Statistical legislation

Transcript Statistical legislation

GOVERNMENT FINANCE STATISTICS

FLOWS, STOCKS, AND ACCOUNTING RULES

Part 1

This lecture describes the flows and stocks of the GFS system

THIS LECTURE

The previous lecture, Coverage of the GFS System, defined the concept of statistical units and discussed their relationship to the composition of the general government and public sectors. This lecture describes the flow and stock data that are collected from GFS statistical units and the rules for their recording and reporting. 2 Copyright 2010, The World Bank Group. All Rights Reserved.

GOVERNMENT FINANCE STATISTICS

INTEGRATION OF STOCKS AND FLOWS

• Data recorded in the GFS system are either

flows

stocks

. •

Flows

are monetary expressions of economic actions engaged in by institutional units and other events affecting the economic status of units that occur within an accounting period. •

Stocks

refer to a unit’s holdings of assets and liabilities at a specific time.

• Flows reflect the creation, transformation, exchange, transfer, or extinction of economic value. They involve changes in the volume, composition, or value of a unit’s assets, liabilities, and

net worth

• The flows and stocks recorded in the GFS system are integrated, which means that all changes in stocks can be fully explained by the flows. 3 Copyright 2010, The World Bank Group. All Rights Reserved.

GOVERNMENT FINANCE STATISTICS

TYPES OF FLOWS

• The GFS system recognizes two types of flows:

1. Transactions

, and

2. Other economic flows

• Primarily, a transaction is an interaction between two units by mutual agreement.

• Mutual agreement does not mean that both parties (units) entered into the transaction voluntarily. Thus, payments of taxes are considered transactions despite being compulsory.

GOVERNMENT FINANCE STATISTICS

TYPES OF TRANSACTIONS

• Every transaction is either an

exchange

or a

transfer

and can be

monetary

nonmonetary.

• A transaction is an

exchange

if one unit provides a good, service, asset, or labor to a second unit and receives a good, service, asset, or labor of the same value in return.

• A transaction is a

transfer

if one unit provides a good, service, asset, or labor to a second unit without receiving simultaneously a good, service, asset, or labor of any value in return.

GOVERNMENT FINANCE STATISTICS

MONETARY AND NONMONETARY TRANSACTIONS

• A

monetary

transaction is one in which one unit makes a payment or incurs a liability stated in units of currency and the second unit receives the payment or another asset, also stated in units of currency.

• All other transactions are

nonmonetary

, but they must be assigned a monetary value as the GFS system deals only with flows and stocks expressed in monetary terms.

TYPES OF NONMONETARY TRANSACTIONS

• Four kinds of nonmonetary transactions are recognized in the 2001 GFS system:

- Barter transactions,

where two units exchange goods, services, or assets other than cash of equal value,

- Remuneration in kind,

occurs when a government employee is compensated with goods, services, or assets other than money,

- Other payments in kind,

occur when a payment to settle a liability is made in the form of goods, services, or noncash assets rather than money,

- Transfers in kind,

may be used rather than cash for efficiency or to insure that the intended goods and services are consumed.

MODIFIED TRANSACTIONS

Some transactions are not recorded in the form in which they appear to take place. Instead they are modified to bring out their underlying economic relationships more clearly.

Three modifications may be applied in the GFS system:

1. Rerouting, 2. Partitioning

, and

3. Reassignment.

GOVERNMENT FINANCE STATISTICS

DIFFERENCES WITH 1993 SNA

The treatment of some activities in the GFS system differs from the treatment of the same activities in the

1993 SNA.

The following transactions are not recorded in the GFS system:

the output and simultaneous distribution of nonmarket goods and services,

the output of fixed assets constructed on own account and the costs of producing those assets,

ccertain transactions related to employer social insurance schemes providing retirement benefits managed by general government units,

transactions reflecting the reinvestment of earnings on direct foreign investment.

GOVERNMENT FINANCE STATISTICS

OTHER ECONOMIC FLOWS

• An

other economic flow

is a change in the

volume

liability that does not result from a transaction.

value

of an asset or • Volume changes are described as

other volume changes

and comprise three kinds of events:

events that involve the addition to or deletion from the balance sheet of an existing asset or liability with no changes in its quantity or quality,

events that change the quantity or quality of assets,

changes in the classification of assets.

GOVERNMENT FINANCE STATISTICS

HOLDING GAINS AND LOSSES

• Value changes are described as

holding gains and losses.

and arise as a result of changes in the prices of assets and liabilities, including changes resulting from exchange rate movements.

• A holding gain or loss accrues purely as a result of holding an asset or liability over time without transforming it in any way.

Statistical legislation

Transcript Statistical legislation

FLOWS, STOCKS, AND ACCOUNTING RULES

Part 1

THIS LECTURE

INTEGRATION OF STOCKS AND FLOWS

TYPES OF FLOWS

TYPES OF TRANSACTIONS

MONETARY AND NONMONETARY TRANSACTIONS

TYPES OF NONMONETARY TRANSACTIONS

MODIFIED TRANSACTIONS

DIFFERENCES WITH 1993 SNA

OTHER ECONOMIC FLOWS

HOLDING GAINS AND LOSSES

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