250 Government Finance Statistics Manual 2014
Valuables (413)
10.18 Th e nature of valuables is that they are held as
a store of value in the expectation that their value will
increase over time. Any increase/decrease in value of
an individual valuable is treated as a holding gain/loss.Nonfi nancial assets disposed of during the reporting period.
10.19 Th ere are no remaining costs of ownership
transfer included in the value of the asset when it is
sold to a new owner, as the amount the old owner
receives is equal to the amount the new owner pays
except for any costs of ownership transfer incurred by
the new owner. Th is is because consumption of fi xed
capital is calculated on the value of the asset excluding
the costs of ownership transfer over the whole of its
life, and the consumption of fi xed capital in respect of
the costs of ownership transfer is calculated only over
the period that the owner expects to hold the asset
(see paragraph 6.60).
10.20 When a nonfi nancial asset is disposed of in a
market-related transaction^7 at a value that is diff erent
from the balance sheet value of the asset immediately
prior to disposal, a revaluation should be recorded to
refl ect the current market value of the asset in the bal-
ance sheet. Th is applies to all nonfi nancial assets but
not to scrap.^8Monetary gold and Special Drawing Rights (SDRs) (4201, 4221, 4301, 4321)
10.21 Th e price of gold is usually quoted in dol-
lars; therefore, monetary gold (including unallocated
gold accounts) is subject to holding gains and losses
because of changes in the exchange rate as well as in
the price of gold itself.
10.22 Th e value of the SDR is based on a bas-
ket of key currencies; therefore, the value of SDRs
is always subject to holding gains and losses. From
time to time, new allocations of SDRs may be made;
when this occurs, the allocation is recorded as a
transaction.(^7) If there is a transfer element to the transaction, the economic
value of the transfer should be recorded as a separate transaction
(see paragraph 3.122).
(^8) In cases where the scrap value does not coincide with the resid-
ual balance sheet value of the asset immediately before disposal,
an adjustment is to be made to the value of the asset via the other
changes in the volume of assets account.
Financial assets and liabilities with fi xed monetary values
10.23 Not all fi nancial assets and liabilities have
market prices. Currency, deposits, most loans, and
other accounts receivable/payable, such as trade
credit and advances, are recorded at nominal value.
As a result, holding gains resulting from market price
changes on these assets are always zero in terms of the
currency in which they are denominated. When these
fi nancial assets are denominated in a foreign currency
or held as unallocated gold accounts (or similar ac-
counts in other precious metals), their value in do-
mestic currency terms can change because of a change
in the exchange rate or a change in the value of the
precious metal.Debt securities (4203, 4213, 4223, 4303, 4313, 4323)
10.24 Debt securities typically have market prices
that change over time. Changes in the value of the
stock of debt securities between balance sheet dates
arise from transactions in debt securities (i.e., acqui-
sitions, disposals, and the accrual of interest), other
changes in the volume of assets (such as write-off s),
and revaluations (e.g., changes in the market rate of
interest, exchange rate, expectation of creditworthi-
ness, etc.).
10.25 When debt securities, especially deep-
discount and zero-coupon bonds, are issued at a
discount, then, in the absence of other changes, the
price will gradually rise over the life of the bond until
it reaches the maturity value. Th is gradual increase
in the market price of a bond that is attributable to
the accumulation of accrued interest is a transaction,
not a holding gain. Th e converse treatment applies to
bonds issued at a premium.
10.26 Th e values of debt securities may change
when the market rates of interest and/or exchange
rates change. With the exception of broad-based
index-linked securities (see paragraph 6.77), changes
in the values of debt securities that are attributable to
changes in market rates of interest and exchange rates
(for debt securities denominated in another currency)
are holding gains. An increase in interest rates causes
a decrease in the market value of the fi xed-rate debt
securities, which is a holding gain for the debtor and
a holding loss for the creditor, and conversely for a
decrease in interest rates.