Th is chapter describes the other economic fl ows that are

recorded in the government fi nance statistics frame-

work. Th e two major categories are holding gains and

losses and other changes in the volume of assets.

Introduction.

10.1 Other economic fl ows are changes in the

volume or value of assets or liabilities that do not re-

sult from transactions. Th is chapter describes the two

major categories of other economic fl ows that change

net worth:

• A holding gain or loss^1 is a change in the mon-
  etary value of an asset or liability resulting from
  changes in the level and structure of prices, ex-
  cluding qualitative or quantitative changes in the
  asset or liability. Holding gains and losses can
  apply to almost all assets and liabilities and, in
  the case of assets and liabilities expressed in a for-
  eign currency, include gains and losses resulting
  from changes in exchange rates.^2


• Other changes in the volume of assets are any
  changes in the value of an asset or liability that do
  not result from a transaction or a holding gain.
  Other changes in the volume of assets result from
  events that change the quantity or quality of an
  existing asset, events that add a new asset to the
  balance sheet or delete an existing asset from the
  balance sheet, and events that require a reclassifi -
  cation of existing assets.

(^1) Revaluation may also be used with the same meaning as holding
gain or loss.
(^2) A holding gain or loss always aff ects net worth. Th e words gain
and loss are used in reference to the direction of the change in
net worth. A fl ow that increases the value of an asset or decreases
the value of a liability will increase net worth and is referred to
as a holding gain. A fl ow that decreases the value of an asset or
increases the value of a liability will decrease net worth and is
a holding loss. References to fi nancial assets can be assumed to
refer also to liabilities.

Other Economic Flows

10

Table 10.1 Statement of Other Economic Flows

(Abbreviated)

9 Change in net worth due to other economic

fl ows

91 Nonfi nancial assets

92 Financial assets

93 Liabilities

4 Change in net worth due to holding gains and

losses

41 Nonfi nancial assets

42 Financial assets

43 Liabilities

5 Change in net worth due to other changes in

the volume of assets and liabilities

51 Nonfi nancial assets

52 Financial assets

53 Liabilities

Note: See Table 10.2 for a detailed classifi cation of other economic

fl ows.

10.2 Other economic fl ows are recorded in a State-

ment of Other Economic Flows; an abbreviated ver-

sion is shown in Table 10.1. Th e balancing item to

this statement is described as the change in net worth

due to other economic fl ows, which is defi ned as the

sum of the change in net worth due to holding gains

or losses and the change in net worth due to other

changes in the volume of assets.

• Th e balancing item change in net worth due to
  holding gains (or revaluations) is defi ned as the
  sum of the positive or negative holding gains on
  all assets and liabilities.


• Th e balancing item change in net worth due to
  other changes in the volume of assets is defi ned
  as the sum of the positive and negative other
  changes in the volume of assets and liabilities.

10.3 Many other economic fl ows change both the

value of an asset or a liability and the value of net

worth by the same amount. For example, holding

gains that lead to an increase in the value of assets