184 Government Finance Statistics Manual 2014
7.68 Mineral exploration and evaluation (611322)
consist of the value of expenditure on exploration for
petroleum and natural gas and for nonpetroleum de-
posits and subsequent evaluation of the discoveries
made. Th e information obtained from exploration
infl uences the production activities of those who ob-
tain it over a number of years. Mineral exploration
and evaluation should be valued either on the basis
of the amounts payable under contracts awarded to
other institutional units for the purpose or on the
basis of the costs incurred for exploration undertaken
on own account. Th ese costs should include a return
to the fi xed capital used in the exploration activity. In
addition to the costs of actual test drilling and boring,
mineral exploration includes any prelicense, license,
acquisition, and appraisal costs, the costs of aerial
and other surveys, and transportation and other costs
incurred to make the exploration possible. Th e value
of the resulting asset is not measured by the value of
new deposits discovered by the exploration but by the
value of the resources allocated to exploration dur-
ing the reporting period. Exploration undertaken in
the past whose value has not yet been fully written off
should be revalued to the prices and costs of the cur-
rent period.
7.69 Computer soft ware and databases (611323)
are grouped together because a computerized data-
base cannot be developed independently of a database
management system that is itself computer soft ware.
Th is category can be further divided into computer
soft ware (6113231) and databases (6113232).
7.70 Computer soft ware (6113231) includes com-
puter programs, program descriptions, and sup-
porting materials for both systems and applications
soft ware that is expected to be used for more than
one year. Th e soft ware may be purchased from other
units or developed on own account and may be in-
tended only for own use or may be intended for sale
by means of copies. Databases (6113232) consist
of fi les of data organized in such a way as to permit
resource-eff ective access and use of the data. Th ese
expenditures on the purchase, development, or exten-
sion of computer databases are assets when expected
to be used in production for more than one year.7.71 Th e value of computer soft ware and databases
(611323) should be based on the amount payable if
acquired from another unit or on the costs of pro-duction (including a return to capital if produced by
a public corporation) if produced on own account.
Soft ware and databases acquired in previous years
and not yet fully written off should be revalued to cur-
rent prices.
7.72 Entertainment, literary, and artistic origi-
nals (611324) are original fi lms, sound recordings,
manuscripts, tapes, and models in which drama per-
formances, radio and television programming, musi-
cal performances, sporting events, and literary and
artistic output are recorded or embodied. Th ey should
be valued at their current market price when they are
actually traded. Otherwise, they should be valued ei-
ther on the basis of their acquisition price or costs of
production (including a return to capital if produced
by a public corporation), revalued to the prices of the
current period and written down, or on the basis of
the present value of the expected future receipts.7.73 Other intellectual property products (611325)
consist of new information and specialized knowledge
not elsewhere classifi ed, the use of which is restricted
to the units that have established ownership rights
over the information or to other units licensed by the
owners. Th e assets should be valued at their current
written-down replacement cost or the present value
of expected future receipts.Weapons systems (6114)
7.74 Weapons systems (6114) include vehicles and
other equipment, such as warships, submarines, mili-
tary aircraft , tanks, missile carriers and launchers, etc.
Weapons systems are treated as fi xed assets. Th e mili-
tary weapons systems comprising specialized vehicles
and other equipment, such as warships, submarines,
military aircraft , tanks, missile carriers and launch-
ers, etc., are used continuously in the provision of de-
fense services, even if their peacetime use is simply
to provide deterrence. Th erefore, military weapons
systems should be classifi ed as fi xed assets and this
classifi cation of military weapons systems as fi xed as-
sets should be based on the same criteria as for other
fi xed assets—that is, produced assets that are them-
selves used repeatedly, or continuously, in processes
of production for more than one year. Most single-use
weapons they deliver, such as ammunition, missiles,
rockets, bombs, etc., are treated as military invento-
ries (61225) (see paragraphs 7.86 and 6.49). However,