By Michèle Chavoix-Mannato
STD/NAD
WPFS – 29 November -1 December 2010
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Background for the Survey on Valuation of Shares
Content and Main results
Replies to General Questions
Replies to Specific Questions
Replies to Additional Questions
Conclusion
November 2008
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In the SNA 1993, there is no reference to specific
issues or methods regarding the valuation of shares
In the SNA 2008, various methods of valuation are
proposed and defined
The 2010 survey is an update and a complement of
the questionnaire launched in 2006 and limited to:
◦ two sectors
◦ three categories of financial instruments
The 2010 survey deals with more specific questions
regarding the method used to value quoted and
unquoted shares
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General questions
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Specific questions
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Additional questions
◦ availability of data by type of shares and equities
◦ link between flow data and stock data
◦ link between assets and liabilities
◦ consistency between SNA data and other sources
◦ sources of the data
◦ method of valuation
◦ compilation of unquoted shares
◦ investment funds shares
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Replies from most OECD countries, including new
Members, and Estonia
No replies from six countries
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Iceland, Ireland, Japan, Korea, Mexico and New Zealand
Good quality of the replies
Large amount of information collected in the
2010 survey
Great disparity in data availability, methods used
and classification followed
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There is a split of ‘Shares and other Equity’
(F51) in a large majority of countries
Stocks are the starting point for computing
transactions in most countries:
◦ stock data are based on a security-by-security
approach
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the sources for stocks provide also counterpart
information
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the methods used to derived transactions from
stocks vary between countries, between instruments
and between sectors.
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Data are most often available for both the
asset and liability side
◦ but generally the liability side is the most reliable
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There is a full consistency between Financial
Accounts, BoP statistics and IIP statistics
◦ but differences exist in the valuation or
compilation methods or in the breakdown of F5
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Micro data are used to compile macro data in
most OECD countries
◦ but , this link is possible for a limited number of
sectors
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Valuation for quoted shares (F511)
◦ the most commonly used method is the market value
for assets and liabilities
◦ the method may differ for flows and stocks
 depending on the sector
 and depending on the side of the accounts
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Valuation of unquoted shares (F512)
◦ Countries which use the method recommended by
Eurostat apply similar criteria regarding
 the exclusion of specific quoted companies,
 the number of branches used to evaluate the stocks of
unquoted shares,
 the average of the ratio of capitalisation
 the eventual use of a liquidity ratio differ from country
to country
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Valuation of unquoted shares (F512)
◦ Most countries follow, or will follow, the Own Funds
at Book Value (OFBV) method, one of the methods
recommended in the SNA2008
◦ In some countries, a combination of two methods is
applied
◦ A few countries have not yet decided which method
they will use
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Breakdown of the instrument F52
◦ Money Market Funds shares data are available in a
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large majority of OECD countries
the split between other types of investment fund
shares is less frequent
the breakdown between listed and unlisted
investment fund shares is very rare
Valuation of the instrument F52
◦ all countries value investment fund shares (F52) at
market prices, except two countries
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Classification of securitisation units’ equity
◦ for many respondents, this question is irrelevant
◦ for others, there is no common method to classify
these units which can be:
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under F51 (2 countries)
under F52 (3 countries)
under F3 (4 countries)
Others (2 countries)
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Taking into account the large amount of
information but also the great diversity in
replies, it is envisage to convene a Workshop
◦ to improve our knowledge and to better
understand the methods used by countries
 monographic presentations by countries
 discussions on the best practices
◦ to work towards common classifications,
definitions and methods in order to increase
international comparability of financial accounts.
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Workshop on Valuation of Equity be organized
in the same manner as the Workshop on
Securitisation
◦ in an OECD country which will
 host the meeting
 prepare the agenda
◦ with the assistance of the OECD which will
 launch the call for papers and track them
 be responsible for administrative tasks
Delegates are invited
• to discuss some important aspects on the methods
used by the OECD countries
• to agree on the proposal of a Workshop on Valuation
of Shares to be organised in 2011
• to inform the Secretariat on their readiness to host
and prepare this Workshop.