1. SNA research agenda 11th meeting of the Advisory Expert Group
on national accounts
5-7 December 2017, New York
Herman Smith
UNSD

2. Outline of Presentation
Introduction
Governance
Mechanisms for resolving research issues
Research agenda website
Issues for consideration

3. Governance Arrangements
UNSC – provides the mandate of the ISWGNA, endorses its works programme and monitors its work progress
ISWGNA - carries out the mandate and reports progress on its programme of work to the UNSC
Engages technical expert groups, city groups or other expert groups to carry out the work programme.
Separate project management frameworks may be developed for large projects (eg. revision of SNA)
ISWGNA: Management Group - ensures appropriate outputs and inputs for the work of the ISWGNA
Managers also act within their own organizations to further the agreed goals and objectives of the ISWGNA.

4. Governance Arrangements
ISWGNA: National Accountants – sponsors and facilitates the technical work of the work programme of the ISWGNA
AEG - assists the ISWGNA in carrying out its work programme, resolves issues on the research agenda of the SNA and reviews documents and tools for the SNA implementation programme
18 members from national, regional and international statistical organizations (plus representatives from the 5 international organizations) with all regions of world represented
Members invited with views toward particular areas of expertise
Members act on personal basis rather than as representatives of their organization
AEG and ISWGNA members are entitled to vote on issues where consensus cannot be found
Chair of ISWGNA also serves as chair of AEG

5. Governance Arrangements
Projects, Technical Expert Groups, City Groups – may be convened to advance research on particular normative and methodological matters
Limited life spans and with focus on particular issues
Fall within scope of national accounts, but have their own mandates and governance structures
ISWGNA will coordinate with these the groups to take account of their work in the work programme of the ISWGNA
For large projects (eg. the revision of the SNA) it may be necessary to develop separate project management frameworks
Secretariat - UNSD serves as the main source of logistical and administrative support to the work programme of the ISWGNA.

6. Governance Structure Report to Liaise with a Includes, for example,
academia and line
ministries.
b Includes specific
projects needing separate
project management
frameworks, (i.e. update
of the 1993 SNA)
c Includes expert groups to
advance specific research
on issues on the SNA
research agenda
d ISWGNA liaises and
consults with these groups
to coordinate outputs.

7. Mechanisms for resolving issues
Proposals for task forces or expert groups to do research on specific topics should be submitted to the ISWGNA
Ensures worldwide representation in the deliberation of research agenda issues
Ensures proper implementation of the results in international standards or handbooks
ISWGNA may also convene technical expert groups to advance research on particular normative and methodological matters.
Groups will consist of relevant experts in national accounts, with a balanced regional representation.
Groups will have limited life spans and focus on particular issues.
Terms of reference for the tasks related to the subject will be formulated with every group

8. Mechanisms for resolving issues
Existing city groups, projects, and other technical expert groups
Work may fall within scope of national accounts, but groups have their own mandates and governance structures
ISWGNA will coordinate with these groups to take account of their work in the work programme of the ISWGNA
For large projects (eg. the revision of the SNA) it may be necessary to develop separate project management frameworks
ISWGNA assesses results per update procedures for the SNA established by the UNSC (1999)
If changes are necessary ISWGNA presents changes to UNSC for adoption

9. Updating procedure for the SNA

10. Research on the SNA
Several research issues emerged during the update of the 1993 SNA
Listed in Annex 4 of 2008 SNA
Decision to concentrate on implementation issues rather than pursuing the Annex 4 issues.
Three questions used to assess the priority to be given to a research item
How urgent and important is the topic to ensure that the SNA continues to be relevant to the users?
How widespread are the consequences of change and how complicated will implementation be?
Is the topic completely new or has much of the preparation for considering the item been completed?

11. Research agenda website
Facilitates the sharing of information about the issues under discussion, progress with such discussions and the long term research agenda.
Comprised of five parts:
Research issues under discussion (eg. Statistical unit, Accounting for pension)
Annex 4 List of research issues
Consultations
AEG and task force meetings
SNA update procedure

12. Issues list Globalization Digital economy
The treatment of statistical units in supply and use tables and institutional sector accounts
Financial services – Islamic finance
Financial Intermediation Services Indirectly Measured
Accounting for pensions: Recognition of liabilities
Accounting for pensions: Recording of flows between pension fund and sponsor
Accounting for pensions: Table on household retirement resources
Distributional aspects
Informal sector
Treatment of the output of international financial institutions
Capital income of insurer’s own funds
The valuation of natural resources
Measuring resource extraction industries
Capital services of assets not contributing to production

13. Issues for consideration
AEG is requested to:
Take note of the established procedures for resolving issues and updating the SNA
Express views on the priorities for resolving issues;
Express views on the updating of the issues list on the research agenda website

14. Thank you

15. Annex 4: Research Agenda
The table below is based on the research agenda described in Annex 4 of the 2008 SNA. The list of issues is grouped broadly by subject area but it should be recognized at the outset that each is likely to have consequences beyond the subject heading. 
A- Basic Accounting rules
The relationship of SNA and IASB
Consolidation of enterprise groups
Trusts
Final consumption of corporations
Measuring the output of government services
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 organizations in the SNA

16. Annex 4: Research Agenda
B- The concept of income
Clarification of the income concept in the SNA
GDP at basic prices
The role of taxes in the SNA
Life insurance
Reinvested earnings
Accruing interest in the SNA
Calculation of FISIM
High inflation
The measurement of neutral and real holding gains and losses
Income arising from assets
Income from activities undertaken on an informal basis

17. Annex 4: Research Agenda
C- Issues involving financial instruments
Issues arising from a financial crisis
Recognition of social security entitlements as liabilities
Wider use of fair value for loans
Provisions
Debt concessionality
Equity valuation and its implications
Reverse transactions

18. D - Issues involving non-financial assets
Annex 4: Research Agenda
D - Issues involving non-financial assets
Tradable emission permits
Leases to use or exploit natural resources
Broadening the fixed asset boundary to include other intellectual property assets
Costs of ownership transfer of valuables and non-produced assets
Distinction between current maintenance and capital repairs
Treatment of Private-Public Partnerships
Transfer of ownership of an asset during its life