Government Finance Statistics Manual 2014

368 Government Finance Statistics Manual 2014

Minus: Actual and imputed sales of goods and ser-

vices (GFS revenue item 142);^19

Minus: Changes in inventories of work in progress and

finished goods (GFS items 31222 and 31223).

A7.58 In GFS, purchases of goods and services that

are transferred to fi nal consumers without further

transformation are classifi ed as social security benefi ts

in kind (GFS expense item 2712), social assistance ben-

efi ts in kind (GFS expense item 2722), employment-

related social benefi ts in kind (GFS expense item 2732),

or the in-kind portion of current transfers not else-

where classifi ed (GFS expense item 2821), depending

on the nature and the organization of the distribution.

A7.59 Th e GFS expense categories for social ben-

efi ts in kind include reimbursements to households

for purchases of goods and services receivable as so-

cial benefi ts in kind, and direct purchases by general

government units of goods and services from market

producers and provided as social benefi ts in kind.

In addition, the GFS item for transfers not elsewhere

classifi ed (2821) may include purchases of goods and

services from market producers that are distributed

directly to households for fi nal consumption other

than social benefi ts. Goods and services produced

by government themselves and subsequently used as

transfers in kind are not reported as in-kind transac-

tions in GFS, but are included in the SNA concept for

social transfers in kind (D63).

A7.60 Because the SNA separately measures

production and distribution of goods and services,

transactions in kind are normally recorded in the

accounts as if they are monetary transfers followed

by the beneficiary spending the transfer to obtain

the goods and services concerned. Therefore, so-

cial transfers in kind (D63) consist of final con-

sumption expenditure undertaken by government

and NPISHs on behalf of households. For this

reason they are described as individual goods and

services. Information on these individual goods

and services may be obtainable from the cross-

classification of the COFOG and economic type of

expense in Table 6A.2. The annex to Chapter 6 lists

the services that are considered individual.

(^19) When an existing good is sold, the amount receivable from its sale
is recorded as negative fi nal consumption expenditure if the initial
outlay on the good was classifi ed as fi nal consumption expenditure.
A7.61 In the SNA, an adjustment is made in the use
of disposable income account, as well as in the use of
adjustment disposable income account for the change
in pension entitlements (D.8). Th is adjustment for the
change in pension entitlements is equal to:
Th e total value of the actual social contributions pay-
able to funded pension schemes,
Plus: The total value of the imputed social con-
tributions payable to employment-related
pension schemes,
Plus: The total value of social contribution sup-
plements,
Minus: The value of the associated service charges;
Minus: The total value of the pensions paid out as
pension benefits by the pension schemes.
Th e diff erent treatment of pension schemes eliminates
the need for this adjustment item in the GFS frame-
work (see paragraph 5.95).

Th e accumulation accounts

A7.62 Saving is the balancing item of the last

of the current account in the SNA and the starting

point for the accumulation accounts. Th e fi rst group

of accumulation accounts, comprising the capital

and fi nancial accounts, covers transactions in assets

or liabilities and changes in net worth due to capital

transfers. A second group of accumulation accounts,

comprising the other changes in volume of assets

account and revaluation account, relates to changes

in assets and liabilities caused by factors other than

transactions.

Th e capital account

A7.63 Th e capital account records transactions

linked to the acquisition of nonfi nancial assets and

capital transfers. Th e account starts with net saving,

the fi nal balancing item of the current accounts, and

8.1 Classifi cation of Transactions in Nonfi nancial Assets

transfers. Th e balancing item is either net lending (+),

which measures the net amount available to fi nance

other sectors, or net borrowing (–) which corresponds

to the net fi nancing from other sectors.

A7.64 Most of the entries in the capital account

of the SNA can be derived from the corresponding

entries in GFS. For example, the gross fi xed capital