268 Government Finance Statistics Manual 2014
distinguished as current transfers not elsewhere classi-
fi ed (2821) (see paragraph 6.123) and capital transfers
not elsewhere classifi ed (2822) (see paragraph 6.124).
A1.90 Th e expense category premiums, fees, and
claims related to nonlife insurance and standardized
guarantee schemes (283) is introduced to allow for the
appropriate recording of the expense related to non-
life insurance and standardized guarantee schemes.
Subcategories provide for the identifi cation of premi-
ums payable (28311), fees for standardized guarantees
(28312), current claims payable (28313), and capital
claims payable (2832) (see paragraph 6.125).
A1.91 Th e discussion on the Classifi cation of
Functions of Government (COFOG) in Chapter 6
of GFSM 2001 is moved to the annex to Chapter 6 in
GFSM 2014.
A1.92 COFOG in GFS is limited to the expenditure
of government, which diff ers from its application to
all outlays of government as used in the OECD/UN
classifi cation (see paragraph 6.127 in the annex).
A1.93 Th e annex is reorganized to separately pres-
ent: the structure of COFOG classifi cations (see para-
graph 6.128); uses of COFOG (see paragraph 6.130);
distinction between individual and collective goods and
services (see paragraph 6.133); units of classifi cation (see
paragraph 6.140); problems in identifying functions
of government (see paragraph 6.143); and the cross-
classifi cation of expenditure (see paragraph 6.148). No
changes occurred in the functions themselves.Chapter 7
A1.94 Th e usefulness of a set of balance sheets in-
tegrated with economic fl ows is elaborated on in para-
graph 7.2.
A1.95 A distinction is drawn between legal and
economic ownership in paragraphs 3.38–3.41 and 7.5–
7.13. Th ese concepts are used to determine the asset
boundary and to provide an overview of assets and li-
abilities (see paragraphs 7.14–7.19).
A1.96 Th e asset boundary is clarifi ed to not in-
clude contingent assets and liabilities (see paragraph
7.13), and fi nancial claims are clarifi ed to include:
debt instruments; fi nancial derivatives and employee
stock options; equity and investment fund shares; and
monetary gold in the form of unallocated gold ac-
counts (see paragraph 7.15).A1.97 Th e GFSM 2001 treatment of monetary gold
and SDRs (6201/6301) as fi nancial assets without a
corresponding fi nancial claim is revised. In the GFSM
2014, only monetary gold in the form of gold bullion is
regarded as a fi nancial asset without a corresponding
fi nancial claim. Also, recognizing that transactions in
SDR holdings may be entered into by two domestic
units, the exclusion of SDRs from domestic fi nancial
asset fl ows is eliminated (see paragraphs 7.15 and
7.125–7.134, respectively).
A1.98 Th e concept of produced versus nonpro-
duced nonfi nancial assets is introduced in paragraph
7.17–7.19.
A1.99 Th e valuation of assets and liabilities is elab-
orated on in paragraphs 7.20–7.25. Th e usefulness of
nominal value of fi nancial instruments is presented in
paragraph 7.21, while the treatment of cost of owner-
ship transfer is described in paragraph 7.22. Possible
methods of estimating current market prices are de-
scribed in paragraphs 7.25–7.33.
A1.100 Determining the time of change in owner-
ship of fi xed assets that are produced over two or more
accounting periods, and those built under a public-
private partnership, is elaborated on (see paragraphs
7.37 and 7.39, respectively).
A1.101 Th e creation of notional units to own fi xed
assets in territories where they are not residents is ex-
plained in paragraphs 2.13 and 7.91.
A1.102 Identifying public monuments and guid-
ance on their recording are clarifi ed in paragraph 7.42.
A1.103 Th e defi nition and identifi cation of dwell-
ings (61111) are clarifi ed and guidance on the valua-
tion of dwellings is provided in paragraphs 7.44–7.45.
A1.104 Within buildings and structures, a category
of fi xed assets for land improvements (61114) is added.
Th e cost of ownership transfer on all land is included
with land improvements (see paragraphs 7.49–7.51).
A1.105 Subcategories are introduced for machin-
ery and equipment other than transport equipment
(61122) to separately identify information, computer,
and telecommunications (ICT) equipment (see para-
graphs 7.56–7.57) and machinery and equipment not
elsewhere classifi ed (see paragraph 7.57).
A1.106 Th e defi nition and identifi cation of cul-
tivated biological resources (61131) are clarifi ed, and