Government Finance Statistics Manual 2014

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Revenue 105


a legal claim when it has satisfi ed certain conditions,
such as the prior incurrence of expenses for a spe-
cifi c purpose or when a certain event has occurred,
such as the passage of legislation. Determining this
time can be complex because there could be a wide
variety of eligibility conditions that have varying
legal powers, and so grants are most commonly re-
corded when received. When using the cash basis
of recording, grants are recorded when cash is re-
ceived. Grants in kind will not be recorded in a cash
system.


Other Revenue (14)


5.106 Other revenue (14) is all revenue receivable
excluding taxes, social contributions, and grants. Th is
category of revenue includes property income, sales
of goods and services, and miscellaneous other types
of revenue.


Property income [GFS] (141)


5.107 Property income [GFS] (141) is the revenue
receivable in return for putting fi nancial assets and
natural resources at the disposal of another unit.^29
Revenue in this category may take the form of inter-
est, distributed income of corporations, investment
income, and rent. Distributed income of corpora-
tions includes dividends, withdrawals of income
from quasi-corporations, and reinvested earnings
on foreign direct investment. Investment income
includes property income from investment income
disbursements, and holders of investment fund
shares.


Interest [GFS] (1411)

5.108 Interest [GFS] (1411) is a form of investment
income that is receivable by the owners of certain
kinds of fi nancial assets (SDRs, deposits, debt secu-
rities, loans, and other accounts receivable) for put-
ting these fi nancial assets and other resources at the
disposal of another institutional unit.^30 Th e fi nancial
assets giving rise to interest are all claims of creditors
over debtors. Under the accrual basis of recording,


(^29) Property income [GFS] (141) diff ers due to the treatment of
fi nancial intermediation services indirectly measured (FISIM) in
interest [GFS] (1411).
(^30) Interest [GFS] (1411) diff ers due to the treatment of FISIM (see
paragraph 6.81 and Appendix 7).
the amount of outstanding debt increases as interest
accrues continuously over the period that the fi nan-
cial asset exists, and the amount due to the creditor
declines as the payments are made on the debt by
the debtor. Th e amount that the debtor owes to the
creditor is referred to as the principal amount. Inter-
est revenue also includes imputed interest that origi-
nates from interest forgone by employers when they
provide loans to employees at reduced or even zero
rates of interest as part of the remuneration in kind
of government and public sector employees (see para-
graph 6.17).
5.109 Interest may be a predetermined sum of
money or a fi xed or variable percentage of the prin-
cipal outstanding. If some or all of the interest ac-
cruing to the creditor is not paid during the period
in question, it should be added to the amount of the
principal outstanding. However, the interest may not
necessarily be due for payment until a later date and
sometimes not until the loan or other fi nancial instru-
ment matures. To the extent that interest has accrued
without being paid, the debtor’s total liability to the
creditor has increased. On an accrual basis, any pe-
riodic or other payments reduce the total liability but
are not revenue transactions.
5.110 Many considerations must be taken into ac-
count when determining the amount of interest rev-
enue to record, or to eliminate, in consolidation. To
avoid repetition, interest is described in more detail
in paragraphs  6.62–6.83. Interest should also be re-
corded according to the subsector of the counterparty,
to allow for consolidation of the general government
and public sectors (see Table 5.8).
Table 5.8 Detailed Classifi cation of Interest
[GFS] (1411)
1411 Interest [GFS]
Interest [SNA]
Minus: FISIM
14111 From nonresidents
14112 From residents other than general
government^1
14113 From other general government units^1
(^1) Further breakdown/“of which” lines could allow for the identifi -
cation of subsectors and individual units (see Table 3.1).

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