Government Finance Statistics Manual 2014

356 Government Finance Statistics Manual 2014

Table A7.2 Linkages of the Statement of Operations in GFS with Sequence of SNA Transaction

Accounts

GFS Statement of Operations SNA Sequence of Accounts

Main aggregates Balances SNA current accounts Balances and main

aggregates

Revenue, Expense^2

Net operating balance (or

change in net worth due

to transactions)

Production account Value added / GDP

Generation of income account Operating surplus and

mixed income

Allocation of primary income account Balance of primary

income / GNI

Secondary distribution of income

account

Disposable income / NDI

Use of disposable income account^1 Saving / National saving

Conceptually, net operating balance differs from saving with the value of capital transfers and taxes on capital

transactions, and capitalized expense. Additional differences in calculated values may arise due to differences in

treatment of some employment-related pension schemes.

SNA accumulation accounts Balances and main

aggregates

Operating balance^2

minus net investment in

nonfi nancial assets

Net lending (+)/net

borrowing (–)

Capital account^2 Net lending (+)/net

borrowing (–)

Conceptually, net lending (+)/net borrowing (–) in GFS is the same as in the SNA. In practice calculated values may differ

due to difference in treatment of some employment-related pension schemes.

Net acquisition of

fi nancial assets minus net

incurrence of liabilities

Change in fi nancial

worth due to transactions

= net lending(+)/net

borrowing (–)

Financial account Net lending (+) / net

borrowing (–)

Conceptually, transactions in fi nancial assets and liabilities in GFS are the same as in the SNA. In practice, calculated values

may differ due to differences in treatment of some employment-related pension schemes.

(^1) The use of the disposable income account is replaced by the use of the adjusted disposable income account by an alternative sequence of
accounts in which the secondary distribution of income account is augmented with the redistribution of income in kind account (see Chap-
ters 8 and 9 of the 2008 SNA for additional details on these accounts).
(^2) Capital transfers as recorded in the SNA capital account are included in GFS as revenue and expense.
accounts of the SNA with one exception: capital trans-
fers are shown in the capital account of the SNA, one
of the accumulation accounts. All of the GFS transac-
tions in nonfi nancial assets presented in the second
section of the Statement of Operations are shown in
the capital account of the SNA, while the GFS trans-
actions in fi nancial assets and liabilities correspond
to the transactions shown in the fi nancial account of
the SNA.
A7.19 Because each of the SNA accounts has its
own balancing item, there are more balancing items
in the SNA than in GFS. However, some of the SNA
balancing items can be derived from GFS. Th e diff er-
ent placement of capital transfers means that the GFS
balancing item for the fi rst section of the Statement
of Operations, the net operating balance, diff ers from
saving, the fi nal balancing item in the sequence of
current accounts in the SNA. Th e net operating bal-
ance of GFS minus capital transfers is comparable to
saving as calculated in the SNA. Net capital transfers
are recorded as an aggregate in the capital account
of the SNA. Conceptually, net lending/net borrow-
ing, the balancing item in GFS, is equivalent to the
net lending/net borrowing calculated in the capital
and fi nancial accounts of the SNA. However, the dif-
ference in the treatment of certain activities, such as
some employment-related pension arrangements (see
paragraph A7.46–A7.47), means that the value of net
lending/net borrowing in GFS may diff er from the
SNA. Th ese diff erences are reconcilable.
A7.20 Th e GFS Statement of Other Economic Flows
covers all other economic fl ows, classifi ed by type of
asset or liability aff ected and according to whether
the fl ow is a holding gain or an other change in the