From From 1993 SNA1993 SNA to to 1993 SNA Rev.11993 SNA Rev.1 – – A progress report on the update of the A progress report on the update of the

1993 SNA1993 SNA

UN Statistics DivisionUN Statistics DivisionEconomic StatisticsEconomic Statistics

Important dates - 1993Important dates - 1993

In 1993 the Statistical Commission during its 27In 1993 the Statistical Commission during its 27 thth session unanimously endorsed the session unanimously endorsed the System of System of National Accounts 1993 National Accounts 1993 (1993 SNA)(1993 SNA). . In the same In the same year the United Nations Economic and Social year the United Nations Economic and Social Council in its resolution 1993/5 recommended that Council in its resolution 1993/5 recommended that member States consider using the 1993 SNA as the member States consider using the 1993 SNA as the international standard for compilation of their international standard for compilation of their national accounts statistics and in the international national accounts statistics and in the international reporting of comparable national accounting data.reporting of comparable national accounting data.

Important dates – 1999Important dates – 1999

In 1999 the Statistical Commission during its 30In 1999 the Statistical Commission during its 30thth session session endorsed the proposal of an mechanism for continuous endorsed the proposal of an mechanism for continuous updating of the 1993 SNA in order to maintain the updating of the 1993 SNA in order to maintain the systems relevance in an fast evolving world economy systems relevance in an fast evolving world economy and to resolve ambiguities that may appear during its and to resolve ambiguities that may appear during its implementation. implementation. The updating mechanism includes four types: editorial The updating mechanism includes four types: editorial amendment, clarification beyond dispute, interpretation amendment, clarification beyond dispute, interpretation and change. For a detailed explanation and the procedure and change. For a detailed explanation and the procedure of their implementation refer to the following website: of their implementation refer to the following website: http://unstats.un.org/unsd/sna1993/updatepage.asp?id=1http://unstats.un.org/unsd/sna1993/updatepage.asp?id=1

Important dates - 2002Important dates - 2002

In 2002 the Statistical Commission during its In 2002 the Statistical Commission during its 3333thth session endorsed the proposal of session endorsed the proposal of ISWGNA to create an advisory expert group ISWGNA to create an advisory expert group (AEG). It recommended that the groups (AEG). It recommended that the groups primary task should be to advise ISWGNA on primary task should be to advise ISWGNA on methodological issues and to assist ISWGNA methodological issues and to assist ISWGNA in achieving resolutions on outstanding issues in achieving resolutions on outstanding issues as well as issues arising in the future.as well as issues arising in the future.

10 year milestone10 year milestone

After 10 years of its adoption the 1993 SNA After 10 years of its adoption the 1993 SNA is still: is still:

Robust frameworkRobust framework

Broadly appreciatedBroadly appreciated

Resilient in the changing environmentResilient in the changing environment

Not fully implemented in all countriesNot fully implemented in all countries

……butbut

Changes in the economic environment require Changes in the economic environment require constant updates to the 1993 SNA in order to constant updates to the 1993 SNA in order to maintain relevancemaintain relevanceExisting incremental updating process has several Existing incremental updating process has several shortcomingsshortcomings

To slowTo slowTo partialTo partialDoes not ensure consistency and integrity of the Does not ensure consistency and integrity of the system as a wholesystem as a whole

Important dates - 2003Important dates - 2003Therefore in 2003 the Statistical Commission during its 34Therefore in 2003 the Statistical Commission during its 34 thth

session endorsed a consolidated review of the 1993 SNA session endorsed a consolidated review of the 1993 SNA emphasizing thatemphasizing thatNo fundamental or comprehensive changes to the system No fundamental or comprehensive changes to the system take place as they would impede the process of its take place as they would impede the process of its implementationimplementationInternal consistency and consistency with related Internal consistency and consistency with related handbooks, such as handbooks, such as Balance of Payments Manual, Balance of Payments Manual, Government Finance Statistics Government Finance Statistics andand Monetary and Monetary and Financial Statistics ManualFinancial Statistics Manual is ensured is ensuredUpdate should focus on a number of specific issues, but Update should focus on a number of specific issues, but list of issues should be open-ended to include additional list of issues should be open-ended to include additional items, if neededitems, if needed

Important dates - 2003Important dates - 2003 (cont’d)(cont’d)

Managing and coordinating role of ISWGNA Managing and coordinating role of ISWGNA should continue with assistance from the AEGshould continue with assistance from the AEGTransparency of the review process must be Transparency of the review process must be assured to achieve broad support in the assured to achieve broad support in the international statistical communityinternational statistical communityGlobal participation of national statistical Global participation of national statistical offices and central banks is achievedoffices and central banks is achievedTargeted publication date for the Targeted publication date for the 1993 SNA, 1993 SNA, Rev.1Rev.1 is 2008 is 2008

Work programme for the Work programme for the updating of the 1993 SNAupdating of the 1993 SNA

Prepared by ISWGNA in November 2003 in response to the request of Prepared by ISWGNA in November 2003 in response to the request of the Statistical Commission during its 34the Statistical Commission during its 34thth session session

Approved in 2004 by the Statistical Commission during its 35Approved in 2004 by the Statistical Commission during its 35 thth session session

Includes the list of issues under review, governance structure, Includes the list of issues under review, governance structure, timetable, resource implications, decision-making process, and the timetable, resource implications, decision-making process, and the delineation of the role of the AEGdelineation of the role of the AEG

Announcement of Carol Carson as Project Manager and Anne Announcement of Carol Carson as Project Manager and Anne Harrison as Editor in 2005 during the 35Harrison as Editor in 2005 during the 35 thth session of the Statistical session of the Statistical CommissionCommission

The complete document is available on the following website: The complete document is available on the following website: http://unstats.un.org/unsd/nationalaccount/Workprogram1993SNAupdhttp://unstats.un.org/unsd/nationalaccount/Workprogram1993SNAupdate%2021Nov2003final.pdfate%2021Nov2003final.pdf

Governance structure Governance structure (1)(1)

Statistical CommissionStatistical Commission

Endorses the consolidated set of Endorses the consolidated set of recommendations in 2007recommendations in 2007

Approves the final output – Approves the final output – 1993 SNA, 1993 SNA, Rev.1 Rev.1 in 2008in 2008

Governance structure Governance structure (2)(2)

Intersecretariat Working Group on National Accounts Intersecretariat Working Group on National Accounts (ISWGNA)(ISWGNA)

Composed of five member organizations: Eurostat, Composed of five member organizations: Eurostat, IMF, OECD, UNSD, World BankIMF, OECD, UNSD, World BankChairmanship rotates among the five organizations Chairmanship rotates among the five organizations and UNSD functions as Secretariat and UNSD functions as Secretariat Functions at two levels: ISWGNA: Management Functions at two levels: ISWGNA: Management Group (ISWGNA:MA) and ISWGNA: National Group (ISWGNA:MA) and ISWGNA: National Accountants (ISWGNA:NA)Accountants (ISWGNA:NA)

Governance structure Governance structure (3)(3)

ISWGNA: Management Group (ISWGNA:MA)ISWGNA: Management Group (ISWGNA:MA)Composed of high-level statistical executives of the Composed of high-level statistical executives of the five international organizationsfive international organizations Agrees on the projects governance arrangementsAgrees on the projects governance arrangementsEnsures appropriate input and outputs, in agreement Ensures appropriate input and outputs, in agreement with Project Manager with Project Manager Assesses the overall work plan, time table, and budget Assesses the overall work plan, time table, and budget of the project and raises fundsof the project and raises fundsLiaises with stakeholders, manages their expectations, Liaises with stakeholders, manages their expectations, views and concerns and gains their supportviews and concerns and gains their supportReports to the Statistical CommissionReports to the Statistical Commission

Governance structure Governance structure (4)(4)

Project Manager (Carol Carson)Project Manager (Carol Carson)Agrees on desired outputs and outcomes with Agrees on desired outputs and outcomes with ISWGNA:MG ISWGNA:MG Reports regularly on progress and timeliness of update Reports regularly on progress and timeliness of update process and budgetary mattersprocess and budgetary mattersDevelops an overall work plan in reference to Develops an overall work plan in reference to organizational mattersorganizational mattersLiaises with stakeholders, manages their expectations, Liaises with stakeholders, manages their expectations, views and concerns and gains their supportviews and concerns and gains their supportProvides oversight to the ISWGNA:NA and guidance Provides oversight to the ISWGNA:NA and guidance to the support unitsto the support unitsWith the Editor, ensures overall consistency of the With the Editor, ensures overall consistency of the SNA, Rev.1SNA, Rev.1 and harmony with other macroeconomic and harmony with other macroeconomic statistical standards statistical standards Reports to ISWGNA: Management GroupReports to ISWGNA: Management Group

Governance structure Governance structure (5)(5)

Editor (Anne Harrison)Editor (Anne Harrison)Progressively drafts recommendations for change and Progressively drafts recommendations for change and clarification and prepares drafts of text of the clarification and prepares drafts of text of the 1993 1993 SNA, Rev.1SNA, Rev.1Participates in technical discussion with ISWGNA: Participates in technical discussion with ISWGNA: NA, AEG and other expert groupsNA, AEG and other expert groupsWith the Project Manager, ensures overall consistency With the Project Manager, ensures overall consistency of the of the SNA, Rev.1SNA, Rev.1 and harmony with other and harmony with other macroeconomic statistical standardsmacroeconomic statistical standardsCatalogs changes that may be needed to the various Catalogs changes that may be needed to the various existing handbooks, compilation guides, and satellite existing handbooks, compilation guides, and satellite accounts manuals that arise from the updateaccounts manuals that arise from the updateReports to the Project ManagerReports to the Project Manager

Governance structure Governance structure (6)(6)

ISWGNA: National Accountants (ISWGNA:NA)ISWGNA: National Accountants (ISWGNA:NA)Composed of senior national accountants from the five Composed of senior national accountants from the five international organisations international organisations Sponsors, facilitates and participates in the technical Sponsors, facilitates and participates in the technical consultations consultations In consultation with the AEG, considers the proposals In consultation with the AEG, considers the proposals for change and decides on the scope of the updatingfor change and decides on the scope of the updatingCirculates AEG recommendations to countries and/or Circulates AEG recommendations to countries and/or regional and other expert meetings for commentsregional and other expert meetings for commentsConsolidates obtained country comments with AEG Consolidates obtained country comments with AEG recommendations to formulate final recommendationsrecommendations to formulate final recommendationsIn liaison with Editor, AEG and the existing expert In liaison with Editor, AEG and the existing expert groups assesses and evaluates the internal consistency groups assesses and evaluates the internal consistency of the of the 1993 SNA, Rev.11993 SNA, Rev.1 and the harmony with other and the harmony with other macroeconomic statistical standardsmacroeconomic statistical standards

Governance structure Governance structure (7)(7)

Advisory Expert Group (AEG)Advisory Expert Group (AEG)Composed of 20 experts representing all regions of the world, Composed of 20 experts representing all regions of the world, bringing in expertise from various areas in national accountingbringing in expertise from various areas in national accountingApproves the list of issues for update together with Approves the list of issues for update together with ISWGNA:NAISWGNA:NADiscusses all issues considered for update through Discusses all issues considered for update through consultations, electronic discussion or in meetings in consultations, electronic discussion or in meetings in consultation with ISWGNA:NA consultation with ISWGNA:NA Decides proposed changes or clarifications jointly with Decides proposed changes or clarifications jointly with ISWGNA:NA, striving to reach consensus to the highest extend ISWGNA:NA, striving to reach consensus to the highest extend possiblepossiblePresents a single solution to an issue to facilitate the approval Presents a single solution to an issue to facilitate the approval and rewriting processand rewriting processAssesses and evaluates the internal consistency of the Assesses and evaluates the internal consistency of the 1993 1993 SNA, Rev.1SNA, Rev.1 and the harmony with other macroeconomic and the harmony with other macroeconomic statistical standards in liaison with Editor, ISWGNA:NA and statistical standards in liaison with Editor, ISWGNA:NA and the existing expert groups the existing expert groups

Governance structure Governance structure (8)(8)

Various expert groupsInclude such groups as Canberra II, EDGs, regional expert groups, BOP Statistics Committee, Task Force on the Harmonization of the Public Sector AccountingConduct first deliberations on the issues and submit the groups proposals for treatment of issues to the AEG for discussion and decision

Governance structure – DiagramGovernance structure – Diagram

Decision-making processDecision-making process

Various expert groups like Canberra II, Various expert groups like Canberra II, BOPCOM, TFHPSA, EDGs, regional meetings BOPCOM, TFHPSA, EDGs, regional meetings conduct first deliberations on issues and prepare conduct first deliberations on issues and prepare proposal for treatment of issue to AEGproposal for treatment of issue to AEGAEG, jointly with ISWGNA:NA discusses AEG, jointly with ISWGNA:NA discusses proposal and takes decision by striving for proposal and takes decision by striving for consensus to the highest extend possibleconsensus to the highest extend possible

If AEG disagrees with proposal it is referred back to If AEG disagrees with proposal it is referred back to the responsible expert group for new or revised the responsible expert group for new or revised proposal based on discussion of the AEGproposal based on discussion of the AEGIf AEG agrees with proposal a recommendation for If AEG agrees with proposal a recommendation for treatment of issue is formulatedtreatment of issue is formulated

Decision-making process Decision-making process (cont’d)(cont’d)

ISWGNA:NA circulates recommendation to all countries ISWGNA:NA circulates recommendation to all countries (NSO and CB) and regional commissions for discussion (NSO and CB) and regional commissions for discussion and comments with a 60-day response periodand comments with a 60-day response period

Formulates final recommendation incorporating results Formulates final recommendation incorporating results of country comments and refers it to the editorof country comments and refers it to the editor

Editor consolidates all final recommendations, ensuring Editor consolidates all final recommendations, ensuring conceptual consistency and produces final text of conceptual consistency and produces final text of SNA SNA 1993, Rev.1 1993, Rev.1 for submission to the Statistical Commission for submission to the Statistical Commission in 2008in 2008

Decision-making process - DiagramDecision-making process - Diagram

Criteria for identifying issues Criteria for identifying issues for updatingfor updating

Issues emerging in the new economic environmentIssues emerging in the new economic environmentOld issues, previously discussed and rejected, if they fulfill Old issues, previously discussed and rejected, if they fulfill one of the following criteria:one of the following criteria:

Warrant the need to a further look in the new economic Warrant the need to a further look in the new economic environment due to their economic significanceenvironment due to their economic significanceAdvancement in methodological research justifying Advancement in methodological research justifying different treatmentdifferent treatment

Recognition of user needsRecognition of user needsFeasibility of planned changesFeasibility of planned changes

List of issuesList of issuesFor the complete list of issues, including descriptions, available For the complete list of issues, including descriptions, available recommendations, comments refer to the following website: recommendations, comments refer to the following website: http://unstats.un.org/unsd/sna1993/issues.asphttp://unstats.un.org/unsd/sna1993/issues.aspIssues:Issues:1. Repurchase agreements1. Repurchase agreements2. Employer retirement pension schemes2. Employer retirement pension schemes3. Employee stock options3. Employee stock options4.a Non-performing loans4.a Non-performing loans4.b Valuation of loans and deposits; Write-off and interest accrual on impaired loans4.b Valuation of loans and deposits; Write-off and interest accrual on impaired loans5. Non-life insurance services 5. Non-life insurance services 6. Financial services6. Financial services6.a Financial services6.a Financial services6.b Allocation of the output of central banks6.b Allocation of the output of central banks7. Taxes on holding gains7. Taxes on holding gains8. Interest under high inflation8. Interest under high inflation9. Research and development9. Research and development10. Patented entities10. Patented entities

List of issues List of issues (cont’d)(cont’d)11. Originals and copies11. Originals and copies12. Databases12. Databases13. Other intangible fixed assets13. Other intangible fixed assets14. Cost of ownership transfers14. Cost of ownership transfers15. Cost of capital services: production account15. Cost of capital services: production account16. Government owned assets16. Government owned assets17. Mineral exploration17. Mineral exploration18. Right to use/exploit non-produced resources between residents and non-residents18. Right to use/exploit non-produced resources between residents and non-residents19. Military expenditures19. Military expenditures20. Land20. Land21. Contracts and leases of assets21. Contracts and leases of assets22. Goodwill and other non-produced assets22. Goodwill and other non-produced assets23. Obsolescence and depreciation23. Obsolescence and depreciation24. Build-Own-Operate-Transfer (BOOT) schemes24. Build-Own-Operate-Transfer (BOOT) schemes25.a Ancillary units25.a Ancillary units25.b Institutional units25.b Institutional units25.b.i Holding companies, special purpose entities, trusts25.b.i Holding companies, special purpose entities, trusts25.b.ii Treatment of multi-territory enterprises25.b.ii Treatment of multi-territory enterprises25.b.iii Recognition of unincorporated branches25.b.iii Recognition of unincorporated branches25.c Privatization, restructuring agencies, securitization and special purpose vehicles (SPVs)25.c Privatization, restructuring agencies, securitization and special purpose vehicles (SPVs)

List of issues List of issues (cont’d)(cont’d)

26. Cultivated assets26. Cultivated assets27. Classification and terminology on assets27. Classification and terminology on assets28. Amortization of tangible and intangible non-produced assets28. Amortization of tangible and intangible non-produced assets29. Assets boundary for non-produced intangible assets29. Assets boundary for non-produced intangible assets30. Definition of economic assets30. Definition of economic assets31. Valuation of water31. Valuation of water32. Informal sector32. Informal sector33. Illegal and underground activities33. Illegal and underground activities34. Super dividend, capital injections and reinvested earnings (government transactions with 34. Super dividend, capital injections and reinvested earnings (government transactions with

public corporations (earnings and funding))public corporations (earnings and funding))35. Tax revenue, uncollectible taxes, and tax credits (recording of taxes)35. Tax revenue, uncollectible taxes, and tax credits (recording of taxes)36. Private/public/government sectors delineation (sectorization boundaries)36. Private/public/government sectors delineation (sectorization boundaries)37. Activation of guarantees (contingent assets) and constructive obligations37. Activation of guarantees (contingent assets) and constructive obligations38. Transaction concept38. Transaction concept38.a Change of economic ownership (as term)38.a Change of economic ownership (as term)38.b Assets, liabilities and personal effects of individuals changing residence ("migrant 38.b Assets, liabilities and personal effects of individuals changing residence ("migrant

transfers")transfers")38.c Application of accrual principles to the debt in arrears38.c Application of accrual principles to the debt in arrears

List of issues List of issues (cont’d)(cont’d)

39. Residence39. Residence39.a Meaning of national economy39.a Meaning of national economy39.b Predominant center of economic interest (as term)39.b Predominant center of economic interest (as term)39.c Clarification of non-permanent workers and entities with little or no physical presence39.c Clarification of non-permanent workers and entities with little or no physical presence40. Goods sent abroad for processing40. Goods sent abroad for processing41. Merchanting41. Merchanting42. Retained earnings of mutual funds, insurance companies, and pension funds42. Retained earnings of mutual funds, insurance companies, and pension funds43. Interest and related issues43. Interest and related issues43.a Treatment of index linked debt instruments43.a Treatment of index linked debt instruments43.b Interest at concessional rates43.b Interest at concessional rates43.c Fees payable on securities lending and gold loans43.c Fees payable on securities lending and gold loans44. Financial assets classification44. Financial assets classification

List of clarificationsList of clarificationsFor the complete list of clarifications, including descriptions and available For the complete list of clarifications, including descriptions and available recommendations refer to the following website: recommendations refer to the following website: http://unstats.un.org/unsd/sna1993/issues.asp#clarhttp://unstats.un.org/unsd/sna1993/issues.asp#clar

Clarifications:Clarifications:C1. Other subsidies on production to non-market producersC1. Other subsidies on production to non-market producersC2. The treatment of seignorage profits from the issue of coins in the 1993 SNA and in the C2. The treatment of seignorage profits from the issue of coins in the 1993 SNA and in the Manual of Government Finance Statistics (GFS) 1986Manual of Government Finance Statistics (GFS) 1986C3. Review of SNA terminology for user-friendlinessC3. Review of SNA terminology for user-friendlinessC4. Volumes and prices in relation to taxes on productsC4. Volumes and prices in relation to taxes on productsC5. Clarification of components of compensation of employeesC5. Clarification of components of compensation of employeesC6. Review of SNA codesC6. Review of SNA codesC7. Should the first appearance of value of financial derivatives be entered as other changes C7. Should the first appearance of value of financial derivatives be entered as other changes in volume (OCVA)?in volume (OCVA)?C8. Classification of financial assets: F5 Shares and other equity/F52 Mutual FundsC8. Classification of financial assets: F5 Shares and other equity/F52 Mutual FundsC9. Valuation of equityC9. Valuation of equityC10. Measurement of non market outputC10. Measurement of non market output

List of clarifications List of clarifications (cont’d)(cont’d)

C11. Concept of jobs and concept of personsC11. Concept of jobs and concept of personsC12. Top level industry classificationsC12. Top level industry classificationsC13. Clarification of Chapter XXI on satellite accountsC13. Clarification of Chapter XXI on satellite accountsC14. The definition of interestC14. The definition of interestC15. The Public SectorC15. The Public SectorC16. Measurement of labor inputsC16. Measurement of labor inputsC17. Measurement of output produced for own final useC17. Measurement of output produced for own final useC18. Inventory withdraws defined including or excluding normal lossesC18. Inventory withdraws defined including or excluding normal lossesC19. Government final consumption expenditureC19. Government final consumption expenditureC20. Legal versus economic terminologyC20. Legal versus economic terminologyC21. Definition of an establishmentC21. Definition of an establishmentC22. Valuation of work-in-progressC22. Valuation of work-in-progressC23. Capital assets not yet ready for useC23. Capital assets not yet ready for useC24. Changes in inventoriesC24. Changes in inventoriesC25. Links between business accounting and national accountingC25. Links between business accounting and national accountingC26. Currency unionsC26. Currency unionsC27. SDRsC27. SDRsC28. Direct investmentC28. Direct investment

AEG meetingsAEG meetingsFour meetings between 2004 – 2006 to deliberate on the Four meetings between 2004 – 2006 to deliberate on the proposals of the various expert groupsproposals of the various expert groups

Some issues will be discussed through e-discussions or e-Some issues will be discussed through e-discussions or e-consultations and if consensus is reached consultations and if consensus is reached recommendations will be adopted in meetings without recommendations will be adopted in meetings without further discussionfurther discussionMeeting in early 2006 is last chance to deliberate on Meeting in early 2006 is last chance to deliberate on issues – all issues need to have AEG recommendation at issues – all issues need to have AEG recommendation at that timethat time

Early 2007 meeting to review mutual consistency of all final Early 2007 meeting to review mutual consistency of all final recommendations on updated issues and overall integrity of recommendations on updated issues and overall integrity of the systemthe system2007 final meeting to adopt all proposed changes2007 final meeting to adopt all proposed changes

For detailed information on AEG meetings refer to the following For detailed information on AEG meetings refer to the following website: website: http://unstats.un.org/unsd/nationalaccount/aeg.htmhttp://unstats.un.org/unsd/nationalaccount/aeg.htm

AEG meeting in February 2004AEG meeting in February 2004Agreement on the list of 44 issues considered for update, classified Agreement on the list of 44 issues considered for update, classified into the following categories:into the following categories:

Issues identified by ISWGNA:NA which are part of deliberations Issues identified by ISWGNA:NA which are part of deliberations of existing expert groups like Canberra II, EDGs, regional expert of existing expert groups like Canberra II, EDGs, regional expert groupsgroupsIssues identified by the Balance of Payments Committee Issues identified by the Balance of Payments Committee (BOPCOM)(BOPCOM)Issues identified by the Task Force on Harmonization of Public Issues identified by the Task Force on Harmonization of Public Sector Accounts (TFHPSA)Sector Accounts (TFHPSA)

Identification of responsible agency or expert group for each issueIdentification of responsible agency or expert group for each issueAgreement on recommendations for the following issuesAgreement on recommendations for the following issues::

3. Employer stock options3. Employer stock options 5. Non-life insurance services 5. Non-life insurance services 6.a Financial services6.a Financial services 6.b Output of central banks6.b Output of central banks 7. Taxes on holding gains7. Taxes on holding gains 14. Cost of ownership transfers14. Cost of ownership transfers 19. Military expenditures19. Military expenditures 26. Cultivated assets26. Cultivated assets

AEG meeting in Feb. 2004 – AEG meeting in Feb. 2004 – Overview of country commentsOverview of country comments

42 countries responded to AEG recommendations, equally from National Statistical 42 countries responded to AEG recommendations, equally from National Statistical Offices and Central Banks Offices and Central Banks Majority of countries supports AEG recommendationsMajority of countries supports AEG recommendationsResults of the country comments were summarized as follows:Results of the country comments were summarized as follows:

AEG meeting in December 2004AEG meeting in December 2004

Agreement on recommendations for the following issues:Agreement on recommendations for the following issues: 4.a Non-performing loans4.a Non-performing loans 11. Originals and copies11. Originals and copies 12. Databases12. Databases 14. Cost of ownership transfers – Part II14. Cost of ownership transfers – Part II 16. Government owned assets – cost of capital services16. Government owned assets – cost of capital services 17. Mineral exploration17. Mineral exploration 20. Treatment of land improvements20. Treatment of land improvements 25.b.i Holding companies, special purpose entities (SPEs), and trusts25.b.i Holding companies, special purpose entities (SPEs), and trusts 25.b.ii Treatment of multi-territory enterprises25.b.ii Treatment of multi-territory enterprises 25.b.iii Recognition of branches25.b.iii Recognition of branches 38.a Change of economic ownership38.a Change of economic ownership 38.c Application of accrual principles to debt in arrears38.c Application of accrual principles to debt in arrears 39.b Residence of households39.b Residence of households

AEG meeting in Dec. 2004 – AEG meeting in Dec. 2004 – Overview of country commentsOverview of country comments

56 countries responded to AEG recommendations, equally 56 countries responded to AEG recommendations, equally from National Statistical Offices and Central Banks from National Statistical Offices and Central Banks Majority of countries supports AEG recommendations, Majority of countries supports AEG recommendations, Only for issue 16 - Government owned assets a large Only for issue 16 - Government owned assets a large number of reservations or disagreements were reportednumber of reservations or disagreements were reported

AEG recommendation to include a return to capital, AEG recommendation to include a return to capital, viewed as opportunity cost in the measurement of non-viewed as opportunity cost in the measurement of non-market output was opposed either in principle or on the market output was opposed either in principle or on the basis of feasibilitybasis of feasibilityAEG requested a questionnaire for global consultation AEG requested a questionnaire for global consultation on this issue to be sent to national accounts departments on this issue to be sent to national accounts departments of all countriesof all countries

AEG meeting in Dec. 2004 – AEG meeting in Dec. 2004 – Overview of country comments Overview of country comments (cont’d)(cont’d)

Results of the country comments were summarized as follows:Results of the country comments were summarized as follows:

AEG meeting in July 2005AEG meeting in July 2005

Agreement on recommendations for the following issues:Agreement on recommendations for the following issues: 1. Reverse transactions1. Reverse transactions 4.a Non-performing loans4.a Non-performing loans 9. Research and development9. Research and development 11. Originals and copies11. Originals and copies 12. Databases 12. Databases 15. Cost of capital services15. Cost of capital services 16. Government owned assets – cost of capital services16. Government owned assets – cost of capital services 20. Treatment of land improvements20. Treatment of land improvements 22. Purchased goodwill and marketing assets22. Purchased goodwill and marketing assets 23. Obsolescence and depreciation23. Obsolescence and depreciation 25.b.ii Treatment of multi-territory enterprises25.b.ii Treatment of multi-territory enterprises 31. Water as an asset31. Water as an asset 35. Tax revenues, uncollectible taxes and tax credits35. Tax revenues, uncollectible taxes and tax credits

AEG meeting in July 2005 AEG meeting in July 2005 (cont’d)(cont’d)

Agreement on recommendations for the following issues (cont’d):Agreement on recommendations for the following issues (cont’d): 36. Public/private/government sector delineation36. Public/private/government sector delineation 37. Granting of guarantees37. Granting of guarantees 38.b Migrants’ transfers38.b Migrants’ transfers 39.c Residence of households: Non-permanent workers39.c Residence of households: Non-permanent workers 39.c Residence of households: Ships’ crew and patients39.c Residence of households: Ships’ crew and patients 40. Goods sent abroad for processing40. Goods sent abroad for processing 42. Retained earnings on mutual funds and other collective 42. Retained earnings on mutual funds and other collective

investment schemesinvestment schemes 43.a Interest on index-linked debt instruments43.a Interest on index-linked debt instruments 43.a Debt instruments linked to foreign currency43.a Debt instruments linked to foreign currency 43.c Fees on security lending and reversible gold transactions43.c Fees on security lending and reversible gold transactions 44. Distinction between loans and deposits44. Distinction between loans and deposits 44. Traded loans (Borderline between Securities and Other Financial 44. Traded loans (Borderline between Securities and Other Financial

Instruments) Instruments)

AEG meeting in July 2005 – AEG meeting in July 2005 – Overview of country commentsOverview of country comments

Country comments are currently still obtained Country comments are currently still obtained (deadline 30 November 2005)(deadline 30 November 2005)Comments are posted against corresponding issues Comments are posted against corresponding issues as soon as they are received, for reference check as soon as they are received, for reference check the following website:the following website:

http://unstats.un.org/unsd/sna1993/issues.asphttp://unstats.un.org/unsd/sna1993/issues.asp

AEG meeting in AEG meeting in January/February 2006January/February 2006

Last meeting to discuss conceptual issues and Last meeting to discuss conceptual issues and clarifications and agree on recommendationsclarifications and agree on recommendations

AEG recommendations for each of the 44 issues AEG recommendations for each of the 44 issues must be formulatedmust be formulated

For provisional list of issues to be discussed refer For provisional list of issues to be discussed refer to the following website: to the following website: http://unstats.un.org/unsd/nationalaccount/aeg.htmhttp://unstats.un.org/unsd/nationalaccount/aeg.htm

Basic structure of Basic structure of SNA 1993, Rev.1SNA 1993, Rev.1

No change in basic structureNo change in basic structureMajor new issues will go into new, separate chapters or annexNew or revised text will be incorporated into existing chapters for completion

Opportunities to shorten existing text will Opportunities to shorten existing text will be exploitedbe exploited

Record of changes of text will be createdRecord of changes of text will be created

Role of editorRole of editor

New textNew textDrafts most of new textAdjusts 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 SNAExisting text of the SNAMakes editorial touch-ups without creating changes to the SNA and flags them for easy identification

Role of reviewersRole of reviewers

ISWGNA:NAISWGNA:NAProvides “eagle eye” review of first draftCarries out substantive review of all chapters

AEGAEGReviews chapters or parts of the revised SNA, probably organized in groupsMandate of review is limited to seek out inconsistencies based on agreed recommendations and clarifications

Organization of draft reviewOrganization of draft review

Chapters will go through the following stages:Chapters will go through the following stages:0 Exiting text or contributionExiting text or contribution1 Draft from editor for “eagle eye” review by Draft from editor for “eagle eye” review by

ISWGNA:NAISWGNA:NA2 Draft for review by AEG, publication on the website and Draft for review by AEG, publication on the website and

distribution to NSO and CB for commentsdistribution to NSO and CB for comments3 Redraft from editor for “eagle eye” and substantive Redraft from editor for “eagle eye” and substantive

review by ISWGNA:NAreview by ISWGNA:NA4 Final draft ready for submission to Statistical Final draft ready for submission to Statistical

CommissionCommission

Organization of draft review Organization of draft review (cont’d)(cont’d)

Chapters divided into two tranches and Chapters divided into two tranches and proceeded through consecutivelyproceeded through consecutively

First tranche: Chapters that are the “heart” of the SNASecond tranche: Remaining chapters, tables, glossary

Approach allows more review time for tranche 1 Approach allows more review time for tranche 1 (“heart”)(“heart”)

Editor will work on blocks of related chapters within tranche and upon completion of blocks releases them for review

Output datesOutput dates

Initial set of consolidated recommendations – Initial set of consolidated recommendations – Early 2006Early 2006Views on consistency – April-Sept. 2006Views on consistency – April-Sept. 2006Revised set of consolidated recommendations for Revised set of consolidated recommendations for Statistical Commission – Late 2006Statistical Commission – Late 2006Draft of tranche 1 for AEG meeting – Early 2007Draft of tranche 1 for AEG meeting – Early 2007Draft of tranche 2 for AEG and outlook towards Draft of tranche 2 for AEG and outlook towards implementation of revised SNA – Late 2007implementation of revised SNA – Late 2007Draft of Draft of 1993 SNA, Rev.11993 SNA, Rev.1 for Statistical for Statistical Commission – Late 2007Commission – Late 2007

Monitoring progressMonitoring progress

UNSD will maintain progress database on the UNSD will maintain progress database on the internet to assure transparency of processinternet to assure transparency of process

Database input provided by editorDatabase input provided by editor

Database will exist in three levels:Database will exist in three levels:Summary chapter x issue matrix with color coding indicating progress – publicly availableMore detailed matrix for ISWGNA:NA – restricted accessProject management to track tasks and assignments during review – restricted access

Useful referencesUseful references

Projects main website containing links to all Projects main website containing links to all available information:available information: http://unstats.un.org/unsd/nationalaccount/snarev1.asphttp://unstats.un.org/unsd/nationalaccount/snarev1.asp

List of all issues/clarifications, including List of all issues/clarifications, including descriptions, papers, recommendations, country descriptions, papers, recommendations, country and expert comments:and expert comments: http://unstats.un.org/unsd/sna1993/issues.asphttp://unstats.un.org/unsd/sna1993/issues.asp

List of all AEG meetings, including agenda, List of all AEG meetings, including agenda, papers, presentations, minutes: papers, presentations, minutes: http://unstats.un.org/unsd/nationalaccount/aeg.htmhttp://unstats.un.org/unsd/nationalaccount/aeg.htm