68 Government Finance Statistics Manual 2014
Figure 4.1 Structure of the GFS Analytic Framework++=Minus++=++=++=++=EqualsPlusEquals Equals EqualsOpening
Balance SheetEqualsMinus Minus MinusEqualsPlus Plus PlusEquals Equals+=Statement of
OperationsEqualsNet worthStock positions Flows Stock positionsChange
in net worth
due to transactions
(net operating
balance)Change
in net worth due
to other economic
flowsRevenue
minus
ExpenseNonfinancial
assetsFinancial assetsLiabilitiesTransactions in
nonfinancial
assetsTransactions in
financial assetsTransactions in
liabilitiesOther economic
flows in
nonfinancial assetsOther economic
flows in
financial assetsOther economic
flows in liabilitiesNet financial
worthChange in net
financial worth due
to transactions (net
lending (+) / net
borrowing (–))Change in net
financial worth
due to other
economic flowsNet worthNonfinancial
assetsFinancial assetsLiabilitiesNet financial
worthTransactions Other economic flowsOpening
Balance SheetClosing
Balance SheetStatement of Other
Economic FlowsStatement of
OperationsEqualsPlusEqualsMinusEqualsPlusEqualsMinusEqualsPlusEqualsMinusEqualsPlusEqualsMinusEqualsas the sale of a good or service by one unit and its
purchase by another (see paragraph 3.5). Th e frame-
work also recognizes that a unit can act in two capaci-
ties of economic interest and includes as transactions
some items that do not involve another institutional
unit. For example, consumption of fi xed capital rec-
ognizes that a unit is both the owner of a fi xed assetand the consumer of the services provided by the
asset. Taken together, transactions constitute the larg-
est share of the fl ows associated with the implemen-
tation of fi scal policy. As described in the following
section, transactions are classifi ed to demonstrate
how general government and public sector units raise
revenue and spend it, and to show the eff ects of fi scal