.

1. System of
National
Accounts
2008
European Commission International Monetary Fund
Organisation for Economic United Nations
Co-operation and Development
World Bank

3. European Commission International Monetary Fund
Organisation for Economic United Nations
Co-operation and Development
World Bank
New York, 2009
System of
National
Accounts
2008

4. European Commission
International Monetary Fund
Print stock code SNA EA 2008 001
Organisation for Economic Co-operation and Development
OECD Code 302009191P1
United Nations
Sales No. E.08.XVII.29,
document symbol ST/ESA/STAT/SER.F/2/Rev.5
World Bank
ISBN 978-92-1-161522-7
Copyright © 2009
European Communities,
International Monetary Fund,
Organisation for Economic Co-operation and Development,
United Nations and
World Bank
All rights reserved

5. Foreword
The System of National Accounts, 2008 (2008 SNA) is a statistical framework that provides a
comprehensive, consistent and flexible set of macroeconomic accounts for policy­making,
analy-sis
and research purposes. It has been produced and is released under the auspices of the United
Nations, the European Commission, the Organisation for Economic Co-operation and Devel-opment,
the International Monetary Fund and the World Bank Group. It represents an update,
mandated by the United Nations Statistical Commission in 2003, of the System of National
­Accounts,
1993, which was produced under the joint responsibility of the same five organiza-tions.
Like earlier editions, the 2008 SNA reflects the evolving needs of its users, new develop-ments
in the economic environment and advances in methodological research.
A working group, comprising representatives of each of our organizations, managed and
­coor­dinated
the work. National statistical offices and central banks from countries through-out
the world made valuable contributions. Expert groups carried out research on the issues
being reviewed. An advisory expert group was established to provide expert opinions from a
broad range of countries. During the update work, the recommendations and the updated text
were posted on the website of the United Nations Statistics Division for worldwide comment,
thereby achieving full transparency in the process.
The 2008 SNA is intended for use by all countries, having been designed to accommodate the
needs of countries at different stages of economic development. It also provides an overarching
framework for standards in other domains of economic statistics, facilitating the integration of
these statistical systems to achieve consistency with national accounts.
At its fortieth session, the Statistical Commission unanimously adopted the 2008 SNA as the
international statistical standard for national accounts. We encourage all countries to compile
and report their national accounts on the basis of the 2008 SNA as soon as possible.
BAN Ki-moon
Secretary-General
United Nations
José Manuel Barroso
President
European Commission
Angel Gurría
Secretary-General
Organisation for Economic
Co-operation and
Development
Dominique Strauss-Kahn
Managing Director
International Monetary Fund
Robert B. Zoellick
President
The World Bank Group

7. v
Summary table of contents
Foreword.................................................................................................................................................................................... iii
Table of contents ..................................................................................................................................................................... vii
List of tables............................................................................................................................................................................. xli
List of figures .......................................................................................................................................................................... xlv
Preface .................................................................................................................................................................................. xlvii
List of abbreviations and acronyms .......................................................................................................................................... lv
Chapter 1: Introduction ..............................................................................................................................................................1
Chapter 2: Overview ................................................................................................................................................................15
Chapter 3: Stocks, flows and accounting rules ........................................................................................................................39
Chapter 4: Institutional units and sectors .................................................................................................................................61
Chapter 5: Enterprises, establishments and industries ...........................................................................................................87
Chapter 6: The production account .........................................................................................................................................95
Annex to chapter 6: Separating output due to storage from holding gains and losses.......................................................... 127
Chapter 7: The distribution of income accounts ....................................................................................................................131
Chapter 8: The redistribution of income accounts .................................................................................................................157
Chapter 9: The use of income accounts ................................................................................................................................179
Chapter 10: The capital account ............................................................................................................................................195
Chapter 11: The financial account .........................................................................................................................................219
Chapter 12: The other changes in assets accounts ..............................................................................................................237
Chapter 13: The balance sheet .............................................................................................................................................257
Chapter 14: The supply and use tables and goods and services account ............................................................................271
Chapter 15: Price and volume measures ..............................................................................................................................295
Chapter 16: Summarizing and integrating the accounts ........................................................................................................325
Chapter 17: Cross-cutting and other special issues ..............................................................................................................341
Chapter 18: Elaborating and presenting the accounts ...........................................................................................................395
Chapter 19: Population and labour inputs .............................................................................................................................405
Chapter 20: Capital services and the national accounts ........................................................................................................415
Chapter 21: Measuring corporate activity ..............................................................................................................................427
Chapter 22: The general government and public sectors ......................................................................................................435
Chapter 23: Non-profit institutions .........................................................................................................................................455
Chapter 24: The households sector .......................................................................................................................................461
Chapter 25: Informal aspects of the economy .......................................................................................................................471
Chapter 26: The rest of the world accounts and links to the balance of payments ...............................................................483
Chapter 27: Links to monetary statistics and the flow of funds ..............................................................................................499
Chapter 28: Input-output and other matrix-based analyses ...................................................................................................507
Chapter 29: Satellite accounts and other extensions ............................................................................................................523
Annex 1:The classification hierarchies of the SNA and associated codes ............................................................................ 545
Annex 2: The sequence of accounts .....................................................................................................................................561
Annex 3: Changes from the 1993 System of National Accounts ..........................................................................................581
Annex 4: Research Agenda ...................................................................................................................................................603
References ............................................................................................................................................................................ 611
Glossary................................................................................................................................................................................. 617
Index...................................................................................................................................................................................... 635

8. vi

9. vii
Table of contents
List of tables ...........................................................................................................................................................................xli
List of figures ........................................................................................................................................................................xlv
Preface .................................................................................................................................................................................xlvii
List of abbreviations and acronyms .....................................................................................................................................lv
Chapter 1: Introduction............................................................................................................................................................1
A. What is the System of National Accounts? ..........................................................................................................1
B. The conceptual elements of the SNA ..................................................................................................................2
1. Activities and transactions ...................................................................................................................... 2
2. The institutional sectors of the economy .................................................................................................2
3. Accounts and their corresponding economic activities............................................................................2
The goods and services account ............................................................................................................................... 3
The sequence of accounts ......................................................................................................................................... 3
Current accounts ........................................................................................................................................... 3
Accumulation accounts ................................................................................................................................. 3
Balance sheets ............................................................................................................................................... 4
Other accounts of the SNA....................................................................................................................................... 4
Supply and use tables.................................................................................................................................... 4
Accounts in volume terms............................................................................................................................. 4
C. Uses of the SNA ..................................................................................................................................................4
1. Monitoring the behaviour of the economy.............................................................................................. 4
2. Macroeconomic analysis..........................................................................................................................5
3. International comparisons ........................................................................................................................5
D. The boundaries of the SNA..................................................................................................................................6
1. Non-monetary transactions ..................................................................................................................... 6
2. The production boundary .........................................................................................................................6
Household production............................................................................................................................................... 6
Other production boundary problems....................................................................................................................... 7
3. The consumption boundary......................................................................................................................7
4. The asset boundary...................................................................................................................................7
5. National boundaries .................................................................................................................................7
6. Final consumption, intermediate consumption and gross fixed capital formation ..................................8
Human capital........................................................................................................................................................... 8
Repairs, maintenance and gross fixed capital formation .......................................................................................... 8
E. The SNA as a coordinating framework for statistics ............................................................................................9
1. Harmonization between different statistical systems.............................................................................. 9
2. The use of microdata for macroeconomic accounting .............................................................................9
F. Links with business accounting..........................................................................................................................10
1. International accounting standards........................................................................................................ 11
G. Expanding the scope of the SNA .......................................................................................................................11
H. The SNA and measures of welfare ....................................................................................................................12
1. Qualifications to treating expenditure as a welfare measure ................................................................ 12
2. Unpaid services and welfare ..................................................................................................................12
3. The impact of external events on welfare ..............................................................................................12
4. The impact of externalities on welfare...................................................................................................12

10. System of National Accounts
viii
5. Non-economic impacts on welfare.........................................................................................................13
6. Welfare indicators and macroeconomic aggregates...............................................................................13
Chapter 2: Overview...............................................................................................................................................................15
A. Introduction ........................................................................................................................................................15
1. Analysing flows and stocks....................................................................................................................15
2. Recording flows and stocks....................................................................................................................16
B. The conceptual elements of the SNA.................................................................................................................17
1. Institutional units and sectors................................................................................................................ 17
Institutional sectors ................................................................................................................................................ 17
Delimitation of the total economy and the rest of the world ................................................................................. 17
2. Transactions and other flows..................................................................................................................17
Main types of transactions and other flows ........................................................................................................... 18
Characteristics of transactions in the SNA ............................................................................................................ 19
3. Assets and liabilities...............................................................................................................................19
4. Products and producing units .................................................................................................................19
Products.................................................................................................................................................................. 19
Producing units ...................................................................................................................................................... 19
5. Purposes .................................................................................................................................................20
C. Rules of accounting............................................................................................................................................20
1. Introduction ........................................................................................................................................... 20
Terminology for the two sides of the accounts...................................................................................................... 20
Change of ownership and the recording of transactions in goods and services..................................................... 20
Double entry or quadruple entry accounting ......................................................................................................... 21
2. Time of recording...................................................................................................................................21
3. Valuation ................................................................................................................................................21
General principles .................................................................................................................................................. 21
Methods of valuation ............................................................................................................................................. 22
Volume measures and measures in real terms ....................................................................................................... 22
4. Consolidation and netting.......................................................................................................................22
Consolidation ......................................................................................................................................................... 22
Netting.................................................................................................................................................................... 23
The use of “net”.......................................................................................................................................... 23
D. The accounts......................................................................................................................................................23
1. Introduction ............................................................................................................................................23
2. The full sequence of accounts ................................................................................................................23
The three sections of the sequence of accounts ..................................................................................................... 24
The production account.......................................................................................................................................... 24
The distribution of income accounts...................................................................................................................... 25
The primary distribution of income account .............................................................................................. 25
The secondary distribution of income account .......................................................................................... 25
The redistribution of income in kind account ............................................................................................ 25
The use of income accounts ....................................................................................................................... 26
The accumulation accounts.................................................................................................................................... 27
The capital account..................................................................................................................................... 27
The financial account ................................................................................................................................. 28
The other changes in the volume of assets account ................................................................................... 28
The revaluation account ............................................................................................................................. 28
Balance sheets........................................................................................................................................................ 29
3. An integrated presentation of the accounts ............................................................................................29
The rest of the world accounts ............................................................................................................................... 30
The goods and services account............................................................................................................................. 30
The aggregates ....................................................................................................................................................... 34
Gross domestic product (GDP) .................................................................................................................. 34
Net and gross measures .............................................................................................................................. 34
Gross national income (GNI) ..................................................................................................................... 34

11. National disposable income ........................................................................................................................ 35
Accounts in volume terms........................................................................................................................... 35
4. The other parts of the accounting structure............................................................................................35
The central supply and use table and other input-output tables.............................................................................. 35
The tables of financial transactions and financial assets and liabilities.................................................................. 36
Complete balance sheets and assets and liabilities accounts .................................................................................. 36
Functional analysis ................................................................................................................................................. 36
Population and labour inputs tables........................................................................................................................ 36
E. The integrated central framework and flexibility.................................................................................................37
1. Applying the central framework in a flexible way ............................................................................... 37
2. Introducing social accounting matrices..................................................................................................37
3. Introducing satellite accounts.................................................................................................................37
Chapter 3: Stocks, flows and accounting rules...................................................................................................................39
A. Introduction ........................................................................................................................................................39
1. Stocks and flows ................................................................................................................................... 39
2. Balancing items......................................................................................................................................39
3. Grouping stocks and flows into accounts ..............................................................................................40
4. Accounting rules ....................................................................................................................................40
B. Stocks ................................................................................................................................................................41
1. Benefits ................................................................................................................................................. 41
2. Ownership ..............................................................................................................................................41
3. The definition of an asset .......................................................................................................................42
4. Financial assets and liabilities................................................................................................................42
5. The asset boundary and the first-level classification of assets...............................................................42
Contingent liabilities and provisions ...................................................................................................................... 42
6. Entry and exit of assets from the balance sheet .....................................................................................43
7. Exclusions from the asset boundary.......................................................................................................43
C. Flows..................................................................................................................................................................43
1. Transactions .......................................................................................................................................... 43
Monetary transactions............................................................................................................................................. 44
Transactions with and without a recompense ............................................................................................. 44
Rearrangements of transactions .................................................................................................................. 44
Rerouting transactions................................................................................................................................. 44
Partitioning transactions.............................................................................................................................. 45
Units facilitating a transaction on behalf of other parties ........................................................................... 45
Non-monetary transactions..................................................................................................................................... 46
Barter transactions....................................................................................................................................... 46
Remuneration in kind.................................................................................................................................. 46
Payments in kind other than remuneration in kind ..................................................................................... 46
Transfers in kind ......................................................................................................................................... 46
Internal transactions .................................................................................................................................... 47
Externalities and illegal actions .............................................................................................................................. 47
Externalities ................................................................................................................................................ 47
Illegal actions .............................................................................................................................................. 48
2. Other flows.............................................................................................................................................48
Other changes in the volume of assets.................................................................................................................... 48
Holding gains and losses ........................................................................................................................................ 49
D. Balancing items..................................................................................................................................................49
Balancing items in the flow accounts ..................................................................................................................... 49
Balancing items in the balance sheets .................................................................................................................... 49
E. Accounting rules ................................................................................................................................................49
1. Quadruple-entry accounting.................................................................................................................. 49
2. Valuation................................................................................................................................................50
General rules........................................................................................................................................................... 50
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12. System of National Accounts
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Valuation of transactions ....................................................................................................................................... 50
Agricultural products sold from the farm................................................................................................... 51
Barter.......................................................................................................................................................... 51
Quotation prices ......................................................................................................................................... 51
Valuation of transfers inkind...................................................................................................................... 51
Transfer pricing .......................................................................................................................................... 51
Concessional pricing .................................................................................................................................. 52
Valuation at cost......................................................................................................................................... 52
Valuation of assets ..................................................................................................................................... 52
Business accounting valuation ................................................................................................................... 53
Valuation of partitioned flows ............................................................................................................................... 53
Special valuations concerning products................................................................................................................. 53
Valuation of other flows ........................................................................................................................................ 54
Other changes in the volumes of assets...................................................................................................... 54
Holding gains and losses ............................................................................................................................ 54
Valuation of positions of financial assets and liabilities........................................................................................ 54
3. Time of recording...................................................................................................................................55
Choice of time of recording ................................................................................................................................... 55
Choice for recording on an accrual basis............................................................................................................... 55
Time of recording of acquisitions of goods and services ...................................................................................... 56
Time of recording of redistributive transactions.................................................................................................... 56
Time of recording of transactions in financial assets and liabilities...................................................................... 56
Time of recording of output and intermediate consumption ................................................................................. 56
Time of recording of changes in inventories and consumption of fixed capital.................................................... 57
Time of recording of composite transactions and balancing items........................................................................ 57
Time of recording of other flows ........................................................................................................................... 57
Time of recording of holding gains and losses ...................................................................................................... 57
Timing adjustments for international transactions................................................................................................. 57
Balance sheet items................................................................................................................................................ 58
4. Aggregation, netting, consolidation .......................................................................................................58
Aggregation............................................................................................................................................................ 58
Netting.................................................................................................................................................................... 58
Consolidation ......................................................................................................................................................... 58
Chapter 4: Institutional units and sectors............................................................................................................................61
A. Introduction ........................................................................................................................................................61
1. Institutional units................................................................................................................................... 61
2. Residence ...............................................................................................................................................62
3. Sectoring and economic behaviour ........................................................................................................63
4. The total economy..................................................................................................................................63
5. An overview of institutional sectors.......................................................................................................65
6. Subsectors...............................................................................................................................................65
Public and foreign control...................................................................................................................................... 65
Non-profit institutions............................................................................................................................................ 66
Other subsectoring ................................................................................................................................................. 66
7. The rest of the world ..............................................................................................................................66
B. Corporations in the SNA ....................................................................................................................................66
1. Types of corporations.............................................................................................................................66
Legally constituted corporations............................................................................................................................ 66
Cooperatives, limited liability partnerships, etc. ................................................................................................... 67
Quasi-corporations................................................................................................................................................. 67
Branches ..................................................................................................................................................... 67
Notional resident units ........................................................................................................................................... 68
2. Special cases...........................................................................................................................................68
Groups of corporations .......................................................................................................................................... 68
Head offices and holding companies ..................................................................................................................... 68
Special purpose entities.......................................................................................................................................... 69
Captive financial institutions...................................................................................................................... 69

13. Artificial subsidiaries of corporations......................................................................................................... 69
Special purpose units of general government ............................................................................................. 70
3. Ownership and control of corporations..................................................................................................70
Subsidiary and associate corporations .................................................................................................................... 70
Subsidiary corporations............................................................................................................................... 70
Associate corporations ................................................................................................................................ 70
Government control of corporations....................................................................................................................... 71
Control by a non-resident unit ................................................................................................................................ 72
C. Non-profit institutions .........................................................................................................................................72
1. The characteristics of NPIs ................................................................................................................... 72
2. NPIs engaged in market production.......................................................................................................73
Market NPIs serving enterprises............................................................................................................................. 73
3. NPIs engaged in non-market production ...............................................................................................73
Government control of non-profit institutions........................................................................................................ 73
NPIs serving households (NPISHs)........................................................................................................................ 74
D. The non-financial corporations sector and its subsectors..................................................................................74
E. The financial corporations sector and its subsectors .........................................................................................75
1. Central bank ...........................................................................................................................................76
2. Deposit-taking corporations except the central bank .............................................................................76
3. Money market funds (MMFs)................................................................................................................76
4. Non-MMF investment funds..................................................................................................................76
5. Other financial intermediaries, except insurance corporations and pension funds (ICPFs) ..................77
6. Financial auxiliaries ...............................................................................................................................77
7. Captive financial institutions and money lenders ..................................................................................77
8. Insurance corporations (ICs) ..................................................................................................................78
9. Pension funds (PFs) ...............................................................................................................................78
F. The general government sector and its subsectors ...........................................................................................78
1. Government units as institutional units..................................................................................................78
Government units as producers .............................................................................................................................. 79
Social security schemes and social security funds ................................................................................................. 79
2. The general government sector ..............................................................................................................80
3. Subsectors of the general government sector.........................................................................................80
Central government ................................................................................................................................................ 80
State government .................................................................................................................................................... 81
Local government ................................................................................................................................................... 81
Social security funds............................................................................................................................................... 82
4. The alternative method of subsectoring .................................................................................................82
G. The households sector and its subsectors.........................................................................................................82
1. Households as institutional units............................................................................................................82
2. Unincorporated enterprises within households ......................................................................................83
3. The household sector and its subsectors ................................................................................................83
Subsectoring according to income.......................................................................................................................... 83
Subsectoring according to characteristics of a reference person ............................................................................ 84
Subsectoring according to household size and location ......................................................................................... 84
H. The non-profit institutions serving households sector........................................................................................84
I. The rest of the world ..........................................................................................................................................85
1. International organizations.....................................................................................................................85
2. Central banks of currency unions...........................................................................................................85
Chapter 5: Enterprises, establishments and industries .....................................................................................................87
A. Introduction ........................................................................................................................................................87
B. Productive activities ...........................................................................................................................................87
1. The classification of activities in the SNA............................................................................................ 88
2. Principal and secondary activities..........................................................................................................88
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14. System of National Accounts
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Principal activities.................................................................................................................................................. 88
Secondary activities ............................................................................................................................................... 88
3. Ancillary activities .................................................................................................................................88
C. Partitioning enterprises into more homogeneous units ......................................................................................88
1. Types of production units...................................................................................................................... 88
Kind-of-activity units............................................................................................................................................. 88
Local units.............................................................................................................................................................. 89
Establishments ....................................................................................................................................................... 89
2. Data and accounts for establishments ....................................................................................................89
3. Application of the principles in specific situations ................................................................................89
Establishments within integrated enterprises......................................................................................................... 89
Establishments owned by general government...................................................................................................... 90
D. Ancillary activities...............................................................................................................................................91
Recording (or not) the output of ancillary activities.............................................................................................. 91
The role of ancillary activities in the SNA ............................................................................................................ 92
E. Industries............................................................................................................................................................92
1. Market, own account and non-market producers .................................................................................. 92
2. Industries and products...........................................................................................................................92
F. Units of homogeneous production .....................................................................................................................93
Chapter 6: The production account ......................................................................................................................................95
A. Introduction ........................................................................................................................................................95
B. The concept of production..................................................................................................................................96
1. Production as an economic activity....................................................................................................... 96
Goods ..................................................................................................................................................................... 96
Services .................................................................................................................................................................. 96
Knowledge-capturing products.............................................................................................................................. 97
2. The production boundary .......................................................................................................................97
The general production boundary .......................................................................................................................... 97
The production boundary in the SNA.................................................................................................................... 98
The production boundary within households......................................................................................................... 98
The exclusion of most services produced for own use by households....................................................... 98
Own-account production of goods ............................................................................................................. 99
Services of owner-occupied dwellings....................................................................................................... 99
Production of domestic and personal services by employing paid domestic staff..................................... 99
“Do-it-yourself” decoration, maintenance and small repairs ................................................................... 100
The use of consumption goods................................................................................................................. 100
The “non-observed” economy.................................................................................................................. 100
C. Basic, producers’ and purchasers’ prices ........................................................................................................101
1. Basic and producers’ prices................................................................................................................. 101
VAT and similar deductible taxes............................................................................................................ 101
Gross and net recording of VAT.............................................................................................................. 102
2. Purchasers’ prices.................................................................................................................................102
3. Basic, producers’ and purchasers’ prices – a summary .......................................................................103
D. Value added and GDP .....................................................................................................................................103
1. Gross and net value added................................................................................................................... 103
2. Alternative measures of value added ...................................................................................................104
Gross value added at basic prices ........................................................................................................................ 104
Gross value added at producers’ prices ............................................................................................................... 104
Gross value added at factor cost .......................................................................................................................... 104
3. Gross domestic product (GDP) ............................................................................................................104
4. Domestic production ............................................................................................................................105
E. The measurement of output .............................................................................................................................105
1. Production versus output..................................................................................................................... 105
2. Time of recording.................................................................................................................................106

15. 3. Valuation of output ..............................................................................................................................106
4. Market output, output for own final use and non-market output .........................................................106
Market output........................................................................................................................................................ 107
Recording of sales ........................................................................................................................ 107
Recording of barter....................................................................................................................... 107
Recording of compensation in kind or other payments in kind.................................................... 107
Recording of intra-enterprise deliveries ....................................................................................... 107
Changes in inventories of finished goods..................................................................................... 108
Changes in inventories of work-in-progress ............................................................................................. 108
Output for own final use ....................................................................................................................................... 109
Goods produced by households ................................................................................................................ 109
Services of domestic staff ......................................................................................................................... 109
Services of owner-occupied dwellings...................................................................................................... 109
Own gross fixed capital formation............................................................................................................ 109
Changes in inventories .............................................................................................................................. 109
Own intermediate consumption ................................................................................................................ 109
Valuation of output for own final use ....................................................................................................... 110
Non-market output................................................................................................................................................ 110
Market and non-market producers........................................................................................................................ 111
F. The output of particular industries....................................................................................................................111
1. Introduction......................................................................................................................................... 111
2. Agriculture, forestry and fishing..........................................................................................................111
3. Machinery, equipment and construction ..............................................................................................112
4. Transportation and storage...................................................................................................................112
Transportation....................................................................................................................................................... 112
Storage .................................................................................................................................................................. 112
5. Wholesale and retail distribution .........................................................................................................113
6. Output of the central bank....................................................................................................................114
Borderline cases such as supervisory services...................................................................................................... 114
Provision of non-market output ............................................................................................................................ 114
Provision of market output ................................................................................................................................... 114
7. Financial services other than those associated with insurance and pension funds ..............................114
Financial services provided in return for explicit charges.................................................................................... 115
Financial services provided in association with interest charges on loans and deposits ...................................... 115
Financial services associated with the acquisition and disposal of financial assets and liabilities in financial
markets ........................................................................................................................................................... 116
8. Financial services associated with insurance and pension schemes. ...................................................117
Non-life insurance ................................................................................................................................................ 117
Life insurance ....................................................................................................................................................... 118
Reinsurance........................................................................................................................................................... 119
Social insurance schemes ..................................................................................................................................... 119
Standardized guarantee schemes .......................................................................................................................... 119
9. Research and development...................................................................................................................119
10. The production of originals and copies................................................................................................119
G. Intermediate consumption ...............................................................................................................................120
1. Coverage of intermediate consumption .............................................................................................. 120
2. The timing and valuation of intermediate consumption ......................................................................120
3. The boundary between intermediate consumption and compensation of employees..........................121
4. The boundary between intermediate consumption and gross fixed capital formation.........................121
Small tools ............................................................................................................................................................ 121
Maintenance and repairs ....................................................................................................................................... 122
Research and development ................................................................................................................................... 122
Mineral exploration and evaluation ...................................................................................................................... 122
Military equipment ............................................................................................................................................... 122
5. Services provided by government to producers ...................................................................................122
6. Social transfers in kind.........................................................................................................................122
7. Services of business associations .........................................................................................................122
8. Outsourcing..........................................................................................................................................123
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9. Leasing fixed assets..............................................................................................................................123
H. Consumption of fixed capital ............................................................................................................................123
1. The coverage of consumption of fixed capital .....................................................................................123
2. Consumption of fixed capital and rentals on fixed assets ....................................................................124
3. The calculation of consumption of fixed capital..................................................................................124
4. The perpetual inventory method ..........................................................................................................125
Calculation of the gross capital stock .................................................................................................................. 125
Relative efficiencies............................................................................................................................................. 125
Rates of consumption of fixed capital ................................................................................................................. 125
Values of consumption of fixed capital ............................................................................................................... 125
Annex to chapter 6: Separating output due to storage from holding gains and losses ...............................................127
A. Introduction ......................................................................................................................................................127
1. Storage costs and holding gains and losses......................................................................................... 127
B. Goods whose real value changes over time ....................................................................................................127
1. Goods with a long production period.................................................................................................. 127
2. Goods whose physical characteristics change......................................................................................128
3. Goods with seasonal patterns of supply and demand...........................................................................128
4. Who benefits from the increase in value of goods in storage?.............................................................129
5. When is output due to storage recorded? .............................................................................................129
1. Some examples.................................................................................................................................... 129
Example 1 ............................................................................................................................................................ 129
Example 2 ............................................................................................................................................................ 129
Example 3 ............................................................................................................................................................ 129
Chapter 7: The distribution of income accounts ...............................................................................................................131
A. Introduction ......................................................................................................................................................131
1. The generation of income account ...................................................................................................... 131
Operating surplus and mixed income .................................................................................................................. 132
2. The allocation of primary income account...........................................................................................133
The balancing items and national income............................................................................................................ 134
Net national income and gross national income .................................................................................................. 134
3. The entrepreneurial income account ....................................................................................................135
4. The allocation of other primary income account .................................................................................135
B. Compensation of employees............................................................................................................................136
1. Identifying employees ......................................................................................................................... 136
The employment relationship .............................................................................................................................. 136
Employers and own-account workers ...................................................................................................... 138
Outworkers ............................................................................................................................................... 138
2. The components of compensation of employees .................................................................................139
Wages and salaries............................................................................................................................................... 140
Wages and salaries in cash ....................................................................................................................... 140
Wages and salaries in kind ....................................................................................................................... 140
Stock options ............................................................................................................................................ 141
Employers’ social contributions .......................................................................................................................... 141
Employers’ actual contributions to social insurance schemes ................................................................. 142
Employers’ imputed contribution to social insurance schemes ............................................................... 142
Employers’ imputed pension contributions................................................................................. 142
Employers’ imputed non-pension contributions.......................................................................... 142
C. Taxes on production and on imports................................................................................................................143
1. Recording of taxes on production and on imports .............................................................................. 143
The recording of taxes on production and on imports in the accounts ................................................................ 143
Taxes versus fees ................................................................................................................................................. 144
Links with the IMF and OECD tax classifications .................................................................................. 144
The accrual basis of recording ............................................................................................................................. 145

17. Interest, fines or other penalties............................................................................................................................ 145
Taxes and subsidies within the primary distribution of income accounts ............................................................ 146
2. Taxes on products ................................................................................................................................146
Value added type taxes ......................................................................................................................................... 146
Taxes and duties on imports, excluding VAT ...................................................................................................... 146
Import duties ............................................................................................................................................. 146
Taxes on imports, excluding VAT and duties........................................................................................... 146
Export taxes .......................................................................................................................................................... 147
Taxes on products, excluding VAT, import and export taxes .............................................................................. 147
3. Other taxes on production ....................................................................................................................147
D. Subsidies .........................................................................................................................................................148
1. Subsidies on products.......................................................................................................................... 148
Import subsidies.................................................................................................................................................... 148
Export subsidies.................................................................................................................................................... 149
Exclusions from export subsidies ............................................................................................................. 149
Other subsidies on products.................................................................................................................................. 149
2. Other subsidies on production..............................................................................................................149
E. Property incomes .............................................................................................................................................150
1. Defining property income ................................................................................................................... 150
2. Interest..................................................................................................................................................151
The accrual basis of recording.............................................................................................................................. 151
Interest payable and receivable on loans and deposits ......................................................................................... 151
Interest payable on debt securities........................................................................................................................ 152
Further elaboration................................................................................................................................................ 152
Nominal and real interest...................................................................................................................................... 152
The special case of interest rates set by the central bank ..................................................................................... 152
Below market rates on reserve deposits.................................................................................................... 152
Above market rates for currency support.................................................................................................. 153
Below market rates to priority industries.................................................................................................. 153
3. Distributed income of corporations......................................................................................................153
Dividends.............................................................................................................................................................. 153
Time of recording...................................................................................................................................... 153
Super-dividends ........................................................................................................................................ 153
Withdrawals of income from quasi-corporations ................................................................................................. 154
Reinvested earnings on foreign direct investment................................................................................................ 154
Retained earnings of domestic enterprises................................................................................................ 154
4. Investment income disbursements .......................................................................................................154
Investment income attributed to insurance policyholders .................................................................................... 154
Investment income payable on pension entitlements ........................................................................................... 155
Investment income attributed to investment fund shareholders ........................................................................... 155
5. Rent ......................................................................................................................................................156
Rent distinguished from rentals ............................................................................................................................ 156
Rent on natural resources...................................................................................................................................... 156
Rent on land.......................................................................................................................................................... 156
Rent on subsoil assets ........................................................................................................................................... 156
Chapter 8: The redistribution of income accounts............................................................................................................157
A. Introduction ......................................................................................................................................................157
1. The secondary distribution of income account ................................................................................... 157
Current taxes on income, wealth, etc.................................................................................................................... 158
Social contributions and benefits.......................................................................................................................... 158
Other current transfers .......................................................................................................................................... 159
2. Disposable income ...............................................................................................................................159
Links with economic theoretical concepts of income........................................................................................... 160
National disposable income.................................................................................................................................. 160
3. The redistribution of income in kind account ......................................................................................160
4. Adjusted disposable income.................................................................................................................161
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B. Current transfers ..............................................................................................................................................161
1. The distinction between current and capital transfers......................................................................... 162
2. The recording of transfers ....................................................................................................................162
Transfers in cash .................................................................................................................................................. 162
Provisions of goods and services by enterprises.................................................................................................. 163
Social transfers in kind......................................................................................................................................... 163
C. Current taxes on income, wealth, etc...............................................................................................................164
1. Taxes in general .................................................................................................................................. 164
Taxes versus fees ................................................................................................................................................. 164
Links with the IMF and OECD tax classifications .............................................................................................. 165
The accrual basis of recording ............................................................................................................................. 165
Interest, fines or other penalties ........................................................................................................................... 165
2. Taxes on income...................................................................................................................................165
3. Other current taxes ...............................................................................................................................166
Current taxes on capital ....................................................................................................................................... 166
Miscellaneous current taxes................................................................................................................................. 166
D. Social insurance schemes ...............................................................................................................................167
1. The extent of social benefits................................................................................................................ 167
2. The organization of social insurance schemes .....................................................................................168
Social security schemes ...................................................................................................................................... 170
Other employment-related social insurance schemes .......................................................................................... 170
E. Net social contributions ....................................................................................................................................170
1. Components of social contributions.................................................................................................... 171
2. Employers’ actual social contributions ................................................................................................171
3. Employers’ imputed social contributions.............................................................................................171
4. Households’ actual social contributions...............................................................................................171
5. Households’ social contribution supplements......................................................................................171
F. Social benefits other than social transfers in kind ............................................................................................172
1. Institutional arrangements ................................................................................................................... 172
Social insurance schemes or social assistance ..................................................................................................... 172
Social security and social assistance.................................................................................................................... 172
2. Types of social benefits........................................................................................................................172
Pensions ............................................................................................................................................................... 172
Non-pension benefits payable in cash.................................................................................................................. 172
Receivables by households that are not social benefits............................................................................ 173
Non-pension benefits payable in kind.................................................................................................................. 173
Benefits provided in kind by government............................................................................................................ 173
3. Social benefits recorded in the secondary distribution of income account ..........................................174
G. Other current transfers .....................................................................................................................................174
1. Insurance-related transactions ............................................................................................................. 175
Net non-life insurance premiums......................................................................................................................... 175
Non-life insurance claims .................................................................................................................................... 175
Net reinsurance premiums and claims ................................................................................................................. 176
Fees and calls under standardized guarantees...................................................................................................... 176
2. Current transfers within general government.......................................................................................176
3. Current international cooperation.........................................................................................................176
4. Miscellaneous current transfers............................................................................................................176
Current transfers between the central bank and general government .................................................................. 176
Current transfers to NPISHs ................................................................................................................................ 177
Current transfers between households ................................................................................................................. 177
Fines and penalties............................................................................................................................................... 177
Lotteries and gambling ........................................................................................................................................ 177
Payments of compensation .................................................................................................................................. 177
H. Social transfers in kind .....................................................................................................................................178
1. The redistribution of income in kind account ..................................................................................... 178
2. Social transfers in kind paid to non-residents ......................................................................................178