The Balance Sheet 207
of own funds is equal to the value of shares and other
equity (at current market prices on the balance sheet
date) plus net worth, as illustrated in Figure 7.1.
7.232 In the case of quasi-corporations, their im-
puted shareholders’ equity is equal to their own funds.
Public corporations are seen to have a net worth
(which could be positive or negative) in addition
to the value of the shareholders’ equity, if shares are
traded in the market or the value can be determined
independently. Th is is because shares are included in
the public corporation’s balance sheet at their current
market price on the balance sheet date.
7.233 If the current market value of equity and invest-
ment fund shares cannot be determined independently
or they do not trade in the market, an alternative calcu-
lation is similar to the treatment of quasi-corporations
(see paragraph 7.232). Th is calculates the value of eq-
uity and investment fund shares in such a way that the
net worth of the public corporation is zero.
Memorandum Items.
7.234 It may be desirable to record memorandum
items to provide supplemental information about
items (such as aggregates and balancing items) related
to, but not included on, the balance sheet. Table 7.10
shows the memorandum items to the balance sheet
proposed in the GFS framework (additional items and
subitems may be added, as needed).
Net Financial Worth (6M2).
7.235 Th e net fi nancial worth (6M2) of an insti-
tutional unit (or grouping of units) is the total value
of its fi nancial assets minus the total value of its li-
abilities. Th is balancing item is oft en cited because of
the general government and public sectors’ infl uence
on the fi nancial system and also because of the dif-
fi culties in valuing government-unique nonfi nancial
assets.
Debt^65Gross debt
7.236 To t a l gross debt—oft en referred to as “total
debt” or “total debt liabilities”—consists of all liabili-
ties that are debt instruments. A debt instrument is
defi ned as a fi nancial claim that requires payment(s)
of interest and/or principal by the debtor to the credi-
tor at a date, or dates, in the future. Th e following in-
struments are debt instruments:- Special Drawing Rights (SDRs)
- Currency and deposits
- Debt securities
- Loans
- Insurance, pension, and standardized guarantee
schemes [GFS] - Other accounts payable.
(^65) For a detailed discussion on the compilation of public sector
debt, see the PSDS Guide.
Table 7.10 Classifi cation of Memorandum Items
to the Balance Sheet
6M2 Net fi nancial worth
6M3 Gross debt at market value
6M4 Gross debt at nominal value
6M35 Gross debt at face value
6M36 Net debt at market value
6M37 Net debt at nominal value
6M38 Net debt at face value
6M391 Concessional loans at nominal value
6M392 Implicit transfers resulting from loans at
concessional interest rates
6M5 Arrears
6M6 Explicit contingent liabilities^1
6M61 Publicly guaranteed debt
6M62 Other one-off guarantees
6M63 Explicit contingent liabilities not
elsewhere classifi ed
6M7 Net implicit obligations for future social
security benefi ts^1
6M8 Nonperforming loan assets at fair value
6M81 Nonperforming loan assets at nominal
value
(^1) The contingent liabilities are shown in the Summary Statement
of Explicit Contingent Liabilities and Net Implicit Obligations for
Future Social Security Benefi ts (Table 4.6).
Figure 7.1 Net Worth in a Macroeconomic
Statistics Balance Sheet
Assets (at market
value)
Shares and other equity
(at market value) + net
worth = Own funds
Liabilities excluding
shares and other equity
(at market value)