1. Item III.5: Improved land recognised as separate asset
Training on general introduction to ESA 2010
Luxembourg, December Eurostat, JMO M4

2. Land improvements - content
Definition, characteristics, registration
Change in ESA2010
Separation land and land improvements
Borderline cases
Exercises

3. 1.Definition, characteristics, registration (1)
Definition land improvements
Result of actions that lead to major improvements in the quantity, quality or productivity of land, or prevent its deterioration (ESA Annex 7.1)
Examples
Land clearance
Land contouring
Creation of wells and watering holes

4. 1.Definition, characteristics, registration (2)
Produced non-financial fixed asset (whereas land is non-produced)
Subject to depreciation
Cost of ownership transfers to be included
Land improvements should be integral to the land

5. 1.Definition, characteristics, registration (3)
Stocks: on balance sheet as AN.1123
Flows (1): transactions as P.51g gross fixed capital formation, and as P.51c consumption of fixed capital
Flows (2): several types of other volume changes and revaluations (K1, K2, etc.)

6. 2. Change in ESA 2010
ESA mismatch between stocks and transactions:
Transaction in land improvement: gross fixed capital formation
No corresponding stocks (to be included in AN.2111 Land)
ESA removal of mismatch:
Corresponding stocks to be registered as AN.1123

7. 3. Separation land and land improvements
Land and land improvements should be separated
To prevent before mentioned mismatch
To enhance (international) comparability
If impossible: register composite asset in category with highest value

8. 4.Borderline between land improve-ments and other structures (1)
Site clearance in view of preparing it for construction  no land improvements, but structures (AN.111, 1121, 1122)
Seawalls, dykes, dams in the vicinity of land
Not integral to the land
Affect land of several owners
Often constructed by government

9. 4.Borderline between land improve-ments and other structures (2)
 No land improvements, but other structures (AN.1122)
Dam integral to land with purpose to produce electricity  no land improvements, but other structures (AN.1122)

10. 5. Exercises (1) Exercises show
Registration flows and stocks land improvements in mutual coherence (exercise 1, 2, 3)
Registration of borderline case (exercise 2)
Registration in case land and land improvements cannot be separated (exercise 3)