1. The SNA Long-Term Research Agenda AEG Meeting 19-23 March 2007

2. SNA Long-Term Research Agenda Proposals for research topics:UNSD Research issues website http://unstats.un.org/unsd/sna1993/research/rIssueList.asp; ISWGNA and AEG decisions; other proposals; http://unstats.un.org/unsd/sna1993/research/rIssueList.asp Consolidated list of topics (20 +2 proposals); The authors of proposals were invited to prepare short write-ups; SNA list was consulted with BMP6 research agenda

3. List of topics (1) Clarification of income concept in the SNA (ABS) –Broader measure of income would improve links to business accounting, economics and other indicators of the accounts; –Further research: what income concept should be measured and how this should be introduced in the accounts. (2) Final consumption of corporations (Editor)

4. List of topics (3) The relation of SNA and IASB (UNSD) –ISWGNA should follow the development of IAS and provide intermittent reports; –IAS 38 Intangible assets – advertising and promotional costs; –IAS 41 Recognition and measurement of biological assets and agricultural produce. (4) Distinction between current maintenance and capital repairs (Editor)

5. List of topics (5) High inflation (BEA) –Interest under high inflation was included as an issue of the SNA update, but consensus could not be reached; –If efforts are made a satisfactory set of recommendations can be achieved. (6) Accrual of interest in the SNA – debtor or creditor approach (ABS) –EDG and ISWGNA decided to keep the debtor approach recommended by the SNA; –Further research: reconsider the debtor/creditor debate, especially in view of some update issues (cons. loans, non-performing loans, interest-linked debt securities).

6. List of topics (7) Equity valuation (Statistics Canada) –Recommendations made by the OECD Task Force on the valuation and measurement of equity; –Further research: valuation of equity components and its implications on the sequence of accounts and measurement of income –Selected issues: valuation of corporate and other equity subcomponents; residual corporate net worth; equity value and income flows; equity in the sequence of accounts; investment funds.

7. List of topics (8) Provisions (OECD) –SNA Rev.1 includes only some provisions, it also treats them differently; –Exclusion of provisions leads to biased measures of main balancing items and possible inconsistency with business accounting and IPSASB recommendations; –Further research: to incorporate a global recommendation on Provisions in the SNA; explore flexible recording of stocks and flows; consolidation

8. List of topics (9) Broadening the fixed assets boundary (OECD) Innovation ‒SNA Rev.1 will include R&D (FM) in assets boundary, but part of innovation will not be covered; ‒Further research: business accounting recommendations, scope, how to measure FCF, CFC and capital services Marketing assets ‒Large investments; characteristics of goodwill; R&D; ‒Further research: business accounting recommendations, investment vs. IC, how to measure CFC and capital services Human capital ‒Some forms of knowledge contribute to future production; ‒Further research: should any acquisition of knowledge be recorded as FCF in the system/satellite accounts, how to measure FCF, CFC and capital services

9. List of topics (10) Treatment of PPPs (IMF) –AEG recommended that general description be placed in an annex to the updated SNA ; –Further research: who should be the economic owner of the asset; classification and valuation of the transactions taking place; –Follow the rules developed by IASB and IPSASB

10. List of topics (11) Consolidation, both for Government and Private Enterprise groups (OECD) (12) Wider use for fair value for loans (OECD) (13) Recognition of social security entitlements as liabilities (OECD)

11. List of topics (14) Reverse transactions (IMF) –BOPCOM and AEG recommend that repos are treated as collaterized loan with a negative asset if on-sold; –BOPCOM and AEG recommended the four-entry approach, but there was no sufficient time to resolve all issues for inclusion in SNA Rev1; –Further research of recording of repos with the involvement of monetary and financial statisticians; extend the research to securities lending, gold swaps and gold loans.

12. List of topics (15) Debt concessionality (IMF) - Increased importance of statistics of debt concessionality as part of MDGs; - Further research: more research with a view to provide consistent definition and guidance on measurement of transfers arising from concessionality. (16) Leases to exploit natural resources (OECD) - ISWGNA decided on treatment of leases of natural resources not subject to replenishment: (royalties) - However, some ISWGNA members suggested it should be put on the long-term research agenda and 3 alternative treatments are proposed.

13. List of topics (17) Reinvested earnings (Eurostat) - It is proposed to extend the concept of reinvested earnings to public and private corporations and quasi corporations; - Such treatment will improve the consistency of the system (revaluation accounts; government deficit). (18) Output of central banks: taxes and subsidies on interest rates -AEG decided to treat off-market interest rates as taxes/subsidies. However, due to uncertainty in surrounding the details, it would be useful to review these issues further.

14. List of topics (19) Inclusion of IOs in the SNA (UNECE) - IOs may have significant impact on the economy of the country or the territory where they are physically located; - Further research: analysis and guidance on transactions between IO and the local economies they are located (sub-sector of ROW); output of IOs.

15. List of topics (20) Government social services (21) Balance sheets in volume (real) terms (22) Treatment of defined contribution penion schemes

16. Questions to the AEG Which topics should be on the long-term research agenda? Are there any topics that need to be added to the list? Should some topics be merged together? How to proceed with the development of the research agenda?