Expense 139
of additional contributions and property income, the
payment of benefi ts, changes in the actuarial assump-
tions, and the passage of time. Th e property expense
attributed to a pension fund’s policyholders is equal
to the increase in the liability resulting from the prop-
erty income accruing on the pension fund’s assets
held on behalf of the benefi ciaries and the passage of
time, which occurs because the future benefi ts are dis-
counted over fewer reporting periods.
6.118 With defi ned-contribution schemes, the
level of contributions to the fund, rather than the level
of benefi ts, is guaranteed by the employer. All defi ned-
contribution schemes are funded (see paragraph
A2.55), and the liability of a defi ned-contribution
scheme is equal to the current market value of the
fund’s assets. Th erefore, the property expense attrib-
uted to insurance policyholders is equal to the prop-
erty income receivable from the investment of the
scheme’s assets. Any holding gains on the scheme’s
assets are equally refl ected in holding losses on the
scheme’s unit’s liability to the benefi ciaries.
6.119 Th e increase/decrease in the value of invest-
ment fund shares (or units), other than from other
economic fl ows, is recorded as property income, ei-
ther distributed to the share- (or unit) holders or rein-
vested by the holders in the shares (or units).
Rent (2814).
6.120 Rent (2814) is the expense payable to the
owners of a natural resource (the lessor or landlord)
for putting the natural resource at the disposal of an-
other institutional unit (a lessee or tenant) for use
of the natural resource in production. Rent payable
is typically related to a resource lease on land, sub-
soil resources, and on other natural resources. Rent
accrues continuously to the asset’s owner through-
out the period of the contract and may be payable in
cash or in kind. Th e types of resource rent and the
boundary between resource rent, rental of produced
assets, and taxes are described in detail in paragraphs
5.124–5.132 in the context of the corresponding rev-
enue item.
Reinvested earnings on foreign direct investment (2815)
6.121 Reinvested earnings are the direct inves-
tor’s share of the retained earnings of the direct in-
vestment enterprise. Public corporations may have
foreign direct investors. Actual distributions to
such nonresident foreign direct investors may be
made out of their distributable income in the form
of dividends or withdrawals of income from quasi-
corporations. However, macroeconomic statistics
also require the retained earnings of a foreign direct
investment enterprise to be recorded as if they were
distributed and remitted to foreign direct investors
in proportion to their ownership of the equity in the
enterprise and then reinvested by them by means of
additions to equity. Th e imputed remittance of these
retained earnings is classifi ed as a form of distrib-
uted income that is separate from, and additional
to, any actual payments of dividends or withdrawals
of income from quasi-corporations. Th is treatment
assumes that the decision to retain some earnings
within the enterprise must represent a deliberate in-
vestment decision on the part of the foreign direct
investor. Reinvested earnings are described in detail
in paragraphs 5.134–5.135 in the context of the cor-
responding revenue item.Transfers not elsewhere classifi ed (282).
6.122 Transfers not elsewhere classifi ed (282)
payable include a number of gift s and transfers to in-
dividuals, private nonprofi t institutions, nongovern-
mental foundations, corporations, or government
units that are not included in other categories of
transfers and serve quite diff erent purposes. Trans-
fers not elsewhere classifi ed (282) are subdivided
into current transfers not elsewhere classifi ed (2821)
and capital transfers not elsewhere classifi ed (2822).
It may be of analytic interest to classify this group
of transactions according to the recipients, such
as residents and nonresidents. Among residents, it
may also be of interest to classify them according to
whether these are households, nonprofi t institutions
serving households, public nonfi nancial corpora-
tions, public fi nancial corporations, or private cor-
porations (see Table 6.10).Current transfers not elsewhere
classifi ed (2821)
6.123 Th e most important types of current trans-
fers included here are:- Current transfers to nonprofi t institutions serving
households: Th ese transfers usually consist of cash