Transcript Gross Fixed Capital Formation (GFCF) International Workshop on Measuring GDP by Final Demand Approach, Shenzhen, China, 25-27 April 2011 Prepared By : Nursinah Amal Urai STATISTICS.

Gross Fixed Capital
Formation (GFCF)
International Workshop on Measuring GDP
by Final Demand Approach,
Shenzhen, China, 25-27 April 2011
Prepared By : Nursinah Amal Urai
STATISTICS INDONESIA
Gross Fixed Capital Formation (GFCF) is
measured by the total of a producer’s
acquisition, less disposals, of fixed assets
during the accounting period plus certain
specified expenditure on services that adds
to the value of non produced assets.
Fixed assets are produced assets that are use
repeatedly or continuously in production
processes for more than one year
Gross Fixed Capital Formations includes:
1. Acquisitions less disposal of new or existing produced asset, such
as dwelling, other building structure, machinery and equipment,
weapon system, cultivated assets, intellectual property product
(e.g., research & development, mineral exploration, computer
software, entertainment, literary or artistic originals, and other
intellectual property products;
2. Cost of ownership transfer on non produced, nonfinancial assets,
such as land and patented assets;
3. Major improvement to produced and non produced assets that
extend the lives of assets (e.g., reclamation of land from sea,
clearance of forests, draining of marches or irrigation of forests,
and prevention of flooding or erosion;
4. Acquisition can be in terms of purchase, own-account production,
barter, capital transfer in kind, financial leasing, growth of
cultivated assets and major repairs of produced assets;
5. Disposal can be in term of sale, barter, capital transfer in kind or
financial lease, exceptional losses, such as those due to natural
disasters (are not recorded as disposal).
Assets in the 1993 SNA
Financial assets
Non-financial assets
Non-produced
Produced
Fixed
Inventories
Tangible
Valuables
Intangible
Tangible
- Land
- Buildings
- Structures
- Machinery
& Equipment
- Mineral exploration
- Computer software
- Entertainment, literary
or artistic originals
- Other
- Subsoil assets
- Non-cult biological
resources
- Water resources
Intangible
- Patented
entities
- Leases and
contracts
- Purchased
goodwill
Assets in the SNA update
Financial assets
Non-financial assets
Non-produced
Produced
Fixed
Buildings
Structures
Machinery &
Equipment
Inventories
Valuables
- R&D
- Mineral exploration
and evaluation
- Computer software
and databases
- Entertainment,
literary or artistic
originals
- Other IP products
Goodwill
and
marketing
assets
Contracts,
leases and
licenses
Natural
resources
- Natural land
- Mineral & energy
reserves
- Non-cult biological
resources
- Water resources
- Other natural
resources
GROSS CAPITAL FORMATION
GFCF
∆ Inventories
∆ Valuables
• Construction
• Machinery & equipment
• Cultivated biological
resources
• Ownership transfer costs
• Weapons systems
• Intellectual property
products)
06/11/2015
6
Gross Fixed Capital Formation (In Practice)
Type of Assets:
Buildings & Constructions
Machinery
Transport
Others
oPrime movers engine
oMachinery and apparatus
oElectric generator and electrical
motor
oElectrical machinery and
apparatus
oCommunication equipment and
apparatus
oOther electric appliances
o Dwelling
o Construction on agriculture
o Public work on roads, bridges and
harbor
o Construction and installation on
electricity, water supply, gas &
communication
o Other constructions
oShip and its repair
oTrain and its repair
oMotor vehicle
oAircraft and its repair
oOther transport
equipment
oCultivated assets
oMineral explorations
oMake up textile goods except wearing
apparel
oManufacture of carpet, rope and
textile
oHand tools and agricultural tools
oMeasuring, Photography and optical
equipment
oMusical instruments
oOthers
GFCF Measurement
There are two methods for measuring GFCF:
 Direct method
 Indirect method (commodity flow)
In Practice :
 Conventional approach:
By estimating based on the collecting data for business and public
sector, especially commercial accounting
 Commodity flow approach :
By estimating supply (output plus net import for related product) which
is allocated to expenditure component.
◦ Valuation:
- Market prices (included installation cost and
other owner transfer cost)
- Cost plus mark up (for net operating surplus or
mixed income for self production)
◦ Time of recording:
- Change of ownership
- Time of initiation of use
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GFCF by Institutions





Government
Household
NPISHs
Financial Corporation
Non Financial Corporation
GFCF by sector
1.
2.
3.
4.
5.
6.
7.
8.
Agriculture
Mining & Quarrying
Manufacturing
Electricity, gas and water supply
Construction
Trade, restaurant & hotel
Transport & communication
Financial intermediaries, real
estate and business services
9. General government
10.Other services
Source of Data
1. Primary Survey : Annual Survey of Fixed Assets
2. Secondary data :
• Foreign trade statistics (net import capital
goods value)
• Corporate Annual reports
• Statistics of Mining
• Statistics of Large and medium Industries
• Statistics of Construction
• Government Capital Expenditure
Fixed Capital Formation :
Main Types:
• Construction
• Machinery & equipment
• Cultivated biological resources (livestock, timber
and fruit trees)
• Artistic products used in production (e.g. movies)
• Major improvements to tangible non-produced
assets (e.g. land)
• Ownership transfer costs
• Weapons systems
• Intellectual property products (Research &
Development, Mineral exploration,
Computer software)
Non Produced Asset
1. Natural Resources
• Land
• Mineral & energy reserves
• Non cultivated biological resources
• Water resources
• Others
2. Contracts, leases, and licenses
• Marketable operating lease
• License to use natural resources
• Permits to undertake specific
activities
•Entitlement to future goods and
services on an exclusive basis
3. Goodwill and marketing asset
Worksheet of Measuring Gross Fixed Capital Formation
Based on SNA 2008
( For the future  rebasing new year 2010 )
Expenditure
Contribution
(%)
Ch
5,34 %
60,62
Cg
10,43 %
8,42
GFCF
11,89 %
Contribution
(%)
27,70
14,48
G
D
P
6,01 %
Export
9,53 %
29,81
Agriculture
4,83 %
10,94
Mining & Quarrying
0,71 %
27,81
Manufacturing
3,66 %
0,83
Elct,, Gas& Water Supply
10,93 %
8,48
Construction
7,55 %
13,97
Trade,hotel,& restaurant
6,87 %
6,31
Transportation & Communication
16,57 %
7,44
- Import
10,00 %
Production
Finance,Real estt,Bus Service
8,24 %
28,75
9,74
Services
6,24 %
16
Expenditure
Contribution
(%)
Ch
4,85 %
58,72
Cg
15,67 %
9,59
GFCF
3,30 %
Contribution
(%)
31,13
15,30
G
D
P
4,58 %
Export
- 9,69 %
24,17
Agriculture
3,98 %
10,56
Mining & Quarrying
4,44 %
26,37
Manufacturing
2,16 %
0,84
Elct, Gas & Water Supply
14,29 %
9,91
Construction
7,07 %
13,28
6,29
Trade,Hotel,& Rest
1,30 %
Transportation& Communication
15,50 %
7,21
-Import
- 14,98 %
Production
Finance,R.Estt.Bus service
5,05 %
21,36
10,24
Services
17
6,42 %
Expenditure
Contribution
(%)
Contribution
(%)
Ch
4,63 %
56,70
Cg
0,29 %
9,06
15,34
11,15
24,82
G
0,78
D
GFCF
8,50 %
32,15
P
6,10 %
Export
14,92 %
24,61
Agriculture
2,86 %
Mining & Quarrying
3,48 %
Manufacturing
4,48 %
Electricity, Gas, Water Supply
5,31 %
10,29
13,72
Construction
6,98 %
Trade,Hotel&Restaurant
8,69 %
6,50
Transportation & Communication
13,45 %
7,21
-Import
17,28 %
Production
Finance,R Est,& Bus Services
5,65 %
22,98
10,19
Services
18
6,01 %