/content/chapter/na_glance-2011-31-en
 
National Accounts at a Glance 2011
Previous page 37/37 Next page
branch Annex C. Glossary of Main Terms

System of National Accounts , 1993

The definitions in this Glossary are based on the actual wording used in the System of National Accounts, 1993 (SNA93). Where applicable, each definition shows the paragraph of SNA93 from which the definition has been derived.

Term

 

Definition

 

Paragraph(s)

 

Acquisitions

 

Goods (including assets) and services are acquired by institutional units when they become the new owners of the goods or when the delivery of services to them is completed.

 

9.32

 

Actual final consumption of general government

 

Actual final consumption of general government is measured by the value of the collective (as opposed to individual) consumption services provided to the community, or large sections of the community, by general government; it is derived from their final consumption expenditure by subtracting the value of social transfers in kind payable.

 

9.97 and 9.3

 

Actual final consumption of households

 

Actual final consumption of households is the value of the consumption goods and services acquired by households, whether by purchase in general, or by transfer from government units or NPISHs, and used by them for the satisfaction of their needs and wants; it is derived from their final consumption expenditure by adding the value of social transfers in kind receivable.

 

9.11 and 9.3 [9.72, 9.96]

 

Actual final consumption of NPISHs

 

There is no actual final consumption of NPISHs because, in practice, most of their services are individual in nature and so, for simplicity, all services provided by NPISHs are treated by convention as individual (as social transfers in kind).

 

9.44 [9.94, 9.95]

 

Actual individual consumption

 

Actual individual consumption is measured by the total value of household final consumption expenditure, NPISH final consumption expenditure and government expenditure on individual consumption goods and services.

 

[9.94]

 

Adjustment for the change in the net equity of households in pension fund reserves

 

The adjustment for the change in the net equity of households in pension fund reserves is equal to the total value of the actual social contributions payable into private funded pension schemes plus the total value of contribution supplements payable out of the property income attributed to insurance policy holders (i.e. holders of pension rights) minus the value of the associated service charges minus the total value of the pensions paid out as social insurance benefits by private funded pension schemes; this adjustment is designed to ensure that the balance of pension contributions over pension receipts (i.e. of "transfers" payable over "transfers" receivable) does not enter into household saving.

 

9.16 [10.30]

 

Basic price

 

The basic price is the amount receivable by the producer from the purchaser for a unit of a good or service produced as output minus any tax payable, and plus any subsidy receivable, on that unit as a consequence of its production or sale; it excludes any transport charges invoiced separately by the producer.

 

6.205, 15.28 [3.82]

 

Capital transfers

 

Capital transfers are transactions, either in cash or in kind, in which the ownership of an asset (other than cash and inventories) is transferred from one institutional unit to another, or in which cash is transferred to enable the recipient to acquire another asset, or in which the funds realised by the disposal of another asset are transferred.

 

10.29

[3.22, 8.3]

 

Chain indices

 

Chain indices are obtained by linking price (or volume) indices for consecutive periods; the short-term movements which are linked are calculated using weighting patterns appropriate to the periods concerned.

 

16.41

 

Changes in inventories (including work-in-progress)

 

Changes in inventories (including work-in-progress) consist of changes in: a) stocks of outputs that are still held by the units that produced them prior to their being further processed, sold, delivered to other units or used in other ways; and b) stocks of products acquired from other units that are intended to be used for intermediate consumption or for resale without further processing; they are measured by the value of the entries into inventories less the value of withdrawals and the value of any recurrent losses of goods held in inventories.

 

10.7 and 10.28

 

Collective consumption service

 

A collective consumption service is a service provided by general government simultaneously to all members of the community or to all members of a particular section of the community, such as all households living in a particular region.

 

9.43

 

Compensation of employees

 

Compensation of employees is the total remuneration, in cash or in kind, payable by enterprises to employees in return for work done by the latter during the accounting period.

 

7.21

[7.31]

 

Constant prices

 

Constant prices are obtained by directly factoring changes over time in the values of flows or stocks of goods and services into two components reflecting changes in the prices of the goods and services concerned and changes in their volumes (i.e. changes in "constant price terms" ); the term "at constant prices" commonly refers to series which use a fixed-base Laspeyres formula.

 

16.2

 

Consumption of fixed capital

 

Consumption of fixed capital represents the reduction in the value of the fixed assets used in production during the accounting period resulting from physical deterioration, normal obsolescence or normal accidental damage.

 

10.27

[6.179, 10.118]

 

Current transfers

 

Current transfers consist of all transfers that are not transfers of capital; they directly affect the level of disposable income and should influence the consumption of goods or services.

 

8.32

[3.22, 8.3, 10.133]

 

Current transfers from/to abroad

 

Current transfers which take place between resident and non-resident institutional units are referred to as current transfers from/to abroad.

 

8.4

 

Disposable income

 

Disposable income is derived from the balance of primary incomes of an institutional unit or sector by adding all current transfers, except social transfers in kind, receivable by that unit or sector and subtracting all current transfers, except social transfers in kind, payable by that unit or sector; it is the balancing item in the Secondary Distribution of Income Account.

 

8.11

 

Disposals

 

Disposals of assets (inventories, fixed assets or land or other non-produced assets) by institutional units occur when one of those units sells or transfers any of the assets to another institutional unit; when the ownership of an existing fixed asset is transferred from one resident producer to another, the value of the asset sold, bartered or transferred is recorded as negative gross fixed capital formation by the former and as positive gross fixed capital formation by the latter.

 

10.40

[9.32]

 

Employee

 

An employee is a person who enters an agreement, which may be formal or informal, with an enterprise to work for the enterprise in return for remuneration in cash or in kind.

 

7.23

 

Exports of goods and services

 

Exports of goods and services consist of sales, barter, or gifts or grants, of goods and services from residents to non-residents; the treatment of exports and imports in the SNA is generally identical with that in the balance of payments accounts as described in the Balance of Payments Manual.

 

14.88

[14.91, 14.94]

 

External balance of goods and services

 

The external balance of goods and services is the value of exports of goods and services less imports of goods and services.

 

2.166 and Table 2.3 V.1

 

Factor cost

 

Gross value added at factor cost is not a concept used explicitly in the SNA but it can easily be derived by subtracting the value of any taxes, less subsidies, on production payable out of gross value added.

 

6.229

 

Final consumption

 

Final consumption consists of goods and services used up by individual households or the community to satisfy their individual or collective needs or wants.

 

1.49

 

Final consumption expenditure of government

 

Government final consumption expenditure consists of expenditure, including imputed expenditure, incurred by general government on both individual consumption goods and services and collective consumption services.

 

9.94

 

Final consumption expenditure of households

 

Household final consumption expenditure consists of the expenditure, including imputed expenditure, incurred by resident households on individual consumption goods and services, including those sold at prices that are not economically significant.

 

9.94

[9.45]

 

Final consumption expenditure of NPISHs

 

Final consumption expenditure of NPISHs consists of the expenditure, including imputed expenditure, incurred by resident NPISHs on individual consumption goods and services.

 

9.94

 

Financial intermediation services indirectly measured (FISIM)

 

Financial intermediation services indirectly measured (FISIM) is an indirect measure of the value of financial intermediation services provided but for which financial institutions do not charge explicitly.

 

6.124

 

Full-time equivalent employment

 

Full-time equivalent employment is the number of full-time equivalent jobs, defined as total hours worked divided by average annual hours worked in full-time jobs.

 

17.14

[15.102, 17.28]

 

General government

 

The general government sector consists of the totality of institutional units which, in addition to fulfilling their political responsibilities and their role of economic regulation, produce principally non-market services (possibly goods) for individual or collective consumption and redistribute income and wealth.

 

2.20

 

Government final consumption expenditure

 

Government final consumption expenditure consists of expenditure, including imputed expenditure, incurred by general government on both individual consumption goods and services and collective consumption services.

 

9.94

 

Gross

 

The term "gross" is a common means of referring to values before deducting consumption of fixed capital (generally used as in "gross capital stock" or "gross domestic product" ); all the major balancing items in the accounts from value added through to saving may be recorded gross or net.

 

6.201

 

Gross capital formation

 

Gross capital formation is measured by the total value of the gross fixed capital formation, changes in inventories and acquisitions less disposals of valuables for a unit or sector.

 

10.32

 

Gross domestic product (GDP) - expenditure based

 

Expenditure-based gross domestic product is total final expenditures at purchasers' prices (including the fob value of exports of goods and services), less the fob value of imports of goods and services.

 

6.235

 

Gross domestic product (GDP) - income based

 

Income-based gross domestic product is compensation of employees, plus taxes less subsidies on production and imports, plus gross mixed income, plus gross operating surplus.

 

2.222

 

Gross domestic product (GDP) - output based

 

Output-based gross domestic product is the sum of the gross values added of all resident producers at basic prices, plus all taxes less subsidies on products.

 

6.235 - 6.237

 

Gross domestic product at market prices

 

Gross domestic product at market prices is the sum of the gross values added of all resident producers at market prices, plus taxes less subsidies on imports.

 

6.235 - 6.237

 

Gross fixed capital formation

 

Gross fixed capital formation is measured by the total value of a producer's acquisitions, less disposals, of fixed assets during the accounting period plus certain additions to the value of non-produced assets (such as subsoil assets or major improvements in the quantity, quality or productivity of land) realised by the productive activity of institutional units.

 

10.33 and 10.51

[10.26]

 

Gross national disposable income

 

Gross national disposable income may be derived from gross national income by adding all current transfers in cash or in kind receivable by resident institutional units from non-resident units and subtracting all current transfers in cash or in kind payable by resident institutional units to non-resident units.

 

8.16

[2.183]

 

Gross national income (GNI)

 

Gross national income (GNI) is GDP less net taxes on production and imports, less compensation of employees and property income payable to the rest of the world plus the corresponding items receivable from the rest of the world (in other words, GDP less primary incomes payable to non-resident units plus primary incomes receivable from non-resident units); an alternative approach to measuring GNI at market prices is as the aggregate value of the balances of gross primary incomes for all sectors; [note that gross national income is identical to gross national product (GNP) as previously used in national accounts generally].

 

2.81 and 7.16 and Table 7.2

[2.181]

 

Gross saving

 

Gross saving is gross disposable income less final consumption expenditure.

 

9.2

 

Gross value added

 

Gross value added is the value of output less the value of intermediate consumption; it is a measure of the contribution to GDP made by an individual producer, industry or sector; gross value added is the source from which the primary incomes of the SNA are generated and is therefore carried forward into the primary distribution of income account.

 

1.6

[2.172, 6.4, 6.222]

 

Gross value added at basic prices

 

Gross value added at basic prices is output valued at basic prices less intermediate consumption valued at purchasers' prices.

 

6.226, 15.37

[6.231]

 

Gross value added at producers' prices

 

Gross value added at producers' prices is output valued at producers' prices less intermediate consumption valued at purchasers' prices.

 

6.227, 15.37

 

Household final consumption expenditure

 

Household final consumption expenditure consists of the expenditure, including imputed expenditure, incurred by resident households on individual consumption goods and services, including those sold at prices that are not economically significant.

 

9.94

[9.45]

 

Import duties

 

Import duties consist of customs duties, or other import charges, which are payable on goods of a particular type when they enter the economic territory.

 

7.66

 

Import subsidies

 

Import subsidies consist of subsidies on goods and services that become payable to resident producers when the goods cross the frontier of the economic territory or when the services are delivered to resident institutional units.

 

7.74

 

Imports of goods and services

 

Imports of goods and services consist of purchases, barter, or receipts of gifts or grants, of goods and services by residents from non-residents; the treatment of exports and imports in the SNA is generally identical with that in the balance of payments accounts as described in the Balance of Payments Manual.

 

14.88

[14.91, 14.94]

 

Income from abroad - net

 

Net income from abroad is the difference between the total values of the primary incomes receivable from, and payable to, non-residents.

 

7.15

 

ISIC

 

ISIC is the United Nations International Standard Industrial Classification of All Economic Activities; the third revision of ISIC is used in the 1993 SNA.

 

1.47

 

Mixed income

 

Mixed income is the surplus or deficit accruing from production by unincorporated enterprises owned by households; it implicitly contains an element of remuneration for work done by the owner, or other members of the household, that cannot be separately identified from the return to the owner as entrepreneur but it excludes the operating surplus coming from owner-occupied dwellings.

 

7.8

[4.143, 7.81]

 

National disposable income

 

National disposable income may be derived from national income by adding all current transfers in cash or in kind receivable by resident institutional units from non-resident units and subtracting all current transfers in cash or in kind payable by resident institutional units to non-resident units.

 

8.16

[2.183]

 

National expenditure

 

Capital formation and final consumption grouped together constitute national expenditure.

 

2.187

 

National income

 

National income is the total value of the primary incomes receivable within an economy less the total of the primary incomes payable by resident units.

 

7.14

 

Net

 

The term "net" is a common means of referring to values after deducting consumption of fixed capital (generally used as in "net capital stock" or "net domestic product" ); all the major balancing items in the accounts from value added through to saving may be recorded gross or net; it should be noted, however, that the term "net" can be used in different contexts in the national accounts, such as "net income from abroad" which is the difference between two income flows.

 

6.201

 

Net borrowing

 

Net borrowing

See "net lending" .

 

 

Net income from abroad

 

Net income from abroad is the difference between the total values of the primary incomes receivable from, and payable to, non-residents.

 

7.15

 

Net lending

 

Net lending is the net amount a unit or a sector has available to finance, directly or indirectly, other units or other sectors; it is the balancing item in the capital account and is defined as: (Net saving plus capital transfers receivable minus capital transfers payable) minus (the value of acquisitions less disposals of non-financial assets, less consumption of fixed capital); negative net lending may also be described as  "net borrowing" .

 

2.137 and Tables 2.1 III.1 and 10.30

 

Net national disposable income

 

Net national disposable income may be derived from net national income by adding all current transfers in cash or in kind receivable by resident institutional units from non-resident units and subtracting all current transfers in cash or in kind payable by resident institutional units to non-resident units.

 

8.16

 

Net national income

 

The aggregate value of the balances of net primary incomes summed over all sectors is described as net national income.

 

7.16 and Table 7.2

[2.182]

 

Net saving

 

Net saving is net disposable income less final consumption expenditure.

 

9.2

 

Non-profit institutions serving households (NPISHs)

 

Non-profit institutions serving households (NPISHs) consist of NPIs which are not predominantly financed and controlled by government and which provide goods or services to households free or at prices that are not economically significant.

 

4.64 and 4.65

[2.20]

 

NPISH final consumption expenditure

 

Final consumption expenditure of NPISHs consists of the expenditure, including imputed expenditure, incurred by resident NPISHs on individual consumption goods and services.

 

9.94

 

Operating surplus

 

The operating surplus measures the surplus or deficit accruing from production before taking account of any interest, rent or similar charges payable on financial or tangible non-produced assets borrowed or rented by the enterprise, or any interest, rent or similar receipts receivable on financial or tangible non-produced assets owned by the enterprise; (note: for unincorporated enterprises owned by households, this component is called "mixed income" ).

 

7.8

 

Primary incomes

 

Primary incomes are incomes that accrue to institutional units as a consequence of their involvement in processes of production or ownership of assets that may be needed for purposes of production.

 

7.2

 

Purchasing power parity (PPP)

 

A purchasing power parity (PPP) is a price relative which measures the number of units of country B's currency that are needed in country B to purchase the same quantity of an individual good or service as 1 unit of country A's currency will purchase in country A.

 

16.82

 

Real gross domestic income (real GDI)

 

Real gross domestic income (real GDI) measures the purchasing power of the total incomes generated by domestic production (including the impact on those incomes of changes in the terms of trade); it is equal to gross domestic product at constant prices plus the trading gain (or less the trading loss) resulting from changes in the terms of trade.

 

16.152

 

Rebasing

 

In the course of time, the pattern of relative prices in the base period tends to become progressively less relevant to the economic situations of later periods to the point at which it becomes unacceptable to continue using them to measure volume measures from one period to the next; it may then be necessary to update the base period, a process which is commonly referred to as "rebasing" .

 

16.31

 

Saving

 

Saving is disposable income less final consumption expenditure (or adjusted disposable income less actual final consumption), in both cases after taking account of an adjustment for pension funds; saving is an important aggregate which can be calculated for each institutional sector or for the whole economy.

 

9.17

[1.10, 9.2, 9.19]

 

Self-employed workers

 

Self-employed workers are persons who are the sole owners, or joint owners, of the unincorporated enterprises in which they work, excluding those unincorporated enterprises that are classified as quasi-corporations.

 

7.24

 

SNA (System of National Accounts)

 

The System of National Accounts (SNA) consists of a coherent, consistent and integrated set of macroeconomic accounts, balance sheets and tables based on a set of internationally agreed concepts, definitions, classifications and accounting rules.

 

1.1

 

Subsidies

 

Subsidies are current unrequited payments that government units, including non-resident government units, make to enterprises on the basis of the levels of their production activities or the quantities or values of the goods or services which they produce, sell or import.

 

7.71

[15.52]

 

Subsidies on production - other

 

Other subsidies on production consist of subsidies, except subsidies on products, which resident enterprises may receive as a consequence of engaging in production (e.g. subsidies on payroll or workforce or subsidies to reduce pollution).

 

7.79

 

Subsidies on products - other

 

Other subsidies on products (other than export or import subsidies) consist of subsidies on goods or services produced as the outputs of resident enterprises that become payable as a result of the production, sale, transfer, leasing or delivery of those goods or services, or as a result of their use for own consumption or own capital formation; there are three broad categories: a) subsidies on products used domestically; b) losses of government trading organisations; and c) subsidies to public corporations and quasi-corporations.

 

7.78

 

System of National Accounts (SNA)

 

The System of National Accounts (SNA) consists of a coherent, consistent and integrated set of macroeconomic accounts, balance sheets and tables based on a set of internationally agreed concepts, definitions, classifications and accounting rules.

 

1.1

 

Taxes

 

Taxes are compulsory, unrequited payments, in cash or in kind, made by institutional units to government units; they are described as unrequited because the government provides nothing in return to the individual unit making the payment, although governments may use the funds raised in taxes to provide goods or services to other units, either individually or collectively, or to the community as a whole.

 

7.48

[8.43]

 

Taxes on production and imports

 

Taxes on production and imports consist of taxes payable on goods and services when they are produced, delivered, sold, transferred or otherwise disposed of by their producers plus taxes and duties on imports that become payable when goods enter the economic territory by crossing the frontier or when services are delivered to resident units by non-resident units; they also include other taxes on production, which consist mainly of taxes on the ownership or use of land, buildings or other assets used in production or on the labour employed, or compensation of employees paid.

 

7.49

 

Taxes on products

 

Taxes on products, excluding VAT, import and export taxes, consist of taxes on goods and services that become payable as a result of the production, sale, transfer, leasing or delivery of those goods or services, or as a result of their use for own consumption or own capital formation.

 

7.69, 15.47

 

Total final consumption

 

Total final consumption is the total value of all expenditures on individual and collective consumption goods and services incurred by resident households, resident NPISHs and general government units; it may also be defined in terms of actual final consumption as the value of all the individual goods and services acquired by resident households plus the value of the collective services provided by general government to the community or large sections of the community.

 

9.98

 

Trading gains and losses

 

Trading gains and losses arise from changes in a country's terms of trade; for example, if the prices of a country's exports rise faster (or fall more slowly) than the prices of its imports (i.e. if its terms of trade improve) then an increased volume of imports of goods and services can be purchased by residents out of the receipts generated by a given level of exports.

 

16.152

 

Valuables

 

Valuables are produced assets that are not used primarily for production or consumption, that are expected to appreciate or at least not to decline in real value, that do not deteriorate over time under normal conditions and that are acquired and held primarily as stores of value.

 

(AN.13) - Annex

to Chapter XIII

[10.7, 10.116, 13.15, 13.50]

 

Wages and salaries

 

Wages and salaries consist of the sum of wages and salaries in cash and wages and salaries in kind.

 

7.33 and 7.37

 

Wages and salaries in cash

 

Wages and salaries in cash consist of wages or salaries payable at regular weekly, monthly or other intervals, including payments by results and piecework payments; plus allowances such as those for working overtime; plus amounts paid to employees away from work for short periods (e.g. on holiday); plus ad hoc bonuses and similar payments; plus commissions, gratuities and tips received by employees.

 

7.33

 

Wages and salaries in kind

 

Wages and salaries in kind consist of remuneration in the form of goods and/or services that are not necessary for work and can be used by employees in their own time, and at their own discretion, for the satisfaction of their own needs or wants or those of other members of their households.

 

7.39

 
 
Acrobat PDF page