ST/ESA/STAT/SER.F/2/Rev.4/Add.1 Department of Economic and Social Affairs Statistics Division Studies in Methods Series F/2. Rev.4, Addendum 1 Updates and Amendments to the System of National Accounts, 1993 United Nations, New York 2004 The Department of Economic and Social Affairs of the United Nations Secretariat is a vital interface between global policies in the economic, social and environmental spheres and national action. The Department works in three main interlinked areas: (i) it compiles, generates and analyses a wide range of economic, social and environmental data and information on which States Members of the United Nations draw to review common problems and to take stock of policy options; (ii) it facilitates the negotiations of Member States in many intergovernmental bodies on joint courses of action to address ongoing or emerging global challenges; and (iii) it advises interested Governments on the ways and means of translating policy frameworks developed in United Nations conferences and summits into programmes at the country level and, through technical assistance, helps build national capacities. NOTE Symbols of United Nations documents are composed of capital letters combined with figures. Mention of such a symbol indicates a reference to a United Nations document. ST/ESA/STAT/SER.F/2/Rev.4/Add.1 International Monetary Fund ISBN 1-58906-252-3 Organisation for Economic Co-operation and Development OECD Code 30 2003 09 1 P1 United Nations publication Sales No. E.04.XVII.8 ISBN 92-1-161472-4 Copyright © 2004 United Nations, Commission of the European Communities, International Monetary Fund, Organisation for Economic Cooperation and Development and World Bank All rights reserved Printed in United Nations, New York ii FOREWORD Updates and Amendments to the System of National Accounts, 1993 has been developed and published jointly by the members of the Intersecretariat Working Group on National Accounts (ISWGNA): the United Nations Statistics Division, the Statistical Office of the European Communities, the International Monetary Fund, the Organisation for Economic Cooperation and Development, and the World Bank. The efforts of the five members of the ISWGNA were supported by a consultative mechanism involving national accounts experts in member countries. The methodological material presented in Updates and Amendments complements the recommendations of the System of National Accounts, 1993 (1993 SNA), and reflects the changes and improvements that have been introduced to the System of National Accounts since its most recent revision in 1993. Along with the previously published 1993 SNA, Updates and Amendments is intended for use by statisticians at the national and international levels and is expected to support the implementation process of the System of National Accounts. Willem De Vries Officer-in-Charge United Nations Statistics Division Michel Vanden Abeele Director General Statistical Office of the European Communities Carol S. Carson Director, Statistics Department International Monetary Fund Enrico Giovannini Chief Statistician and Director, Statistics Directorate Organisation for Economic Cooperation and Development Shaida Badiee Director, Development Data Group World Bank iii CONTENTS Page Foreword ...................................................................................................................... iii Preface ......................................................................................................................... vii Part one Updated text of the 1993 SNA for incorporating new international standards on financial derivatives ............................................................................................... 1-46 Introduction ..................................................................................................... 3 A. New international standards for financial derivatives .............................. 4 B. Updated text of the 1993 SNA for incorporating new international standards for the statistical measurement of financial derivatives ............ 7 1. Updated paragraphs of chapter VII ..................................................... 7 2. Updated paragraphs of chapter X ........................................................ 8 3. Updated paragraphs of chapter XI ....................................................... 9 4. Updated paragraphs of chapter XIII ..................................................... 20 Updated part of the annex to chapter XIII ............................... 22 5. Updated paragraphs of chapter XIV .................................................... 24 6. Updated section of table B of annex V ................................................ 26 7. Updated section of table D of annex V ................................................ 28 Updated tables of chapter XI and annex II ....................................................... 30 Table 11.1 Account III.2: Financial account ................................. 31 Table 11.2 Classification of transactions in financial assets and liabilities ................................................................. 32 Table A.II.4 Account V.III.2: Financial account (of Account V.III: External accumulation accounts) ..... 33 Table A.II.6 Account V.IV: External assets and liabilities ................ 35 Table A.II.7 Balance of payments: standard components and additional details ............................................................ 37 Table A.II.9 International investment position: standard components and additional details ..................................................... 43 iv Page Part two Updated classifications of the 1993 SNA ................................................................... 47-83 A. Functional classifications ........................................................................... 49 1. Updated paragraphs of chapter IX ........................................................ 49 2. Updated text of chapter XVIII .............................................................. 49 3. Updated tables H, I, J and K of annex V .............................................. 55 B. Other updated classifications of the 1993 SNA .......................................... 78 1. Updated table F of annex V (ISIC, Rev. 3.1) ....................................... 78 2. Updated table G of annex V (CPC, Version 1.1) .................................. 81 Part three Glossary of terms and definitions in the 1993 SNA ....................................................... 85 v vi PREFACE Updates and Amendments to the System of National Accounts, 1993 is being issued as an addendum to the System of National Accounts, 1993 (1993 SNA) to provide an updated and amended text. It includes changes introduced to the 1993 SNA and its annexes and tables since its publication in 1993. Updates and Amendments consists of three parts. Part one contains the text of the 1993 SNA that has been updated as a result of the adoption of new international standards for the statistical measurement of financial derivatives. Those changes affect a number of chapters and tables B and D of annex V. Part two includes four functional classifications proposed by the System of National Accounts that were fully elaborated and updated after the 1993 SNA had been published. Those changes are reflected in updated paragraphs of chapter IX, the rewritten text of chapter XVIII and four updated tables of annex V. Part two also includes, in updated table F of annex V, the most recent revision, Revision 3.1, of the International Standard Industrial Classification of All Economic Activities (ISIC, Rev.3.1), and in updated table G of annex V includes the most recent version, Version 1.1, of the Central Product Classification (CPC, Version 1.1) which supersedes the Provisional CPC presented in the 1993 SNA. The 2002 updating of ISIC and CPC was undertaken by the Technical Subgroup of the Expert Group on International Economic and Social Classifications. Details on these classifications and the correspondences with their earlier versions are available online at http:// unstats.un.org/unsd/class/default.htm. Currently, ISIC and CPC are undergoing a new cycle of revisions to be completed by 2007. As a result of that process, the top-level two-digit structure of both classifications may change again. Part three provides a new tool to complement the previously published 1993 SNA: a glossary of its terms and definitions. One of the purposes of the glossary is to provide an easy reference to the items included in the national accounts questionnaires vii through which data are requested from countries by the United Nations Statistics Division and other international statistical agencies. Work on the improvements to the 1993 SNA was carried out by members of the Intersecretariat Working Group on National Accounts. The International Monetary Fund had a leading role in the elaboration of new standards for the treatment of financial derivatives. The Organisation for Economic Cooperation and Development was responsible for developing the functional classifications and the glossary. The improvements were finalized after various rounds of thorough discussion and in consultation with national statistical offices. Updates and Amendments contains the changes and amendments to the 1993 SNA that were produced through the updating mechanism approved by the Statistical Commission at its thirtieth session, in 1999, when the Commission also approved the proposed standards regarding the treatment of financial derivatives, and adopted the four fully developed functional classifications leading to their publication in 2000 in the Classifications of Expenditure According to Purpose. The glossary was developed in response to user needs for a quick reference tool to definitions and terms used in the 1993 SNA. At its thirty-fourth session, in 2003, the Statistical Commission adopted recommendations for updating the 1993 SNA with the target date of 2008, and endorsed an initial list of issues to be reviewed in the process that is expected to result in further changes and amendments and the publication of the 1993 SNA Rev.1. The supplementary material to the 1993 SNA provided herein is intended to assist national accountants and other users of the 1993 SNA in the implementation and application of these fundamental methodological recommendations. The information included is also retrievable on the United Nations Statistics Division web site at http://unstats.un.org/unsd/nationalaccount/default.htm. viii Part one Updated text of the 1993 SNA for incorporating new international standards on financial derivatives 2