Government Finance Statistics Manual 2014

Glossary 403

Excises Excises are taxes levied as a product-specifi c unit tax on a predefi ned limited
range of goods .......................................................................................................5.62

Expenditure Expenditure is the sum of expense and the net investment in nonfi nancial
assets .......................................................................................................................4.21

Expense Expense is a decrease in net worth resulting from a transaction ........... 4.24, 6.1

Explicit contingent liabilities Explicit contingent liabilities are defi ned as legal or contractual fi nancial ar-
rangements that give rise to conditional requirements to make payments of
economic value .................................................................................................. 7.252

Extrabudgetary General government entities with individual budgets not fully covered by the

main (or general) budget are considered extrabudgetary ...............................2.82

Face value Face value of a debt instrument is the undiscounted amount of principal to be
repaid at (or before) maturity ............................................................... 3.115, 7.242

Fair value Fair value is a market-equivalent value defi ned as the amount for which an
asset could be exchanged, or a liability settled, between knowledgeable, willing
parties in an arm’s-length transaction ............................................................ 3.115

Financial account of the bal-
ance of payments

Th e fi nancial account of the balance of payments records transactions that in-

volve fi nancial assets and liabilities that take place between residents and non-

residents ..............................................................................................................A7.93

Financial assets Financial assets consist of fi nancial claims and gold bullion held by monetary

authorities as a reserve asset ...............................................................................3.48

Financial auxiliaries Financial auxiliaries consist of fi nancial corporations that are principally en-

gaged in activities associated with transactions in fi nancial assets and liabilities

or with providing the regulatory context for these transactions but in circum-

stances that do not involve the auxiliary taking ownership of the fi nancial as-

sets and liabilities being transacted ....................................................................2.54

Financial claim A fi nancial claim is an asset that typically entitles the owner of the asset (the

creditor) to receive funds or other resources from another unit, under the

terms of a liability ....................................................................................... 3.47, 7.15

Financial corporations Financial corporations are corporations that are principally engaged in provid-
ing fi nancial services, including insurance and pension fund services, to other
institutional units .............................................................................................. 2.115

Financial corporations sector Th e fi nancial corporations sector consists of resident corporations that are

principally engaged in providing fi nancial services, including insurance and

pension fund services, to other institutional units ..........................................2.53

Financial derivative contract A fi nancial derivative contract is a fi nancial instrument that is linked to an-

other specifi c fi nancial instrument or indicator or commodity and through

which specifi c fi nancial risks (e.g., interest rate risk, foreign exchange risk, eq-

uity and commodity  price risks, and credit risk) can be traded in their own

right in fi nancial markets ................................................................................. 7.204

Financial intermediaries Financial intermediaries are institutional units that incur liabilities on their

own account for the purpose of acquiring fi nancial assets by engaging in fi nan-

cial transactions on the market...........................................................................2.54