1 / 24

Non-profit institutions serving households (NPISH)

Non-profit institutions serving households (NPISH). THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION. Leonidas Akritidis National Accounts in Practice – Advanced course Luxembourg, 2-11 October 2017. Content Definition of NPISH and units included

joycej
Download Presentation

Non-profit institutions serving households (NPISH)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Non-profit institutions serving households (NPISH) THE CONTRACTOR ISACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION Leonidas Akritidis National Accounts in Practice – Advanced course Luxembourg, 2-11 October 2017

  2. Content • Definition of NPISH and units included • Main statistics: output and final consumption • Source data • Separating NPISH (S.15) and Households S.14) in the sequence of accounts

  3. Institutional Sectors Domestic Economy S.1 Rest of the World S.2 Non-Financial Corporations S.11 Financial Corporations S.12 General Government S.13 Households S.14 Non-Profit Institutions Serving Households S.15

  4. Definition of NPISH • NPISH consists of non-profit institutions, which are separate legal entities, which serve households and which are private non-market producers. Their principal resources are voluntary contributions in cash or in kind from households in their capacity as consumers, from payments made by general government and from property income.

  5. Institutional units Non-market producers • Controlled by government units No YES NPISH S.15 General Government S.13

  6. Definition: special consideration • In case NPISH (S.15) units are not very important (small insignificant amounts), and their transactions are indistinguishable or separately identifiable from households, such units are inevitably included in the households sector (S.14); • However, special care in needed, for the split of S.14 and S.15 (discussed later).

  7. Definition: units included NPISHs that provide non-market goods and services, include the following units: • trade unions, • professional or learned societies, • consumers’ associations, • political parties, • churches or religious societies (including those financed but not controlled by governments), • and social, cultural, recreational and sports clubs;

  8. Definition: units included NPISHs that provide non-market goods and services, include the following units: • charities, • relief and aid organisations financed by voluntary transfers in cash or in kind from other resident and non-resident institutional units. NOTE: NPISHexcludes such entities, where membership gives a right to a predetermined set of goods and services.

  9. Main statistics Output of NPISH is calculated as a sum of costs: Output (P.1) = Intermediate consumption (P.2) + Consumption of fixed capital (P.51C) + Compensation of employees (D.1) + Net taxes on production (D.29)

  10. Main statistics Final consumption of NPISH is calculated as follows: Output (P.1) – sales – own account = Final consumption (P.3)

  11. Separating S.15 from S.14 in the sequence of accounts • ESA 2010 Transmission Programme requires annual sector accounts data separately for household and NPISH sectors from 2012; • This breakdown requires additional source data on entities belonging to the NPISH sector; • In practice, this implies further research on gathering data for the non-financial and financial transactions in order to split S.14 and S.15.

  12. Sequence of Accounts • Typical source data Current Accounts Non-Financial Account (NFA) Source data:, e.g. -> Income and expenditure Directly from NPISH units Or Indirectly from counterparts -> Non-financial balances Accumu- lation Accounts Financial Account (FA), e.g. Financial assets/aiab. balances

  13. Sequence of Accounts • BALANCED Non-Financial Account (NFA) Net lending/borrowing (B.9) Equals Financial Account (FA) Net lending/borrowing (B.9)

  14. Separating S.15 from S.14 in the sequence of accounts It is essential to target the most important types of units in your countries (see slides 7-8), e.g. • churches or religious organisations; • trade unions; • political parties; • professional or learned societies; • charities, foundations, social organisations; • social, cultural, recreational and sports clubs;

  15. Separating S.15 from S.14 in the sequence of accounts After exploring the additional data collected from the above NPISH units, further (supplementary) counterparts data could be used in order to separate S.15 from S.14 in the full sequence of accounts.

  16. Separating S.15 from S.14 using counterparts data in sequence of accounts Production account • P.1 rec: sum of cost • P.2 pay and P.51C pay: from NPISH data • D.1 pay and D.29 pay from fiscal data In red other components to calculate P.1, but are not included in the production account Generation of income account D.1 pay from fiscal data

  17. Separating S.15 from S.14 using counterparts data in sequence of accounts Allocation of primary income account • Interest (D.41) pay/rec: from banking/financial statistics, government’s data, • Dividends (D.421) rec: financial statistics, non-financial corporations accounts

  18. Separating S.15 from S.14 using counterparts data in sequence of accounts Secondary distribution of income account • Taxes on Income (D.5) pay: from government’s data • Current transfers (D.7) pay/rec: • Non-life insurance (D.71pay/D.72rec): from Insurance Statistics; • Donations, transfers(D.75 rec) from S.14, S.13 and the EU: from HBS, Government’s data • Capital transfers (D.9) pay/rec: Government’s data

  19. Separating S.15 from S.14 using counterparts data in sequence of accounts Use of disposable income account • Final consumption (P.3 pay): see slide 10 Capital account • Gross fixed capital formation (P.51 pay): from non-financial balances of NPISH

  20. Separating S.15 from S.14 using counterparts data in sequence of accounts Redistribution of income in kind • Social transfer in kind – non-market production (D.631pay): from HBS, but also from special projects dedicated to STiK related to on Household perspective in income, consumption and wealth Use of adjusted disposable income account • Actual final consumption (P.4 pay) = P3 – D.631

  21. Separating S.15 from S.14 using counterparts data in sequence of accounts Financial Account • The contributions of NPISH in the financial account is small (see next slide);

  22. Source: Eurostat

  23. Source: Eurostat

  24. Separating S.15 from S.14 using counterparts data in sequence of accounts Financial Account • The contributions of NPISH in the financial account is small (see next slide); • The main financial assets includes: deposits, short-term loans, long-term debt securities and investment funds; • The main financial liabilities, mainly as equities and loans; Special care is needed when separating S.15 from S.14, because the two sectors are largely calculated as residual sectors in the financial account.

More Related