1 / 22

Flows and stocks

This advanced course provides an overview of flows and stocks in economic systems, including detailed transaction categories and their impact on asset positions. Learn about the different types of transactions and changes in assets, as well as the recording and valuation of various economic flows.

rebeccadlewis
Download Presentation

Flows and stocks

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. Flows and stocks THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION Martin Kellaway National Accounts in Practice – Advanced course Luxembourg, 2-11 October 2017

  2. Overview • Reminder on flows and stocks • Detailed transaction categories

  3. Flows and stocks • Flows refer to actions and economic effects of events that take place within a given time period • Stocks refer to positions at a point of time

  4. Flows and stocks • Flows (ESA 2010 1.65) reflect the creation, transformation, exchange, transfer or extinction of economic value. • They involve changes in the value of an institutional unit's assets or liabilities • Economic flows are of two kinds: transactions, and other changes in assets • Transactions appear in most of the accounts and tables of the system

  5. Transactions • Occur by mutual agreement • 4 types: • Transactions in products • Distributive transactions • Financial transactions • Other transactions (NP)

  6. Transactions in products • Transactions in Products are all goods and services created within the production boundary • Includes goods and services created in a productive process • Includes own account production of agricultural products • Includes own account construction of dwellings • Excludes unmanaged growth of forests or fish stocks • Excludes you cleaning your own house

  7. Transactions in products • P.1 Output • P.2 Intermediate consumption • P.3 Final consumption expenditure • P.4 Actual final consumption • P.5 Gross capital formation • P.6 Export of goods and services • P.7 Import of goods and services

  8. Transactions in products • Output: recorded and valued when it is generated by the production process • Intermediate consumption: recorded and valued when goods & services enter the production process • Final consumption expenditure: includes expenditures by HH, NPISH and GG recorded at the time of change of ownership, or delivery of service

  9. Transactions in products • Gross capital formation- acquisition less disposal of fixed assets (e.g. buildings, machinery, cultivated trees & livestock, R&D, mineral exploration, computer software, land improvements, artistic originals) • Gross fixed capital formation (P.51): when ownership transfers • Consumption of fixed capital (P.51c), net fixed capital formation (P.51n) • …

  10. Transactions in products • Gross capital formation- • Change in inventories (P.52)- materials & supplies, work in progress, finished goods, goods for resale: values of goods entering inventories less goods withdrawn • Acquisition less disposal of valuables (P.53) - recordedwhen ownership transfers

  11. Distributive transactions Distributive transactions: • D.1 Compensation of employees • D.2 Taxes on production and imports • D.3 Subsidies • D.4 Property income • D.5 Current taxes on income, wealth, etc. • D.6 Social contributions and benefits • D.7 Other current transfers • D.8 Adjustment for the change in pension entitlements • D.9 Capital transfers

  12. Transactions in non-produced assets • Non-produced assets (NP)- acquisition less disposal of assets not produced within the production boundary that may be used in production (ESA 2010 3.184) • Natural resources (NP.1): acquisition less disposal of e.g. land, mineral & energy reserves, and radio spectra when ownership transfers • …

  13. Transactions in non-produced assets • Non-produced assets (NP) • Contracts leases & licenses (NP.2): acquisition less disposal of e.g. marketable operating leases, permits to operate taxis • Goodwill & marketing assets (NP.3): acquisition less disposal of e.g. goodwill evidenced by sale of a corporation

  14. Financial account

  15. Other flows • Changes in prices (holding gains or losses) or • Changes in volume

  16. Other Flows III.3. Other Changes in Assets Accounts III.3.1 Other Changes in Volume Assets Account Financial account

  17. Other Flows III.3. Other Changes in Assets Accounts III.3.2. Revaluation Account Financial account

  18. Stocks • Stocks (ESA 1.85) are holdings of assets and liabilities at a point in time, form a balance sheet • Stocks are recorded within the boundaries of ESA 2010 system – not for human capital and natural resources not economically owned • All changes in stocks can be fully explained by recorded flows: transactions and/or other flows

  19. Stocks

  20. IV. Balance Sheet • Stocks Balance sheets

  21. Non-financial balance sheet • Stocks Balance sheets • AN.1 Produced non-financial assets • AN.11 Fixed assets • AN.12 Inventories • AN.13 Valuables • AN.2 non-produced non-financial assets • AN.21 Natural resources • AN.22 Contracts, leases & licences • AN.23 Purchases less sales of goodwill and marketing assets

  22. Non-financial balance sheet • Stocks Balance sheets • AN.111 Dwellings • AN.1123 Land improvements • AN.114 Weapons systems • AN.1171 Research & development Financial stocks’ categories same as financial account

More Related