## Terminology and Branding

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---

### Purpose, context, and key motivations
- Purpose and context (Guidance Note prepared by the Committee on Methods and Tools (CMTT)):
  - Macroeconomic statistics should be presented and communicated so users can fully understand and benefit from their analytical power, quality, scope, and comparability.
  - The terms used in the economic accounting statistical standards (EASSs) and their branding require a review and update along with an intentional communication strategy.
  - Part of the communication strategy is harmonisation and alignment of sophisticated and precise technical terms across the System of National Accounts (SNA), Balance of Payments Manual (BPM) and Government Finance Statistics Manual (GFSM) to improve monitoring of international trade, government fiscal balances and overall economic activity.
  - The Guidance Note (GN) was prepared by named experts under the supervision of Mr. Sanjiv Mahajan (United Kingdom: Chair, CMTT).
  - The note was presented at the IMF’s Balance of Payments Statistics Committee (the Committee) meeting on October 28, 2021 and was subsequently sent for global consultation; comments were taken on board from the March 2022, October 2022 and March 2023 Joint AEG/BOPCOM meetings.
- Key motivation:
  - The Advisory Expert Group (AEG), at its thirteenth Meeting, recognised that while the SNA brand is perceived to be strong, it is not effectively communicated and stressed the need for more user-friendly terminology while maintaining technical precision.
- GN structure:
  - (i) review of concepts, terminologies and labels across the SNA, BPM and GFS and proposals for harmonisation or alignment;
  - (ii) proposal to revise or amend certain terms or definitions in the manuals to include more descriptive terminology without disregarding precision; and
  - (iii) examples of “often used terms” in a user-friendly language useful for communication with non-specialist users like the media/general public.
- CMTT proposal:
  - Recommendations in the GN be included as part of a chapter in the SNA, BPM, and next GFSM titled "Economic statistics – Communication Practices and Recommendations."

### Existing alignment, presentational differences, and identified terminology gaps
- Alignment and presentation:
  - There is close alignment between the 2008 SNA and BPM6, but presentational differences remain (for example, SNA rest of the world accounts vs. BPM presentation from resident units).
  - BPM6 uses a functional breakdown for investment income and the financial account; the 2008 SNA uses a financial instrument breakdown.
  - The SNA’s rest of the world accounts are presented from the point of view of non-resident units; the balance of payments presents transactions from the point of view of resident units. These are presentation differences, not terminology per se.
- Key terminological differences identified between 2008 SNA and BPM6 (preserved exact phrasing):
  - 2008 SNA: Resources — BPM6: Debits
  - 2008 SNA: Uses — BPM6: Credits
  - 2008 SNA: Stocks — BPM6: Positions
  - 2008 SNA: Allocation of primary income account — BPM6: Primary income account
  - 2008 SNA: External account of goods and services — BPM6: Goods and services account
  - 2008 SNA: External assets and liabilities — BPM6: International Investment Position
  - 2008 SNA: Net acquisition of liabilities — BPM6: Net incurrence of liabilities
  - 2008 SNA: Statistical discrepancy — BPM6: Net errors and omissions
- SNA versus GFSM 2014 differences (selected exact examples):
  - 2008 SNA: Resources — GFSM 2014: Revenue
  - 2008 SNA: Uses — GFSM 2014: Expense
  - 2008 SNA: Market output — GFSM 2014: Sales of Goods and Services (excl. administrative fees and sales from non-market units when not at market prices) plus changes in the inventories of work in progress and finished goods.
  - 2008 SNA: Intermediate consumption — GFSM 2014: Use of goods and services + goods and services used in own-account capital formation + portion of interest which in SNA is recognised as FISIM + element of insurance premia which in SNA is recognised as service charges
  - 2008 SNA: Gross capital formation — GFSM 2014: Net investment in nonfinancial assets + Consumption of fixed capital - Transactions in non-produced assets
  - 2008 SNA: Gross fixed capital formation — GFSM 2014: Net investment in fixed assets + Consumption of fixed capital
  - 2008 SNA: Net capital formation — GFSM 2014: Net investment in non-financial assets - Transactions in non-produced assets
  - 2008 SNA: Changes in inventories — GFSM 2014: Net transactions in Inventories
  - 2008 SNA: Acquisitions less disposals of valuables — GFSM 2014: Net transactions in Valuables
  - 2008 SNA: Acquisitions less disposals of non-produced assets — GFSM 2014: Net transactions in Non-produced assets
  - 2008 SNA: Acquisitions less disposals of contracts, leases and licenses — GFSM 2014: Net transactions in Contracts, leases, and licenses
  - 2008 SNA: Purchases less sales of goodwill and marketing assets — GFSM 2014: Net transactions in Goodwill and marketing assets
- Observations:
  - BPM terminology aligns more closely to accounting terminology, whereas SNA terminology applies to broader economic concepts.
  - GFSM terminology is closer to accounting/bookkeeping terminology; SNA terminology is broader.
  - Where SNA entries mirror GFSM entries, scope exists to consider common terminology; conceptual coverage differences (e.g., treatment of FISIM and insurance services) may justify maintaining distinct terms.

### Proposed harmonisation of key concepts and conventions
- Overall approach:
  - Amendments categorised as:
    - (i) harmonisation of concepts;
    - (ii) amendments to accounts;
    - (iii) amendments to conventions/labels; and
    - (iv) amendments to terms/glossary.
- Proposed alignment across SNA, BPM and GFSM (preserved exact phrasing where given):
  - SNA: Resources — BPM: Credits — GFSM: Revenue — Proposal: Revenue
  - SNA: Uses — BPM: Debits — GFSM: Expense — Proposal: Expenditure
  - Changes in inventories / Net transactions in Inventories — Proposal: Changes in inventories
  - Acquisitions less disposals of valuables / Net transactions in Valuables — Proposal: Acquisitions less disposals of valuables
  - Acquisitions less disposals of non-produced assets / Net transactions in non-produced assets — Proposal: Acquisitions less disposals of non-produced assets
  - Acquisitions less disposals of contracts, leases and licenses / Net transactions in Contracts, leases, and licenses — Proposal: Acquisitions less disposals of contracts, leases and licenses
  - Purchases less sales of goodwill and marketing assets / Net transactions in Goodwill and marketing assets — Proposal: Purchases less sales of goodwill and marketing assets
  - Statistical discrepancy — BPM: Net errors and omissions — Proposal: Statistical discrepancy
- Specific harmonisation suggestions:
  - Consider replacing “resources/uses” (SNA) and “credits/debits” (BPM) and “revenue/expense” (GFSM) with a common terminology, possibly revenue/expenditure for the production, income and expenditure accounts across all three EASSs.
  - In the balance of payments capital account, where credits/debits are used, consider aligning with the SNA capital account by using “changes in assets/changes in liabilities”.
  - Harmonise “statistical discrepancy” (SNA, GFSM) and “net errors and omissions” (BPM) to the single term “statistical discrepancy” across all three standards.
- Amendments to SNA account labels (current → proposed; exact wording preserved):
  - The allocation of primary income account → The allocation of income account (balancing item will not change)
  - The secondary distribution of income account → Current transfers account (for BOP this implies to replace secondary income by transfer income)
  - The use of disposable income account → The use of income account
  - Several accounts proposed to remain: The production account, The generation of income account, The capital account, The financial account, Other changes in the volume of assets account, Balance Sheets — Proposed Update: No change
- Rationale:
  - Users without technical knowledge may not understand terms like allocation of primary income account and secondary distribution of income account; more self-explanatory alternatives are suggested.
  - Use of functional descriptions (e.g., use of income account) may be clearer than embedding balancing item names.

### Amendments to aggregates and labels — communication focus
- Communication guidance:
  - National Statistical Offices often use technical terms that are not easily understood by non-specialist users; the GN highlights the need for user-friendly labels and cautions that jargon can reduce engagement and understanding.
  - Where SNA aggregates have no direct GFSM equivalent (for example, market output), different descriptive terms can be acceptable; where one-to-one relationships exist, a common terminology could be adopted if no conceptual difference exists.
- Proposed harmonised label mappings (presented in the GN — exact proposals preserved):
  - Constant prices → In volume terms
  - Consumption of fixed capital → Depreciation
  - Compensation of employees → Remuneration of employees
  - Financial Intermediation Services Indirectly Measured → Financial service on loans and deposits
  - Financial Lease → Finance lease
  - Imputed Rental → Owner-occupied housing services
  - Net exports of goods and services (under merchanting) → Exports, less imports, of goods and services (under merchanting)
  - Net (non-life) insurance premiums → Total (non-life) insurance premiums less service charges
  - Net re-insurance premiums → Total re-insurance premiums less service charges
  - Net social contributions → Total social contributions less service charges
  - Net fees (guarantees) → Total fees (guarantees) less service charges
  - Output for own final use → Goods and services produced for own final use
  - Product balance → Balance of the supply and use of products
  - Rent → Rent from natural resources
  - Resource lease → Natural resource lease
  - Trade margin → Distribution margin
  - Balance on trade in goods → Balance on international trade in goods
  - Balance on trade in services → Balance on international trade in services

### Simplifying technical terms and user-friendly glossary
- Two-step implementation approach:
  - Step 1: For main terms used in communication with the media/general public, develop short explanations in an easier to understand language suitable for social media, FAQs, and general dissemination.
  - Step 2: For the target group "informed user," supplement the short glossary entries with more detailed articles in user-friendly language.
- Selected suggested simple term replacements (from Table 5; exact phrasing preserved):
  - "Constant prices" — Suggested amendment: "In volume terms"
  - "Compensation of employees" — Suggested amendment: "Remuneration of employees"
  - "Consumption of fixed capital" — Suggested amendment: "Depreciation"
  - "Financial Intermediation Services Indirectly Measured" — Suggested amendment: "Financial service on loans and deposits"
  - "Financial Lease" — Suggested amendment: "Finance lease"
  - "Imputed Rental" — Suggested amendment: "Owner-occupied housing services"
  - "Rent" — Suggested amendment: "Rent on natural resources"
  - "Resource lease" — Suggested amendment: "Natural resource lease"
  - "Trade margin" — Suggested amendment: "Distribution margin"
- Examples of user-friendly explanations (exact excerpts preserved):
  - "Actual final consumption (by households)": "Actual final consumption is the value of goods and services consumed by households, including goods and services provided in-kind by general government or NPISHs."
  - "Collective Consumption Expenditure": "Expenditures by general government and NPISHs on goods and services for the collective benefit of society such as public administration, infrastructure or defense."
  - "Consumption of Fixed Capital": long explanatory text describing decline in value, exclusion of unforeseen obsolescence and valuation at replacement costs.
  - "Gross Domestic Product": "Gross income from production on the domestic territory..." (three approaches: production, expenditure and income)
  - "Gross National Income": "Gross income from production earned by residents..." (as provided)
- Rationale:
  - Technical terms are essential for methodology and comparability but not all target user groups understand them; user-friendly alternatives and explanations support outreach to the media and the general public while preserving conceptual precision.

### Use of "gross" versus "net" concepts — assessment and explicit recommendations
- Key observations:
  - The terms "gross" and "net" are used in various ways and often misunderstood; the principal SNA distinction between "gross" and "net" for current and capital account balancing items is the inclusion/exclusion of consumption of fixed capital (CFC) (see 2008 SNA paragraphs 3.190–3.198).
  - CFC is difficult to measure and differs from company accounting depreciation (national accounts use current cost accounting; company accounts mostly use historic cost accounting).
  - Recording financial transactions can be on a "gross" or "net" basis depending on analytical needs (e.g., flow of funds recorded gross; financial account recorded net).
  - Multiple shorthand uses of "gross" and "net" (e.g., net acquisitions = acquisitions less disposals) create user confusion.
  - Growing user interest exists in "net" aggregates for environmental accounts and sustainability.
- CMTT recommendations (explicit proposals preserved):
  - (i) Use the terms “gross” and “net” in the current accounts and the capital account of SNA and balance of payments only to indicate whether an aggregate includes or excludes consumption of fixed capital.
  - (ii) In other cases, use the context as laid out in the 2008 SNA and BPM6; avoid other uses of “gross” and “net” and instead state full descriptions (e.g., "acquisitions less disposals", "statistical discrepancies") or alternative terms (e.g., "total premiums less service charges" replacing "net premiums").
  - Encourage statistical producers to improve the quality of estimates of capital stock and CFC.
  - Present "net" aggregates alongside "gross" aggregates in official releases to give more prominence to "net" measures (examples: net domestic product, net national income).
- Notes on future developments:
  - A separate development will reflect the costs of depletion of natural resources in the 2025 SNA in the production accounts, alongside CFC in the Gross to Net step (covered in GN CM.4).
  - The SNA update research program aims to better articulate differences between CFC (produced assets) and depletion of natural resources (non-produced assets).

### Branding, naming conventions, and release strategy
- Identified problem:
  - Competing and inconsistent naming strategies (references to release years, version and editions) are not useful.
- Proposed naming conventions and options:
  - Option 1 — Edition approach (brand as standards): Example proposed branding for next SNA: The Economic Accounting Statistical Standard: System of National Accounts, 20xx.
  - Option 2 — Series approach under "Macroeconomic Statistics": Manuals branded as "Macroeconomic Statistics – System of National Accounts", "Macroeconomic Statistics – Balance of Payments and International Investment Position", "Macroeconomic Statistics – Government Finance Statistics."
  - Umbrella approach proposed:
    - Headline: Economic Accounting Statistical Standards (EASSs) to cover manuals in different statistical domains; original labels (year or edition) may continue to be used in both the series and umbrella approaches.
- Domain labeling and specificity proposals:
  - Amend label of “SNA accounts” to national economic or macro-economic accounts.
  - Change term “GFS statements” to government finance accounts or reports, as appropriate.
  - Proposal to re-label the balance of payments was removed following feedback from the 2023 Joint AEG/BOPCOM Meeting.
  - Suggestion: joint presentation of updated manuals in 2025 to strengthen common branding and highlight shared update themes (digitalisation, globalisation, well-being and sustainability).
- Branding and release recommendations reiterated:
  - Umbrella name proposed: Economic Accounting Statistical Standards (EASSs).
  - Recommended domain name adjustments reiterated: National Accounts → National Economic Accounts; Governments Finance Statistics Statements → Governments Finance Statistics Reports.

### Consultation outcomes, rejected proposals, and implementation cautions
- Consultation highlights (meetings and compiled notes):
  - July 2021 AEG meeting: general support for proposed new terminology; requested additional review time; concern about moving away from "date stamping" the SNA toward a versioning approach.
  - October and November 2021 BOPCOM and AEG meetings: committees agreed the note should be sent for global consultation and supported greater harmonisation.
  - Members recommended close consultation with key users (central banks, statistical offices), examine country/political sensitivities, retain well-known terms unless strong arguments exist to change them, and further explain "gross" and "net" uses.
- Specific proposal outcomes:
  - Some amendments lacked clear majority support and were left aside; feedback presented at joint 18.AEG / 38. BOPCOM meeting in March 2022.
  - An earlier proposal to adjust "Balance of Payments/International Investment Positions" to "Balance of Overseas Payments/International Investment Positions" was removed following feedback presented at the joint AEG/BOPCOM Meeting in March 2023.
  - The Balance of Payments/International Investment Positions was instead proposed to be adjusted to "Balance of International Transactions and Investment Positions."

### Annex III — Use of “Gross” and “Net” Concepts (overview and links)
- Overview:
  - The terms "gross" and "net" are used in various ways in economic and environmental statistics and can be misunderstood; producers and users need to be aware of the definition(s), context and meaning.
  - The 2008 SNA (paragraphs 3.190-198) provides a summary of the use of "gross" and "net" in the national accounting framework.
- What is CFC? (exact definition preserved):
  - CFC is "the decline, during the course of the accounting period, in the current value of the stock of fixed assets owned and used by a producer as a result of physical deterioration, normal obsolescence or normal accidental damage."
  - CFC is not an explicit transaction but is recognised as a cost to the business and is difficult to measure.
  - Distinction from company accounting depreciation: National accounts use current cost accounting (current replacement cost); company accounts mostly use historic cost accounting (historic replacement cost).
- Conceptual and arithmetic links preserved (selected examples exactly as given):
  - Arithmetic type links (Gross variable(s) → Net variable):
    - Acquisitions / Disposals → Net acquisitions is acquisitions less disposals (fixed assets or financial assets)
    - Purchases / Sales → Net purchases is purchases less sales (or vice versa)
    - Exports / Imports → Net exports or net trade is exports less imports (or vice-versa)
    - Premiums / Claims → Net premiums is premiums less claims
    - Sales / Invoiced VAT → Sales net of invoiced VAT
    - Revenues / Expenses → Net revenues (or net operating balance) is revenues less expenses
    - Lending / Borrowing → Net lending is lending less borrowing
    - Gross income / Income tax → Net Income is income less tax
    - Assets / Liabilities → Net worth is assets (non-financial and financial) less liabilities
    - Net international investment position is the stock of external financial assets less the stock of external liabilities.
  - Terminology type links:
    - Changes in liabilities → Net incurrence of liabilities
    - Changes in assets → Net acquisition of financial assets
    - Changes in assets and liabilities → Changes in net worth
    - Net lending or borrowing → Net financial balance

*International Monetary Fund — Guidance Note prepared by the Committee on Methods and Tools (CMTT).*

### SECTION I: INTRODUCTION

### SECTION I: INTRODUCTION

### Purpose and context
- Macroeconomic statistics should be presented and communicated so users can fully understand and benefit from their analytical power, quality, scope, and comparability.
- The terms used in the economic accounting statistical standards (EASSs) and their branding require a review and update along with an intentional communication strategy.
- Part of the communication strategy is harmonisation and alignment of sophisticated and precise technical terms across the System of National Accounts (SNA), Balance of Payments Manual (BPM) and Government Finance Statistics Manual (GFSM) to improve monitoring of international trade, government fiscal balances and overall economic activity.
- The Guidance Note (GN) was prepared by Mr. Albert Braakmann (Federal Statistical Office of Germany, Lead Author), Celestino Giron (ECB), John Verrinder (Eurostat), Achille Pegoue and David Bailey (IMF), Joao Carlos Fonseca (IPSASB), Henry Vargas Campos (Costa Rica), Luke Croydon (United Kingdom), Litia Simbangala (Zambia), Mr. James Tebrake (IMF) and Ms. Francien Berry (IMF), under the supervision of Mr. Sanjiv Mahajan (United Kingdom: Chair, CMTT).
- The note was presented at the IMF’s Balance of Payments Statistics Committee (the Committee) meeting on October 28, 2021 and was subsequently sent for global consultation; comments were taken on board from the March 2022, October 2022 and March 2023 Joint AEG/BOPCOM meetings.

### Key motivations and findings
- The Advisory Expert Group (AEG), at its thirteenth Meeting, recognised that while the SNA brand is perceived to be strong, it is not effectively communicated and stressed the need for more user-friendly terminology while maintaining technical precision.
- The GN contains three sections:
  - (i) a review of concepts, terminologies and labels across the SNA, BPM and GFS and proposals for further harmonisation or alignment;
  - (ii) a proposal to revise or amend certain terms or definitions in the manuals to include more descriptive terminology without disregarding precision; and
  - (iii) examples of “often used terms” in a user-friendly language useful for communication with non-specialist users like the media/general public.
- The CMTT proposes that the recommendations in the GN be included as part of a chapter in the SNA, BPM, and next GFSM titled "Economic statistics – Communication Practices and Recommendations."

### Communication challenge
- Different EASSs have distinct histories, methodologies and audiences; deliberate efforts during the last updates aligned BPM and GFSM concepts with the SNA as far as possible, but terminology and presentation differences remain.
- User-facing terminology should be made more accessible to non-specialists without compromising the technical precision needed for accurate interpretation, transparency and international comparability.

---

### SECTION II: EXISTING MATERIAL

### Review outcomes: alignment and remaining differences
- There is close alignment between the 2008 SNA and BPM6, but presentational differences remain (for example, SNA rest of the world accounts vs. BPM presentation from resident units).
- The BPM6 uses a functional breakdown for investment income and the financial account; the 2008 SNA uses a financial instrument breakdown.
- The SNA’s rest of the world accounts are presented from the point of view of non-resident units; the balance of payments presents transactions from the point of view of resident units. These are presentation differences, not terminology per se.
- Key terminological differences identified between 2008 SNA and BPM6:
  - 2008 SNA: Resources — BPM6: Debits
  - 2008 SNA: Uses — BPM6: Credits
  - 2008 SNA: Stocks — BPM6: Positions
  - 2008 SNA: Allocation of primary income account — BPM6: Primary income account
  - 2008 SNA: External account of goods and services — BPM6: Goods and services account
  - 2008 SNA: External assets and liabilities — BPM6: International Investment Position
  - 2008 SNA: Net acquisition of liabilities — BPM6: Net incurrence of liabilities
  - 2008 SNA: Statistical discrepancy — BPM6: Net errors and omissions
- The BPM terminology aligns more closely to accounting terminology, whereas the SNA terminology applies to broader economic concepts.
- Consideration can be given to harmonising “debits/credits” and “uses/resources” terminology and to harmonising “net acquisition of liabilities” (SNA) with “net incurrence of liabilities” (BPM).
- The 2008 SNA uses “statistical discrepancy” broadly; BPM6’s “net errors and omissions” specifically refers to the balance of payments non-financial/financial account discrepancy. Consideration can be given to using the common term “statistical discrepancy” across standards.

### Review outcomes: 2008 SNA and GFSM 2014
- GFSM 2014 updated guidelines and harmonised with other macroeconomic manuals, but intentional differences remain because of different analytical purposes.
- Key existing differences include treatment of government production activities, own-account capital formation, and degree of consolidation.
- Terminology differences identified between 2008 SNA and GFSM 2014 (selected examples preserved exactly as in source):
  - 2008 SNA: Resources — GFSM 2014: Revenue
  - 2008 SNA: Uses — GFSM 2014: Expense
  - 2008 SNA: Market output — GFSM 2014: Sales of Goods and Services (excl. administrative fees and sales from non-market units when not at market prices) plus changes in the inventories of work in progress and finished goods.
  - 2008 SNA: Intermediate consumption — GFSM 2014: Use of goods and services + goods and services used in own-account capital formation + portion of interest which in SNA is recognised as FISIM + element of insurance premia which in SNA is recognised as service charges
  - 2008 SNA: Gross capital formation — GFSM 2014: Net investment in nonfinancial assets + Consumption of fixed capital - Transactions in non-produced assets
  - 2008 SNA: Gross fixed capital formation — GFSM 2014: Net investment in fixed assets + Consumption of fixed capital
  - 2008 SNA: Net capital formation — GFSM 2014: Net investment in non-financial assets - Transactions in non-produced assets
  - 2008 SNA: Changes in inventories — GFSM 2014: Net transactions in Inventories
  - 2008 SNA: Acquisitions less disposals of valuables — GFSM 2014: Net transactions in Valuables
  - 2008 SNA: Acquisitions less disposals of non-produced assets — GFSM 2014: Net transactions in Non-produced assets
  - 2008 SNA: Acquisitions less disposals of contracts, leases and licenses — GFSM 2014: Net transactions in Contracts, leases, and licenses
  - 2008 SNA: Purchases less sales of goodwill and marketing assets — GFSM 2014: Net transactions in Goodwill and marketing assets
- GFSM terminology is closer to accounting/bookkeeping terminology; SNA terminology is broader. Where SNA entries in the general government account are mirrors of GFSM entries, there is scope to consider common terminology.
- Differences in aggregates (for example, intermediate consumption vs use of goods and services) may be driven by conceptual coverage (e.g., treatment of FISIM and insurance services) and may justify maintaining distinct terms where user data realities differ.
- The GN notes the public understanding risk of technical jargon: a study concluded that use of economic jargon (e.g., GDP and ‘real terms’) can make economics inaccessible and negatively affect understanding of economic statistics.

---

### SECTION III: OPTIONS CONSIDERED — TERMINOLOGY

### Overall approach
- The CMTT proposes further harmonisation of terminology in the SNA, BPM and the next GFSM. Amendments are categorised as:
  - (i) harmonisation of concepts;
  - (ii) amendments to accounts;
  - (iii) amendments to conventions/labels; and
  - (iv) amendments to terms/glossary.

### Proposed harmonisation of key concepts (extracted from Table 3)
- Proposed alignment across SNA, BPM and GFSM (preserved exact phrasing where given):
  - SNA: Resources — BPM: Credits — GFSM: Revenue — Proposal: Revenue
  - SNA: Uses — BPM: Debits — GFSM: Expense — Proposal: Expenditure
  - Changes in inventories / Net transactions in Inventories — Proposal: Changes in inventories
  - Acquisitions less disposals of valuables / Net transactions in Valuables — Proposal: Acquisitions less disposals of valuables
  - Acquisitions less disposals of non-produced assets / Net transactions in non-produced assets — Proposal: Acquisitions less disposals of non-produced assets
  - Acquisitions less disposals of contracts, leases and licenses / Net transactions in Contracts, leases, and licenses — Proposal: Acquisitions less disposals of contracts, leases and licenses
  - Purchases less sales of goodwill and marketing assets / Net transactions in Goodwill and marketing assets — Proposal: Purchases less sales of goodwill and marketing assets
  - Statistical discrepancy — BPM: Net errors and omissions — Proposal: Statistical discrepancy

- Specific harmonisation suggestions:
  - Consider replacing “resources/uses” (SNA) and “credits/debits” (BPM) and “revenue/expense” (GFSM) with a common terminology, possibly revenue/expenditure for the production, income and expenditure accounts across all three EASSs.
  - In the balance of payments capital account, where credits/debits are used, consider aligning with the SNA capital account by using “changes in assets/changes in liabilities”.
  - Harmonise “statistical discrepancy” (SNA, GFSM) and “net errors and omissions” (BPM) to the single term “statistical discrepancy” across all three standards.

### Amendments to accounts and domains (extracted from Table 4)
- The CMTT proposes updating labels of some SNA accounts to be more intuitive for users. Proposed updates (preserving exact current and proposed wording):
  - Current SNA Terminology: The production account — Proposed Update: No change
  - Current SNA Terminology: The generation of income account — Proposed Update: No change
  - Current SNA Terminology: The allocation of primary income account — Proposed Update: The allocation of income account
    - Note: the balancing item will not change.
  - Current SNA Terminology: The secondary distribution of income account — Proposed Update: Current transfers account
    - Note: for BOP this implies to replace secondary income by transfer income.
  - Current SNA Terminology: The use of disposable income account — Proposed Update: The use of income account
  - Current SNA Terminology: The capital account — Proposed Update: No change
  - Current SNA Terminology: The financial account — Proposed Update: No change
  - Current SNA Terminology: Other changes in the volume of assets account — Proposed Update: No change
  - Current SNA Terminology: Balance Sheets — Proposed Update: Balance Sheets

- Rationale and notes:
  - Users without technical knowledge may not understand terms like allocation of primary income account and secondary distribution of income account; more self-explanatory alternatives are suggested.
  - The use of disposable income account and use of adjusted disposable income account embed the balancing item name and may be better labelled by their functional description (e.g., use of income account and use of adjusted income account).
  - Given sectoral balancing items (e.g., primary income), corresponding account names (e.g., secondary income) should be adjusted to maintain consistency.

### Amendments to aggregates / labels — communication focus
- National Statistical Offices often use technical terms that are not easily understood by non-specialist users; the GN highlights the need for user-friendly labels and cautions that jargon can reduce engagement and understanding.
- Where SNA aggregates have no direct GFSM equivalent (for example, market output), different descriptive terms can be acceptable; where one-to-one relationships exist, a common terminology could be adopted if no conceptual difference exists.

*IMF Guidance Note — SECTION I: INTRODUCTION*

### 23.      Precise technical terms in the SNA and other macroeconomic statistics are crucial for

### Terminology and Branding (Guidance by CMTT)

### Simplifying technical terms — proposed alternative terms (from Table 5)
- 2008 SNA term: "Constant prices" — Suggested amendment: "In volume terms" — Rationale: "Previous years’ prices used as standard for deflating aggregates but some producers still use constant prices. In volume terms covers both cases."
- 2008 SNA term: "Compensation of employees" — Suggested amendment: "Remuneration of employees" — Rationale: "More user-friendly term since “compensation” has a mixed meaning."
- 2008 SNA term: "Consumption of fixed capital" — Suggested amendment: "Depreciation" — Rationale: "The term depreciation is simpler and more widely understood. Depreciation is already used by several national statistical institutes."
- 2008 SNA term: "Financial Intermediation Services Indirectly Measured" — Suggested amendment: "Financial service on loans and deposits" — Rationale: "Proposal focuses on the basic idea, avoiding the technical measurement method."
- 2008 SNA term: "Financial Lease" — Suggested amendment: "Finance lease" — Rationale: "Easier language"
- 2008 SNA term: "Imputed Rental" — Suggested amendment: "Owner-occupied housing services" — Rationale: "Gives the concept and avoids confusing rent and rental"
- 2008 SNA term: "Rent" — Suggested amendment: "Rent on natural resources" — Rationale: "More clarity of what is covered"
- 2008 SNA term: "Resource lease" — Suggested amendment: "Natural resource lease" — Rationale: "More clarity of what is covered"
- 2008 SNA term: "Trade margin" — Suggested amendment: "Distribution margin" — Rationale: "Make clear that trade margins not only occur in retail / wholesale trade but also in other industries."

### User-friendly explanations and glossary (from Table 6 and recommendations)
- Findings and rationale:
  - Technical terms in the SNA and other macroeconomic statistics are crucial for methodological discussions and international comparability, but not all are immediately understood by all target user groups.
  - The CMTT proposes developing user-friendly alternatives and explanations to aid communication with the media and the general public while preserving conceptual precision.
- Suggested short user-friendly explanations (examples from Table 6):
  - "Actual final consumption (by households)": "Actual final consumption is the value of goods and services consumed by households, including goods and services provided in-kind by general government or NPISHs."
  - "Collective Consumption Expenditure": "Expenditures by general government and NPISHs on goods and services for the collective benefit of society such as public administration, infrastructure or defense."
  - "Consumption of Fixed Capital": "Consumption of fixed capital measures the decline in the value of the fixed assets used in production during the reporting period by enterprises and governments (as well as dwelling owners). Fixed assets decline in value due to normal wear and tear, foreseeable ageing (obsolescence) and a normal rate of accidental damage. Unforeseen obsolescence, major catastrophes, and the depletion of natural resources, however, are not included. The valuation is at replacement costs (current market prices) and not at (historic) acquisition costs like in business accounting."
  - "Gross Domestic Product": "Gross income from production on the domestic territory. Gross Domestic Product measures the value added (i.e., economic output minus all intermediate inputs required to produce this output) of all producers on the domestic territory, during a given time period. In practice GDP can be compiled by three approaches, the production, the expenditure and the income approach."
  - "Gross National Income": "Gross income from production earned by residents. Gross National Income measures the total income earned by residents of an economy as a result of their involvement in production in the domestic territory as well as abroad, during a given time period."
- Implementation approach (two-step proposal):
  - Step 1: For main terms used in communication with the media/general public, develop short explanations in an easier to understand language suitable for social media, FAQs, and general dissemination.
  - Step 2: For the target group "informed user," supplement the short glossary entries with more detailed articles in user-friendly language.

### Use of "gross" versus "net" concepts — assessment and recommendations
- Key observations:
  - The terms "gross" and "net" are used in various ways and often misunderstood; use extends beyond the 2008 SNA leading to confusion.
  - The principal SNA distinction between "gross" and "net" for current and capital account balancing items is the inclusion/exclusion of consumption of fixed capital (CFC) (see 2008 SNA paragraphs 3.190–3.198).
  - CFC is difficult to measure due to assumptions about asset life lengths, rate of depreciation, deflation, capital stock, and inclusion of intangibles; CFC in national accounts differs from company accounting depreciation (national accounts use current cost accounting; company accounts mostly use historic cost accounting).
  - Recording financial transactions can be on a "gross" or "net" basis depending on analytical needs (e.g., flow of funds recorded gross; financial account recorded net).
  - Other uses of "gross" and "net" are often shorthand (e.g., net acquisitions = acquisitions less disposals); such multiple meanings create user confusion.
  - There is growing user interest in "net" aggregates for environmental accounts and sustainability, and "net" aggregates can be more reflective of actual production costs; measurement challenges limit cross-country comparability.
- CMTT recommendations (explicit proposals):
  - (i) Use the terms “gross” and “net” in the current accounts and the capital account of SNA and balance of payments only to indicate whether an aggregate includes or excludes consumption of fixed capital.
  - (ii) In other cases, use the context as laid out in the 2008 SNA and BPM6; avoid other uses of “gross” and “net” and instead state full descriptions (e.g., "acquisitions less disposals", "statistical discrepancies") or alternative terms (e.g., "total premiums less service charges" replacing "net premiums").
  - Encourage statistical producers to improve the quality of estimates of capital stock and CFC.
  - Present "net" aggregates alongside "gross" aggregates in official releases to give more prominence to "net" measures (examples: net domestic product, net national income).
- Notes on future developments:
  - A separate development will reflect the costs of depletion of natural resources in the 2025 SNA in the production accounts, alongside CFC in the Gross to Net step (covered in GN CM.4).
  - The SNA update research program aims to better articulate differences between CFC (produced assets) and depletion of natural resources (non-produced assets).

### Branding and communication strategy options
- Challenges and objectives:
  - The SNA principles have expanded beyond core sequence of accounts; users produce thematic accounts (tourism, transport, sports, creative sector, food chain, environment).
  - Non-specialists find the term "system of national accounts" potentially limited and overly focused on accounting; rebranding could improve outreach.
  - International agencies should consider collective use of new technologies and branding strategies to target diverse user groups effectively.
- Existing multi-pronged strategy components and target-specific approaches:
  - Targeted communication:
    - Specialists (economists, statisticians): publications with a high technical dimension, intelligible but not popularized; methodology may be mixed with results; academic style acceptable.
    - General public ("non-specialists without power"): publications with low technical dimension, journalistic writing style, popularise headline results, methodological elements in boxes.
    - Decision-makers and journalists ("non-specialists with power"): publications with the lowest technical dimension, eliminate technical aspects unless specifically requested.
  - Branding: use of leitmotiv or motto-theme to reaffirm presence and improve recognition across audiences.
- Examples of time-lasting imprint/straplines from statistical organisations:
  - Eurostat: "Your key to European Statistics"
  - INSEE (France): "Measure to understand (Mesurer pour comprendre)"
  - BEA (USA): "The world’s trusted source for accurate and objective data about the U.S. economy"
  - Statistics Canada: "Serving Canada with high-quality statistical information that matters"
  - IBGE (Brazil): "To portray Brazil by providing the information required to the understanding of its reality and the exercise of citizenship"
  - Statistics South Africa: "The South Africa I know, the home I understand / Improving lives through data ecosystems"

*Guidance Note prepared by the Committee on Methods and Tools (CMTT), IMF.*

### 44.      Tracing back the previous editions of the SNA reveals that different branding have been

### Terminology and Branding of Economic Accounting Statistical Standards

### Historical branding of the SNA
- Previous manuals and naming:
  - Measurement of National Income and the Construction of Social Accounts in 1947
  - A System of National Accounts and Supporting Tables in 1953 (could be Rev. 1), 1960 (could be Rev. 2) and 1964 (could be Rev. 3)
  - A System of National Accounts in 1968 (could be Rev. 4)
  - the System of National Accounts, 1993 (1993 SNA)
  - System of National Accounts 2008 (2008, SNA)

### Findings on current inconsistencies and objectives
- Current EASSs include:
  - Government Finance Statistics Manual, 2014
  - System of National Accounts, 2008
  - 2016 Monetary and Financial Statistics Manual
  - sixth edition of the Balance of Payments and International Investment Position Manual
- Identified problem: competing and inconsistent naming strategies (references to release years, version and editions) are not useful.
- Objective: standardise naming conventions across EASSs to eliminate inconsistencies and create consistent branding and naming approach.

### Proposed naming conventions and branding options
- Option 1 — Edition approach (brand as standards):
  - Example proposed branding for next SNA: The Economic Accounting Statistical Standard: System of National Accounts, 20xx
  - Similar branding suggested for the BPM and GFSM.
  - Risk noted: potential confusion with prior changes (e.g., EU changeover from European System of National Accounts, third edition, to European System of National Accounts 1995) and potential neglect of the systematic interlinked nature of national accounts.
- Option 2 — Series approach under "Macroeconomic Statistics":
  - Manuals branded as:
    - Macroeconomic Statistics – System of National Accounts
    - Macroeconomic Statistics – Balance of Payments and International Investment Position
    - Macroeconomic Statistics – Government Finance Statistics
- Umbrella approach proposed:
  - Headline: Economic Accounting Statistical Standards (EASSs)
  - Would cover manuals in different statistical domains.
  - Original labels of the standards (year or edition) may continue to be used in both the series and umbrella approaches.

### Domain labeling, specificity, and adjustments proposed
- Concern: umbrella labels may be too general (e.g., "national accounts", "balance of payments").
- Proposal: adjust labelling to add specificity and improve delineation:
  - Amend label of “SNA accounts” to national economic or macro-economic accounts.
  - Change term “GFS statements” to government finance accounts or reports, as appropriate.
  - Proposal to re-label the balance of payments was removed following feedback from the 2023 Joint AEG/BOPCOM Meeting.
- Suggestion: joint presentation of updated manuals in 2025 to strengthen common branding and highlight shared update themes (digitalisation, globalisation, well-being and sustainability).

### Section V — Changes required to the SNA and other statistical domains (proposals)
- Name changes proposed:
  - Change allocation of primary income account and secondary distribution account to:
    - allocation of income account
    - current transfers account
- Conventions and labels alignment proposed across SNA, BPM, and next GFSM:
  - Align on the use of revenue and expenditure
  - Replace:
    - SNA resource and use convention
    - next GFS revenue and expense convention
    - BPM credit and debit convention (including use of changes in assets/changes in liabilities for the capital account of balance of payments)
  - For the SNA financial account:
    - Replace net acquisition of liabilities with net incurrence of liabilities
  - Replace term net errors and omissions (BPM) with consistent use of statistical discrepancy across all three manuals
- Proposed harmonisation of key aggregate terms and labels (as presented in Table 7 — Current Term → Aligned Proposal):
  - Changes in inventories / Net transactions in Inventories → Changes in inventories
  - Acquisitions less disposals of valuables / Net transactions in Valuables → Acquisitions less disposals of valuables
  - Acquisitions less disposals of non-produced assets / Net transactions in non-produced assets → Acquisitions less disposals of non-produced assets
  - Acquisitions less disposals of contracts, leases and licenses / Net transactions in Contacts, leases, and licenses → Acquisitions less disposals of contracts, leases and licenses
  - Purchases less sales of goodwill and marketing assets / Net transactions in Goodwill and marketing assets → Acquisitions less disposals of goodwill and marketing assets
  - Constant prices → In volume terms
  - Consumption of fixed capital → Depreciation
  - Compensation of employees → Remuneration of employees
  - Financial Intermediation Services Indirectly Measured → Financial service on loans and deposits
  - Financial Lease → Finance lease
  - Imputed Rental → Owner-occupied housing services
  - Net exports of goods and services (under merchanting) → Exports, less imports, of goods and services (under merchanting)
  - Net (non-life) insurance premiums → Total (non-life) insurance premiums less service charges
  - Net re-insurance premiums → Total re-insurance premiums less service charges
  - Net social contributions → Total social contributions less service charges
  - Net fees (guarantees) → Total fees (guarantees) less service charges
  - Output for own final use → Goods and services produced for own final use
  - Product balance → Balance of the supply and use of products
  - Rent → Rent from natural resources
  - Resource lease → Natural resource lease
  - Trade margin → Distribution margin
  - Balance on trade in goods → Balance on international trade in goods
  - Balance on trade in services → Balance on international trade in services
- Proposal to add to the main glossary user-friendly explanations in the SNA; a preliminary extract of such explanations is included in Annex II (further work ongoing).

### Branding and release recommendations reiterated
- Umbrella name proposed: Economic Accounting Statistical Standards (EASSs).
- Recommended domain name adjustments reiterated:
  - National Accounts → National Economic Accounts
  - Governments Finance Statistics Statements → Governments Finance Statistics Reports
- Joint presentation of updated manuals in 2025 recommended to highlight joint treatment of digitalisation, globalisation, and well-being and sustainability.

*International Monetary Fund — Communication Task Team (CMTT) guidance note proposals on terminology and branding*

### Annex III. Use of “Gross” and “Net” Concepts in Economic and Environmental Statistics

### Annex III. Use of “Gross” and “Net” Concepts in Economic and Environmental Statistics

### Overview
- The terms "gross" and "net" are used in various ways in economic and environmental statistics and can be misunderstood; producers and users need to be aware of the definition(s), context and meaning.
- The 2008 SNA (paragraphs 3.190-198) provides a summary of the use of "gross" and "net" in the national accounting framework.
- Key gross and net aggregates are linked across accounts, especially as balancing items for each account by institutional sector and the whole economy.
- Two main uses highlighted:
  - Gross vs net as related to consumption of fixed capital (CFC) and capital stock: net aggregates (net national income, net disposable income, net capital stock) play important but different roles from gross aggregates when estimating productive potential and capacity.
  - Recording of financial transactions: the financial account is recorded on a net basis, whereas flow of funds are recorded on a gross basis.

### What is CFC?
- CFC is "the decline, during the course of the accounting period, in the current value of the stock of fixed assets owned and used by a producer as a result of physical deterioration, normal obsolescence or normal accidental damage."
- CFC is a cost category that accrues over the whole period the fixed asset is available for productive purposes.
- CFC is not an explicit transaction but is recognised as a cost to the business and is difficult to measure.
- Distinction from company accounting depreciation:
  - National accounts use current cost accounting (current replacement cost) valuation.
  - Company accounts mostly use historic cost accounting (historic replacement cost).
- Users often use "CFC" and "depreciation" interchangeably, but they are not the same in national accounting terms.

### Overview of links in the System of National Accounts (SNA) framework
- Conceptual type links:
  - Net return to (fixed) capital relates to the mark-up in estimating the output of market producers' own-account capital formation.
  - Net social contributions: actual or imputed contributions made by households to social insurance schemes, excluding administrative fees.
  - Net fees: fees receivable plus fee supplements less the value of services consumed.
  - Net present value: method of discounting future earnings to produce a current value.
  - Note: Net is not the same as netting or consolidation.
- Arithmetic type links (Gross variable(s) → Net variable):
  - Acquisitions / Disposals → Net acquisitions is acquisitions less disposals (fixed assets or financial assets)
  - Purchases / Sales → Net purchases is purchases less sales (or vice versa)
  - Exports / Imports → Net exports or net trade is exports less imports (or vice-versa)
  - Premiums / Claims → Net premiums is premiums less claims
  - Sales / Invoiced VAT → Sales net of invoiced VAT
  - Revenues / Expenses → Net revenues (or net operating balance) is revenues less expenses
  - Lending / Borrowing → Net lending is lending less borrowing
  - Gross income / Income tax → Net Income is income less tax
  - Receiveable / Payable → Net current transfers is receiveable from abroad less payable to abroad
  - Assets / Liabilities → Net worth is assets (non-financial and financial) less liabilities
  - Net international investment position is the stock of external financial assets less the stock of external liabilities.
- CFC-related type links:
  - Components exist both on a gross basis and a net basis, for example: gross capital stock and net capital stock; gross operating surplus and net operating surplus.
- Terminology type links:
  - Changes in liabilities → Net incurrence of liabilities
  - Changes in assets → Net acquisition of financial assets
  - Changes in assets and liabilities → Changes in net worth
  - Net lending or borrowing → Net financial balance
  - Company accounts (GAAP and IFRS) vs National Accounts (SNA) terminology differences are noted.

### Key discussion outcomes and guidance from consultations and meetings
- Compiled by Sanjiv Mahajan (May 2014; October 2021).
- July 2021 AEG meeting:
  - Members generally supported the proposed new terminology for the International Macroeconomic Statistical Standards.
  - The CMTT noted members’ interventions that statistical recommendations and standards are under discussion in the UNSC.
  - Members requested additional time to review the guidance note and provide feedback on specific terms.
  - Concerns were raised about moving away from "date stamping" the SNA toward a versioning approach; this may be problematic for some countries that require "date stamping" to secure funding for implementation.
  - AEG supported CMTT’s proposal to develop a common glossary to align terms across SNA, BPM, and GFS; target for next version: end of September 2021.
- October and November 2021 BOPCOM and AEG meetings:
  - Both committees agreed the note should be sent for global consultation.
  - Members supported greater harmonisation and uniform language across statistical standards.
  - Recommendations for the CMTT included:
    - Conduct close consultation with key users including central banks, statistical offices, and other relevant institutions.
    - Examine country/political sensitivities to changes in terminologies (example: "labor costs" vs "compensation of employees").
    - Clarify whether proposed definitional changes in SNA would also be envisioned for the BPM.
    - Retain well-known terms unless strong supporting arguments exist to change them.
    - Further explain when "gross" and "net" can/should be used in economic and environmental statistics.
    - Note that SNA entries in the rest of the world (ROW) account are mirrors of BPM entries; changing conventions could be counterintuitive and potentially confusing for the balance of payments.
    - Caution that changing "GDP by production approach" to "GDP by industry" may cause confusion between accounting/compilation approach and analytical breakdown.
    - Concern that changing "Consumption of fixed capital" into "depreciation" may not capture that it refers to a cost (an expense).
    - Clarify the term "financial accounts" given variable scope across contexts (SNA accumulation accounts; external statistics balance of payments; sometimes including the IIP).
- Specific proposal discussions and rejections:
  - Some suggested amendments to align terms used by the 2008 SNA, BPM6 and/or GFSM2014 did not receive clear majority support and were left aside; feedback presented at joint 18.AEG / 38. BOPCOM meeting in March 2022.
  - An earlier proposal to adjust "Balance of Payments/International Investment Positions" to "Balance of Overseas Payments/International Investment Positions" (maintaining acronym "BOP/IIP") was removed following feedback presented at the joint AEG/BOPCOM Meeting in March 2023.
  - The Balance of Payments/International Investment Positions was instead proposed to be adjusted to "Balance of International Transactions and Investment Positions," underlining that this statistical domain covers economic transactions and stocks between residents and non-residents.

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_Source: https://www.imf.org/-/media/files/data/statistics/bpm6/approved-guidance-notes/cm2-terminology-and-branding.pdf_