annual accounts they have to be 
consistent over time with them. This implies, in the case of flow variables, that the sum of 
the quarterly data is equal to the annual figures for each year. In principle there are no 
obstacles to this condition being met for previous years. However, for the current year 
there is a problem of time priority between quarterly and annual data as quarterly data are 
normally available earlier than the annual figures. This problem may be solved by agreeing 
that the provisional estimates of annual figures are obtained by the aggregation of quarterly 
figures. When new annual information becomes available resulting in a revision of the 
provisional figures, the quarterly data have to be modified accordingly. Within same 
systems, the annual accounts are a by-product of the quarter system and there is no separate 
annual calculation. 
12.07. The time consistency must be ensured for raw data and, compatibly with the seasonally 
adjustment procedures, for adjusted figures to. 
12.08. If, in principle, most of the operations and balancing items are distributed with a certain 
regularity on all the quarters, there are anyway some operations that appear concentrated in 
one or two quarters of the year. This is the case for taxes on income, dividends, interests, 
etc. The treatment of these cases depends essentially on the underlying generation process. 
12.09. From a theoretical point of view there are not obstacles to the layout used for the quarterly 
accounts being the same as that used for the annual accounts. However, in practice, it is 
useful to simplify and aggregate this scheme in order to obtain reliable quarterly figures as 
quickly as possible (see program of tables and data to be supplied in the framework of 
ESA-95). 
361 

CHAPTER XIII 
REGIONAL ACCOUNTS 
- 3 6 ^ - 363 
INTRODUCTION 
13.01. Regional accounts are a regional specification of the corresponding accounts of the total 
economy. The regional accounts make use of the concepts used for the accounts of the total 
economy unless indicated otherwise in this section. 
13.02. A full set of accounts at the regional level implies treating each region as a separate 
economic entity. In this context, transactions with other regions become a kind of external 
transactions. External transactions of the region should of course, be distinguished 
according to transactions with other regions of the country and transactions with the rest of 
the world. 
13.03. Conceptual difficulties (see par. 13.10. - 13.14.) partly explain why regional accounts are 
limited to recording production activities by industry and to accounts for some institutional 
sectors like households. 
REGIONAL TERRITORY 
13.04. The regional economy of a country is part of the total economy o that country. The total 
economy is defined in terms of institutional units. It consists of all the institutional units 
which have acentre of interest in the economic territory of a country (see par.2.04.). The 
economic territory, although consisting essentially of the geographic territory, does not 
coincide exactly (see par. 2.05.). The economic territory of a country can be divided into 
regional territories and the extra-regio territory. 
13.05. The regional territory includes : 
a. the region that is part of the geographic territory of a country; 
b. any free zones, including bonded warehouses and factories under customs control in 
the region. 
13.06. . The extra-regio territory is made up of parts of the economic territory of a country which 
cannot be attached directly to a single region. It consists of: 
a. the national air-space, territorial waters and the continental shelf lying in international 
waters over which the country enjoys exclusive rights; 
b. territorial enclaves (i.e. geographic territories situated in the rest of the world and used, 
under international treaties or agreements between States, by general government 
agencies of the country (embassies, consulates, military bases, scientific bases etc.)); 
c. deposits of oil, natural gas etc. in international waters, outside the continental shelf of 
the country, worked by resident units. 
13.07. The nomenclature of territorial units for statistics (NUTS) provides a single, uniform 
breakdown of the economic territory of the European Union. The NUTS is the territorial 
classification for the compilation of regional accounts 
-364 
UNITS AND RESIDENCE 
13.08. Two types of units are distinguished. First of all the local KAU for the analysis of flows 
occurring in the process of production and in the use of goods and services. Secondly the 
institutional unit to analyse flows affecting income, capital and financial transactions, other 
flows and balance sheets 
13.09. The local KAU is the part of a KAU which corresponds to a local unit. The local unit is an 
institutional unit producing goods and services or a part thereof situated in a geographically 
identified place (see par 2.106.). Therefore, in principle the regional residence of a local 
KAU can be unambiguously determinated. 
Regarding the transactions in relation to the production activities, it is necessary to record 
flows between local KAUs, which belong to the same institutional unit and are located in 
different regions. The ESA recommends including deliveries between local KAUs in the 
definition of output and this is especially important in regional accounts 
13.10. In case of institutional units two types of institutional units have to be considered in the 
context of regional accounts. First of all, there are uni-regional units, the centre of 
economic interest of which is in one region and most of their activities take place in this 
region. Among uni-regional units are households, corporations whose local KAUs are all 
located in the same region, local and state governments, at least part of social security and 
many NPIs serving households. 
Secondly, there are multi-regional units, the centre of economic interest of which is in 
more than one region. Many corporations and a number of NPIs are in this situation. To a 
greater extent, this is also the case for institutional units whose activities span the whole 
country such as central government and a small number of corporations, generally in a 
monopolistic or quasi-monopolistic situation, like the national railway corporation or the 
national electricity corporation. 
13.11. All transactions of the uni-regional institutional units are allocated to the region in which 
they have their centre of economic interest. Regarding households, the centre of economic 
interest i*s the region where they live, not the region where they work. Other uni-regional 
units have their centre of economic interest in the region where they are located. 
13.12. Part of the transactions of multi-regional units is not, strictly speaking, regionalizable, in 
concept. This is the case for most distributive and financial transactions. Consequently, 
balancing items of multi-regional units may not be unambiguously defined at the regional 
level for multi-regional units 
13.13. One may think of allocating all transactions of multi-regional units between regions 
according to some rules of thumb. However, this should not be considered simply as a 
practical approximation. It implies a conceptual adaptation of the ESA, since the reasons 
which prevent including a full sequence of accounts for localKAUs/industries in the central 
framework also forbid, in principle, completely distributing all institutional units and their 
accounts between regions; for this would mean, in principle, building up a full set of 
accounts for local KAUs. 
365 
13.14. Due to the above-mentioned considerations, the system of regional accounts is limited to: 
regional industry aggregates on production activities: 
gross value added, 
Compensation of employees 
employment, 
employees 
gross fixed capital formation 
gross domestic product per region (GDPR); 
regional household accounts 
METHODS OF REGIONALIZATION 
13.15. Regional accounts are based on the transactions of units that are resident in a regional 
territory. In general the regionalization can be done by using bottom-up methods, top-down 
methods or mixed methods. The methods may be described as follows: 
a. Bottom-up methods 
The bottom-up method of estimation involves the use of information on units that are 
resident in the region, and ascending by addition until the regional value of the aggregate is 
established. The regional values must add up to the corresponding national value. 
b. Top-down methods 
The top-down method involves the distribution of a national figure among regions, without 
attempting to single out resident units, by means of a distribution key which reflects as 
closely as possible the feature to be estimated. The method is called top-down because the 
aggregate is allocated to a region and not to a single unit. However, the notion of a resident 
unit is needed in order to have a correct regional coverage of the key to be used. 
c. Mixed methods 
The bottom-up method is rarely encountered in its pure form. Therefore mixed methods 
may also be considered. For example it happens that a variable or an aggregate of variables 
can only be regionalized with the help of the bottom-up method at level NUTS-1. For a 
further regionalization at level NUTS-2 or NUTS-3 a top-down method has to be used. 
13.16. In principle, the advantage of the bottom-up method is that it directly employs relevant 
sources at the regional level. An advantage of top-down methods is the guarantied 
numerical consistency between national and regional accounts. A disadvantage is that the 
estimates are not produced with direct data but with a key that is supposedly correlated 
with the phenomenon to be measured. 
13.17. Whenever possible regional values which directly correspond in concept with the national 
values should be estimated directly by means of the bottom-up method. The top-down 
procedure does not lead to a solid, reliable data basis for judging the accuracy of the 
estimated values, whereas in the bottom-up method attention is drawn to a possible 
divergence with the national totals. 
- 366 -
AGGREGATES BY INDUSTRY 
13.18. An industry for a region consists of a group of local KAUs engaged in the same, or similar, 
kind of activity (see par. 2.108.). The local KAU is the unit on which the data related to 
production activities (output, intermediate consumption, etc.) are based. 
13.19. As a general principle, aggregates on production activities should be allocated to the region 
where the unit carrying out the relevant transactions is resident. The residence of the local 
KAU is an essential criterion for the allocation of these aggregates to a particular region. 
13.20. The general principle of allocating gross fixed capital formation by region is ownership 
just as in the accounts of the total economy (see par. 2.05., footnote 1). Fixed assets owned 
by a multi-regional unit are allocated to the local KAUs where they are used. As in national 
accounts fixed assets obtained through operational leasing are recorded in the region of the 
owner and those obtained through financial leasing, in the region of the user 
13.21. In practice, it may be that information is only available at the level of units which contain 
several local KAUs engaged in different activities and/or regions. In this case, available 
indicators (e.g. compensation of employees or employment per region) have to be used to 
regionalize the figures by industry. 
13.22. When defining a local KAU three situations can be distinguished: 
a. A production activity with significantO) labour input at a fixed location raises no 
problems. However, in some cases further clarification is needed (see par. 13.24. -
13.27.). 
b. A production activity without significant labour input at a fixed location is not 
considered as a separate local KAU and the production should be attributed to the local 
unit that is responsible for managing this production. 
c. For a production activity without a fixed location the concept of residence at the 
national level should be applied 
13.23. Ancillary activities are not isolated to form distinct entities or separated from the principal 
or secondary activities or entities they serve (see par. 2.104.). Accordingly, ancillary 
activities should be integrated with the local KAUs they serve. 
Ancillary activities may be carried out in separate locations, located in another region than 
the local KAUs they serve. The strict application of the above-mentioned rule for the 
geographical allocation of the ancillary activities would result in the underestimation of the 
aggregates in the regions where ancillary activities are concentrated. Therefore according 
to the principle of residence, they have to be allocated to the region where the ancillary 
activities are situated; they remain in the same industry as the local KAUs they serve. 
' ) Significant labour input, in this context, has to be considered as a minimum of the yearly equivalent of one person working half-day 
367 
13.24. For some industries, the methods for regionalization need some further clarification. The 
industries are: 
construction; 
transport storage and communication 
financial intermediation 
13.25. For the construction industry, building sites should be treated as independent local KAUs 
when the activity is significant (see par. 2.09., footnote 1). Given the mobility of some 
equipment, e.g. pile-drivers and cranes, between local units of the same KAU and the 
absence of information at site level, it is recommended to allocate gross fixed capital 
formation of such equipment to the headquarters of the KAU. 
13.26. For transport industries including pipeline transport it is essential to define the local KAUs 
to which the production and capital formation should be attached. For land transport 
industries (excluding railways) the production and capital formation should be attached to 
depots or similar local KAUs where the equipment is based. For water transport industries 
the production and mobile equipment should be allocated to the home base of the unit. 
Pipeline networks should be attached to the local KAU that exploits it. 
For rail and air transport industries top-down methods, breaking down the national 
aggregates into regions according to suitable indicators, should be used. Compensation of 
employees should be allocated to the region where the people are employed. The gross 
operating surplus should be allocated to the regions according to indicators relating to the 
activity of the train or air routes. 
Regarding communication industries, telephone boxes, telephone sets, telecommunication 
lines, etc. perform only a supporting role.Therefore, they do not form distinct entities and 
should be attributed to the local KAU responsible for managing them. The investment in 
infrastructure should also be allocated to these local units. 
13.27. For financial intermediation industries, value added should be allocated according to the 
income approach. Compensation of employees should be allocated to the local KAUs 
where the people are employed. Gross operating surplus of credit institutions should be 
distributed between local KAUs in proportion to the sum of loans and deposits, and gross 
operating surplus of insurance institutions in proportion to the premiums received. Gross 
fixed capital formation mainly consists of buildings; therefore, it should be allocated to the 
region where they are situated. 
368 
13.28. Output is to be valued at basic prices (see par. 3.37.). Products used for intermediate 
consumption are to be valued at purchasers' prices at the time they enter the process of 
production (see par. 3.62.). As a consequence gross value added per industry is valued at 
basic prices. 
Gross fixed capital formation is valued at purchasers' prices including installation charges 
and other costs of ownership transfer. When produced on own-account it is valued at basic 
prices of similar fixed assets or at costs of production if such prices are not available (see 
par. 3103). 
13.29. The regional equivalent of GDP is GDPR (gross domestic product per region). GDPR is 
valued at marked prices by adding the regionalized taxes less subsidies on products and 
imports to values added per region at basic prices. The sum of GDPR at market prices per 
region, including GDPR of the extra-regio territory, equals GDP at market prices. 
HOUSEHOLD ACCOUNTS 
13.30. Gross domestic product per region is the result of the productive activities of the local 
KAUs resident in a region. The processes of distribution and redistribution of income 
result in other meaningful balancing items, namely primary income and disposable income. 
Due to the considerations mentioned in 13.10. - 13.14., in regional accounts these income 
concepts are limited to households 
13.31. Regional accounts of households are a regional specification of the corresponding accounts 
at the national level. For practical reasons the accounts are limited to: 
allocation of primary income account; 
secondary distribution of income account; 
In general terms, they aim at measuring primary income and disposable income of 
households which are resident in a region. 
13.32. The regional household accounts are based on the households that are resident in a regional 
territory. For the definition of households as institutional units and for the definition of the 
institutional sector households, is referred to par. 2.13., 2.16., 2.75. and 2.76.. The number 
of persons that are member of the resident households add up to the total resident 
population of the region. 
13.33. In general the rules for determining the residence of households at the national level also 
apply to the regional accounts of households. However, concerning the residence of 
students and long-term patients an exception is made when the host region is in the same 
country. In regional accounts, they are treated as resident of the host region if they stay 
there more than one year 
13.34. In the regional accounts of households, two considerations have to be made regarding 
households owning an unincorporated enterprise,land and/or a second dwelling in another 
region. 
- 369 
A household owning an unincorporated enterprise (not viewed as a quasi-corporation 
at the national level) in another region. 
The unincorporated enterprise is considered to be a resident (notional unit) in the host 
region. As a consequence, mixed income resulting from the compilation of aggregates by 
industry is part of the mixed income of the host region. However mixed income as 
registered in the allocation of primary income account of households per region is to be 
equal to total mixed income received by households resident in a region, irrespective of the 
region in which this income is generated. 
A household owning land and/or a second dwelling in another region. 
Here, the land and/or the second dwelling are also considered to be notional units resident 
in the host region. Consequently, the rents and rentals payable by the tenants of the land 
and/or the dwelling are paid to the notional unit. If the second dwelling is used by the 
owner for own final consumption, the rental value should be registered as an inter-regional 
export from the region where the dwelling is located to the region where the owner resides. 
The latter region thus imports this service and uses it for final consumption expenditure of 
households. As in the case of mixed income, the operating surplus resulting from t1 
production process will differ from the operating surplus in the allocation of primary 
income accounts of households; for the total economy, both are equal. 
370 -
ANNEX 
37 

ANNEX 1 
FINANCIAL INTERMEDIATION SERVICES 
INDIRECTLY MEASURED 
(FISIM) 
- "1 Z. - 37' 
Changes to be made in the ESA chapters 
if FISIM is to be allocated 
374-
(24) 
Delete Add and replace 
1.13. "Recording the use of financial services Replace by: "Allocating the use of financial 
indirectly measured as intermediate intermediation services indirectly measured 
consumption of a nominal sector (industry)" (FISIM) to user sectors/industries" 
Add at 1.25. "Some of the major differences in 
concept are:" 
"- The use of financial intermediation services 
indirectly measured (FISIM) is now allocated to 
user sectors/industries instead of to a nominal 
sector (industry). As a consequence, the use of 
FISIM is not anymore by convention recorded 
entirely as intermediate consumption, but can 
also be final consumption, imports and 
exports." 
3.60.J) "only for the total economy: all financial Replace by: "the use of financial intermediation 
intermediation services indirectly measured services indirectly measured by resident 
(FISIM) provided by resident producers " producers" 
Add to 3.66.e) "financial services directly 
charged": 
"and the part of financial intermediation 
services indirectly measured used for final 
consumption purposes by households" 
Add immediately after 3.132. "-Financial 
services by the amount of the explicit 
commissions and fees": 
"- The part of financial intermediation services 
indirectly measured used by non-residents" 
375-
4.51. second part 4.51. second part 
"The value of the services provided by 
financial intermediaries not being 
allocated among different customers, the 
actual payments or receipts of interest to 
or from financial intermediaries are not 
adjusted to eliminate the margins that 
represent the implicit charges made by 
financial intermediaries. An adjustment 
item is needed in the allocation of primary 
income account of financial intermediaries 
and of a nominal industry to which, by 
convention, the whole output of financial 
intermediaries is allocated as intermediate 
consumption." "The value of the services provided by 
financial intermediaries being allocated 
among different customers, the actual 
payments or receips of interest to or from 
financial intermédiaires need to be 
adjusted to eliminate the margins that 
represent the implicit charges made by 
financial intermediaries. The amounts of 
interest paid by borrowers to financial 
intermediaries must be reduced by the 
estimated values of the charges payable, 
while the amounts of interest receivable 
by depositors must be similarly increased. 
The values of the charges are treated as 
payments for services rendered by 
financial intermediaries to their 
customers and not as payments of 
interest." 
8.14. "As financial intermediation services 
indirectly measured (FISIM) are not 
allocated to user sectors, 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 to intermediate 
consumption. In this way, the value added 
of all sectors and industries together is 
reduced in total by this amount. To lighten 
the presentation of accounts, it is possible 
not to insert a supplementary column for 
the nominal sector, but instead to take into 
account the corresponding figure in the 
column total economy." 8.14. "As financial intermediation services 
indirectly measured (FISIM) are allocated 
to user sectors, certain parts of interest 
payments are reclassified as payments of 
services. This reclassification has conse­
quences for the values of output and 
intermediate consumption (as well as for 
the values of imports, exports and final 
consumption)." 
376 
.24. "As financial intermediation services 
indirectly measured (FISIM) are not 
allocated to user sectors, the entries shown 
for interest are those for actual interest 
payable and receivable. An adjustment is 
made to resources in the column financial 
corporations (with a negative sign) and in 
the column nominal sector (with a positive 
sign). To lighten the presentation of 
accounts, it is possible not to insert a 
supplementary column for the nominal 
sector, but instead to present the 
corresponding figure in the column total 
economy." 8.24. "As financial intermediation services 
(FISIM) are allocated to user sectors, the 
item "interest" in the allocation of 
primary income account corresponds to 
interest payable and receivable after 
FISIM has been deducted from actual 
payables by borrowers and added to 
actual receivables by lenders." 
Add tables 1 and 2 to show the consequences of 
allocation of FISIM on figures presented in the 
chapter 8 sequence of accounts (numerical 
example). 
-377 
Table 1 Effect of allocating FISIM to institutional sectors, including changes for non-market producers 
Uses Resources 
00 Accounts 
SMBSMMMBlilBHBa 
I. 
Production/ 
external 
account 
TOT ' 
Generation 
of income 
account 
11.1.2. 
Allocation 
of primary 
income 
account 
II.2. 
Secondary 
distribution 
of 
income 
account 
IU. Use 
of income 
account Total 
2 
4 
27 
30 
30 
230 
22 
22 
28 Good 
and 
servie 
(res.) 1572 51 S.15 S.14 
Rest 
of 
the 
worid 
4 
-2 Total 
eco­
nomy 
27 
30 
30 
13 217 
22 
22 
28 
-6 NPIS Hous 
holds 
14 
35 
19 
16 S.13 S.12 S.11 
Non-
Finan finan-
Gener cial cial 
gover corpo corpo-
ment ration ration 
0 18 
48 -18 
35 -21 
6 
-27 48 -1Î 
35 106 56 
21 48 -41 
48 -41 S.11 S.12 S.13 S.14 
Non-
finan- Finan­
cial cial Gener 
corpo- corpo- gover Hous 
Transactions and balancing ite ration ration ment holds 
P.72 Imports of services 
P.62 Exports of services 
P.1 Output 48 
P.2 Intermediate consumption 
B.1 Value added/external balance -18 48 
B.2 Operating surplus -18 48 
D.41 Interest 33 106 
B.5 Balance of primary incomes -41 48 -21 14 
48 -41 B.6 Disposable income -41 48 -21 
P.3 Final consumption expenditure 
B.8 Saving, net/external balance 49 
35 
35 S.15 S.1 572" 
NPIS Total 
eco­
nomy 
57 
30 
22 
22 Rest 
of 
the 
world 
30 
209 21 Good 
and 
servie 
(uses) Total Accounts 
4 Production/ 
57 external 
account 
30 11.1.1. 
Generation 
of income 
account 
30 11.1.2. 
Allocation 
of primary 
230 income 
account 
22 II.2. 
Secondary 
distribution 
of income 
account 
II.4. Use 
22 of income 
account 
Table 2 Effect of allocating FISIM to nominal sector only 
Uses Resources 
-si 
o Accounts Tot 
I. Production 
account 
II.l.l. 
Generation 
of income 
account 
II.1.2. 
Allocation 
of primary 
income 
account 
II.2. 
Secondary 
distribution 
of income 
account 
II.4. Use 
of income 
account 48 
222 Good 
and 
servie 
(res.) S^ S7Î 
Res 
of Total 
the eco-
worl nomy ~57f5 S7Ï S7Î3 S7Ï2 37TT" 
Non-
Finan- finan-
Gener cial cial 
Hou gover corpo- corpc-S7Î2 S7Ï3 STÏ4 S7Ï5 S7i 572" 
Non-
finan- Finan­
cial cial Gener 
corpo- corpo- gover Hous 
NPIS hoi ment ration ration Nominal Transactions and balancing Items Nominal ration ration ment holds NPIS 
48 
16 206 
6 -2 17 
16 
6 -6 -2 39 
-27 
-6 -2 16 -27 
16 -27 48 
48 
77 
48 66 
-41 
48 -41 
48 -41 48 
-48 P.l Output 
P.2 Intermediate consumption __. 
B.l Value added/external balance -48 
•48 B.2 Operating surplus 
D.41 Interest 
Adjustment for FISIM 
B.5 Balance of primary incomes -48 
B.6 Disposable income 
B.8n Saving, net/external balance 48 25 
-41 
-41 48 
48 
48 
125 
-48 
48 
48 12 
•27 
•27 33 
16 
16 Res 
Tot of 
eco the 
no worl 
48 
-2 -6 
-2 -6 Good 
and 
servie 
(uses) 
48 Total Accounts 
5 200 22 48 
48 
222 I. 
Production 
account 
II.l.l. 
Generation 
of income 
account 
II.1.2. 
Allocation 
of primary 
income 
account 
11.2. 
Secondary 
distribution 
of income 
account 
II.4. Use 
of income 
account 
9.25. "the intermediate consumption by industry 
includes the use of financial intermediation 
services indirectly measured that are recorded in 
a nominal industry (see para 9.33.)" 
9.25. "minus the use of financial intermediation 
services indirectly measured (recorded in a 
nominal industry, see para 9.33.)" 
9.33. "Throughout the supply and use tables, the 
NACE.Rev. 1 industry classification ... As a 
consequence, its total gross value added is equal 
to its (negative) net operating surplus" 
380 
ANNEX2 
LEASING AND fflRE PURCHASE 
OF DURABLE GOODS 
381 
I. DEFINITIONS 
In addition to purchasing durable goods outright, institutional units can obtain the use of 
them in the following ways: operating leasing, financial leasing and hire purchase. In all 
three cases the institutional unit in question acquires the right to use a durable good, 
although the good legally remains the property of another unit. 
Leasing 
When one institutional unit A owns a durable good and transfers the right to use this good 
to another unit B, A is said to be the "lessor" and B the "lessee". Payments from B to A in 
exchange for the transfer of user rights are called "rental payments". The lessor may be 
identical with, or a subsidiary of, the producer or seller of the durable good, but the lessor 
may also be a completely independent unit with no ties to the producer or seller. All sorts 
of produced durable goods, from buildings and structures to consumer durables, may be the 
subject of leasing, and any kind of institutional unit may use leasing to obtain user rights 
over durable goods. The two types of leasing, operating and financial leasing, are treated 
quite differently in the system. 
Operating leasing 
3. The lessee acquires the right to use a durable good for a certain period of time, which may 
be long or short and not necessarily settled in advance. When the leasing period expires, 
the lessor expects to receive his good back in more or less the same condition as when he 
hired it out, apart from normal wear and tear. The lessor is then likely to hire out the good 
to another lessee or to use it otherwise. Thus, the leasing period does not cover all, or a 
predominant part of, the good's economic lifetime. 
Units engaged in operating leasing possess expert knowledge about the kinds of durable 
goods they hire out. They keep stocks of these goods to be able to hire them out on demand 
or at short notice. Usually they offer a variety of models to choose from. In order to keep 
their durable goods in good working order, lessors must carry out maintenance and repair 
services on goods awaiting hire. Lessors also normally assume responsibility for repairs 
and maintenance of a good, as well as replacement in case of a breakdown, while the good 
is hired out to a lessee. 
Operating leasing does not cover situations where the owner of equipment also provides 
staff to operate the equipment, or the hiring of non-produced assets, as these activities are 
classified elsewhere (see para. 7.). 
Financial leasing 
4. The lessee acquires the right to use a durable good in exchange for rental payments over a 
predetermined and protracted term. If all risks and rewards of ownership are, de facto 
though not de jure, transferred from lessor to lessee, the lease is a financial one. In financial 
leasing, the leasing period covers all, or most of, the economic lifetime of the durable 
good. At the end of the leasing period the lessee often has the option to buy the good at a 
nominal price. The lessor does not need to possess any expertise about the good in 
question. He offers no repair, maintenance or replacement services to the lessee. Normally, 
the good is chosen by the lessee and delivered directly to him by the producer or seller. The 
lessor's role is thus purely financial. 
382 
The ESA recognizes the economic reality behind financial leasing by recording it as 
follows: The lessor provides the lessee with a loan enabling the lessee to purchase a 
durable good, of which the lessee becomes the de facto owner. Thus, the system treats the 
durable good as if owned by the lessee from the beginning of the leasing period. Rentals 
actually paid by the lessee to the lessor have to be subdivided into repayments of principal 
and interest payments related to the imputed loan. 
Hire purchase 
5. A durable good is sold to a purchaser in return for agreed future payments. The buyer takes 
possession of the good immediately, though in law it remains the property of the seller or 
financier as collateral/guarantee until all agreed payments have been made. Hire purchase 
is usually restricted to consumer durables, and most purchasers are households. Financiers 
of hire purchase contracts typically are separate institutional units operating in close 
cooperation with sellers of durable goods. 
II. TREATMENT IN THE ACCOUNTS 
Operating leasing 
6. A durable good purchased by a lessor for the purpose of leasing is part of the lessor's gross 
fixed capital formation (P.51) and is shown as a tangible fixed asset (AN.III) in the lessor's 
balance sheet during its entire economic life. Subsequent capital consumption (K.1) in 
respect of the durable good is recorded in the lessor's accounts. 
Rental payments received by a lessor are shown in his production account as output (P.l) 
of leasing services. If the lessee is a producer, rental payments are part of his intermediate 
consumption (P.2). When the lessee is a household acting as a final consumer, rental 
payments are part of his final consumption expenditure (P.3). 
7. In NACE Rev. 1, operating leasing of real estate is classified in class 70.20 'Letting of own 
property'. Operating leasing of other durable goods is classified in division 71 'Renting of 
machinery and equipment without operator and of personal and household goods'. 
Operating leasing does not comprise the renting of machinery or equipment with operating 
staff, which is classified according to the services provided by the equipment and staff. For 
example, the hiring out of a lorry with driver is classified in class 60.24 'Freight transport 
by road'. Institutionally, operating leasing corporations are classified in sector S.ll 'Non-
financial corporations', but operating lessors may also be found in sector S.14 'Households'. 
If the lessor is resident while the lessee is non-resident, rental payments are shown as 
exports of services (P.62). As the leased good remains on the balance sheet of a resident 
unit (the lessor), the good does not appear in any of the rest of the world accounts. If the 
lessor is non-resident while the lessee is resident, rental payments are recorded as imports 
of services (P.72). In this case the good itself is not considered to enter the economic 
territory (only its services are). Thus the leased good appears neither in the rest of the 
world accounts nor in any other account. 
383 
Financial leasing 
8. If the lessee is a producer, the durable good is shown as gross fixed capital formation 
(P.51) for the lessee at the beginning of the leasing period. Throughout the leasing period 
(unless the lessee defaults on the rental payments) the good is shown as a tangible fixed 
asset (AN.III) in the balance sheet of the lessee. Subsequent capital consumption (K.l) is 
shown in the accounts of the lessee. At the end of the leasing period, either (i) the lessee 
buys the good at its residual value when it remains on his balance sheet, or (ii) the good 
reverts to the lessor, when it is shown as negative gross fixed capital formation for the 
lessee and thus leaves the lessee's balance sheet, and may enter the balance sheet of the 
lessor or that of a third party, to whom the lessor has sold on. 
9. If the.lessee is a household acting as a final consumer, the durable good is treated as if 
bought by the lessee for the purpose of final consumption at the beginning of the leasing 
period. This means that the purchaser's price of the leased good is part of the lessee's final 
consumption expenditure (P.3) at the beginning of the leasing period and that the good 
appears only as a consumer durable in the memorandum item to his balance sheet. 
A loan (F.4) is imputed from lessor to lessee. The principal of this loan is the purchaser's 
price of the leased good plus transfer costs (if any). The outstanding imputed loan (AF.4) is 
shown in the lessor's and lessee's balance sheets as a financial asset and liability, 
respectively. Payments of rental are considered to comprise two elements, repayment of 
principal (F.4) and interest (D.41), with the final repayment coinciding with the 
termination of the financial lease. 
10. The interest rate on the imputed loan is implicitly determined so that accumulated 
repayments over the leasing period exactly equal the principal. When rental % remains 
constant from period to period, the interest part of rental will decline over time, while the 
repayment part will increase correspondingly, as for a loan payable in equal instalments. 
When principal, rental and length of the leasing period are known for each contract, the 
interest rate, the interest payments and the repayments can easily be calculated using 
standard formulae. When detailed data on each leasing contract are not available, which is 
often the case in practice, reasonable assumptions must be made in order to carry out these 
calculations. In many countries business accounting treats financial leasing in a similar 
way as described here, which facilitates the data situation. 
11. Financial lessors' productive activity is financial intermediation. Usually lessors do not 
charge explicitly for their intermediation services. Their output is therefore mainly or 
exclusively financial intermediation services indirectly measured (FISIM), calculated 
similarly to other financial intermediaries: property income receivable less interest payable, 
excluding any property income receivable from the investment of their own funds*1). Some 
financial lessors incur liabilities to other independent units when interest payable is 
observable and the calculation of FISIM is straightforward. Other financial lessors incur 
liabilities only to their parent companies when interest payable may be difficult to observe. 
In the latter case it may be necessary to estimate the amount of interest payable by using an 
appropriate interest rate. 
O Tor further detail see chapter III, para. 3.53. 
384 
Financial leasing corporations are classified in the institutional subsector S.123 'Other 
financial intermediaries except insurance corporations and pension funds'. The activity 
classification is NACE Rev. 1 class 65.21 'Financial leasing'. 
12. The ESA's treatment of financial leasing implies that the leased good does not appear in 
any of the lessor's accounts. Whether or not the lessor is resident or non-resident is thus of 
no consequence to the treatment of the good itself. If the producer or seller of the good is 
resident while the lessee is non-resident, the leased good is treated as if exported (P.61) 
when the lessee takes possession of it, i. e. at the beginning of the leasing period. If the 
producer/seller is non-resident while the lessee is resident, the good is considered to be 
imported (P.71) when the leasing period begins. 
If the lessor is resident while the lessee is not, a loan (F.4/AF.4) is imputed from a resident 
unit (the lessor) to a non-resident unit (the lessee). If the lessor is non-resident and the 
lessee is resident, a loan is imputed from a non-resident unit (the lessor) to a resident unit 
(the lessee). As in the case of leasing transactions between residents, rental payments are 
broken down into interest (D.41) and repayments of principal (F.4). 
Hire purchase 
13. The durable good is recorded as if bought by the purchaser the day he takes possession of it 
at the price the purchaser would have paid in a cash transaction. The purchaser receives an 
imputed loan (F.4/AF.4) of equivalent value. The ESA splits the payments from purchaser 
to financier into repayments of principal (F.4) and interest payments (D.41), using the same 
method as the one applied for financial leasing. 
The productive activity carried out by financiers of hire purchase contracts is financial 
intermediation. As they do not usually charge explicitly for their services, their entire 
output is financial intermediation services indirectly measured (FISIM), calculated as 
property income receivable less interest payable, excluding any property income receivable 
from own funds. As the case of financial leasing, the amount of interest payable may be 
difficult to observe and must therefore be estimated. 
14. In NACE Rev. 1, financiers of hire purchase contracts are classified in class 65.22 'Other 
credit granting'. Hire purchase corporations are classified in institutional subsector S.123 
'Other financial intermediaries except insurance corporations and pension funds', but 
financiers of hire purchase contracts may also be encountered in sector S.14 'Households'. 
If the purchaser is non-resident while the financier is resident, the good is treated as if 
exported (P.61) when the purchaser takes possession of it. In this case, the financier 
provides a non-resident unit (the purchaser) with a loan (F.4/AF.4). If the purchaser is a 
resident unit while the financier is not, the good is recorded as imported ((P.71) when 
delivered to the purchaser, who at the same time obtains a loan (F.4/AF.4) from the non­
resident financier. Repayments of principal (F.4) and interest payments (D.41) are treated 
in the same way as for financial leasing involving non-resident units. 
- 385 -

ANNEX3 
INSURANCE 
- 3?é-387-
INTRODUCTION 
1. There are two main types of insurance: social insurance and other insurance. 
Social insurance may be subdivided into 
1) social security schemes of government, 
2) private funded social insurance schemes, and 
3) unfunded social insurance schemes operated by employers. 
Other insurance may be subdivided into 
1) other life insurance, and 
2) other non-life insurance. 
Reinsurance and insurance auxiliaries are treated in separate sections of this annex. These topics 
relate mainly to other insurance, but they may also relate to social insurance. 
1. DEFINITIONS 
a) Social insurance 
2. Social insurance schemes are schemes in which social contributions are paid by employees 
or other individuals, or by employers on behalf of their employees, in order to secure 
entitlement to social insurance benefits for the employees or other contributors, their 
dependents or survivors. Social insurance schemes cover social risks or needs.O) Unlike 
social assistance benefits, social insurance benefits are conditional on participation in a 
scheme. 
3. Social insurance schemes are often organised collectively so that those participating do not 
have to take out individual insurance policies in their own names. However, some social 
insurance schemes may permit, or even require, participants to take out policies in their 
own names. Individual policies are treated as part of a social insurance scheme if they 
cover social risks or needs and if at least one of the following three conditions is satisfied: 
(i) participation in the scheme is compulsory either by law or by the conditions of 
employment, 
(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. 
^ ' See chapter IV, para. 4.83- 4.86., for a definition of social risks or needs. 
-388-
a.l) Social security schemes of government 
4. These schemes are imposed, controlled and financed by government units and cover the 
entire community, or large sections of the community. Social security schemes of 
government may be funded or unfunded. When separate funds can be identified, they 
remain the property of the government and not of the beneficiaries of the schemes. Social 
security schemes' receipts consist mainly of contributions paid by individuals and by 
employers on behalf of their employees, but they may also include transfers from other 
government units. Participation in social security schemes is usually, though not always, 
compulsory. The benefits paid to individuals are not necessarily determined by the 
amounts previously paid in contributions. 
It should be noted that social insurance schemes organised by government units for their 
own employees are not classified as social security schemes, but as private funded or 
unfunded social insurance schemes. 
a.2) Private funded social insurance schemes 
5. There are two categories of such schemes. The first consists of schemes in which the social 
contributions are paid to insurance enterprises or autonomous pension funds that are 
separate institutional units from both the employers and the employees. The insurance 
enterprises or autonomous pension funds are responsible for managing the resulting funds 
and paying the social benefits. The second category consists of schemes in which 
employers maintain special reserves to defray social benefits. These reserves are segregated 
from their other reserves, but they do not constitute separate institutional units from the 
employers and are referred to as non-autonomous pension funds. 
a.3) Unfunded social insurance schemes operated by employers 
6. These are schemes in which employers pay social benefits to their employees, former 
employees or their dependents out of their own resources without creating special reserves 
for the purpose. 
b) Other insurance 
7. Other insurance provides individual institutional units exposed to certain risks with 
financial protection against the consequences of the occurrence of specified events. It is 
also a form of financial intermediation in which funds are collected from policy holders 
and invested in financial or other assets which are held as technical reserves to meet future 
claims arising from the occurrence of the events specified in the insurance policies. 
Other insurance policies held by households may cover the same risks or needs as those 
covered by social insurance schemes. However, other insurance policies held by 
households are distinguished from social insurance policies by the fact that they are taken 
out on the individual households' own initiative and for their own benefit, independently of 
their employers or government. 
189-
b.l) Other life insurance 
8. Holders of other life insurance policies are exclusively households, resident or non­
resident. The policy holder makes regular payments to an insurer in return for which the 
insurer guarantees to provide a benefit at a given date or earlier if the policy holder dies 
beforehand. If the policy holder cancels the policy before the agreed expiration date, the 
policy holder is entitled to a partial benefit from the insurer. A benefit is thus always paid 
to the policy holder or his survivors. Policies that provide a benefit in the case of death 
within a given period but in no other circumstances, usually called term insurance, are not 
regarded as other life insurance, but as other non-life insurance. 
A life insurance claim may be paid as a lump sum or as an annuity. The claim may be fixed 
or may vary to reflect the income earned from the investment of premiums during the 
period for which the policy operates ("with-profit" policies). A special kind of with-profit 
policy is a unit-linked policy, where the claim varies according to the value of a segregated 
fund. 
b.2) Other non-life insurance 
9. All kinds of institutional units may be holders of other non-life insurance policies. Other 
non-life insurance includes term insurance and insurance against every risk other than 
death, e. g. accidents, sickness or fire. Claims are usually paid as lump sums, but may also 
be paid as annuities. A claim is not always paid in respect of an other non-life insurance 
policy. Typically the number of claimants is much smaller than the number of policy 
holders. For an individual policy holder there is no relationship between the premiums paid 
and the claims received, even in the long run. 
c.l) Reinsurance 
10. An insurance enterprise undertaking insurance with policy holders often transfers some of 
the risks incurred to other insurance enterprises. These transactions between insurance 
enterprises are called reinsurance. 
Both life and non-life insurers are involved in reinsurance transactions. Insurance 
enterprises that accept reinsurance may engage in both reinsurance and insurance with 
policy holders, or they may be specialist reinsurers. 
c.2) Insurance auxiliaries 
11. Insurance auxiliaries are units that engage primarily in activities closely related to 
insurance but which do not themselves incur risks. Insurance auxiliaries include in 
particular: 
insurance brokers, 
private non-profit institutions serving insurance enterprises and pension funds, 
units whose main activity is to act as supervisory authorities of insurance enterprises 
and pension funds and of insurance markets. 
590 -
(25) 
11. TREATMENT IN THE ACCOUNTS 
12. For ease of exposition, the following description of the different types of insurance 
concentrates on cases where only resident units are involved. At the end of each section, 
special features for cases involving non-resident units are considered. 
a) Social insurance 
a.l) Social security schemes of government 
13. The output produced by those employed in managing these schemes is part of government 
output, valued at the cost of production. Consequently, no service charge is calculated for 
social security schemes of government. 
Employers' contributions to social security schemes of government (D 121) aie treated as 
part of compensation of employees, shown as payable by the employer's sector in the 
generation of income account and receivable by the household sector in the allocation of 
primary income account. Employers' contributions reappear in the secondary distribution 
of income account as part of employers' actual social contributions (D.6111), payable by 
the household sector and receivable by government. Employees' contributions (D 6112) 
and contributions by self-employed and non-employed persons (D 6113) are also recorded 
in the secondary distribution of income account as payable by the household sector and 
receivable by government. Social security benefits in cash (D.62Î) are shown in the 
secondary distribution of income account as payable by government and receivable by 
households, while social security benefits in kind are shown as item D.6311 and D.6312, 
payable by government and receivable by households in the redistribution of income in 
kind account. 
14. The units managing social security schemes of government are classified in sub-sector 
S.1314 'Social security funds'. The activity classification according to NACE Rev. 1 is 
class 75.30 'Compulsory social security activities'. 
When a resident works for a non-resident employer, the employer's contributions are 
shown as payable by the rest of the world in the external account of primary incomes and 
current transfers. If the employee also participates in a social security scheme run by a non­
resident government, all receivables and payables normally concerning the government 
sector are receivable or payable by the rest of the world, recorded in the external account of 
primary incomes and current transfers. However, in the ESA social transfers in kind occur 
only between resident units. Any benefits from non-resident social security schemes to 
residents are therefore by definition social benefits other than social transfers in kind (D 
62). 
When a non-resident works for a resident employer, the employer's contributions are 
recorded as receivable by the rest of the world in the extemal account of primary incomes 
and current transfers. If the non-resident employee is covered by a resident social security 
scheme, the transactions between the employee and the government sector are recorded in 
the external account of primary incomes and current transfers. By definition, any benefits 
to non-resident employees are social benefits other than social transfers in kind (D 62). 
An example of the flows recorded for social security schemes of government is shown in 
table AI. 1. 
a.2) Private funded social insurance schemes 
15. Schemes financed by autonomous funds are treated differently from schemes financed by 
non-autonomous funds. For autonomous funds, a service charge is calculated as 
total actual contributions earned 
plus total contribution supplements 
(A) 
less benefits due 
less increases (plus decreases) in pension fund reserves. 
16. All four items are recorded exclusive of holding gains or losses. Total contribution 
supplements are identical to property income attributed to policy holders, which is income 
earned by private social insurance funds by investing their technical and pension reserves. 
The ESA regards these reserves as owned by the policy holders, who therefore receive the 
income generated by these reserves. The service charge is recorded as output (P.l) for the 
autonomous funds and as final consumption expenditure (P.3) for the household sector. 
For non-autonomous funds no service charge is calculated. The costs of managing these 
funds are included with the other elements of costs in the employers' production account. 
17. The remaining transactions apply to both autonomous and non-autonomous funds. 
Employers' actual contributions (D 121) are shown as part of compensation of employees, 
payable by the employer's sector in the generation of income account and receivable by 
employee households in the allocation of primary income account. The employer's sector 
may be any institutional sector, including general government and households (as 
employers). Property income attributed to policy holders (part of D.4) is shown in the 
allocation of primary income account as payable by the fund's sector and receivable by the 
household sector. Resident autonomous funds are located in the insurance enterprises and 
pension funds sub-sector (S.125). Non-autonomous funds obviously belong to the same 
sector as the employer in question. NACE Rev. 1 classifies the activity of pension funds in 
class 66.02 'Pension funding'. 
18. Employers' actual contributions are recorded again in the secondary distribution of income 
account as part of D.6111, payable by households and receivable by the fund's sector. 
Employees' contributions (D 6112) and contributions by self-employed and non-employed 
persons (D 6113) are also recorded in the secondary distribution of income account as 
payable by the household sector and receivable by the fund's sector. The contributions 
made by employees and by self-employed and non-employed persons equal the direct 
payments made plus property income attributed to policy holders less service charge (this 
last being zero for non-autonomous funds). Private funded social benefits, including 
pensions, are shown in the secondary distribution of income account as payable by funds 
and receivable by households. By definition, all private funded social benefits are part of 
D.62, social benefits other than social transfers in kind. 
392 
19. The entry in the financial account contains two elements: 
i) prepayments of premiums and reserves against outstanding claims (F.62), which 
comprise any difference between contributions payable and contributions earned and 
between benefits due and benefits payable*1). By convention this element is shown as 
a change (negative if necessary) in funds' liabilities and households' assets. 
ii) net equity of households on pension funds' (F.612), also shown as a change (negative 
if necessary) in funds' liabilities and households' reserves. This element equals 
employers' and employees' contributions in respect of pensions, as recorded in the 
secondary distribution of income account, less pensions payable. 
20. As a consequence of the entry in the financial account, F.612 and F.62 appear in the 
balance sheets of the household sector (as an asset) and the fund's sector (as a liability). 
In the use of disposable income account, an adjustment for change in net equity of 
households on pension funds (D.8) is recorded as receivable by households and payable by 
funds. This entry equals the second element of the entry in the financial account. 
Employers and general government occasionally make extraordinary payments to private 
social insurance funds in order to increase the reserves of these funds. Such payments are 
recorded in the capital account as other capital transfers (D 99), payable by the employer's 
sector or the government sector and receivable by the fund's sector. As social insurance 
funds' reserves are treated as if owned by the household sector, an accompanying 
adjustment between the fund's sector and the household sector is required. This adjustment 
is recorded as other capital transfers (D99), payable by the fund's sector and receivable by 
the household sector. 
21. If a resident employee works for a non-resident employer, the employer's actual 
contributions (D 121) are recorded as part of compensation of employees, payable by the 
rest of the world and receivable by households. When the employer is non-resident, any 
non-autonomous social insurance fund will also be non-resident, while an autonomous 
fund may be resident or non-resident. If the employee is covered by a non-resident fund, all 
flows between the household sector and the fund's sector are shown as transactions 
between the household sector and the rest of the world. The service charge (in the case of 
autonomous, non-resident funds) is shown as imports of services (P.72). The change in net 
equity of insurance technical reserves (F.6) is shown in the financial account of the rest of 
the world, while the remaining flows are shown in the external account of primary incomes 
and current transfers. 
22. If a non-resident employee works for a resident employer, the employer's actual 
contributions (D 121) are part of compensation of employees, payable by the employer's 
sector and receivable by the rest of the world. If the non-resident employee is covered by a 
resident social insurance fund, any service charge is recorded as exports of services (P.62). 
All other flows between fund and employee are shown as between the fund's sector and the 
rest of the world. 
* ) Actual contributions earned, which cover risks incurred during the current period, usually differ from actual contributions payable. The 
latter often cover risks in both the current and subsequent periods. Similarly, benefits due are not always equal lo benefits payable. 
Benefits due to an even occurring in one accounting period may not bccoine payable until a later period. 
- 393 -
Especially when non-resident units are involved, all the requisite data are not always 
available. The calculations of some of the items to be recorded sometimes have to be based 
on assumptions. 
An example of the flows recorded for private funded social insurance schemes is shown in 
table AI.2. 
a.3) Unfunded social insurance schemes operated by employers 
23. Similarly to schemes financed by non-autonomous funds, the costs of managing unfunded 
social insurance schemes are included with the other elements of costs on the employer's 
production account. Thus, no service charge is calculated. 
As unfunded social insurance schemes do not form separate institutional units from the 
employers operating them, all transactions are between the employer's sector and the 
household sector. 
24. The ESA regards an employer operating an unfunded scheme as making an imputed 
contribution to the scheme on behalf of his employees. This imputed social contribution (D 
122) is part of compensation of employees and is shown as payable by the employer in the 
generation of income account and receivable by households in the allocation of primary 
income account. The employer's imputed contribution is shown again in the secondary 
distribution of income account as item D.612, payable by households and receivable by the 
employer. The amount of this contribution should be determined by reference to the 
employer's future obligations to provide benefits. In practice, however, the contribution is 
usually set equal to benefits payable in the current period. 
25. Actual contributions by employees, if any, are shown as part of D.6112, payable by 
households and receivable by the employer's sector. The secondary distribution of income 
account also shows pensions and other benefits as part of D.62, receivable by households 
and payable by the employer. 
Unfunded social insurance schemes obviously belong to the same institutional sector as the 
employer in question. NACE Rev. 1 regards them as an ancillary activity. 
26. If a resident works for a non-resident employer operating an unfunded social insurance 
scheme, all transactions are between the household sector and the rest of the world, 
recorded in the external account of primary incomes and current transfers. If a non-resident 
works for a resident employer operating such a scheme, all transactions are between the 
rest of the world and the employer's sector, shown in the external account of primary 
incomes and current transfers. 
An example of the flows recorded for unfunded social insurance schemes operated by 
employers is shown in table AI.3. 
?94 
b) Other insurance 
27. The output of other insurance services, both life and non-life, is calculated as: 
actual premiums earned 
plus premium supplements 
(B) 
less claims due 
less increases (plus decreases) in actuarial reserves and reserves for with-profits insurance 
28. Actual premiums earned are the actual premiums that cover the risks incurred during the 
current period. Actual premiums earned are usually not equal to actual premiums 
receivable, as the latter often cover risks incurring in both the current and subsequent 
periods. 
Premium supplements are identical to property income attributed to policy holders, which 
is the entire income earned by insurance enterprises by investing their insurance technical 
reserves, excluding any income from insurance enterprises' own funds. Insurance technical 
reserves contain two elements: (i) prepayments of premiums and reserves against 
outstanding claims, arising from the difference between premiums earned and premiums 
receivable and between claims payable and claims due, and (ii) actuarial reserves and 
reserves for with-profits insurance. The latter element applies only to life insurance. 
Insurance technical reserves are usually invested in financial assets which yield income in 
the form of interest or dividends. However, these reserves may also be invested in real 
estate, for example, in which case income is earned as operating surplus. 
29. Claims due cover events that occur within the current period. Frequently, claims do not 
become payable until a later period than when the event giving rise to them occurred. 
Claims due are therefore not equal to claims payable. 
Changes in actuarial reserves and reserves for with-profits insurance consist of allocations 
to actuarial reserves and reserves for with-profits insurance policies to build up the capital 
sums guaranteed under these policies. These reserves relate to life insurance only. 
All four items in equation (B) should be measured excluding holding gains and losses. 
b.l) Other life insurance 
30. Total output of other life insurance is calculated according to equation (B) and shown as 
item P.l in the production account of the insurance enterprises and pension funds sub-
sector. Unless consumed by non-resident households, the output of other life insurance is 
entirely used as final consumption by resident households. The output of life insurance 
services should be distributed between the household sector and the rest of the world in 
proportion to premiums payable by resident and non-resident households. Life insurance 
services consumed by residents are shown as part of households' final consumption 
expenditure (P.3), while services consumed by non-residents are part of exports of services 
(P.62). 
395 
31. Two further transactions are recorded for other life insurance. In the allocation of primary 
income account, property income attributed to policy holders (part of D.4) is shown as 
payable by the insurance enterprises' sector and receivable by households. In the financial 
account, the item net equity of households on life insurance reserves is shown as a change 
(negative if necessary) in households' assets and life insurance enterprises' liabilities. The 
change in the net equity of households is due to all changes in life insurance reserves, both 
technical reserves (F.62) and actuarial reserves and reserves for with-profits insurance 
(F.611). The change in net equity therefore equals actual premiums payable (not earned) 
plus premium supplements less claims receivable (not due) and less service charge. 
32. Because of these entries in the financial account, F.611 and F.62 are also shown in the 
balance sheets of the household sector (as an asset) and the insurer's sector (as a liability). 
As with the service charge, property income attributed to policy holders (= premium 
supplements) should be distributed between the household sector and the rest of the world 
in proportion to premiums. 
Institutionally, life insurance enterprises are classified in S.125 'Insurance corporations and 
pension funds'. The activity classification according to NACE Rev. 1 is class 66.01 'Life 
insurance'. 
33. When a resident life insurance enterprise provides services to non-resident households, the 
service charge is recorded as exports of services (P.62). Property income attributed to 
policy holders is shown as payable by the insurance sector and receivable by the rest of the 
world in the external account of primary incomes and current transfers. The change in net 
equity of non-resident households on life insurance reserves is shown in the financial 
account of the rest of the world as a change in the rest of the world's assets and the 
insurance sector's liabilities. 
When resident households purchase cover from non-resident life insurers, the procedure is 
in principle straightforward: the service charge is recorded as imports of services (P.72), 
attributed property income is shown in the external account of primary incomes and current 
transfers as payable by the rest of the world and receivable by households, and change in 
net equity is shown as a change in households' assets and the rest of the world's liabilities. 
However, the data required to calculate these items are normally not available; usually only 
premiums payable are known. Assumptions are therefore necessary, e. g. applying the 
ratios of service charge to premiums and attributed property income to premiums for 
resident life insurers to the premiums paid by resident households to non-resident life 
insurers. 
An example of the flows recorded for other life insurance is shown in table AI.4. 
b.2) Other non-life insurance 
34. The output (P.l) of other non-life insurance enterprises is calculated according to equation 
(B) and shown in the production account of the insurance enterprises and pension funds 
sub-sector. Non-life insurance services may be used as intermediate consumption (P.2) by 
any resident sector, as final consumption by the household sector when they are part of 
households' final consumption expenditure (P.3), or as exports (P.62). Non-life insurance 
services used as intermediate consumption should be broken down by industry. 
-396 
Equation (B) should be used to estimate the total value of non-life insurance output. The 
output should then be distributed among user sectors and industries in proportion to actual 
premiums payable by each sector. Whereas all resident sectors except households use non-
life insurance services for intermediate consumption only, the household sector uses them 
for both final and intermediate consumption. Households' use of non-life insurance 
services should be broken down into intermediate and final consumption in proportion to 
actual premiums payable. Premiums clearly associated with the productive activity of 
unincorporated enterprises should be regarded as related to intermediate consumption, 
while the remaining premiums paid by households should be considered as being related to 
final consumption. 
35. In the allocation of primary income account, property income attributed to policy holders is 
recorded as part of D.4, payable by the insurance sector and receivable by the policy holder 
sectors. Ideally, property income attributed to policy holders should be distributed among 
sectors in proportion to the reserves attributed to each policy holder sector, but this is 
hardly feasible in practice. Property income attributed to policy holders should therefore be 
distributed in proportion to actual premiums paid by each policy holder sector. 
36. In the secondary distribution of income account net premiums earned are shown as payable 
by all policy holder sectors and receivable by the insurance sector. Net premiums earned 
are calculated as actual premiums earned plus property income attributed to policy holders 
less the value of services consumed. By equation (B), net premiums earned equal claims 
dueOX The secondary distribution of income account also shows claims due as payable by 
the insurance sector and receivable by all policy holder sectors. Both net premiums earned 
and claims due are part of item D.7, Other current transfers. 
Some claims arise because of damage or injuries that the policy holder causes to the 
property or persons of third parties. In such cases, valid claims are recorded as being 
payable directly by the insurance enterprise to the injured parties and not indirectly via the 
policy holder. 
37. In the financial account, net equity of policy holders on non-life insurance reserves is 
shown as a change in assets of policy holder sectors and a change in liabilities of the 
insurance sector. The change in net equity, classified as F.62, is due to prepayments of 
premiums and reserves against outstanding claims. F.62 also appears as a liability in the 
non-life insurer's balance sheet and an asset in policy holders' balance sheets. 
Non-life insurance enterprises belong to NACE Rev. 1 class 66.03, 'Non-life insurance'. 
Their institutional sector is S.125, 'Insurance corporations and pension funds'. 
38. When non-resident units purchase cover from resident non-life insurers, the service charge 
is shown as exports of services ((P.62). Property income attributed to policy holders, net 
premiums earned and claims due are all recorded in the external account of primary 
incomes and current transfers, while net equity of policy holders on non-life insurance 
reserves is shown in the financial account of the rest of the world. In this case, the 
calculations for the rest of the world are no more difficult than those for any resident policy 
holder sector. 
' ' Claims due mean the amounts due to be transfered to claimants. Claims due are thus not the same as "claims incurred" in insurance 
enterprises' accounts, as the latter also include claims management expenses, which in the national accounts are part of either 
intermediate consumption or compensation of employees. 
397-
When resident units are insured by non-resident non-life insurers, the data situation is far 
more difficult; only data on premiums payable and claims receivable are normally 
available. A simplified method, ignoring non-life insurance reserves and their subsequent 
property income, is therefore used: The service charge, which is recorded as imports of 
services (P.72), is calculated as premiums payable less claims receivable*1). Net premiums 
payable are calculated as premiums payable less service charge, thus equalling claims 
receivable. Both net premiums payable and claims receivable are shown in the external 
account of primary incomes and current transfers. 
An example of the flows recorded for other non-life insurance is shown in table AI.5. 
cl) Reinsurance 
39. The ESA records reinsurance transactions in a simpler way than direct insurance 
transactions (the latter meaning transactions between insurance enterprises and ordinary 
policy holders). Instead of showing the flows involved (premiums earned, claims due, 
commissions, etc.) separately, reinsurance transactions are simply shown as a service 
delivered from reinsurer to direct insurer. The value of this service is measured as the 
balance of all flows occurring between reinsurer and direct insurer. 
For resident life and non-life insurance enterprises, reinsurance services produced are 
shown as output (P.l), while reinsurance services received are shown as intermediate 
consumption (P.2). Reinsurance services delivered from resident reinsurers to non-resident 
insurers are shown as exports of services (P.62), while services delivered from non-resident 
reinsurers to resident insurers are recorded as imports of services (P.72). 
40. For resident insurance enterprises data on output and intermediate consumption of 
reinsurance services can be obtained from insurance statistics. Calculating imports and 
exports of reinsurance services may be more difficult, depending mainly on the availability 
and quality of balance of payments statistics. However, the external balance of reinsurance 
services can easily be derived from insurance statistics. 
Reinsurance transactions between resident insurance enterprises are often consolidated. 
However, in order to be in accordance with the EC insurance directives, the ESA 
recommends reinsurance services to be recorded without consolidation. Whether or not 
reinsurance services between residents are consolidated affects the level of output of 
insurance services, but balancing items such as value added, operating surplus and saving 
are not affected. 
c.2) Insurance auxiliaries 
41. The output of auxiliary insurance services is valued on the basis of the fees or 
commissions charged. In the case of non-profit institutions operating as business 
associations for insurance enterprises and pension funds, their output is valued by the 
amounts of subscriptions paid by the members of the associations. This output is used as 
intermediate consumption by the members of the associations. 
Institutional units principally engaged in auxiliary insurance activities are classified in 
S.124, 'Financial auxiliaries'. The activity classification according to NACE Rev. 1 is class 
67.20, 'Activities auxiliary to insurance and pension funding'. 
(' ) If available, premiums earned and claims due should be used rather than premiums payable and claims receivable. 
398-
INSURANCE: 
NUMERICAL EXAMPLE 
399-
o o AM Social security schemes of Government 
Uses 
S.l S.15 S.14 S.13 S.12 S.11 
Corresponding 
entries of toe 
Goods Rast 
and of the Total 
Servie*)* worfct eco-
Total account a&ftihl. ' nomy NPISHs holds ment rations rations Non-
Flnan- finan-
General cial cial 
House- govern- corpo- corpo-
155 
155 
ST 
"232" 
78 
65 155 
H 155 
mm^ .•••••,„,^.l ^ 
/fcUHnmim IT 
™T SST 
•HlH)«M*H»H ' 
78 
65 45 
155 
-75" 
^ST 
"232" 
78 
65 Transactions and balancing Items 
Generation of income account 
98 D.12 Employers, social security contributions Resources 
S.11 S.12 S.13 S.14 S.15 S.l 
Non-
finan- Finan­
cial cial General Total 
corpo- corpo- govern- House- eco-
ratlons rations ment holds NPISHs nomy tprreipOnçKnff 
ertVtesqf.thg 
Attr <$6ods 
ottllte ôrW 
vttxid ««fates. 
icfcWnJ. accoudt Total 
Distribution of primary income account 
D.12 Employers' social security contributions 
Secondary distribution of income account 
Employers' social security contributions 
tmployees" social security contributions 
D.6113 social contributions by self-employed and 
non-employed persons 
D.621 social security benefits in cash 
Hedistnbution of income in kind account 
D.6311 Social security benefits in kind, reimbursements 
D.6312 Other social security benefits in kind 155 155 
~ST 
"532" 
78 
65 155 
155 
7T 
—3T 0 
minimum -u* 
0 
T • it.Hij.li. ++• 
lillli>»WII' +**4 
T3T ™$ 1111111 111 11 w 
78 
65 155 
155 
ST 
"232" 
78 
65 
Al.2 Private funded social insurance schemes 
Uses 
O 
_ .* 
I S.1 S.15 S.14 S.13 S.12 S.11 
CMr*i{J6rtcfint} 
«rate* off!» 
Goods ftMt 
3WJ of the- Total 
çerviceç wçrtrf eco-
Total aCûôurtt SctHJurrt nomy NPISHs holds ment rations rations Non-
Finan- finan-
General cial cial 
House- govern- corpo- corpo-
im n 28 0 14 Transactions and balancing items 
External account 
P.6 Exports of goods and services 
P.7 Imports of goods and services 
P.l Production account 
Output 
Generation of income account 
Employers' actual social contributions to 
private funded schemes 
A/location of primary income account 
Employers' actual social contributions to 
private funded schemes 
D.44 Property income attributable to insurance 
policyholders 
Secondary distribution of income account 
Employers' actual social contributions to 
private funded schemes 
Employees' net social contributions in 
Private funded benefits * 
Use of disposable income account 
P.3 Final consumption expenditure 
D.8 Adjustment for the change in net equity of 
households in pension funds 
Financial account 
F.612 Net equity of households in pension fund 
reserves 
F.62 Prepayments of premiums and reserves 
against outstansing claims Resources 
S.11 S.12 S.13 S.14 
Non-
finan- Finan­
cial cial General 
corpo- corpo- govern- House-
rations rations ment holds 
0 0 
0 0 
29 S,1 
Çttrétyéhdlty 
fteat GàùVt 
Total «rtftB «nd 
eco- vyprfa services-
NPISHs nomy à&àtitib &&àm Total 
AI.3 Unfunded schemes operated by employers 
Uses 
19 
19 
is~ Corr es ponding 
entries of the 
Goods 
and 
sérvfctH 
account Rast 
of thé 
world 
account. S.1 
Total 
eco­
nomy S.15 S.14 S.13 S.12 
Finan-
General cial 
House-
NPISHs holds govem­
ment corpo­
rations S.11 
Non-
finan­
cial 
corpo­
rations 
19 12 
llES 19 
13" 19 
"IT Transactions and balancing Items 
T" T2~ D.623 Unfunded employee social benefits Resources 
S.11 S.12 S.13 S.14 S.15 S.1 
Non-
fman- Finan 
cial cial 
corpo- corpo 
rations rations ment General 
govern- House-Total 
eco-
holds NPISHs nomy torraspôfidtng 
ertoeSpith* 
Rest Goods 
«fths ahtt 
viotia *aiVicéS 
aûeount accdunt Total 
Generation of income account 
D.122 Employers, imputed social contributions 
Distribution of primary income account 
D.122 Employers, imputed social contributions 
Secondary distribution of income account 
D.612 Imputed social contributions 12 1 19 19 
wvtviVii^v^'i'iïM'i'i'i'i't'H'fo'i 
5 0 
w 1 19 
w fiii1ifir:i:':fi[i[fiif:,:[ifri':':i:':':':'i':':t 19 
19 
15" 
o 
3 Ai.4 Other life insurance 
Uses 
Correspond trt^ 
entries of-fta S.15 S.14 S.13 S.12 S.11 
SôOtfs Rest 
and otthe Total 
Services- wOrltt eco-
Total account àctîôunt nomy NPISHs holds ment rations rations Nort-
Finan- finan-
General cial cial 
House- govern- corpo- corpo-
Transactions and balancing items 
Production account 
P. I Output Resources 
S.11 
Non-
finan-
cial 
corpo-S.12 S.13 S.14 S.15 S.l 
Çofrespan&hg 
entries gfthg 
Finan­
cial General 
corpo- govern- House-Total 
eco-Rfctt 
Wtttt 
vttxfa Goods 
«HVitéa 
rations rations ment holds NPISHs nomy account *ct!6oh( Total 
External account 
P.6 Exports of goods and services 
P.7 Imports of goods and services 
>;;$& 22 Distribution of primary income account 
D.44 Property income attributable to insurance 
policyholders 
Use of disposable income account 
P.3 Final consumption expenditure 
Financial account 
F.611 Net equity of households in life insurance 
reserves 'J.1.1.1.1.' ".inn I :•:•: 11 mi in 1111 
22 .' •l.l.l.'.|.1.1 .'•'•'•' .'.'.w.'.'.'.'.'.'.'.'.'.' 
iMlCM|iff(i'uii::::i'i'''i'iti'i'i'M' 
^aata^iimiii&ii^iaMm^S&saBBaama 
AI.5 Other non-life Insurance 
Uses Resources 
S.l S.15 S.14 S.13 S.12 S.11 S.13 S.14 S.15 S.l 
I 
o 
I Coroj»pondfnp; 
frmng$ of <hg 
Oot>d> H*tt 
and of <he Total 
MMCM vvomf «co-
Total account account nomy NPISHs holds ment rations rations Non-
Finan- flnan-
Qeneral cial cial 
House- govern- corpo- corpo-
Transactiont and balancing Items 
External account 
P.6 Exports of goods and services 
P.7 Imports of goods and services 
Production account 
P. I Output 
P.2 Intermediate consumption 
Distribution of primary income account 
D.44 Property income attributable to insurance 
policyholders 
Secondary distribution of income account 
D.7t Net non-life insurance premiums 
D.72 Non-life insurance claims 
Use of disposable Income account 
P.3 Final consumption expenditure 
Financial account 
F.62 Prepayment of premiums and reserves 
against outstanding claims Non-
tinan- Finan­
cial cial 
corpo- corpo­
rations rations General 
govern- House­
man! holds Total 
eco­
nomy CorrtapcwWlfig: 
fl«« <JiN>d* 
ofttw and 
account accourt Total 
fl 
ANNEX 4 
CLASSIFICATIONS AND ACCOUNTS 
405 

PART I. 
CLASSIFICATIONS 
A. 
S.l 
S.ll 
S.11001 
S.l 1002 
S.l 1003 
S.12 
S.121 
S.122 
S.12201 
S.l 2202 
S. 12203 
S.123 
S.12301 
S.12302 
S.12303 
S.124 
S.l 2401 
S.12402 
S.l 2403 
S.125 
S.1250Ï 
S.12502 
S.12503 
S.13 
S.1311 
S.1312 
S.1313 
S.1314 Classification of institutional sectors (S) 
Total economy 
Non-financial corporations 
Public non-financial corporations 
National private non-financial corporations 
Foreign controlled non-financial corporations 
Financial corporations 
The central bank 
Other monetary financial institutions 
Public 
National private 
Foreign controlled 
Other financial intermediaries, except insurance corporations and pension funds 
Public 
National private 
Foreign controlled 
Financial auxiliaries 
Public 
National private 
Foreign controlled 
Insurance corporations and pension funds 
Public 
National private 
Foreign controlled 
General government 
Central government 
State government 
Local government 
Social security funds 
Vo£ 407 
5.14 Households 
S.141 + S.l42 Employers (including own-account workers) 
S.143 Employees 
S. 144 Recipients of property and transfer incomes 
S. 1441 Recipients of property income 
S. 1442 Recipients of pensions 
S. 1443 Recipients of other transfer incomes 
S. 145 Other households 
5.15 Non-profit institutions serving households 
S.2 Rest of the world 
S. 21 The European Union 
S .211 The member countries of the EU 
S .212 The institutions of the EU 
S.22 Third countries and international organizations 
-408 
B. Classification of transactions and other flows 
1. Transactions in goods and services (products) (P) 
P.l Output 
P. 11 Market output 
P.l 19 Adjustment FISIM 
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.5 111 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-financial non-produced assets 
P.5131 Major improvements to non-financial non-produced assets 
P.5132 Costs of ownership transfer on non-financial non-produced 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 
-409 
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 import duties 
D.214 Taxes on products, except VAT and import taxes 
D.29 Other taxes on production 
D.3 Subsidies 
D.31 Subsidies on products 
D. 311 Import 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 Rents 
D.5 Current taxes on income, wealth, etc, 
D.51 Taxes on income 
D.59 Other current taxes 
4 1 0 
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 
D.6113 Social contributions by self- and non-employed 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 
-41 
3. Transactions in financial instruments (F) 
(Net acquisition of financial assets/net incurrence of liabilities) 
F.l Monetary gold and special drawing rights (SDRs) 
F.ll Monetary gold 
F.12 Special drawing rights (SDRs) 
F.2 Currency and deposits 
F.21 Currency 
F.22 Transferable deposits 
F.29 Other deposits 
F.3 Securities other than shares 
F.33 Securities other than shares, excluding financial derivatives 
F.331 Short-term - Securities other than shares, excluding financial derivatives 
F.332 Long-term - Securities other than shares, excluding financial derivatives 
F.34 Financial derivatives 
F.4 Loansa 
F.41 Short-term - Loans 
F.42 Long-term - Loans 
F.5 Shares and other equitya 
F.51 Shares and other equity, excluding mutual funds shares 
F.511 Quoted shares, excluding mutual funds shares 
F.512 Unquoted shares, excluding mutual funds shares 
F.513 Other equity 
F.52 Mutual funds shares 
F.6 Insurance technical reserves 
F.61 Net equity of households in life insurance reserves and in pension funds reserves 
F.611 Net equity of households in life insurance reserves 
F.612 Net equity of households in pension funds reserves 
F.62 Prepayment of insurance premiums and reserves for outstanding claims 
F.7 Other accounts receivable/payable3 
F.71 Trade credits and advances 
F.79 Other accounts receivable/payable, except trade credits and advances 
Memo item: F.m Direct foreign investment 
412 
4. Other accumulation entries (K) 
K.l Consumption of fixed capital 
K.2 Acquisitions less disposals of non-financial non-produced 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 economic 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 
-413-
C. Classification of balancing items" (B) 
B.l Value added / B.l 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 net worth 
c d 
B.10.1 Changes in net worth due to saving and capital transfers ' 
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.l 1 External balance of goods and services 
B.l2 Current external balance 
B.90 Net worth 
BF.90 Net financial assets 
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 of the item plus the letter "gH. Similarly, the letter "n" attached to a code indicates net value. 
"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-and 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 
414 
D. Classification of assets (A) 
1. Non-financial assets (AN) 
AN.l. Produced assets 
AN. 11 Fixed assets 
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 
-415-
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.l Monetary gold and drawing rights (SDRs) 
AF. 11 Monetary gold 
AF. 12 Special drawing rights (SDRs) 
AF.2 Currency and deposits 
AF.21 Currency 
AF.22 Transferable deposits 
AF.29 Other deposits 
AF.3 Securities other than shares 
AF.33 Securities other than shares, excluding financial derivatives 
AF.331 Short-term - Securities other than shares, excluding financial derivatives 
AF.332 Long-term - Securities other than shares, excluding financial derivatives 
AF.34 Financial derivatives 
AF.4 Loanse 
AF.41 Short-term - Loans 
AF.42 Long-term - Loans 
AF.5 Shares and other equitye 
AF.51 Shares and other equity, excluding mutual funds shares 
AF.511 Quoted shares, excluding mutual funds shares 
AF.512 Unquoted shares, excluding mutual funds shares 
AF .513 Other equity 
AF.52 Mutual funds shares 
Memorandum item AF.m: direct foreign investment 
416 
AF.6 Insurance technical reserves 
AF.61 Net equity of households in life insurance reserves and in pension funds reserves 
AF.611 Net equity of households in life insurance reserves 
AF.612 Net equity of households in pension funds reserves 
AF.62 Prepayment of insurance premiums and reserves for outstanding claims 
AF.7 Other accounts receivable/payable 
AF.71 Trade credits and advances 
AF.79 Other accounts receivable/payable, except trade credits and advances 
417-
E. Regrouping and coding of Industries (A), Products (P) and investments 
(Fixed capital formation) (Pi) 
A60 
Code Description Reference 
NACE Rev.1 
01 
02 
05 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
40 
41 
45 
50 Agriculture, hunting and related service activities 
Forestry, logging and related service activities 
Fishing, operation offish hatcheries and fish farms; service activities 
incidental to fishing 
Mining of coal and lignite; extraction of peat 
Extraction of crude petroleum and natural gas; service activities 
incidental to oil and gas extraction excluding surveying 
Mining of uranium and thorium ores 
Mining of metal ores 
Other mining and quarrying 
Manufacture of food products and beverages 
Manufacture of tobacco products 
Manufacture of textiles 
Manufacture of wearing apparel; dressing and dyeing of fur 
Tanning and dressing of leather; manufacture of luggage, handbags, 
saddlery, harness and footwear 
Manufacture of wood and of products of wood and cork, except 
furniture; manufacture of articles of straw and plaiting materials 
Manufacture of pulp, paper and paper products 
Publishing, printing and reproduction of recorded media 
Manufacture of coke, refined petroleum products and nuclear fuel 
Manufacture of chemicals and chemical products 
Manufacture of rubber and plastic products 
Manufacture of other non-metallic mineral products 
Manufacture of basic metals 
Manufacture of fabricated metal products, except machinery and 
equipment 
Manufacture of machinery and equipment n.E.C. 
Manufacture of office machinery and computers 
Manufacture of electrical machinery and apparatus n.E.C. 
Manufacture of radio, television and communication equipment and 
apparatus 
Manufacture of medical, precision and optical instruments, watches 
and clocks 
Manufacture of motor vehicles, trailers and semi-trailers 
Manufacture of other transport equipment 
Manufacture of furniture; manufacturing n.E.C. 
Recycling 
Electricity, gas, steam and hot water supply 
Collection, purification and distribution of water 
Construction 
Sale, maintenance and repair of motor vehicles and motorcycles; retail 
sale of automotive fuel 01 
02 
05 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
40 
41 
45 
50 
-418 
A60 
Code 
51 
52 
55 
60 
61 
62 
63 
64 
65 
66 
67 
70 
71 
72 
73 
74 
75 
80 
85 
90 
91 
92 
93 
95 
99 Description Reference 
NACE Rev.1 
Wholesale trade and commission trade, except of motor vehicles and 51 
motorcycles 
Retail trade, except of motor vehicles and motorcycles; repair of 52 
personal and household goods 
Hotels and restaurants 55 
Land transport; transport via pipelines 60 
Water transport 61 
Air transport 62 
Supporting and auxiliary transport activities; activities of travel 63 
agencies 
Post and telecommunications 64 
Financial intermediation, except insurance and pension funding 65 
Insurance and pension funding, except compulsory social security 66 
Activities auxiliary to financial intermediation 67 
Real estate activities 70 
Renting of machinery and equipment without operator and of personal 71 
and household goods 
Computer and related activities 72 
Research and development 73 
Other business activities 74 
Public administration and defence; compulsory social security 75 
Education 80 
Health and social work 85 
Sewage and refuse disposal, sanitation and similar activities 90 
Activities of membership organization n.E.C. 91 
Recreational, cultural and sporting activities 92 
Other service activities 93 
Private households with employed persons 95 
Extra-territorial organizations and bodies 99 
4 19 
A31 
Code 
AA 
BB 
CA 
CB 
DA 
DB 
DC 
DD 
DE 
DF 
DG 
DH 
Dl 
DJ 
DK 
DL 
DM 
DN 
EE 
FF 
GG 
HH 
II 
JJ 
KK 
LL 
MM 
NN 
00 
PP 
QQ Description 
Agriculture, hunting and forestry 
Fishing 
Mining and quarrying of energy producing materials 
Mining and quarrying except energy producing materials 
Manufacture of food products ; beverages and tobacco 
Manufacture of textiles and textile products 
Manufacture of leather and leather products 
Manufacture of wood and wood products 
Manufacture of pulp, paper and paper products; publishing and printing 
Manufacture of coke, refined petroleum products and nuclear fuel 
Manufacture of chemicals, chemical products and man-made fibres 
Manufacture of rubber and plastic products 
Manufacture of other non-metallic mineral products 
Manufacture of basic metals and fabricated metal products 
Manufacture of machinery and equipment n.E.C. 
Manufacture of electrical and optical equipment 
Manufacture of transport equipment 
Manufacturing n.E.C. 
Electricity, gas and water supply 
Construction 
Wholesale and retail trade; repair of motor vehicles, motorcycles and 
personal and household goods 
Hotels and restaurants 
Transport, storage and communication 
Financial intermediation 
Real estate, renting and business activities 
Public administration and defence; compulsory social security 
Education 
Health and social work 
Other community, social and personal service activities 
Private households with employed persons 
Extra-territorial organizations and bodies Reference 
NACE Rev.1 
A 
B 
CA 
CB 
DA 
DB 
DC 
DD 
DE 
DF 
DG 
DH 
Dl 
DJ 
DK 
DL 
DM 
DN 
E 
F 
G 
H 
I 
J 
K 
L 
M 
N 
O 
P 
Q 
420 
A17 
Code Description Reference 
NACE Rev.1 
A Agriculture, hunting and forestry A 
B Fishing B 
C Mining and quarrying C 
D Manufacturing D 
E Electricity, gas and water supply E 
F Construction F 
G Wholesale and retail trade; repair of motor vehicles, motorcycles and G 
personal and household goods 
H Hotels and restaurants H 
I Transport, storage and communication I 
J Financial intermediation J 
K Real estate, renting and business activities K 
L Public administration and defence; compulsory social security L 
M Education M 
N Health and social work N 
O Other community, social and personal service activities O 
P Private households with employed persons P 
Q Extra-territorial organizations and bodies Q 
421 
P60 
Code Description Reference 
CPA 
01 
02 
05 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
22 
21 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
40 
41 
45 
50 Products of agriculture, hunting and related services 
Products of forestry, logging and related services 
Fish and other fishing products, services incidental to fishing 
Coal and lignite; peat 
Crude petroleum and natural gas; services incidental to oil and gas 
extraction excluding surveying 
Uranium and thorium ores 
Metal ores 
Other mining and quarrying products 
Food products and beverages 
Tobacco products 
Textiles 
Wearing apparel; furs 
Leather and leather products 
Wood and products of wood and cork (except furniture), articles of 
straw and plaiting materials 
Printed matter and recorded media 
Pulp, paper and paper products 
Coke, refined petroleum products and nuclear fuel 
Chemicals, chemical products and man-made fibres 
Rubber and plastic products 
Other non-metallic mineral products 
Basic metals 
Fabricated metal products, except machinery and equipment 
Machinery and equipment n.e.c. 
Office machinery and computers 
Electrical machinery and apparatus n.e.c. 
Radio, television and communication equipment and apparatus 
Medical, precision and optical instruments, watches and clocks 
Motor vehicles, trailers and semi-trailers 
Other transport equipment 
Furniture; other manufactured goods n.e.c. 
Recovered secondary raw materials 
Electrical energy, gas, steam and hot water 
Collected and purified water, distribution services of water 
Construction work 
Trade, maintenance and repair services of motor vehicles and 
motorcycles; retail trade services of automotive fuel 01 
02 
05 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
22 
21 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
40 
41 
45 
50 
422 -
(27) 
P60 
Code 
51 
52 
55 
60 
61 
62 
63 
64 
65 
66 
67 
70 
71 
72 
73 
74 
75 
80 
85 
90 
91 
92 
93 
95 
99 Description Reference 
CPA 
Wholesale trade and commission trade services, except of motor 51 
vehicles and motorcycles 
Retail trade services, except of motor vehicles and motorcycles; repair 52 
services of personal and household goods 
Hotel and restaurant services 55 
Land transport and transport via pipeline services 60 
Water transport services 61 
Air transport services 62 
Supporting and auxiliary transport services; travel agency services 63 
Post and telecommunication services 64 
Financial intermediation services, except insurance and pension , 65 
funding services 
Insurance and pension funding services, except compulsory social 66 
security services 
Services auxiliary to financial intermediation 67 
Real estate services 70 
Renting services of machinery and equipment without operator and of 71 
personal and household goods 
Computer and related services 72 
Research and development services 73 
Other business services 74 
Public administration and defence services; compulsory social security 75 
services 
Education services 80 
Health and social work services 85 
Sewage and refuse disposal services, sanitation and similar services 90 
Membership organization services n.e.c. 91 
Recreational, cultural and sporting services 92 
Other services 93 
Private households with employed persons 95 
Services provided by extra-territorial organizations and bodies 99 
423-
P31 
Code 
AA 
BB 
CA 
CB 
DA 
DB 
DC 
DD 
DE 
DF 
DG 
DH 
Dl 
DJ 
DK 
DL 
DM 
DN 
EE 
FF 
GG 
HH 
II 
JJ 
KK 
LL 
MM 
NN 
OO 
PP 
QQ Description Reference 
CPA 
Products of agriculture, hunting and forestry A 
Fish B 
Coal and lignite; peat; crude petroleum and natural gas; uranium and CA 
thorium 
Metal ores and other mining and quarrying products CB 
Food products, beverages and tobacco DA 
Textiles and textile products DB 
Leather and leather products DC 
Wood and wood products DD 
Pulp, paper and paper products; recorded media; printing services DE 
Coke, refined petroleum products and nuclear fuel DF 
Chemicals, chemical products and man-made fibres DG 
Rubber and plastic products DH 
Other non metallic mineral products Dl 
Basic metals and fabricated metal products DJ 
Machinery and equipment n.e.c. DK 
Electrical and optical equipment DL 
Transport equipment DM 
Other manufactured goods n.e.c. DN 
Electrical energy, gas, steam and hot water E 
Construction work F 
Wholesale and retail trade services; repair services of motor vehicles, G 
motorcycles and personal and household goods 
Hotel and restaurant services H 
Transport, storage and communication services I 
Financial intermediation services J 
Real estate, renting and business services K 
Public administration and defence services, compulsory social security L 
services 
Education services M 
Health and social services N 
Other community, social and personal services O 
Private households with employed persons P 
Services provided by extra-territorial organizations and bodies Q 
424 
P17 
Code Description Reference 
CPA 
A Products of agriculture, hunting and forestry A 
B Fish B 
C Products from mining and quarrying C 
D Manufactured products D 
E Electrical energy, gas, steam and hot water E 
F Construction work F 
G Wholesale and retail trade services; repair services of motor vehicles, G 
motorcycles and personal and household goods 
H Hotel and restaurant services H 
I Transport, storage and communication services I 
J Financial intermediation services J 
K Real estate, renting and business services K 
L Public administration and defence services, compulsory social security L 
services 
M Education services M 
N Health and social services N 
O Other community, social and personal services O 
P Private households with employed persons P 
Q Services provided by extra-territorial organisations and bodies Q 
-425 
I A6 ========= = _ 
Code Description Preference 
NACE Rev.1 
1 Agriculture, hunting and forestry; fishing and operation of A + B 
fish hatcheries and fish farms 
2 Industry, including energy C + D + E 
3 Construction F 
4 Wholesale and retail trade, repair of motor vehicles and G + H + I 
household goods, hotels and restaurants; transport and 
communications 
5 Financial, real-estate, renting and business activities J + K 
6 Other service activities L to P 
I A3 
Code Description Preference 
NACE Rev.1 
1 Agriculture, hunting and forestry; fishing and operation of A + B 
fish hatcheries and fish farms 
2 Industry, including energy and construction C + D + E + F 
3 Service activities G to P 
426 
I ~~ P6 
Code Description Preference 
CPA 
1 Products of agriculture, forestry, fisheries and aquaculture A + B 
2 Products from mining and quarrying, manufactured C + D + E 
products and energy products 
3 Construction work F 
4 Wholesale and retail trade, repair services, hotel and G + H + I 
restaurant services, transport and communication services 
5 Financial intermediation services, real estate, renting and J + K 
business services 
6 Other services L to P 
r P3 ===—-
Code Description Preference 
CPA 
1 Products of agriculture, forestry, fisheries and aquaculture A + B 
2 Products from mining and quarrying, manufactured C + D + E + F 
products, energy products and construction work 
3 Services G to P 
427-
I Pi6 I 
Code Description Preference 
CPA 
1 Products of agriculture, forestry, fisheries and aquaculture 01 +02 + 05 
Equipment : 
2 Metal products and machinery 28 to 33 + 36 
3 Transport equipment 34 + 35 
Construction: 45 
4 of which housing 
. 5 of which other constructions 
6 Other products Remaining 
divisions 
I = === === Pi3 I 
Code Description Preference 
CPA 
1 Metal products and machinery, transport equipment 28 to 36 
2 Construction 45 
3 Other products Remaining 
divisions 
-428-
F. 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 
-429-
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. 
430 
G. Classification of the functions of the government (COFOG) 
01 General public services 
01.1 Executive and legislative organs, financial and fiscal affairs, extemal 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 para-medical practitioners 
05.3 Public health affairs and services 
05.4 Medicaments, prothèses, 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. 
431 -
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 
432-
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 
433-
PART II. 
ACCOUNTS 
- lr/iy -435 
Table A.1. Account 0: Goods and services account 
Resources 
P.l Output 3595 
P.l I Market output 3048 
P.12 Output for own use 171 
P.13 Other non-market output 376 
D. 21 Taxes on products 141 
D.31 Subsidies on products 
P.7 Imports of goods and services 497 
P.71 Imports of goods 392 
P.72 Imports of services 105 Uses 
P.2 Intermediate consumption 1904 
P.3/P.4 Final consumption expenditure/Actual 
final consumption 1371 
P.31/P.41 
P.32/P.42 
P.51 
P.511 
P.5111 
P.5112 
P.5U3 
P.512 
PJ121 
P.5122 
P.5123 
P.513 
P.5131 
P.5132 
P.53 individual consumption expenditure/Actual 
individual consumption 
Collective consumption expenditure/Actual 
collective consumption 
Gross fixed capital formation 
Acquisitions less disposals of tangible fixed assets 
Acquisitions of new tangible fixed assets 
Acquisitions of existing tangible fixed assets 
Disposals of existing tangible fixed assets 
Acquisitions less disposals of intangible fixed assets 
Acquisitions of new intangible fixed assets 
Acquisitions of existing intangible fixed assets 
Disposals of existing intangible fixed assets 
Additions to the value of non-produced 
non-financial assets 
Major improvements to non-produced 
non-financial assets 
Costs of ownership transfer on non-produced 
non-financial assets 
P.52 Changes in inventories 
Acquisitions less disposals of valuables 1215 
156 
376 
303 
305 
53 
22 
28 
P.6 Exports of goods and services 536 
P.61 Exports of goods 462 
P.62 Exports of services 74 
^£ - 437 -
Table A.2. Full sequence of accounts for the total economy 
I: Production account 
Uses 
P.2 Intermediate consuniption 
B.l*g Gross domestic product 
K_ 1 Consumption of fixed capital 
B.l*n Net domestic product 1824 
222 Resources 
1904 P.l Output 
P.ll Market output 3048 
P.12 Output for own final use 171 
P.13 Other non-market output 
D.21-D.31 Taxes less subsidies on products 376 
133 
1602 
II. Distribution and use of income accounts 
11.1 : Primary distribution of income account 
//. 1.1: Generation of income account 
Uses 
P. 1 Compensation of employees 
P.ll Wages and salaries 
P. 12 Employers' social contributions 
P.12I 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 
P.2121 Import duties 
D.2122 Taxes on imports excluding VAT and duties 
D.29 Other taxes on production 
P.3 Subsidies 
P.31 Subsidies on products 
P.311 Import subsidies 
P.319 Other subsidies on products Resources 
762 B.1* Domestic product 1602 
569 
193 
174 
19 
235 
141 
121 
P.214 Taxes on products except VAT and import taxes " 3_ 
94 
44 
D.39 Other subsidies on production -36 
B.2 Operating surplus 217 
B.3 Mixed income 432 
- 438 -
Table A.2. Full sequence of accounts for the total economy [cont.] 
//. 1.2: Allocation of primary income account 
Uses 
D.4 Property income 
D.41 Interest 
D.42 Ksmbuted irexanacof cosTxraUons 
D.421 Dividends 206 
84 
D.422 Withdrawals from income of quasi-corporations 
D.43 Reinvested earnings on direct foreign investment 
D.44 Property income attributed to insurance policyholders 
D.45 Rent 60 
24 
0 
25 
65 Resources 
380 B.2 Operating surplus 
B.3 
DU 
D.12 
D.121 
D.122 Mixed income 
D.1 Compensation of employees 
Wages and salaries 
Employers' social contributions 
Employers' actual social contributions 
Employers' imputed social contributions 217 
432 
766 
573 
193 
174 
D.2 Taxes on production and imports 235 
D.21 Taxes on products 141 
D.2U Value added type taxes (VAT) 121 
D.212 Taxes and duties on imports excluding VAT 
D.2121 Import duties 
D.2122 Taxes on imports excluding VAT and duties 
D.214 Taxes on products except VAT and import taxes 
D.29 Other taxes on production 94 
D.3 Subsidies -44 
D.31 Subsidies on products 
D.311 Import subsidies 
D.319 Other subsidies on products 
D.39 Other subsidies on production 36 
B.5* National income 1633 D.4 Property income 
D.41 
P.l 19 
D.42 
D.421 
D.422 
D.43 
D.44 
D.45 Interest 
Adjustment for FISIM 
Distributed income of corporations 
Dividends 
Withdrawals from income of quasi-corporations 
Reinvested earnings on direct foreign investment 
Property income attributed to insurance policyholders 
Rent 407 
200 
103 
46 
25 
65 
- 439 -
Table A.2. Full sequence of accounts for the total economy [cont.] 
11.1.2.1 : Entrepreneurial income account 
Uses 
D.4 Property income 
D.41 
D.45 Interest 
Rent 
B.4 Entrepreneurial income 147 
D.44 Property income attributed to insurance policyholders 25 
45 
679 Resources 
217 B.2 Operating surplus 
B.3 Mixed income 
D.4 Property income 
D.41 Interest 
P. 119 Adjustment for FISIM 
D.42 Distributed income of corporations 
D.421 Dividends 
D.45 Rent 217 
432 
P.422 Withdrawals from income of quasi-corporations 
D.43 Reinvested earnings on direct foreign investment 
D.44 Property income attributed to insurance policyholders 247 
150 
0_ 
37 
37 
0_ 
11 
5_ 
44 
11.1.2.2: Allocation of other primary income account 
Uses 
D.4 Property income 
D.41 Interest 
P.42 Distributed income of corporations 
D.421 Dividends 
D.422 Withdrawals from income of Cjutui-corporauons 
D.43 Reinvested earnings on direct foreign investment 
D.4S Rent 
B.5* National income 163 
59 
84 
60 
24 
0_ 
20 
1633 Resources 
B.4 Entrepreneurial income 
P. 1 Compensation of employees 
P. 11 Wages and salaries 
P. 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 
P.2121 Import duties 
D.2122 Taxes on imports excluding VAT and duties 
D.29 Other taxes on production 
P.3 Subsidies 
P. 31 Subsidies on products 
P.311 Import subsidies 
P.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.45 Rent 679 
766 
573 
193 
174 
19 
D.214 Taxes on products except VAT and import taxes 235 
141 
121 
17 
17 
0_ 
3_ 
94 
-36 
D.43 Reinvested earnings on direct foreign investment 
D.44 Property income attributed to insurance policyholders 160 
50 
66 
9_ 
57 
3_ 
20 
21 
440 
(28) 
Table A.2. Full sequence of accounts for the total economy [cont.] 
11.2: Secondary distribution of income account 
Uses 
D.5 Current taxes on income, wealth, etc. 
D.51 Taxes on income 
D.59 Other current taxes 
D.61 Social contributions 
D.611 Actual social contributions 
D.6111 Employers' actual social contributions 
D.61 HI 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 
D.6113 Social contributions by self- and 
non-employed 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.7 Other current transfers 
D.7I Net non-life insurance premiums 
D.72 Non-life insurance claims 
D. 73 Current transfers within general govemment 
D.74 Current international cooperation 
D.75 Miscellaneous current transfers 
B.6 Disposable income 212_ 
203 
9 
322 
303 
174 
160 
14 
97 
85 
12 
332 
232 
19 
269 
43 
45 
96 
54 
1604 Resources 
B.5* National income 
D.5 Current taxes on income, wealth, etc. 
D.51 Taxes on income 
D.59 Other current taxes 
D.61 Social contributions 
D.611 Actual social contributions 
D.6111 Employers' actual social contributions 
D.61 HI Compulsory employers' actual social contributions 
D.61112 Voluntary employers' actual social contributions 
D.6112 Employees' social contributions 
D.61121 Compulsory employers' actual social contributions 
D.61122 Voluntary employers' actual 
social contributions 
D.6113 Social contributions by self- and 
non-employed 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 
52 D.623 Unfunded employee «octal benefits 
D.624 Social assistance benefits in cash 
D.7 Other current transfers 
D.71 Net non-life insurance premiums 
D.72 Non-life insurance claims 
D.73 Current transfers within general govemment 
D.74 Current international cooperation 
D.75 Miscellaneous current transfers 1633 
213 
204 
322 
303 
160 
97 
85 
32 
22 
332 
232 
29 
19 
52 
239 
45 
42 
96 
55 
11.3: Redistribution of income in kind account 
Uses 
D.63 
D.631 
D.6311 
D.6312 
D.6313 
D.632 Social transfers in kind 
Social benefits in kind 
Social security benefits, reimbursements 
Other social security benefits in kind 
Social assistance benefits in kind 
Transfers of individual non-market goods and services 
B.7 Adjusted disposable income 219 
162 
78 
65 
19 
57 
1604 Resources 
B.6 Disposable income 
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 219 
162 
78 
65 
57 
- 441 
Table A.2. Full sequence of accounts for the total economy [cont] 
11.4: Use of income account 
11.4.1: Use of disposable income account 
Uses 
P.3 Final consumption expenditure 
P.31 Individual consumption expenditure 
P.32 Collective consumption expenditure 
D.8 Adjustment for the change in net equity 
of households on pension funds 
B.8 Saving Resources 
1371 B.6 Disposable income 1604 
1215 
156 D.8 Adjustment for the change in net equity of households 
on pension funds 
233 
//. 4.2: Use of adjusted disposable income account 
Uses Resources 
P.4 Actual final consumption 1371 B.7 Adjusted disposable income 1604 
P.41 Actual individual consumption 1215 
P.42 Actual collective consumption 156 D.8 Adjustment for the change in net equity 
of households on pension funds 
D.8 Adjustment for the change in net equity 
of households on pension funds 
B.8 Saving 233 
442 
Table A.2. Full sequence of accounts for the total economy [cont.] 
III. Accumulation accounts 
111.1 ; Capital account 
///. 1.1: Change in net worth due to saving and capital transfers account 
Changes in assets Changes in liabilities and net worth 
B.10.1 Changes in net worth due to saving and capital transfers 230 B.8n Saving, net 
D.9 Capital transfers, receivable 
D.91 Capital taxes 
D.92 Investment grants 
D.99 Other capital transfers 
D.9 Capital transfers, payable 
D.91 Capital taxes 
D.92 Investment grants 
D.99 Other capital transfers 233 
62 
23 
37 
• 65 
-2 
-27 
•36 
///. /. 2: Acquisition of non-financial assets account 
Changes in assets 
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 Additions 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 
K.1 Consumption of fixed capital 
P.52 Changes in inventories 
P.53 Acquisitions less disposals of valuables 
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.22 Acquisitions less disposals of intangible 
non-produced assets 
B.9 Net lending (+) /Net borrowing (-) 303 
305 
-13 
53 
22 
17 
-222 
28 
10 
38 Changes in liabilities and net worth 
376 B. 10.1 Changes in net worth due to saving and capital transfers 230 
- 443 -
Table A.2. Full sequence of accounts for the total economy [cont.] 
.2: Financial account 
Changes in assets 
Net acquisition of financial assets 641 Changes in liabilities and net worth 
Net incurrence of liabilities 
F.l Monetary gold and SDRs -1 
F.2 Currency and deposits 
F.21 Currency 
F.22 Transferable deposits 
F.29 Other deposits 119 F.2 Currency and deposits 
34 F.21 
62 F.22 
23 F.29 Currency 
Transferable deposits 
Other deposits 132 
35 
65 
32 
F.3 Securities other than shares 138 F.3 Securities other than shares 123 
F.4 Loans 
F.41 
F.42 Short-term 
Long-term 244 F.4 
83 F.41 
161 F.42 Loans 
Short-term 
Long-term 217 
76 
141 
F.5 Shares and other equity 44 F.5 Shares and other equity 
F.6 Insurance technical reserves 
F.61 Net equity of households on life insurance 
reserves and on pension funds reserves 
F.611 
F.612 
F.62 Net equity of households on life insurance reserves 
Net equity of households on pension funds reserves 
Prepayment of premiums and reserves against 
outstanding claims 36 F.6 
F.61 
33 
22 F.611 
11 F.612 
F.62 Insurance technical reserves 
Net equity of households on life insurance 
reserves and on pension funds 36 
33 
Net equity of households on life insurance reserves 22 
Net equity of households on pension funds 
Prepayment of premiums and reserves against 
outstanding claims 
F.7 Other accounts receivable 
F.71 Trade credits and advances 
F.79 Other accounts receivable, except trade credits and 
advances 61 F.7 Other accounts payable 
18 F.71 
43 52 
F.79 Trade credits and advances 
Other accounts payable, except trade credits and 
advances 34 
B.9 Net lending(+)Met borrowing(-) 38 
444 
Table A.2. Full sequence of accounts for the total economy [cont.] 
111.3: Other changes in assets accounts 
111.3.1: Other changes in volume of assets account 
Changes in assets 
AN Non-financial assets 
AN.l Produced assets 
K.4 Economic appearance of produced assets 
K.7 Catastrophic losses 
K.8 Uncompensated seizures 
K.9 Other volume changes in non-financial assets n.e.c. 
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 morteùzation/demonetization of gold 
of which : 
AN.H Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
K.3 Economic appearance of non-produced assets 
K5 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.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.12.22 Changes in classification of assets or liabilities 
other than monetization/demonetization of gold 
ofwhich : 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
K.7 Catastrophic losses 
K.8 Uncompensated seizures 
K.10 Other volume changes in financial assets and 
liabilities n.e.c. 
K.12 Changes in classifications and structure 
Monetization/demonetization of gold 
K.12.22 Changes in classification of assets or liabilities 
other than monetization/demonetization of gold 
ofwhich: 
AF.l Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 10 
-7 
3 
-9 
0 
1 
-2 
0 
-4 
-1 
-2 
17 
24 
4 
K.12.1 Changes in sector classification and structure 
K.12.2 Changes in classification of assets and liabilities 
K.12.21 Changes in liabilities and net worth 
AF Liabilities 
K.7 Catastrophic losses 
K.8 Uncompensated seizures -2 
T 
0 
K.10 Other volume changes in financial assets and net 
liabilities n.e.c. 
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 -2 
0 
0 
0 
K.12.22 Changes in classification of assets or liabilities 
other than monetization/demonetization of gold 
ofwhich: 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.S Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts payable -4 
0 
2 
0 
B. 10.2 Changes in net worth due to outer 
changes in volume of assets 
445 
Table A.2. Full sequence of accounts for the total economy [cont.] 
ill.3.2: Revaluation account 
Changes in assets 
K.11 Nominal holding gains(+yiosses(-) : Changes in liabilities and net worth 
K.11 Nominal holding gains(-yiosses(+) : 
AN Ncrv-financial assets 
AN.l Produced assets 
AN.11 
AN. 12 
AN.13 
AN.21 Fixed assets 
Inventories 
Valuables 
AN.2 Non-produced assets 
Tangible non-produced assets 
AN.22 Intangible non-produced assets 280 AF Liabilities 
126 AF.2 Currency and deposits 
111 AF.3 
154 AF.6 
152 Securities other than shares 
AF.4 Loans 
8 AF.5 Shares and other equity 
Insurance technical reserves 
AF.7 Other accounts payable 76 
42 
34 
AF Financial assets 
AF.l Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 12 
40 
B. 10.3 Changes in net worth due to nominal holding gains/losses 288 
- 446 -
Table A.2. Full sequence of accounts for the total economy [cont.] 
111.3.2.1: Neutral holding gains/losses account 
Changes in assets 
K.11.1 Neutral holding gains (-f-Vlosses (-) : Changes in liabilities and net worth 
KHI.i Neutral holding gains (-)/losscs (+) : 
AN Non-financial assets 
AN.l 
AN.11 
AN. 12 
AN.13 Produced assets 
Fixed assets 
Inventories 
Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 198 AF 
121 AF.2 
111 AF.3 
AF.4 
AF.5 
78 AF.6 
76 AF.7 Liabilities 126 
Currency and deposits 29 
Securities other than shares 26 
Loans 29 
Shares and other equity 28 
Insurance technical reserves 
Other accounts payable 
AF Financial assets 
AF. 1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 
AF.7 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
Other accounts receivable 136 
30 
25 
28 
26 
B.10.31 Changes in net worth due to neutral holding gains/losses 208 
111.3.2.2: Real holding gains/losses account 
Changes in assets 
K. 11.2 Real holding gains(+yiosscs(-) : Changes in liabilities and net worth 
K.11.2 Real holding gains(-yiosses(+) : 
AN Non-financial assets 
AN.l 
AN.l I 
AN. 12 
AN.13 Produced assets 
Fixed assets 
Inventories 
Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible ison-produccd assets 81 AF 
76 AF.2 
AF.3 
AF.4 
AF.5 
77 AF.6 Liabilities •50 
Currency and deposits -29 
Securities other than shares 
Loans -29 
Shares and other equity 
Insurance technical reserves -7 
AF.7 Other accounts payable 
AF Financial assets 
AF. 1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AFJ Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable -52 
-3 
30 
-28 
-7 
-5 
B. 10.32 Changes in net worth due to real holding gains/losses 80 
447 -
Table A.2. Full sequence of accounts for the total economy [cont.] 
IV: Balance sheets 
IV.1: Opening balance sheet 
Assets 
AN Non-financial assets 
AN.l Produced assets 
AN.11 Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF.l Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.S Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 9922 
66 
6 792 
770 
1263 
1384 
1296 
370 
227 Liabilities 
and net worth 
AF Liabilities 
6 047 AF.2 Currency and deposits 
5 544 AF.3 Securities other than shares 
AF.4 Loans 231 
272 AF.5 Shares and other equity 
AF.6 Insurance technical reserves 3 875 
3 809 AF.7 Other accounts payable 
B.90 Net worth 6 298 
1471 
1311 
1437 
1406 
371 
302 
10416 
IV.2: Changes in balance sheet 
Assets 
Total changes in assets 
AN Non-financial assets 
AN.l Produced assets 
AN.11 Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF. 1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 482 
289 
239 
34 
16 
193 
191 
2 
730 
18 
119 
178 
240 
75 
38 
61 Liabilities 
and net worth 
Total changes in liabilities 
AF Liabilities 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts payable 
B. 10 Changes in net worth, total 
due to: 
B.10.1 Saving and capital transfers 
B. 10 2 Other changes in volume of assets 
B.10.3 Nominal holding gains/losses 
B.10.31 Neutral holding gains/losses 
B.10.32 Real holding gains/losses 677 
132 
165 
213 
38 
52 
535 
230 
288 
208 
80 
- 448 -
Table A.2. Full sequence of accounts for the total economy [cont.] 
IV.3: Closing balance sheet 
Assets 
AN Non-financial assets 
AN.l 
AN.11 
AN.12 
AN.13 
AN.21 Produced assets 
Fixed assets 
Inventories 
Valuables 
AN.2 Non-produced assets 
Tangible non-produced assets 
AN.22 Intangible non-produced assets 265 
288 
68 Liabilities 
and net worth 
10 404 AF Liabilities 
6336 AF.2 Currency and deposits 1603 
S 783 AFJ Securities other than shares 476 
AF.4 Loans 1650 
AF.5 Shares and other equity 1483 
AF.6 Insurance technical reserves 4068 
4 000 AF.7 Other accounts payable 409 
354 
AF Financial assets 
AF. 1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 7522 
788 
1601 
1441 
1624 
1371 
408 
288 
B.90 Net worth 10 951 
- 449 -
Table A.3. Full sequence of accounts for non-financial corporations 
I: Production account 
Uses 
P.2 Intermediate consumption 
B.l g Value added, gross 
K. 1 Consumption of fixed capital 
B.ln Value added, net 872 
137 
735 Resources 
881 P.l 
P.ll Output 1753 
Market output 1722 
P.12 Output for own final use 
II. Distribution and use of income accounts 
11.1 : Primary distribution of income account 
//. 1.1: Generation of income account 
Uses 
D. 1 Compensation of employees 
P. 11 Wages and salaries 
D. 12 Employers' social contributions 
P. 121 Employers' actual social contributions 
D.122 Employers' imputed social contributions 
D.29 Other taxes on production 
D.39 Other subsidies on production 
B.2 Operating surplus Resources 
545 B.ln Value added net 735 
421 
124 
112 
12 
86 
-35 
139 
- 450 -
Table A.3. Full sequence of accounts for non-financial corporations [cont.] 
//. 1.2: Allocation of primary income account 
Uses 
D.4 Property income 
D.41 
D.421 
D.45 Interest 
D.42 Distributed income of corporations 
Dividends 
Rent 
B.5 Balance of primary incomes 66 
48 
24 
D.422 Withdrawals from income of quasi-corporations 24 
D.43 Reinvested earnings on direct foreign investment 0 
72 Resources 
145 B.2 Operating surplus 
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.45 Rent 139 
D.43 Reinvested earnings on direct foreign investment 
D.44 Property income attributed to insurance policyholders 78 
25 
3 
3 
0 
4 
5 
41 
11.1.2.1: Entrepreneurial income account 
Uses 
D.4 Property income 
D.41 
D.45 Interest 
Rent 
B.4 Entrepreneurial income 66 
120 Resources 
97 B.2 Operating surplus 
D.4 Property income 
D.41 Interest 
D.42 Distributed income of corporations 
D.421 Dividends 139 
D.422 Withdrawals from income of quasi-corporations 
D.43 Reinvested earnings on direct foreign investment 
D.44 Property income attributed to insurance policyholders 
D.45 Rent 
11.1.2.2:. Allocation of other primary income account 
Uses 
D.4 Property income 
D.42 Distributed income of corporations 
D.421 
D.422 Dividends 
Withdrawals from income of quasi-corporations 
D.43 Reinvested earnings on direct foreign investment 48 
48 
24 
24 
0 Resources 
B.4 Entrepreneurial income 120 
B.5 Balance of primary incomes 72 
- 451 -
Table A.3. Full sequence of accounts for non-financial corporations [cont.] 
11.2: Secondary distribution of income account 
Uses 
20_ 
4 D.5 Current taxes on income, wealth, etc. 
D.51 Taxes on income 
D.59 Other current taxes 
D.62 Social benefits other than social transfers in kind 
D.622 Private funded social benefits 
D.623 Unfunded employee social benefits 
D.7 Other current transfers 
D.71 Net non-life insurance premiums 
D.75 Miscellaneous current transfers Resources 
B.5 Balance of primary incomes 72 
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 
D.612 Imputed social contributions 
B.6 Disposable income D.7 Other current transfers 
D.72 Non-life insurance claims 
D.75 Miscellaneous current transfers 
11.4: Use of income account 
11.4.1: Use of disposable income account 
Uses 
D.8 Adjustment for the change in net equity 
of households on pension funds 
B.8 Saving Resources 
B.6 Disposable income 48 
- 452 -
Table A.3. Full sequence of accounts for non-financial corporations [cont.J 
III. Accumulation accounts 
111.1: Capital account 
///. 1.1: Change in net worth due to saving and capital transfers account 
Changes in assets Changes in liabilities and net worth 
B.10.1 Changes in net worth due to saving 
and capital transfers B.8n Saving, net 48 
65 
D.9 Capital transfers, receivable 
D.92 Investment grants 
D.99 Other capital transfers 33 
23 
10 
D.9 Capital transfers, payable 
D.91 Capital taxes 
D.99 Other capital transfers 
///. 1.2: Acquisition of non-financial assets account 
Changes in assets 
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 Additions to the value of non-produced 
non-financial assets 
P.513I Major improvements to non-produced 
non-financial assets 
P.5132 Costs of ownership transfer on non-produced 
non-financial assets 
K. 1 Consumption of fixed capital 
P.52 Changes in inventories 
P.53 Acquisitions less disposals of valuables 
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.22 Acquisitions less disposals of intangible 
non-produced assets 
B.9 Net lending (+)/net borrowing (-) 209 
211 
-6 
-1 
20 
137 
~26" 
2 
-7 
-6 
^69 Changes in liabilities and net worth 
250 B. 10.1 Changes in net worth due to saving 
and capital transfers 65 
453 
Table A.3. Full sequence of accounts for non-financial corporations [cont.; 
111.2: Financial account 
Changes in assets 
F Net acquisition of financial assets 
F.2 Currency and deposits 
F.21 
F.71 Currency 
F.22 Transferable deposits 
F.29 Other deposits 
F.3 Securities other than shares 
F.4 Loans 
F.41 Short-term 
F.42 Long-term 
F.5 Shares and other equity 
F.6 Insurance technical reserves 
F.7 Cther accounts receivable 
Trade credits and advances 10 
27 
F.62 Prepayment of premiums and reserves against 
outstanding claims 
F.79 Other accounts receivable, except trade credits and 
advances Changes in liabilities and net worth 
Net incurrence of liabilities 
F.2 Currency and deposits 
F.22 Transferable deposits 
F.29 Other deposits 
F.3 Securities other than shares 
F.4 Loans 
F.41 Short-term 
16 F.42 Long-term 
F.5 Shares and other equity 
F.6 Insurance technical reserves 
F.61 Net equity of households on life insurance 
reserves and on pension funds 
F.612 Net equity of households on pension funds 
7 F.7 Other accounts payable 
F.71 
F.79 Trade credits and advances 
Other accounts payable, except trade credits and 
advances 
B.9 Net lending(+)/het borowing(-) 37 
29 
-69 
- 454 
Table A.3. Full sequence of accounts for non-financial corporations [cont.] 
111.3: Other changes in assets accounts 
111.3.1: Other changes in volume of assets account 
Changes in assets 
12 
-_2_ 
0 
-5 AN Non-financial assets 
AN.l Produced assets 
K.4 Economic appearance of produced assets 
K.7 Catastrophic losses 
K.8 Uncompensated seizures 
K.9 Other volume changes in non-financial assets ae.c. 
K.12 Changes in classifications and structure 
K.12.1 Changes in sector classification and structure 
K.1X2 Changes in classification of assets and liabilities 
K.12.22 Changes in classification of assets or liabilities 
other than ttKXtCuzatkiiVdcnvxvctization of gold 
ofwhich: 
AN.11 Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
K.3 Economkappeanu>ceofrK)i>f>rpduccd 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.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.1Z22 Changes in classification of assets or liabilities 
other than ti>oocuzaUoiVdcrnonetizalion of gold 
ofwhich: 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets -1 
I 
3 
3 
-1 
-1 
0 
14 
24 
0 
-7 
-6 
-1 
0 
-4 
0 
1 
1 
0 Changes in liabilities and net worth 
AF Liabilities 
K.7 Catastrophic losses 
K.8 Uncompensated seizures 
K.10 Other volume changes in financial assets 
and liabilities n.cc 
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.1Z22 Changes in classification of assets or liabilities 
other than moi»ctizatioiVdcmonetizauon of gold 
ofwhich: 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts payable 
AF Financial assets 
K.7 Catastrophic losses 
K.8 Uncompensated seizures 
K.10 Other volume changes in financial assets and 
liabilities n.e.c. 
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. 1222 Changes in classification of assets or liabilities 
other than roor>ctizau'on/dentonctization of gold 
ofwhich: 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 
B. 10.2 Changes in net worth due to other 
changes in volume of assets 
- 455 
Table A.3. Full sequence of accounts for non-financial corporations [cont.] 
111.3.2: Revaluation account 
Changes in assets 
K.11 Nominal holding gains(+)/losscs(-): Changes m liabilities and net worth 
K.11 Nominal holding gainsQ/losscsf.-*-): 
AN Non-financial assets 
AN.l 
AN.11 
AN.12 
AN.13 
AN.21 Produced assets 
Fixed assets 
Inventories 
Valuables 
AN.2 Non-produced assets 
Tangible non-produced assets 
AN.22 Intangible non-produced assets 144 
63 
58 AF Liabilities 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 
80 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts payable JL 
AF Financial assets 
AF. 2 Currency and deposits 
AF.3 Securities other than shares 
Loans 
AF.S Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 
B. 10.3 Changes in net worth due to nominal holding gainsAosses 134 
- 456 " 
(29) 
Table A.3. Full sequence of accounts for non-financial corporations [cont.] 
111.3.2.1: Neutral holding gains/losses account 
Changes in assets 
K.11.1 Neutral holding gains (+yiosses (-): Changes in liabilities and net worth 
K.11.1 Neutral holding gains (-Vlosses (+): 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 
AN.21 Produced assets 
Fixed assets 
Inventories 
Valuables 
AN.2 Non-produced assets 
Tangible non-produced assets 
AN.22 Intangible non-produced assets 101 AF 
60 
58 AF.3 
40 AF.4 
41 AF.6 Liabilities 
AF.2 Currency and deposits 
Securities other than shares 
Loans 
1 AF.S Shares and other equity 
Insurance technical reserves 
AF.7 Other accounts payable 36 
AF Financial assets 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 
AF.6 
AF.7 Loans 
AF.S Shares and other equity 
Insurance technical reserves 
Other accounts receivable 
B.10.31 Changes in net worth due to neutral holding gains/losses 82 
111.3.2.2: Real holding gains/losses account 
Changes in assets 
K.11.2 Real holding gains(+yiosses(-): Changes in liabilities and net worth 
K.11.2 Real holding gains(-yiosses(+): 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 Produced assets 
Fixed assets 
Inventories 
Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 43 AF 
0 AF3 
AF.4 
40 AF.6 
40 AF.7 Liabilities -18 
3 AF.2 Currency and deposits -1 
Securities other than shares 
Loans 
0 AF.S • Snares and other equity 
Insurance technical reserves 
Other accounts payable 
AF Financial assets 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.S Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable -10 
-1 
-1 
B. 10.32 Changes in net worth due to real holding gainsAosses 
457 -
Table A.3. Full sequence of accounts for non-financial corporations [cont.] 
IV: Balance sheets 
IV. 1: Opening balance sheet 
Assets 
AN Non-financial assets 
AN.l Produced assets 
AN.ll Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF. 7 Other accounts receivable 5 041 
85 
38 
2040 
1989 
897 
382 
90 
50 
200 
25 
150 Liabilities 
and net worth 
AF Liabilities 
AF.2 Currency and deposits 3 001 
2 878 AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts payable 
B.90 Net worth 181*7 
897 
687 
137 
4 121 
IV.2: Changes in balance sheet 
Total changes in assets 
AN Non-financial assets 
AN.l Produced assets 
AN.ll Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 290 
182 
ISO 
29 
3_ 
108 
108 
0 
81 
17 
21 
27 
9 
0 
7 Liabilities 
and net worth 
Total changes in liabilities 
AF Liabilities 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts payable 
B. 10 Changes in net worth, total 
due to: 
B.10.1 Saving and capital transfers 155 
68 
37 
216 
65 
B. 10.2 Other changes in volume of assets 
B. 10.3 Nominal holding gainsAosses 134 
B.10.31 Neutral holding gains/losses 
B.10.32 Real holding gains/losses 
458 -
Table A.3. Full sequence of accounts for non-financial corporations [cont.] 
IV.3. Closing balance sheet 
Assets 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 
AN.21 Produced assets 
Fixed assets 
Inventories 
Valuables 
AN.2 Non-produced assets 
Tangible non-produced assets 
AN.22 Intangible non-produced assets 5 331 
3 028 
41 
2 097 Liabilities 
and net worth 
AF Liabilities 1972 
AF.2 Currency and deposits 
3 183 AF.3 Securities other than shares 
AF.4 Loans 965 
AF.S Shares and other equity 729 
AF.6 Insurance technical reserves 
2 148 AF.7 Other accounts payable 174 
AF Financial assets 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 978 
399 
111 
209 
25 
157 
B.90 Nef worth 4 337 
- 459 -
Table A.4. Full sequence of accounts for financial corporations 
I: Production account 
Uses Resources 
P.2 Intermediate consumption 29 P.l Output 102 
P.ll Market output 102 
P.12 Output for own final use 0 
Big Value added, gross 73 
K.1 Coraumption of fixed capital 10 
B.ln Value added, net 63 
II. Distribution and use of income accounts 
11.1: Primary distribution of income account 
11.1.1: Generation of income account 
Uses Resources 
D. 1 Compensation of employee» IS B.ln Value added, net 
P.ll Wage» and salaries 10 
D.12 Employer»1 social contribution» S 
D.121 Employers' actual social contributions 4 
D.122 Employer»' imputed social contributions 1 
D.29 Other taxe» on production 
D.39 Other »ub»idie» on production 
B.2 Operating surplus 45 
460 
Table A.4. Full sequence of accounts for financial corporations [cont.] 
11.1.2: Allegation of primary income account 
Uses 
D.4 Property income 
D.421 
D.45 Interest 
D.42 Distributed income of corporation» 
Dividends 
Rent 
B.5 Balance of primary incomes 36 
36 
D.422 Withdrawal» from income of quasi-coiporation» 
D.43 Reinvested earning» on direct foreign investment 
D.44 Property income attributed to insurance policyholder» 
19 Resources 
138 B.2 Operating surplus 
D.4 Property income 
D.41 
P.l 19 Adjmtment for FISIM 
D.42 Distributed income of corporation» 
D.421 Dividends 
25 D.422 Withdrawal» from income of quasi-corporations 
D.43 Reinvested earnings on direct foreign investment 
D.44 Property income attributed to insurance policyholders 
D.45 Rent 160 
125 ' 
-48 
25 
25 
0_ 
7_ 
0_ 
3 
11.1.2.1 : Entrepreneurial income account 
Uses 
D.4 Property income 
D.41 Interest 
D.44 Property income attributed to insurance policyholder» 
D.45 Rent 
B.4 Entrepreneurial income 102 
25 Resources 
B.2 Operating surplus 
D.4 Property income 
P. 119 Adjustment for FISIM 
D.42 Distributed income of corporations 
D.421 Dividends 
D.422 Withdrawal» from income of quasi-corporation» 
D.43 Reinvested earning» on direct foreign inve»tment 
D.44 Property income attributed to insurance policyholders; 
D.45 Rent 160 
125 
-48 
25 
25 
0_ 
7_ 
0_ 
3 
11.1.2.2: Allocation of other primary income account 
Uses 
D.4 Property income 
D.42 Distributed income of corporation» 
D.421 Dividends 
D.422 Withdrawal» from income of quasi-corporation» 
D.43 Reinvested earning? on direct foreign investment Resources 
B.4 Entrepreneurial income 
B.5 Balance of primary incomes 19 
- 461 
Table A.4. Full sequence of accounts for financial corporations [cont.] 
11.2: Secondary distribution of income account 
Uses 
D.5 Current taxes on income, wealth, etc. 10 
D.51 Taxes on income 
D.59 Other current taxes 
D.62 Social benefits other than social transfer» in kind 
D.622 Private funded social benefits 
D.623 Unfunded employee social benefits 
Other current transfers 
Net non-life insurance premiums 
Non-life insurance claims 
Miscellaneous current transfer» 
B.6 Disposable income Resources 
B.5 Balance of primary incomes 19 
D.61 Social contributions 
D.611 Actual social contributions 
D.6111 Employers' actual social contributions 
D.61111 Compulsory employer»' actual social contributions 
D.61112 Voluntary employer»' actual «ocial contribution» 
D.6112 Employees' social contribution» 
D.61121 Compulsory employee»' «ocial contributions 
D.61122 Voluntary employee»' «ocial contribution» 
D.612 Imputed «ocial contributions 
D.7 Other current transfer» 
D.71 Net non-life insurance premium» 
D.72 Non-life insurance claims 
D.75 Miscellaneous current transfers 
11.4: Use of income account 
//. 4.1: Use of Disposable income account 
Uses 
D.8 Adjustment for the change in net equity 
of household» on pension funds 
B.8 Saving Resources 
B.6 Disposable income 
462 -
Table A.4. Full sequence of accounts for financial corporations [cont.] 
III. Accumulation accounts 
111.1 : Capital account 
///. 1.1.: Change in net worth due to saving and capital transfers account 
Changes in assets Changes in liabilities and net worth 
B.10.1 Changes in net worth due to saving 
and capital transfers B.8n Saving, net ' 
D.9 Capital transfer», receivable 
D.92 Investment grants 
Other capital transfer» 
D.9 Capital transfer», payable 
D.91 Capital taxe» 
D.99 Other capital transfer» -7 
0 
-7 
///. 1.2.: Acquisition of non-financial assets account 
Changes in assets 
P.51 Gross fixed capital formation 
P.511 Acquisitons les» disposal» of tangible fixed assets 
P.5111 Aoqukitibn» of new tangible fixed asset» 
P.5112 Acquisitions of existing tangible fixed asset» 
P.5113 Disposals of existing tangible fixed assets 
P.512 Acquisitions lew disposai» of intangible fixed assets 
P.5121 Acquisition» of new intangible fixed asset» 
P.5122 Acquisitions of existing intangible fixed asset» 
P.5123 Disposal» of existing intangible fixed asset» 
P.513 Addition» to the value of non-produced 
non-financial assets 
Major improvements to non-produced 
non-financial assets 
P.5132 Costs of ownership transfer on non-produced 
non-financial assets 
K.1 Consumption of fixed capital 
P.52 Change» in inventorie» 
P.53 Acquisition» le»» disposal» of valuables 
K.2 Acquisitions less disposals of non-produced 
non-financial assets 
K.21 Acquisitions les» disposals of land and other 
tangible non-produced asset» 
K.22 Acquisitions less disposals of intangible 
non-produced assets 
B.9 Net lending (+) / net borrowing (-) -10 Changes in liabilities and net worth 
B. 10.1 Changes in net worth due to saving 
and capital transfers 
- 463 -
Table A.4. Full sequence of accounts for financial corporations [cont.] 
111.2: Financial account 
Changes in assets 
F Net acquniuon of financial asset» Changes in liabilities and net worth 
Net incurrence of liabilities 232 
F. 1 Monetary gold and SDR» 
F.2 Currency and deposit» 
F.21 
F.3 
F.41 
F.5 
F.6 
F.62 
F.7 
F.71 
F.79 Currency 
Transferable deposit» 
F.29 Othcrdepo.it» 
Securities other than «hare» 
Loans 
Short-term 
F.42 Long-term 
Shares and other equjty_ 
Insurance technical reserve» 
Prepayment of premiums and reserves «gainst 
outstanding claim» 
Other «00x1111» receivable 
Trade credits and advances 
Other account» receivable, except trade credit» and 
advances F.2 Currency and deposit» 
15 F.21 
F.29 
53 F.3 
63 F.41 
104 F.42 
F.6 Currency 
F.22 Transferable deposit» 
Other deposits 
Securities other than ihares 
Short-term 
Long-term 
3 F.S Shares and other equity 
F.611 
F.612 
F.62 
F.71 
F.79 Insurance technical reserves 
Net equity of households on life insurance 
reserve» and on pension fund» 
Net equity of households on life insurance reserve» 
Net equity of households on pension funds 
Prepayment of premiums and reserves against 
outstanding claims 
F.7 Other account» payable 
Trade credits and advances 
Other account» payable, except trade credit» and 
advance* 
B.9 Net lending(+)/net borrowing^) 130 
35 
63 
32 
53 
36 
33 
22 
- 464 -
Table A.4. Full sequence of accounts for financial corporations [cont.] 
111.3: Other changes in assets accounts 
111.3.1: Other changes in volume of assets account 
Changes in assets 
AN Non-financial assets 
AN.l Produced assets 
K.4 Economic appearance of produced assets 
K.7 Catastrophic losses 
Uricompensated seizures 
Other volume change» in non-financial assets n_e.c. 
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 Monetizatic^demonetization of gold 
K.12.22 Changes in classification of assets or liabilities 
other than nionetization/dcmorietizauon of gold 
ofwhich: 
AN.ll Fixed assets 
AN.12 Inventories 
AN.13 Valuable» 
AN.2 Non-produced asset» 
K.3 Economic appearance of non-produced assets 
K.5 Natural growth of non-cultivated biological resources 
K.6 Economic disappearance of non-produced asset» 
Depletion of natural asset» 
K.62 Other economic disappearance of non-produced asset» 
K.7 Catastrophic losses 
K.8 Uncompensated seizure» 
K.9 Other volume changes in non-financial asset» ne.c. 
K.12 Change» in classifications and «tructure 
K.12.1 Change» in sector classification and «tructure 
K.12.2 Change» in classification of assets and liabilities 
K.12.22 
ofwhich: 
AN.21 Changes in classification of assets or liabilities 
other than nionetization/dcTOCMctization of gold 
Tangible non-produced asset» 
AN.22 Intangible non-produced asset» 
Financial assets 
K.7 Catastrophic losses 
K.8 Uncompensated seizures 
K.10 Other volume changes in financial assets and 
liabilities n.e.c. 
K.12 Changes m classifications and «tructure 
MortctizaUort/denipnctization of gold 
K.12.22 Changes in classification of assets or liabilities 
other than moneumtioiVdemonetization of gold 
ofwhich: 
AF.l Monetary gold and SDRs 
AF.2 Currency and deposits 
Securities other than shares 
AF.4 Loans 
AF.5 Share» and other equity 
AF.6 Insurance technical reserves 
AF.7 Other account» receivable K.12.1 Change» in «ector classification and structure 
K.12.2 Changes in classification of asset» and liabilities 
K.12.21 
-3 Changes in liabilities and net worth 
AF Liabilities 
K.7 Catastrophic losses 
K.8 Uncompensated i 
K.10 Other volume changes in financial asset» and 
liabilities n.e.c. 
K.12 Change» in classifications and «tructure 
K.12.1 Changes in sector classification and structure 
K.12.2 Changes in classification of assets and liabilities 
K.12.22 Changes in classification of assets or liabilities 
other than inoiTetizatiori/demonctization of gold 
ofwhich: 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other account» payable 
B. 10.2 Changes in net worth due to other 
changes in volume of assets 
- 465 
Table A.4. Full sequence of accounts for financial corporations [cont] 
W/.3.2: Revaluation account 
Changes ki assets 
K.11 Nominal holding gains(+yio»scs{-): Changes in liabilities and net worth 
Kll Nominal holding gains(-yiosses(-t-): 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 
AN.21 Produced assets 
Fixed assets 
Inventories 
Valuables 
AN.2 Non-produced assets 
Tangible nco-produced asset» 
AN.22 Intangible non-produced asset» AF.3 
AF.4 Liabilities 
2 AF.2 Currency and deposits 
Securities other than shares 
Loans 
AF.S Shares and ether equity 
Insurance technical reserves 
AF.7 Other account» payable 
AF Financial assets 
AF. I Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than share» 
AF.4 Loans 
AF.S Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 57 
30 
16 
B.10.3 Changes in net worth due lo nominal holding gainsAosses 10 
466 -
Table A.4. Full sequence of accounts for financial corporations [cont] 
111.3.2.1: Neutral holding gains/losses account 
Changes in assets 
K.11.1 Neutral holding gains (+yiosscs (-): Changes in liabilities and net worth 
K.11.1 Neutral holding gains (-yiosses (+): 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 
AN.21 
AN.22 Produced assets 
Fixed assets 
Inventories 
Valuables 
AN.2 Ncn-produoed asset» 
Tangible non-produced assets 
Intangible non-produced assets AF 
AF.4 
AF.6 Liabilities 
2 AF.2 Currency and deposits 
Securities other than shares 
Loans 
AF.S Share» and other equity 
Insurance technical reserves 
1 AF.7 Other accounts payable 
AF 
AF.3 
AF.4 
AF.6 
AF.7 Financial assets 
AF. 1 Monetary gold and SDRs 
AF.2 Currency and deposit» 
Securities other than snares 
Loans 
AF.S Shares and other equity 
Insurance technical reserves 
Other accounts receivable 70 
14 
19 
24 
B.10.31 Changes in net worth due to neutral holding gainsAosses 
111.3.2.2: Real holding gains/losses account 
Changes in assets 
K.11.2 Real holding gains(+yiosses<-): Changes in liabilities and net worth 
K.11.2 Real holding gains(-yiosses(+): 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 
AN.22 Produced assets 
Fixed assets 
Inventories 
Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced asset» 
Intangible non-produced assets 1 AF 
AF.3 
AF.4 
AF.6 Liabilities 
AF.2 Currency and deposits 
Securities other than shares 
Loans 
AF.S Share» and other equity 
Insurance technical reserves 
1 AF.7 Other account» payable 
AF Financial assets 
AF.l Monetary gold and SDRT 
AF.2 Currency and deposits 
AF.3 
AF.4 Securities other than shares 
Loans 
AF.S Share» and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable -13 
•24 
-1 
B.10.32 Changes in net worth due to real holding gainsAosses 
467 
Table A.4. Full sequence of accounts for financial corporations [cont] 
IV: Balance sheets 
IV. 1 : Opening balance sheet 
Assets 
AN Non-financial assets 
AN.l Produced assets 
Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF. 1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than «hares 
AF.4 
AF.S Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 
IV.2: Changes in balance sheet 
Total changes in «met» 
AN Non-financial assets 
AN.l Produced assets 
AN.ll Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF. 1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.S Shares and other equity 
Insurance technical reserves 
Other accounts receivable Liabilities 
and net worth 
AF Liabilities 
AF.2 Currency and deposits 
99 AF.3 Securities other than shares 
AF.4 Loans 
AF.S Shares and other equity 
Insurance technical reserves 
37 AF.7 Other accounts payable 
3508 
1 187 
651 
B.90 Net worth 
1 
-1 
1 
0 
-2 
2 
1 
0 
294 
17 
15 
80 
163 
19 
0_ 
0 Liabilities 
and net worth 
Total changes in liabilities 
AF Liabilities 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other account» payable 
B. 10 Changes in net worth, total 
due to: 
B.10.1 Saving and capital transfers 3 384 
1053 
285 
130 
87 
0_ 
30 
38 
0 
B. 10.2 Other changes in volume of assets 
B. 10.3 Nominal holding gainsAosses 
B.10.31 Neutral holding gains/losses 
B. 10.32 Real holding gains/losses 
468 -
Table A.4. Full sequence of accounts for financial corporations [cont] 
IV.3. Closing balance sheet 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 Produced assets 
Fixed assets 100 
Inventories 
Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 38 
AN.22 Intangible non-produced assets Liabilities 
and net worth 
AF Liabilities 3 669 
AF.2 Currency and deposits 
AF.3 
AF.4 Securities other than shares 
Loans 
3 AF.S Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts payable 
AF Financial assets 
AF.l Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Se<«rities other than shares 
AF.4 Loans 1 350 
AF.S Shares and other equity 670 
AF.6 Insurance technical reserves 30 
AF.7 Other accounts receivable 
B.90 Net worth 
469 -
Table A.5. Full sequence of accounts for general government 
I: Production account 
Uses Resources 
P.2 Intermediate consumption 246 P.I Output 434 
P.ll Market output . 74 
P.12 Output for own final use 
P.l 3 Other non-market output 
B. 1 g Value added, gross 
K1 Consumption of fixed capital 
B.ln Value added, net 
II. Distribution and use of income accounts 
II. 1 : Primary distribution of income account 
//. 1.1: Generation of income account 
Uses Resources 
P.l Compensation of employee» 140 B.ln Value added, net 
P.l 1 Wage» and salaries 87 
D.12 Employers' «ocial contributions S3 
D. 121 Employers' actual «ocial corrtributions 48 
D.122 Employers' imputed social contributions S 
D.29 Other taxes on production 2 
D.39 Other «ubsidie» on production 
B.2 Operating surplus 
- 470 
Table A.5. Full sequence of accounts for general government [cont.] 
//. 1.2: Allocation of primary income account 
Uses 
Property i 
Interest 
D.42 Distributed income of corporations Resources 
46 B.2 Operating surplus 
39 
0 
D.422 Withdrawal» from income of quasi-ccrporations 0 
D.43 Reinvested earnings on direct foreign investment 0 
D.45 Rent 7 D.2 Taxes on production and imports 
D.21 Taxes on product» 
D.212 
D.2121 
D.2122 
D.214 Value added type taxes (VAT) 
Taxes and duties on imports excluding VAT 
Import duties 
Taxes on import» excluding VAT and duties 
Taxes on products except VAT and import taxes 
D.29 Other taxes on production 
D.3 Subsidies 
D.31 Subsidies on products 
D.311 Import subsidies 
D.319 Other subsidies on products 
D.39 Other subsidies on production 
B.5 Balance of primary incomes D.4 Property income 
D.41 
D.421 
D.422 
191 Interest 
D.42 Distributed income of corporation» 
Dividends 
Withdrawal» from income of quasi-corporation» 30 
12 
D.43 Reinvested earnings on direct foreign investment 
D.44 Property income attributed to insurance policyholders 
D.45 Rent 
- 471 
Table A.5. Full sequence of accounts for general government [cont-] 
11.1.2.1 : Entrepreneurial income account 
Uses 
D.4 Piupqty income 
D.41 Interest 
D.45 Rent 
B.4 Entrepreneurial income Resources 
B.2 Operating surplus 
D.4 Property income 
D.41 Interest 
D.42 Distributed income of corporations 
D.421 Dividends 16 
D.422 Withdrawal» from income of quasi-corporations 
D.43 Reinvested earnings on direct foreign investment 
D.44 Property income attributed to insurance policyholders 
D.45 Rent 
11.1.2.2: Allocation of other primary income account 
Uses 
D.4 Property income 
D.41 Interest 
B.5 Balance of primary incomes 37 
191 Resources 
37 B.4 Entrepreneurial income 
D.2 Taxes on production and import» 
D.21 Taxe» on product» 
D.211 Value added type taxes (VAT) 
Import duties 
D.2122 Taxes on imports excluding VAT and duties 
D.29 Other taxe» on production 
D.3 Subsidies 
D.3I Subsidies on products 
D.311 Import 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 235 
141 
D.212 Taxes and duties on imports excluding VAT 
D.2121 
D.214 Taxes on product» except VAT and import taxe» 
D.422 Withdrawals from income of quasi-corporations 
- 472 -
(30) 
Table A.5. Full sequence of accounts for general government [cont.] 
11.2: Secondary distribution of income account 
Uses 
~ô~ 
0 D.S Current taxes on income, wealth, etc. 
D.59 Other current taxes 
D.62 Social benefits other than social transfers m kind 
D.621 Social security benefit» in cash 
D.622 Private funded social benefit» 
D.623 Unfunded employee social benefits 
D.624 Social assistance benefits in cash 
D.7 Other current transfers 
D.71 Net non-life insurance premiums 
D.73 Current transfer» within general government 
D.74 Current jnternational cooperation 
D.75 Miscellaneous current transfers 289 
232 
0_ 
5_ 
52 
139 
4_ 
96 
31 
8 Resources 
B.5 Balance of primary incomes 191 
D.5 Current taxes on income, wealth, etc. 
D.S1 Taxes on income 
D.59 Other current taxes 213 
204 
9 
D.61 Social contributions 
D.611 
D.6111 
D.61111 
D.61112 
D.6112 
D.61121 
D.61122 
D.6H3 
D.61131 Actual social contributions 
Employer»' actual «ocial contributions 
Compulsory employers' actual social contributions 
Voluntary employer»' actual social contributions 
Employees' social contributions 
Compulsory employees' social contributions 
Voluntary employees' social contributions 268 
263 
155 
144 
11 
76 
69 
7 
Social contributions by self- and 
non-employed persons 
Compulsory social contributions by self- and 
non-employed persons 
Voluntary social contributions by self- and 
non-employed person» 
D.612 Imputed «ocial contributions 
B.6 Disposable income D.7 Other current transfers 
D.72 
D.75 Non-life insurance claims 
D.73 Current transfers within general government 
D.74 Current international corporations 
Miscellaneous current transfers 108 
1_ 
96 
1 
10 
11.3: Redistribution of income in kind account 
Uses 
D.63 
D.631 
D.6311 
D.6312 
D.6313 
D.632 Social transfer» in kind 
Social benefits in kind 
Social security benefits, reimbursements 
Other social security benefits in kind 
Social assistance benefits in kind 206 
162 
78 
65 
19 
Transfen of individual non-market goods and Resources 
B.6 Disposable income 352 
B.7 Adjusted disposable income 146 
- 473 
Table A.5. Full sequence of accounts for general government [cont.] 
11.4: Use of income account 
//. 4.1: Use of disposable income account 
Uses 
P.3 Final consumption expenditure Resources 
P.31 Individual consumption expenditure 362 B.6 Disposable income 352 
206 
P.32 Collective consumption expenditure 1S6 
D.8 Adjustment for the change in net equity 
of households on pension funds 
B.8 Saving 
II. 4.2: Use of adjusted disposable income account 
Uses Resources 
P.4 Actual final consumption 156 B.7 Adjusted disposable income 146 
P.42 Actual collective consumption 1S6 
D.8 Adjustment for the change in net equity of households 
on pension funds 
B.8 Saving 
474 -
Table A.5. Full sequence of accounts for general govemment [cont.] 
III. Accumulation accounts 
111.1: Capital account 
///. 1.1: Change in net worth due to saving and capital transfers account 
Changes in assets Changes m liabilities and net worth 
B. 10.1 Changes in net worth due to saving 
and capital transfers B.8n Saving net 
D.9 Capital transfers, receivable 
D.91 Capital taxes 
D.92 Investment grants 
D.99 Other capital transfers 
D.9 Capital transfers, payable 
D.91 Capital taxes 
D.92 Investment grants 
D.99 Other capital transfers 
III.1.2: Acquisition of non-financial assets account 
Changes in assets 
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 Acquisition» of existing tangible fixed asset» 
P.5113 Disposals of existing tangible fixed assets 
P.512 Acquisitions le»» disposal» of intangible fixed assets 
P.S121 Acquisitions of new intangible fixed assets 
P.S122 Acquisitions of existing intangible fixed assets 
P.5123 Disposal» of existing intangible fixed assets 
P.513 Additions to the value of non-produced 
non-financial assets 
P.5131 Major improvement» to non-produced 
non-financial assets 
P.5132 Costs of ownership transfer on non-produced 
non-financial assets 
K.I Consumption of fixed capital 
P.52 Changes in inventories 
P.53 Acquisitions less disposals of valuables 
K.2 Acquisitions less disposals of non-produced 
non-financial assets 24 
-2 
•30 
K.21 Acquisitions less disposals of land and other 
tangible non-produced assets 
K.22 Acquisitions less disposals of intangible 
non-produced assets 
B.9 AW lending (+) /net borrowing (-) Changes in liabilities and net worth 
B. 10.1 Changes in net worth due to saving 
and capital transfers 
- 475 
Table A.5. Full sequence of accounts for general government [cont] 
1112: Financial account 
Changes in assets 
F Net acquisition of financial assets 
F.l Monetary gold and SDR» 
F.2 Currency and deposits 
F.21 
F.22 
F.3 
F.4 
F.41 
F.42 
F.S 
F.6 
F.62 
F.7 
F.71 
F.79 Currency 
Transferable deposits 
F.29 Other deposits 
Securities other than shares 
Loans 
Short-term 
Long-term 
Share» and other equity 
Insurance technical reserves 
Prepayment of premium» and reserves against 
outstanding claims 
Other accounts receivable 
Trade credit» and advances 
Other accounts receivable, except trade credits and 
advances 120 
45 
36 Changes in liabilities and net worth 
Net incurrence of liabilities 
F.2 Currency and deposit» 
F.21 Currency 
4 F.22 Transferable deposits 
F.29 Other deposit» 
F.4 
F.41 
F.42 
F.6 
F.61 
F.612 
F.71 Securities other than shares 
Loans 
Long-term 
F.S Shares and other equity 
Insurance technical reserves 
Net equity of households on life insurance 
reserves and on pension funds 
Net equity of households on pension funds 
F.7 Other accounts payable 
Trade credits and advances 
Other accounts payable, except trade credits and 
advances 
B.9 Net tending(+)/net borrowingf-) 4_ 
T5Ô~ 
476 
Table A.5. Full sequence of accounts for general govemment [cont.] 
111.3: Other changes in assets accounts 
Ul. 3.1: Other changes in volume of assets account 
Changes in assets 
AN Non-financial asset» 
AN.l Produced assets 
K.4 Economic appearance of produced assets 
K.7 Catastrophic losses 
K.8 Uncompensated seizures 
K.9 Other volume changes in non-financial asset» ne.c. 
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 mooetjjation/demonetization of gold 
ofwhich: 
AN.ll Fixed assets 
AN.12 Inventorie» 
AN.13 Valuables 
AN.2 Non-produced assets 
K.3 Economic appearance of non-produced assets 
K.5 Natural growth of non-cultivated biological resources 
K.6 Economic disappearance of non-produced assets 
K.61 Depletion of natural asset» 
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.ec. 
K.12 Change» in classifications and structure 
K.12.1 Change» in sector classification and structure 
K.12.2 Change» in classification of asset» and liabilities 
K.12.22 Changes in classification of assets or liabilitie» 
other than monetization/dertionetiTation of gold 
ofwhich: 
AN.21 
AN.22 Tangible non-produced assets 
Intangible non-produced assets 
AF Financial assets 
K.7 Catastrophic losses 
K.8 Uncompensated i 
K.10 Other volume changes in financial assets and 
liabilities n_e.c. 
K.12 Changes in classifications and structure 
K.12.1 Changes in sector classification and structure 
K.12.21 
K.12.22 Monetizatiori/denionetization of gold 
Changes in classification of asset» or liabilities 
other than monctization/dciiXMietization of gold 
ofwhich: 
AF. 1 Monetary gold and SDR» 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.S Shares and other equity 
AF.6 Insurance technical reserves 
Other accounts receivable -2 
K.12.2 Change» in classification of assets and liabilities Changes in liabilities and net worth 
Liabilities 
Catastrophic losses 
K.8 Uncompensated i 
K.10 Other volume changes in financial asset» and 
liabilities n.e.c. 
K.12 Change» m classifications and structure 
K.12.1 Changes in sector classification and structure 
K.12.2 Changes in classification of asset» and liabilities 
K.12.22 Changes in classification of assets or liabilities 
other than nwnetizatkin/demonetization of gold 
ofwhich: 
AF.2 Currency and deposit» 
AF.3 
AF.4 
AF.6 Securities other than shares 
Loans 
AF.S Share» and other equity 
Insurance technical reserves 
AF.7 Other account» payable 
B. 10.2 Changes in net worth due to other 
changes in volume of assets 
477 
Table A.5. Full sequence of accounts for general govemment [cont.] 
///. 3.2: Revaluation account 
Changes in assets 
K.11 Nominal holding gairts(+yios»cs(-): 
AN Non-financial assets 
AN.l Produced assets 
AN.ll Fixed assets 
AN.12 
AN.13 Valuables 
AN.2 Non-produced assets 
Tangible non-produced assets 
AN.22 
AF 
AF.4 
AF.6 
AF.7 Intangible non-produced assets 
Financial assets 
AF. 1 Monetary gold and SDRs 
AF.2 Currency and deposits 
Securities other than shares 
Loans 
AF.5 Shares and other equity 
Insurance technical reserves 
Other account» receivable 44 
20 
18 
1 
1 
23 
23 
0 Changes in liabilities and net worth 
AF 
AF.3 
AF.4 
AF.6 Nominal holding gains(-yiosses(4-): 
Liabilities 
AF.2 Currency and deposit» 
Securities other than shares 
Loans 
AF.5 Share» and other equity 
Insurance technical reserves 
AF.7 Other accounts payable 
B.10 J Changes in net worth due to nominal holding gainsAosses 38 
III.32.1 : Neutral holding gains/losses account 
Changes in assets 
K.11.1 Neutral holding gains (+yiosscs (-). 
AN Non-financial assets 
AN.l Produced assets 
AN.ll Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced asset» 
AN.22 Intangible non-produced assets 
Financial assets 
AF. 1 Monetary gold and SDRs 
AF.2 Currency and deposit» 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Share» and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable Changes in liabilities and net worth 
K.11.1 
AF 
AF.3 
AF.4 
AF.6 Neutral holding gains (-)/losses (+): 
Liabilities 
AF.2 Currency and deposits 
Securities other than «hares 
Loans 
AF.5 Shares and other equity 
Insurance technical reserves 
AF.7 Other accounts payable 
B.10.31 Changes in net worth due to neutral holding gainsAosses 26 
478 -
Table A.5. Full sequence of accounts for general government [cont.] 
111.3.2.2: Real holding gains/losses account 
Changes in assets 
K. 11.2 Real holding g»ins(^yiosse«(-): Changes in liabilities and net worth 
K. 11.2 Real holding gains(-)/losscs(+): 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 
AN.21 Produced assets 
Fixed assets 
Inventories 
Valuables 
AN.2 Non-produced asset» 
Tariff pie non-produced assets 
AN.22 Intangible non-produced asset» 12 AF 
AF.3 
AF.4 
12 AF.6 Liabilities 
AF.2 Currency and deposits 
Securities other than shares 
Loans 
AF.S Shares and other equity 
Insurance technical reserves 
AF.7 Other account» payable -2 
-0 
AF Financial assets 
AF.l Monetary gold and SDR» 
AF.2 Currency and deposit» 
AF.3 Securities other than «hares 
AF.4 Loans 
AF.S Share» and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable -6 
-3 
B.10.32 Changes in net worth due to real holding gainsAosses 12 
- 479 -
Table A.5. Full sequence of accounts for general government [cont.] 
IV: Balance sheets 
IV. 1 : Opening balance sheet 
Assets 
AN Non-financial asset» 
AN.l Produced assets 
AN.U Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF.l Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other account» receivable 
IV.2: Changes in balance sheet 
Assets 
Total change» in asset» 
AN Non-financial assets 
AN.l Produced asset» 
AN.ll Fixed 
AN.12 Inventories 
AN.13 - Valuables 
AN.2 Non-produced asset» 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF. I Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.S Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable Liabilities 
and net worth 
1 S91 AF Liabilities 
AF.2 Currency and deposits 
913 AF.3 Securities other than shares 
AF.4 Loans 
AF.S Shares and other equity 
S90 AF.6 Insurance technical reserves 
578 AF.7 Other accounts payable 
12 
396 
80 
ISO 
115 
12 
20 
19 
B.90 Net worth 
56 
25 
20 
1 
4 
30 
30 
0 
123 
1_ 
7_ 
29 
45 
34 
0_ 
6 Liabilities 
and net worth 
Total change» in liabilities 
AF Liabilities 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Share» and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts payable 
B.10 Changes in net worth, total 
due to*. 
B.10.1 Saving and capital transfers 
B.l 0.2 Other changes in volume of assets 
B.I 0.3 Nominal holding gainsAosses 
B. 10.31 Neutral holding gains/losses 
B. 10.32 Real holding gains/losses 687 
19 
22 
176 
93 
10 
• 38 
26 
- 480 -
Table A.5. Full sequence of accounts for general govemment [cont.] 
IV.3. Closing balance sheet 
Assets 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 Produced asset» 
Fixed assets 
Inventories 
Valuables 
AN.2 Non-produced asset» 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets Liabilities 
and net worth 
1647 AF Liabilities 
1026 
620 
608 
12 AF.2 Currency and deposits 
AF.4 Securities other than shares 
45 AF.S Shares and other equity 
AF.6 Insurance technical reserve» 19 
AF.7 Other account» payable 
AF Financial assets 
AF. 1 Monetary gold and SDRs 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.S Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 20 
25 
B.90 Net worth 1302 
- 481 
Table A.6. Full sequence of accounts for households 
I: Production account 
Uses Resources 
P.2 Intermediate oomumption 694 P.I Output 1 269 
P.ll Market output 1 129 
• P.12 Output for own final use 140 
B.l g Value added, gross S7S 
K.1 Consumption of fixed capital 42 
Bin Value added, net 533 
II. Distribution and use of income accounts 
II. 1 : Primary distribution of income account 
11.1.1: Generation of income account 
Uses Resources 
P. 1 Compensation of employees 39 B. 1 n Value added, net 533 
P.ll Wages and salaries 39_ 
D.12 Employer»' social contributions 0 
P.l 21 Employer»' actual «ocial contribution» 
D.122 Employers' imputed social contributions 
D.29 Other taxes on production 
D.39 Other subsidies on production -1 
B.2 Operating surplus 60 
B.3 Mixed Income 432 
482 -
Table A.6 Full sequence of accounts for households [cont.J 
//. 1.2: A/location of primary income account 
Uses 
D.4 Property i 
D.41 Interest 
Rent Resources 
44 B.2 Operating surplus 
17 B.3 Mixed income 
27 
P. 1 Compensation of employee» 
D. 11 Wage» and salarie» 
D. 12 Employer»' social contributions 
D.121 Employers' actual social contributions 
D.122 Employers' imputed social contributions 766 
B.5 Balance of primary incomes D.4 Property income 
D.41 
D.42 Distributed income of corporations 
D.421 
D.45 Dividends 
Withdrawals from income of quasi-corporations 
D.44 Property income attributed to insurance policyholders 
Rent 57 
13 
D.43 Reinvested earnings on direct foreign investment 
20 
11.1.2.1 : Entrepreneurial income account 
Uses 
D.4 Property income 
D.41 Interest 
D.45 Rent 
B.4 Entrepreneurial income Resources 
B.2 Operating surplus 
B.3 Mixed income 
Property i 
D.41 Interest 
D.42 Distributed income of corporation» 
D.421 Dividends 432 
D.422 Withdrawal» from income of quasi-corporations 
D.44 Property income attributed to insurance policyholder» 
490 
- 483 -
Table A.6 Full sequence of accounts for households [cont.] 
11.1.22: Allocation of other primary income account 
Uses 
D.4 Property income Resources 
37 B.4 Entrepreneurial income 
P. 1 Compensation of employees 
P. 11 Wages and salaries 
P.l 2 Employers' social conuibutions 
P. 121 Employer»' actual «ocial contributions 
D.122 Employers' imputed «ocial contributions 
P.4 Property income 
P.41 Interest 
P.42 Distributed income of corporations 
D.421 Dividends 
D.422 Withdrawals from income of quasi-corporations 
D.45 Rent 
B.5 Balance of primary incomes 766 
573 
193 
174 
19 
129 
33 
52 
D.43 Reinvested earnings on direct foreign investment 
P.44 Property income attributed to insurance policyholders 44 
3 
20 
21 
11.2: Secondary distribution of income account 
Uses 
P.5 Current taxes on income, wealth, etc. 
P.51 Taxes on income 
Other current taxes 
Social contributions 
P.611 Actual social contributions 
P.6111 
P.61111 Employers' actual social contributions 
P.61112 Compulsory employers' actual social contributions 
Voluntary employers' actual social contributions 
Employees' social contributions 
P.61121 
P.61122 Compulsory employees' social contributions 
Voluntary employees' social contributions 
P.6113 Social contributions by self- and 
non-employed persons 
D.61131 Compulsory social contributions by self- and 
non-employed persons 
D61132 Voluntary «ocial contributions by self- and 
non-employed persons 
D.612 Imputed «ocial contribution» 
Social benefits other than social transfers in kind 
Private funded social benefits 
P.7 Other current transfers 
Net non-life insurance premiums 
Miscellaneous current transfers 
B.6 Disposable income 178 
i?6 
2 
322 
303 
174 
160 
14 
97 
85 
12 Resources 
B.5 Balance of primary incomes 
P.61 Social contributions 
P.611 Actual social contributions 
P.6111 Employers' actual social contributions 
P.61111 Compulsory employers' actual social contributions 
P.61112 Voluntary employers' actual social contributions 
P.6112 Employees' social coritributioris 
P.61121 
P.61122 Compulsory employees' social contributions 
Voluntary employees' social contributions 
non-employed persons 
P.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 
Social assistance benefits in cash 
D.7 Other current transfers 
P.72 Non-life insurance claims 
P.75 Miscellaneous current transfers 
- 484 -
Table A.6 Full sequence of accounts for households [cont] 
11.3: Redistribution of income in kind account 
Uses 
B 7 Adjusted disposable income 1364 Resources 
B.6 Disposable income 
P.63 Social transfers in kind 
D.631 Social benefits in kind 
P.6311 Social security benefits, reimbursements 
D.6312 Other social security benefits in kind 
Social assistance benefits in kind 
D.632 Transfers of individual non-market goods and 
services 
11.4: Use of income account 
//. 4.1: Use of disposable income account 
Uses 
P.3 Final consumption expenditure 
P.31 Individual consumption expenditure 
B.8 Saving 160 Resources 
996 B.6 Disposable income 
996 
D.8 Adjustment for the change in net equity 
of households on pension funds 1145 
U. 4.2: Use of adjusted disposable income account 
Uses 
P.4 Actual final consumption 
P.41 Actual individual consumption 
B.8 Saving 1215 Resources 
1215 B.7 Adjusted disposable income 
D.8 Adjustment for the change in net equity of households 
on pension funds 
160 
>85 -
Table A.6 Full sequence of accounts for households [cont] 
III. Accumulation accounts 
III.l r Capital account 
///. 1.1: Change in net worth due to saving and capital transfers account 
Changes in assets 
B. 10.1 Changes in net worth due to saving 
and capital transfers Changes in liabilities and net worth 
B.8n Saving net 
D.9 Capital transfer», receivable 
D.92 
P.91 Investment grant» 
D.99 Other capital transfers 23 
0 
23 
D.9 Capital trarufer», payable 
Capital taxe» 
P.99 Other capital transfer» 
III. 1.2: Acquisition of non-financial assets account 
Changes in assets 
P.S1 Pros» fixed capiul formation 
P.511 Acquisition» les» disposals of tangible fixed assets 
P.5111 
P.5112 Acquisitions of new tangible fixed assets 
Acquisitions of existing tangible fixed assets 
P.5113 Disposal» of existing tangible fixed asset» 
P.512 
P.SI21 Acquisitions lea» disposais of intangible fixed assets 
Acquisition» of new intangible fixed asset» 
P.5122 
P.5123 Acquisition» of existing intangible fixed assets 
P.513 Disposais of existing intangible fixed asset» 
Addition» to the value of non-produced 
non-financial asset» 
P.S131 Major improvement» to non-produced 
non-financial asset» 
P.5132 Costs of ownership transfer on non-produced 
non-financial assets 
K.1 Consumption of fixed capital 
P.52 Changes in inventorie» 
P. S3 Acquisitions less disposals of valuables 
K.2 Acquisitions less disposals of non-produced 
non-financial assets 
K.21 Acquittions less disposals of land and other 
tangible non-produced assets 
K.22 Acquisitions les» disposals of intangible 
ixxi-produced asset» 
B.9 Net lending (+) /net borrowing (-) Changes in liabilities and net worth 
61 B.10.1 Changes in net worth due to saving 
and capital transfers 178 
12 
148 
- 486 -
Table A.6 Full sequence of accounts for households [cont] 
IIIJ2: Financial account 
Changes in assets 
F.22 
F.3 
F.4 
F.41 
F.42 
F.6 
F.61 
F.611 
F.612 
F.62 
F.7 
F.71 
F.79 Net acquisition of financial assets 
F.2 Currency and deposit» 
Currency 
Transferable deposits 
F.29 Other deposit» 
Securities other than shares 
Loans 
Short-term 
Long-term 
F.S Shares and other equity 
Insurance technical reserves 
Net equity of households on life insurance reserves 
and on pension fund» reserves 
Net equity of households on life insurance reserves 
Net equity of households on pension funds réserves 
Prepayment of premium» and reserves against 
outstanding claim» 
Other aooounts receivable 
Trade credits and advances 
Other aooounts receivable, except trade credits and 
advances 29 
36 
33 
22 Changes in liabilities and net worth 
Net incurrence of liabilities 
F.2 Currency and deposit» 
10 F.22 Transferable deposits 
F.29 Other deposit» 
F.3 Securities other than shares 
F.4 Loans 
F.41 Short-term 
F.42 Long-term 
F.7 Other account» payable 
F.71 Trade credits and advances 
F.79 Other accounts payable, except trade credits and 
advances 
40 
29 33 
28 
B.9 Net lending(+)/net borrowing^) 148 
487 -
Table A.6 Full sequence of accounts for households [cont.] 
111.3: Other changes in assets accounts 
111.3.1: Other changes in volume of assets account 
Changes in assets 
AN Non-financial assets 
Produced assets 
K.4 
K.7 Economic appearance of produced assets 
Catastrophic losses 
K.8 Ursoornpcnsated i 
Other volume change» in non-financial assets n.e.c. 
Changes in classifications and structure 
K.12.1 Changes in lector classification and structure 
K.12.2 Changes in classification of assets and liabilitie» 
K.12.21 Monetization/demonetization of gold 
K.12.22 Changes in classification of assets or liabilities 
other than monetization/demonetization of gold 
ofwhich: 
AN.ll Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
K.3 Economic appearance of non-produced assets 
K.5 Natural growth of non-cultivated biological resources 
K_6 Economie disappearance of non-produced assets 
K.61 Depletion of natural assets 
K.62 Other economic disappearance of non-produced asset» 
Catastrophic losses 
Uncompensated i 
Other volume changes in non-financial assets rte.c. 
K.12 
K.12.1 Changes in classifications and structure 
Change» in sector classification and structure 
K.12.2 Changes in classification of assets and liabilities 
K.12.22 
ofwhich: 
AN.21 Changes in classification of assets or liabilities 
other than iisonetization/demonetization of gold 
Tangible non-produced asset» 
AN.22 Intangible non-produced assets 
AF Financial assets 
K.7 
K.8 Catastrophic losses 
Uncompensated I 
K.10 Other volume changes in financial assets and 
liabilities n.e.e. 
K.12 Changes m classifications and structure 
Changes in classification of assets and liabilities 
Changes in classification of assets or liabilities 
other than menctization/demonetization of gold 
ofwhich: 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
Loans 
AF.5 Shares and other equity 
Insurance technical reserves 
Other accounts receivable K.12.1 Change» in «ector classification and structure 
K.12.2 Changes in liabilities and net worth 
Liabilities 
Catastrophic losses 
K.8 Uncompensated i 
K.10 Other volume changes in financial assets and 
liabilities n_e.c. 
K.12 Change» in clas»ification» and structure 
K.12.1 Changes in sector classification and «tructure 
K.12.2 Changes in classification of asset» and liabilities 
K.12.22 Changes in classification of assets or liabilities 
other than monetization/demonetization of gold 
ofwhich: 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.7 Other accounts payable 
B. 10.2 Changes in net worth due to other 
changes in volume of assets 
(31) 
Table A.6 Full sequence of accounts for households [cont.] 
Ul.3.2: Revaluation account 
Changes in assets 
K.11 Nominal holding gams(-t-yiosses(-): Changes in liabilities and net worth 
K.11 Nominal holding gama(-yiosses(+): 
AN lNkxi-uMnctu assets 80 AF 
AN.1 
AN.ll 
AN.12 
AN.13 
AN.21 
AN.22 Produced assets 
Fixed 35 
28 AF.3 
uiveotonec 
Valuable» 
AN.2 Non-produced asset» 45 
Tangible non-produced asset» 45 AF.4 
AF.7 
Intangible non-produced assets Liabilities 
AF.2 Currency and deposits 
Securities other than shares 
Loan» 
Other account» payable 
AF 
AF.2 
AF.3 
AF.4 Financial assets 16 
Currency and deposits 
Securities other than shares 
Loan» 
AF.5 Share» and other equity 10 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 
B.10.3 Changes in net worth due lo nominal holding gainsAosses 96 
- 489 ~ 
Table A.6 FuH sequence of accounts for households [cont] 
I0.2.1 : Neutral holding gains/losses account 
Changes in assets 
K.11.1 Neutral holding gain» (-t-Vlosses (-). Changes in liabilities and net worth 
K.11.1 Neutral holding gain» (-VIOMCS (+): 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 
AN.2 
AN.21 
AN.22 Produced 
Fixed 
Inventories 
Valuables 
Non-produced i 
Tangible non-produced assets 
Intangible non-produced asset» 56 AF 
34 
28 AFJ 
22 
22 AF.4 
AF.S Liabilities 
AF.2 Currency and deposit» 
Securities other than share» 
Loans 
Share» and other equity 
AF.7 Other account» payable 
AF 
AF.3 
AF.4 
AF.7 Financial assets 
AF.2 Currency and deposit» 
Securities other than share* 
Loan» 
AF.S Share» and other equity 
Insurance technical reserves 
Other isocounts receivable 36 
B.10.31 Changes in net worth due lo neutral holding gainsAosses 87 
lil.3.2.2: Real holding gains/losses account 
Changes in assets 
K.11.2 Real holding gams(+y.c«»cs(->. Changes in liabilities and net worth 
K.11.2 Real holding gaina(-yio»»es(+>. 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 
AN.2 
AN.21 
AN.22 Produced 
Fixed assets 
Irrventorie» 
Valuable» 
Non-produced assets 
Tangible non-produced assets 
Intangible non-produced assets 24 AF 
22 
22 AF.3 
AF.4 liabilities 
1 AF.2 Currency and deposit» 
Securities other than (hares 
Loans 
_1_ AF.7 Other account» payable -6 
AF 
AF.2 
AF.3 
AF.4 
AF.6 
AF.7 Financial assets 
Currency and deposits 
Securities other than shares 
Loans 
AF.S Share» and other equity 
Insurance technical reserves 
Other accounts receivable -20 
-17 
• 6 
-1 
B.10.32 Changes in net worth due lo real holding gainsAosses 
- 490 -
Table A.6 Full sequence of accounts for households [cont.] 
IV: Balance sheets 
fV.1 : Opening balance sheet 
.. Assets 
AN Non-financial assets 
AN.l Produced assets 
AN.ll Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.S Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 2 822 
1698 
1423 
97 
1 124 
1819 
198 
291 
55 Liabilities 
and net worth 
AF Liabilities 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.7 Other accounts payable 
B.90 Net worth 289 
10 
169 
108 
4 352 
IV.2: Changes in balance sheet 
.Assets 
Total changes in assets 
AN Non-financial assets 
AN.l Produced assets 
AN.ll Fixed assets 
AN.12 Inventories 
AN.13 Valuable» 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 
AF Financial assets 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 110 
61 
47 
4_ 
10 
49 
48 
199 
68 
35 
5_ 
13 
38 
40 Liabilities 
and net worth 
Total changes in liabilities 
AF Liabilities 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.7 Other accounts payable 
B.10 Changes in net worth, total 
due to: 
B.10.1 Saving and capital transfers 33 
276 
B.10.2 Other changes in volume of assets 
B. 10.3 Nominal holding gainsAosses 
B. 10.31 Neutral holding gains/losses 
B.10.32 Real holding gains/losses 
- 491 -
Table A.6 Full sequence of accounts for households [cont.] 
IV.3. Closing balance sheet 
Liabilities 
and net worth 
AN Non-financial assets 2 932 AF Liabilities 
AN.l 
AN.ll 
AN.12 
AN! 3 Produced assets 
Fixed assets 1 7S9 AF.2 Cun-ency and deposit» 
1470 AF.3 Securities other than shares 
AF.4 
Valuables 
AN.2 Non-produced assets 1173 
AN.21 Tangible non-produced assets 1 172 
AN.22 Intangible non-produced assets Loans 
AF.7 Other accounts payable 
AF Financial assets 2018 
AF.2 Currency and deposits 
AF.3 Securities other than shares 233 
AF.4 Loans 29 
AF.S Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 
B.90 Net worth 
- 492 
Table A.7. Full sequence of accounts for non-profit institutions serving households 
I: Production account 
Uses 
P.2 Intermediate consumpuon 
B.lg Value added, gross 
K.1 Qxssumption of fixed capital 
B.1 a Value added, net 28 Resources 
P.l Output 
P.ll Market output 
P.12 Output for own final use 
P.l 3 Other non-market output 16 
II. Distribution and use of income accounts 
11.1 : Primary distribution of income account 
II. 1.1: Generation of income account 
Uses 
D.1 Compcntatioo of ttnployoCT 
D.11 Wage» and «alarics 12 
D.12 Employers' «ocial contributions Resources 
23 B.ln Value added, net 28 
D.121 
D.122 Employers' actual «ocial contribution» 10 
Employers' imputed «ocial contributions 
D.29 Other taxe» on production 
D39 Other aubsidie» on production 
B.2 Operating surplus 
- 493 -
Table A.7 Full sequence of accounts for non-profit Irtstitutions serving households [conL] 
U.1.2: Allocation of primary income account 
Uses 
D.4 Property income 
D.41 Interest 
D.42 Distributed income of corporations 
D.422 Withdrawals from income of quasi-corporations 
D.43 Reinvested earnings on direct foreign investment 
D.44 Property income attributed to insurance policyholders 
D.45 Rent 
B.5 Balance of primary incomes Resources 
B.2 Operating surplus 
D.4 Property i 
D.41 Interest 
D.42 Distributed income of corporations 
D.421 Dividends 
11.1.2.1 : Entrepreneurial income account D.422 Withdrawals from income of quasr^orporatioo» 
D.43 Reinvested earnings on direct foreign investment 
D.44 Property income attributed to insurance policyholder» 
P.45 Rent 
Uses 
D.4 Property income 
D.41 Interest 
D.45 Rent 
B.4 Entrepreneurial income Resources 
B.2 Operating surplus 
D.4 Property income 
D.41 Interest 
D.42 Distributed income of corporations 
Dividends 
D.422 Withdrawal» from income of quasi-corporations 
H.122: Allocation of other primary income account 
Uses 
D.4 
D.41 Property i 
Interest 
D.45 Rent 
B.5 Balance of primary incomes Resources 
B.4 Entrepreneurial income 
D.4 Property i 
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 invcsUitcut 
D.44 Property income attributed to insurance policyholders 
D.4S Rent 
494 -
Table A.7 Full sequence of accounts for non-profit institutions serving households [conL] 
IL2: Secondary distribution of income account 
Uses 
D.5 Current taxes on income, wealth, etc. 
D.S9 Other current taxes 
D.62 Social benefits other than social transfer» in kind 
D.622 Private funded «ocial benefit» 
D.623 Unfunded employee «ocial benefits 
D.7 Other current transfers 
D.71 Net non-life insurance premiums 
D.7S Miscellaneous current transfers 
B.6 Disposable income Resources 
B.5 Balance of primary incomes 
D.61 Social contributions 
D.611 Actual social contributions 
D.61 II Employers' actual social corrtributions 
D.61 111 Compulsory employers' actual «ocial contributions 
D.6112 Employees'«ocial contribution» 
D.61121 Compulsory employee»' social contributions 
D.61122 Voluntary employees' social contributions 
D.612 Imputed social contributions 
D.7 Other current transfers 36 
D.72 Non-life insurance claims 
D.75 Miscellaneous current transfers 
11.3: Redistribution of income in kind account 
Uses 
D.63 
D.631 
D.6313 
D.632 Social transfers in kind 
Social benefits in kind 
Social assistance benefits in kind 
Transfers rf individual non-market goods and 
B.7 Adjusted disposable income 24 Resources 
B.6 Disposable income 
11.4: Use of income account 
M.4.1: Use of disposable income account 
Uses 
P.3 Final comumption expenditure 
P.3I Individual consumption expenditure 13_ 
D.8 Adjustment for the change in net equity 
of households on pension fonds 0 
_ 
B.8 Saving Resources 
13 B.6 Disposable income 
11.4.2: Use of adjusted disposable income account 
Uses 
D.8 Adjustment for the change in net equity of household» 
on pension funds 
B.8 Saving Resources 
B.7 Adjusted disposable income 24 
- 495 -
Table A.7 Full sequence of accounts for non-profit instiujtiorw serving households [cont] 
III. Accumulation accounts 
111.1: Capital account 
Ul.1.1: Change in net worth due to saving and capital transfers account 
Changes in assets Changes in liabilities and net worth 
B.10.1 Changes in net worth due to saving 
and capital transfers B.8n Saving, net 
D.9 Capital transfers, receivable 
D.92 uivtalmcnit guntt 
D.99 Other capital transfers 
D.9 Capital transfera, payable 
D.91 Capital taxe» 
D.99 Other capital transfer» 24 
-3 
0 
-3 
.1.2: Acquisition of non-financial assets account 
Changes In assets 
P.51 Pros» fixed capital formation 
P.511 Acquisitions lew disposals of tangible fixed asset» 
P.5111 Acqukitiona of new tangible fixed assets 
P.5112 Acquisition» of existing tangible fixed assets 
P.S113 Disposal» of existing tangible fixed asset» 
PJ12 
P.S121 Acquisition» lea» disposal» of intangible fixed asset» 
Acqtiisition» of new intangible fixed asset» 
P.S122 Acquisition» coexisting intangible fixed assets 
P.S123 
P.513 Disposals of existing intangible fixed asset» 
Additions to the value of non-produced 
non-financial i 
P.5131 Major improvement» to nor*produced 
non-financial assets 
P.S132 Coat» of ownership transfer on Dcn-produced 
Doci-fitianctal asset» 
K.1 Contumption of fixed capital 
P.52 Change» kl inventorie» 
P.53 Acquisitions les» disposal» of valuable» 
K.2 Acquisitions lea» disposal» of non-produced 
non-financial assets 
B.9 Net lending (+) /net borrowing (-) 19 
14 
13 
10 
-5 
K.21 Acquiskioo» lea» disposals of land and other 
tangible non-produced asset» 
K.22 Acqukkion» less disposals of intangible 
non-produced asset» Changes in liabilities and net worth 
B.10.1 Changes in net worth due to saving 
and capital transfers 
- 496 -
Table A.7 Full sequence of accounts for non-profit institutions serving households [cont.] 
111.2: Financial account 
Changes in assets 
F.21 
FJ 
F.4 
F.41 
F.42 
F.6 
F.62 
F.7 
F.71 
F.79 Net acquisition of financial assets 
v "F.2 Currency and deposit» 
Currency 
F.22 Transferable deposit» 
F.29 Other deposit» 
Securities other than shares 
Loan» 
Short-term 
Long-term 
F.S Share» and other equity 
Insurance technical reserves 
Prepayment of premiums and reserves against 
outatanding claim» 
Other aooounts receivable 
Trade credits and advances 
Other accounts receivable, except trade credits and 
advances 32 
12 
12 Changes in liabilities and net worth 
Net incurrence of liabilities 
F.2 Currency and deposit» 
2 F.22 Transferable deposits 
F.29 Other deposits 
F3 Securities other than share» 
F.4 Loan» 
F.41 
F.42 JfSfc 
F.S Share» and other equity 
F.6 Insurance technical reserve» 
F.61 Net equity of households on life insurance reserves 
and on pension funds 
F.612 Net equity of households on pension fonds 
8 F.7 Other account» payable 
Trade credits and advances 
Other accounts payable, except trade credits and 
advances 
B.9 Net lending(+)/net borrowing^) 
- 497 
Table A.7 Full sequence of accounts for non-profit institutions serving households [cont.] 
111.3: Other changes in assets accounts 
llt.3.1: Other changes in volume of assets account 
Changes in assets 
AN Non-financial assets 
AN.l Produced assets 
K.4 
K.7 Economic appearance of produced assets 
(Catastrophic losses 
K.8 Uncompensated seizures 
K.9 
K.12 Other volume changes in non-financial assets n.e.< 
Change» in classifications and structure 
K.1X1 Changes in sector classification and structure 
K.li2 Changes in classification of assets and liabilities 
K.12.22 
ofwhich: 
AN.11 Changes in classification of assets or liabilities 
other than montxaationMemonetization of gold 
Fixed assets 
AN.12 Inventories 
AN.13 Valuables 
AN.2 Non-produced asset» 
K.3 Economic appearance of non-produced asset» 
K.5 
K.6 Natural growth of non-cultivated biological resource» 
K.61 Economic disappearance of non-produced assets 
Depletion of natural assets 
K.62 
K.7 Other economic disappearance of non-produced assets 
Catastrophic losses 
K.8 Uncompensated i 
K.9 Other, volume changes in non-financial assets n.e.c. 
K.12 Change» in classification» and structure 
K.12.1 Change» in sector classification and structure 
K.1X2 Changes in classification of assets and liabilities 
K.12.22 Changes in classification of assets or liabilities 
other than monetization/demonetization of gold 
ofwhich: 
AN.21 Tangible non-produced assets 
AN.22 Intangible nora-produced asset» 
AF Financial assets 
K.7 Catastrophic losses 
K.8 Uncompensated seizures 
K.10 Other volume changes in financial assets and 
liabilities ae.c. 
K.12 Changes in classifications and «tructure 
K.1222 Changes in classification of assets or liabilities 
other than monetizatkm/demontHùration of eolc 
ofwhich: 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.S Share» and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable K.12.1 Changes in sector classification and structure 
K.12.2 Change» in classification of assets and liabilities Changes in liabilities and net worth 
Liabilities 
K.7 Catastrophic losses 
K.8 Uncompensated seizures 
K.10 Other volume change» in financial assets and 
ljabilitie» n.e.c. 
K.12 Change» in clarification» and «tructure 
K.12.1 Change» in lector clarification and «tructure 
K.1Z2 Change» in classification of asset» and liabflitie» 
K.XZ22 Change» in classification of asset» or liabilities 
other than monetization/denKsnetization of gold 
ofwhich: 
AF.2 Currency and deposits 
AF.3 
AF.4 
AF.6 
AF.7 Securities ether than share» 
Loans 
AF.S Shares and other equity 
Insurance technical reserve* 
Other account» payable 
B. 10.2 Changes in net worth due lo other 
changes in volume of assets 
- 498 -
Table A.7 Full sequence of accounts for non-profit institutions serving households [conL] 
ttt.3.2: Revaluation account 
Changes in assets 
K.11 Nominal holding gains(+yiosses(-): Changes in liabilities and net worth 
K.11 Nominal holding gains(-)/los»e»(-t-): 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 
AN.21 Produced assets 
Fixed 
Inventories 
Valuables 
AN.2 Non-produced assets 
Tangible non-produced asset» 
AN.22 Intangible non-produced assets 8 AF 
AFJ 
AF.4 
AF.S 
AF.6 
AF.7 Liabilities 
S AF.2 Currency and deposits 
Securities other than shares 
Share» and other equity 
Insurance technical reserves 
Other account» payable 
AF 
AF.3 
AF.4 
AF.S Financial assets 
AF.2 Currency and deposits 
Securities other than shares 
Loans 
Share» and other equity 
AF.6 Insurance technical reserve* 
AF.7 Other accounts receivable 
B. 10.3 Changes in net worth due to nominal holding gainsAosses 10 
- 499 -
Table A.7 Full sequence of accounts for non-profit institutions serving households [cont.] 
III.32.1 : Neutral holding gains/losses account 
Changes in assets 
K.11.1 Neutral holding gains (+yiosscs (-): Changes in liabilities and net worth 
K.11.1 Neutral holding gain» (-Vlosses (+): 
Non-financial assets 
AN.ll 
AN.12 
AN.13 
AN.21 Produced assets 
Fixed assets 
inventories 
Valuables 
AN.2 Non-produced assets 
Tangible non-produced assets 
AN.22 Intangible non-produced assets AF 
AF.3 
AF.4 
AF.6 Liabilities 
S AF.2 Currency and deposit» 
Securities other than shares 
Loans 
AF.S Share» and other equity 
Insurance technical reserves 
2 AF.7 Other account» payable 
AF.3 
AF.4 
AF.7 Financial assets 
AF.2 Currency and deposits 
Securities other than shares 
Loans 
AF.5 Share» and other equity 
Insurance technical reserves 
Other accounts receivable 
B. 10.31 Changes in net worth due to neutral holding gainsAosses 
m.322: Real holding gains/losses account 
Changes in assets 
K.11.2 Real holding gamsf+yiossesQ: Changes in liabilities and net worth 
K.11.2 Real holding gain»(-yiosscs(+): 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 
AN.21 Produced asset» 
Fixed assets 
Inventories 
Valuables 
AN.2 Non-produced asset» 
Tangible nort-produccd assets 
AN.22 Intangible non-produoed asset» 0 AFJ 
0 AF.4 
AF.6 Liabilities 
0 AF.2 Currency and deposits 
Securities other than shares 
0 AF.S Shares and other equity 
Insurance technical reserves 
2 AF.7 Other accounts payable -0 
AF Financial assets 
AF.2 Currency and deposits 
Securities other than shares 
AF.4 Loan» 
AF.5 Shares and other equity 
Insurance technical reserves 
AF.7 Other aooounts receivable -2 
B.10.32 Changes in net worth due to real holding gainsAosses 
500 -
Table A.7 Full sequence of accounts for non-profit institutions serving households [cont] 
IV: Balance sheets 
IV.1 : Opening balance sheet 
Assets 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 Produced assets 
Fixed assets 
biventortes 
Valuable* 
AN.2 Non-produced assets 
AN.21 Tangible non-produced asset» 
AN.22 Intangible non-produced assets 324 
231 
10 Liabilities 
and net worth 
AF Liabilities 
243 AF.2 Currency and deposit» 
AF.4 
AF.6 Securities other than shares 
Loans 
AF.S Share» and other equity 
Insurance technical reserves 
AF.7 Other accounts payable 35 
AF Financial assets 
AF.2 Ourrency and deposit» 
AF.3 
AF.4 Securities other than shares 
Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 22 
B.90 Net worth 
IV.2: Changes in balance sheet 
Assets 
Total changes in assets Liabilities 
and net worth 
Total changes in liabilities 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 Produced assets 
Fixed assets 
Inventories 
Valuables 
AN.2 Non-produced assets 
AN.21 Tangible non-produced assets 
AN.22 Intangible non-produced assets 25 
21 
21 
0 
0 
4 
4 
0 AF Liabilities 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 
AF.6 Loans 
AF.S Shares and other equity 
Insurance technical reserves 
AF.7 Other accounts payable 28 
0 
0 
24 
4 
0 
0 
AF Financial assets 
AF.2 Ourrency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 33 
12 
13 
0 
1 
0 
8 
B. 10 Changes in net worth, total 
due to: 
B.10.1 Saving and capital transfers 
B. 10.2 Other changes in volume of assets 
B. 10.3 Nominal holding gainsAosses 21 
0 
10 
B.10.31 Neutral holding gains/losses 
B.10.32 Real holding gains/losses 
- 501 -
Table A.7 Full sequence of accounts for non-profit institutions serving households [conL] 
IV.3. Closing balance sheet 
Assets 
AN Non-financial assets 
AN.l 
AN.ll 
AN.12 
AN.13 Produced assets 264 
Fixed assets 252 
Inventories 
Valuables 
AN.2 Non-produced assets 85 Liabilities 
and net worth 
AF Liabilities 149 
AF.2 Currency and deposits 
AF.4 
AN.21 Tangible non-produoed asset» 
AN.22 Intangible non-produoed asset» 38 
AF.3 Seajrities other than shares 
Loans 
AF.5 Shares and other equity 
AF.6 Insurance technical reserves 
AF.7 Other «coounts payable 35 
AF Financial assets 205 
AF.2 Currency and deposits 
AF.3 Securities other than shares 
AF.4 Loans 
AF.S Shares and other equity 23 
AF.6 Insurance technical reserves 
AF.7 Other accounts receivable 
B.90 Net worth 406 
- 502 
ANNEXE 
4o^ 
eurostat 
NOVEMBER 1994 
s"o <-( 
132) 
Overview of tables to be supplied in the framework of art. 3 
of the regulation 'ESA 95" 
17.11.94. 
first 
transmis­
sion 
a (1998) 
a (1998) 
a (1998) 
a+1 (1999) 
a+1 (1999) 
a+1 (1999) 
a+1 (1999) 
a+1 (1999) 
a+1 (1999) 
a+1 (1999) 
a+1 (1999) 
a+2 (2000) 
a+2 (2000) 
a+2 (2000) 
a+2 (2000) 
a+2 (2000) 
a+2 (2000) 
a+2 (2000) 
a+2 (2000) 
a+3 (2001) 
a+3 (2001) 
a+3 (2001) 
a+3 (2001) 
a+3 (2001) 
a+4 (2002) 
a+4 (2002) 
a+4 (2002) 
see table 
a+5 (2003) 
a+5 (2003) 
a+5 (2003) 
a+5 (2003) delay 
t + month 
4 
4 
8 
9 
9 
9 
12 
9 
9 
12 
24 
24 
12 
24 
24 
12 
12 
24 
24 
36 
36 
36 
36 
36 
24 
36 
36 
see table 
4/9 
9 
12/24 
12/24 trans­
mission 
for 
95-97 
95-97 
95-97 
95-98 
95-98 
95-98 
95-98 
95-98 
95-98 
95-98 
95-97 
95-98 
95-99 
95-98 
95-98 
95-99 
95-99 
95-98 
95-98 
95-98 
95-98 
95-98 
95-98 
95-98 
95-00 
95 
(00 in 03) 
95 
(00 in 03) 
see table 
95-02 
95-02 
95-02/01 
95-02/01 subject of the tables 
Main aggregates, annual *) 
Main aggregates, quarterly *) 
Main aggregates general government 
Tables by industry *) **) 
Exports anu imports by EU/third countries 
Household final consumption expenditure by purpose 
Non-financial accounts by sector, main aggregates ***) 
Financial accounts by sector (transactions) 
Balance sheets for financial assets and liabilities 
Detailed taxes and social contributations 
Tables by region, NUTS II, A17 
Non-financial accounts by sector, details ***) 
Government expenditure by function 
Cross classification of production account by industry and by 
sector, annual, A17x 4 sectors (S11, S12, S13, S14+S15) 
Cross classification of gross fixed capital formation by industry 
and by product, A31 x Pi3 
Supply table at basic prices incl. transformation into purchasers 
prices, A17 xP60 
Use table at purchasers prices, A17 x P60 
Tables by region, NUTS III, A3 
Household accounts by region 
Supply table at basic prices incl. transformation into purchasers 
prices, A60 x P60 
Use table at purchasers prices, A60 x P60 
Symmetric input-output table at basic prices, P60 x P60 
Symmetric input-output table for domestic output at basic 
prices, P60 x P60 
Symmetric input-output table for imports at basic prices, P60 x P60 
Cross classification of fixed assets by industry and by product, 
A31 x Pi3 
Cross classification of production account by industry and by 
sector, A60 x 5 sectors (S11, S12, S13, S14, S1.5), 5-yearly 
Cross classification of gross fixed capital formation by industry 
and by product, A31 x P60, 5-yearly 
Backward calculations 
Acquisition less disposables of valuables 
Hours worked by industry 
Breakdown of corporations by owner 
Breakdown of private households by groups tables 1 
Nr. | 
1 I 
i 1 
2 ! i 3 t 
4 i 
5 : 
s i 
8 ' 
9 1 
11 i 
22 ; 
i 
7 i 
10 j 
12 ij 
13 \ 
j 
15 j 
17 ~1 
23 | 
24 
16 
18 
19 
20 
21 1 
14 I 
25 
26 
27 
1/3 J 
3 \ 
6/7 
6/7 | 
a= year of the transmission of the firs' tables. 
t= reference year 
*) until 2003 Acquisition less disposables of valuables together with changes in stocks 
**) until 2003 no hours worked by industry 
***) until 2003 without breakdown of corporations by owner and breakdown of private households by groups 
J*bf 
Table 1 : MAIN AGGREGATES - quarterly and annual exercise 
code list of variables 
Value added and Gross Oornestic Product . 
B.1 g 1. Gross value added at basic prices 
D.21-D.31 2. taxes less subsidies on products 
3. FISIM 
B.1*g 4. Gross domestic product at market prices 
Expenditure of the Gross Domestic Product 
P.3 5. Total final consumption expenditure 
P.3 6. a) Household final consumption expenditure (domestic concept) 
P.3 6. b) Household final consumption expenditure (national concept) 
P.3 7. Final consumption expenditure of NPISHs 
P.3 8. Government final consumption expenditure 
P.31 a) Individual consumption expenditure 
P.32 b) Collective consumption expenditure 
P.4 9. Actual final consumption of households 
P41 a) Actual individual consumption 
P.5 10. Gross capital formation 
P.51 a) Gross fixed capital formation 
P.52 b) Changes in inventories 
P.53 c) Acquisition less disposables of valuables*** 
P.6 11. Exports of goods (fob) and services 
P.7 12. Imports of goods (fob) and services 
Income, Saving and Net Lendi ng 
B.5 13. Balance of primary income with the rest of the world 
B.5*g 14. Gross national income at market prices 
K.1 15. Consumption of fixed capital 
B.5*n 16. Net national income at market prices 
D.5,D.6, D.7 17. Net current transfers with the rest of the world 
B.6n 18. Disposable income, net 
B.8n 19. National saving, net 
D.9 20. Net capital transfers with the rest of the world 
B.9 21. Net lending or net borrowing of the nation 
Population, Employment,- Compensation of employees 
22. Population and employment data 
a) Total population (1000) 
b) Unemployed persons (1000) 
c) Employment, national and domestic concept (1000) 
. self employed 
. employees 
D.1 23. Compensation of employees, national and domestic concept 
D.11 a) Gross wages and salaries break­
down + 
A6 
Pi 6 
A6** 
A6** 
A6** 
A6** curr. 
prices 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X const, 
prices 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
(x) 
X 
X 
(x) 
+ If no breakdown is indicated that means total economy 
(x) = at real terms ** = A6 only for domestic concept 
*** = until 2003 together with P.52 
5~o & 
Table 2: Main aggregates general government 
P.1 Output 
P.11+P.12 . Market output and output for own use 
P.13 . Other non-market output 
P.2 Intermediate consumption 
B.1 g Value added, gross 
K.1 Consumption of fixed capital 
B.1n Value added, net 
D.1 Compensation of employees, paid 
D.29-D.39 Other taxes on production paid - Other subsidies on 
production received ; 
B.2n Operating surplus, net 
D.2 Taxes on production and imports, received 
D.4 Property income, received 
D.3 Subsidies paid 
D.4 Property income, paid 
D.41 . Interest 
D.42+D.43+D.44+D.45 . Other 
B.5n Balance of primary incomes, net 
D.5 Current taxes on income and wealth, received 
D.61 Social contributions, received 
D.611 . Actual social contributions 
D.612 . Imputed social contributions 
D.7 Other current transfers, received 
D.5 Current taxes on icome and wealth, paid 
D.62 Social benefits other than social transfers in kind, paid 
D.7 Other current transfers, paid 
B.6n Disposable income, net 
P.3 Final consumption expenditure 
P.31 . Individual consumption expenditure 
P.32 . Collective consumption expenditure 
D.8 Adjustment for the change in net equity of households on 
pension funds 
B.8 Saving, net 
K.1 Consumption of fixed capital 
D.9 Capital transfers, received 
D.91 . Capital taxes 
D.92+D.99 .Other " 
D.9 Capital transfers, paid 
P.5 Gross capital formation 
P.51 . Gross fixed capital formation 
P.52+P.53+K.2 . Changes in inventories and Acquisitions less disposables of 
valuables and Acquisitions of non-produced non-financial assets 
B.9 Net lending (+)/Net borrowing (-) 
i<^ ? 
Table 3: TABLES BY INDUSTRY annual exercise 
code list of variables 
Value added 
P.1 1. Output at basic prices by industry 
P.2 2. Intermediate consumption at purchaser's prices by industry 
B.1 g 3. Gross value added at basic prices by industry 
K.1 4. Consumption of fixed capita, by industry 
Capital formation 
P.5 5. Gross capital formation by industry 
P.51 a) Gross fixed capital formation by industry 
P.52 b) Changes in inventories by industry 
P.53 c) Aquisition less disposables of valuables by industry*) 
Employment and compensation of employees, domestic concept 
6. Employment by industry (1000) 
a) self employed by industry 
b) employees by industry 
c) hours worked by industry**) 
D.1 7. Compensation of employees by industry 
D.11 a) Wages and salaries by industry break­
down 
A31 
A31 
A31 
A31 
A31 
A31 
A31 
A31 
A31 
A31 
A31 
A31 curr. 
prices 
X 
X 
X 
X 
X 
X 
X 
X 
X constant 
prices 
X 
X 
X 
X 
X 
*) until 2003 together with P.52 
**) until 2003 voluntary 
^O t 
Table 4: Exports and imports by EU / third countries 
code list of variables 
P.6 1. Exports of goods and services 
a) EU countries 
b) third countries 
P.7 2. Imports of goods and services 
a) EU countries 
b) third countries break­
down 
total 
economy curr. 
prices 
X 
X 
X 
X 
X 
X constant 
prices 
X 
X 
X 
X 
X 
X 
Table 5: Household final consumption expenditure by purpose 
code list of variables 
P.3 Household final consumption expenditure by purpose break­
down 
COICOP 
2 digits curr. 
prices 
x constant 
prices 
x 
s o* 
Non-financial accounts by sector, main aggregates: t-f-12 Table 6 
U 
O House 
holds 
and non-i 
profit 
institu­
tions 
serving 
house­
holds TWrd _ A The , The countries Rest _ member T Euro- „ , Institu- andinter-ofthe countries ^ „, , .. pean _ „ nons or national Euro- A , Institu- and inter-countries ^ A. pean nons or national 
Union the EU organi­
zations Total 
Non-financial accounts by sector, main aggregates: t+12 Table 6 
B.ln Total 
Eco­
nomy 
II. 1.1 Generation of income account 
Resources 
Net domestic product /Value added, net 
Total resources 
II. 1.1 Generation of income account 
Uses Non-
finan­
cial 
corpo­
rations Finan­
cial 
corpo­
rations Gene­
ral Cen­
tral Local So­
cial 
govern- govern­
ment ment State 
govern- govern- secu-
ment ment rity 
funds House­
holds 
and non­
profit 
institu­
tions 
serving 
house­
holds The 
member Not j Rest Jhe ,A, Euro- A. of the countries pean secto­
rized Union of the 
EU The 
Institu­
tions of 
the EU Third 
countries 
and inter-
national 
organi- j 
zations i Total 
D.1 Compensation of employees 
)A D.2 
D.21 
D.29 
D.3 
D.31 
D.39 Taxes on production and imports, paid 
. to general government 
. to institutions of the EU 
. Taxes on products 
. Other taxes on production 
Subsidies, received 
. from institutions of the EU 
. from general government 
. Subsidies on products 
. Other subsidies on production 
B.2n Operating surplus, net 
Total uses 
Non-financial accounts by sector, main aggregates: t+12 Table 6 
Non-financial accounts by sector, main aggregates: t+12 Table 6 
Total 
Eco­
nomy 
II.1.2 Allocation of primary income account 
Uses Non-
finan­
cial 
corpo­
rations Finan-! Gene- Cen-
cial j ral tral 
corpo-{govern- govern-
radons; ment ment ! House-
] holds 
So- (and non-
State Local cial ; profit 
govern- govern- secu-{ institu-
ment ment rity ! tions 
funds: serving 
j house-
j holds Not 
secto­
rized The TWrd ; _ ^ The . The countries ; Rest member T ... ,. . : ... Euro- . . Institu- andinter-• of the countries ^ . ; ., pean ,., tions of national •world _•; , of the _TT 
? Union „_ the EU organi­
zations Total 
O, 
UJ D.4 
D.41 
P.119 
D.42 
D.43 
D.44 
D.45 Property income 
. to general government 
. to other sectors 
. Interest 
.. to general government 
.. to other sectors 
.. FISIM 
. Distributed income of corporations 
.. to general government 
.. to other sectors 
. Reinvested earnings on direct foreign investment 
.. to general government 
.. to other sectors 
. Property income attributed of insurance policy 
holders 
.Rent 
.. to general government 
.. to other sectors *3^fjj6als^>f^ •?5"S*!?H.! 
^"Y"1' 
^,7ft ,* I Hh», tMffrfeïiï il Hi I #$11 fill 
Wï&Mi UWJJA'.W.'.vJ.ft' 
XW.V)fff.V)fft 
B.5n Net national income/Balance of primary incomes, net 
Total uses 
Non-financial accounts by sector, main aggregates: t+12 Table 6 
Ox II.2 Secondary distribution of income account 
Resources 
B.5n National income /Balance of primary incomes, net 
D.5 Current taxes on income, wealth, etc. 
D.51 . Taxes on income 
D.59 . Other current taxes 
D.61 . Social contributions 
D.611 .. Actual social contributions 
D.6111 ... Employers' actual social contributions 
D.6112 ... Employees' social contributions 
... Social contributions by self- and non-employed D.6113 
persons 
D.612 ..Imputed social contributions 
D.62 . Social benefits other than social transfers in kind 
D.7 Other current transfers 
. from general government 
. from other sectors 
D.71 . Net non-life insurance premiums 
D.72 . Non-life insurance claims 
D.73 . Current transfers within general government 
D.74 . Current international cooperation 
.. from institutions of the EC 
D.75 . Miscellaneous current transfers 
.. from general government 
.. from other sectors 
... GNP based fourth own resource 
Total resources Total 
Eco­
nomy 
: Non-
! finan-
! cial 
corpo­
rations 
• ' 
:""" ! 
' 
.• 
••• Finan­
cial 
corpo­
rations 
H 
' 
\ 
...rvi11...j 
-! Gene-
| ral 
; govern­
ment Cen­
tral 
govern­
ment 
' State 
govern­
ment 
- — Local 
govern­
ment So­
cial 
secu­
rity 
funds ( House-
: holds 
land non-
! profit 
| institu-
i tions 
| serving 
house­
holds 
l8s$s§isll 
&•:-:$:$:•:&&•?:•: 
,-, 
, ' 
s Not 
! secto-
; rized ; Rest 
| of the 
| world 
^H^B 
%ÊÈ8rÊ£ 
-
*" 
' 
/ f-
' ' 
< 
^ 
- ; 
' t s • -
' ; 
. ' , ; 
; 
, 'î-,?': 
'Js ': 
. "• : 
s 
' 
'i The 
Euro­
pean 
Union 
H The 
member 
countries 
of the 
EU 
lljjj 
: v '1 
' '" 
-
tZJL 
:' * " The 
Institu­
tions of 
the EU 
.•yyyrg 
, ' 
•""" Third 
countries 
and inter­
national 
organi­
zations 
' ' ' «" 
* : 
; j Total 
, ''• 
•• 
Non-financial accounts by sector, main aggregates: t+12 Table 6 
°n II.2 Secondary distribution of income account 
Uses 
D.5 Current taxes on income, wealth etc. 
D.51 . Taxes on income 
D.59 . Other current taxes 
D.61 . Social contributions 
D.611 .. Actual social contributions 
D.6111 ... Employers' actual social contributions 
D.6112 ...Employees' social contributions 
... Social contributions by self- and non employed D.6113 persons 
D.612 ... Imputed social contributions 
D.62 . Social benefits other than social transfers in kind 
D.7 Other current transfers 
. to general government 
. to other sectors 
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 
.. to institutions of the EC 
D.75 . Miscellaneous current transfers 
.. to general government 
.. to other sectors 
... GNP based fourth own resource 
B.6n Disposable income, net 
Total uses Total 
Eco­
nomy 
* '• 
' ! : Non- „ 5 _ Finan-: finan- . , 
| dal dd 
: corpo-• corpo­rations rations 
-
- s ; 
!-....: 
' ; -
$ '• 
! 
' ; 
• 
: 
; 
! i Gene- Cen- T . , , State Local cial ral tral govern- govern- secu-: govern- govern- A 
• A A ment ment rity ment ment „ , funds 
.;........V . 
V ., 
> ' 
- , 
v 
^ i ^ 
< > 
" O s 
....!" 
liiii \ 
x 
s*^ 
I \ ' 
% 
s 
.' < 
:• ,! j House-
: holds 
andnon-
; profit 
institu-
i tions 
serving 
house­
holds 
s 
. .. i 
* : 
, 
\ 
': 
•ft 
•* Not 
secto­
rized 
% 
-
.. 
s Third : The • „ A The , The countries ; Rest member . : ,., Euro- A, Institu- andinter-; of the countries A, „ , : ,, pean , A. tions of national •world * of the ., «TT . Union „TJ the EU organi­zations 
i 
i 
i 
! 
_ 1 
M.I.MII... 
: :• "•> 
j 
% 
: 
• >. • s i 
i 
: 
i 
; 
y^A,:: , -" \\ s, , \\ 
, ' 1 
•'•: 
: ^ ,;•;, ! t ->w-
' .. "• 
*> 't 
- ;-M , •• \ Total 
1 , 
: 
"""""'': 
: 
Non-financial accounts by sector, main aggregates: t+12 Table 6 
B.6n 
D.8 Total 
Eco­
nomy 
II.4.1 Use of disposable income account 
Resources 
Disposable income, net 
Adjustment for the change in net equity of 
households on pension funds 
Total resources 
II.4.1 Use of disposable income account 
Uses Non-
finan­
cial 
corpo­
rations Finan­
cial 
corpo­
rations Gene- Cen-
ral tral 
govern- govern­
ment ment ; House- j 
! holds j 
So- :and non-i 
State The The 
Local cial j profit ; Not j Rest member 
govern- govern- secu-j institu- jsecto-jofthe countries 
ment ment rity | tions j rized [world 
funds: serving ! j 
| house- | j 
I holds | | pean 
Union of the 
EU Third 
The countries j 
Institu- and inter- i 
tions of national i 
the EU organi- j 
zations j Total 
^ 
*: v 
P.3 
P.31 
P.3 2 
D.8 
B.8» 
B.12 
B.8n Final consuniption expenditure 
. Individual consumption expenditure 
. Collective consumption expenditure 
Adjustment for the change in net equity of 
households on pension funds 
Net saving 
Current external balance 
Total uses 
III.l. 1: Change in net worth due to saving and capital transfers account 
Changes in liabilities and net worth 
Net saving/Current external balance ' 1 1 î î " D.9 Capital transfers 
. from general government 
. from other sectors 
D.91 . Capital taxes 
.. from general government 
.. from other sectors 
D.92 . Investment grants 
.. from general government 
.. from other sectors 
D.99 . Other capital transfers 
.. from general government 
.. from other sectors 
Potal change in liabilities and net worth 
B.10.1 
B.10.1 
K.1 
K.2 
B.9 Non-financial accounts by sector, main aggregates: t-f-12 Table 6 
Total 
Eco­
nomy Non-
finan­
cial 
corpo­
rations Finan­
cial 
corpo­
rations 
III.l.1 : Change in net worth due to saving and capital transfers account 
Changes in assets Gene- Cen-
ral tral 
govern- govern­
ment ment So-
State Local cial 
govern- govern- secu-
ment ment rity 
funds House­
holds 
and non­
profit 
institu­
tions 
serving 
house­
holds Not 
secto­
rized The ThC 
Rest member of the countries pean world Union of the 
EU The 
Institu­
tions of 
the EU Third 
countries 
and inter­
national 
organi­
zations Total 
D.9 Capital transfers 
. to general government 
. to other sectors 
D.9! . Capital taxes 
.. to general government 
| .. to other sectors 
JD.92 . Investment grants 
j .. to general government 
{ .. to other sectors 
D.99 . Other capital transfers 
.. to general government 
.. to other sectors 
Changes in net worth due to saving and capital 
transfers 
Total changes in assets 
III.1.2 Acquisitions of non-financial assets account 
Changes in liabilities and net worth 
Changes in net worth due to saving and capital 
transfers 
Consumption of fixed capital 
Total change in liabilities and net worth 
111.1.2 Acquisitions of non-financial assets account 
Changes in assets fcj.-.M.;* .'|||'.HI.-IM. 
*-1 - -i \ 
«•HIHVHTI,.»-1 ,;I.M..;A (i$.wmtf.m. 
SMsa 8-S8JS-S 
•:::&Ss':: $$P 
i»&g& 
Mi 
M 
, \ 
P.5 Gross capital formation 
P.51 . Gross fixed capital formation 
P.52 . Changes in inventories 
P.S3 . Acquisitions less disposals of valuables 
Acquisitions less disposals of non-produced non 
financial assets 
Net lending (+)/ Net borrowing (-) 
Total change in assets 
Non-financial accounts by sector, details: t+24 Table 7 
Total 
Eco­
nomy Non- Public Private 
finan- non- non-
clal finan- flnan-
corpo- cial cial 
rations corpo- corpo­
rations rations 
I Production Account/External account of goods and services 
Resources Insu- j 
ranee j 
Finan­
cial 
corpo­
rations *) 
Em-
ploy-other /»,u 
Other , finan- Finan- corpo- Gene- ," State Local Social: tary , , , , ., : , tral s ersand _ 
.1-1 -i.i _»i._..ra|g>>B „„_ -^ $ecu-: House- Em-
«°- -.-. i u.u. own ...... p«rty Non-
Cen 
tral flnan-
bank cial 
corpo­
rations cial cial rations 
inter- auxili- and 
medl- aries pen-
aries - slon 
funds *) 
Rec|- «• 
profit ) P'ents institu of pro 
rity vern- vern- v 
ment ment ment funds 
ment holds 
ac­
count 
wor­
kers ploy-
ees and 
trans­
fer In­
come -tions 
ser­
ving 
house­
holds Not 
secto­
rized 
1—T The The 
Rest of Euro- member 
the pean coun-
world Un- tries of 
ion the EU The 
Institu­
tions of 
the EU Third 
coun­
tries 
and 
inter­
natio­
nal 
organi­
zations Total 
P.l Output 
P.ll . Market output 
P.119 ..FISIM 
p.12 . Output for own final use 
p. 13 , Other non-market output i. I'^II1 'jiiiiijiii "MI i WMmmmï 
p,7 Imports of goods and services 
P.71 . Imports of goods 
p.72 . Imports of services .UiBjaulCffiafeajaMi 
fi Mil ill I.I I'll I.I.0.M.M '.'i. 
D.21-D.31 
51 Taxes less subsidies on products 
Total resources 
1 Production Account/External account of goods and services 
Uses 
*) until 2003 breakdown of corporations by owner and breakdown of private households by groups voluntary 
Non-financial accounts by sector, details: t+24 Table 7 
Total 
Eco­
nomy 
H.1.1 Generation of Income account 
Resources 
Net domestic product /Value added, net 
Total resources 
n.1.1 Generation of income account 
Uses Non- Public Private 
finan- non- non-
cial finan- finan-
corpo- cial cial 
rations corpo- corpo­
rations rations Insu- j 
ranee j Other nA. Other . _ «.. mone- _, :_ Cen-Flnan- „ finan- Finan- corpo- : Gene-Cen- tary Y '-cial 
corpo-tral finan­cial cial rations irai go-tral 
go-. , Inter- auxlll- and • vern-bank cial „ , . vern-rations medi- aries pen- : ment corpo- ' 
rations aries sion | 
funds : ment State Local Social 
go- go- secu-
vern- vern- rity 
ment ment funds ^} „*\ Non-
Em- Reel-
ploy- plents ^ 
!„ ersand of pro-: House- Em- r -tions : . ,. own perty : holds ploy- r . sér­ac- and ees ving count trans- , „ . house-wor- fer In- ... holds kers come Not 
secto­
rized The The 
Rest of Euro- member 
the pean coun-
world Un- tries of 
Ion the EU The 
Institu­
tions of 
the EU Third 
coun­
tries 
and 
inter­
natio­
nal 
organi­
zations Total 
|D.l 
\D.11 
\D.121 
\D 122 Compensation of employees 
. Wages and salaries 
. Employers' social contributions 
.. actual 
.. imputed 
p.:i 
D.29 Taxes on production and Imports, paid 
. to general government 
. to institutions of the EU 
. Taxes on products 
. Other taxes on production 
gj 
D.31 
D.39 Subsidies, received 
. from Institutions of the EU 
. from general government 
. Subsidies on products 
. Other subsidies on production lïiiiWiWpWBMMtaïiOOOOOWJw ^^ FiWiW 
B.2n Operating surplus, net 
Total uses 
3 
until 2003 breakdown of corporations by owner and breakdown of private households by groups voluntary 
Non-financial accounts by sector, details: t+24 Table 7 
B.2n Total 
Eco­
nomy 
n.1.2 Allocation of primary income account 
Resources 
Operating surplus, net •) *) 
Non- Public Private 
finan- non- non-
clal finan- finan-
corpo- cial cial 
rations corpo- corpo­
rations rations Other Insu-
Other _,. 
Other ranee 
j Finan- finan- Finan- corpo-, 
j cial ," _ cial dal rations! 
: tral . finan- ... \ : corpo- , . , , Inter- auxlll- and : ., bank dal ., . : rations medi- aries pen-. aries sion rations . . funds Gene- . State Local Social tral ral go- go- go- secu-
vern- vern- vern- rity 
ment ment ment funds ment r> « . Non-Em- Reci-. profit 
! Pl0y" •) P'entS institu ;„ ersand of pro- At ; House- Em- r -tions : . .. own , perty holds ploy- . sér­ac- and ees A vine count trans- , „ . house-wor- fer in- . ,. holds kers come Not 
secto­
rized The The 
Rest of Euro- member 
the pean coun-The 
Institu-Thlrd 
coun­
tries 
and 
inter-
.. ,, . . tions of world Un- tries of . „.T natio-. „,, the EU ion the EU nal 
organi­
zations Total 
D.1 Compensation of employees 
D.ll . Wages and salaries 
D. 12 . Employers' social contributions 
D.121 ..actual 
D. 122 .. imputed I'J^S'l'JSl'iOJJ^TOJJl'JJSM'JJ'wJJJJJ. 
fofni*. ^« •t'|MM.M.W.'lt'.'.W.'.W.'.' 
• ••••..••it»*iti» 
iiiiiiiimiiini iiiiiiiini iilliiiilii *s 
Taxes on production and imports, received 
D.21 . Taxes on products 
D.211 ..VAT 
D.212 .. Taxes and duties on Imports excl. VAT 
D.2121 ... Import duties 
D.2122 ...Taxes on Imports excl. VAT and duties 
D.214 .. Taxes on products excl. VAT and import taxes 
D.29 . Other taxes on production Vs ? iïifflïlïiïilïlïl 1111111 ii 1111111111 f l' Uk4~ ii' •:t*V*^ 
II I.I 111 i.i 11 i i i ii i n 11 iimo (\ixt 
y ***A**£*.**4&*Av '/•^•.'C v> \. L+MÏH SXOjlMTO'X'X'.iOl' 
'••' ^ \ s>-%. rfci*^ y,<" 
! • • fi It .Ï Wt I Wl • ,Jn OUI. rr WM. 
\ t 
D.3 Subsidies, paid 
D.31 . on products 
D.311 .. Import subsidies 
D.319 .. Other subsidies on Imports 
D.39 . other iili'iiiiiKWiWi 
ffiftfflffiWftfffllffMjffSfSfffSftf. "SffffffffjXffS&fftS} 
D.4 Property income 
.. from general government 
.. from other sectors 
D.41 . Interest 
.. from general government 
.. from other sectors 
P. 119 ..FISIM jhrtBBfiiiCTKSfeK^sSW r»4.rsSwfri i»8MiU«** 
•igMSgwftj 
WM WssfifsSsiStSSftf. 
U* msm 
0 
*) until 2003 breakdown of corporations by owner and breakdown of private households by groups voluntary 
Non-financial accounts by sector, details: t+24 Table 7 
D.42 . Distributed income of corporations 
.. from general government 
.. from other sectors 
D.421 ..Dhidends 
.. Withdrawals from income of quasi-
corporations 
... from general government 
... from other sectors 
. Reinvested earnings on direct foreign 
D.43 •.. 
investment 
.. from general government 
.. from other sectors 
. Property income attributed of Insurance 
policy holders 
D.45 . Rent 
.. from general government 
.. from other sectors Total resources Total 
Eco­
nomy .\ «»u Insu- ! ! T, r. . Non-
*) *) Other _,. : Em- Recl-: ^ ~ ... * . : Other ranee : „ : . . profit : Non- Public Private:-, mone- : Cen- „ A T , _ , ,: ploy- .. pients , A,A 
: Finan- _ finan- Finan- corpo- : Gene- , State Local Social : . ) . institu : finan- non- non- : . , Cen- tary ..••:, tral • T, ers and _ of pro- A, : , . _ : cial cial cial rations :ral go- go- go- secu-: House- Em- r -tions : cial finan- finan- j tral finan- , A ,„ . : go- ,A : , ,, own , perty : , , , . : corpo- . , , , inter- auxili- and • vern- " vern- vern- rity • holds ploy- , ser-: corpo- cial cial : A, bank cial ... '• A vern- ... : ac- and : : rations medi- aries pen- : ment ment ment funds : ees vine .'rations corpo- corpo- ; corpo- , , ; ment • count trans- . 
., .. : .. «ries slon : : house-rations rations : rations , : : wor- fer in- ... • funds • : holds ' : . : : kers come 
KSSS-S 
lÉftÉï* ^^•Ps 
SÉ&I* £:-:5:-:.&: 
ésëÉ SsÉls; ss¥^i§; •• 
' '": 
, Not 
secto­
rized 
: 
.'.'.'....Ï.ÏJ 
: Third 
coun-
The The tries 
iRest of Euro- member , , and : , Institu- , ; the pean coun- „, . inter-: ,, ,. . , tions of : world Un- tries of .. „,,. natio-
: . ™T tne EU 
ion the EU nal 
organi­
zations Total 
* ) until 2003 breakdown of corporations by owner and breakdown of private households by groups voluntary 
Non-financial accounts by sector, details: t+24 Table 7 
n.1.2 Allocation of primary income account 
Uses 
D.4 Property income 
. to general government 
. to other sectors 
D.41 .Interest 
.. to general government 
.. to other sectors 
P.l 19 .. FISLM 
D.42 . Distributed Income of corporations 
.. to general government 
.. to other sectors 
D 421 .. Dividends 
.. Withdrawals from income ofquasi-
D.422 . 
corporations 
... to general government 
... to other sectors 
. Reinvested earnings on direct foreign D.43 ... investment 
.. to general government 
.. to other sectors 
. Property income attributed of insurance 
D-44 MUM 
policy holders 
D.45 .Rent 
.. to general government 
.. to other sectors Net national income/Balance of primary 
B.5n , 
incomes, net 
Total uses Total 
Eco­
nomy .v -x : ^ i Insu- : •) ") : Other ^ . : _ , „ _ , ' • Other ranee : _ Non- Public Private:-, mone- _, •_ Cen- 0 . - , _ , , : Finan- _ finan- Finan- corpo- : Gene- . State Local Social finan- non- non- • , , Cen- tary , . , , , : , tral , . _ : cial A . _ cial cial rations jral go- go- go- secu-cial finan- finan- : tral finan- , „, , : go-, . -corpo- . . , , Inter- auxili- and : vern- Dr vern- vern- rity corpo- cial cial ; At bank cial . i vern- . A . . : rations medl- aries pen- : ment ment ment funds rations corpo- corpo- : corpo- , , : ment 
.i .i •' J ari" 5ion : 
rations rations : rations . . : 
: funds ; 
: : 
—— * 
M&m Mœï& i? r. r> , Non-Em- Recl-. profit ploy- pients lnjUtu 
„ ers and of pro- A, House- Em- -tions . ,. own perty holds ploy- sér­ac- and ees ving count trans- , . , house-wor- fer in- ... holds kers come 
: . 
' 
':'. 
... \; , 
•. ' ' ';. •;"• 
•. 
s 
, 
j 
\.: '"""""; : 
* : Not 
secto­
rized Third 
coun-
The The tries 
iRest of Euro- member _ AlA and Institu-: the pean coun- ., , inter-: ., ,T . tions of : world Un- tries of , _TT natlo-: . ™. the EU ion the EU nal 
organi­
zations 
".'.v."".: .' . 
<•••••£ .i> 
..I„I. 
1 
• : 
. 
•••••i-i. ' ••y 
: Total 
; 
3 
1 
j 
j 
, 
i 
: 
'"1 
' t until 2003 breakdown of (.oqiorations by owner and breakdown of private households by groups voluntary 
n.2 Secondary distribution of Income account 
Resources 
National income /Balance of primary incomes, 
B.5n 
net 
D5 Current taxes on income, wealth, etc. 
D.51 . Taxes on Income 
D.59 . Other current taxes 
D.ol . Social contributions 
I).61 1 .. Actual social contributions 
I).6111 ... Employers' actual social contributions 
... Compulsory employers' actual social D.61111 ..' . • ' • contributions 
.... Voluntary employers' actual social 
D.61112 ' .. . 
contributions 
D 6112 ... Employees' social contributions 
.... Compulsory employers' actual social 
D.61121 .L . 
contributions 
.... Voluntary employers' actual social 
D.61122 ... 
contributions 
... Social contributions by self- and non-
D.6113 
employed persons 
.... Compulsory social contributions by self- and 
D.61131 , . 
n on-employed persons 
.... Voluntary social contributions by self- and 
D.611.12 , . 
non-employed persons 
D.612 ..Imputed social contributions 
. Social benefits other than social transfers in 
D.62 .. . kind 
D. 621 . Social security benefits in cash 
D.622 . Private funded social benefits 
D.62.1 .. Unfunded employee social benefits 
D. 624 .. Social assistance benefits in cash total 
Eco­
nomy 
--•1 *) 
j Non Public Private 
! finan- non- non-
i cial finan- finan-
: corpo- cial cial 
'rations corpo- corpo­
rations rations : Finan-
; cial 
j corpo-
| rations 
S 'i 
: : 
: .No.n.-financial.accounts.hy..secfor. details: t+24 
„ . b>su-
°ther rs.u Other ranee mone- _ _, finan- Finan- corpo-, _ cial cial rations tral finan-. . Inter- auxili- and bank cial ., . medi- aries pen-
aries slon rations funds 
' s : 
i 
: ' '. 
1 
s' i 
-!.. 
\ ! 1 ;} »\ No-i 
: Lm Reel _ : JGene- , State Local Social! P'°y' •) pient* institu j , : , tral • ers and _ of pro- , : Not :rai go- go- go- secu-: House- Em- -tions: : g°- ,.:... own , Pcrtv : secto-: vern- vern- vern- rity holds ploy- ser- j . 
A vern- A . . : ac- and , : rized : ment ment ment funds : ees vlng : : ment • count trans- . • : : . , house-: • : wor- fer in- ... : : ! . holds ; : kers come ; 
\ 
; 
: 
; : 
'" I till 1111 
; 
: 
! 
1 5 • ...Table? 
! The Ihe ! The •Rest of Euro- member . : L Institu-• the pean coun- , , : . . ., . tions of : world Un- tries of . „., 
: . T,TT the EU [ ion the EU 
; 
; 
: 
\ Ill Third 
coun­
tries 
and 
inter­
natio­
nal 
organi­
zations 
.lv, .,... . : : | Total 
i 
"1 
! 
') until 2003 breakdown of corporations by owner and breakdown of private households by groups voluntary 
Non-financial accounts by sector, details: t+24 Table 7 
Total 
Eco­
nomy *) *) Non- Public Private 
finan- non- non-
cial finan- flnan-
corpo- cial cial 
rations corpo- corpo­
rations rations Other Other Insu­
rance 
Finan- finan- Finan- corpo-
cial _ . _ dal cial rations tral finan-corpo- . . . . inter- auxili- and bank cial rations medl- aries pen-corpo-
rations slon 
funds Gene- . State Local Social tral ral go- go- go- secu-
80- ,. 
vern- vern- vern- rity ment ment ment funds ment T. „ . Non-
Em- Red-
, profit 
P'°y- .•> plents , , •) . institu :TT ers and ' of pro-House- Em- *\ -tions : . ,. own perty holds ploy- , sér­ac-,. r J and ees ving count trans- , _ . house-wor- fer In- , ,. holds kers come Not 
secto­
rized The The 
Rest of Euro- member 
the pean coun-
world Un- tries of 
Ion the EU The 
Institu­
tions of 
the EU Third 
coun­
tries 
and 
Inter­
natio­
nal 
organi­
zations Total 
D.7 Other current transfers 
. from general government 
. from other sectors 
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 
.. from institutions of the EC 
D.75 . Miscellaneous current transfers 
.. from general government 
.. from other sectors 
... GNP based fourth own resource i.i.ijXuV.'.i.v.O.'.i.'.'.1.'.'.'.1.' T.'.U.OJX'.'.'.'.'. [OJlftiJX^^O.OK'KK'j.'JlM'JM XOHOIOXKôy.O''iViï AW.M.W.W.W.ftO.WJ.W.}îiJjjj.'j.' 
Total resources 
') until 2003 breakdown of corporations by owner and breakdown of private households by groups voluntary 
Total 
Eco­
nomy 
n.2 Secondary distribution of Income account 
Uses 
D.5 Current taxes on Income, wealth etc. 
D.51 . Taxes on income 
D.59 . Other current taxes 
D.61 . Social contributions 
D.611 .. Actual social contributions 
D.6111 ... Employers' actual social contributions 
.... Compulsory employers' actual social D. 61111 ' . contributions 
.... Voluntary employers' actual social 
D.61112 .. . 
contributions 
D.6112 ...Employees' social contributions 
D.61121 .... Compulsory employees'social contributions 
D.61122 Voluntary employees'social contributions 
... Social contributions by self- and non 
D.6113 , . 
employed persons 
.... Compulsory social contributions by self- and 
D.61131 , , 
n on-employed persons 
.... Voluntary social contributions by self- and 
D.611.12 , , 
n on-employed persons 
D.612 ... Imputed social contributions 
. Social benefits other than social transfers in 
D« 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 | *) *) 
: Non- Public Private 
| finan- non- non-
• cial finan- finan-
| corpo- cial cial 
! rations corpo- corpo-
j rations rations 
' 
, . ..•: : Finan-
! ciat 
| corpo-
; rations 
; Noikfiriancial.accoiuits.hy..§ectox^..d£tails:J.+2.4 
— . Insu- | Other nt. Other ranee : mone- — _, : _ Cen- _, , „ finan- Finan- corpo- : Gene- , State Local Cen- tary , . . , .. : , tral . _ dal cial rations :ral go- go- go-tral finan- ... : go-. . Inter- auxili- and • vern- vern- vern-bank cial ... ! vern-medl- aries pen- : ment A ment ment corpo- , , • ment aries sion : rations , . : funds • 
m m i- -
: -' 
-
, 
' 
... • 
j.^.1 A ji : , 
-i : 
" 
• 
, r tu I < „** „*\ Non-• Em- Recl-: . , profit 
Social! P'°y- -) penU Institu :„ ers and _' of pro- ,, secu- : House- Em- r -tions ,.:,,. own perty rity ; holds ploy- . ser-, . : ac- and funds : ees ving 
• count trans- . : „ . house-• wor- fer in- . ,_, • , holds ; kers come 
' 
"1" " 
, llliill 
111 lllll 
111 iiiliii iSP* ' 
' | 
. | 
t| . 
; j Not 
j secto-
| rized 
••• 
: ...Table..! 
| The The • „ , the :Rest of Euro- member , : , Institu-: the pean coun- ., : .. ,T . . , tions of : world Un- tries of A. _TT 
: . ... ™, the EU 
i ion the EU 
: . 
1 : : Third 
coun­
tries 
and 
Inter­
natio­
nal 
organi­
zations 
! 
'• 
\ 
1 
| j Total 
r^ 
') until 2003 breakdown of corporations by owner and breakdown of private households by groups voluntary 
Non-financial accounts by sector, details: t+24 Table 7 
Total 
Eco­
nomy *) ") 
Non- Public Private 
finan- non- non-
clal finan- flnan-
corpo- cial dal 
rations corpo- corpo­
rations rations ,... Insu-
°ther r..». 
Other ranee „. mone- _ _. Finan- _ finan- Finan- corpo-cial , „ cial cial rations tral finan- ... corpo- , , , Inter- auxili- and J bank dal rations medi- aries pen-corpo­
rations aries sion 
funds Cen-Gene- , State Local Social tral ralgo- go- go- secu-
vern- vern- vern- rity 
ment ment ment funds 
ment r, « . Non-Em- Reci-, . A profit ploy- plenU jnst|tu 
:TT ers and _ of pro- Al ; House- Em- -tions i . ,. own . perty ! holds ploy- r , ser-; ac- and • ees ving : count trans- , . , house-wor- fer in- ... holds kers come Not 
secto­
rized The The 
Rest of Euro- member 
the pean coun-
world Un- tries of 
ion the EU The 
Institu­
tions of 
the EU Third 
coun­
tries 
and 
Inter­
natio­
nal 
organi­
zations Total 
D.71 
D.72 
D.73 
D.74 Other current transfers 
. to general government 
. to other sectors 
. Net non-life insurance premiums 
. Non-life Insurance claims 
. Current transfers within general government 
. Current international cooperation 
.. to institutions of the EC 
. Miscellaneous current transfers 
.. to general government 
.. to other sectors 
... GNP based fourth own résout re 
Disposable income, net 
Total uses !|X0X0I''|''Ï!0XÙXMX'Ï0)|'.|À0K kWffffwJffffftf/S 
.),. , 1. • Kl |.\ l'un'; > !,iiil.i;\ 
Non-financial accounts by sector, details: t + 24 Table 7 
11.611 
D.8 II.4.1 Use of disposable income account 
Resources 
Disposable income, net 
Adjustment for the change in net equity of 
households on pension funds 
Total resources Total 
Eco­
nomy *) ") 
Non- Public Private 
finan- non- non-
cial finan- finan-
corpo- rial cial 
rations corpo- corpo­
rations rations ~ , Insu-
Other _,. Other ranee ». mone- _, Finan- finan- Finan- corpo-
clal cial cial rations tral finan- ... , corpo- , , inter- auxill- and bank cial rations medi- aries pen-corpo-aries sion rations „ , funds Cen-Gene- , State Local Social tral rai go- go- go- secu-go- , vern- vern- vern- rity vern- „ . ment ment ment funds ment Em- Red- ^ profit ploy- plents ^^ 
ers and of pro-House- Em- -tions . own perty holds ploy- . sér­ac- and ees ving count trans- , , , house-wor- fer in- , ,, , holds kers come Not 
secto­
rized 
• Third 
coun-
The The „., tries The Rest of Euro- member . , and Institu­tive pean coun- , , inter-. . TT ' . - tions of world Un- tries of . _.. natio-• ™, the F.U ion the EU nal 
organi­
zations Total 
n.4.1 Use of disposable income account 
Uses 
P.3 Final consumption expenditure 
P.31 . Individual consumption expenditure 
P.32 . Collective consumption expenditure 
Adjustment for the change In net equity of 
households on pension funds 
n.8n Net saving 
B.l2 Current external balance 
Total uses — ! v * 
••. ;;.. 
I 1! .. 1 ! 
^ 
N 
hJ 
*) until 2003 breakdown of corporations by owner and breakdown of private households by groups voluntary 
..N.Q.n-jSr$ncial..a^ JM.Ç.l. 
! *) ") | 
: Non- Public Private; 
Total j finan- non- non- j 
Eco- ; cial finan- finan-
nomy • corpo- cial cial 
; rations corpo- coipo- j 
: rations rations : Flnan-
j cial 
: corpo­
rations Other 
mone-
Cen- tary 
tral flnan-
bank cial 
corpo­
rations Other Insu- • 
ranee j 
finan- Finan- corpo- jGene-
cial cial rations -rai go-
Inter- auxlll- and j vern-
medi- aries pen- j ment Cen­
tral 
go-j *) 
: Em-
State Local Social! p,°y", *) 
;„ ers and 
go- go- secu- -House- Em-
_>. : a. .j own I 
vern- vern- rity : holds Pay­ment ment funds : 
aries sion 
funds ac­
count 
wor­
kers ees ') 
Reci­
pients 
of pro­
perty 
and 
trans-
.fer in­
come Non- j 
profit : 
institu: The The The : Not :Rest of Euro- member . -tions ; • , Instltu-: secto- : the pean coun-ser- : _. A : ,, ,, , , , tions of : rized • world Un- tries of ving 
house-j 
holds : Ion the EU the EU Third j 
coun- j 
tries I 
and j 
inter- j Total 
natio- j 
nal ; 
organl-j 
zationsj 
ni.1.1: Change in net worth due to saving and capital transfers account 
Changes in liabilities and net worth • 
B.Kn Net saving/Current external balance 
D.9 Capital transfers 
. from general government 
. from other sectors 
D.91 . Capital taxes 
.. from general government 
.. from other sectors 
D.92 • Investment grants 
.. from general government 
.. from other sectors 
D.99 • Other capital transfers 
.. from general government 
.. from other sectors 
Total change in liabilities and net worth — 
• — — "— •..„ — — iS&Ssg 
:$&&¥•:;: 
SSSSSa:; 
?:?:¥:•:&:•:• 'ffifflffi. :&*:•:•&•:£ 
II11IË i*:§:§ë*5: ïllll 
ë^js*™ Sips*; 
SSSSj i:i;P::S*S: 
ni.l.r. Change in net worth due to saving and capital transfers account j • j { { j 
Changes in assets : : : : i i 1 
D.9 Capital transfers 
. to general government 
. to other sectors 
D.91 . Capital taxes 
.. to general government 
.. to other sectors 
D.92 . Investment grants 
.. to general government 
.. to other sectors 
D.99 • Other capital transfers 
.. to general government 
.. to other sectors 
Changes in net worth due to saving and capital 
B.10.1 , 
transfers 
Total changes in assets y;£*;:| 
., SSSg;::: Umiiiiiii 
:•:§£•:•:•:•:•:•:¥! SW:-:&Sw5 
WMma 
ï:É?É£& 
Sggggffî. 
') until 2003 breakdown of corporations by owner and breakdown of private households by groups voluntary 
Non-financial accounts by sector, details: t+24 Table 7 
Total 
Eco­
nomy 
EH 1.2 Acquisitions of non-financial assets account 
Changes in liabilities and net worth 
Changes in net worth due to saving and capital 
transfers 
K.l Consumption of fixed capital 
Total change in liabilities and net worth 
ni.1.2 Acquisitions of non-financial assets accou 
Changes in assets 
P.5 Gross capital formation 
P.51 . Gross fixed capital formation 
P.52 . Changes in inventories 
P.53 . Acquisitions less disposals of valuables 
Acquisitions less disposals of non-produced non 
financial assets 
B.9 Net lending (+y Net borrowing (-) 
Total change in assets nt ; Non-
! finan­
cial 
corpo­
rations *) 
Public 
non-
finan­
cial 
corpo­
rations •) 
Private 
non-
finan­
cial 
corpo­
rations i Flnan-
: dal 
! corpo­
rations Cen­
tral 
bank Other 
mone­
tary 
finan­
cial 
corpo­
rations Other 
finan­
cial 
inter­
medi­
aries Finan­
cial 
auxili­
aries Insu­
rance 
corpo­
rations 
and 
pen­
sion 
funds jGene-
iral go-
j vern-
; ment Cen­
tral 
go­
vern­
ment State 
go­
vern­
ment Local 
go­
vern­
ment Social 
secu­
rity 
funds jHouse-
! holds *) 
Em­
ploy­
ers ant 
own 
ac­
count 
wor­
kers ;> 
Em­
ploy­
ees *) 
Reci­
pients 
of pro­
perty 
and 
trans­
fer in­
come Non­
profit 
institu 
-tions 
ser­
ving 
house­
holds | Not 
; secto-
: rized j The 
•Rest of Euro 
: the pean 
:' world Un-
: ion 
PU M^fâk$8$M iEI The 
member 
coun­
tries of 
the EU The 
Institu­
tions of 
the EU Third 
coun­
tries 
and 
inter­
natio­
nal 
organi­
zations 
i ' 
! '! "UJ 
* 
•• "' : | 
.?.::•. \ 
nun IIIIII„..„ ., 
• •• 1* 
1 
1 j Total 
\ until 2003 breakdown of corporations by owner and breakdown of private households by groups voluntary 
Table 8 Financial accounts oy sector (transactions; cufibuiiucueu diiu non- coiiboiiuaieu 
(National currency) 
sectors and 
sub-sectors 
Changes in financial assets and liabilities ESA Non-financial 
corporations 
S.11 Financial corporations 
Total 
S.12 Monetary 
financial 
Institutions 
S.121/3.122 Other 
financial 
Intermediaries 
S.123 Financial 
auxiliaries Insurance 
corporations and 
pension funds 
S.126 General government 
Total 
S.13 Central and state 
government 
S.1311/S.1312 Local 
government 
S.1313 Social security 
funds Households 
and 
non-profit Institutions 
serving households 
S.14/S.15 Rest of the world 
S.2 
Net acquisition of financial assets 
Monetary gold and SDRs 
Currency and deposits 
Securities other than shares 
Loans 
Shares and other equity 
Insurance technical reserves 
Net equity of households In life Insurance 
reserves and In pension funds reserves 
Prepayments of Insurance premiums and 
reserves for outstanding claims 
Other accounts receivable 
Net incurrence of liabilities 
Currency and deposits 
Securities other than shares 
Loans 
Shares and other equity 
Insurance technical reserves 
Net equity of households In life Insurance 
reserves and In pension funds reserves 
Prepayments of Insurance premiums and 
reserves for outstanding claims 
Other accounts payable 
Net lending (*) I net borrowing M F. A 
F.1 
F.2 
F.3 
F.4 
F.6 
F.6 
F.62 
F.7 
F.L 
F.2 
F.3 
F.4 
F.5 
F.6 
F.82 
FJ 
B.9 
6 
Table 9 : Balance sheets for financial assets and liabilities consolidated and non-consolidated 
(National currency) 
Financial assets and liabilities Non-financial 
corporations 
S.11 Financial corporations 
Total 
S.12 Monetary 
financial 
Institutions 
S.121/S.122 Other 
financial 
Intermediaries 
S.123 Financial 
auxiliaries Insurance 
corporations and 
pension funds 
S.125 General government 
Total 
S.13 Central and state 
government 
S.1311/S.1312 Local 
government 
S.1313 Social security 
funds Households 
and 
non-profit institutions 
serving households 
S.14/S.15 Rest of the world 
S.2 
Financial assets 
Monetary gold and SDRs 
Currency and deposits 
Securities other than shares 
Loans 
Shares and other equity 
Insurance technical reserves 
Net equity of households In life Insurance 
reserves and In pension funds reserves 
Prepayments of insurance premiums and 
reserves for outstanding claims 
Other accounts receivable 
Liabilities 
Currency and deposits 
Securities other than shares 
Loans 
Shares and other equity 
Insurance technical reserves 
Net equity of households In life Insurance 
reserves and In pension funds reserves 
Prepayments of Insurance premiums and 
reserves for outstanding claims 
Other accounts payable 
Net financial assets AF.82 
AF.7 
AF.L 
AF.2 
AF.3 
AF.4 
AF.6 
AF.6 
AF.82 
AF.7 
BF.90 
ts*> 
Q>' 
Table 10: Government expenditure by function 
Final ofwhich: Subsidies Property Social Other Gross Capital Total 
consump- compen- income benefits current capital transfers outlays 
tion sation of (consoli- other than transfers formation (consoli-
expenditure employees dated) social (consoli- dated) 
transfers in dated) 
kind 
P.3 D.1 D.3 D.4 D.62 D.7 P.5 D.9 
1 j General public services 
2 Defence affairs and services 
3 Public order and safety affairs and services 
4 Education affairs and services 
5 Health affairs and services 
6 services 
7 Housing 
8 and services 
9 Fuel and energy affairs and services 
10 affairs and services 
11 and services 
12 and services 
13 Other economic affairs and services 
14 Expenditure not classified by major group 
[Total |__ 
Table 11: Detailed tax receipts by type of tax and by receiving subsector 
SNA Code General Central State Local Social The 
govern- govern- govern- govern- security institu-
ment ment ment ment funds tions of 
the EC Total 
Detailed tax receipts by sector 
D.5 Current taxes on income, wealth etc. 
D.51 Taxes on income 
D.51 a Taxes on individual or households income 
D.51 b Taxes on the income of corporations 
D.51c Taxes on capital gains 
D.51 d Taxes on winnings from lotteries or gambling 
D. 59 Other current taxes 
D.59.1 Current taxes on capital 
D.59.1a Current taxes on land and buildings 
D. 59.1 b Current taxes on net wealth 
D.59.1 c Current taxes on other assets 
D.59.2 Miscellaneous current taxes 
D.59.2a Poll taxes 
D.59.2b Expenditure taxes 
D.59.2c Payments by households to obtain certain 
licences 
D.59.2d Taxes on international transactions 
D.2 Taxes on production and imports 
D.21 Taxes on products 
D.211 Value added type taxes 
D.212 Taxes and duties on imports excluding VAT 
D.2121 Import duties 
D.2122 Taxes on imports, excluding VAT and duties 
D.2122a General sales or turnover taxes 
D.2122b Excise duties 
D.2122c Taxes on specific services 
D.2122d Profits of import monopolies 
D.2122e Taxes resulting from multiple exchange rates 
D.214 Taxes on products, except VAT and import taxes 
D.214a General sales or turnover taxes 
D.214b Excise duties 
D.214c Taxes on specific services 
D.214d Taxes on financial and capital transactions 
D.214e Profits of fiscal monopolies 
^^ 
Table11: Detailed tax receipts by type of tax and by receiving subsector 
SNA Code 
D.29 Other taxes on production 
D.29a Taxes on payroll and workforce 
D.29b Recurrent taxes on land, buildings or other 
structure 
D.29c Business and professional licences 
D.29d Taxes on the use of fixed assets or other 
activities 
D.29e Stamp taxes 
D.29f Taxes on pollution 
D.29g Taxes on international transactions 
D.91 Capital taxes 
D.91 a Capital levies 
D.91b Taxes on capital transfers 
Total tax receipts 
D.611 Actual social contributions 
D.6111 - Employers' actual social contributions 
D.6112 - Employees' social contributions 
D.6113 - Social contributions by self-and non-employed 
persons 
Total receipts from taxes and social contributions General Central State Local Social The Total 
govern- govern- govern- govern- security instru­
ment ment ment ment funds tions of 
the EC 
t 
5^S 
Table 12: Cross classification of production account by industry 
and by sector 
industries: 
sectors: 
variables: A 17 NACE Rev. 1 
S11 
S 12 
S 13 
S14 + S15 
output 
- market 
- own final use 
- other non-market 
prices: intermediate consumption 
gross value added 
- compensation of employees 
- other taxes less subsidies on production 
- operating surplus, net 
- consumption of fixed capital 
current and constant 
Table 13: Cross classification of gross fixed capital formation by 
industry and by product 
industries: A 31 NACE Rev. 1 
products: Pi 3 CPA 
variable: gross fixed capital formation 
prices: current and constant 
Table 14: Cross classification of fixed assets by industry and by product 
industries: A 31 NACE Rev. 1 
Pi3 CPA products: 
variables: 
prices: fixed assets, gross 
fixed assets, net 
current replacement costs 
historic cost value 
constant replacement costs 
•S~^ 
Table 15: A supply table at bas., prices, including a transformation into purchaser's prices prices: current and constant 
n=17, m=60 
Table 16: A supply table at basic prices, including a transformation into purchaser's prices prices: current and constant 
n=60, m=60 
1 
2 
3 
4 
Products 
(CPA) 
m 
(Adjustm. items) 
1(1) 
Total ofwhich: 
Market output 
For own final use 
Other non-market 
output (1) 
(2) 
(3) Industries (NACE) 
1 2 3 4... ....n 
(1) 
Output by product and by industry at 
basic prices 
Total output by industry 2(1) 
(2) Imports 
cif 
(3) 
a)intra 
EU 
b)extra 
EU 
0 
0 Total supply 
at basic 
prices 
(4) Trade and 
transport margins 
(5) 
0 
0 
0 Taxes less 
subsidies on 
products 
(6) Total supply 
at purchasers' 
prices 
(7) 
Table 17: A use table at purchasers' prices 
n=17, m=60 prices: current and constant 
Table 18: A use table at purchasers' prices 
n= 60, m= 60 prices: current and constant 
w 1 
2 
3 
Products 
(CPA) 
m 
(Adjustment items) 
Id) 
Comp.ofempl. 
Oth. net taxes on 
production 
Cons, of fixed capital 
Oper.surplus, net 
K3) 
1(1)+ 1(3) (1) 
(2) 
(3) 
(4) 
(5.) Industries (NACE) 
1 2 3 .... ...n 
(1) 
Intermediate consumption at purchasers' 
prices by product and by industry 
Total interm. consumption by industry 
Components of value added by industry 
Value added by industry 
Output at basic prices by industry 1(1) 
(2) Final uses 
a) b) c) d) e) f) 
(3) 
Final uses at purchasers' 
prices: 
Final consumption exp: 
a) by households 
b) by NPISH 
(t+12 together with a)) 
c) by government 
Gross capital formation: 
d) gr. fixed capital form. 
e) changes in inventories 
and valuables 
f) exports 
- intra EU 
- extra EU 
Total final uses by type 1(3) 
(4) E(1) + 
2(3) 
(5) 
Total use 
Table 19: A symmetric input-output table at basic prices (product by product) 
n=60 prices: current and constant 
1 
2 
3 
Products 
(CPA) 
n 
2(1) 
Taxes on products 
Subsidies on products (-) 
1(1)+ (3) 
Comp.ofempl. 
Other net taxes on 
production 
Cons, of fixed capital 
Oper. surplus, net 
2(5) 
1(1)+ (3)+£(5) 
Imports 
(7)+(8) 
Fixed capital formation 
Fixed capital stock 
Labour inputs (D 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) Product (CPA) 
1 2 3 .... ...n 
(1) 
Intermediate consumption at basic prices 
(product by product) 
Total interm.cons.at basic prices by 
product 
Net taxes on products by product 
Total interm. cons, at purchasers' prices 
by product 
Components of value added by product 
Value added by product 
Output at basic prices by product 
Imports cif by product 
Supply at basic prices by product 2(1) 
(2) Final uses 
a) b) c) d) e) f) 
(3) 
Final uses at basic' 
prices: 
Final consumption exp: 
a) by households 
b) by NPISH 
c) by government 
Gross capital formation: 
d) gr. fixed capital form. 
e) changes in inventories 
and valuables 
f) Exporte 
- intra EU 
- extra EU 
Final use at basic prices 
by type 
Net taxes on products by 
type of final use 
Total final uses by type at 
purchasers' prices 2(3) 
(4) 2(1) + 
2(3) 
(5) 
Total use at bas.pr. 
Tot.net tax. prod. 
Total use at 
purch.p. 
Table 20: A symmetric input-output table for domestic output (product by product) 
n=60, prices : current and constant 
Products (CPA) 
1 2 3 .... ...n 
ill 2(1) m. Final uses 
a) b) c) d) e) f) 
J2L 2(3) 
_[4) 2(1) + 
2(3) 
(5) 
Products 
(CPA) (1) For domestic output: Intermediate 
consumption at basic prices (product by 
product) For domestic output: 
Final uses at basic 
prices: 
Final consumption exp: 
a) by households 
b) by NPISH 
c) by government 
Gross capital formation: 
d) gr. fixed capital form. 
e) changes in inventories 
and valuables 
f) Exports 
- intra EU 
- extra EU 
2(i; (2) Total interm.cons. of domestic output at 
basic prices by product Final use of domestic 
output at basic prices Total 
dom. 
output 
Use of imported products (3) Total interm. cons, of imported products 
by product Final use of imported 
products at basic prices Total 
imports 
(A Net taxes on products 
(4) Net taxes on products for intermediate 
consumption by product Net taxes on products for 
final use Total net 
taxes on 
products 
2 (DM3)+ (4) (5) Total interm. cons, at purch.p. by product Total final uses by type Total use 
Comp.ofempl. 
Other net taxes on 
production 
Cons, of fixed capital 
Oper. surplus, net (6) 
Components of value added by product 
2(5) (7) Value added by product 
Z(1) + (3)+Z(5) (8) Output at basic prices by product 
Fixed capital formation 
Fixed capital stock 
Labour inputs (9) 
Table 21 : A symmetric input-output table for imports (product by product) 
n=60, prices : current and constant 
X 
0 1 
2 
3 
Products 
(CPA) 
n 
2(1) 
Use of domestic output 
Net taxes on products 
2(1)+ (3)+ (4) 
Comp.ofempl. 
Other net taxes on 
production 
Cons, of fixed capital 
Oper. surplus, net 
2(5) 
1(1)+ (3)+1(5) 
Fixed capital formation 
Fixed capital stock 
Labour inputs (1) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) Products (CPA) 
1 2 3 .... ...n 
(1) 
For imports: Intermediate consumption at 
basic prices (product by product) 
Total interm.cons. of imports at basic 
prices by product 
Total interm. cons, of domestic output by 
product 
Net taxes on products for intermediate 
consumption by product 
Total interm. cons, at purch.p. by product 
Components of value added by product 
Value added by product 
Output at basic prices by product 2(1) 
(2) Final uses 
a) b) c) d) e) f) 
(3) 
For imports: Final uses 
at basic prices: 
Final consumption exp: 
a) by households 
b) by NPISH 
c) by government 
Gross capital formation: 
d) gr. fixed capital form. 
e) changes in inventories 
and valuables 
f) Exports 
- intra EU 
- extra EU 
Final use of imports at 
basic prices 
Final use of domestic 
output at basic prices 
Net taxes on products for 
final use 
Total final uses by type 2(3) 
(4) . 2(1) + 
2(3) 
(5) 
Total 
import 
Total 
domestic 
output 
Total net 
taxes on 
products 
Total use 
Table Nr. 22: 
Code 
B1.g 
B1.g 
D.1 
B2.G Tables by industry and by region (NUTS II), current prices 
List of variables Breakdown t + month 
1. Gross value added at basic prices 
2. Gross value added at basic prices 
3. Compensation of employees 
4. Gross fixed capital formation 
5. Employment 
-Total 
- Employees A17 
A17 
A17 
A17 
A17 24 
18 
24 
24 
24 
24 
Table Nr. 23: 
Code 
Bl.g Tables by industry and by region (NUTS III), current prices 
List of variables Breakdown t +month 
A3 24 1. Gross value added at basic prices 
2. Employment 
- Total 
- Employees A3 
A3 18 
18 
Table Nr. 24: Households accounts by regions (NUTS II), current prices 
Allocation of primary income account of households 
Uses Resources 
D.4 Property income 
B.5 PRIMARY INCOME B.2/B.3 OPERATING SURPLUS/ 
MIXED INCOME 
D.1 Compensation of employees 
D.4 Property income 
Secondary distribution of income account of households 
Uses 
D.5 Current taxes on income, wealth etc. 
D.61 Social contributions 
D.7 Other current transfers 
B.6 DISPOSABLE INCOME B.5 
D.62 
D.7 Resources 
PRIMARY INCOME 
Social benefits other 
than social benefits in kind 
Other current transfers 
^ M, 
Table 25: Cross classification of production account by industry 
and by sector 
industries: 
sectors: 
variables. A 60 NACE Rev. 1 
S11 
S 12 
S 13 
S 14 
S 15 
output 
- market 
- own final use 
- other non-market 
prices: intermediate consumption 
gross value added 
- compensation of employees 
- other taxes less subsidies on production 
- operating surplus, net 
- consumption of fixed capital 
current and constant 
Table 26: Cross classification of gross fixed capital formation by 
industry and by product 
industries: A 31 NACE Rev. 1 
products: P 60 CPA 
variable: gross fixed capital formation 
prices: current and constant 
5M^ 
Table 27: Backward calculations 
tables, foreseen for recalculation 
table 1: Main aggregates 
table 2: Main aggregates general government 
table 3: Tables by industry 
table 5: Household final consumption expenditure 
by purpose 
table 6: Non-financial sector accounts, 
main aggregates 
table 10: Government expenditure by function annual 
periods 
88-94 
70-87 
70-94 
70-94 
80-94 
90-94 
80-89 
90-94 transmission 
Mar-98 
Dec-98 
Dec-98 
Dec-00 
Dec-00 
Dec-98 
Dec-99 
Dec-00 quarterly 
periods 
88-94 
80-87 transmission 
Mar-98 
Dec-98 
^M"b 


ISSN 0254-1475 
COM (94) 593 final 
DOCUMENTS 
EN 17 
Catalogue number : CB-CO-94-619-EN-C 
ISBN 92-77-83484-6 
Office for Official Publications of the European Communities 
Lr2985 Luxembourg