1. Distributive transactions
THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION

2. Distributive transactions (D)
D.1 Compensation of employees;
D.2 Taxes on production and imports;
D.3 Subsidies;
D.4 Property income;
D.5 Current taxes on income, wealth, etc.;
D.6 Social contributions and benefits;
D.7 Other current transfers:
D.9 Capital transfers.

3. Compensation of employees (D.1)
Wages and salaries (D.11): - in cash - in kind

4. Compensation of employees (D.1)
Wages and salaries in cash:
All payments in cash to employees
Excluding: reimbursements for expenses by employees necessary for work e.g. travel (but not to and from work) tools, clothing
these are part of intermediate consumption

5. Compensation of employees (D.1)
Wages and salaries in kind: - services of vehicles or other durables for personal use - housing services - transportation to/from work - goods and services from the employer’s own production (free travel, coal, etc.) - sports and recreation facilities - free meals and drinks

6. Compensation of employees (D.1)
Employers social contributions (D.12):
Employers’ actual social contributions (D.121)
Employers imputed social contributions (D.122)

7. Compensation of employees (D.1)
Employers’ actual social contributions (D.121)
Contributions payable by employers to third parties which are responsible for the administration of social security schemes e.g. social security funds, insurance funds.

8. Compensation of employees (D.1)
Employers imputed social contributions (D.122)
When employers provide social benefits themselves without third party interference
Estimation: - by looking at comparable schemes by other enterprises with actual contributions - by taking the actual payments
Main example: government pensions in many countries

9. Taxes on production and imports (D.2)
Compulsory, unrequited payments, in cash or in kind, which are levied by general government, or by the institutions of the European Union, in respect of the production and importation of goods and services, the employment of labour, the ownership or use of land, buildings or other assets used in production.
(a) taxes on products (D.21);
(b) other taxes on production (D.29).

10. Subsidies (D.3)
Unrequited payments which general government or the institutions of the European Union make to resident
producers.
(a) subsidies on products (D.31):
(b) other subsidies on production (D.39).

11. Property income (D.4)
Property income (D.4) accrues when the owners of financial assets and natural resources put them at the disposal of other institutional units. Property income is the sum of investment income and rent.
(a) interest (D.41);
(b) distributed income of corporations (D.42):
(1) dividends (D.421);
(2) withdrawals from income of quasi-corporations (D.422);
(c) reinvested earnings on foreign direct investment (D.43);
(d) other investment income (D.44)
(e) Rents (D.45)

12. Property income (D.4) Accrual recording of interest
Accrues continuously over period that liability exists
Amount of interest accrued in a period may differ from amount paid
Accrued, but unpaid interest is added to the outstanding principal of underlying instrument
Interest should be accrued
From the debtor’s standpoint, according to rate determined when contract is established, except for index-linked securities (including floating rate notes)
The same accrual recording method should be used for all interest-bearing instruments

13. Property income (D.4) Accrual recording of interest-example
You have €100 in a saving account (F.2 asset) . The interest
rate is 10%, added to your account at the end of each year
After 6 months how much interest have you ‘earned’ (i.e. accrued)?
How much interest have you been paid (i.e. cash)?
ESA2010 records the interest as it accrues, rather than the cash as it is paid
Show as a D.41 receivable, balanced as a reinvestment in the instrument (here add to your F.2 asset, as if a further deposit)

14. Current taxes on income and wealth (D.5)
taxes on income (D.51);
- taxes on individual or household income,
examples of which are income from employment,
property, entrepreneurship, pensions,
etc.,;
- taxes on the income or profits of corporations;
- taxes on holding gains;
- taxes on winnings from lotteries or gambling etc.

15. Current taxes on income and wealth (D.5)
(b) other current taxes (D.59).
- current taxes on capital which consist of taxes payable on the ownership or use of land or buildings by owners;
- poll taxes, levied per adult or per household;
- expenditure taxes, payable on the total expenditures of persons or households;
- payments by households for licences to own or use for non-business purposes vehicles etc.

16. Current taxes on income and wealth (D.5)
Accrual compilation of taxes and social contributions (ESA 2010, 4.82)
Taxes and social contributions should be recorded net of those unlikely to be collected
Taxes recorded in the accounts are derived from two sources:
Cash receipts;
Amounts evidenced by assessments and declarations.

17. Current taxes on income and wealth (D.5)
Accrual compilation of taxes and social contributions (ESA 2010, 4.82)
a) Cash receipts
Amount is time adjusted
e.g. tax liability raised in one month is paid the next,
then simply lag the cash series to move it back one month

18. Current taxes on income and wealth (D.5)
Accrual compilation of taxes and social contributions (ESA 2010, 4.82)
b) Amounts assessed and declared
Use a coefficient (e.g. expect 95% will be collected)
adjust tax revenue
adjust within D.995 as capital transfer
If €100 assessed as due, record € 95 as tax record €100 as tax revenue and -€5 in D.995

19. Social contributions and benefits (D.6)
Net social contributions (D.61)
Actual or imputed contributions made by households to social insurance schemes to make provision for social benefits to be paid.
(b) Social benefits other than social transfers in kind (D.62)
(c) Social transfers in kind (D.63)
Individual goods and services provided for free or at prices that are not economically significant to individual households by government units and NPISHs.

20. Other current transfers (D.7)
Net non-life insurance premiums (D.71)
Non-life insurance claims (D.72)
Current transfers within general government (D.73)
Current international cooperation (D.74)
Miscellaneous current transfers (D.75)
VAT- and GNI-based EU own resources (D.76)

21. Capital transfers (D.9) Capital taxes (D.91) Investment grants (D.92)
- E.g. inheritance taxes, death duties and taxes on gifts between persons etc.
Investment grants (D.92)
- Transfers to finance all or part of the costs of acquiring fixed assets.
Other capital transfers (D.73)
- Capital transfers other than investment grants and capital taxes, e.g the counterpart transaction of cancellation of debts by agreement between institutional units

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