224 Government Finance Statistics Manual 2014
other changes in the volume of assets. Consumption
of fi xed capital on these resources includes incidental
losses of animals and plants from natural causes, as
well as the decline in an animal’s or plant’s value as it
gets older.
8.35 Th e net investment in livestock that are culti-
vated for the products they yield year aft er year (e.g.,
dairy cattle) is equal to the total value of all mature
animals and immature animals produced on own ac-
count or acquired by users of the livestock minus the
value of their disposals minus consumption of fi xed
capital.8.36 Th e net investment in plantations, orchards,
etc. is equal to the value of the acquisitions of mature
trees, shrubs, etc. (including immature trees, shrubs,
etc. produced on own account) minus their dispos-
als minus consumption of fi xed capital. Th e value of
immature trees, shrubs, etc. may be approximated, if
necessary, by the value of accumulated costs incurred
in their production.Intellectual property products (31132)
8.37 As explained in paragraphs 7.64–7.73, intel-
lectual property products comprise:- Research and development (311321)
- Mineral exploration and evaluation (311322)
- Computer soft ware and databases (311323)
- Entertainment, literary, and artistic originals
(311324) - Other intellectual and property products (311325).
8.38 Th e value of expenditure on research and de-
velopment (311321) should be determined in terms of
the economic benefi ts it is expected to provide in the
future. It is treated as an asset except in cases where it
is clear that the activity does not entail any economic
benefi ts for its owner (see paragraphs 7.66–7.67).
8.39 As mentioned in paragraph 7.68, expenditure
incurred on exploration is classifi ed as the acquisi-
tion of mineral exploration and evaluation (311322).
Mineral exploration expenditure includes the costs of
actual test drillings and borings and all other costs in-
curred to make it possible to carry out the tests, such
as prelicense, license, acquisition, and appraisal costs,
the costs of aerial and other surveys, and transporta-
tion and other costs incurred to make the exploration
possible. Consumption of fi xed capital may be cal-
culated for such assets by using average service lives
similar to those used by mining or oil corporations in
their own accounts.8.40 Computer soft ware and databases (311323)
include acquisitions of computer soft ware that com-
prise programs, program descriptions, and sup-
porting materials for both systems and applications
soft ware that are expected to be used for more than
one year. Th e net investment in nonfi nancial assets
in the form of computer soft ware includes both the
initial development and subsequent extensions of
soft ware, as well as acquisition of copies that are
classifi ed as assets. Soft ware developed in-house is
valued at its cost of production. Th is category also
includes the purchase, development, or extension of
large databases that the unit expects to use for more
than one year. When a database is created, its value
will generally have to be estimated by a sum-of-costs
approach. Th ese costs include the cost of preparing
data in the appropriate format, staff time estimated
on the basis of the amount of time spent in develop-
ing the database, and costs of items included as use of
goods and services.^14 Not included are the cost of the
database management system and the cost of acquir-
ing or producing the data. Transactions in databases
sold should be valued at their market price, which
includes the value of the information content. If the
value of a soft ware component in a database that is
sold is available separately, it should be recorded as
the sale of soft ware.8.41 Th e production of new entertainment, liter-
ary, and artistic originals (311324) is recorded at their
current market price when they are actually traded.
However, this asset category is oft en undertaken on
own account. Subsequently, they may be sold outright
or by means of licenses. When produced on own ac-
count, it may be diffi cult to establish their market
value, which depends on the present value of the fu-
ture benefi ts the owner expects to derive from their
use. In the absence of information, it may be neces-
sary to value the acquisition of the original by its cost
of production.(^14) If the database is created in-house, compensation of employees
and use of goods and services related to this own-account capital
formation are excluded from compensation of employees (21) and
use of goods and services (22).