Income from Bonds: Treatment in the System of National Accounts 1993

December 1, 2002

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Format: Chicago

Lucie Laliberté. Income from Bonds: Treatment in the System of National Accounts 1993, (USA: International Monetary Fund, 2002) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

How to account for interest on bonds in a system as integrated as the System of National Accounts 1993 (1993 SNA) has been a source of much controversy. Two main positions emerge: the debtor treatment based on the contractual arrangements of the bonds; and the creditor treatment based on current interest rates and prices of assets/liabilities. Using the discounted cash flow model, this paper explores the treatment of income and other benefits from assets in the 1993 SNA. It finds that the debtor approach to bond interest conforms with the 1993 SNA recording income and other benefits from assets, as that approach captures the results of effective decision making between institutional units.

Subject: Bonds, Market interest rates, National accounts, Personal income, Real interest rates

Keywords: Bond, Income, Interest rate, Value, WP, Yield

Publication Details

Pages:

29
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2002/221
Stock No:

WPIEA2212002
ISBN:

9781451875249
ISSN:

1018-5941

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