1. National Accounts Section United Nations Statistics Division
The 2008 SNA research and
implementation programme
14 December 2011
Herman Smith
National Accounts Section
United Nations Statistics Division

2. Outline of presentation
Changes from the 1993 SNA
2008 SNA research issues
2008 SNA implementation 2

3. Changes from 1993 SNA Annex 3 of 2008 SNA (pages 581-602)
grouped changes as:
Further specifications of statistical units and revisions in institutional sectoring
Further specifications of scope of transactions including the production boundary
Extension and further specification of concept of assets, capital formation and consumption of fixed capital (CFC)
Further refinement of treatment and definition of financial instruments and assets
Further specifications of the scope of transactions concerning government and public sector
Harmonization between concepts and classifications of SNA and BPM6 3

4. 2008 SNA Changes affecting GDP4

5. Capitalization of R&D Impacts Capitalization of R&D
The activity of R&D is no longer treated as ancillary
Expenditure on R&D is treated as capital formation (except those made available free)
Impacts
Move R&D from intermediate consumption to gross capital formation. This changes GDP by the same amount.
Require adding consumption of R&D fixed capital stock to non- market output: increase GDP 5 5

6. Output for own final use by households and corporations is valued with a return to capital
Impacts
Output valued by cost increases by an imputed value of return to capital (Need total stock of assets for the calculation of return to capital)
GDP increases by the same amount of imputed value
Valuation of market producers only
Not applicable to non-market producers like government and NPISH 6 6

7. Capitalization of weapon systems
Military Expenditure
Fixed assets (Transports and weapons delivery systems, inter- continental missiles, etc.)
Change in inventories (bullets, bombs, etc.)
Impacts
Move expenditure on military equipments from final consumption to gross capital formation: This does not change GDP
Require adding consumption of military fixed capital stock to government output: increase GDP 7 7

8. New way of measurement of FISIM
Measurement relies only on interest receivable on loans and interest payable on deposits, ignoring all other investment incomes
Loans made from own funds are also treated as generating output
FISIM to be allocated between users
Impacts
Depending on the structure of financial instruments, output of FISIM could increase
For example, loans made from own funds will increase FISIM
Money lenders output recognized
FISIM allocated to final demand and exports will increase GDP 8 8

9. Unfunded pension funds
Impacts
Change household consumption
Change GDP
Imputation
There is a cost to administering pension schemes, including non-autonomous and unfunded ones
Output to be determined using sum of costs, consumed by employees holding the pension entitlements 9 9

10. Treatment of ESOs Impacts
Treatment of employee stock options as compensation of employees (in kind)
It is equal to the difference between the market price and strike price at the vesting date (only when positive)
It should be spread between the grant date and the vesting date
Treatment has been approved by International Accounting Standards (IAS) and the US Financial Accounting Standards Board (FASB)
Impacts
Increase compensation of employees of corporations
Reduce operating surplus of corporations
Do not change GDP but change household income 10 10

11. 2008 SNA Research agenda 11

12. 2008 SNA Research Agenda Annex 4 of 2008 SNA
Basic accounting rules:
Financial instruments and non-financial assets:
The concept of income
ISWGNA website (
Reflects current issues under discussion and new items and recommendations

13. Approach to SNA Research Agenda
How to prioritise research topic?
Urgency and importance in ensuring relevance of SNA to users?
Consequences of change and difficulty of implementation?
Completely new? Preparation already done?
Selection of topic
Widespread consultation
Inclusion of compilers and users

14. Approach to SNA Research Agenda
Coordination
Auspices of ISWGNA
In consultation with the AEG
Task forces/expert groups
Worldwide representation in deliberations
Update procedure

15. Current issues under discussion
Emission Permits under Cap and Trade Schemes
Difference in the time when the permit is issued and when it is surrendered
Difference in the initial value and market value
The treatment of FISIM
Risk management
Liquidity transformation
Consistency of FISIM in international trade
Implications for price and volume measures
Globalisation issues
Goods for processing and merchanting
Global production

16. implementation programme
2008 SNA
implementation programme 16

17. Implementation programme
UNSC in Feb 2010 supported the implementation programme and encouraged countries to develop their own programmes of implementation
The Implementation Programme for the SNA and supporting statistics represents a global statistical initiative

18. Objective of the Global Statistical Initiative
To assist countries in developing the statistical and institutional capacity to: (a) Make the conceptual change over from the 1993 SNA to the 2008 SNA (b) Improve the scope, detail and quality of the national accounts and supporting economic statistics.

19. Principles of the global initiative
The efficiency and sustainability of the initiative rest on the agreed principles of the implementation strategy:
(a) strategic planning
(b) coordination, monitoring and reporting
(c) improving statistical systems

20. Elements to operationalise the initiative
(a) Use National Strategies for the Development of Statistics (NSDS) as the strategic planning framework (b) The programme information structure taking account of the statistical production process, and the scope and compliance for the national accounts and supporting economic statistics (c) The modalities of statistical capacity building include training and technical cooperation, publication of manuals and handbooks, research and advocacy (d) The stages of implementation leading to the change over to the 2008 SNA.

21. Why a strategic approach?
To align the 2008 SNA country programme with national policy priorities and regional requirements
Consultative process is system wide
Resources are limited
Piece meal approach is not cost effective
Donor coordination is critical

22. The programme information structure
To facilitate the coordination, monitoring and reporting on the SNA implementation in the multi- stakeholder environment.
Frameworks
Minimum Required Data Set (MRDS) based on UN-NAQ
IMF GDDS and SDDS
Report on the
statistical process
data quality

23. Statistical capacity building
UNSD and other members of the ISWGNA initiated dialogue with the regional commissions and other development partners to consider programmes for four modalities
(a) training and technical cooperation,
(b) manuals and handbooks,
(c) applied research and
d) advocacy.
The initial focus on these four modalities will be applied flexibly

24. Implementation stages
Three stages
Review of strategic framework and detailing of national and regional implementation programmes
Adaptation of classification frameworks, business registers and frames, surveys, administrative data sources and information technology infrastructure
Application of adapted frameworks and source data, backcasting and changeover to 2008 SNA
Each country will determine the duration of the various stages. However, it is expected that from onwards, many Member States will change over to the 2008 SNA

25. Regional and national implementation programmes
UNSD conduct series of seminars jointly with RC and countries in the respective regions
To align regional and global implementation programmes
To provide countries with tools to develop national implementation programmes for the 2008 SNA and supporting statistics

26. Thank You