Changes from the GFSM 2001 and GFSM 1986 263
provident funds (see paragraph 2.148); sovereign
wealth funds (see paragraph 2.152); market regulatory
agencies (see paragraph 2.156); and development funds
and/or infrastructure companies or entities (see para-
graph 2.160).
A1.21 Th e annex to Chapter 2 of the GFSM 2001,
describing social protection, is subsumed in Appen-
dix 2 of the GFSM 2014. Th is appendix presents
guidance on the identifi cation and sectorization of
entities involved in social protection, as well as guid-
ance on the recording of the fl ows and stock posi-
tions related to their economic activities.
Chapter 3
A1.22 A distinction between monetary and non-
monetary transactions is introduced in paragraphs 3.8
and 3.19, respectively. Th is distinction also forms the
basis for the distinction between transfers (capital and
current transfers), exchanges, in-kind transactions,
and internal transactions.
A1.23 A defi nition of stock positions is provided
in paragraph 3.36. Th e concepts economic benefi ts and
ownership are used to defi ne economic assets, before
a distinction is drawn between legal and economic
ownership in paragraphs 3.38–3.39. Th ese concepts
are used to determine the asset boundary and defi ne
assets and liabilities (see paragraphs 3.42–3.50).
A1.24 Th e GFSM 2014 reinstates a more balanced
approach between having both accrual and cash infor-
mation in an integrated statistical framework. Th ere-
fore, starting in paragraph 3.61, alternative recording
bases are discussed with a reference to using the ac-
crual basis of recording in the Statement of Operations
(see paragraph 3.69) and using the cash basis of re-
cording in the Statement of Sources and Uses of Cash
(see paragraphs 3.67 and 3.103).
A1.25 Additional guidance on the application of
the accrual basis of recording principles is described
from paragraph 3.76 onward. Guidance on the time of
recording and measurement of taxes and other com-
pulsory transfers is presented in paragraph 3.77.
A1.26 Th e time of recording dividends when using
an accrual basis of recording is defi ned as when the
equity or shares go ex-dividend (see paragraphs 3.87
and 5.112).
A1.27 When using an accrual basis of record-
ing, the time of recording transactions in goods and
services, nonfi nancial assets, and many fi nancial as-
sets and liabilities is defi ned as the moment when
economic ownership changes. Recognition is given to
cases where change of ownership is not obvious and
additional guidance for those cases is provided (see
paragraphs 3.88–3.97).
A1.28 Guidance on the time of recording other
economic fl ows is described in paragraphs 3.98–3.102.
A1.29 Guidance on using the cash basis of record-
ing in the Statement of Sources and Uses of Cash is
elaborated in paragraphs 3.103–3.106.
A1.30 Guidance on valuation is elaborated on and
the section is structured to present descriptions of the
general valuation rule (see paragraph 3.107), valu-
ation of transactions (see paragraphs 3.108–3.112),
valuation of stock positions including alternatives val-
uation methods (see paragraphs 3.113–3.117), valu-
ation adjustments in special cases (see paragraphs
3.118–3.125), and valuation of other economic fl ows
(see paragraphs 3.126–3.129).
A1.31 Th e GFSM 2014 introduces a discussion
on currency, starting with a discussion on the unit
of account for the compilation of GFS in paragraph
3.130. Guidance is provided on currency conversions
for transactions and stock positions (see paragraphs
3.132–3.133) and the distinction between domestic
and foreign currency (see paragraphs 3.134–3.136)
and currency of denomination and currency of settle-
ment (see paragraphs 3.137–3.139).
A1.32 Starting in paragraph 3.152, the GFSM 2014
presents a detailed discussion of consolidation. Th e
concept is defi ned (see paragraphs 3.153–3.154), a
distinction is made between intrasectoral and inter-
sectoral consolidation (see paragraphs 3.155–3.157),
and reasons for consolidation are discussed (see para-
graphs 3.158–3.160), before conceptual guidelines for
the process of consolidation are presented (see para-
graphs 3.161–3.164). Paragraphs 3.165–3.166 present
practical guidelines on implementing consolidation,
while paragraphs 3.167–3.168 describe consolidation
principles used in other datasets.Chapter 4
A1.33 Th e analytic objectives of the GFS framework
were expanded to include the ability to assess manage-
ment and policy decisions, as well as sustainability and
liquidity decisions (see paragraphs 4.3–4.5).