Retained earnings of Mutual funds SNA review issue 42.

Slides:

Advertisements

Similar presentations

Measuring Banking and Insurance: The U.S. Experience Brian C. Moyer Associate Director for Industry Accounts 12 th OECD-NBS Workshop on National Accounts.

Advertisements

Treatment of General Government Pension Schemes (Superannuation) in ABS Government Finance Statistics and the Australian System of National Accounts OECD/ABS.

Pension Funds Workshop The Pension System in Chile Claudia Maisto Statistics Division Macroeconomics Statistics Area Institutional National Accounts Department.

Review and issues encountered in the application of SNA concepts of Income and savings on pensions fund measurements in Australia Derick Cullen Macroeconomic.

Granting and activation of guarantees in an updated SNA.

1 Report to the AEG Findings of the Task Force on Employers Retirement Schemes Adriaan Bloem, IMF John Ruser, BEA Co-chairs.

Supplementary table on pension schemes in social insurance Directorate C: National and European Accounts Unit C-5: Validation of public accounts European.

1 The treatment of holding gains/losses in the estimates of investment income attributable to insurance policyholders and pension beneficiaries Advisory.

Treatment of social insurance schemes in the 2008 SNA Regional Seminar on Developing a Programme for the Implementation of the 2008 SNA and Supporting.

Chap. 1 The Study of Financial Markets Financial Markets – A Definition: –Markets in which funds are transferred between savers (investors) and borrowers.

March 2007 AEG meeting Chapter 13 Main substantive comments.

An Overview of Financial Markets and Institutions

1 Treatment of holding gains/losses in estimates of investment income attributable to insurance policyholders and pension beneficiaries 9 th meeting of.

Uses of Accounting Information and the Financial Statements

Imputation of Property Income in the Case of Liabilities Between the Sponsor and the Pension Fund Brent Moulton Advisory Expert Group on National.

Chapter 17 Anne Harrison Editor. Six sections Insurance and social insurance oher than pensions Standardised guarantees Pensions Financial services Contracts,

Classification of Financial Instruments 1993 SNA Chapter 11 MFSM Chapter 4.

Classification of financial corporations and of financial assets Reimund Mink OECD Working Parties on Financial Statistics and on National Accounts Paris,

Copyright 2010, The World Bank Group. All Rights Reserved. 1 OTHER ECONOMIC FLOWS GOVERNMENT FINANCE STATISTICS Part 1 This lecture describes flows other.

INSTITUTIONAL SECTOR ACCOUNTS Peter van de Ven Head of National Accounts OECD Short Course on National Accounts IARIW-conference, August 23 – 24, 2014.

Non-life insurance services 1 UN STATISTICS DIVISION Economic Statistics Branch National Accounts Section UNSD/ECA National accounts workshop November.

African Centre for Statistics United Nations Economic Commission for Africa Short overview of institutional sectors accounts Clementina Ivan-Ungureanu.

Organization and Operation of Corporations CHAPTER 10 Electronic Presentations in Microsoft® PowerPoint®

Changes to the compilation of UK National Accounts and Balance of Payments Statistics Presenter: Dr Robert Dunn, ONS.

Financial Sector (continued) Training Workshop on System of National Accounts for ECO Member Countries October 2012, Tehran, Islamic Republic of.

Outcomes of Meeting of IMF Committee on Balance of Payments Statistics, June 27 – July 1, 2005.

Principles of Financial Accounting Chapter 1 Forms of Business Organizations Sole Proprietorship Easy to establish Owner is control of assets and operations.

Classification and terminology of financial corporations in the updated SNA Reimund Mink Paris, 10 and 11 October 2005 Paper prepared for the meeting of.

Copyright 2010, The World Bank Group. All Rights Reserved. 1 GOVERNMENT FINANCE STATISTICS INTRODUCTION TO GOVERNMENT FINANCE STATISTICS Part 2 This lecture.

Guarantees Nuno Silva Geneva, April 2006 Joint UNECE/Eurostat/OECD/ Meeting on National Accounts and update of SNA.

Copyright 2010, The World Bank Group. All Rights Reserved. 1 GOVERNMENT FINANCE STATISTICS EXPENSE Part 1 This lecture presents the detailed categories.

Chapter 3 Banks and Other Financial Institutions © 2003 John Wiley and Sons.

Output of the U.S. Financial Sector: Measuring the services of banks andinsurance companies Brian C. Moyer Deputy Chief National Income and Wealth Division.

THE BANK'S BALANCE SHEET

Retained Earnings of Mutual Funds. Current treatment Direct foreign investment, insurance and pension funds: cases where imputation is made for retained.

FINANCIAL ACCOUNTING A USER PERSPECTIVE Hoskin Fizzell Davidson Second Canadian Edition.

FINANCIAL INSTITUTIONS – OVER VIEW Chapter 1 Dr. BALAMURUGAN MUTHURAMAN.

Saving and Investing Notes. Saving and Investing Objectives Explain factors that influence the amount of money earned at a financial institution.

Government Transactions with Public Corporations (earnings and funding) (issue 34) UNSD/NA/GS 1 UN STATISTICS DIVISION Economic Statistics Branch National.

© BIPE 2003 September 2003 OECD WORKING PARTY ON FINANCIAL STATISTICS 6-7 October 2003 Towards a more precise classification of household financial assets.

Unit 3.5 Final Accounts. Financial Statements ▫Profit and Loss account ▫Balance sheet ▫Cash Flow statement Financial Accounting Management Accounting.

ALP101-G ACCOUNTING CONCEPTS, PRINCIPLES AND PROCEDURES.

Herman Smith UNSD 10 th Meeting of the Advisory Expert Group on National Accounts April 2016, Paris The accrual recording of property income in the.

Employer retirement pension schemes

March 2007 AEG meeting Chapter 17 - pensions

Benson Sim United Nations Statistics Division

An Overview of Financial Markets and Institutions

Benson Sim United Nations Statistics Division

Chapter 7: The Distribution of Income Accounts

Financial Corporations

Item 12: Property Income ESTP course: ESA 2010 National Accounts

Results of AEG e-Discussion On RETAINED EARNINGS OF MUTUAL FUNDS, INSURANCE CORPORATIONS AND PENSION FUNDS UN STATISTICS DIVISION Economic Statistics.

Distributive transactions

Item 14b: Insurance and Pension Funds

FINANCIAL CORPORATIONS SECTOR

Institutional sector accounts

Distributive transactions

Insurance and pensions funds

United Nations Statistics Division

Adriaan Bloem, IMF John Ruser, BEA Co-chairs

The Practice and Questions of FOF (Non-financial) Compilation of NBS

Fees on Securities Lending and Reversible Gold Transactions

Asset-based Reallocations

Generation and allocation of income accounts

Financial Sector (continued)

Insurance and pensions funds

ESTP course on National Accounts Insurance and pension funds

Item 12: Property Income ESTP course on National Accounts ESA 2010

Pensions Chapter 11.18: Transfer of pension obligations

ESTP Course Balance of Payments – Introductory course Paris, May 2014 Primary Income.

Presentation transcript:

Retained earnings of Mutual funds SNA review issue 42

UN web Problem statement In the 1993 SNA retained earnings of an entity are generally treated as the income and saving of the entity, rather than the owner. However, exceptions are made for life insurance companies, pension funds and foreign direct investment companies, where there is an imputed flow to the policyholders, beneficiaries, and owners, with an equal financial account flow.

UN Problem statement (contd) The ESA 95 introduces an imputed transaction for the retained earnings of the mutual funds where income is attributed to the investors and then reinvested in the fund. That treatment brings about consistency with the treatment of life insurance and pension funds which are other types of collective investment schemes. Other symmetries of the treatment of retained earning have been suggested, either to expand or to reduce the imputations.

SNA93 and BPM5 treatment Interest on loans, deposits, bonds –Accrued, as if paid out and reinvested Insurance and Pension funds –Property income attributed to policy-holders –Returned as premium/contribution supplements if social insurance –Or directly net equity in financial account But nothing about Mutual funds

IMF five options 1.The status quo as in SNA93 and BPM5 2.The ESA95 approach –Distribute as D41 Interest, D42 Dividends 3.The modified ESA approach –Distribute as D46 Retained earnings of mutual funds.

IMF five options 4.Treat the retained earnings of pension funds in the same manner as mutual funds in SNA93 and BPM5, but leave technical reserves of life insurance as they are in SNA93. 5.Treat the retained earnings of life insurance and pension funds in the same manner as mutual funds in SNA93.

European proposal Transactions Distribute Investment income of mutual funds to owners of shares as D46 Property income attributed to holders of investment funds. Reinvested in financial accounts as F.5 Equity

European proposal (contd) Definition of investment funds and sectoring Collective investment undertakings investing in financial and non-financial assets to the extent that their sole objective is the investment of capital being raised from the public. Pension funds are excluded and also investment funds issuing highly liquid liabilities of a monetary nature. The latter institutions, known as money market funds are classified in Other depository corporations (S.122)

Justifications Align treatment with other forms of collective investment. Best estimates of household income and saving Simplest solution

Questions to AEG 1.Does the AEG agree on the principle of recording retained earnings of investment funds in a similar way to income attributed to policy holders? 2.Agree to record as new D46 3.Agree definition of investment funds 4.Agree to separately identify funds issuing monetary liabilities within S.122 ?