9 TOPICS GROUPED UNDER THE HEADING BASIC ACCOUNTING RULES 2008 SNA RESEARCH AGENDA 9 TOPICS GROUPED UNDER THE HEADING BASIC ACCOUNTING RULES

EUROSTAT’S OPINION ABOUT THE ORDER OF URGENCY / IMPORTANCE OF THE 9 TOPICS (1) More important topics: - The relationship of SNA and IASB - Consolidation of enterprise groups - Measuring the output of government services

EUROSTAT’S OPINION ABOUT THE ORDER OF URGENCY / IMPORTANCE OF THE 9 TOPICS (2) Less important topics: - Trusts - Final consumption of corporations - The treatment of social transfers in kind to the rest of the world - Output of central banks: taxes and subsidies on interest rates applied by central banks - The treatment of establishments in the SNA - The inclusion of international organisations in the SNA

The relationship of SNA and IASB The development of a regular dialogue between the national accounts community and the IASB would be a way to assure the needs of national accountants were represented to the IASB and national accountants were aware of the possible developments in the data sources.

Consolidation of enterprise groups A way forward could be to develop supplementary tables in which enterprise groups are considered as single entities and to consolidate the accounts of their members. This could impact industry value added and sectoral balance sheets.

Measuring the output of government services The value of non-market production provided without charge, or at prices that are not economically significant, should be estimated as the sum of production costs. Research would try to find alternative ways to measure the output of government

Trusts The SNA recommends that trusts be treated as quasi-corporations. In some cases, though, when one is used in effect as an SPE for a corporation, it is merged with its parent so long as they are both resident in the same economy. Further clarification is needed on when the assets of the trusts should be treated as belonging to separate units and when they should be merged with the assets of their owners.

Final consumption of corporations Large corporations often undertake sponsoring of cultural and sporting events. These payments could be considered as a form of individual consumption and treated as final consumption expenditure of corporations and social transfers in kind to households

The treatment of social transfers in kind to the rest of the world SNA assumes that the amounts of social transfers in kind payable to the rest of the world are negligible or offset by similar benefits received from the rest of the world. In some cases, these assumptions may be inappropriate and an explicit way of recording could be elaborated, considering the consequences of having a difference between total consumption expenditure and total actual consumption. (Solution in ESA 2010 : these flows are registered as social benefits other than social transfers in kind)

Output of central banks: taxes and subsidies on interest applied by central banks When the financial intermediation of central banks includes policy measures setting interest rates higher or lower than market interest rates, this can disturb the measure of their output and value added. (Solution in ESA 2010 : By convention, the output of the central bank is to be measured as the sum of its costs)

The treatment of establishments in the SNA The rationale to have a unit that relates as far as possible to only one activity in only one location was to have a clear link with the physical production process. Should the concept of establishment be kept, considering the change of emphasis from the physical view of input – output to an economic view, and from product – by - product to industry – by – industry ones? (Observation : European countries will continue to transmit a symmetric input – output table (product – by - product) in the context of ESA 2010)

The inclusion of international organisations in the SNA Should international organisations be treated as a standard subset of the rest of the world, with a full set of accounts compiled for them?

Thank you!