The Balance Sheet 179
the airline and a loan is recorded as a liability of the
airline and an asset of the bank. Financial leases are
discussed in detail in paragraphs A4.10–A4.15.
7.39 A further consideration to be taken into ac-
count in determining ownership concerns fi xed as-
sets built under a public-private partnership (PPP) or
a build, own, operate, and transfer (BOOT) scheme,
sometimes also described as a private fi nance initia-
tive (PFI), or some other similar shorthand. Th e sta-
tistical treatment is based on the economic ownership
of the asset involved (see paragraph 7.5). PPPs are
discussed in detail in paragraphs A4.58–A4.65. Also,
im movable fi xed assets, such as buildings and other
structures within the economic territory, are deemed,
by convention, to be owned by resident units (see
paragraph 2.13).
7.40 Small/hand tools are excluded from the fi xed
asset boundary. Costs incurred on these inexpensive
durable goods are recorded as use of goods and ser-
vices (22) when such expenses are incurred regularly
and are small compared with the costs incurred for
the acquisition of machinery and equipment. But
there can be circumstances when such small/hand
tools are recorded as fi xed assets (see paragraph 6.43).
Buildings and structures (6111)
7.41 Buildings and structures (6111) consist of
dwellings (61111), buildings other than dwellings (61112),
other structures (61113), and land improvements
(61114), as shown in Table 7.3. Th e value of buildings
and structures includes the costs of site clearance and
preparation and the value of all fi xtures, facilities, and
equipment that are integral parts of the structures.
7.42 Public monuments in the form of build-
ings and structures are included here. Public monu-
ments are identifi able because of particular historical,
national, regional, local, religious, or symbolic sig-
nifi cance. Th ey are accessible to the general public,
and visitors are oft en charged for admission to the
monuments or their vicinity. Public sector units
typically use public monuments to produce cultural
or entertainment-type services. In principle, public
monuments should be included in dwellings, build-
ings other than dwellings, and other structures, as ap-
propriate; in practice, it may be desirable to classify
them with other structures when such a breakdown
is not available. Consumption of fi xed capital on new
monuments, or on major improvements to existing
monuments, should be calculated on the assumption
of appropriately long service lives.
7.43 Public monuments can be valued directly,
however, only when their signifi cance has been rec-
ognized by someone other than the owner, typically
by a sale or a formal appraisal. Newly constructed
public monuments are valued at written-down re-
placement cost. Other than newly constructed monu-
ments should be valued at the most recent sale price,
updated, if need be, by a general price index. If no sale
price is available, then an alternative valuation, such
as an insurance appraisal or replacement cost (see
paragraph 7.31), should be used.Dwellings (61111)
7.44 Dwellings (61111) are buildings, or desig-
nated parts of buildings, that are used entirely or
primarily as residences, including any associated
structures, such as garages, and all permanent fi x-
tures customarily installed in residences. Houseboats,
barges, mobile homes, and caravans that are used as
principal residences are also included, as are public
monuments identifi ed primarily as dwellings. Dwell-
ings acquired by government for military personnel
are included in this category because they are used in
the same way as dwellings acquired by civilians. In-
complete dwellings are included to the extent that the
ultimate user is deemed to have taken economic own-
ership, because the construction is on own account,
the ultimate user assumed the risks and benefi ts of the
asset, or as evidenced by the existence of a contract of
sale or purchase.
7.45 For dwellings, there may be adequate infor-
mation available from the sale of both new and exist-
ing buildings in equivalent private markets to assist
in making balance sheet estimates of comparable
price movements in the total value of public sector
dwellings. However, these house prices depend to aTable 7.3 Classifi cation of Buildings and
Structures
6111 Buildings and structures
61111 Dwellings
61112 Buildings other than dwellings
61113 Other structures
61114 Land improvements