The SNA Long-Term
Research Agenda
AEG Meeting
19-23 March 2007
SNA Long-Term Research
Agenda
• Proposals for research topics:UNSD Research
issues website
http://unstats.un.org/unsd/sna1993/research/rIssueList.asp;
ISWGNA and AEG decisions; other proposals;
• Consolidated list of topics (20 +2 proposals);
• The authors of proposals were invited to prepare
short write-ups;
• SNA list was consulted with BMP6 research
agenda
List of topics
(1) Clarification of income concept in the
SNA (ABS)
– Broader measure of income would improve
links to business accounting, economics and
other indicators of the accounts;
– Further research: what income concept should
be measured and how this should be
introduced in the accounts.
(2) Final consumption of corporations (Editor)
List of topics
(3) The relation of SNA and IASB (UNSD)
– ISWGNA should follow the development of IAS
and provide intermittent reports;
– IAS 38 Intangible assets – advertising and
promotional costs;
– IAS 41 Recognition and measurement of
biological assets and agricultural produce.
(4) Distinction between current maintenance
and capital repairs (Editor)
List of topics
(5) High inflation (BEA)
– Interest under high inflation was included as an issue
of the SNA update, but consensus could not be
reached;
– If efforts are made a satisfactory set of
recommendations can be achieved.
(6) Accrual of interest in the SNA – debtor or creditor
approach (ABS)
– EDG and ISWGNA decided to keep the debtor approach
recommended by the SNA;
– Further research: reconsider the debtor/creditor debate,
especially in view of some update issues (cons. loans,
non-performing loans, interest-linked debt securities).
List of topics
(7) Equity valuation (Statistics Canada)
– Recommendations made by the OECD Task Force on
the valuation and measurement of equity;
– Further research: valuation of equity components and its
implications on the sequence of accounts and
measurement of income
– Selected issues: valuation of corporate and other equity
subcomponents; residual corporate net worth; equity
value and income flows; equity in the sequence of
accounts; investment funds.
List of topics
(8) Provisions (OECD)
– SNA Rev.1 includes only some provisions, it also treats
them differently;
– Exclusion of provisions leads to biased measures of
main balancing items and possible inconsistency with
business accounting and IPSASB recommendations;
– Further research: to incorporate a global
recommendation on Provisions in the SNA; explore
flexible recording of stocks and flows; consolidation
List of topics
(9) Broadening the fixed assets boundary (OECD)
Innovation
‒ SNA Rev.1 will include R&D (FM) in assets boundary, but
part of innovation will not be covered;
‒ Further research: business accounting recommendations,
scope, how to measure FCF, CFC and capital services
Marketing assets
‒ Large investments; characteristics of goodwill; R&D;
‒ Further research: business accounting recommendations,
investment vs. IC, how to measure CFC and capital
services
Human capital
‒ Some forms of knowledge contribute to future production;
‒ Further research: should any acquisition of knowledge be
recorded as FCF in the system/satellite accounts, how to
measure FCF, CFC and capital services
List of topics
(10) Treatment of PPPs (IMF)
– AEG recommended that general description be
placed in an annex to the updated SNA ;
– Further research: who should be the economic
owner of the asset; classification and valuation of
the transactions taking place;
– Follow the rules developed by IASB and IPSASB
List of topics
(11) Consolidation, both for Government and
Private Enterprise groups (OECD)
(12) Wider use for fair value for loans (OECD)
(13) Recognition of social security entitlements
as liabilities (OECD)
List of topics
(14) Reverse transactions (IMF)
– BOPCOM and AEG recommend that repos are
treated as collaterized loan with a negative asset if
on-sold;
– BOPCOM and AEG recommended the four-entry
approach, but there was no sufficient time to resolve
all issues for inclusion in SNA Rev1;
– Further research of recording of repos with the
involvement of monetary and financial statisticians;
extend the research to securities lending, gold swaps
and gold loans.
List of topics
(15) Debt concessionality (IMF)
- Increased importance of statistics of debt concessionality
as part of MDGs;
- Further research: more research with a view to provide
consistent definition and guidance on measurement of
transfers arising from concessionality.
(16) Leases to exploit natural resources (OECD)
- ISWGNA decided on treatment of leases of natural
resources not subject to replenishment: (royalties)
- However, some ISWGNA members suggested it should be
put on the long-term research agenda and 3 alternative
treatments are proposed.
List of topics
(17) Reinvested earnings (Eurostat)
- It is proposed to extend the concept of reinvested
earnings to public and private corporations and
quasi corporations;
- Such treatment will improve the consistency of the
system (revaluation accounts; government deficit).
(18) Output of central banks: taxes and
subsidies on interest rates
- AEG decided to treat off-market interest rates as
taxes/subsidies. However, due to uncertainty in
surrounding the details, it would be useful to
review these issues further.
List of topics
(19) Inclusion of IOs in the SNA (UNECE)
- IOs may have significant impact on the economy
of the country or the territory where they are
physically located;
- Further research: analysis and guidance on
transactions between IO and the local economies
they are located (sub-sector of ROW); output of
IOs.
List of topics
(20) Government social services
(21) Balance sheets in volume (real) terms
(22) Treatment of defined contribution penion
schemes
Questions to the AEG
• Which topics should be on the long-term
research agenda?
• Are there any topics that need to be
added to the list?
• Should some topics be merged
together?
• How to proceed with the development of
the research agenda?