266 Government Finance Statistics Manual 2014
A1.64 Th e treatment of fi nes and penalties im-
posed for evasion of taxes and bails set by courts is
clarifi ed in fi nes, penalties, and forfeits (143) (see para-
graphs 5.143–5.144).
A1.65 Th e GFSM 2001 revenue categories for vol-
untary transfers other than grants (144) and miscella-
neous and unidentifi ed revenue (145) are subsumed in
two new categories—namely, transfers not elsewhere
classifi ed (144) and premiums, fees, and claims re-
ceivable related to nonlife insurance and standardized
guarantee schemes (145) (see paragraphs 5.145 and
5.149). Revenue from subsidies (14411) receivable is
introduced as a separate category of transfer not else-
where classifi ed (see paragraph 5.146), while the other
transfers are distinguished as other current transfers
not elsewhere classifi ed (14412) (see paragraph 5.147)
and capital transfers not elsewhere classifi ed (1442)
(see paragraph 5.148).
A1.66 Th e revenue category premiums, fees, and
claims related to nonlife insurance and standardized
guarantee schemes (145) (see paragraph 5.149) is in-
troduced to allow for the appropriate recording of the
revenue related to nonlife insurance and standardized
guarantees. Subcategories provide for the identifi ca-
tion of premiums receivable (14511), fees for standard-
ized guarantees receivable (14512), current claims
receivable (14513), and capital claims receivable (1452)
(see paragraphs 5.150–5.151).Chapter 6
A1.67 Th e rationale for defi ning expense as a de-
crease in net worth resulting from a transaction is
added in paragraph 6.1.
A1.68 Th e distinction between economic classifi ca-
tion of expense and functional classifi cation of expense
is clarifi ed in paragraphs 6.2 and 6.3, respectively.
A1.69 Th e section on defi ning expense is enhanced
with the inclusion of a discussion on the treatment of
refunds and corrections and the delineation between
expense and transactions in assets and liabilities (see
paragraphs 6.4–6.5).
A1.70 Th e section on the time of recording expense
is expanded to clearly indicate the time of recording
when using the accrual basis of recording, as well as
the cash basis of recording. Furthermore, the time of
recording of the acquisition and use of goods and ser-
vices (22) is clarifi ed (see paragraphs 6.6–6.7).A1.71 Th e defi nition of compensation of employ-
ees is clarifi ed to emphasize the individual employer-
employee relationship, and the exchange of manual
and intellectual labor services (see paragraph 6.9).
Furthermore, the nature of wages and salaries in cash
(see paragraph 6.13) and in kind (see paragraph 6.17)
is elaborated on.
A1.72 Guidance on estimating imputed employers’
social contributions (2122) is elaborated on. A clear
distinction between nonpension and employment-
related pension benefi ts is introduced (see paragraphs
6.23–6.26).
A1.73 Th e section on the use of goods and services
(22) is reorganized to: defi ne the concept (see para-
graph 6.27); make a distinction between the time of
recording use of goods and services when using an
accrual and cash basis of recording (see paragraphs
6.28–6.31); describe the boundary between use of
goods and services and compensation of employees
(see paragraph 6.33); describe the boundary between
use of goods and services and transfers (see paragraph
6.37); describe the boundary between use of goods
and services and transactions in the acquisition of
nonfi nancial assets (see paragraph 6.43); and describe
other boundaries related to use of goods and services
(see paragraph 6.50).
A1.74 Conceptually, the coverage of use of goods
and services (22) in the GFSM 2001 is changed to ex-
clude weapons and weapons systems in the GFSM 2014
(see paragraphs 6.49). Th ese are recognized as the ac-
quisition of a specifi c category of nonfi nancial assets
in the GFSM 2014 (see paragraph 8.43).
A1.75 Th e relationship between inventory (612)
and use of goods and services (22) is clarifi ed in
Table 6.3.
A1.76 Th e treatment in GFS of the implicit fees for
fi nancial services is explained (see paragraphs 6.52
and 6.81). Th ese implicit fees include items such as
fi nancial intermediation services indirectly measured
(FISIM), service fees implied by nonlife insurance
premiums, and the implicit fees payable by govern-
ments to central banks for nonmarket services.
A1.77 Th e concept consumption of fi xed capital
(23) is elaborated on. Th e relation between consump-
tion of fi xed capital as recorded in the 2008 SNA and
in GFS is explained (see paragraph 6.53). Th e relation