Government Finance Statistics Manual 2014

180 Government Finance Statistics Manual 2014

considerable extent on location and may include land

values. Th e geographical pattern of sales in the pe-

riod may not cover all areas adequately, in which case

a technique such as a PIM will have to be used (see

paragraph 7.32). Th is technique will probably also

apply to many other public buildings and structures

since their characteristics are oft en specifi c to the

structure concerned.

Buildings other than dwellings (61112)

7.46 Buildings other than dwellings (61112) in-

clude whole buildings or parts of buildings not desig-

nated as dwellings. Fixtures, facilities, and equipment

that are integral parts of the structures are included.

For new buildings, costs of site clearance and prepara-

tion are included.

7.47 Examples of types of buildings included in this

category are offi ce buildings, schools, hospitals, build-

ings for public entertainment, warehouses and in-

dustrial buildings, commercial buildings, hotels, and

restaurants. Public monuments identifi ed primarily

as nonresidential buildings are also included. Prisons,

schools, and hospitals are regarded as buildings other

than dwellings despite the fact that they may shelter

institutional households. Buildings and structures ac-

quired for military purposes are included to the extent

that they are used repeatedly, or continuously, in pro-

cesses of production for more than one year.

Other structures (61113)

7.48 Other structures (61113) consist of all struc-

tures other than buildings. Th e costs of site clearance

and preparation are also included. Public monuments

are included if identifi cation as dwellings or buildings

other than dwellings is not possible. Also included are

the construction of sea walls, dikes, fl ood barriers, etc.

intended to improve the quality and quantity of land

adjacent to them. Th e infrastructure necessary for

aquaculture, such as fi sh farms and shellfi sh beds, is

also included. Further examples are:

• Highways, streets, roads, bridges, elevated high-
  ways, tunnels, railways, subways, and airfi eld
  runways


• Sewers, waterways, harbors, dams, and other
  waterworks


• Shaft s, tunnels, and other structures associated
  with mining mineral and energy resources
  
  
  • Communication lines, power lines, long-distance
    pipelines, local pipelines, and cables
  
  
  • Outdoor sport and recreation facilities
  
  
  • Structures acquired for military purposes are in-
    cluded to the extent that they are used repeatedly,
    or continuously, in processes of production for
    more than one year.
  
  
  
  

Land improvements (61114)

7.49 Land improvements (61114) are the result of

actions that lead to major improvements in the quan-

tity, quality, or productivity of land, or prevent its de-

terioration. Activities such as land reclamation, land

clearance, land contouring, and creation of wells and

watering holes that are integral to the land in question

are to be treated as resulting in land improvements.

Seawalls, dikes, dams, and major irrigation systems

that are in the vicinity of the land but not integral to

it, which oft en aff ect land belonging to several owners

and which are oft en carried out by government, are

classifi ed as other structures (61113).

7.50 Land improvements represent a category of

fi xed assets distinct from the nonproduced asset land

(6141) as it existed before improvement. Unimproved

land remains a nonproduced asset and as such is sub-

ject to holding gains and losses separately from price

changes aff ecting the improvements. In cases where it

is not possible to separate the value of the land before

improvement and the value of those improvements,

the asset should be allocated to the category that rep-

resents the greater part of the value.

7.51 Th e value of land improvements is shown as

the written-down replacement cost of the improve-

ments as originally carried out, suitably revalued to

market prices. Th is is conceptually equal to the dif-

ference in value between the land concerned in an

unimproved or natural state and its value aft er the im-

provements have been made, taking into account price

changes. Th e costs of ownership transfer on all land

are, by convention, included with land improvements.

Consumption of fi xed capital and the costs of owner-

ship transfer are discussed in paragraphs 6.53–6.60.

Machinery and equipment (6112)

7.52 Machinery and equipment (6112) cover

transport equipment, machinery for information,

computer, and telecommunications (ICT) equipment,