Updating the 1993 SNA

1. Updating the 1993 SNA Anne Harrison Editor of the update Anne.harrison@oecd.org

2. Overview only • Full documentation on UN web site • http://unstats.un.org/unsd/nationalaccount/snarev1.asp

3. Recommendations • Topic-specific expert groups • 44 issues • AEG has had four meetings • Full list of provisional recommendations

4. And.. • Clarifications • Consistency issues

5. Pensions • Funded pension schemes • Show liabilities of schemes (not just assets) • Contributions of employer and employee represent pension entitlement earned in a year • For defined benefit schemes, property income represents increase in past pension entitlement during the year

6. Problem area • Unfunded schemes of government • Difficulty of separating from social security • May go with supplementary table to permit some latitude in application of recommendations

7. Non-financial assets • R&D – Frascati data to be treated as fixed capital • Capital services • Contracts, leases and licences • Intangible assets – capture of ”excess profits” from imperfect market brought about by restrictions

8. Financial services • FISIM – withdraw option not to allocate • Use a reference rate • Allow service on lending of own funds including money lenders • Buy/sell margins on dealing in securities and equities

9. Insurance • Use expected claims not actual and smooth premium supplements also • Have a link to monetary and financial statistics

10. Government • New chapter on government and public sectors • Delineation of units under control of govt • Greater precision on ”economically significant prices” • Guarantees • PPP

11. Rest of the world • Goods for processing – goods enter and then leave country without changing ownership • Change to follow strictly change of ownership principle ie no imports and exports recorded for original value, difference is shown as processing fee • Apply to inter-establishment deliveries only

12. Merchanting • Goods bought and then sold without physically entering the country • Show as negative exports and then positive exports (at a higher value) • Parallel with domestic wholesale and retail • May have inventories held in ROW

13. Units • Units with no physcial presence or employees • Government SPVs • Holding companies

14. Developing country concerns • Globalisation • Informal economy • Migrant workers and international remittances • NPIs and their role in international relief efforts • Debt concessionality and restructuring

15. 1993 SNA Rev1 Will I recognise the book?

16. Part 1 Introduction and overviewPart 2 Accounting conventions • 1 Introduction • 2 Overview • 3 Flows, stocks and accounting rules • 4 Institutional units and sectors • 5 Establishments and industries

17. Part 3 The sequence of accounts • 6 The production account • 7 The distribution of primary income account • 8 The secondary distribution of income account • 9 The use of income account

18. Part 3 cont • 10 The capital account • 11 The financial account • 12 Other changes in assets accounts • 13 The balance sheet

19. Part 4: Integration and elaboration of the accounts • 14 Typical summary presentations • 15 Supply and use tables and input-output • 16 Prices and volumes measures • 17 The role of capital services in the accounts • 18 Cross-cutting and other special issues

20. Part 5: Interpretation of the accounts and extensions • 19 Measuring corporate activity • 20 The government and public sectors • 21 Non-profit institutions in the System • 22 Households • 23 The informal sector • 24 The rest of the world account (external transactions account)

21. Part 5 cont • 25 The link to financial and monetary statistics • 26 Population and labour inputs • 27 Satellite accounts and other extensions of the System • Annex 1: Classifications • Annex2: Accounts

22. Electronic annexes • Multiple exchange rates • PPPs • Changes since 1993 • ?Input-output