Government Finance Statistics Manual 2014

380 Government Finance Statistics Manual 2014

data as a proxy for data compiled on an accrual

basis, or make adjustments to cash data to approx-

imate accrual data. Th e fi nancial corporations

sector is oft en more advanced in implementing

accrual accounting. Oft en, certain items may not

be correctly accrued to the time when the eco-

nomic event occurred—for example, they may

be using diff erent methods to accrue discount or

premiums on bonds.

• Va l u a t i o n—While conceptually both datasets
  should follow the same valuation principles for
  assets and liabilities, national practices may diff er.
  Where valuation diff erences in source data exist,

A7.1 Main Diff erences between GFS and the SNA.

and fi nancial statistics, unless valuation adjustments

are made when the respective datasets are prepared.

• Dematerializing of debt instruments—Where
  governments issue tradable securities, they oft en
  have no knowledge or record of transactions
  in the secondary market, so the sector holding
  such securities can usually be determined either
  by surveying the ultimate purchaser of such se-
  curities or by using data from a centralized se-
  curities depository. However, quite oft en these
  instruments are held by nominees of the fi nan-
  cial corporations sector, which may complicate
  the identifi cation of the owners of claims of the
  government. Th e complexity of determining
  ownership of tradable instruments may further
  introduce inconsistency in the data.

A7.104 Due to the fi nancial asset/liability posi-

tions held between general/central government and

the fi nancial corporations sector, some additional

revenue and expense fl ows occur between these sec-

tors. Further consistency checks can be performed

on these revenue and expense transactions where the

level of detail in the source data permits them. Th ese

relate specifi cally to receivables/payables in respect of

interest, dividends, other property income, subsidies,

and capital transfers between the general/central gov-

ernment sector and the fi nancial corporations sector.

Comparison of the Analytical

4.1 Structure of the GFS Analytic Framework

Environmental-Economic Accounting

Central Framework

A7.105 Th e System of Environmental-Economic

Accounting (SEEA) Central Framework is the in-

ternational statistical standard for environmental-

economic accounting. Th e SEEA Central Framework

contains the internationally agreed standard con-

cepts, defi nitions, classifi cations, and accounting rules

and tables for producing internationally comparable

statistics on the environment and its relationship with

the economy. Th e SEEA Central Framework is a mul-

tipurpose conceptual framework that presents the

stock positions and changes in these stock positions

(fl ows) of environmental assets.

Comparing the Accounts in GFS and SEEA Central Framework.

A7.106 Th e SEEA Central Framework follows a

similar accounting structure to the 2008  SNA and

this Manual, and uses consistent concepts, defi ni-

tions, and classifi cations to facilitate the integration

of environmental and other macroeconomic statis-

tics. Consequently, the SEEA Central Framework

allows for the integration of environmental informa-

tion (oft en measured in physical terms) with eco-

nomic information (oft en measured in monetary

terms) in a single framework. However, given the

specifi c analytical focus of the SEEA Central Frame-

work on the environment and its linkages with the

economy, as well as its focus on the measurement of

fl ows and stock positions in physical and monetary

terms, there are some limited diff erences between

the SEEA Central Framework and the 2008 SNA.^26

To the extent that SEEA Central Framework is con-

sistent with the 2008 SNA, it is also consistent with

this Manual.

Th e Nature of Environmental Protection Activities and Accounting

A7.107 Environmental protection activities are

those activities whose primary purpose is the pre-

vention, reduction, and elimination of pollution and

other forms of degradation of the environment. Th ese

activities include, but are not limited to, the preven-

tion, reduction, or treatment of waste and wastewater;

the prevention, reduction, or elimination of air emis-

sions; the treatment and disposal of contaminated

soil and groundwater; the prevention or reduction

of noise and vibration levels; the protection of bio-

diversity and landscapes, including their ecological

functions; monitoring of the quality of the natural

environment (air, water, soil, groundwater); research

(^26) See SEEA Central Framework, paragraphs 1.39–1.52.