1. Capital account
THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION

2. Capital account Uses Resources Saving Capital transfers received
Capital transfers paid
Capital formation
Net lending or financial surplus (+) / net borrowing or financial deficit (-)

3. Gross capital formation (P.5)
Gross capital formation consists of:
(a) gross fixed capital formation (P.51g):
(1) consumption of fixed capital (P.51c);
(2) net fixed capital formation (P.51n);
(b) changes in inventories (P.52);
(c) acquisitions minus disposals of valuables (P.53).

4. Gross fixed capital formation(P.51g)
Acquisition less disposal of fixed assets
Fixed assets: used repeatedly or continuously in the production process for more than one year
Special attention:
Delineation with intermediate consumption

5. Gross fixed capital formation(P.51g)
Acquisition less disposals of fixed assets
Included:
tangible
intangible
Excluded:
financial assets
exceptional losses

6. Gross fixed capital formation(P.51g)
Delineation with intermediate consumption
purchase of small tools for production purposes;
small repairs;
the acquisition of fixed assets to be used under an operational leasing contract

7. Consumption of fixed capital
Consumption of fixed capital (ESA ) is defined as the decline in value of fixed assets owned, as a result of normal wear and tear and obsolescence.
The estimate of decline in value includes a provision for losses of fixed assets as a result of accidental damage which can be insured against.
Consumption of fixed capital covers anticipated terminal costs, such as the decommissioning costs of nuclear power stations or oil rigs or the cleanup costs of landfill sites.

8. Thank you for your attention
CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION