From 1993 SNA to 1993 SNA Rev.1 –
A progress report on the update of the
1993 SNA
UN Statistics Division
Economic Statistics
Important dates - 1993
In 1993 the Statistical Commission during its 27th
session unanimously endorsed the System of
National Accounts 1993 (1993 SNA). In the same
year the United Nations Economic and Social
Council in its resolution 1993/5 recommended that
member States consider using the 1993 SNA as the
international standard for compilation of their
national accounts statistics and in the international
reporting of comparable national accounting data.
Important dates – 1999
In 1999 the Statistical Commission during its 30th
session endorsed the proposal of an mechanism for
continuous updating of the 1993 SNA in order to
maintain the systems relevance in an fast evolving world
economy and to resolve ambiguities that may appear
during its implementation.
The updating mechanism includes four types: editorial
amendment, clarification beyond dispute, interpretation
and change. For a detailed explanation and the procedure
of their implementation refer to the following website:
http://unstats.un.org/unsd/sna1993/updatepage.asp?id=1
Important dates - 2002
In 2002 the Statistical Commission during its
33th session endorsed the proposal of
ISWGNA to create an advisory expert group
(AEG). It recommended that the groups
primary task should be to advise ISWGNA on
methodological issues and to assist ISWGNA
in achieving resolutions on outstanding issues
as well as issues arising in the future.
10 year milestone
After 10 years of its adoption the 1993 SNA is
still:
Robust framework
Broadly appreciated
Resilient in the changing environment
Not fully implemented in all countries
…but
Changes in the economic environment require
constant updates to the 1993 SNA in order to
maintain relevance
Existing incremental updating process has several
shortcomings
To slow
To partial
Does not ensure consistency and integrity of the
system as a whole
Important dates - 2003
Therefore in 2003 the Statistical Commission during its 34th
session endorsed a consolidated review of the 1993 SNA
emphasizing that
No fundamental or comprehensive changes to the system
take place as they would impede the process of its
implementation
Internal consistency and consistency with related
handbooks, such as Balance of Payments Manual,
Government Finance Statistics and Monetary and
Financial Statistics Manual is ensured
Update should focus on a number of specific issues, but
list of issues should be open-ended to include additional
items, if needed
Important dates - 2003 (cont’d)
Managing and coordinating role of ISWGNA
should continue with assistance from the AEG
Transparency of the review process must be
assured to achieve broad support in the
international statistical community
Global participation of national statistical
offices and central banks is achieved
Targeted publication date for the 1993 SNA,
Rev.1 is 2008
Work programme for the updating
of the 1993 SNA
Prepared by ISWGNA in November 2003 in response to the request of
the Statistical Commission during its 34th session
Approved in 2004 by the Statistical Commission during its 35th session
Includes the list of issues under review, governance structure,
timetable, resource implications, decision-making process, and the
delineation of the role of the AEG
Announcement of Carol Carson as Project Manager and Anne Harrison
as Editor in 2005 during the 35th session of the Statistical Commission
The complete document is available on the following website:
http://unstats.un.org/unsd/nationalaccount/Workprogram1993SNAupd
ate%2021Nov2003final.pdf
Governance structure (1)
Statistical Commission
Endorses the consolidated set of
recommendations in 2007
Approves the final output – 1993 SNA,
Rev.1 in 2008
Governance structure (2)
Intersecretariat Working Group on National Accounts
(ISWGNA)
Composed of five member organizations: Eurostat,
IMF, OECD, UNSD, World Bank
Chairmanship rotates among the five organizations
and UNSD functions as Secretariat
Functions at two levels: ISWGNA: Management
Group (ISWGNA:MA) and ISWGNA: National
Accountants (ISWGNA:NA)
Governance structure (3)
ISWGNA: Management Group (ISWGNA:MA)
Composed of high-level statistical executives of the
five international organizations
Agrees on the projects governance arrangements
Ensures appropriate input and outputs, in agreement
with Project Manager
Assesses the overall work plan, time table, and budget
of the project and raises funds
Liaises with stakeholders, manages their expectations,
views and concerns and gains their support
Reports to the Statistical Commission
Governance structure (4)
Project Manager (Carol Carson)
Agrees on desired outputs and outcomes with
ISWGNA:MG
Reports regularly on progress and timeliness of update
process and budgetary matters
Develops an overall work plan in reference to
organizational matters
Liaises with stakeholders, manages their expectations,
views and concerns and gains their support
Provides oversight to the ISWGNA:NA and guidance
to the support units
With the Editor, ensures overall consistency of the SNA,
Rev.1 and harmony with other macroeconomic
statistical standards
Reports to ISWGNA: Management Group
Governance structure (5)
Editor (Anne Harrison)
Progressively drafts recommendations for change and
clarification and prepares drafts of text of the 1993
SNA, Rev.1
Participates in technical discussion with ISWGNA:
NA, AEG and other expert groups
With the Project Manager, ensures overall consistency
of the SNA, Rev.1 and harmony with other
macroeconomic statistical standards
Catalogs changes that may be needed to the various
existing handbooks, compilation guides, and satellite
accounts manuals that arise from the update
Reports to the Project Manager
Governance structure (6)
ISWGNA: National Accountants (ISWGNA:NA)
Composed of senior national accountants from the five
international organisations
Sponsors, facilitates and participates in the technical
consultations
In consultation with the AEG, considers the proposals
for change and decides on the scope of the updating
Circulates AEG recommendations to countries and/or
regional and other expert meetings for comments
Consolidates obtained country comments with AEG
recommendations to formulate final recommendations
In liaison with Editor, AEG and the existing expert
groups assesses and evaluates the internal consistency
of the 1993 SNA, Rev.1 and the harmony with other
macroeconomic statistical standards
Governance structure (7)
Advisory Expert Group (AEG)
Composed of 20 experts representing all regions of the world,
bringing in expertise from various areas in national accounting
Approves the list of issues for update together with
ISWGNA:NA
Discusses all issues considered for update through
consultations, electronic discussion or in meetings in
consultation with ISWGNA:NA
Decides proposed changes or clarifications jointly with
ISWGNA:NA, striving to reach consensus to the highest extend
possible
Presents a single solution to an issue to facilitate the approval
and rewriting process
Assesses and evaluates the internal consistency of the 1993
SNA, Rev.1 and the harmony with other macroeconomic
statistical standards in liaison with Editor, ISWGNA:NA and
the existing expert groups
Governance structure (8)
Various expert groups
Include such groups as Canberra II, EDGs, regional
expert groups, BOP Statistics Committee, Task Force
on the Harmonization of the Public Sector Accounting
Conduct first deliberations on the issues and submit the
groups proposals for treatment of issues to the AEG for
discussion and decision
Governance structure – Diagram
Decision-making process
Various expert groups like Canberra II,
BOPCOM, TFHPSA, EDGs, regional meetings
conduct first deliberations on issues and prepare
proposal for treatment of issue to AEG
AEG, jointly with ISWGNA:NA discusses
proposal and takes decision by striving for
consensus to the highest extend possible
If AEG disagrees with proposal it is referred back to
the responsible expert group for new or revised
proposal based on discussion of the AEG
If AEG agrees with proposal a recommendation for
treatment of issue is formulated
Decision-making process (cont’d)
ISWGNA:NA circulates recommendation to all countries
(NSO and CB) and regional commissions for discussion
and comments with a 60-day response period
Formulates final recommendation incorporating results
of country comments and refers it to the editor
Editor consolidates all final recommendations, ensuring
conceptual consistency and produces final text of SNA
1993, Rev.1 for submission to the Statistical Commission
in 2008
Decision-making process - Diagram
Criteria for identifying issues
for updating
Issues emerging in the new economic environment
Old issues, previously discussed and rejected, if they fulfill
one of the following criteria:
Warrant the need to a further look in the new economic
environment due to their economic significance
Advancement in methodological research justifying
different treatment
Recognition of user needs
Feasibility of planned changes
List of issues
For the complete list of issues, including descriptions, available
recommendations, comments refer to the following website:
http://unstats.un.org/unsd/sna1993/issues.asp
Issues:
1. Repurchase agreements
2. Employer retirement pension schemes
3. Employee stock options
4.a Non-performing loans
4.b Valuation of loans and deposits; Write-off and interest accrual on impaired loans
5. Non-life insurance services
6. Financial services
6.a Financial services
6.b Allocation of the output of central banks
7. Taxes on holding gains
8. Interest under high inflation
9. Research and development
10. Patented entities
List of issues (cont’d)
11. Originals and copies
12. Databases
13. Other intangible fixed assets
14. Cost of ownership transfers
15. Cost of capital services: production account
16. Government owned assets
17. Mineral exploration
18. Right to use/exploit non-produced resources between residents and non-residents
19. Military expenditures
20. Land
21. Contracts and leases of assets
22. Goodwill and other non-produced assets
23. Obsolescence and depreciation
24. Build-Own-Operate-Transfer (BOOT) schemes
25.a Ancillary units
25.b Institutional units
25.b.i Holding companies, special purpose entities, trusts
25.b.ii Treatment of multi-territory enterprises
25.b.iii Recognition of unincorporated branches
25.c Privatization, restructuring agencies, securitization and special purpose vehicles (SPVs)
List of issues (cont’d)
26. Cultivated assets
27. Classification and terminology on assets
28. Amortization of tangible and intangible non-produced assets
29. Assets boundary for non-produced intangible assets
30. Definition of economic assets
31. Valuation of water
32. Informal sector
33. Illegal and underground activities
34. Super dividend, capital injections and reinvested earnings (government transactions with
public corporations (earnings and funding))
35. Tax revenue, uncollectible taxes, and tax credits (recording of taxes)
36. Private/public/government sectors delineation (sectorization boundaries)
37. Activation of guarantees (contingent assets) and constructive obligations
38. Transaction concept
38.a Change of economic ownership (as term)
38.b Assets, liabilities and personal effects of individuals changing residence ("migrant
transfers")
38.c Application of accrual principles to the debt in arrears
List of issues (cont’d)
39. Residence
39.a Meaning of national economy
39.b Predominant center of economic interest (as term)
39.c Clarification of non-permanent workers and entities with little or no physical presence
40. Goods sent abroad for processing
41. Merchanting
42. Retained earnings of mutual funds, insurance companies, and pension funds
43. Interest and related issues
43.a Treatment of index linked debt instruments
43.b Interest at concessional rates
43.c Fees payable on securities lending and gold loans
44. Financial assets classification
List of clarifications
For the complete list of clarifications, including descriptions and available
recommendations refer to the following website:
http://unstats.un.org/unsd/sna1993/issues.asp#clar
Clarifications:
C1. Other subsidies on production to non-market producers
C2. The treatment of seignorage profits from the issue of coins in the 1993 SNA and in the
Manual of Government Finance Statistics (GFS) 1986
C3. Review of SNA terminology for user-friendliness
C4. Volumes and prices in relation to taxes on products
C5. Clarification of components of compensation of employees
C6. Review of SNA codes
C7. Should the first appearance of value of financial derivatives be entered as other changes
in volume (OCVA)?
C8. Classification of financial assets: F5 Shares and other equity/F52 Mutual Funds
C9. Valuation of equity
C10. Measurement of non market output
List of clarifications (cont’d)
C11. Concept of jobs and concept of persons
C12. Top level industry classifications
C13. Clarification of Chapter XXI on satellite accounts
C14. The definition of interest
C15. The Public Sector
C16. Measurement of labor inputs
C17. Measurement of output produced for own final use
C18. Inventory withdraws defined including or excluding normal losses
C19. Government final consumption expenditure
C20. Legal versus economic terminology
C21. Definition of an establishment
C22. Valuation of work-in-progress
C23. Capital assets not yet ready for use
C24. Changes in inventories
C25. Links between business accounting and national accounting
C26. Currency unions
C27. SDRs
C28. Direct investment
AEG meetings
Four meetings between 2004 – 2006 to deliberate on the
proposals of the various expert groups
Some issues will be discussed through e-discussions or
e-consultations and if consensus is reached
recommendations will be adopted in meetings without
further discussion
Meeting in early 2006 is last chance to deliberate on
issues – all issues need to have AEG recommendation
at that time
Early 2007 meeting to review mutual consistency of all
final recommendations on updated issues and overall
integrity of the system
2007 final meeting to adopt all proposed changes
For detailed information on AEG meetings refer to the following
website: http://unstats.un.org/unsd/nationalaccount/aeg.htm
AEG meeting in February 2004
Agreement on the list of 44 issues considered for update, classified
into the following categories:
Issues identified by ISWGNA:NA which are part of deliberations
of existing expert groups like Canberra II, EDGs, regional expert
groups
Issues identified by the Balance of Payments Committee
(BOPCOM)
Issues identified by the Task Force on Harmonization of Public
Sector Accounts (TFHPSA)
Identification of responsible agency or expert group for each issue
Agreement on recommendations for the following issues:
3.
5.
6.a
6.b
7.
14.
19.
26.
Employer stock options
Non-life insurance services
Financial services
Output of central banks
Taxes on holding gains
Cost of ownership transfers
Military expenditures
Cultivated assets
AEG meeting in Feb. 2004 –
Overview of country comments
42 countries responded to AEG recommendations, equally from
National Statistical Offices and Central Banks
Majority of countries supports AEG recommendations
Results of the country comments were summarized as follows:
AEG meeting in December 2004
Agreement on recommendations for the following issues:
4.a
Non-performing loans
11.
Originals and copies
12.
Databases
14.
Cost of ownership transfers – Part II
16.
Government owned assets – cost of capital services
17.
Mineral exploration
20.
Treatment of land improvements
25.b.i Holding companies, special purpose entities (SPEs), and trusts
25.b.ii Treatment of multi-territory enterprises
25.b.iii Recognition of branches
38.a Change of economic ownership
38.c Application of accrual principles to debt in arrears
39.b Residence of households
AEG meeting in Dec. 2004 –
Overview of country comments
56 countries responded to AEG recommendations, equally
from National Statistical Offices and Central Banks
Majority of countries supports AEG recommendations,
Only for issue 16 - Government owned assets a large
number of reservations or disagreements were reported
AEG recommendation to include a return to capital,
viewed as opportunity cost in the measurement of nonmarket output was opposed either in principle or on the
basis of feasibility
AEG requested a questionnaire for global consultation
on this issue to be sent to national accounts departments
of all countries
AEG meeting in Dec. 2004 –
Overview of country comments (cont’d)
Results of the country comments were summarized as
follows:
AEG meeting in July 2005
Agreement on recommendations for the following issues:
1.
4.a
9.
11.
12.
15.
16.
20.
22.
23.
25.b.ii
31.
35.
Reverse transactions
Non-performing loans
Research and development
Originals and copies
Databases
Cost of capital services
Government owned assets – cost of capital services
Treatment of land improvements
Purchased goodwill and marketing assets
Obsolescence and depreciation
Treatment of multi-territory enterprises
Water as an asset
Tax revenues, uncollectible taxes and tax credits
AEG meeting in July 2005 (cont’d)
Agreement on recommendations for the following issues (cont’d):
36. Public/private/government sector delineation
37. Granting of guarantees
38.b Migrants’ transfers
39.c Residence of households: Non-permanent workers
39.c Residence of households: Ships’ crew and patients
40. Goods sent abroad for processing
42. Retained earnings on mutual funds and other collective
investment schemes
43.a Interest on index-linked debt instruments
43.a Debt instruments linked to foreign currency
43.c Fees on security lending and reversible gold transactions
44. Distinction between loans and deposits
44. Traded loans (Borderline between Securities and Other Financial
Instruments)
AEG meeting in July 2005 –
Overview of country comments
Country comments are currently still obtained
(deadline 30 November 2005)
Comments are posted against corresponding issues
as soon as they are received, for reference check
the following website:
http://unstats.un.org/unsd/sna1993/issues.asp
AEG meeting in
January/February 2006
Last meeting to discuss conceptual issues and
clarifications and agree on recommendations
AEG recommendations for each of the 44 issues
must be formulated
For provisional list of issues to be discussed refer
to the following website:
http://unstats.un.org/unsd/nationalaccount/aeg.htm
Basic structure of SNA 1993, Rev.1
No change in basic structure
Major new issues will go into new, separate
chapters or annex
New or revised text will be incorporated into
existing chapters for completion
Opportunities to shorten existing text will
be exploited
Record of changes of text will be created
Role of editor
New text
Drafts most of new text
Adjusts text contributed by others to achieve
harmonization in substance and style with rest
of draft and provides authors of text with record
of changes made
Existing text of the SNA
Makes editorial touch-ups without creating
changes to the SNA and flags them for easy
identification
Role of reviewers
ISWGNA:NA
Provides “eagle eye” review of first draft
Carries out substantive review of all chapters
AEG
Reviews chapters or parts of the revised SNA,
probably organized in groups
Mandate of review is limited to seek out
inconsistencies based on agreed
recommendations and clarifications
Organization of draft review
Chapters will go through the following stages:
0
Exiting text or contribution
1 Draft from editor for “eagle eye” review by
ISWGNA:NA
2
Draft for review by AEG, publication on the website and
distribution to NSO and CB for comments
3 Redraft from editor for “eagle eye” and substantive
review by ISWGNA:NA
4
Final draft ready for submission to Statistical
Commission
Organization of draft review (cont’d)
Chapters divided into two tranches and
proceeded through consecutively
First tranche: Chapters that are the “heart” of the
SNA
Second tranche: Remaining chapters, tables,
glossary
Approach allows more review time for tranche 1
(“heart”)
Editor will work on blocks of related chapters within
tranche and upon completion of blocks releases
them for review
Output dates
Initial set of consolidated recommendations –
Early 2006
Views on consistency – April-Sept. 2006
Revised set of consolidated recommendations for
Statistical Commission – Late 2006
Draft of tranche 1 for AEG meeting – Early 2007
Draft of tranche 2 for AEG and outlook towards
implementation of revised SNA – Late 2007
Draft of 1993 SNA, Rev.1 for Statistical
Commission – Late 2007
Monitoring progress
UNSD will maintain progress database on the
internet to assure transparency of process
Database input provided by editor
Database will exist in three levels:
Summary chapter x issue matrix with color coding
indicating progress – publicly available
More detailed matrix for ISWGNA:NA – restricted
access
Project management to track tasks and assignments
during review – restricted access
Useful references
Projects main website containing links to all
available information:
http://unstats.un.org/unsd/nationalaccount/snarev1.asp
List of all issues/clarifications, including
descriptions, papers, recommendations, country
and expert comments:
http://unstats.un.org/unsd/sna1993/issues.asp
List of all AEG meetings, including agenda,
papers, presentations, minutes:
http://unstats.un.org/unsd/nationalaccount/aeg.htm