270 Government Finance Statistics Manual 2014
the two concepts (see paragraphs 7.204 and 7.221, re-
spectively), describing the types of fi nancial deriva-
tives (see paragraphs 7.209–7.218), and explaining the
use of margins (see paragraphs 7.219–7.220).
A1.124 Th e main balancing item on the balance
sheet, net worth (6), is clarifi ed and the relationship
with equity for public corporations explained (see
paragraphs 7.228–7.233).
A1.125 Th e items recorded as memorandum items
to the balance sheet are expanded to include: net fi nan-
cial worth (see paragraph 7.235), various valuations
of gross and net debt (see paragraphs 7.236–7.245),
concessional loans and the implicit transfers resulting
from loans at concessional interest rates (see paragraph
7.246), arrears (see paragraphs 7.247–7.250), explicit
contingent liabilities (see paragraphs 7.251–7.260), net
implicit obligations for future social security benefi ts
(see paragraph 7.261), and nonperforming loans (see
paragraph 7.262).
A1.126 Th e classifi cation of the counterparty of fi -
nancial assets and liabilities by institutional sector is
introduced in paragraphs 7.264–7.265 and Table 7.11.
A1.127 Th e classifi cation of debt liabilities and
their corresponding fi nancial assets by maturity is in-
troduced in paragraphs 7.266–7.271 and Table 7.12.Chapter 8
A1.128 Th e concept of net investment in nonfi nan-
cial assets is introduced in paragraph 8.4, and a dis-
tinction drawn with gross investment in nonfi nancial
assets (i.e., consumption of fi xed capital is not taken
into account).
A1.129 Th e treatment of costs of ownership transfer
associated with acquiring and disposing of nonfi nan-
cial assets (other than inventory) is clarifi ed (see para-
graphs 8.6–8.8).
A1.130 Th e valuation of transactions in nonfi nan-
cial assets is elaborated to make a clear distinction be-
tween valuation of acquisitions and disposals of: fi xed
assets (see paragraph 8.9); inventories (see paragraph
8.10); land (see paragraph 8.11); and nonproduced as-
sets other than land (see paragraph 8.11).
A1.131 Time of recording transactions in nonfi -
nancial assets is clarifi ed to be when economic owner-
ship changes. Guidelines for alternatives to use when
change of ownership is not obvious are provided (see
paragraphs 8.13–8.17).A1.132 Th e classifi cation of transactions in nonfi -
nancial assets is identical to the classifi cations of the
same stock positions introduced in Chapter 7 (see
paragraph 8.22 and Table 8.1).
A1.33 Th e treatment of public monuments as
buildings and structures (3111) is clarifi ed in para-
graph 8.30.
A1.134 Transactions related to land improvements
(31114) are introduced as a separate category of trans-
actions in paragraph 8.31.
A1.135 Transactions related to cultivated biological
resources (31131) are clarifi ed to include net invest-
ment in livestock that are cultivated for the products
they yield, and net investment in plantations, or-
chards, etc. Guidance is provided on the valuation of
these transactions (see paragraphs 8.34–8.36).
A1.136 Guidance on the transactions in intellec-
tual property products (31132) is expanded to clarify
the valuation of transactions related to research and
development (311321) (see paragraph 8.38), mineral
exploration and evaluation (311322) (see paragraph
8.39), computer soft ware and databases (311323) (see
paragraph 8.40), and entertainment, literary, and ar-
tistic originals (311324) (see paragraph 8.41).
A1.137 Th e treatment of costs of ownership transfer
on nonproduced assets other than land (31133) is intro-
duced in paragraph 8.42. Figure 8.1 is included to illus-
trate the treatment of these costs in the GFS framework.
A1.138 Th e recording of transactions related to the
acquisition and disposals of weapons systems (3114) is
introduced in paragraph 8.43.
A1.139 Transactions related to the additions and
withdrawals of inventory (312) are elaborated on. A
distinction is made between the owner of inventory
acting as a producer of goods and services and acting
as an owner of assets (see paragraphs 8.44–8.47).
A1.140 Th e nature and treatment of transactions
in all the categories of nonproduced assets are elabo-
rated on (see paragraphs 8.49–8.58).Chapter 9
A1.141 An explanation of the relationship between
transactions and the impact of these on fi nancial
assets/liabilities is introduced in paragraph 9.3. Simi-
larly, the impact of net lending/net borrowing on the
economy is explained in paragraph 9.5.