Transcript METAC Workshop December 14

METAC Workshop
December 14-17, 2015
Beirut, Lebanon
National Accounts Compilation Issues
Session 2: 2008 SNA
Changes in 2008 SNA
• Reasons
• Mostly clarifications rather than changes
– Statistical units and sectors
– Scope of the transactions, including production
boundary
– Concepts of assets/liabilities
• Impact on GDP
• ISWGNA 2008 SNA implementation
milestones
– Minimum requirements
Reasons why
• New economic
behavior/instruments/arrangements
– Globalization
• Advances in methodological research
• Needs of users
– Balance between timeliness and accuracy
• Harmonization with BPM6, also GFS and MFS
• Clarifications from 1993 SNA
• BUT no fundamental changes
Statistical units and sectors
• Ancillary activities
– Unit undertaking purely ancillary activities to be
recognized as separate establishment if:
• Statistically observable, in that separate accounts for the
production it undertakes are readily available, or
• if it is located in a geographically different location from the
establishments it serves.
– Classified according to its principal activity
– The value of output should be derived on a sum of costs
basis, including the costs of the capital used by the unit
– Output is allocated to the intermediate consumption of
the units it serves
– 1993 SNA: treated a producer unit undertaking purely
ancillary activities always as an integral part of the
establishment it served
Statistical units and sectors
• Artificial subsidiaries
– Ancillary corporations of the 1993 SNA are renamed
as artificial subsidiaries in the 2008 SNA
– Subsidiary corporations wholly owned by the parent
corporation
– Created to provide services to the parent corporation,
or other corporations in the same group, for example
• to avoid taxes,
• to minimize liabilities in the event of bankruptcy, or
• to secure other technical advantages under the tax or
corporation legislation in force in a particular country
– Not regarded as institutional unit unless resident in an
economy different from that of its parent
Statistical units and sectors
• Special Purpose Entities
– Description:
•
•
•
•
•
no employees
no non-financial assets
little or no physical presence
always related to another corporation, often as a subsidiary, and
often resident in a territory other than the territory of residence of
its parent
– An SPE is treated as a separate institutional unit and
classified allocated to sector and industry according to its
principal activity with some exceptions (such as captive
financial institutions, artificial subsidiaries, special units of
government)
– 1993 SNA: no explicit guidance for such units
Statistical units and sectors
• Holding companies
– Hold the assets of subsidiary corporations
– Do not undertake management activities
– Thus, produce financial services and is allocated to the
financial corporations sector
– Classified as financial auxiliaries in the financial
corporations sector.
– 1993 SNA – institutional sector of the main activity of the
group of subsidiaries
Statistical units and sectors
• Head offices
– Oversees and manages other units of an enterprise
– Undertakes planning and decision making activities for
the enterprise
– Exercises operational control, manages day-to-day
operations
– Allocated to the non-financial corporations sector unless
all or most of its subsidiaries are financial corporations, in
which case it is treated by convention as a financial
auxiliary in the financial corporations sector
– Produces nonfinancial or financial services depending on
the type of output of its subsidiaries
– No explicit guidance in 1993 SNA
Statistical units and sectors
• Sub-sectoring of financial corporations sector
Further detail is recommended to reflect new developments
in financial services, markets and instruments and to provide
improved consistency with other statistics:
– Central Bank
– Deposit-taking corporations except the central bank
– Money market funds (MMFs)
– Non-MMF investment funds
– Other financial intermediaries except insurance
corporations and pension funds
– Financial auxiliaries
– Captive financial institutions and money lenders
– Insurance corporations
– Pension funds
Statistical units and sectors
• Subsector for non-profit institutions (NPI)
introduced
– Like the 1993 SNA, the 2008 SNA assigns NPIs to different
institutional sectors, regardless of motivation, tax status,
type of employees or the activity they are engaged in
– The 2008 SNA recommends that NPIs within the corporate
and government sectors be identified in distinct
subsectors so that supplementary tables summarizing all
NPI activities can be separately derived
Scope of transactions
• Research and Development
– … systematically undertaken in order to increase the stock
of knowledge, and enable this knowledge to be used to
devise new applications
– A separate establishment should be recognized wherever
possible
– Output of R&D is capitalized as “intellectual property
products”
• except when it is clear that the activity does not entail any
economic benefit to its producer (and hence owner) in which case
it is treated as intermediate consumption.
– Output of the R&D should be valued at
• market price if purchased (outsourced) or
• sum of total production costs if undertaken on own account
– 1993 SNA by convention treated the output of R&D as
intermediate consumption
Scope of transactions
• FISIM
– 2008 SNA recommends that
• FISIM applies only to loans and deposits and
• only when those loans and deposits are provided by, or
deposited with, financial institutions.
– The 2008 SNA calculates the output of FISIM on loans
(yL) and deposits (yD) only, using a reference rate (rr)
– If these loans and deposits attract interest rates of rL
and rD respectively, the output of FISIM should be
calculated as:
(rL - rr)* yL + (rr - rD)* yD
– To be allocated among users (lenders and borrowers)
Scope of transactions
• Output of central bank
– Services produced by the central bank are identified in
three broad groups:
• financial intermediation, as market
• monetary policy services, as non- market
• supervisory services - overseeing financial corporations, as
market or non- market depending on whether explicit fees
are charged that are sufficient the costs of providing such
services
– Separate establishments to be identified (if significant
activity)
– Non-market activities shown as acquisition of
collective services by general government, with a
matching transfer from the central bank to the
government (no net cost to government)
Scope of transactions
• Non- life insurance services
– Catastrophic events generate massive claims on nonlife insurance companies
– In such cases the output of the insurance activity
estimated using the balance of premiums and claims
may be extremely volatile (even negative)
– 2008 SNA recommends that the output of the non-life
insurance activity should be calculated using the
adjusted claims and adjusted premiums supplements
so that output of insurance services
• equals actual premiums earned
• plus adjusted premium supplements
• less adjusted claims incurred
Scope of transactions
• Economic and legal ownership
– Definition of ownership clarified to better reflect the
underlying economic reality
– Economic ownership – considers the entity that holds the
risks and enjoys the benefits of ownership from use in
production
– Assets are recorded on the balance sheet of the economic
owner
• Leasing
– 2008 SNA recognizes distinction between the operating
leasing and the financial leasing according to whether the
lessee should be regarded as the economic owner of the
asset or not.
Scope of transactions
• Goods for processing
– Goods that are processed by an entity that does not own
them
– Record actual change of ownership – no imputation of
change of ownership even when between related
enterprises
– Implications for domestic production, and for balance of
payments (both imports and exports of goods are lower,
but there is a processing fee that is included as an import
of the owner and an export of the processor) and for
supply and use tables
Concepts of assets
• Capital services
– Introduced in 2008 SNA
– Important for productivity measures
– Include a return to capital in the valuation of the output of
goods and services produced for own final use by
households and corporations if using a sum of costs
approach as it better approximates market prices
Concepts of assets
• Asset boundary
– Change of economic ownership
– Output of the R&D is capitalized as “intellectual property
products”
– All databases holding data with a useful life of more than
one year are included as fixed assets
– Extension of the asset boundary and government GCF to
include expenditure on military weapon systems
• Single-use items, such as ammunition, missiles, rockets, bombs,
etc., delivered by weapons or weapons systems are generally
treated as military inventories
1993 SNA: only expenditure of military on fixed assets of a
kind that could be used for civilian purposes of production
treated as GFCF
Concepts of assets
• Changes for Produced assets
–
–
–
–
Land improvements
Information, computer, and telecommunications
Weapons systems
Intangible fixed assets replaced by intellectual property
products (which now includes R&D)
– Computer software modified to include databases
– Mineral exploration renamed as mineral exploration and
evaluation (as for international accounting standards)
Concepts of assets
• Changes for non-produced assets
– Tangible non-produced assets are renamed natural
resources
– Other natural resources such as radio spectra has been
added as a sub-category
– Water resources treated as an asset in some cases
– Clarification of definition and coverage of cultivated
biological resources
– Intangible non-produced assets has been split into
• contracts, leases and licences
• goodwill and marketing assets
– Goodwill and marketing assets now includes marketing
assets that may be sold individually and separately from
the whole corporation
Concepts of assets
• Employee stock options
– Compensation of employees in kind
– Grant date is when the option is offered
– Vesting date is first opportunity for the employee to take
up the option
– Exercise period follows the vesting date and is the period
during which the option is taken up (or it lapses)
– Ideally recording is spread over the period between grant
and vesting dates, but can be recoded at vesting date
– Valuation using strike price (price at grant date) or pricing
model
– No guidance in 1993 SNA
Concepts of assets
• Employers’ pension schemes
– In SNA 1993, promises to pay future benefits are not
liabilities of social security schemes (old age pensions) or
unfunded employer schemes
– In SNA 2008, there is a supplementary table showing
liabilities of unfunded schemes, estimated using standard
actuarial methods. These “may” be incorporated in the
core accounts.
Introduction of ISIC Rev 4
• (Substantial) changes to the structure
… will require:
–
–
–
–
Reclassification of all units on the business register
Maintaining two classifications for some linking period
Sampling and weighting of surveys will require updating
Construction of back series using new classification
Impact on GDP
• Capitalization of research and development (R&D)
• Valuation of output for own final use by households
and corporations to include a return to capital
(capital services)
• Capitalization of expenditure on weapon systems
• Treatment of employee stock options
• Refined Method for calculating financial
intermediation services indirectly measured (FISIM)
• Changes in recording of pension entitlements
• Introduction of ISIC Rev. 4
Impact on GDP
• Capitalization of R & D
– Move R&D from intermediate consumption to gross capital
formation.
– Require adding consumption of R&D fixed capital stock to
non-market output: increase GDP
• Output for own final use by households and
corporations
– Valuation of market production only
– Output valued by cost increases by an imputed value of
return of capital: GDP increases by the same amount of
imputed value
Impact on GDP
• Military expenditure
– Move expenditure on military equipment from final
consumption to gross capital formation: does not change
GDP
– Require adding consumption of military fixed capital stock
to government output: increase GDP
• Employee stock options
–
–
–
–
… treated as compensation of employees in kind
Increase compensation of employees of corporations
Reduce operating surplus of corporations
Does not change GDP but changes household income
Impact on GDP
• New way of measurement of FISIM
– Depends on the structure of financial instruments, but
tends to increase output of FISIM.
• For example, loans of own funds and other forms of equity
will only generate high output as interest payable is nil.
– Money lenders output recognized, increases GDP
• Unfunded pension funds
– Changes compensation of employees of market and nonmarket producers
– Changes value added of non-market producers, and thus
GDP
Impact on GDP
• ISIC Rev. 4 changes the allocation of GDP among ISIC
groups, but does not change the total nor the sector
allocation
ISWGNA required data sets
• Developed three data sets to assess the scope
of national accounts implementation
– minimum requirement data set, MRDS
– recommended data set
– desired data set
ISWGNA, Scope of the implementation of
2008 SNA - Data sets
• GDP, Value added and employment
Data set
Nominal and volume measure of GDP by
industry or by expenditure components
Expenditures of the GDP in current prices
Expenditures of the GDP in constant prices
Value added and GDP in current prices by
industry
Value added and GDP in constant prices by
industry
Value-added components by industry, current
prices
Employment by industry
Annual
Quarterly
Minimum
requirement
Minimum
requirement
Minimum
requirement
Minimum
requirement
Minimum
requirement
Optional min
requirement
Optional min
requirement
Optional min
requirement
Minimum
requirement
Optional min
requirement
Minimum
requirement
Minimum
requirement
Recommended
Recommended
ISWGNA, Scope of the implementation of
2008 SNA - Data sets
• Integrated accounts and tables, including integrated
satellite accounts
Data set
Accounts for the total economy (until net
lending)
Supply and use table
Cross-classification of output/value added by
industries and sectors
Tourism accounts, environmental accounts and
other socio-economic accounts
Annual
Quarterly
Minimum
requirement
Minimum
requirement
Recommended
Desirable
Recommended
*
* Other data sets that would count in assessing the degree of 2008 SNA implementation
ISWGNA, Scope of the implementation of
2008 SNA - Data sets
• Purpose classification of expenditures
Data set
General government final consumption (and
other) expenditure by purpose in current prices
General government final consumption
expenditure by purpose at constant prices
Individual consumption (and other)
expenditures by purpose in current prices
Individual consumption expenditures by
purpose at constant prices
Purpose classification of intermediate and final
consumption across all sectors
Annual
Quarterly
Recommended
*
Recommended
*
*
* Other data sets that would count in assessing the degree of 2008 SNA implementation
ISWGNA, Scope of the implementation of
2008 SNA - Data sets
• Institutional sector accounts (until net lending)
Data set
Annual
Quarterly
Rest of the world accounts (until net lending)
Minimum
requirement
Minimum
requirement
Non-financial corporations sector accounts
(until net lending)
Financial corporations accounts (until net
lending)
General government sector accounts (until net
lending)
Minimum
requirement
Recommended
Minimum
requirement
Recommended
Households sector accounts (until net lending)
Non-profit institutions serving households
sector accounts (until net lending)
Minimum
requirement
Minimum
requirement
Minimum
requirement
Recommended
Recommended
Recommended
ISWGNA, Scope of the implementation of
2008 SNA - Data sets
• Financial accounts, Balance sheets and other
changes in asset accounts
Data set
Annual
Quarterly
Financial accounts for all sectors
Recommended
Desirable
Balance sheets, revaluation and other volume
changes in asset accounts for all sectors
Recommended
Desirable
Thank you