The attached report summarizes the discussion over the last two years, including the results of the poll undertaken in July 2004 with the aim of bringing the discussion to a conclusion. Taking account of further discussion which took place following the posting of the draft report on August 16, 2004 the report has been revised, and the moderator concludes that the EDG recommends the following:
· The 1993 SNA Rev 1 continue to measure loans at nominal value in the accounts;
· The updated 1993 SNA show as memorandum items (i) the market-equivalent value of loans and (ii) interest arrears on loans;
· In order for this solution to work, the memorandum items should be regarded as mandatory;
· After experience has been gained in presenting the market-equivalent value of loans as memorandum items, and after stabilization of the accounting standards' position on fair valuation, a review should determine the appropriateness of recording loans at market value in the accounts proper;
· Attention be given to the further harmonization of the terminology and definitions used by the international macroeconomic statistics manuals concerning loans and interest accrual.
This paper has now been forwarded to the ISWGNA and is on the agenda for discussion at the Advisory Expert Group on National Accounts meeting December 8-16, 2004.