Source: EURLEX
Language: en
Format: md

**Council of the**
**European Union**

**Interinstitutional File:**

**2021/0407 (COD)**

**COVER NOTE**

**Brussels, 17 December 2021**
**(OR. en)**

**15161/21**
**ADD 1**

**ECOFIN 1269**
**STATIS 57**
**CODEC 1680**

From: Secretary-General of the European Commission, signed by Ms Martine
DEPREZ, Director

date of receipt: 10 December 2021

To: Mr Jeppe TRANHOLM-MIKKELSEN, Secretary-General of the Council
of the European Union

No. Cion doc.: COM(2021) 776 final

Subject: ANNEX 1 to the Proposal for a Regulation of the European Parliament
and of the Council **amending Regulation (EU) No 549/2013 and**
**repealing 11 legal acts in the field of National Accounts**

Delegations will find attached document COM(2021) 776 final.

Encl.: COM(2021) 776 final

15161/21 ADD 1 JGR/sr

## ECOMP 1A EN

EUROPEAN

COMMISSION

**ANNEX**

**to the**

Brussels, 10.12.2021
COM(2021) 776 final

ANNEX 1

**Proposal for a Regulation of the European Parliament and of the Council**

**amending Regulation (EU) No 549/2013 and repealing 11 legal acts in the field of**

**National Accounts**

# **EN EN**

**ANNEX 1**

Annex A to Regulation (EU) No 549/2013 is amended as follows:

1. Paragraph 1.51(b) is replaced by the following:

“(b) expenditures on weapon systems that meet the general definition of assets have been
classified as fixed capital formation, rather than intermediate consumption;”

2. Paragraph 1.51 (h) is replaced by the following:

“(h) the treatment of super dividends paid by public corporations has been clarified, i.e. they
are to be considered as exceptional payments and treated as withdrawals from equity;”

3. Diagram in paragraph 1.118 is labelled:

“Diagram 1.1 - A diagram of the sequence of accounts”

4. In Paragraph 3.98 the following text “ Final consumption expenditure (P.3) by
government includes two categories of expenditures, similar to those by NPISHs:” is
replaced by the following:

“Final consumption expenditure (P.3) by general government includes two categories of
transactions, similar to those by NPISHs:”

5. Paragraph 3.105 is replaced by the following:

“Alternatively individual consumption expenditure of general government corresponds to
division 15 of the classification of individual consumption by purpose (Coicop), which
includes the following groups:

15.1 Housing (equivalent to COFOG group 10.6)

15.2 Health (equivalent to COFOG groups 7.1 to 7.4)

15.3 Recreation and culture (equivalent to COFOG groups 8.1 and 8.2)

15.4 Education (equivalent to COFOG groups 9.1 to 9.6)

15.5 Social protection (equivalent to COFOG groups 10.1 to 10.5 and group 10.7).”

6. Paragraph 3.124 is replaced by the following:

“Definition: gross fixed capital formation (P.51g) consists of resident producers’ acquisitions,
less disposals, of fixed assets during a given period plus certain additions to the value of nonproduced assets realised by the productive activity of producer or institutional units. Fixed
assets are produced assets used in production for more than one year.”

7. Paragraph 3.132(c) is replaced by the following:

“(c) computer software and databases to be used in production for more than one year;”

8. Paragraph 3.138 is replaced by the following:

“Costs of ownership transfer can apply to both produced assets, including fixed assets, and
non-produced assets, such as land.

These costs are included in the purchasers’ prices in the case of produced assets. They are
separated from the purchases and sales themselves in the case of land and other non-produced
assets, and recorded under a separate heading (P.512) in the classification of gross fixed
capital formation.”

# EN 1 EN

9. In paragraph 3.181 the text, “The transfer of existing goods is recorded as a negative
expenditure (acquisition) for the seller and a positive expenditure (acquisition) for
the purchaser”, is replaced by the following:

“The transfer of existing goods is recorded as a negative expenditure (disposal) for the seller
and a positive expenditure (acquisition) for the purchaser.”

10. In paragraph 4.40 the following text is deleted:

“Other subsidies on production (D.39) are recorded as resources in the generation of income
accounts of the industries or sectors which receive them.”

11. Paragraph 4.50 is replaced by the following:

“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 it is actually paid or added to the principal
outstanding. When it is not paid, the increase in the principal is recorded in the financial
account as an acquisition of a financial asset by the creditor and an equal acquisition of a
liability by the debtor.”

12. In paragraph 4.82 the text, “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 concerning the point in 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.”, is replaced by the following:

“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 concerning
the point in time at which such taxes are recorded. Income taxes retained at source, such as
Pay-As-You-Earn (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.”

13. Paragraph 4.93(a) is replaced by the following:

“(a) social contributions paid by persons who are not legally obliged to contribute to a social
security Fund;”

14. Paragraph 5.117 is replaced by the following:

“The distinction between transactions in loans (F.4) and transactions in deposits (F.22) is that
a creditor offers a non-standardised non-negotiable contract in the case of a loan, but not in
the case of a deposit.”

15. Paragraph 5.235 is replaced by the following:

“FISIM accrued but not yet paid is included with the corresponding financial instrument and
prepayment of insurance premiums is included in insurance technical reserves (F.61); in
neither case is there an entry in trade credits and advances.”

16. Paragraph 5.236(c) is replaced by the following:

“(c) rental of buildings accruing over time; and”

17. Paragraph 7.88 is replaced by the following:

# EN 2 EN

“The market value of forwards can switch between positive (asset) and negative (liability)
positions depending on price movements in the underlying items and thus they can switch
being assets and liabilities for the writers and holders. Some forwards operate on margin
payments, where profits or losses are settled daily; in these cases the balance sheet value will
be zero.”

18. In Chapter 8, Table 8.1 is replaced by the following:

# EN 3 EN

“Table 8.1 — Synoptic presentation of the accounts, balancing items and main aggregates

|Accounts|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9|Balancing items|Col11|Main<br>aggregates|
|---|---|---|---|---|---|---|---|---|---|---|---|
|**Full sequence of accounts for institutional sectors**|**Full sequence of accounts for institutional sectors**|**Full sequence of accounts for institutional sectors**|**Full sequence of accounts for institutional sectors**|**Full sequence of accounts for institutional sectors**|**Full sequence of accounts for institutional sectors**|**Full sequence of accounts for institutional sectors**|**Full sequence of accounts for institutional sectors**|**Full sequence of accounts for institutional sectors**|**Full sequence of accounts for institutional sectors**|**Full sequence of accounts for institutional sectors**|**Full sequence of accounts for institutional sectors**|
|Current<br>accounts|I.|Production<br>account|I.|Production<br>account|||||B.1g|Value<br>added,<br>gross|Gross<br>domestic<br>product<br>(GDP)|
||II.|Distribution<br>and use of<br>income<br>accounts|II.1|Primary<br>distribution<br>of<br>income<br>accounts|II.1.1|Generation<br>of income<br>account|||B.2g<br>B.3g|Operating<br>surplus, gross<br>Mixed income,<br>gross||
||||||II.1.2|Allocation<br>of primary<br>income<br>account|II.1.2.1|Entrepreneurial<br>income<br>account|B.4g|Entrepreneurial<br>income, gross||
||||||||II.1.2.2|Allocation<br>of<br>other primary<br>income<br>account|B.5g|Balance<br>of<br>primary<br>incomes, gross|Gross<br>national<br>income<br>(GNI)|
||||II.2|Secondary<br>distribution<br>of<br>income<br>account|||||B.6g|Disposable<br>income, gross|Gross<br>national<br>disposable<br>income|

# EN 4 EN

|Col1|Col2|Col3|II.3|Redistribution<br>of income in<br>kind account|Col6|Col7|Col8|Col9|B.7g|Adjusted<br>disposable<br>income, gross|Col12|
|---|---|---|---|---|---|---|---|---|---|---|---|
||||II.4|Use<br>of<br>income<br>account|II.4.1|Use<br>of<br>disposable<br>income<br>account|||B.8g|Saving, gross|Gross<br>national<br>saving|
||||||II.4.2|Use<br>of<br>adjusted<br>disposable<br>income<br>account||||||
|Accumulation<br>accounts|III.|Accumulation<br>accounts|III.1|Capital<br>account|III.1.1|Change<br>in<br>net worth<br>due<br>to<br>saving and<br>capital<br>transfers<br>account|||B.101|Change in net<br>worth due to<br>saving<br>and<br>capital<br>transfers||
||||||III.1.2|Acquisition<br>of<br>non-<br>financial<br>assets<br>account|||B.9|Net<br>lending/net<br>borrowing||
||||III.2|Financial<br>account|||||B.9F|Net<br>lending/net<br>borrowing||

# EN 5 EN

|Col1|Col2|Col3|III.3|Other<br>changes in<br>assets<br>account|III.3.1|Other<br>changes in<br>volume of<br>assets<br>account|Col8|Col9|B.102|Changes in net<br>worth, due to<br>other changes<br>in volume of<br>assets|Col12|
|---|---|---|---|---|---|---|---|---|---|---|---|
||||||III.3.2|Revaluation<br>accounts|||B.103|Changes in net<br>worth due to<br>nominal<br>holding<br>gains/losses||
||||||||III.3.2.1|Neutral holding<br>gains/losses<br>account|B.1031|Changes in net<br>worth due to<br>neutral holding<br>gains/losses||
||||||||III.3.2.2|Real<br>holding<br>gains/losses<br>account|B.1032|Changes in net<br>worth due to<br>real<br>holding<br>gains/losses||
|Balance<br>sheets|IV.|Balance<br>sheets|IV.1|Opening<br>balance sheet|||||B.90|Net worth|National<br>worth|
||||IV.2|Changes<br>in<br>balance sheet|||||B.10|Changes in net<br>worth, total|Changes in<br>national<br>worth|
||||IV.3|Closing<br>balance sheet|||||B.90|Net worth|National<br>worth|

# EN 6 EN

|Transaction<br>accounts|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9|Col10|Col11|Col12|
|---|---|---|---|---|---|---|---|---|---|---|---|
||0.|Goods<br>and<br>services<br>account||||||||||
|**Rest of the world account (external transactions account)**|**Rest of the world account (external transactions account)**|**Rest of the world account (external transactions account)**|**Rest of the world account (external transactions account)**|**Rest of the world account (external transactions account)**|**Rest of the world account (external transactions account)**|**Rest of the world account (external transactions account)**|**Rest of the world account (external transactions account)**|**Rest of the world account (external transactions account)**|**Rest of the world account (external transactions account)**|**Rest of the world account (external transactions account)**|**Rest of the world account (external transactions account)**|
|Current<br>account|V.|Rest of the<br>world<br>account|V.I|External<br>account<br>of<br>goods<br>and<br>services|||||B.11|External<br>balance<br>of<br>goods<br>and<br>services|External<br>balance of<br>goods and<br>services|
||||V.II|External<br>account<br>of<br>primary<br>income<br>and<br>current<br>transfers|||||B.12|Current<br>external<br>balance|Current<br>external<br>balance|
|Accumulation<br>accounts|||V.III|External<br>accumulation<br>accounts|V.III.1|Capital<br>account|V.III.1.1|Changes in net<br>worth due to<br>current<br>external<br>balance<br>and<br>capital<br>transfers<br>account|B.101|Changes in net<br>worth due to<br>current<br>external<br>balance<br>and<br>capital<br>transfers||
||||||||V.III.1.2|Acquisition<br>of<br>non-financial|B.9|Net<br>lending/net||

# EN 7 EN

|Col1|Col2|Col3|Col4|Col5|Col6|Col7|Col8|assets account|Col10|borrowing|Col12|
|---|---|---|---|---|---|---|---|---|---|---|---|
||||||V.III.2|Financial<br>account|||B.9F|Net<br>lending/net<br>borrowing|Net<br>lending/net<br>borrowing|
||||||V.III.3|Other<br>changes in<br>assets<br>account|V.III.3.1|Other changes<br>in volume of<br>assets account|B.102|Changes in net<br>worth, due to<br>other changes<br>in volume of<br>assets||
||||||||V.III.3.2|Revaluation<br>accounts|B.103|Changes in net<br>worth, due to<br>nominal<br>holding<br>gains/losses||
|Balance<br>sheets|||V.IV|External<br>assets<br>and<br>liabilities<br>account|V.IV.1|Opening<br>balance<br>sheet|||B.90|Net worth|Net<br>external<br>financial<br>position|
||||||V.IV.2|Changes in<br>balance<br>sheet|||B.10|Changes in net<br>worth||
||||||V.IV.3|Closing<br>balance<br>sheet|||B.90|Net worth|Net<br>external<br>financial<br>position|

# EN 8 EN

”

19. Paragraph 9.61 is replaced by the following:

“However, the analytical properties of product-by-product tables and industry-by-industry
tables do not differ significantly. The differences between product-by-product tables and
industry-by-industry tables are caused by the existence of a generally limited amount of
secondary production. In practice, analytical uses of input-output tables implicitly assume an
industry technology, no matter how the tables have originally been compiled. Furthermore, in
practice, any product-by-product table is a manipulated industry-by-industry table, as it still
contains all the KAU and enterprise characteristics of the supply and use tables.”

20. Paragraph 10.27 is replaced by the following:

“For transactions in services it is frequently more difficult to specify the characteristics which
determine the physical units, and differences of opinion may arise concerning the criteria to
be used. This difficulty may concern important industries such as financial intermediation
services, wholesale and retail trade, services to enterprises, education, research and
development, health or recreation. The choice of physical units for such activities is presented
in _Handbook on prices and volume measures in national accounts_ ( [20] ).”

Footnote 20 to paragraph 10.27 is replaced by the following:

“Eurostat, Handbook on prices and volume measures in national accounts, 2016.”

21. Footnote 22 to paragraph 10.56 is replaced by the following:

“Eurostat-OECD, Eurostat-OECD Methodological manual on purchasing power parities,
2012.”

22. In paragraph 14.06 the text, “FISIM calculations concentrate on subsectors S.122 and
S.125; by convention, FISIM are not calculated for the central bank (see part VI).” is
replaced by the following:

“FISIM calculations concentrate on subsectors S.122 and S.125; by convention, FISIM are
not calculated for the central bank (see paragraph 14.16).”

23. In Chapter 15, Table 15.4 is replaced by the following:

“

|Type of transaction / other economic flow|Type of use/purchase and type of asset and type of<br>payment|
|---|---|
|Intermediate consumption|Operating lease of produced assets, e.g. machines<br>and intellectual property rights<br>Regular payments by corporations for the delivery<br>of water<br>FISIM services related to the provision of a financial<br>lease|
|Consumption of fixed capital|Only for produced assets, and for the economic<br>owner|

# EN 9 EN

|Final consumption expenditure|Operating lease of consumer durables<br>Purchase of consumer durables, including when<br>financed by a financial lease, or through a hire<br>purchase agreement|
|---|---|
|Purchase of non-financial assets<br>|<br>|
|Fixed capital formation|Purchase of produced assets (including when<br>financed via a financial lease)<br>|
|Acquisition of natural resources|Purchase of a natural resource including the right to<br>use to extinction<br>Purchase of the right to use a natural resource for<br>an extended period e.g. a fishing quota|
|Acquisition of other non-produced assets|Transferable time-share arrangements<br>Purchase of a contract transferable to a third party<br>Contracts for future production, for example<br>contracts with footballers and writers|
|Payment as property income|Resource lease, i.e. payment for short-term use of<br>natural resource|

# EN 10 EN

|Rent|Regular payments for the right to extract water<br>Financial lease, i.e. purchase of a non-financial asset<br>financed simultaneously by a loan|
|---|---|
|Income transfer<br>|Permits issued by government to undertake a<br>specific activity not dependent on qualifying<br>criteria,<br>or<br>with<br>a <br>disproportionate<br>charge<br>compared to the costs of administering the permit<br>scheme<br>Emission permits issued by the government to<br>control total emissions|
|Other taxes on production||
|Financial transaction: loan|Financial lease, i.e. purchase of a non-financial asset<br>financed simultaneously by a loan|
|Other change in volume of assets|Exhaustion of natural resources by the owner<br>Illegal logging, fishing or hunting (uncompensated<br>seizure of cultivated assets or natural resources)|
|Change in the price of assets|Expiry of contracts, licences and permits recorded<br>as assets|

”

24. In paragraph 15.27 the text, “This asset (category AN.222) is only recognised if its
value, the benefits to the holder in excess of the value accruing to the issues, is
realisable through transferring the asset. Such permits are first observed through
economic appearance of assets (category K.1, see point (g) of paragraph 6.06). If the
value of the asset is not realised it will tend towards zero as the lease period ends.”, is
replaced by the following:

“This asset (category AN.222) is only recognised if its value, the benefits to the holder in
excess of the value accruing to the issuer, is realisable through transferring the asset. Such
permits are first observed through economic appearance of assets (category K.1, see point (g)
of paragraph 6.06). If the value of the asset is not realised it will tend towards zero as the lease
period ends.”

25. Paragraph 15.32 is replaced by the following:

“When governments restrict the number of cars entitled to operate as taxis or limit the number
of casinos by issuing permits, for example, they are in effect creating monopoly profits for the
approved operators and recovering some of the profits as the fee. Such fees are recorded as
other taxes on production. This principle applies to all cases where government issues permits
to limit the number of units operating in a particular field where the limit is fixed arbitrarily
and is not dependent only on qualifying criteria.”

26. Paragraph 15.35 is replaced by the following:

“The permit to undertake specific activities as an asset first appears in the other changes in the
volume of assets account. Changes in value, both up and down, are recorded in the
revaluation account of the acquirer.”

# EN 11 EN

27. In Chapter 16, Table 16.1 is replaced by the following:

# EN 12 EN

|“|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9|Col10|Col11|Col12|Col13|Col14|Col15|Col16|Col17|Col18|Col19|Col20|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Uses|Uses|Uses|Uses|Uses|Uses|Uses|Uses|Uses|Uses|Resources|Resources|Resources|Resources|Resources|Resources|Resources|Resources|Resources|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||||
||Correspond<br>ing entries<br>of the|Correspond<br>ing entries<br>of the|||||||||||||||Correspon<br>ding<br>entries of<br>the|Correspon<br>ding<br>entries of<br>the||
|To<br>tal|Goo<br>ds<br>and<br>servi<br>ces<br>acco<br>unt|Rest<br>of<br>the<br>worl<br>d <br>acco<br>unt|Total<br>econ<br>omy|NPI<br>SHs|House<br>holds|Genera<br>l <br>govern<br>ment|Financi<br>al<br>corpora<br>tions|Non-<br>financi<br>al<br>corpora<br>tions||**Transac**<br>**tions**<br>**and**<br>**balanci**<br>**ng**<br>**items**|Non-<br>financi<br>al<br>corpora<br>tions|Financi<br>al<br>corpora<br>tions|Genera<br>l <br>govern<br>ment|House<br>holds|NPI<br>SHs|Total<br>econ<br>omy|Res<br>t of<br>the<br>wo<br>rld|<br>Goo<br>ds<br>and<br>servi<br>ces<br>acco<br>unt|To<br>tal|
|||||||||||**External**<br>**account**||||||||||
|0||0|||||||P.6<br>2|Exports<br>in<br>services||||||||0|0|
|0|0||||||||P.7<br>2|Imports<br>in<br>services|||||||0||0|
|||||||||||**Producti**<br>**on**<br>**account**||||||||||
|6|6||||||||P.1|Output||6||||6|||6|
|4||0|4|0|3|0|0|1|P.2|Interme<br>diate<br>consum<br>ption||||||||4|4|
|||||||||||**Distribu**||||||||||

# EN 13 EN

|Col1|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9|Col10|tion of<br>primary<br>income<br>account|Col12|Col13|Col14|Col15|Col16|Col17|Col18|Col19|Col20|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|6|||6||||6||D.4<br>41|Propert<br>y <br>income<br>attribut<br>able to<br>insuran<br>ce<br>policy<br>holders|5|0|0|1|0|6|0||6|
|||||||||||**Seconda**<br>**ry**<br>**distribut**<br>**ion of**<br>**income**<br>**account**||||||||||
|44||1|43|0|31|4|0|8|D.7<br>11|Net<br>non-life<br>insuran<br>ce<br>premiu<br>ms||44||||44|||44|
|45||0|45||||45||D.7<br>21|Non-life<br>insuran<br>ce<br>claims|6|0|1|35|0|42|3||45|
|||||||||||**Use of**<br>**disposa**<br>**ble**<br>**income**<br>**account**||||||||||

# EN 14 EN

|2|Col2|Col3|2|Col5|2|Col7|Col8|Col9|P.3|Final<br>consum<br>ption<br>expendi<br>ture|Col12|Col13|Col14|Col15|Col16|Col17|Col18|2|2|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|||||||||||**Financial**<br>**balance**<br>**sheet**<br>**(opening)**||||||||||
|74||0|74||40|0|9|25|AF.<br>61|Non-life<br>insuranc<br>e <br>technica<br>l <br>reserves||74||||74|||74|
|||||||||||**Financia**<br>**l **<br>**balance**<br>**sheet**<br>**(closing)**||||||||||
|81||0|81|0|44|0|11|25|AF.<br>61|Non-life<br>insuranc<br>e <br>technica<br>l <br>reserves||81||||81|||81|
|||||||||||**Financi**<br>**al**<br>**transac**<br>**tion**||||||||||
|7||0|7|0|4|0|2|1|F.6<br>1|Non-life<br>insurance<br>technical<br>reserves||7||||7|||7|
|||||||||||**Revalua**||||||||||

# EN 15 EN

|Col1|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9|Col10|tion<br>account|Col12|Col13|Col14|Col15|Col16|Col17|Col18|Col19|Col20|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|0||0|0|0|0|0|0|0|AF.<br>61|Non-life<br>insuranc<br>e <br>technica<br>l <br>reserves||0||||0|||0|

# EN 16 EN

”

28. Paragraph 17.148 is replaced by the following:

                                                              “If government assumes the responsibility for pension provision for the employees of a non
government unit through an explicit transaction, any payment by the non-government unit
needs to be recorded as pre-paid social contributions (F.89). There is further discussion of this
type of arrangement in paragraphs 20.273 to 20.275.”

29. Paragraph 17.165 is replaced by the following:

“The discount rate applied to estimates of future pension benefits in the case of accrued-todate entitlements is one of the most important assumptions to be made in the modelling of
pension schemes, since its accumulated impact over many decades can be very large. The
discount rate from a chosen approach may change over time, which would lead to
revaluations in the accounts.”

30. Footnote 29 to paragraph 18.26 is replaced by the following:

“United Nations, International merchandise trade statistics: Concepts and definitions, 2010.”

31. In paragraphs 20.57, 20.63, 20.65 the text, “(excluding social security)”, is replaced
by the following:

“(excluding social security funds)”

32. In paragraph 20.76 the table is replaced by the following:

“

Total Revenue [= ] total taxes D.2 + D.5 + D.91

+ net social contributions D.61

+ total sales of goods and services P.11 + P.12 + P.131

+ other current revenue D.39 + D.4 + D.7

+ other capital revenue D.92 + D.99

”

33. Paragraph 20.77 is replaced by the following:

“Total taxes comprise taxes on production and imports (D.2), current taxes on income and
wealth, etc. (D.5) and capital taxes (D.91). Net social contributions consist of actual social
contributions (employers' actual social contributions D.611 and households' actual social
contributions D.613), employers' imputed social contributions (D.612) and households' social
contribution supplements (D.614) less social insurance scheme service charges (D.61SC).”

34. In paragraph 20.84 the box 20.1 is replaced by the following:

“

|ESA resources|Col2|ESA GFS revenue|
|---|---|---|
|P.1|Output, of which||

# EN 17 EN

|Col1|Market output (P.11)|Sales of goods and services|
|---|---|---|
||Output for own final use (P.12)|Sales of goods and services|
||Non-market output (P.13), of which:||
||— Payments for non-market output<br>(P.131)|Sales of goods and services|
||— Non-market output, other (P.132)|Not accounted for in Total revenue|
|D.2|Taxes on production and imports<br>(receivable)|Total taxes|
|D.3|Subsidies (receivable)|Other current revenue|
|D.4|Property income|Other current revenue|
|D.5|Current taxes on income and wealth|Total taxes|
|D.61|Social contributions|Net social contributions|
|D.7|Other current transfers|Other current revenue|
|D.91r|Capital taxes (receivable)|Total taxes|
|D.92r|Investment grants (receivable)|Other capital revenue|
|D.99r|Other capital transfers (receivable)|Other capital revenue|

|ESA uses and capital transactions|Col2|ESA GFS expenditure|
|---|---|---|
|P.2|Intermediate consumption|Intermediate consumption|
|D.1|Compensation of employees|Compensation of employees|
|D.2|Taxes on production and imports<br>(payable)|Other current expenditure|
|D.3|Subsidies (payable)|Subsidies|
|D.41|Interest|Interest|
|D.4|Property income (excluding D.41)|Other current expenditure|
|D.5|Current taxes on income|Other current expenditure|
|D.62|Social benefits other than social<br>transfers in kind|Social benefits other than ST in kind|
|D.632|Social transfers in kind via market|Social transfers in kind via market|

# EN 18 EN

|Col1|producers|producers|
|---|---|---|
|D.7|Other current transfers|Other current expenditure|
|D.8|Adjustment for the change in pension<br>entitlements|Other current expenditure|
|P.31|Individual consumption expenditure<br>on market output|Social transfers in kind via market<br>producers|
|P.31|Individual consumption expenditure<br>on non-market output|Not<br>accounted<br>for<br>in<br>Total<br>expenditure|
|P.32|Collective consumption expenditure|Not<br>accounted<br>for<br>in<br>Total<br>expenditure|
|P.5|Gross capital formation|Capital expenditure|
|NP|Acquisition less disposal of non-<br>produced assets|Capital expenditure|
|D.92p|Investment grant (payable)|Capital expenditure|
|D.99p|Other capital transfers (payable)|Capital expenditure|

In the ESA central framework, net lending/net borrowing
(B.9) is the balancing item of the capital account. The
balancing item of general government in the ESA GFS
presentation is identical to the net lending/net borrowing
(B.9). This box explains why.

The ESA central framework

The first account is the production account, and therefore the
first resource of an institutional sector in the ESA is its output.
As the majority of services provided by government are not
sold at economically significant prices and so are non-market,
government output is measured by convention as the sum of
production costs.

Similarly, final collective consumption expenditure,
consisting of services provided to the community by
government such as general services, defence, safety and
public order, are measured as the sum of production costs.
Also by convention, collective consumption expenditure
(P.32) is equal to the actual final consumption (P.4) of
government.

# EN 19 EN

”

# EN 20 EN

35. Paragraph 20.90 is replaced by the following:

“Subsidies received by government units consist only of other subsidies on production. When
received by producing entities belonging to general government, subsidies on products are
included in the valuation of the output and sales at basic prices.”

36. Paragraph 20.130 is replaced by the following:

“The repurchase by a unit of a liability is recorded as redemption in liabilities and not as an
acquisition of assets. Likewise, at a subsector or sector level, the purchase by a government
unit of a liability issued by another unit of the subsector in question will be presented in the
consolidated presentation, as redemption of liability by that subsector or sector.”

37. Paragraph 20.158 is replaced by the following:

“Taxes or subsidies paid by one government unit or entity to another are not to be
consolidated. Taxes or subsidies on products cannot be consolidated in the system because
there is no counterpart sector transactor in the ESA for such transactions; the relevant
amounts are not separately recognised as expenditure and revenue (respectively) and are
instead included in, or excluded from, the value of the intermediate consumption or of the
sales.”

38. Paragraph 21.22 is replaced by the following:

“The valuations of assets at fair value not only provide a better picture of the balance sheet
than valuations at historic cost but they also generate more data on holding gains/losses.”

39. Paragraph 22.13 is replaced by the following:

“In Coicop 15 main categories are distinguished:

(a) food and non-alcoholic beverages;

(b) alcoholic beverages, tobacco and narcotics;

(c) clothing and footwear;

(d) housing, water, electricity, gas and other fuels;

(e) furnishings, household equipment and routine household maintenance;

(f) health;

(g) transport;

(h) information and communication;

(i) recreation, sport and culture;

(j) education services;

(k) restaurants and accommodation services;

(l) insurance and financial services;

(m) personal care, social protection and miscellaneous goods and services;

(n) individual consumption expenditure of non-profit institutions serving households; and

(o) individual consumption expenditure of general government.

The first 13 categories sum up total individual consumption expenditure by households. The
last two identify individual consumption expenditure by the non-profit institutions serving

# EN 21 EN

households (NPISHs) and general government sectors, i.e. their social transfers in kind.
Together all 15 items represent actual final consumption by households.”

40. Paragraph 22.14 is replaced by the following:

“The individual consumption expenditure of NPISHs and general government is broken down
into five common sub-categories reflecting major policy issues: housing, health, recreation
and culture, education and social protection. These are also Coicop functions for the
individual consumption expenditure by households; social protection is a sub-category of 13
personal care, social protection and miscellaneous goods and services. As a consequence,
Coicop also shows for each of these five common sub-categories, the role of private
households, government and non-profit institutions serving households. For example, it can
describe the role of government in providing housing, health and education.”

41. Paragraph 22.16 is replaced by the following:

“The classification of government expenditure by function (COFOG) is a major tool for
describing and analysing government finance. The 10 major divisions distinguished are:

(a) general public services;

(b) defence;

(c) public order and safety;

(d) economic affairs;

(e) environmental protection;

(f) housing and community amenities;

(g) health;

(h) recreation, culture and religion;

(i) education; and

(j) social protection.

The classification is used to classify individual and collective consumption expenditure by the
government. However, it also serves to illustrate the role of other types of expenditure such as
subsidies, investment grants and social benefits, for pursuing policy purposes.”

42. Paragraph 23.05 is replaced by the following:

“Apart from COFOG and Coicop, the functional classifications include also COPNI
(classification of the purposes of non-profit institutions serving households) and COPP
(classification of outlays of producers by purpose). These classifications are used for
functional analysis of the expenditure by corporations, government, households and nonprofit institutions serving households and for functional satellite accounts.”

43. In Chapter 23, the table inserted under the heading ”Transactions in products (P)” is
replaced by the following:

|“|Col2|
|---|---|
|P.1|Output|
|P.11|Market output|

# EN 22 EN

|P.119|Financial intermediation services indirectly measured (FISIM)|
|---|---|
|P.12|Output for own final use|
|P.13|Non-market output|
|P.131|Payments for non-market output|
|P.132|Non-market output, other|
|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.5n net capital formation|
|P.51g|Gross fixed capital formation|
|P.511|Acquisitions less disposals of fixed assets|
|P.5111|Acquisitions of new fixed assets|
|P.5112|Acquisitions of existing fixed assets|
|P.5113|Disposals of existing fixed assets|
|P.512|Costs of ownership transfer on non-produced assets|
|P.51c|Consumption of fixed capital (–)|
|P.51c1|Consumption of fixed capital on gross operating surplus (–)|
|P.51c2|Consumption of fixed capital on gross mixed income (–)|
|P.51n|Net fixed capital formation|
|P.52|Changes in inventories|
|P.53|Acquisitions less disposals of valuables|
|P.6|Exports of goods and services|
|P.61|Exports of goods|

# EN 23 EN

|P.62|Exports of services|
|---|---|
|P.7|Imports of goods and services|
|P.71|Imports of goods|
|P.72|Imports of services|

”

44. In Chapter 23, the text and the table inserted under the heading “Consumer durables”
is replaced by the following:

“Consumer durables are coded using X as a prefix plus DHHCE (durable household
consumption expenditure) plus a one-digit affix for subgroups and two digits for the

”

|ms.|Col2|
|---|---|
|SNA codes||
|XDHHCE1|Furniture and household appliances|
|XDHHCE11|Furniture and furnishings|
|XDHHCE12|Carpets and other floor coverings|
|XDHHCE13|Major household appliances whether electric or not|
|XDHHCE14|Major tools and equipment for house and garden|
|XDHHCE2|Personal transport equipment|
|XDHHCE21|Motor cars|
|XDHHCE22|Motor cycles|
|XDHHCE23|Bicycles|
|XDHHCE24|Animal drawn vehicles|
|XDHHCE3|Recreational and entertainment goods|
|XDHHCE31|Telephone and telefax equipment|
|XDHHCE32|Equipment for the reception, recording and reproduction of sound and<br>pictures|
|XDHHCE33|Photographic and cinematographic equipment and optical instruments|
|XDHHCE34|Information processing equipment|
|XDHHCE35|Major durables for outdoor recreation|
|XDHHCE36|Musical instruments and major durables for indoor recreation|
|XDHHCE4|Other durable goods|
|XDHHCE41|Jewellery, clocks and watches|
|XDHHCE42|Therapeutic medical appliances and equipment|

# EN 24 EN

45. In Chapter 23, the table inserted under the heading “CLASSIFICATION OF
INDIVIDUAL CONSUMPTION BY PURPOSE (Coicop)” is replaced by the
following:

“

|01|Food and non-alcoholic beverages|
|---|---|
|01.1|Food|
|01.2|Non-alcoholic beverages|
|01.3|Services for processing primary goods for food and non-alcoholic beverages|
|02|Alcoholic beverages, tobacco and narcotics|
|02.1|Alcoholic beverages|
|02.2|Alcohol production services|
|02.3|Tobacco|
|02.4|Narcotics|
|03|Clothing and footwear|
|03.1|Clothing|
|03.2|Footwear|
|04|Housing, water, electricity, gas and other fuels|
|04.1|Actual rentals for housing|
|04.2|Imputed rentals for housing|
|04.3|Maintenance, repair and security of the dwelling|
|04.4|Water supply and miscellaneous services relating to the dwelling|
|04.5|Electricity, gas and other fuels|
|05|Furnishings, household equipment and routine household maintenance|
|05.1|Furniture, furnishings, and loose carpets|
|05.2|Household textiles|
|05.3|Household appliances|
|05.4|Glassware, tableware and household utensils|
|05.5|Tools and equipment for house and garden|
|05.6|Goods and services for routine household maintenance|
|06|Health|
|06.1|Medicines and health products|
|06.2|Outpatient care services|
|06.3|Inpatient care services|
|06.4|Other health services|
|07|Transport|

# EN 25 EN

|07.1|Purchase of vehicles|
|---|---|
|07.2|Operation of personal transport equipment|
|07.3|Passenger transport services|
|07.4|Transport services of goods|
|08|Information and communication|
|08.1|Information and communication equipment|
|08.2|Software excluding games|
|08.3|Information and communication services|
|09|Recreation, sport and culture|
|09.1|Recreational durables|
|09.2|Other recreational goods|
|09.3|Garden products and pets|
|09.4|Recreational services|
|09.5|Cultural goods|
|09.6|Cultural services|
|09.7|Newspapers, books and stationery|
|09.8|Package holidays|
|10|Education services|
|10.1|Early childhood and primary education|
|10.2|Secondary education|
|10.3|Post-secondary non-tertiary education|
|10.4|Tertiary education|
|10.5|Education not definable by level|
|11|Restaurants and accommodation services|
|11.1|Food and beverage serving services|
|11.2|Accommodation services|
|12|Insurance and financial services|
|12.1|Insurance|
|12.2|Financial services|
|13|Personal care, social protection and miscellaneous goods and services|
|13.1|Personal care|
|13.2|Other personal effects|
|13.3|Social protection|
|13.9|Other services|
|14|Individual consumption expenditure of non-profit institutions serving|

# EN 26 EN

”

|Col1|households (NPISHs)|
|---|---|
|14.1|Housing|
|14.2|Health|
|14.3|Recreation and culture|
|14.4|Education|
|14.5|Social protection|
|14.6|Other services|
|15|Individual consumption expenditure of general government|
|15.1|Housing|
|15.2|Health|
|15.3|Recreation and culture|
|15.4|Education|
|15.5|Social protection|

# EN 27 EN