## unece-presentation-eng

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---

### Chapter 4 — Flows, Stocks, and Accounting Rules (Structure, Valuation, Transactions, Ownership, Sectoring)
- Chapter follows the 2008 SNA chapter structure (Chapter 3: Accounting Principles) and cross-references BPM7 Chapter 3 / 2025 SNA.
- Valuation and concessional lending:
  - Concessional lending—never record a transfer element in the “central framework”.
  - Exception: concessional loans provided by employers to employees.
  - Stocks of debt securities at nominal value—supplement to the existing market valuation.
  - Observed transaction value conceptually preferred; to be introduced in the next version of the manuals (subject to further testing).
- Transactions and time of recording:
  - Do not record fine/penalty transactions until the unit issuing the fine has an “unconditional claim to the funds”.
  - If a judgment or ruling is subject to further appeal, an unconditional claim exists “when the appeal is resolved”.
  - Illustrative examples: use of a car by households for production; travel packages and tours.
- Economic ownership clarifications:
  - Clarifications on ownership of (Non-renewable) natural resources, biological resources, renewable energy resources.
  - Economic ownership of Intellectual Property Products (IPPs) depends on underlying arrangement; UNECE Guide decision tree referenced.
  - Special purpose entities (SPEs): clarifications on provisions—financial asset related, nonfinancial asset related, and unrelated to asset ownership.
- Institutional units and sectoring (follows 2008 SNA chapter on institutional units and sectors):
  - Sectoring of fintech companies: classify within existing institutional sectors/subsectors—do not introduce a new sector “Fintech”; countries with significant fintech may introduce an “of which” category.
  - 2025 SNA sectoring labels preserved exactly for Non-financial corporations (S11), Financial corporations (S12), with sublabels (e.g., S11DO, S11001, S110021, S120011, S120021).
  - BPM7 sectoring labels preserved exactly: Central bank (Monetary authorities); Deposit-taking corporations (Of which SPEs); General government; Other financial corporations (Money market funds (MMFs); Non-MMF investment funds; Insurance corporations; Pension funds; Other financial intermediaries (Of which: Central clearing counterparties); Captive financial institutions and money lenders, and financial auxiliaries (Of which SPEs)); Nonfinancial corporations (NFCs) (Of which SPEs); Households (HHs) and non-profit institutions serving households (NPISHs).
- Special Purpose Entities (SPEs):
  - Use term SPEs only for entities with direct and indirect foreign control.
  - Special purpose units of general government—classified in the general government sector.
  - Non-resident SPEs treated as separate units—introduce enhanced imputations to better reflect fiscal operations of government-controlled SPEs.
  - Captive financial institutions wholly owned and controlled solely by resident parent entities—not considered SPEs.
  - Resident-controlled affiliates referred to by typology (conduits, captives, etc.)—not classified as SPEs.
- Units and control:
  - Guidance on head offices (HO) and holding companies (HC): determine whether HO/HC is a separate institutional unit and distinguish HC from HO.
  - Ownership and control criteria aligned with BPM: example rule—corporation B is a subsidiary of corporation A if corporation A holds more than 50 percent of voting power in corporation B.

*IMF Statistics Department – United Nations Economic Commission for Europe; SNA / BPM Joint Virtual Outreach Seminar, MARCH 6-7, 2024.*

### Software-as-a-service (SaaS) and Digital Products (Definitions, Platforms, Measurement, Financial Digitalization)
- A. Digital products: definitions and classifications
  - AI: capabilities of a computer program, or system controlled by a computer program, of recognition, reasoning, communication, and prediction that emulate human recognition, reasoning, and communication; AI programs may also be capable of learning.
  - AI systems are distinguished as a special type of software within the intellectual property product class “Computer Software, including Artificial Intelligence Systems”; separate reporting of AI encouraged as an “of which” item.
  - Data as an intangible produced asset: produced when information on observable phenomena (OP) is recorded, organized, and stored in digital format; data expected to be used in production for more than one year is conceptually a fixed asset (IPP).
  - NFTs: three categories and treatments:
    - (1) NFTs that convey no ownership rights — classified as SNA Consumption; BOP: computer and information services.
    - (2) NFTs that convey limited ownership rights — classified as Non-produced, nonfinancial assets: contracts, leases and licenses.
    - (3) NFTs that convey full ownership rights — treated as purchase of the underlying asset (digital or physical). For the BOP: digital—(goods or computer services).
- B. Digital platforms, intermediation, and outputs
  - Digital platform operator: facilitates interactions via the internet between two or more distinct but interdependent sets of users.
  - Three platform types:
    - a) Nonfinancial digital intermediation platforms (DIPs): facilitate ordering and delivery of goods and services for a fee/commission without taking ownership.
    - b) Free digital platforms: facilitate non-commercial interactions or provide entertainment/information, usually funded by advertising and data collection.
    - c) Financial digital intermediation platforms: mediate funding or payment transactions.
  - Nonfinancial DIPs: output consists only of digital intermediation services, recompensed through a fee or commission; a rerouting is needed to include direct sales by producers using the platform and the corresponding purchase by those producers of intermediation services.
- C. Free digital platforms and products — measurement and treatment
  - SNA valuation principles: free outputs of nonmarket producers by cost of production; free digital products supplied by commercial enterprises are valued by price (price is zero) but included in GDP as part of the price of other products it helps sell or with which it is bundled.
  - Pricing strategies: “freemium” models; many free platforms funded by advertising and monetizing user data; multi-sided platforms may charge one side and supply services free to the other.
  - Free software/apps: open-source by corporations usually funded through complementary services; free software by unpaid individuals is outside the SNA production boundary.
  - User-generated content: unpaid leisure content outside production boundary; households receiving monetary remuneration for uploaded content can be unincorporated household enterprises and exports if purchaser is non-resident.
  - Presentation alternative: present alternative measures of household final consumption expenditures and output of free digital platforms in an extended account on free digital platforms.
- D. Digitalization in the financial system and digital assets
  - New digital financial service types listed: Financial digital intermediation platforms; Crypto currency exchanges; Digital providers of insurance services (InsurTech); Digital banking platforms operating solely online (neobanks); Emoney issuers; Online-only foreign exchange bureaus and money transfer operators.
  - Financial digital intermediation platforms: provide matching services, receive fees/commissions and are classified as financial auxiliaries (S126).
  - Digital assets and crypto assets: digital representations of value recorded on a cryptographically secured distributed ledger; include crypto assets and CBDCs.
    - Crypto assets with a corresponding liability = Financial assets.
    - Crypto assets without corresponding liability = Nonproduced nonfinancial assets.
- E. Measuring prices and volumes of digitalized products — methods and indicators
  - Main measurement challenges relate to prices and volumes where product characteristics change.
  - Recommended techniques: Hedonic regression models; Options pricing method.
  - Product-specific guidance:
    - ICT goods and ICT components: Hedonic regression or option price method.
    - Internet and telecommunications services: keep contract samples up to date; construct volume indexes from physical indicators such as data usage.
    - Software and data: use deflator for investment in IT products or price index of a related product.
    - E-commerce and digital intermediation: deflators must represent e-commerce prices; monthly unit values may be more suitable.
    - Cloud computing (IaaS, PaaS, SaaS): use a sample of stable representative products to estimate a deflator; combine physical indicators with weights based on revenue shares.
- F. Analytical tools to increase visibility of digitalization
  - Digital Supply and Use Tables (Digital SUTs): add rows on digital transactions/products and columns on new digital industries; analyze digitalization along type of transaction, type of product, and type of industry.
  - Thematic accounts: communicate key information from Digital SUTs; Extended accounts: flexible tools presenting concepts that extend SNA boundaries (e.g., households’ consumption of free advertiser-funded platforms).
- G. Communication, dissemination, and institutional context
  - Communication principles: clear headline messages, methodological documents, policy-driven communication, transparent and multi-channel dissemination.
  - Statistical confidentiality: anonymization techniques and disclosure-checking procedures to maximize dissemination while meeting confidentiality obligations.
  - Alignment frameworks: 2025 SNA and BPM7 facilitate cross-country comparisons; an alignment framework structured around Concepts, Accounting Rules, Methods, and Classifications is proposed.
  - Common Glossary of Macroeconomic Statistics proposed to harmonize definitions and provide user-friendly explanations; ambition to publish final glossary as a separate electronic publication.
  - Emphasis on net measures (e.g., GNI) and improving estimation of consumption of fixed capital and natural resource depletion; expand guidance on capital measurement.
- H. BPM7 and related organizational items (contextual)
  - BPM7 follows standard revision cycle (~15 years between editions); first BPM update done in full coordination with the SNA update.
  - BPM7 chapter and annex structure (selected enumerations preserved exactly): includes Chapter 16. Digitalization (new joint BPM/SNA chapter); Chapter 20. Communicating the Accounts (new joint BPM/SNA chapter); Annex 5. Selected Issues on Cross-Border Trade (new annex); Annex 6. Selected Issues on Direct Investment (significantly expanded); Annex 10. Sustainable Finance in External Sector Statistics (new annex); Annex 11. Data by Partner Economy (new annex); Annex 12. Links between International Standards for Macroeconomic Statistics (expanded).

*IMF Statistics Department – United Nations Economic Commission for Europe; SNA / BPM Joint Virtual Outreach Seminar, MARCH 6-7, 2024.*

### Introduction — Flexibility, Standard vs Supplementary Items, Integrated IIP, Sector Breakdowns, Cross-cutting Issues
- Flexibility and guidance in BPM7:
  - BPM7 provides flexibility for compilers to provide further information on selected topics for analytic value; some recommendations extend beyond the core framework.
  - Compilers choose topics based on importance within the economy’s structure, key policy issues, and data availability.
- Standard items and supplementary items:
  - Standard components fully part of framework and contribute to totals and balancing items.
  - Memorandum items are part of standard presentation but not used in deriving totals (example: Interest before FISIM).
  - Supplementary items compiled depending on circumstances (example: Total remittances and transfers to NIPISHs); BPM7 will mostly introduce new supplementary items.
  - New standard items highlighted in blue throughout the presentation; items not highlighted are new supplementary items.
- Integrated IIP framework:
  - Integrated International Investment Position (IIP) framework integrates IIP with balance of payments, showing start positions plus transactions plus revaluations and other changes sum to closing positions.
- New sector breakdowns and institutional detail:
  - Split nonfinancial corporations, households, and nonprofit institutions serving households into two separate standard components: Nonfinancial corporations; Households and nonprofit institutions serving households.
  - Breakdown of other financial corporations into: Money market funds (MMFs); Non-MMF investment funds; Insurance corporations; Pension funds; Other financial intermediaries (Of which central clearing counterparties); Captive financial institutions and money lenders, and financial auxiliaries.
- Direct investment presentation:
  - BPM7 de-emphasizes breakdown by investment relationship in favor of sectoral breakdown to align DI with other functional categories; applies to financial account transactions and IIP.
  - Direct investment standard components include equity and investment fund shares by residential sector (Central Bank; Deposit-taking corporations, except the central bank; General government; Other sectors; Other financial corporations; Nonfinancial corporations; Households and NPISHs).
  - DI relationship breakdowns retained as memorandum/supplementary items.
- Data by partner economy:
  - BPM7 encourages publication by partner economy for Goods, Services, Direct investment, Remittances; supplementary DI data based on ultimate investing economy (UIE) and ultimate host economy (UHE).
  - Elaborates on challenging partner attribution cases (goods on consignment, merchanting, adjustments for change of economic ownership, intermediation services, securities transactor v debtor).
- Cross-cutting issues:
  - Fintech: introduce “of which” categories where necessary.
  - Crypto: record crypto assets without counterpart liability designed to act as general medium of exchange in a separate category in the capital account (new standard component); crypto assets with counterpart liability recorded as financial assets with functional category depending on nature of claim.
  - SPEs: separate “of which” identification of SPEs within institutional sector accounts; nationality-based SPE statistics organized by location of the entity that ultimately controls the SPEs.
- Supplementary presentations encouraged using business register linkage:
  - Goods trade by enterprise characteristics (TEC); Services trade by enterprise characteristics (STEC); Investment income by enterprise characteristics.
  - Recommended enterprise characteristics: Industry; Ownership (domestic/foreign control); Firm size.
- New supplementary items and sustainable finance:
  - Geographical and industrial sector breakdowns of direct investment.
  - Separate table for ESG related ‘of which’ categories of the IIP and BOP as part of Annex 14 of BPM7.
  - International cooperation grants to low-income countries; alignment with DGI-3 Recommendation 4 labeling/taxonomy/classification.
- Chapters and thematic coverage headlines:
  - Chapters 10 (Goods Account) and 11 (Services Account) replace a single chapter in BPM6.
  - Emphasis on publishing Table 10.2, Reconciliation between merchandise trade source data and total goods on a balance of payments basis.
  - Crypto assets no longer recommended to be classified in the goods account.
  - Chapter 11 updates: classification mainly product based; Computer and information services to include cloud computing services and data and databases (incl. data as an asset); Marketing assets: outright sales now in services rather than capital account; Fee-based DIP services recorded under trade-related services; Tele-health/tele-education included under Other personal, cultural and recreational services.
  - Chapter 12 (Earned Income Account) renames BPM6 Primary Income Account and introduces changes: discard concept of superdividends for DI; supplement recording of portfolio share of retained earnings; replace ‘Interest’ with “interest and similar returns” to include broader returns on Islamic instruments and a sub-category for Islamic finance investment income where significant.
- Goods account specifics:
  - New sections on global manufacturing—processing-type arrangements and factoryless goods production (FGP).
  - Emphasis on Table 10.2 adjustments: valuation adjustments (– CIF/FOB adjustment n.a.), adjustments from change of economic ownership (±), and other conceptual adjustments (e.g., nonmonetary gold).

*BPM7 / IMF Statistics presentation, SNA / BPM Joint Virtual Outreach Seminar, MARCH 6-7, 2024*

### Chapter 13 — Transfer Income Account (Formerly BPM6 Secondary Income Account)
- Naming and structure:
  - BPM6 Secondary Income Account renamed Transfer Income Account in BPM7; structure maintained as in BPM6 Chapter 12 with further clarifications and examples but no major changes.
- Distinction and timing:
  - Distinction between current and capital transfers; distinction for insurance and compensation payments.
  - Major catastrophic events determine if nonlife insurance claims are capital.
  - Compensation payments are capital if intended to recover losses incurred over a multi-year period or to replace an asset.
  - Time of recording for fines/penalties: when a legal and unconditional claim to the funds is established.
- Treatment of specific instruments and programs:
  - Licenses: record as taxes compulsory payments for non-transferable licenses.
  - Hybrid insurance: allocate to life or nonlife depending on predominant features.
  - Nonrefundable contributions to government under citizen-by-investment (CBI) programs: either current or capital transfers based on program features.
  - Concessional lending and transfer element – only as a supplementary item.

*IMF | Statistics — BPM7*

### Chapter 6 — Functional Categories and Major SNA Conceptual Changes (Data as Assets, Marketing Assets, Natural Resources, Central Banks)
- Overview and context:
  - Presentation delivered at IMF Statistics Department – UNECE Joint Virtual Outreach Seminar, MARCH 6-7, 2024.
  - Only a limited number of conceptual changes affecting macroeconomic indicators (GDP/NDP, government deficit, and net worth) are proposed in the 2025 SNA, but several changes may significantly affect GDP and net worth.
- Main conceptual changes:
  - Recognition of data as produced assets; recognition of marketing assets as produced assets; renewable energy resources and adjustments for biological resources; recording depletion of natural resources as a cost of production; split-asset approach for natural resources; improved sum-of-costs consistency; changes in measurement of central bank output.
- Data as produced assets (2025 SNA):
  - Recognizes information content of electronic data collected and used in production in addition to databases.
  - Valuation using the sum-of-costs method includes costs of planning, accessing/recording/storing OPs (including explicit purchases of OPs and already produced data), costs of designing/organizing/testing/analyzing data, consumption of fixed capital including return to capital.
  - Change may have significant impact on GDP and net worth.
- Marketing assets:
  - 2025 SNA recognizes marketing assets as produced assets, extending asset and production boundary for assets produced for own final use.
  - Valuation by sum-of-costs; further research needed to separate fixed capital expenditures from current expenditures in practice.
  - Change may have significant impact on GDP and net worth.
- Renewable energy and biological resources:
  - Explicit recognition of renewable energy resources (solar, wind, geo-thermal, etc.).
  - Regeneration of biological resources recorded as gross fixed capital formation; depletion treated as a cost of production.
  - Clarifications for work-in-progress measurement; impact minor on GDP and no impact on net worth (shifts between non-produced and produced assets).
- Depletion and split-asset approach:
  - Depletion of natural resources recorded as a cost of production in 2025 SNA (previously other changes in the volume of assets); impacts NDP, especially in natural resource-rich countries.
  - Split-asset approach records natural resources in accounts of legal owner and extractor according to appropriation of resource rents; no change to GDP/NDP and net worth—only allocation across sectors.
- Sum-of-costs method improvements:
  - 2025 SNA changes include: value all relevant output including a return to capital (including for non-market producers); include return to non-financial assets other than fixed assets; include rent as a cost element; include depletion where relevant.
  - Change may have a significant impact on GDP and a more moderate impact on net worth.
- Central bank output measurement changes:
  - 2008 SNA allowed FISIM; distinguished monetary policy services (non-market) and supervisory services.
  - 2025 SNA: FISIM excluded on conceptual grounds; extends services scope to promoting financial stability and monitoring payments system; all output considered non-market output and recorded as output for own final use by the central bank; payments by financial corporations considered current transfers.
  - Effect on GDP equals change in recording of transfers.
- Other notable changes:
  - Reinvested earnings of FDI limited to payments related to sales of assets; extension of rent definition to include non-produced non-financial assets other than natural resources; recording work-in-progress for partially transferred fixed assets and produced-for-own-use fixed assets; limitation of concessional loans to those provided by employers to employees; all equity in international organizations considered as “other equity”; securities provided as collateral excluded from cash borrower’s reserve assets if not readily available for meeting BOP financing needs (gold swaps lead to demonetization of gold bullion).
- Recommendations for additional tables/data items:
  - Distinguish sequence of economic accounts (standard set) from supplementary tables/items and extended/thematic accounts.
  - Encourage as many countries as possible to compile the sequence of economic accounts and supplementary tables dependent on national/regional priorities.
- Accounting for wellbeing, sustainability, globalization, digitalization, and financial risks:
  - Household distributional breakdowns and extended/thematic accounts encouraged (e.g., unpaid household service work, education, health).
  - Standard breakdowns of corporations for globalization analysis and SPEs data where important.
  - Digital SUTs and thematic accounts encouraged to improve visibility of digital economy and free services (examples listed).
  - Supplementary tables for non-bank financial intermediation, derivatives, from-whom-to-whom tables, concessional loans, reinvested earnings, valuation of debt securities at both market and nominal value, and provisions broken into three categories.

*Source: IMF Statistics Department – UNECE Joint Virtual Outreach Seminar on the Updates of the Statistical Manuals (BPM7 and SNA 2025), MARCH 6-7, 2024.*

### Chapter 27 — From-Whom-to-Whom (FWTW) Dimension, Tables, and Uses
- Overview and data sources:
  - FWTW tables display financial instruments for any given sector over time and the interconnectedness among institutional sectors.
  - Key data sources: Counterpart data; Security-by-security databases.
  - Scope includes non-financial accounts (new addition), financial account FWTW tables (new issues of loans, debt securities, equity, investment fund shares, borrowing via other instruments) and balance sheet FWTW tables (stock inter-relationships across institutional sectors).
- From-whom-to-whom in 2025 SNA (Chapter 37):
  - Aims to provide granular debtor-creditor relationships among institutional sectors and support construction of financial indicators on risks and vulnerabilities.
  - Links non-financial accounts, financial account, and balance sheets to FWTW analysis; non-financial accounts can provide extra detail for FWTW structures.
- Analytical and macroeconomic uses:
  - Enable identification of debtor-creditor relationships and produce summaries of sectoral risk and vulnerabilities referencing sectoral balance sheets and FWTW tables.
  - Current macroeconomic uses: Financial stability analysis; Monetary analysis with respect to transmission mechanisms.
- Wellbeing, sustainability, and SNA updates context:
  - SNA used in two approaches: use existing aggregates as inputs to wellbeing/sustainability analysis; use SNA rules to organize social/environmental data into extended accounts.
  - Relevant updated chapters: Chapter 2 (National accounts and measures of wellbeing and sustainability); Chapter 34 (Measuring wellbeing); Chapter 35 (Measuring sustainability).
  - Emphasis on accounting for environmental stocks/flows (renewable energy resources, split-asset approach, depletion as cost of production) and inclusion of unpaid household labor within production boundary with minimum recommendation to measure at least every five years.
- Distributional and thematic account development:
  - Encouraged household breakdowns by gender, age, education, employment status, geography, wealth deciles, home ownership, industry of employment.
  - Household distributional accounts to break down primary income; disposable income; adjusted disposable income; final consumption expenditure; actual final consumption expenditure; net worth; net financial worth.
  - Compilation requirements: link survey and macro data, allocate macro items (NOE, FISIM), appropriate deflation by household type, include consumer durable ownership estimates.
- Thematic and extended accounts purpose and development steps:
  - Thematic accounts increase visibility of activities included in standard aggregates; Extended accounts expand/modify production/consumption/investment boundaries (examples: Tourism, Health, Agriculture, Digitalization (NEW); unpaid household work; education & human capital).
  - Key tools: Supply and Use Tables (SUTs), additional granular source data, alternative classifications.
  - Steps: planning (define activity), compilation (thematic SUTs), disaggregate relevant elements, introduce complementary indicators.

*MF Statistics Department – UNECE, Joint Virtual Outreach Seminar on the Updates of the Statistical Manuals (BPM7 and SNA 2025), MARCH 6 -7, 2024*

### Chapter 4.

### Chapter 4. Flows, Stocks, and Accounting Rules

### Chapter structure and valuation
- The chapter will follow the 2008 SNA chapter structure (i.e., Chapter 3: Accounting Principles).
- Valuation
- Concessional lending—never record a transfer element in the “central framework”.
- Exception: concessional loans provided by employers to employees.
- Imports and exports of goods—no change to the current standard.
- Observed transaction value conceptually preferred.
  - To be introduced in the next version of the manuals (subject to further testing).
- Stocks of debt securities at nominal value—supplement to the existing market valuation.
- Cross-reference: BPM7 Chapter 3 / 2025 SNA.

### Transactions and time of recording
- Transactions
- Partitioning of assets/transactions.
- Two illustrative examples: use of a car by households for production; travel packages and tours.
- Time of recording of redistributive transactions:
  - Do not record fine/penalty transactions until the unit issuing the fine has an “unconditional claim to the funds”.
  - If a judgment or ruling is subject to further appeal, an unconditional claim exists “when the appeal is resolved”.

### Economic ownership
- Clarifications to be provided on economic ownership of:
  - (Non-renewable) natural resources.
  - Biological resources.
  - Renewable energy resources.
- Economic ownership of Intellectual Property Products (IPPs):
  - Previously produced IPP treatment depends on the underlying arrangement.
  - A decision tree from the UNECE Guide to Measuring Global Production is referenced for IPP ownership determination.
- Special purpose entities (SPEs):
  - Clarification on provisions—financial asset related, nonfinancial asset related, and unrelated to asset ownership.

### Chapter structure and sectoring (institutional units and sectors)
- The chapter follows the 2008 SNA chapter structure (i.e., Chapter 4: Institutional units and sectors).
- Sectoring of fintech companies clarified:
  - Classify them within the existing institutional sectors/subsectors—without introducing a new sector “Fintech”.
  - Countries with significant fintech activities may introduce an “of which” category.
- 2025 SNA sectoring highlights (selected labels preserved exactly):
  - Non-financial corporations (S11)
    - Domestically controlled (S11DO)
      - Public nonfinancial corporations (S11001)
        - Of which: Public nonfinancial corporations which are part of domestic multinationals (S110011)
      - National private nonfinancial corporations (S11002)
        - Of which: National private nonfinancial corporations which are part of domestic multinationals (S110021)
    - Foreign controlled (S11003)
      - Of which: SPEs
  - Financial corporations (S12)
    - Domestically controlled (S12DO)
      - Public financial corporations (S12001)
        - Of which: Public financial corporations which are part of domestic multinationals (S120011)
      - National private financial corporations (S12002)
        - Of which: National private financial corporations which are part of domestic multinationals (S120021)
    - Foreign controlled (S12003)
      - Of which: SPEs
- BPM7 sectoring labels preserved exactly:
  - Central bank
    - Monetary authorities
  - Deposit-taking corporations
    - Of which SPEs
  - General government
  - Other financial corporations
    - Money market funds (MMFs)
    - Non-MMF investment funds
    - Insurance corporations
    - Pension funds
    - Other financial intermediaries
      - Of which: Central clearing counterparties
    - Captive financial institutions and money lenders, and financial auxiliaries
      - Of which SPEs
  - Nonfinancial corporations (NFCs)
    - Of which SPEs
  - Households (HHs) and non-profit institutions serving households (NPISHs)

### Special Purpose Entities (SPEs)
- The term SPEs should be used only for those entities with direct and indirect foreign control.
- Special purpose units of general government—classified in the general government sector.
- Non-resident SPEs are treated as separate units—introduce enhanced imputations to better reflect the fiscal operations of government-controlled SPEs.
- Captive financial institutions wholly owned and controlled solely by resident parent entities—not considered SPEs.
- Resident-controlled affiliates should be referred according to their typology (conduits, captives, etc.)—not classified as an SPEs.

### Units and control
- Guidance on head offices (HO) and holding companies (HC):
  - Guidance for determining whether a HO/HC is a separate institutional unit.
  - Distinguishing HC from HO.
- Ownership and control of corporations:
  - Criteria for classifying corporations controlled by non-residents—treatment consistent with BPM.
  - Example rule: corporation B is a subsidiary of corporation A if corporation A holds more than 50 percent of voting power in corporation B.

*Source: 2025 SNA and BPM7 material presented by IMF Statistics.*

### 3. Software-as-a-service (SaaS) - access to the application  software

### 3. Software-as-a-service (SaaS) - access to the application software

### A. Digital products: definitions and classifications
- AI:
  - Defined as capabilities of a computer program, or system controlled by a computer program, of recognition, reasoning, communication, and prediction that emulate human recognition, reasoning, and communication.
  - AI programs may also be capable of learning.
  - AI systems are distinguished as a special type of software within the intellectual property product class “Computer Software, including Artificial Intelligence Systems”, with separate reporting of AI encouraged as an “of which” item.
- Data as an intangible produced asset:
  - Data are information content produced by accessing and observing phenomena and recording, organizing and storing information elements.
  - Produced when information on observable phenomena (OP) such as facts, behaviors, and characteristics are recorded, organized, and stored in digital format.
  - Data that is expected to be used in production for more than one year is conceptually a fixed asset (IPP).
- Non-fungible tokens (NFTs): three categories and statistical treatments
  - (1) NFTs that convey no ownership rights — classified as SNA Consumption; BOP: computer and information services.
  - (2) NFTs that convey limited ownership rights — classified as Non-produced, nonfinancial assets: contracts, leases and licenses.
  - (3) NFTs that convey full ownership rights — treated as purchase of the underlying asset (digital or physical). For the BOP: digital—(goods or computer services).

### B. Digital platforms, intermediation, and outputs
- Digital platform operator definition and intermediation:
  - Operators facilitate interactions via the internet between two or more distinct but interdependent sets of users (firms or individuals).
  - Digitally-enabled services matching producers with consumers or funders with borrowers are digital intermediation.
- Three types of digital platforms:
  - a) Nonfinancial digital intermediation platforms (DIPs): facilitate ordering and delivery of goods and services for a fee or commission without taking ownership of goods or rendering services.
  - b) Free digital platforms: facilitate non-commercial interactions or provide entertainment/information services, usually funded by advertising and data collection.
  - c) Financial digital intermediation platforms: mediate funding or payment transactions; discussed in the financial system section.
- Nonfinancial DIPs (additional points):
  - Output consists only of digital intermediation services, recompensed through a fee or commission.
  - A rerouting is needed to include direct sales by producers using the platform and the corresponding purchase by those producers of intermediation services supplied by the platform.
- Common platform functions and categories: DIPs; Communication; Payments; Search; Shopping; Suppliers; Entertainment.

### C. Free digital platforms and products — measurement and treatment
- Market and nonmarket supply:
  - SNA values free outputs of nonmarket producers by cost of production, but this does not apply to free digital products supplied by commercial enterprises.
  - Outputs of commercial enterprises are valued by price; price is zero for a free product, but the free product is included in GDP as part of the price of other products it helps sell or with which it is bundled directly or indirectly.
  - The bundle of items must generate at least enough revenue to cover operating costs so overall output is not undermeasured.
- Pricing strategies and funding:
  - Suppliers frequently adopt a “freemium” pricing strategy: free basic version promotes sales of upgrades or premium versions.
  - Many free platforms are commercial enterprises funded by advertising and monetizing user data; multi-sided platforms may charge one side and supply free services to the other side.
- Free software and apps:
  - Free software products are often used by households for final consumption or in production; copies frequently supplied across borders.
  - App stores are a type of DIP where the intermediated service is often free; free and subsidized apps may be funded by advertising, data monetization, or other services.
  - Open-source software developed by corporations is usually funded through sale of complementary services (training, support) or by other products it helps sell.
  - Free software developed by individuals working independently (unpaid production) is outside the SNA production boundary.
- User-generated content:
  - Content created for leisure is outside the SNA production boundary; unless the creator receives remuneration, it is assumed leisure activity.
  - Households receiving monetary remuneration for uploaded content can be considered unincorporated household enterprises supplying services; if purchaser is non-resident, these services should be included in exports of services.
- Presentation alternative:
  - Alternative measures of household final consumption expenditures and output of free digital platforms may be presented in an extended account on free digital platforms.

### D. Digitalization in the financial system and digital assets
- New digital financial service types (examples listed):
  - Financial digital intermediation platforms
  - Crypto currency exchanges
  - Digital providers of insurance services (InsurTech)
  - Digital banking platforms operating solely online (neobanks)
  - Emoney issuers
  - Online-only foreign exchange bureaus and money transfer operators
- Financial digital intermediation platforms:
  - Provide matching services and facilitate financial transactions between suppliers of funds and users of funds.
  - Receive fees or commissions and are classified as financial auxiliaries (S126).
- Digital assets and crypto assets:
  - Digital assets are digital representations of value recorded on a cryptographically secured distributed ledger or similar technology; include crypto assets and CBDCs.
  - Crypto assets use cryptography and distributed ledger technology (DLT) such as blockchains to enable direct transactions without a trusted intermediary.
  - Crypto assets with a corresponding liability = Financial assets.
  - Crypto assets without corresponding liability = Nonproduced nonfinancial assets.

### E. Measuring prices and volumes of digitalized products — methods and indicators
- General challenges:
  - Many measurement challenges relate to prices and volumes rather than output at current prices, because price change is straightforward to measure only when products and characteristics remain static.
  - To capture price and volume impacts of quality changes, prices of new models must be adjusted for the value of their quality differences versus replaced models.
  - Matched models should be adjusted by introducing models benefiting from advances in digital technology that often offer substantially improved quality at about the same price.
- Recommended techniques:
  - Hedonic regression models relating price to product characteristics are recommended for adjusting prices for quality change.
  - Options pricing method averages observations on price differences caused by a characteristic offered as an option.
- Product-class specific guidance (selected items and methods):
  - ICT goods and goods with ICT components: Hedonic regression methods or the option price method; cost of production of a new product feature may be used to adjust price index.
  - Internet and telecommunications services: Keep samples of contracts, products and carriers up to date; adjust prices for quality changes; construct volume indexes from physical indicators such as data usage.
  - Software and data: Use deflator for investment in IT products or price index of a related product (e.g., standardized software products sold by software publishers).
  - E-commerce and digital intermediation platforms: Deflators for household final consumption expenditures on items sold online must represent prices from e-commerce outlets and suppliers selling on digital platforms; high frequency of online price changes often makes a monthly unit value more suitable.
  - Cloud computing (IaaS, PaaS, SaaS): Use a sample of stable, representative products from each product class to estimate a deflator for cloud computing output; combine physical indicators of volume using weights based on revenue shares to construct a volume index.

### F. Analytical tools to increase visibility of digitalization
- Digital Supply and Use Tables (Digital SUTs) and thematic accounts:
  - Main purpose is to increase visibility of activities, products and transactions affected by digitalization that are subsumed in broader aggregates in standard national accounts classifications.
  - Thematic accounts communicate key information from Digital SUTs in a convenient format, prioritizing items important for understanding domestic economy structure and uses of digital products.
  - Digital SUTs analyze digitalization impact along three dimensions: type of transaction, type of product, and type of industry.
  - Digital SUTs start with conventional SUTs and add rows on digital transactions and products and columns on new digital industries.
- Extended accounts:
  - Extended accounts are flexible tools for presenting concepts that extend SNA boundaries, including expanded measures of economic activity and household final consumption expenditures that extend the production boundary.
  - Households’ consumption of free services of advertiser-funded digital platforms can be included in an extended account as part of expanded measures of household final consumption expenditures and output.

### G. Communication, dissemination, and institutional context (high-level)
- Communication and dissemination principles (guidance to statistical producers):
  - Provide clear, understandable headline messages and clearly described, non-technical statistical messages.
  - Accompany publications with methodological documents describing sources and methods.
  - Emphasize policy-driven communication, transparent dissemination, multi-channel dissemination and wide user access.
- Communication with suppliers:
  - Use language suppliers can readily understand and appropriate definitions in line with standards that can be adjusted to relevant situations.
- Statistical confidentiality:
  - Data collected by law for statistical purposes often cannot be disseminated in forms allowing identification of businesses or households.
  - Appropriate confidentiality policies, anonymization techniques and disclosure-checking procedures should be part of the process before publication.
  - Goal: maximize dissemination of information as a public good while ensuring confidentiality obligations are met.
- Alignment and guidance frameworks:
  - The 2025 SNA and BPM7 facilitate cross-country comparisons.
  - An alignment framework provides a tool for statistical producers to self-assess macroeconomic statistics and for users to assess cross-country consistent implementation; structured around Concepts, Accounting Rules, Methods, and Classifications.
- User-friendly terminology and taxonomies:
  - Proposes a Common Glossary of Macroeconomic Statistics to harmonize definitions across economic accounting standards and to provide user-friendly explanations, with ambition to publish the final Common Glossary as a separate electronic publication.
- Emphasis on net measures:
  - Encourages focus on net measures (e.g., GNI) as better measures of economic welfare.
  - Recommends improving estimation of consumption of fixed capital and measures of natural resource depletion; expanding accessibility and practical guidance on capital measurement to a wider range of countries.

### H. BPM7 and related organizational items (contextual listings)
- BPM7 features and process highlights:
  - Follows standard revision cycle (~15 years between editions).
  - First BPM update done in full coordination with the SNA update.
  - Increased collaboration with other statistical domains, including a common glossary.
  - Extensive outreach and global consultations; early implementation simulations to test proposals.
  - Guidance on statistical treatment of emerging phenomena related to globalization and digitalization.
  - Integrated framework will be at the center of the Manual.
- BPM7 chapter and annex structure (selected enumerations preserved exactly):
  - Chapters include, among others: Chapter 16. Digitalization (new joint BPM/SNA chapter); Chapter 20. Communicating the Accounts (new joint BPM/SNA chapter).
  - Annexes include: Annex 5. Selected Issues on Cross-Border Trade (new annex); Annex 6. Selected Issues on Direct Investment (significantly expanded); Annex 10. Sustainable Finance in External Sector Statistics (new annex); Annex 11. Data by Partner Economy (new annex); Annex 12. Links between International Standards for Macroeconomic Statistics (expanded).

*IMF Statistics Department – United Nations Economic Commission for Europe; SNA / BPM Joint Virtual Outreach Seminar, MARCH 6-7, 2024.*

### Introduction

### Introduction

### Flexibility and guidance in BPM7
- BPM7 provides flexibility for compilers to provide further information on selected topics for analytic value.
- Some recommendations are extensions from BPM6 within the core framework; some extend beyond the core framework.
- Guidance on various topics are presented in new chapters and annexes (such as on the informal economy and partner economy attribution) as well as references with the text to supplementary items.
- BPM7 encourages compilers to use this guidance to fill important information gaps.
- Compilers would choose topics based on their importance within the economy’s structure, key policy issues, and data availability.

### Standard items and supplementary items
- Standard items
  - Standard components are items that are fully part of the framework and contribute to the totals and balancing items.
  - Memorandum items are part of the standard presentation but are not used in deriving totals and balancing items (example: Interest before FISIM or implicit financial services).
- Supplementary items
  - Items outside the standard presentation that are compiled depending on circumstances in the particular economy (example: Total remittances and transfers to NIPISHs).
  - BPM7 will mostly introduce new supplementary items.
- New standard items are highlighted in blue throughout the presentation; items not highlighted are new supplementary items.

### Integrated IIP framework
- The Integrated International Investment Position (IIP) framework is an important new standard presentation integrating the IIP with the balance of payments.
- The integrated IIP shows how the IIP positions at the start of the period plus balance of payments transactions plus revaluations and other changes sum to the closing positions in the period.
- All standard components are included (except the two “of which” classifications under other changes in volume).

### New sector breakdowns and institutional detail
- Split nonfinancial corporations, households, and nonprofit institutions serving households into two separate standard components:
  - Nonfinancial corporations
  - Households and nonprofit institutions serving households
- Breakdown of other financial corporations into:
  - Money market funds (MMFs)
  - Non-MMF investment funds
  - Insurance corporations
  - Pension funds
  - Other financial intermediaries
    - Of which central clearing counterparties
  - Captive financial institutions and money lenders, and financial auxiliaries

### Direct investment: sectoral emphasis and presentation
- BPM7 de-emphasizes the breakdown by investment relationship (direct investor in direct investment enterprise; direct investment enterprises in direct investor (reverse investment); and between fellow enterprises) in favor of sectoral breakdown to align DI with other functional categories.
- Applies to financial account transactions and IIP.
- Direct investment standard components include:
  - Equity and investment fund shares by residential sector:
    - Central Bank
    - Deposit-taking corporations, except the central bank
    - General government
    - Other sectors
    - Other financial corporations
    - Nonfinancial corporations
    - Households and NPISHs
- Direct investment memorandum and supplementary items retain DI relationship breakdowns as memorandum/supplementary items (e.g., direct investor in direct investment enterprises (m.), reverse investment (m.), between fellow enterprises (m.), and indicators if ultimate controlling parent is resident/nonresident/unknown (s.)).

### Data by partner economy
- BPM7 will encourage compilers to publish data by partner economy for specific balance of payments components:
  - Goods (with reference as before other sources such as IMTS)
  - Services
  - Direct investment
  - Remittances
    - Closely related to migration between two economies, and
    - May often require estimations
- Supplementary data on DI based on the ultimate investing economy (UIE) and the ultimate host economy (UHE) as well as identification of pass-through funds.
- BPM7 elaborates on challenging cases for partner economy attribution, including:
  - Goods on consignment and economy of origin
  - Merchanting and other global manufacturing arrangements where physical movement differs from change of ownership
  - Adjustments to bring source data exhibiting physical cross-border flows to a change of economic ownership basis (may require partner economy adjustments)
  - Intermediation services and contracting
  - Securities: transactor v debtor for assets held; securities under reverse transactions (legal versus economic owner)

### Cross-cutting issues: fintech, crypto, and SPEs
- Fintech
  - Introduce “of which” category for instruments or services classifications where necessary to separate out fintech-related instruments and services (e.g., activities classified as financial services or insurance services with a further “of which”).
- Crypto
  - Record crypto assets without a counterpart liability designed to act as a general medium of exchange (e.g., Bitcoins) in a separate category in the capital account (new standard component).
  - Record crypto assets with a counterpart liability as a financial asset; the functional category depends on the nature of the underlying claim.
- Special Purpose Entities (SPEs)
  - A separate “of which” identification of SPEs within the institutional sector accounts.
  - Nationality-based SPE statistics (organized according to the location of the entity that ultimately controls the SPEs rather than by the residency of the SPEs).
  - Direct investment statistics that look through SPEs to the first operating unit as a first step in presenting data on the ultimate host economy.
  - Issues on investment position (IPP) owned by SPEs and how they are treated.

### Supplementary presentations: trade, services, and investment income characteristics
- Supplementary presentations recommended in the context of globalization, using data linkage with business registers:
  - Goods trade by enterprise characteristics (TEC)
  - Services trade by enterprise characteristics (STEC)
  - Investment income by enterprise characteristics
- Recommended enterprise characteristics:
  - Industry
  - Ownership (domestic/foreign control)
  - Firm size
- Supplementary presentation of trade by currency denomination:
  - Total Goods by the currency of denomination.
  - Total Services by the currency of denomination.
    - Domestic / foreign
    - Domestic and SDR basket
    - Domestic, SDR basket and other currencies
  - An unallocated item can be included to address currency allocation difficulties.

### New supplementary items and sustainable finance
- Sustainable Finance (new supplementary items)
  - Geographical and industrial sector breakdowns of direct investment.
  - Introduce a separate table for the ESG related ‘of which’ categories of the IIP and BOP as part of Annex 14 of BPM7.
  - International cooperation grants to low-income countries.
  - Aligned with the work by the DGI-3 Recommendation 4 in terms of labelling, taxonomy, classification.
  - Countries are encouraged to compile data as relevant.

### Chapters and thematic coverage (headlines)
- BPM7 reorganizes and expands coverage across chapters:
  - Chapters 10 (Goods Account) and 11 (Services Account) replace a single chapter in BPM6.
  - Emphasis on publishing Table 10.2, Reconciliation between merchandise trade source data and total goods on a balance of payments basis.
  - Crypto assets (CAW LM) no longer recommended to be classified in the goods account.
  - Chapter 11 updates:
    - Classification mainly product based, transactor based for travel, construction, and government goods and services n.i.e.
    - Computer and information services to include cloud computing services and data and databases (incl. data as an asset).
    - Marketing assets: outright sales now in services rather than capital account.
    - Fee-based digital intermediation platform (DIP) services defined; fee for services intermediated by third party (including DIPs) recorded under trade-related services.
    - Tele-health/tele-education included under Other personal, cultural and recreational services.
  - Chapter 12 (Earned Income Account) renames BPM6 Primary Income Account and introduces:
    - New treatment of superdividends (concept of superdividends for DI to be discarded).
    - Supplementary recording of portfolio share of retained earnings of enterprises and other reinvested earnings on portfolio investment.
    - ‘Interest’ replaced by “interest and similar returns” to include broader interest-like returns on Islamic instruments; a sub-category for Islamic finance investment income where significant.
- Goods account specifics:
  - New sections on global manufacturing—processing-type arrangements and factoryless goods production (FGP).
  - Emphasis on Table 10.2 types of adjustments: valuation adjustments (– CIF/FOB adjustment n.a.), adjustments arising from change of economic ownership (±), and other conceptual adjustments (e.g., nonmonetary gold).

*BPM7 / IMF Statistics presentation, SNA / BPM Joint Virtual Outreach Seminar, MARCH 6-7, 2024*

### Chapter 13 Transfer Income Account

### Chapter 13 Transfer Income Account

### Naming and structure
- New: BPM6 Secondary Income Account is called - Transfer Income Account in BPM7
- The structure will be maintained as in the BPM6 Ch 12
- The chapter will include some further clarifications and examples with no major changes.

### Distinction between current and capital transfers
- Distinction between current and capital transfers
- Distinction between current and capital transfers for insurance and compensation payments
- Major catastrophic events determining if nonlife insurance claims are capital
- Compensation payments are capital if they are intended to recover losses incurred over a multi-year period or to replace an asset

### Timing and recording rules
- Fine/penalty transactions time of recording:
  - is when a legal and unconditional claim to the funds is established

### Treatment of specific instruments and programs
- Treatment of licenses
  - record as taxes compulsory payments for non-transferable licenses
- Treatment of hybrid insurance
  - (allocation guidance provided: hybrid insurance products to be allocated to life or nonlife insurance depending on which features are predominant)
- Nonrefundable contributions to government under citizen-by-investment (CBI) programs are either current or capital transfers based on the specific features of the program
- Concessional lending and transfer element – only as a supplementary item

*IMF | Statistics — BPM7*

### Chapter 6.

### Chapter 6. Functional Categories

### Overview
- Presentation delivered at the IMF Statistics Department – UNECE Joint Virtual Outreach Seminar on the Updates of the Statistical Manuals (BPM7 and SNA 2025), MARCH 6-7, 2024.
- Only a limited number of conceptual changes affecting macro-economic indicators (GDP/NDP, government deficit, and net worth) are proposed in the 2025 SNA.
- The objective of recommended tables/data items is to encourage worldwide compilation of the sequence of economic accounts and to allow for encouraged/supplementary tables driven by national and regional priorities.

### Main conceptual changes (high-level)
- Recognition of data as produced assets.
- Recognition of marketing assets as produced assets.
- Renewable energy resources and adjustments in the treatment of biological resources.
- Recording depletion of natural resources as a cost of production.
- Split-asset approach for natural resources (no impact on macro-economic indicators mentioned above).
- Improving consistency in the application of the sum-of-costs method.
- Changes in the measurement of the output of central banks.
- Other minor changes to the 2008 SNA (no impact on macro-economic indicators).

### Data as produced assets
- 2008 SNA: Recognized databases as produced assets, but not the information content.
- 2025 SNA: Also recognizes the information content of electronic data collected and used in production.
- Valuation using the sum-of-costs method includes:
  - costs of planning, preparing and developing a data production strategy;
  - costs associated with accessing, recording and storing information embedded in OPs, including explicit purchases of OPs and already produced data;
  - costs associated with designing, organizing, testing and analyzing the data in order to draw information and conclusions from it;
  - consumption of the fixed capital used, including return to capital.
- Change may have significant impact on GDP and net worth.

### Marketing assets
- 2008 SNA: Marketing assets (and goodwill) only recognized as non-produced non-financial assets, measurement limited to explicit purchases (or implicit purchases when a corporation is purchased at a price higher than its net worth).
- 2025 SNA: Recognizes marketing assets as produced assets, significantly extending the asset (and production) boundary with assets produced for own final use.
- Valuation using the sum-of-costs method; further research needed to delineate fixed capital expenditures from current expenditures in practice.
- Change may have significant impact on GDP and net worth.

### Renewable energy resources and biological resources
- Explicit recognition of renewable energy resources (solar, wind, geo-thermal, etc.).
- Three changes/clarifications relative to 2008 SNA:
  - 2008 SNA included a discrete choice between cultivated and non-cultivated resources yielding once-only products, based on management and control; 2025 SNA includes a differentiation between migrating resources (non-cultivated) and non-migrating resources (cultivated, based on continuum from intensely managed to totally undisturbed).
  - Regeneration of biological resources to be recorded as gross fixed capital formation, while – similarly to mineral and energy resources – depletion is treated as a cost of production.
  - Clarifications for the measurement of work-in-progress.
- Impact: Minor impact on GDP, no impact on net worth (only shifts between non-produced and produced assets, and between work-in-progress and underlying assets).

### Recording depletion of natural resources as a cost of production
- 2008 SNA: Depletion of natural resources treated as other changes in the volume of assets.
- 2025 SNA: Depletion to be recorded as a cost of production, similar to the recording of consumption of fixed capital.
- Change will have an impact on NDP, especially in natural resource-rich countries.

### Split-asset approach for natural resources
- 2008 SNA: Natural resources recorded in the accounts of the legal owner (typically government).
- 2025 SNA:
  - Natural resources recorded in the accounts of the legal owner and extractor, according to the appropriation of the resource rents.
  - Accounting for depletion in line with SEEA Central Framework 2012 (allocation of depletion in line with appropriation, by adjusting the rents paid by the extractor to the legal owner).
  - Changes in ownership to be recorded as other changes in the volume of assets.
- Impact: No change to GDP/NDP and net worth; only change in the allocation of the relevant assets across sectors.

### Improving consistency of the sum-of-costs method
- In the absence of market prices, the sum-of-costs method is applied as an approximation.
- For market producers (output for own final use), cost components include:
  - Intermediate consumption;
  - Compensation of employees;
  - Consumption of fixed capital;
  - Net return to fixed capital;
  - Other taxes (less subsidies) on production.
- Four issues in relation to the 2008 SNA:
  - For non-market producers, relevant output is valued excluding return to fixed capital.
  - Return to capital is excluded for non-financial assets other than fixed assets.
  - Inclusion/exclusion of payments for rent (e.g., land and natural resources).
  - Inclusion/exclusion of depletion, in addition to consumption of fixed capital.
- 2025 SNA changes:
  - All relevant output valued including a return to capital, thus also for non-market producers.
  - Inclusion of return to non-financial assets other than fixed assets, thus including inventories and non-produced non-financial assets (note: return to city parks and historical monuments to be excluded on pragmatic grounds).
  - Inclusion of rent as a cost element.
  - Inclusion, if relevant, of depletion of natural resources.
- Change may have a significant impact on GDP, and a more moderate impact on net worth.

### Changes in the measurement of the output of central banks
- 2008 SNA:
  - Possibility of FISIM included.
  - Two types of services: Monetary policy services (non-market output) and Supervisory services (non-market or market, depending on fees).
  - Non-market output allocated to government, with a concomitant current transfer.
- 2025 SNA:
  - FISIM excluded on conceptual grounds.
  - Further extension of services to include promoting financial stability and monitoring the payments system.
  - All output considered as non-market output, with payments by financial corporations considered as current transfers.
  - Output recorded as output for own final use by the central bank.
- Effect on GDP: Change in GDP equals change in recording of transfers.

### Other minor conceptual changes
- Treatment of reinvested earnings of FDI-enterprises limited to payments related to the sales of assets.
- Extension of the definition of rent to include non-produced non-financial assets other than natural resources.
- Recording of work-in-progress for fixed assets partially transferred and for fixed assets produced for own final use.
- Limitation of concessional loans to those provided by employers to employees.
- All equity in international organizations to be considered as “other equity”.
- Securities provided as collateral, not readily available for meeting balance of payments financing needs, to be excluded from the cash borrower’s reserve assets; for gold swaps, this reclassification leads to a demonetization of the gold bullion.

### Recommendations for additional tables / data items
- Distinction between:
  - Sequence of economic accounts: standard set of accounts and tables recommended for compilation.
  - Supplementary tables/items.
  - Extended/thematic accounts/tables.
- Encouraged focus that as many countries as possible compile the sequence of economic accounts.
- Encouraged tables and accounts more dependent on national and regional priorities.

### Accounting for well-being and sustainability
- To improve analysis of distribution of income, consumption, saving and wealth across households:
  - Standard breakdown of households by income and wealth decile.
  - More detailed labour accounts.
  - Other household breakdowns (e.g., household composition, main source of income) as supplementary items.
- Extended/thematic accounts/tables proposed:
  - Unpaid household service work;
  - Education and human capital;
  - Health.
- Accounting for sustainability reiterated under similar recommended tables.

### Accounting for globalization
- To better understand globalization’s impact on generation and distribution of income, and improve international comparison of fiscal balances:
  - Standard breakdowns of corporations into: Foreign-controlled corporations; Public corporations; National private corporations (of which: Part of domestic MNEs).
  - Supplementary items encouraged: Extended supply and use tables (eSUTs); Data on Special Purpose Entities (SPEs) where important.

### Accounting for digitalization
- To improve visibility of the digital economy:
  - More detailed breakdowns of certain asset categories within intellectual property products in the sequence of economic accounts.
  - Digital supply and use tables encouraged as extended/thematic tables, including extended accounting for “free” services (Facebook, Instagram, TikTok, etc.).
  - Further breakdowns of subsectors of financial corporations for Fintech-related activities as supplementary items where significant.

### Accounting for financial risks and vulnerabilities
- Since the Great Financial Crisis, improved accounting for financial risks and vulnerabilities is considered important:
  - Non-bank financial intermediation (shadow banking): supplementary tables with more detailed breakdowns of financial corporations, and additional details for certain financial instruments.
  - Breakdowns of financial derivatives.
  - From-whom-to-whom (supplementary) tables (not included in the consolidated list).

### Other supplementary items and tables
- Concessional loans: supplementary data on concessional loans provided by government and international organizations.
- Reinvested earnings:
  - Breakdown of FDI-related dividends into payments as defined for non-FDI corporations and other payments.
  - Supplementary data on recording reinvested earnings for all equity in corporations, direct investment as well as portfolio investment.
- Valuation of debt securities at both market value and nominal value for liability positions.
- Supplementary table on provisions, broken down into three categories: financial assets related, non-financial assets related, and provisions unrelated to assets.

### Next steps and timeline
- At its 55th Session, to be held on 27 February - 1 March 2024, the United Nations Statistical Commission will be asked to endorse the Report of the Intersecretariat Working Group on National Accounts on the recommendations for the update of the 2008 SNA.
- Drafting of the 2025 SNA continues.
- Initial focus on new and substantially revised chapters; these chapters subject to global consultation on a chapter-by-chapter basis.
- In May-July 2024 the complete draft of the 2025 SNA will be circulated for global consultation.
- Chapters that are not new or substantially revised will be shown in ‘track changes’.
- Significant program of work developing guidance materials to support implementation of the 2025 SNA.

### Financial issues: new and revised chapters (summary)
- Chapter 29 (Financial corporations): New chapter consolidating parts of 2008 SNA Chapters 4 and 21; expands on 2008 SNA Chapter 6; reviews financial sectors and subsectors, discusses corporate ownership structures, highlights role of non-bank financial intermediaries (shadow banking), and aligns with Monetary and Financial statistics (MFSM 2016).
- Chapter 25 (Selected issues on financial instruments): Includes parts of 2008 SNA Chapter 17; provides additional details on standardized guarantees, financial derivatives, employee stock options (ESOs), and recording of flows associated with financial assets and liabilities.
  - ESOs: Guidance unchanged, with clarification that ESOs are equity instruments (market risk category); numerical examples to be added.
  - Financial derivatives: Expanded discussion on classifications under exchange-traded and over-the-counter derivatives, functions, accounting, uses, and risks.
  - Loan provisions, write-offs, and allowances: Expanded discussion distinguishing provisions from write-offs, covering general and specific provisions.
  - Recording of flows: Section to start with transactions versus other flows linked to sequence of accounts; for each instrument, discussion of other transactions and other changes in the volume of assets provided.
- Chapter 37 (From-whom-to-whom tables and related financial analysis): Related to the flow of funds section of 2008 SNA; will cover FWTW tables and related financial analysis.

*Source: IMF Statistics Department – UNECE Joint Virtual Outreach Seminar on the Updates of the Statistical Manuals (BPM7 and SNA 2025), MARCH 6-7, 2024.*

### Chapter 27. Emphasis will be on the from-whom-to-whom (FWTW)

### Chapter 27. Emphasis will be on the from-whom-to-whom (FWTW) dimension

### Overview of FWTW tables and data sources
- The section discusses FWTW tables that display financial instruments for any given sector over time and the interconnectedness among institutional sectors.
- Key FWTW data sources mentioned:
  - Counterpart data
  - Security-by-security databases
- Scope of FWTW coverage:
  - Non-financial accounts (a relatively new addition to FWTW tables, but closely linked to financial accounts and balance sheets and providing additional sub-category detail)
  - Financial account FWTW tables (details of new issues of loans, debt securities, equity, investment fund shares, and borrowing via other instruments in relation to acquisitions)
  - Balance sheet FWTW tables (highlight stock inter-relationships across institutional sectors)

### From-whom-to-whom tables in the sequence of SNA accounts (2025 SNA - Chapter 37)
- Main aims:
  - Provide granular information on debtor-creditor relationships among institutional sectors.
  - Support construction of financial indicators that shed light on financial risks and vulnerabilities.
- Components and linkages:
  - Non-financial accounts, financial account, and balance sheets are all part of the sequence tied to FWTW analysis.
  - Non-financial accounts can be used to provide extra detail for relevant items within FWTW structures.

### Related financial analysis and macroeconomic uses
- Analytical usefulness:
  - FWTW tables enable identification of debtor-creditor relationships among institutional sectors.
  - Summaries of sectoral risk and vulnerabilities are produced by referencing sectoral balance sheets and relevant FWTW tables.
  - Presentation of other macroeconomic financial indicators linked to FWTW tables.
- Current macroeconomic uses highlighted:
  - Financial stability analysis
  - Monetary analysis with respect to transmission mechanisms

### Wellbeing, sustainability, and SNA updates (context and relevant chapters)
- Role of SNA in wellbeing and sustainability analysis:
  - Two approaches: use existing national accounts aggregates as inputs (income, consumption, savings, net worth) and use SNA accounting rules to organize social and environmental data into extended accounts.
- New or updated guidance summarized in:
  - Chapter 2: National accounts and measures of wellbeing and sustainability
  - Chapter 34: Measuring wellbeing
  - Chapter 35: Measuring sustainability
- Key conceptual points:
  - Wellbeing encompasses material wellbeing plus education, health, labor, wealth, social, environmental, freedom and other factors.
  - Sustainability implies an accounting framework to estimate stocks and flows of economic, human, environmental, and social capitals over time.
  - SNA captures some but not all human and environmental stocks and flows and can exploit linkages (e.g., SEEA, SAET, SHA) to derive extended accounts.

### Core 2025 SNA updates relevant to extended and thematic accounts
- Environmental accounts updates driven by SEEA principles include:
  - Inclusion of stocks/flows of renewable energy resources (revised asset boundary)
  - Revised approach to measuring natural resource rents
  - The ‘split-asset approach’
  - Depletion of natural resources to be recorded as cost of production (moved from other changes in volume account)
  - Clarification of production boundary for biological resources, including migratory animal/fish stocks
  - Updated recording of emissions trading schemes and provisions
- Inclusion of unpaid household labor within the production boundary:
  - Activities covered: caring, cooking, transport, laundry, household management, shopping, volunteering, information services
  - Minimum recommendation: measure such activity at least every five years as an additional element of productive activity in supply and use tables
  - Valuation requires (i) time-use information and (ii) appropriate market sector wage rates
  - Note: Labor accounts form a new core element of 2025 SNA (see Chapter 16)

### Distributional, household, and consumption/production extensions
- Encouraged breakdowns and extensions for distributional accounts:
  - Break down income, consumption, wealth for households by gender, age, education level, employment status, geography, wealth deciles, home ownership, industry of employment
  - Household final consumption expenditure by COICOP; household actual final consumption; unpaid household service work; ecosystem services; breakdowns by household type and income quintiles (1st to 5th)
- Household distributional accounts — key balancing items to be broken down:
  - Primary income; disposable income; adjusted disposable income
  - Final consumption expenditure; actual final consumption expenditure
  - Net worth; net financial worth
- Estimation and compilation requirements for household distributional accounts:
  - Maintain drill-down links between household survey data and final national accounts aggregates
  - Link multiple data sources via unique identifiers and matching techniques
  - Allocate macro items like NOE, FISIM to ensure conceptual alignment
  - Appropriate deflation by household type
  - Inclusion of estimates of consumer durable ownership by household
- Extensions to consumption and production boundaries for wellbeing analysis:
  - Core: Unpaid household service work on health, education, maintenance, transportation, care of others (requires monetary value and time-use measures; see UNECE 2017 guide; ICATUS classification)
  - Extended: Non-productive activities undertaken by individuals such as sleeping, eating and leisure (no monetary values, time spent key to wellbeing)
  - Extended: Ecosystem services including provisioning, cultural, and regulating services

### Thematic and extended accounts — roles, tools, and development steps
- Purpose and roles:
  - Thematic and Extended Accounts increase visibility of key economic phenomena while maintaining coherence with SNA concepts.
  - Thematic accounts: increase visibility of certain activities included in standard national accounts aggregates or provide additional detail on composition (examples: Tourism, Health, Agriculture, Digitalization (NEW)).
  - Extended accounts: expand or modify production/consumption/investment boundaries or test new methodologies (examples: unpaid household work, education & human capital).
- Tools and key inputs for developing thematic accounts:
  - Supply and Use Tables (SUTs)
  - Additional (more granular) source data
  - Alternative classifications/aggregations to understand scope/depth of activity
- Steps to develop a thematic account:
  - Planning: precisely define the activity or economic phenomenon
  - Compilation: compile thematic SUTs, disaggregate relevant elements, introduce complementary indicators

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_Source: https://www.imf.org/-/media/files/data/statistics/bmp7/events/unece-presentation-eng.pdf_