260 Government Finance Statistics Manual 2014
recording is followed for allocated gold accounts
that become part of monetary gold. When unal-
located gold accounts become reserve assets, they
are reclassifi ed from currency and deposits to
monetary gold, also through other changes in the
volume of assets. Monetary gold may be sold to
another monetary authority, but otherwise, any
reduction in holdings follows a similar declas-
sifi cation path; the monetary gold is reclassifi ed
to be either a valuable or inventories (in the case
of gold bullion) or currency and deposits (in the
case of unallocated gold accounts). Subsequent
transactions are recorded in terms of inventories
or valuables or currency and deposits and not in
terms of monetary gold.- In cases when benefi ts under a defi ned-contribution
pension scheme are converted to annuities, a reclas-
sifi cation should be recorded from pension entitle-
ments to annuities entitlements. - When loans become tradable in the conditions
stated in paragraph 7.149, a reclassifi cation should
be recorded from loans to debt securities. - If arrears arise and the contract provides for a
change in the characteristics of a fi nancial in-
strument when it goes into arrears, this change
should be recorded as a reclassifi cation in the
other changes in the fi nancial assets and liabili-
ties account. Th e reclassifi cation applies to situ-
ations where the original contract remains, but
the terms within it changes (e.g., interest rates or
repayment periods).- If the amount payable under a derivative remains
due for payment aft er the derivative matures, the
amount due no longer represents a derivative be-
cause the value is fi xed. It is therefore reclassifi ed
under other accounts receivable or payable.^23 - Bonds that are convertible into equity are reclas-
sifi ed as equity and investment fund shares when
the option is exercised. - In cases where government units acquire equity
in a public corporation or quasi-corporation as a
result of legislation or an administrative change
creating the corporation or quasi-corporation,
this event will amount to a reclassifi cation of the
corporation’s existing assets and liabilities that
results in an addition of equity and investment
fund shares to the balance sheets of government
and the corporation (see paragraph 9.50).
(^23) Th e creation and exhaustion of fi nancial derivatives are transac-
tions in fi nancial assets (and liabilities), not other changes in the
volume of assets.