ESA 2010 GNI Inventory Guide Process Tables Compilation Guide Modifications and clarifications

1. ESA 2010 GNI Inventory Guide Process Tables Compilation GuideModifications and clarifications GNIC/280 rev.1 GNIC/281

2. Modifications to the GNI Inventory Guide • Due to: • - feedback from the Member States • - experience from the work on reservations • - new guidelines (Euro banknotes)

3. Modifications to the GNI Inventory Guide • Section 1.1 • Describe main approaches to GDP and the geographical coverageeconomic territory covered. Description of the economic territory should be made with reference to the provisions of the Commission regulation 109/2005 on the definition of the economic territory of Member States for the purposes of the GNI regulation. (…)

4. Modifications to the GNI Inventory Guide • Point 3.18.11) • 11) Provide information on the implicit or explicit estimates that are made for the intermediate consumption of empty dwellings.

5. Modifications to the GNI Inventory Guide • Point 7.1.3.6) • 6) VAT fraud without complicity; show the adjustments made for VAT fraud without complicity, in accordance with Commission Decision 98/527/EC by including a description of the explicit and implicit adjustments (calculations and adjustments that capture absence, evasion or exemption using the following formula: VAT evasion without complicity = Theoretical VAT receipts less actual VAT receipts less time differences less insolvencies less missing revenues (evasion with complicity)). Give information on how the GNI Committee recommendations on VAT fraud (GNIC/031) are applied.

6. Modifications to the GNI Inventory Guide • Point 8.4.1.7) • 7) If a Eurozone country, describe the treatment of the interest flows associated with the Intra-Eurosystem ("technical") financial claims and liabilities related to the issuance of Euro bank notes. In particular provide information on to the following aspects:

7. Modifications to the GNI Inventory Guide • Point 8.4.1.7) • a) If a Eurozone country has an Intra-Eurosystem ("technical") asset, is the associated interest flow recorded as D.41 interest received from the rest of the world? • b) If a Eurozone country has an Intra-Eurosystem ("technical") liability, is the associated interest flows recorded as D.41 interest paid to the rest of the world? • c) Is the D.41 interest received/paid from/to the rest of world from a direct data source or is it modelled based on the stock of the Intra-Eurosystem ("technical") assets and liabilities? i. If the latter, what is the source for the "reference rate" used to calculate the associated D.41 interest flow?

8. Modifications to the GNI Inventory Guide • Point 8.1.1) • 1) Describe sources and procedures used to identify resident employees working for non-residents and non-resident employees working for residents and the related compensation of employees.

9. Modifications to the GNI Inventory Guide • Point 8.4.3.11) • 11) Provide information on the method used to compile RIE (Method I or Method II as described in the document GNIC/052; in the case of Method I profits and distributed earnings of direct investment enterprises are from the same source(s), typically FDI surveys or administrative information; in the case of Method II profits and distributed earnings are from different sources, typically profits come from FDI surveys and distributed earnings from international transactions reporting systems (ITRS)).

10. Modifications to the GNI Inventory Guide • Member States are asked to take these modifications into account when drawing up their GNI Inventories. • Modifications are reflected in the GIAQ, so the information on these points will be requested if not provided in the Inventories.

11. Clarifications on the GNI Inventory Guide • Section 4.0, points 1,2) • Provide a table describing the breakdown of compensation of employees, taxes on products, other taxes on production an imports, subsidies on products, other subsidies on production, gross operating surplus and mixed income (in the reference year) by • 1) NACE sections; • 2) institutional sectors.

12. Clarifications on the Process Tables Compilation Guide "Reasoning behind classifying different components of the same model across different columns in the Process Tables", in particular for: - Dwellings (stratification method) - FISIM - Insurance

13. Clarifications on the Process Tables Compilation Guide For dwellings: why output and HFCE into "Extrapolation and Models" whereas IC in principle into "Conceptual adjustments"?

14. Clarifications on the Process Tables Compilation Guide For FISIM: IC - according to the type of the source used or into "Conceptual adjustments"?

15. Clarifications on the Process Tables Compilation Guide For insurance: the same treatment as for FISIM for both output and uses or only for uses?

16. Clarifications on the Process Tables Compilation Guide Treatment of R&D/software/originals produced for own final use: as "conceptual adjustments" or "exhaustiveness adjustments"? Purchased R&D/software/originals: should it be classified as "conceptual adjustments" or not?

17. Clarifications on the Process Tables Compilation Guide Treatment of Gross operating surplus in case of a non-independent income approach If operating surplus is arrived at as a residual it should be shown as a "balancing adjustment". You should enter figures in the "Balancing adjustments" column for each sector and the total will be automatically calculated by means of a formula.

18. Thank you for your attention