262 Government Finance Statistics Manual 2014
paragraph 1.35, also recognizing the close relation-
ship with accounting standards. Paragraph 1.39 high-
lights the importance of good dissemination practices
as spelled out in the General Data Dissemination Sys-
tem, Special Data Dissemination Standard, and the
Special Data Dissemination Standard Plus.Chapter 2
A1.10 Th e delineation of general government and
public sector institutional units is clarifi ed. Th e chapter
is reorganized to fi rst delineate the domestic economy,
and then it describes institutional units and the types
of units that exist in macroeconomic statistics, before
defi ning institutional sectors. Th ese principles are then
applied to delineate the general government and pub-
lic sectors, and the practical application of the sector
classifi cation principles to selected cases is described.
A1.11 Th e concept of residence is elaborated on to
align with guidance of 2008 SNA and BPM6 (see para-
graph 2.6). Th e additional guidance includes defi ning
and describing the treatment of notional resident units
(see paragraph 2.13) and nonresident special purpose
entities (see paragraph 2.15). Additional guidance on
identifying international and regional organizations
is presented in paragraphs 2.16–2.19. Th e treatment
of multiterritory regional enterprises (see paragraph
2.20) and currency union central banks (see paragraph
2.21) is explained.
A1.12 Th e rationale for working with the institu-
tional unit in macroeconomic statistics is explained
in paragraph 2.23. In addition, the concepts estab-
lishment and enterprise are defi ned and explained in
paragraphs 2.24 and 2.25, respectively.
A1.13 Th e description of the types of institutional
units is organized to make a distinction between
persons or groups of persons in the form of house-
holds and legal or social entities (see paragraph 2.27).
Households are defi ned and described in paragraphs
2.28–2.29, while legal or social entities are defi ned,
and the types of legal or social entities described in
more detail (see paragraphs 2.30–2.38).
A1.14 Th e section on applying the defi nition of
institutional unit to government introduces a discus-
sion on artifi cial subsidiaries and ancillary activities,
and applies these concepts to resident SPEs and a gov-
ernment central borrowing authority (see paragraphs
2.42–2.45).A1.15 Th e defi nition and identifi cation of nonfi -
nancial and fi nancial corporations sectors are presented
in detail (see paragraphs 2.52–2.57). Th e additional
guidance is provided to clarify the distinction between
these corporations and government units. Th is includes
the introduction of three broad classes of fi nancial
corporations—namely, fi nancial intermediaries, fi nan-
cial auxiliaries, and other fi nancial corporations—and
specifi cally explains fi nancial intermediation.
A1.16 Th e delineation of general government and
public corporations is clarifi ed using the concept of
market and nonmarket producers. Th e application of
the concept economically signifi cant prices to deter-
mine whether a unit is a market or nonmarket pro-
ducer is elaborated on (see paragraphs 2.65–2.75).
A1.17 Guidance is provided on how to determine
whether a nonprofi t institution is under control of
government. Indicators of control and how to apply
these to establish control of government are provided
in Box 2.1.
A1.18 An extensive discussion on the public cor-
porations subsector is introduced in paragraph 2.104.
Th e rationale for the extension of GFS to include data
for public corporations is described in paragraph
2.105, and the types of public corporations are pre-
sented in paragraphs 2.113–2.121. Guidance is pro-
vided on how to determine whether a corporation is
under control of government (see paragraphs 2.107–
2.112). Indicators of control and how to apply them to
establish control of government over corporations are
provided in Box 2.2.
A1.19 Using the concepts of residence, institu-
tional units, control, and market versus nonmarket
producers, a decision tree for sector classifi cation of
the public sector is introduced in paragraph 2.124 and
Figure 2.4.
A1.20 A separate section describes the practical
application of the sector classifi cation principles to se-
lected cases—these cases are the topics of frequently
asked questions. Included are: the identifi cation of
quasi-corporations (see paragraph 2.125); distinguish-
ing head offi ces and holding companies (see paragraph
2.128); restructuring agencies (see paragraph 2.129);
fi nancial protection schemes (see paragraph 2.132);
special purpose entities (see paragraph 2.136); joint
ventures (see paragraph 2.140); sinking funds (see para-
graph 2.144); pension schemes (see paragraph 2.147);