1. Inconsistencies observed in the recording of monetary gold
Item 3a Eurostat Task Force on Annual Financial Accounts Frankfurt, 4 March 2016

2. Purpose of this document
This document has mainly practical orientation and not duplicate essentially the issues of discussion on the WG FA meetings of ECB.
Eurostat has observed inconsistencies in the recording of MG flows in the transmissions of AFA (table 6 ESA 2010 ).
That is why, the aim is in the near future to achieve a harmonised presentation of MG transactions in AFA across countries.
TF AFA

3. I. Recording of transactions (1)
Transactions in MG held as reserve assets should be recorded in the FA of both the Total economy and of RoW as increases or decreases in assets.
Currently countries use two ways for the recording of MG transactions. They are shortly named below:
Alternative A and Alternative B.

4. Recording of transactions (1.1)
Alternative A.
Identical recording in S.1 assets and S.2 liabilities
S.2 flow for MG should be with the same sign to that recorded in S.1 or (+/+ F11) and (- /- F11)

5. Recording of transactions (1.2)
Alternative B. Identical recording in S.1 assets and S.2 assets
S.2 flow for MG should be with opposite sign to that recorded in S.1 or (- /+ F11) and (+ /- F11).
Alternative B may be supported by the fact that the flow represents a change in assets of S.2.

6. Recording of transactions (1.3)
Alternative A has been used by BG, DK, FR, EL, IE, LV, SE, SI, SK, and NO.
Alternative B has been used by AT, BE, CZ, DE, IT, LT, NL, PL, RO, and CH. In other countries it is not clear which of the alternatives has been used because of zero values and 'not available'.
Recommendation:
Eurostat requests that countries follow Alternative B, which seems more in line with ESA 2010 accounting treatment. It is also used in the QFA of the euro area compiled by the ECB.

7. II. Observed inconsistencies (1)
Inconsistencies observed in the recording of MG by countries in non-consolidated table 620 for transactions are shown in the table below.

8. Table: Observed inconsistencies in the reporting of MG by countries (table 620, millions of national currency)

9. Observed inconsistencies (2.3)
The TF-AFA Members are invited to:
Take note of the recommendation on recording of transactions in MG.
amend the recording of MG transactions in their next AFA transmission.