376 Government Finance Statistics Manual 2014
(D62 and D63 in SNA) may be diff erent from
the corresponding GFS items (see paragraphs
A7.45–A7.47).- Current international cooperation is separately
reported in the GFS Statement of Operations and
should be reported consistently in the secondary
income account. Grants payable to foreign govern-
ment and international organizations (GFS item
2611 and 2621 respectively) and grants receivable
from foreign governments and international orga-
nizations (GFS item 1311 and 1321 respectively)
are usually the most important linkage between
the GFS and the secondary income account. - Other miscellaneous current transfers (D75 in
SNA)^23 comprise various items of current trans-
fers receivable and payable (see paragraph A7.49). - Current transfers of government sector units re-
lated to nonlife insurance premiums and claims
and miscellaneous current transfers would re-
quire a distinction of those receivable or payable
to resident and nonresidents.
Th e capital account
A7.89 Th e capital account in the international ac-
counts shows transactions between residents and
nonresidents related to capital transfers receivable
and payable and the acquisition and disposal of non-
produced nonfi nancial assets. It records acquisitions
and disposal of nonproduced nonfi nancial assets,
such as land sold to embassies and sales of leases and
licenses, as well as capital transfers—that is, the pro-
vision of resources for capital purposes by one party
without anything of economic value being supplied in
direct return to that party.
A7.90 Nonproduced nonfi nancial assets consist
of fi ve items: land, mineral and energy resources, and
other naturally occurring assets, contracts, leases, and
licenses, and marketing assets and goodwill (GFS items
3141, 3142, 3143, 31441, and 31442, respectively).
Th ere is full consistency in the macroeconomic statis-
tical framework with regards to the items of nonpro-
duced nonfi nancial assets that exist. Where general
government sector units acquire or dispose of these
assets in transactions with nonresidents, supplemen-
tary information would be required from the GFS(^23) Th e detailed corresponding GFS categories are shown in Tables
A7.3 and A7.4.
transactions to allow compilation or consistency
checks with the international accounts.
A7.91 It should be noted that the capital account
in the balance of payments does not show produced
nonfi nancial assets, as is the case in the SNA and
GFS. It shows only transactions in nonproduced
nonfi nancial assets. Transactions in produced nonfi -
nancial assets are included in the goods and services
account, which does not distinguish whether those
goods or services are destined for capital or current
purposes.
A7.92 Conceptually capital transfers are the same
as the capital transfers recorded in the SNA and GFS.
Governments are oft en involved in these transfers,
which should be reported in a consistent way in GFS
and the capital account of the balance of payments.
Th ese capital transfers consist of compulsory trans-
fers to governments, transfers under court orders, and
voluntary transfers. Th ere may also be imputed capi-
tal transfers as a result of governments’ use of special
purpose entities resident in other economies, for fi scal
purposes (see paragraph 2.138 and paragraphs 8.24–
8.26 of the BPM6). Th e capital account of the balance
of payments includes the following main types of cap-
ital transfers:
- Debt forgiveness: When government/public sec-
tor entities are involved in debt forgiveness (see
paragraphs A3.7–A3.9), either as a recipient or
grantor, the event is usually well known and it
should be identifi able in the GFS accounts. In
the balance of payments capital account, debt
forgiveness received from nonresidents is re-
fl ected as revenue in capital grants received from
either foreign governments, international or-
ganizations, or included in capital transfers not
elsewhere classifi ed, when received from other
nonresident entities. Th e corresponding entries
in GFS are recorded in GFS items 1312, 1322, or
1442 respectively. A corresponding reduction in
the appropriate foreign debt instrument will be
recorded. When the government sector unit is
the provider of debt relief to a nonresident, an
expense is refl ected as capital grants to foreign
governments or international organizations, or is
included in capital transfers not elsewhere classi-
fi ed, when provided to other nonresident entities.
Th e GFS expense is recorded in GFS items 2612,
2622, or 2822, respectively. A corresponding