Government Finance Statistics Manual 2014

264 Government Finance Statistics Manual 2014

A1.34 Paragraph 4.7 elaborates on the coverage of

GFS, emphasizing that data should cover the nonmar-

ket activities of the general government sector, as well

as the market activities of the public sector.

A1.35 Two additional statements are included in

the GFS framework, to further enhance the analyti-

cal usefulness of GFS (see paragraphs 4.13–4.15 and

4.46–4.49):

• Statement of Total Changes in Net Worth


• Summary Statement of Explicit Contingent Li-
  abilities and Net Implicit Obligations for Future
  Social Security Benefi ts.
  A1.36 Th e concept expenditure is reinstated as an
  aggregate in both the Statement of Operations and in
  the Statement of Sources and Uses of Cash (see para-
  graph 4.21, Table 4.1, and Table 4.2).
  A1.37 Th e defi nition and identifi cation of policy
  lending are elaborated on in Box 4.1.
  A1.38 Th e composition of the item net change
  in the stock of cash, as presented in the Statement of
  Sources and Uses of Cash, is clarifi ed—the item refers
  to the fi nancial asset currency and deposits (3202),
  and should not include other fi nancial instruments or
  overdraft s (see paragraph 4.33).
  A1.39 Th e description of the Balance Sheet is ex-
  panded with a discussion on the use of the net worth
  concept in the case of public corporations (see para-
  graph 4.40).
  A1.40 Box 4.1 in the GFSM 2001 is replaced with an
  annex to Chapter 4 of the GFSM 2014, Using GFS for
  Fiscal Analysis. Th e annex off ers an overview of how
  analysts can use the data in GFS to build well-defi ned
  and internationally comparable fi scal indicators. Some
  of the indicators can be observed or derived directly
  from the GFS framework, while others can be derived
  using GFS together with additional data.

Chapter 5

A1.41 Th e rationale for defi ning revenue as an

increase in net worth resulting from a transaction is

added in paragraph 5.1.

A1.42 Th e defi nition of grants (13) is revised to no

longer refer to grants as noncompulsory transfers. Th e

change accommodates cases where compulsory rev-

enue sharing occurs between government units. Th e

defi nition is also expanded to indicate that grants are

transfers that do not meet the defi nition of a tax, sub-

sidy, or social contribution (see paragraphs 5.5 and

5.101).

A1.43 Defi nitions of the respective categories of

other revenue (14) are replaced by a defi nition of the

main category other revenue (14), with only references

to the subcategories it comprises (see paragraph 5.6).

A1.44 Th e section on defi ning revenue is enhanced

with the inclusion of a discussion on the treatment of

refunds and corrections, and with an explanation of

the delineation between revenue and transactions in

assets and liabilities (see paragraphs 5.7–5.8).

A1.45 Th e section on the time of recording and

measurement of revenue is expanded to clearly in-

dicate the time of recording when using the accrual

basis of recording, as well as the cash basis of record-

ing (see paragraphs 5.10–5.11). Further clarifi cation

is provided on applying an accrual basis of recording

to revenue transactions (see paragraphs 5.12–5.17),

as well as on the treatment of amounts assessed, but

discovered to be uncollectable (see paragraph 5.20).

A1.46 Th e basis on which the classifi cation of rev-

enue should be made is presented in paragraph 5.21,

while paragraph 5.22 describes the rationale for stan-

dardized summary classifi cations and the usefulness of

adding subitems according to analytical use and need.

A1.47 Paragraphs 5.27–5.32 describe the treatment

of tax refunds and tax relief. In this regard, the GFSM

2014 adopted the gross recording of payable tax cred-

its, while nonpayable tax credits continue to be treated

on a net basis.

A1.48 Th e tax category unallocable (1113), in the

GFSM 2001, is renamed other taxes on income, prof-

its, and capital gains (1113) in the GFSM 2014, and

a breakdown of the category is introduced to sepa-

rately identify these taxes receivable from general

government units (11131) and unallocable taxes on

income, profi ts, and capital gains (11132) (see para-

graph 5.42 and Tables 5.1 and 5.2). Th is change al-

lows the identifi cation of those taxes receivable from

other general government units that are subject to

consolidation.

A1.49 Th e tax attribution rules are described in

paragraphs 5.33–5.38. Th e tax attribution rules ap-

plicable to cases where the activities of the religious

organizations are funded from earmarked taxes