## BPM7 Chapter 11. Services Account: Annotated Outline

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---

### I. Introduction — scope, definitions, and structure
- BPM7 Chapter 11 is a new BPM chapter split from existing Chapter 10 to cover the services account exclusively.
- Updates align terminology and coverage with 2008 SNA paragraphs 6.16–6.22 (and its update), Box 1.1, and MSITS 2010.
- Introduces the definition of fee-based digital intermediation platform (DIP) services:
  - online fee-based intermediation services enabling transactions between multiple buyers and multiple sellers, without the intermediation platform taking economic ownership of the goods or rendering-services that are being sold (intermediated).
- Clarifications and cross-manual consistency:
  - Intermediation services (including digital intermediation) are not separately identified in the balance of payments services classification (following GN C.6), but supplementary items could be introduced in MSITS 2010 update and EBOPS revision.
  - Digital supply and use tables (following GN DZ.5) will provide insights on DIPs; DIPs are identified as one of the “digital” industries under that framework.
  - Measurement of cloud computing in balance of payments will be briefly mentioned (following GN DZ.8; GN under preparation).
  - Digitalization aspects covered in more detail in Chapter 16 (Digitalization).
  - Digital trade further discussed in Annex 5 (Selected Issues on Trade).
- Presentation and cross-references:
  - BPM6 Table 10.1 will be modified to present an overview of the services account only—17 main standard service categories.
  - Additional breakdowns/supplemental presentations (e.g., trade in services by currency in Annex 5; exports/imports by characteristics of the trading enterprise in Chapter 15 Globalization).
- Authors/clearance:
  - Prepared by Venkat Josyula (BPM editor, IMF), Peter van de Ven (SNA lead) and cleared by Carlos Sánchez-Muñoz (BPM Project Manager).
- Chapter structure:
  - one separate section in addition to Introduction (Section II—classification of services).
- Table 11.1 — Overview of Services Account (17 main standard service categories):
  - Manufacturing services on physical inputs owned by others
  - Maintenance and repair services n.i.e.
  - Transport
  - Travel
  - Construction
  - Insurance and Pension services
  - Financial services
  - Charges for the use of intellectual property n.i.e.
  - Telecommunication services
  - Computer and information services
  - Research and development services
  - Professional and management consulting services
  - Trade-related services
  - Operating leasing services
  - Technical and other business services
  - Personal, cultural and recreational services
  - Government goods and services n.i.e.

### II. Classification of Services — main updates and category-level changes
- General approach:
  - Classification updated with additional first-level standard service categories to improve correspondence with the Central Product Classification (CPC).
  - Classification remains mainly product-based, but transactor-based for travel, construction, and government goods and services n.i.e.
  - If new services are identified during the ongoing CPC revision, the balance of payments classification will reflect them where relevant.
  - Note: revised draft CPC to be circulated to expert groups; final CPC expected to be adopted by the UNSC in March 2023 (as referenced).

- A. Manufacturing services on physical inputs owned by others
  - Numerical examples from BPM6 Box 10.1 moved to new Box 11.1; includes a GN C.4–based numerical example contrasting (1) processing-type arrangements (manufacturing services on physical inputs owned by others) and (2) factoryless goods producer (FGP)-type arrangements.
  - Box 10.2 expanded to new Box 11.2 to explain FGPs and include decision tree from GN C.4, Annex II, with links to Section II of the Globalization chapter.

- B. Maintenance and Repair Services
  - Maintained as in BPM6 with no changes.

- C. Transport
  - Maintained mostly as in BPM6 with minor update:
    - Reference to the Box on package tours included in the updated subsection on travel provided in paragraph 10.77.
    - Ongoing discussion with SNA editors on inconsistency between BPM6 and 2008 SNA regarding recording freight services provided by a carrier resident in the importing economy.

- D. Travel
  - Scope and measurement as in BPM6 with important updates:
    - Paragraph 10.86 updated to clarify goods and services provided free to nonresidents by government and NPISH known as social transfers in kind are included under travel (examples: free health services to a foreign tourist from a hospital within general government; free educational services to a foreign student from a university within general government).
    - Social transfers in kind will be explained in the updated chapter on Secondary Income Account, consistent with SNA.
  - Package tours:
    - Clarified not a new product but a basket of at least three major services following TSA: (i) the services themselves (e.g., transport, accommodation); (ii) services provided by the tour operator; and (iii) the margin of the travel agency selling the tour (usually different from the tour operator) (GN C.7).
    - Definition follows IRTS 2008 and updated SNA; emphasizes cross-border unbundling.
  - Health related travel:
    - Scope of “medical reasons” follows IRTS 2008 paragraph 3.17 definition of “health and medical care” (verbatim):
      - “Health and medical care covers services received from hospitals, clinics, convalescent homes, health and social institutions, thalassotherapy, health and spa resorts, other specialized places to receive medical treatments based on medical advice, as well as cosmetic surgeries using medical facilities and services”.
    - Travel expenses of patients’ companions included under “other personal travel” treating them as “normal travelers”.
  - Education related travel:
    - Clarification on treatment of companions of education-related travelers to be provided (based on a clarification note to be prepared by BEA).
  - Other travel-related:
    - Following GN C.1, supplementary breakdown of travel to include personal, cultural and recreation services (acquired by travelers) as a distinct item under other services (in addition to Health and Educational services).

- E. Construction
  - Concepts and coverage unchanged from BPM6 except:
    - Following GN C.1, a separate supplementary breakdown for construction abroad (1.A.b.5.1) and construction in the compiling economy (1.A.b.5.2) may be provided for (a) constructions and (b) construction services, aligned with CPC divisions 53 (physical outputs of construction activities provided in less than a year) and 54 (services provided in constructing the physical output), respectively.

- F. Insurance and Pension Services
  - BPM6 coverage maintained with updates:
    - GN F.12: treatment of hybrid insurance products explained. Hybrid products mix life insurance (financial claims arise regardless of an event occurrence—i.e., insurance with a saving component) and nonlife insurance (claims arise only if an event occurs). Classification into life (financial account) or nonlife (current transfers) depends on predominant feature. Term life insurance continues to be included in nonlife insurance (as in BPM6).
    - Further details in Annex 8 “Insurance and Pensions”.
    - Takaful and Re-takaful arrangements discussed in Chapter 17 “Islamic Finance and Insurance”.
    - Insurance services through fintech (InsurTech) covered under insurance and pension services (GN F.7); digitalization aspects in Chapter 16.

- G. Financial Services
  - BPM6 coverage maintained with updates:
    - Explicit charges: additional information/links on service charges on purchases of IMF resources and commitment fees associated with undrawn balances under stand-by or extended arrangements with the IMF; further details in Annex 9 “Positions and Transactions with IMF”.
    - Fintech: financial services provided by fintech (e.g., payment services/peer-to-peer lending services/other financial services such as capital raising/investment management enabled by Fintech) are classified in financial services without new service categories. Insurance services via Fintech classified under insurance and pension services. Sectorization of Fintech companies discussed in Chapter 4; classification of financial instruments provided by Fintech in Chapter 5; detailed fintech coverage in Chapter 16.
    - Margins on buying and selling transactions: no change in underlying concept from BPM6; further elaboration and mention of practical compilation challenges. Additional compilation guidance and tradeoffs (survey-based, estimation, mixed approach) to be provided in updated BPM6 Compilation Guide; countries should assess materiality when deciding to compile this item (based on GN F.13 guidance).
    - Factoring: guidance on income received by the factor (as fee) to be provided with references to factoring transactions in other BPM7 chapters (based on GN F.14).
    - FISIM and negative interest rates: paragraphs 10.134 and 10.135 to be updated. While FISIM should be positive irrespective of positive or negative interest rates (since output cannot be negative), negative interest rates raise doubts on reference rates used for FISIM calculation and raise risk of negative FISIM if banks offer interest rates higher than reference rates to retain depositors. Compilers should carefully review reference rates to avoid negative FISIM. (Updated SNA will also include guidance on negative interest rates and possible impact on FISIM.)

- H. Charges for the Use of Intellectual Property n.i.e.
  - Subsection maintained with important updates:
    - Include GN DZ.7–based definition of Intellectual property products (IPP) (verbatim):
      - “Intellectual property products are the result of research, development, investigation, or innovation leading to knowledge or the creation of artificial intelligence systems that the developers can market or use to their own benefit in production because use of the knowledge or system is restricted by means of legal or other protection.”
    - Clarification on IPP sale/purchase transactions to be provided.
    - Cross-reference to Section III, Chapter 15 (Globalization) for determining economic ownership of IPPs among MNE units and recording related transactions.
    - Issues relating to economic ownership and outright sale/purchase of IPPs to be discussed with SNA editors for consistent guidance across updated manuals.

- I. Telecommunication Services
  - Telecommunication maintained as a distinct first-level category (1.A.b.9).

- J. Computer and Information Services
  - Telecommunication, computer, and information services split into two first-level categories (following GN C.6):
    - 1.A.b.9 Telecommunications services
    - 1.A.b.10 Computer, and information services
      - 1.A.b.10.1 Computer services* (supplementary item)
      - 1.A.b.10.2 Information services* (supplementary item)
  - Computer and information services will include cloud computing services (delivery of computing power, database storage, and other IT resources). Definition of cloud computing (based on GN DZ.8), measurement challenges, and links to Chapter 16 Digitalization added.

- K. Research and Development Services
  - Identified as a first-level category (1.A.b.11 in reorganized structure for business services).

- L. Professional and Management Consulting Services
  - Identified as a first-level category (1.A.b.12 in reorganized structure for business services).

- M. Trade-Related Services
  - Identified as a first-level category (1.A.b.13); to include intermediation fees where appropriate as a supplementary “of which” item in international accounts of partner countries.

- N. Operating Leasing Services
  - Identified as a first-level category (1.A.b.14); references to IFRS 16 to note non-alignment with BPM/SNA economic ownership concepts (based on GN C.5). Concepts of dry and wet leasing of aircrafts and their treatment explained (paragraph 12.34 BPM6 CG referenced).

- O. Technical and Other Business Services
  - Other business services category split into five first-level categories (following GN C.6) with coverage:
    - 1.A.b.11 Research and development services
    - 1.A.b.12 Professional and management consulting services
    - 1.A.b.13 Trade-related services
    - 1.A.b.14 Operating leasing services
    - 1.A.b.15 Technical and other business services (covers BPM6 items: (i) Architectural, engineering, and other technical services (10.151(a)); (ii) Waste treatment and de-pollution, agricultural, and mining services (10.151(b)); and (iii) Other business services (10.151(e))).
  - Merchanting of services:
    - Following GN C.4, reference to “services merchanting” in paragraph 10.160 will be removed. Conceptually, “merchanting of services” is deemed impossible because services cannot be traded with ownership rights; services are generally produced and consumed simultaneously and delivered directly from producer to consumer.
    - Services can be intermediated by a third person for a fee; such fees should be recorded under trade-related services (1.A.b.13) as a supplementary “of which” item in partner countries’ international accounts when explicit or implicit intermediation fees exist. Footnote clarifies assimilation to BPM6 paragraph 3.10 definition of an agent arranging a transaction between two other units for a fee (based on GN C.4).
    - Payments from producers to DIPs following the “net approach” (GN DZ.9) are recorded under trade-related services, provided they are cross-border transactions. Additional details on “net approach” and DIPs in Chapter 16 Digitalization.

- P. Personal, Cultural, and Recreational Services
  - Coverage maintained with minor updates:
    - Tele-health/tele-education included under Other personal, cultural, and recreational services (10.168/10.169 already provide guidance on health services provided remotely/educational services through internet).

- Q. Government Goods and Services n.i.e.
  - Scope remains unchanged from BPM6.

- Note:
  - *Italicized footnote/notation from source preserved where present (for supplementary items).*

### Additional methodological guidance on government goods and services n.i.e.
- Recommend providing additional methodological and compilation guidance on the compilation of government goods and services n.i.e. in respect of the specific products to be included under Other services supplied by and to governments.
- Guidance should be aligned with CPC divisions 91 (public administration and other services provided to the community as a whole; compulsory social security services) and CPC division 99 (Services provided by extraterritorial organizations and bodies).
- Objective: enhance the consistency between cross border transactions and the SNA.

### Schematic overview and chapter structure
- Schematic and chapter structure elements listed:
  - "10 Schematic Overview"
  - I Introduction
  - Definition of Services
  - Time of Recording and Valuation
  - Table 11.1 Overview of Services Account
  - II Classification of Services, including the subsections A–Q (as listed above)
  - "11 References"

### References, supporting materials, and stakeholders consulted
- References and supporting guidance notes cited include:
  - GNs C.1, C.3, C.4, C.5, C.6, C.7, DZ.5, DZ.7, DZ.8, DZ.9, F.7, F.12, F.13, F.14, G.5, G.8, G.9, etc.
  - Clarification Note on The Statistical Treatment of    Negative Interest Rates (CN.3)
  - Clarification Note on The Treatment of Freight and Insurance Associated to Merchanting and the Geographical Allocation of Net Merchanting (CN.10)
  - BPM7 Chapters 10,15,16, and Annex 5
  - System of National Accounts 2008
  - Manual on Statistics of International Trade in Services 2010 (MSITS 2010)
  - Handbook on Measuring Digital Trade
  - International Recommendations for Tourism Statistics 2008
  - UN Handbook on Financial Production, Flows and Stocks in the System of National Accounts
  - UNECE Guide to Measuring Global Production
  - Central Product Classification Ver 2.1 (and its update)
- Key stakeholders consulted:
  - System of National Account and Balance of Payments Manual editors
  - OECD

*International Monetary Fund*

### Section 1

### BPM7 Chapter 11. Services Account: Annotated Outline

### I. Introduction — scope, definitions, and structure
- BPM7 Chapter 11 is a new BPM chapter split from existing Chapter 10 to cover the services account exclusively.
- Updates align terminology and coverage with 2008 SNA paragraphs 6.16–6.22 (and its update), Box 1.1, and MSITS 2010.
- Introduces the definition of fee-based digital intermediation platform (DIP) services (recommended in the Handbook on Measuring Digital Trade): online fee-based intermediation services enabling transactions between multiple buyers and multiple sellers, without the intermediation platform taking economic ownership of the goods or rendering-services that are being sold (intermediated).
- Clarifications and cross-manual consistency:
  - Intermediation services (including digital intermediation) are not separately identified in the balance of payments services classification (following GN C.6), but supplementary items could be introduced in MSITS 2010 update and EBOPS revision.
  - Digital supply and use tables (following GN DZ.5) will provide insights on DIPs; DIPs are identified as one of the “digital” industries under that framework.
  - Measurement of cloud computing in balance of payments will be briefly mentioned (following GN DZ.8; GN under preparation).
  - Digitalization aspects covered in more detail in Chapter 16 (Digitalization).
  - Digital trade further discussed in Annex 5 (Selected Issues on Trade).
- Presentation and cross-references:
  - BPM6 Table 10.1 will be modified to present an overview of the services account only—17 main standard service categories.
  - Additional breakdowns/supplemental presentations (e.g., trade in services by currency in Annex 5; exports/imports by characteristics of the trading enterprise in Chapter 15 Globalization).
- Authors/clearance noted: Prepared by Venkat Josyula (BPM editor, IMF), Peter van de Ven (SNA lead) and cleared by Carlos Sánchez-Muñoz (BPM Project Manager).
- Chapter structure: one separate section in addition to Introduction (Section II—classification of services). See Schematic Overview.

- Table 11.1 — Overview of Services Account (17 main standard service categories):
  - Manufacturing services on physical inputs owned by others
  - Maintenance and repair services n.i.e.
  - Transport
  - Travel
  - Construction
  - Insurance and Pension services
  - Financial services
  - Charges for the use of intellectual property n.i.e.
  - Telecommunication services
  - Computer and information services
  - Research and development services
  - Professional and management consulting services
  - Trade-related services
  - Operating leasing services
  - Technical and other business services
  - Personal, cultural and recreational services
  - Government goods and services n.i.e.

### II. Classification of Services — main updates and category-level changes
- General approach:
  - Classification updated with additional first-level standard service categories to improve correspondence with the Central Product Classification (CPC).
  - Classification remains mainly product-based, but transactor-based for travel, construction, and government goods and services n.i.e.
  - If new services are identified during the ongoing CPC revision, the balance of payments classification will reflect them where relevant.
  - Note: revised draft CPC to be circulated to expert groups; final CPC expected to be adopted by the UNSC in March 2023 (as referenced).

A. Manufacturing services on physical inputs owned by others
- Subsection maintained from BPM6 with updates:
  - Numerical examples from BPM6 Box 10.1 moved to new Box 11.1; includes a GN C.4–based numerical example contrasting (1) processing-type arrangements (manufacturing services on physical inputs owned by others) and (2) factoryless goods producer (FGP)-type arrangements.
  - Box 10.2 expanded to new Box 11.2 to explain FGPs and include decision tree from GN C.4, Annex II, with links to Section II of the Globalization chapter.

B. Maintenance and Repair Services
- Maintained as in BPM6 with no changes.

C. Transport
- Maintained mostly as in BPM6 with minor update:
  - Reference to the Box on package tours included in the updated subsection on travel provided in paragraph 10.77.
  - Ongoing discussion with SNA editors on inconsistency between BPM6 and 2008 SNA regarding recording freight services provided by a carrier resident in the importing economy.

D. Travel
- Scope and measurement as in BPM6 with important updates:
  - Paragraph 10.86 updated to clarify goods and services provided free to nonresidents by government and NPISH known as social transfers in kind are included under travel (examples: free health services to a foreign tourist from a hospital within general government; free educational services to a foreign student from a university within general government).
  - Social transfers in kind will be explained in the updated chapter on Secondary Income Account, consistent with SNA.
- Package tours:
  - Clarified not a new product but a basket of at least three major services following TSA: (i) the services themselves (e.g., transport, accommodation); (ii) services provided by the tour operator; and (iii) the margin of the travel agency selling the tour (usually different from the tour operator) (GN C.7). Definition follows IRTS 2008 and updated SNA; emphasizes cross-border unbundling.
- Health related travel:
  - Scope of “medical reasons” follows IRTS 2008 paragraph 3.17 definition of “health and medical care” (list preserved verbatim in source):
    - “Health and medical care covers services received from hospitals, clinics, convalescent homes, health and social institutions, thalassotherapy, health and spa resorts, other specialized places to receive medical treatments based on medical advice, as well as cosmetic surgeries using medical facilities and services”.
  - Travel expenses of patients’ companions included under “other personal travel” treating them as “normal travelers”.
- Education related travel:
  - Clarification on treatment of companions of education-related travelers to be provided (based on a clarification note to be prepared by BEA).
- Other travel-related:
  - Following GN C.1, supplementary breakdown of travel to include personal, cultural and recreation services (acquired by travelers) as a distinct item under other services (in addition to Health and Educational services).

E. Construction
- Concepts and coverage unchanged from BPM6 except:
  - Following GN C.1, a separate supplementary breakdown for construction abroad (1.A.b.5.1) and construction in the compiling economy (1.A.b.5.2) may be provided for (a) constructions and (b) construction services, aligned with CPC divisions 53 (physical outputs of construction activities provided in less than a year) and 54 (services provided in constructing the physical output), respectively.

F. Insurance and Pension Services
- BPM6 coverage maintained with updates:
  - GN F.12: treatment of hybrid insurance products explained. Hybrid products mix life insurance (financial claims arise regardless of an event occurrence—i.e., insurance with a saving component) and nonlife insurance (claims arise only if an event occurs). Classification into life (financial account) or nonlife (current transfers) depends on predominant feature. Term life insurance continues to be included in nonlife insurance (as in BPM6).
  - Further details in Annex 8 “Insurance and Pensions”.
  - Takaful and Re-takaful arrangements discussed in Chapter 17 “Islamic Finance and Insurance”.
  - Insurance services through fintech (InsurTech) covered under insurance and pension services (GN F.7); digitalization aspects in Chapter 16.

G. Financial Services
- BPM6 coverage maintained with updates:
  - Explicit charges: additional information/links on service charges on purchases of IMF resources and commitment fees associated with undrawn balances under stand-by or extended arrangements with the IMF; further details in Annex 9 “Positions and Transactions with IMF”.
  - Fintech: financial services provided by fintech (e.g., payment services/peer-to-peer lending services/other financial services such as capital raising/investment management enabled by Fintech) are classified in financial services without new service categories. Insurance services via Fintech classified under insurance and pension services. Sectorization of Fintech companies discussed in Chapter 4; classification of financial instruments provided by Fintech in Chapter 5; detailed fintech coverage in Chapter 16.
  - Margins on buying and selling transactions: no change in underlying concept from BPM6; further elaboration and mention of practical compilation challenges. Additional compilation guidance and tradeoffs (survey-based, estimation, mixed approach) to be provided in updated BPM6 Compilation Guide; countries should assess materiality when deciding to compile this item (based on GN F.13 guidance).
  - Factoring: guidance on income received by the factor (as fee) to be provided with references to factoring transactions in other BPM7 chapters (based on GN F.14).
  - FISIM and negative interest rates: paragraphs 10.134 and 10.135 to be updated. While FISIM should be positive irrespective of positive or negative interest rates (since output cannot be negative), negative interest rates raise doubts on reference rates used for FISIM calculation and raise risk of negative FISIM if banks offer interest rates higher than reference rates to retain depositors. Compilers should carefully review reference rates to avoid negative FISIM. (Updated SNA will also include guidance on negative interest rates and possible impact on FISIM.)

H. Charges for the Use of Intellectual Property n.i.e.
- Subsection maintained with important updates:
  - Include GN DZ.7–based definition of Intellectual property products (IPP):
    - “Intellectual property products are the result of research, development, investigation, or innovation leading to knowledge or the creation of artificial intelligence systems that the developers can market or use to their own benefit in production because use of the knowledge or system is restricted by means of legal or other protection.”
  - Clarification on IPP sale/purchase transactions to be provided.
  - Cross-reference to Section III, Chapter 15 (Globalization) for determining economic ownership of IPPs among MNE units and recording related transactions.
  - Issues relating to economic ownership and outright sale/purchase of IPPs to be discussed with SNA editors for consistent guidance across updated manuals.

I. Telecommunication Services
- Telecommunication maintained as a distinct first-level category (1.A.b.9).

J. Computer and Information Services
- Telecommunication, computer, and information services split into two first-level categories (following GN C.6):
  - 1.A.b.9 Telecommunications services
  - 1.A.b.10 Computer, and information services
    - 1.A.b.10.1 Computer services* (supplementary item)
    - 1.A.b.10.2 Information services* (supplementary item)
- Computer and information services will include cloud computing services (delivery of computing power, database storage, and other IT resources). Definition of cloud computing (based on GN DZ.8), measurement challenges, and links to Chapter 16 Digitalization added.

K. Research and Development Services
- Identified as a first-level category (1.A.b.11 in reorganized structure for business services).

L. Professional and Management Consulting Services
- Identified as a first-level category (1.A.b.12 in reorganized structure for business services).

M. Trade-Related Services
- Identified as a first-level category (1.A.b.13); to include intermediation fees where appropriate as a supplementary “of which” item in international accounts of partner countries.

N. Operating Leasing Services
- Identified as a first-level category (1.A.b.14); references to IFRS 16 to note non-alignment with BPM/SNA economic ownership concepts (based on GN C.5). Concepts of dry and wet leasing of aircrafts and their treatment explained (paragraph 12.34 BPM6 CG referenced).

O. Technical and Other Business Services
- Other business services category split into five first-level categories (following GN C.6) with coverage:
  - 1.A.b.11 Research and development services
  - 1.A.b.12 Professional and management consulting services
  - 1.A.b.13 Trade-related services
  - 1.A.b.14 Operating leasing services
  - 1.A.b.15 Technical and other business services (covers BPM6 items: (i) Architectural, engineering, and other technical services (10.151(a)); (ii) Waste treatment and de-pollution, agricultural, and mining services (10.151(b)); and (iii) Other business services (10.151(e))).
- Merchanting of services:
  - Following GN C.4, reference to “services merchanting” in paragraph 10.160 will be removed. Conceptually, “merchanting of services” is deemed impossible because services cannot be traded with ownership rights; services are generally produced and consumed simultaneously and delivered directly from producer to consumer.
  - Services can be intermediated by a third person for a fee; such fees should be recorded under trade-related services (1.A.b.13) as a supplementary “of which” item in partner countries’ international accounts when explicit or implicit intermediation fees exist. Footnote clarifies assimilation to BPM6 paragraph 3.10 definition of an agent arranging a transaction between two other units for a fee (based on GN C.4).
  - Payments from producers to DIPs following the “net approach” (GN DZ.9) are recorded under trade-related services, provided they are cross-border transactions. Additional details on “net approach” and DIPs in Chapter 16 Digitalization.

P. Personal, Cultural, and Recreational Services
- Coverage maintained with minor updates:
  - Tele-health/tele-education included under Other personal, cultural, and recreational services (10.168/10.169 already provide guidance on health services provided remotely/educational services through internet).

Q. Government Goods and Services n.i.e.
- Scope remains unchanged from BPM6.

*Italicized footnote/notation from source preserved where present (for supplementary items).
  
*BPM7 Chapter 11. Services Account: Annotated Outline*

### Section 2

### bpm7-chapter-11-servivces-account-annotated-outline - Section 2

### Additional methodological guidance on government goods and services n.i.e.
- Recommend providing additional methodological and compilation guidance on the compilation of government goods and services n.i.e. in respect of the specific products to be included under Other services supplied by and to governments.
- Guidance should be aligned with CPC divisions 91 (public administration and other services provided to the community as a whole; compulsory social security services) and CPC division 99 (Services provided by extraterritorial organizations and bodies).
- Objective: enhance the consistency between cross border transactions and the SNA.

### Schematic overview and chapter structure (as listed)
- "10 Schematic Overview"
- I Introduction
- Definition of Services
- Time of Recording and Valuation
- Table 11.1 Overview of Services Account
- II Classification of Services, including:
  - A. Manufacturing Services on Physical Inputs Owned by Others
    - (Box 11.1 Numerical example to explain the recording of manufacturing services on physical inputs owned by others, FGPs, and difference with merchanting and re-exports in Box 10.1)
    - (Box 10.2 Recording of Global Manufacturing Arrangements-updated as Box 11.2)
  - B. Maintenance and Repair Services n.i.e.
  - C. Transport
  - D. Travel
  - E. Construction
  - F. Insurance and Pension Services
  - G. Financial services
  - H. Charges for the use of intellectual property n.i.e.
  - I. Telecommunication Services
  - J. Computer and Information Services
  - K. Research and Development Services
  - L. Professional and Management Consulting Services
  - M. Trade-related Services
  - N. Operating Leasing Services
  - O. Technical and Other Business Services
  - P. Personal, Cultural and Recreational Services
  - Q. Government Goods and Services n.i.e.
- "11 References"

### References and supporting materials cited
- GNs C.1, C.3, C.4, C.5, C.6, C.7, DZ.5, DZ.7, DZ.8, DZ.9, F.7, F.12, F.13, F.14, G.5, G.8, G.9, etc.
  - These guidance notes are posted at Update of the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6) (imf.org).
- Clarification Note on The Statistical Treatment of    Negative Interest Rates (CN.3)
- Clarification Note on The Treatment of Freight and Insurance Associated to Merchanting and the Geographical Allocation of Net Merchanting (CN.10)
- BPM7 Chapters 10,15,16, and Annex 5
- System of National Accounts 2008
- Manual on Statistics of International Trade in Services 2010 (MSITS 2010)
- Handbook on Measuring Digital Trade
- International Recommendations for Tourism Statistics 2008
- UN Handbook on Financial Production, Flows and Stocks in the System of National Accounts
- UNECE Guide to Measuring Global Production
- Central Product Classification Ver 2.1 (and its update)

### Key stakeholders consulted
- System of National Account and Balance of Payments Manual editors
- OECD

---


_Source: https://www.imf.org/-/media/files/data/statistics/bmp7/final-annotated-outlines/bpm7-chapter-11-servivces-account-annotated-outline.pdf_