1. Implementation of SNA2008 in China
Wang Yixuan
11 Dec, 2013, Paris

2. Outlines
Strategic Plan of CSNA 2014
Revision Targets
FISIM
R&D

3. Strategic Plan—CSNA 2014 Revision of CSNA 2002
CSNA 2002: Implementation of SNA 1993
CSNA 2014: Implementation of SNA 2008
- Follow up the primary concept, principle, classification and methodology of SNA2008
- Combine with major improvements in SNA2008 such as Intellectual property products
- Proper improvement according to China’s situation in statistics and national accounts

4. Revision Targets Introduction of Concepts
Intellectual Property Products
Actual Final Consumption
Economic Ownership
Employee Stock Option
Basic Price

5. Revision Targets Elaborate Classifications and Categories
Industrial classification
Institutional Sectors
Fixed Assets Categories

6. Revision Targets About GDP
1）R&D Expenditure, dealt with as capital formation rather than intermediate input
2）housing services by owner occupiers, from cost approach to rent approach
3）FISIM, replacement of reference rate (6.163,6.169)
4）Actual final consumption；
5）NPISH category

7. Revision Targets About Input-Output
Establishment compilation method of SUT

8. Revision Targets About Balance Sheet
Revaluation of partial fixed assets by PIM

9. Revision Targets
Entire National Accounts following SNA 2008

10. FISIM Methodological improvement in 2008
Before:
FISIM = interest receivable – interest payable
+ other property income receivable
(bonus, property income belong to policy-holders/applicants, etc.)
Exclude: property income from self-owned capital investment by financial intermediary institutions
After
+ reference rate * (balance of deposit - balance of loan)
Include: all lending and deposit owned by financial intermediary institutions

11. FISIM - Reference Rate Reference rate = (deposit rate + lending rate
– risk premium rate)/2
Of which:
risk premium rate = ratio of non-performing loan
+ ratio of non-performing loan * lending rate

12. FISIM - Reference Rate Issue:
According to SNA2008：The reference rate to be used in the calculation of SNA interest is a rate between bank interest rates on deposits and loans. (SNA, 6.166)
When ratio of non-performing is higher enough, reference rate may be lower than deposit rate. That should be unreasonable according to SNA.
Solution: let the lowst reference rate = deposit rate

13. FISIM - Output and VA
Value added of banking industry, which is calculated by income approach, is not reflected by approach change of FISIM estimation
Issue1: How to know if the calculation of FISIM is appropriate? By VA ratio?
Issue 2: How does operation surplus reflect change of FISIM?

14. R&D -data source R&D survey and annual investigation Expenses of R&D
- internal expenses which used for internal R&D (used in value added estimation)
- external expenses which used for external R&D (delegation to or cooperation with outer institutions)
Internal expenses
- current expenses
- capital expenses

15. R&D - methods Estimation scope
Treat R&D expenses as fixed capital formation
Overestimation of value added?
Estimation object
Institutions who carry out R&D, i.e. treat all R&D as own account production
Evaluation method
R&D expenses and depreciation of fixed capital used in R&D
Overestimation？
Depreciate function
linear（10% per year-service life=10 years）？