Renata Bielak Central Statistical Office of Poland Consolidation in the Polish Financial Accounts Consolidation in the Polish Financial Accounts OECD WORKING PARTY ON FINANCIAL STATISTICS PARIS, OCTOBER 2003

Renata Bielak Central Statistical Office of Poland Overview: General rules Polish experiences Conclusions and Future Consolidation in the Polish Financial Accounts

Renata Bielak Central Statistical Office of Poland General Rules what does consolidation mean? elimination of: transactions occurring between units classified within the same sector/sub-sector reciprocal assets and liabilities

Renata Bielak Central Statistical Office of Poland two versions of financial accounts FINANCIAL ACCOUNTS Non-consolidated (ESA’95) Consolidated (Official Transmission Program) General Rules

Renata Bielak Central Statistical Office of Poland General Rules two-level consolidation process sector level  financial flows between units inside the sector are eliminated sub-sector level  financial flows between units inside the sub ‑ sector are eliminated

Renata Bielak Central Statistical Office of Poland conclusions General Rules For financial assets/liabilities and financial transactions:  sub-sectors (after consolidation) ≠ consolidated sector (except from the case of no flows between sub-sectors) BUT For net lending/net borrowing:  sub-sectors (after consolidation)  consolidated sector

Renata Bielak Central Statistical Office of Poland Overview: General rules Polish experiences Conclusions and Future Consolidation in the Polish Financial Accounts

Renata Bielak Central Statistical Office of Poland Polish Experiences producer of financial accounts Central Statistical Office National Accounts and Finance Division Financial Accounts Section (9 persons involved in compiling process)

Renata Bielak Central Statistical Office of Poland availability of financial accounts data Polish Experiences Financial accounts for  consolidated data only Financial accounts for  non-consolidated data only Financial accounts for 2000 (and further years)  consolidated and non-consolidated data

Renata Bielak Central Statistical Office of Poland Polish Experiences consolidation by sectors Non-financial corporations (S.11)  sub-sectors are not distinguished  lack of “from whom to whom” information  strong influence on non-consolidated data  estimations used to consolidation Financial corporations (S.12)  good quality reporting from sub-sectors S.122 and S.125  lack of information from sub-sectors S.123 and S.124 General Government (S.13)  new source of information with counterpart data starting from 2001 Households  Non-profit institutions serving households (S.14 + S.15)  data based on other sectors’ reporting  small impact on non-consolidated data Rest of the world (S.2)  sub-sectors are not distinguished  no effect of consolidation

Renata Bielak Central Statistical Office of Poland Polish Experiences estimations used to consolidation process (example)  claims on deliveries and services (S.11) = 1000  liabilities on deliveries and services and trade credits liabilities: S.11 = 450 S.12 = 180 S.13 = 110 S.2 = 40  shares of above liabilities in S.11: S.11 = 390 S.12 = 150 S.13 = 90 S.2 = 30  660  = 340  90% x 340 = 306

Renata Bielak Central Statistical Office of Poland Polish Experiences Balance sheet for financial assets (10 6 PLN) S.11S.12S.13S.14+S.15 Financial assets non-consolidated , , , ,3 consolidated , , , ,1 Monetary gold and SDRs non-consolidated0,03 811,90,0 consolidated0,03 811,90,0 Currency and deposits non-consolidated55 232, , , ,3 consolidated55 232, , , ,3 Securities other than shares non-consolidated14 200, ,99 521,33 443,9 consolidated7 625, ,59 521,33 299,7 Loans non-consolidated26 818, , ,70,0 consolidated247, ,53 581,20,0 Shares and other equity non-consolidated , , , ,3 consolidated6 346, , , ,3 Insurance technical reserves non-consolidated3 103,4172,7113, ,2 consolidated3 103,40,0113, ,2 Other accounts receivable non-consolidated , , , ,6 consolidated68 293, , , ,6

Renata Bielak Central Statistical Office of Poland Polish Experiences Balance sheet for financial liabilities – 2000 (10 6 PLN) S.11S.12S.13S.14+S.15 Liabilities non-consolidated , , , ,2 consolidated , , , ,0 Currency and deposits non-consolidated0, ,10,0 consolidated0, ,90,0 Securities other than shares non-consolidated27 089, , ,0144,2 consolidated20 513,54 738, ,00,0 Loans non-consolidated , , , ,6 consolidated , , , ,6 Shares and other equity non-consolidated , , ,00,0 consolidated , ,625,20,0 Insurance technical reserves non-consolidated0, ,80,0 consolidated0, ,80,0 Other accounts payable non-consolidated , , ,68 305,4 consolidated , , ,08 305,4

Renata Bielak Central Statistical Office of Poland Polish Experiences Changes in financial assets – 2000 (10 6 PLN) S.11S.12S.13S.14+S.15 Net acquisition of financial assets non-consolidated74 760, , , ,8 consolidated26 091, , , ,2 Monetary gold and SDRs non-consolidated0,038,70,0 consolidated0,038,70,0 Currency and deposits non-consolidated-1 423, ,81 103, ,4 consolidated-1 423, ,31 103, ,4 Securities other than shares non-consolidated943, ,14 250, ,1 consolidated-503,48 597,6-115,0519,3 Loans non-consolidated5 729, ,82 872,80,0 consolidated-202, ,7-22,30,0 Shares and other equity non-consolidated5 297, , , ,0 consolidated-101, ,05 489, ,0 Insurance technical reserves non-consolidated576,7-37,0-9,15 095,2 consolidated576,70,0-9,15 095,2 Other accounts receivable non-consolidated63 636, , , ,3 consolidated27 746, , , ,3

Renata Bielak Central Statistical Office of Poland Polish Experiences Changes in financial liabilities – 2000 (10 6 PLN) S.11S.12S.13S.14+S.15 Net incurrence of liabilities non-consolidated , , ,78 438,0 consolidated65 790, , , ,4 Currency and deposits non-consolidated0, ,30,0 consolidated0, ,10,0 Securities other than shares non-consolidated6 788, , , ,4 consolidated5 341,73 521,78 584,20,0 Loans non-consolidated28 764,22 318,4154, ,6 consolidated22 832,9-323, , ,6 Shares and other equity non-consolidated12 197, ,67 401,10,0 consolidated6 798,11 376,57,70,0 Insurance technical reserves non-consolidated0,05 625,80,0 consolidated0,05 662,80,0 Other accounts payable non-consolidated78 103,5-366, ,5274,8 consolidated30 817, , ,9274,8 Net lending/net borrowing non-consolidated ,43 971, , ,5 consolidated ,43 971, , ,5

Renata Bielak Central Statistical Office of Poland Overview: General rules Polish experiences Conclusions and Future Consolidation in the Polish Financial Accounts

Renata Bielak Central Statistical Office of Poland Conclusions and Future Consistency with consolidation requirements Improvement of data quality and consolidation methods  Estimations should be limited  Non-financial corporations sector needs a lot of attention because of significant influence on consolidation  Regular work between CSO, Ministry of Finance and NBP is needed Adjustment to „t+9 delay” requirement

Renata Bielak Central Statistical Office of Poland THANK YOU Consolidation in the Polish Financial Accounts