## cr18351 - 1. Priority Recommendations ## Source details **Canonical URL:** [cr18351 - 1. Priority Recommendations](https://www.imf.org/-/media/files/publications/cr/2018/cr18351.pdf) ## Other formats - [Markdown version](/-/media/files/publications/cr/2018/cr18351.pdf.md) - [Structured JSON version](/-/media/files/publications/cr/2018/cr18351.pdf.json) --- ### Summary of mission outcomes and purpose - Main purpose: improve the quality of the GFS for nonfinancial public corporations (NFPCs) in Thailand by designing a simpler, but more complete, compilation system for GFS compilers in the Fiscal Policy Office (FPO), Ministry of Finance. - Mission support: Government of Japan’s government finance statistics (GFS) project for selected Asian countries. - Additional objectives: - Discuss general government GFS data compilation issues and recommend actions to improve data quality and consistency with other macroeconomic statistics. - Commend Public Debt Management Office (PDMO) for momentum in reporting timely, quarterly public sector debt statistics and encourage continuation of regular quarterly reporting. - Future TA focus: producing GFS balance sheets for the consolidated nonfinancial public sector and for public financial corporations, using a consistent set of public sector debt statistics (PSDS); later, produce higher-frequency fiscal data with broad coverage. ### Institutional coverage, priorities, and target dates - April 2019 - Institutional coverage: Start compiling actual, annual GFS data for eight macro-fiscally important NFPCs (Petroleum Authority of Thailand (PTT); Electricity Generating Authority of Thailand (EGAT); Provincial Electricity Authority (PEA); Mass Rapid Transit Authority (MRTA); Thai Airways International (THAI); Expressway Authority of Thailand; National Housing Authority (NHA); and Bangkok Mass Transit Authority (BMTA)), using the simplified data derivation and compilation system designed in Excel during the mission. Then, compile a timeseries of 8-10 years of GFS for the total universe of NFPCs in Thailand, based on the actual data from these eight NFPCs. - Responsible institution: Fiscal Policy Office, Ministry of Finance - December 2018 - Consistency: Review and revise, as necessary, the list of public entities (i.e., general government and state-owned enterprises) in Thailand to ensure consistency among the various sets of macroeconomic statistics (national accounts, external sector statistics, government finance statistics, and monetary and financial statistics). Furthermore, analyze the operations and nature of the Thailand Future Fund—established to fund public investment projects—to ensure its proper and consistent sectorization and treatment in the various sets of macroeconomic statistics. - Responsible institutions: Bank of Thailand; National Economic and Social Development Board; Ministry of Finance (Fiscal Policy Office, Public Debt Management Office, and State-Enterprise and Policy Office), with the Fiscal Policy Office taking the lead, as Chair of the GFS Committee - August 2018 - Start using the bridge table template provided by the mission to compile and report public sector debt statistics to the World Bank / IMF public sector debt database. - Responsible institution: Public Debt Management Office ### Key findings - Thailand’s general government GFS is generally of sound quality, but the significance of NFPCs calls for broader GFS coverage to capture fiscal and quasi-fiscal activities of these entities. - Existing NFPC GFS compilation: - Authorities started in 2010 to compile and disseminate annual GFS for a sub-group of four NFPCs (representing almost 80 percent of total NFPCs’ assets), but accuracy, timeliness, and coverage can be improved. - A February 2017 GFS TA mission found the compilers use a cumbersome, manual compilation method that leads to unintended errors and recommended simplifying the compilation method and expanding NFPC coverage. - Data sources and systems: - Mission designed a simpler compilation system using accounting financial statements of NFPCs; applicable to annual and quarterly statements. FPO will start with annual data. - SEPO plans to implement an Excel-based, quarterly financial data collection system for all state-owned enterprises in late 2018/early 2019; National Economic and Social Development Board cooperated in the questionnaire design. - SEPO’s planned data collection could be a promising supplementary source for NFPCs’ GFS starting later in 2019. - Intersectoral consistency: - Need for a thorough, joint review by macroeconomic statistics agencies of Thailand’s list of public entities to correctly classify entities into general government, nonfinancial public corporations, and financial public corporations; last such review was around 2009. - The Thailand Future Fund—established to fund public investment projects with financing securitized against future revenue flows from expressway tolls—requires careful sectoral classification. - General government GFS issues: - Differences between grants data at central and local government levels cause consolidation difficulties. - A longstanding statistical discrepancy between above- and below-the-line data; FPO has used transactions in “currency and deposits” to eliminate this discrepancy, which leads to inconsistencies with balance sheet “currency and deposits” and with monetary and financial statistics. - Public debt statistics: - PDMO commended for progress in compiling and disseminating quarterly PSDS according to international standard to the Fund and to the World Bank/IMF public debt database. ### Main recommendations (priority actions) - Compile actual, annual GFS data for eight macro-fiscally important NFPCs (PTT; EGAT; PEA; MRTA; THAI; Expressway Authority of Thailand; NHA; BMTA) using the simplified Excel compilation system designed during the mission; then compile a timeseries of 8-10 years of GFS for the total universe of NFPCs in Thailand, based on actual data from these eight NFPCs. - Supplement NFPC GFS estimates with actual data on the debt (D1 = debt securities and loans) of the total universe of NFPCs, as provided by PDMO, and explain any differences in data coverage in the metadata. - Review and revise, as necessary, the list of public entities (general government and SOEs) to ensure consistency among national accounts, external sector statistics, government finance statistics, and monetary and financial statistics. Analyze the operations and nature of the Thailand Future Fund to ensure proper and consistent sectorization and treatment of all its activities. - Start using the bridge table template provided by the mission to compile and report PSDS to the World Bank / IMF public sector debt database. - Use actual transactions in currency and deposits (GFS codes 3202, 3212, 3222), as reflected in bank accounts, and show any statistical discrepancies between above- and below-the-line transactions data in the “statistical discrepancy” line (GFS code NLBz) rather than subsuming it in “currency and deposits”. - Make local government grants revenue data consistent with central government grants expense data and record any difference in the local governments’ GFS as grants receivable (if local government grants revenue is less than central government grants expense) or grants payable (if local government grants revenue is more than central government grants expense). ### A simpler, more complete GFS compilation system for NFPCs — principles and approach - Mission designed a simpler system to derive GFS aggregates and balances from accounting financial statements of NFPCs; main principles: - Calculate total flows in assets and liabilities as closing balance sheet values minus opening balance sheet values. - Identify GFS other economic flows in assets and liabilities (revaluations and other changes in volume), which may appear in income/profit and loss statement, statement of changes in equity, and statement of comprehensive income. - Calculate GFS revenue and expense transactions which appear in income/profit and loss statement, statement of changes in equity, and—possibly—the statement of comprehensive income. - Calculate GFS transactions in nonfinancial assets, financial assets, and liabilities as the residual of total flows in assets and liabilities and other economic flows in assets and liabilities. - Note: Because transactions in nonfinancial assets represent acquisitions minus disposals minus consumption of fixed capital (depreciation), they do not provide an accurate picture of gross fixed investment by NFPCs. For gross fixed investment, use acquisitions of fixed assets (or total nonfinancial assets as a proxy if fixed assets are not available separately) in the notes to the financial statements. - Classify balance sheet items in accounting financial statements to their GFS categories. - Interlinkages: Transactions and other economic flows may appear in the income statement, statement of changes in equity, and statement of other comprehensive income; accounting financial statements (income/profit and loss, statement of changes in equity, balance sheet, and statement of comprehensive income) map to GFS statements (statement of operations, statement of other economic flows, balance sheet, and statement of source and uses of cash). ### Detailed steps for compiling GFS from accounting financial statements (Box 1) - 1. Verify consistency of accounting financial statements by (a) checking if the net profit/loss in income (profit and loss) statement is equal to the net profit/loss in the statement of changes in equity; and (2) checking if the total change in equity in the statement of changes in equity is equal to the total change in equity as reflected in the opening and closing balance sheets. - 2. Calculate total flows in assets and liabilities as the difference between the closing balance sheet and opening balance sheet values. - 3. Analyze the accounting financial statements (profit and loss statement, statement of other changes in equity, balance sheet, and, if available, statement of other comprehensive income) and map all the items (stocks and flows) in these statements to “top level” and “detailed level” GFS codes. The top-level GFS codes are for the “GFS Dashboard” while the detailed codes are for the GFS output tables. - 4. Compile a summary of other economic flows table in the same source data sheet in order to get the signs of the amounts correct. Because accounting sign conventions differ from GFS, it is important to get the signs of the other economic flows right, as well as whether they are increases/decreases in assets or increases/decreases in liabilities. The other economic flows top level and detailed coding is done in this summary table not in their original accounting statements (where the signs are not appropriate for GFS purposes). ### GFS compilation and validation requirements - Compile a derivation table that derives the net operating balance (transactions changing net worth) and other economic flows changing net worth. The sum of the two should equal the total change in equity in the accounting balance sheet and statement of changes in equity. - Compile a “GFS Dashboard” based on the top-level GFS codes in the source data sheet to serve as an internal-consistency check of the GFS data compiled, at both aggregated and detailed levels. Ideally, there should be no discrepancies in the GFS Dashboard data. - Compile detailed GFS statements (see Appendix I): statement of operations (transactions), statement of other economic flows, and balance sheet. A “total flows” statement is also compiled for the purpose of deriving transactions as total flows in assets and liabilities minus other economic flows (in assets and liabilities). - Verify data in the detailed GFS statements against the aggregates and balances in the GFS Dashboard to ensure accuracy at all times (built-in formulas serve this purpose). ### Recommended GFS tables for NFPCs - Statement of operations, showing: - total revenue - total expense - the net operating balance - the main categories of transactions in nonfinancial assets, financial assets, and liabilities. - Statement of other economic flows, showing the main categories of nonfinancial assets, financial assets, and liabilities. - Balance sheet, showing the main categories of nonfinancial assets, financial assets, and liabilities. ### Analytical scope and consolidation guidance - Use the NFPC tables (including revenue and expense) for individual NFPCs (example: EGAT). For the nonfinancial public sector (general government plus NFPCs), the same tables can be compiled excluding revenue and expense. - Revenue and expense of the nonfinancial public sector are of limited analytical value; revenue and expense of general government and NFPCs are more useful for macroeconomic analysis. - Stocks and flows in assets and liabilities for the total nonfinancial public sector are analytically useful provided that appropriate consolidation is applied (i.e., intra-sectoral stocks and flows are eliminated to avoid double-counting). - A consolidated nonfinancial public sector balance sheet is a recommended next step once broad coverage and consistent PSDS are in place; future TA missions can assist. ### Institutional recommendation on entity lists and sectorization - The total universe of NFPCs in Thailand is currently unclear. - One source is the list of 32 NFPCs which SEPO provided to the 2017 GFS mission. - A thorough, joint review by the relevant macroeconomic statistics compiling agencies is needed to: - properly classify public entities into general government, NFPCs, and financial public corporations; - determine the total universe of NFPCs in Thailand; - ensure the same lists are used by all compiling agencies; - disseminate the list indicating sectorization as a statistical metadata reference document. - Statistical sectorization of public entities in line with macroeconomic statistical principles may not always follow accounting or country groupings. ### Coverage observations from SEPO list and materiality - Based on the SEPO list of 32 NFPCs: - Eight macro-fiscally important NFPCs represent just under 80 percent of those 32 NFPCs (measured by assets). These eight are: Petroleum Authority of Thailand Public Co. Ltd.; Electricity Generating Authority of Thailand (EGAT); Provincial Electricity Authority (PEA); Mass Rapid Transit Authority of Thailand (MRTA); Thai Airways International (THAI); Expressway Authority of Thailand; National Housing Authority (NHA); and Bangkok Mass Transit Authority (BMTA). - Adding Metropolitan Electricity Authority (MEA), Airports Authorities of Thailand (AOT), CAT Telecom Public Co. Ltd., and TOT Public Co. Ltd. brings the sample to twelve NFPCs representing just over 90 percent of the total SEPO list of 32 NFPCs (measured by assets). - Based on the 2009 total universe of NFPCs, it is estimated that the current SEPO list of 32 NFPCs excludes 13 small NFPCs, each with assets less than THB 0.5 billion, so the omitted 13 have total assets less than THB 5 billion and their overall effect on total estimated NFPC activities is insignificant. - Total assets of the 32 NFPCs in the SEPO list is about THB 5.4 trillion. ### EGAT illustrative GFS figures (Appendix I; In millions of Thai Baht) Statement of operations (selected rows) - 1 Revenue 502,107.2 - 2 Expense 492,095.3 - NOB Net operating balance 10,011.9 - 31 Net investment in nonfinancial assets -2,793.2 - 311 Fixed assets -6,358.3 - 312 Inventories -333.4 - 313 Valuables 0.0 - 314 Nonproduced assets 3,898.5 - 2M Expenditure 489,302.1 - NLB Net lending/net borrowing 12,805.1 - NLBz Statistical discrepancy 0.0 - 32 Net acquisition of financial assets 7,207.5 - 3201 Monetary gold and SDRs 0.0 - 3202 Currency and deposits 6,932.2 - 3203 Debt securities 0.0 - 3204 Loans -4.1 - 3205 Equity and investment fund shares -790.7 - 3206 Insurance, pension, and std. guarantees schemes 0.0 - 3207 Financial derivatives and employee stock options 0.0 - 3208 Other accounts receivable 1,070.2 - 33 Net incurrence of liabilities -5,597.6 - 3301 SDRs 0.0 - 3302 Currency and deposits 0.0 - 3303 Debt securities 0.0 - 3304 Loans -17,907.9 - 3305 Equity and investment fund shares 0.0 - 3306 Insurance, pension, and std. guarantee schemes 1,068.2 - 3307 Financial derivatives and employee stock options 0.0 - 3308 Other accounts payable 11,242.0 - Memorandum item(s): - 311.1 Gross fixed investment Statement of Other Economic Flows (selected rows) - 9 Change in net worth: OEFs -10,011.9 - 91 Nonfinancial assets 17,534.0 - 911 Fixed assets 17,534.0 - 912 Inventories 0.0 - 913 Valuables 0.0 - 914 Nonproduced assets 0.0 - FNW_OEF Change in financial net worth: OEFs -27,545.8 - 92 Financial assets 1,338.1 - 9201 Monetary gold and SDRs 0.0 - 9202 Currency and deposits 0.8 - 9203 Debt securities 0.0 - 9204 Loans 0.0 - 9205 Equity and investment fund shares 1,337.3 - 9206 Insurance, pension, and std. guarantee schemes 0.0 - 9207 Financial derivatives and employee stock options 0.0 - 9208 Other accounts receivable 0.0 - 93 Liabilities 28,883.9 - 9301 SDRs 0.0 - 9302 Currency and deposits 0.0 - 9303 Debt securities 0.0 - 9304 Loans 924.8 - 9305 Equity and investment fund shares 27,959.2 - 9306 Insurance, pension, and std. guarantee schemes 0.0 - 9307 Financial derivatives and employee stock options 0.0 - 9308 Other accounts payable 0.0 Balance sheet (selected rows; In millions of Thai Baht) - Note: Total net worth in this GFS balance sheet is zero. This is because all assets and liabilities are valued at historic cost / face value and because equity and investment fund shares appear in the GFS balance sheet as part of liabilities and not, as in accounting financial statements, as a separate item from liabilities. If market valuation is used, net worth will be non-zero. - 6 Net worth 0.0 - 61 Nonfinancial assets 733,401.7 - 611 Fixed assets 680,614.6 - 612 Inventories 11,653.9 - 613 Valuables 0.0 - 614 Nonproduced assets 41,133.2 - FNW Financial net worth -733,401.7 - 62 Financial assets 252,904.5 - 6201 Monetary gold and SDRs 0.0 - 6202 Currency and deposits 108,836.7 - 6203 Debt securities 0.0 - 6204 Loans 42.8 - 6205 Equity and investment fund shares 69,145.6 - 6206 Insurance, pension, and std. guarantee schemes 0.0 - 6207 Financial derivatives and employee stock options 0.0 - 6208 Other accounts receivable 74,879.4 - 63 Liabilities 986,306.2 - 6301 SDRs 0.0 - 6302 Currency and deposits 0.0 - 6303 Debt securities 0.0 - 6304 Loans 396,693.3 - 6305 Equity and investment fund shares 431,014.3 - 6306 Insurance, pension, and std. guarantee schemes 16,661.5 - 6307 Financial derivatives and employee stock options 0.0 - 6308 Other accounts payable 141,937.2 - Memorandum item(s): - NFPCs gross debt (D4) as per balance sheets - NFPCs gross debt (D1) as per PDMO ### Appendix II — SEPO list of State-Owned Enterprises (Assets in Billions of Thai Baht; % of total) - 1 Petroleum Authority of Thailand (PTT Public Co. Ltd.) 2,114.5 39% - 2 Electricity Generating Authority of Thailand (EGAT) 867.7 16% - 3 Provincial Electricity Authority (PEA) 381.1 7% - 4 Mass Rapic Transit Authority of Thailand (MRTA) 326.7 6% - 5 Thai Airways International Public Co. Ltd. 287.4 5% - 6 Expressway Authority of Thailand 198.9 4% - 7 Metropolitan Electricity Authority 196.5 4% - 8 Airports of Thailand Public Co. Ltd. 171.9 3% - 9 CAT Telecom Public Co. Ltd. 160.8 3% - 10 TOT Public Co. Ltd. 147.4 3% - 11 Provincial Waterworks Authority 108.0 2% - 12 Marketing Organization for Farmers 77.5 1% - 13 Metropolitan Waterworks Authority 68.0 1% - 14 National Housing Authority 53.4 1% - 15 Port Authority of Thailand 47.2 1% - 16 Thailand Post Company Limited 25.3 0% - 17 Thailand Tobacco Monopoly 24.0 0% - 18 The Government Lottery Office 23.7 0% - 19 Industrial Estate Authority of Thailand 23.5 0% - 20 Dhanarak Asset Development Co. Ltd. 20.5 0% - 21 Government Pharmaceutical Organization 19.3 0% - 22 Areonautical Radio of Thailand Ltd. 13.4 0% - 23 Bangkok Mass Transit Authority (BMTA) 7.9 0% - 24 MC OT 7.2 0% - 25 Forest Industry Organization 4.8 0% - 26 The Transport Co. Ltd. 4.8 0% - 27 Public Warehouse Organization 4.5 0% - 28 Dairy Farming Promotion Organization of Thailand 2.4 0% - 29 Market Organization 1.7 0% - 30 Liquor Distillery Organization Excise Department 1.3 0% - 31 Fish Market Organization 1.0 0% - 32 Police Printing House 0.4 0% - Total 5,392.7 100% *International Monetary Fund — cr18351 (selected extracts).* ### 1. Priority Recommendations _____________________________________________________________________ 4 ### cr18351 - 1. Priority Recommendations _____________________________________________________________________ 4 ### Summary of mission outcomes and purpose - Main purpose: improve the quality of the GFS for nonfinancial public corporations (NFPCs) in Thailand by designing a simpler, but more complete, compilation system for GFS compilers in the Fiscal Policy Office (FPO), Ministry of Finance. - Mission support: Government of Japan’s government finance statistics (GFS) project for selected Asian countries. - Additional objectives: - Discuss general government GFS data compilation issues and recommend actions to improve data quality and consistency with other macroeconomic statistics. - Commend Public Debt Management Office (PDMO) for momentum in reporting timely, quarterly public sector debt statistics and encourage continuation of regular quarterly reporting. - Future TA focus: producing GFS balance sheets for the consolidated nonfinancial public sector and for public financial corporations, using a consistent set of public sector debt statistics (PSDS); later, produce higher-frequency fiscal data with broad coverage. ### Institutional coverage, priorities, and target dates (from Table 1) - April 2019 - Institutional coverage: Start compiling actual, annual GFS data for eight macro-fiscally important NFPCs (Petroleum Authority of Thailand (PTT); Electricity Generating Authority of Thailand (EGAT); Provincial Electricity Authority (PEA); Mass Rapid Transit Authority of Thailand (MRTA); Thai Airways International (THAI); Expressway Authority of Thailand; National Housing Authority (NHA); and Bangkok Mass Transit Authority (BMTA)), using the simplified data derivation and compilation system designed in Excel during the mission. Then, compile a timeseries of 8-10 years of GFS for the total universe of NFPCs in Thailand, based on the actual data from these eight NFPCs. - Responsible institution: Fiscal Policy Office, Ministry of Finance - December 2018 - Consistency: Review and revise, as necessary, the list of public entities (i.e., general government and state-owned enterprises) in Thailand to ensure consistency among the various sets of macroeconomic statistics (national accounts, external sector statistics, government finance statistics, and monetary and financial statistics). Furthermore, analyze the operations and nature of the Thailand Future Fund—established to fund public investment projects—to ensure its proper and consistent sectorization and treatment in the various sets of macroeconomic statistics. - Responsible institutions: Bank of Thailand; National Economic and Social Development Board; Ministry of Finance (Fiscal Policy Office, Public Debt Management Office, and State-Enterprise and Policy Office), with the Fiscal Policy Office taking the lead, as Chair of the GFS Committee - August 2018 - Start using the bridge table template provided by the mission to compile and report public sector debt statistics to the World Bank / IMF public sector debt database. - Responsible institution: Public Debt Management Office ### Key findings - Thailand’s general government GFS is generally of sound quality, but the significance of NFPCs calls for broader GFS coverage to capture fiscal and quasi-fiscal activities of these entities. - Existing NFPC GFS compilation: - Authorities started in 2010 to compile and disseminate annual GFS for a sub-group of four NFPCs (representing almost 80 percent of total NFPCs’ assets), but accuracy, timeliness, and coverage can be improved. - A February 2017 GFS TA mission found the compilers use a cumbersome, manual compilation method that leads to unintended errors and recommended simplifying the compilation method and expanding NFPC coverage. - Data sources and systems: - Mission designed a simpler compilation system using accounting financial statements of NFPCs; applicable to annual and quarterly statements. FPO will start with annual data. - SEPO plans to implement an Excel-based, quarterly financial data collection system for all state-owned enterprises in late 2018/early 2019; National Economic and Social Development Board cooperated in the questionnaire design. - SEPO’s planned data collection could be a promising supplementary source for NFPCs’ GFS starting later in 2019. - Intersectoral consistency: - Need for a thorough, joint review by macroeconomic statistics agencies of Thailand’s list of public entities to correctly classify entities into general government, nonfinancial public corporations, and financial public corporations; last such review was around 2009. - The Thailand Future Fund—established to fund public investment projects with financing securitized against future revenue flows from expressway tolls—requires careful sectoral classification. - General government GFS issues: - Differences between grants data at central and local government levels cause consolidation difficulties. - A longstanding statistical discrepancy between above- and below-the-line data; FPO has used transactions in “currency and deposits” to eliminate this discrepancy, which leads to inconsistencies with balance sheet “currency and deposits” and with monetary and financial statistics. - Public debt statistics: - PDMO commended for progress in compiling and disseminating quarterly PSDS according to international standard to the Fund and to the World Bank/IMF public debt database. ### Main recommendations (priority actions) - Compile actual, annual GFS data for eight macro-fiscally important NFPCs (PTT; EGAT; PEA; MRTA; THAI; Expressway Authority of Thailand; NHA; BMTA) using the simplified Excel compilation system designed during the mission; then compile a timeseries of 8-10 years of GFS for the total universe of NFPCs in Thailand, based on actual data from these eight NFPCs. - Supplement NFPC GFS estimates with actual data on the debt (D1 = debt securities and loans) of the total universe of NFPCs, as provided by PDMO, and explain any differences in data coverage in the metadata. - Review and revise, as necessary, the list of public entities (general government and SOEs) to ensure consistency among national accounts, external sector statistics, government finance statistics, and monetary and financial statistics. Analyze the operations and nature of the Thailand Future Fund to ensure proper and consistent sectorization and treatment of all its activities. - Start using the bridge table template provided by the mission to compile and report PSDS to the World Bank / IMF public sector debt database. - Use actual transactions in currency and deposits (GFS codes 3202, 3212, 3222), as reflected in bank accounts, and show any statistical discrepancies between above- and below-the-line transactions data in the “statistical discrepancy” line (GFS code NLBz) rather than subsuming it in “currency and deposits”. - Make local government grants revenue data consistent with central government grants expense data and record any difference in the local governments’ GFS as grants receivable (if local government grants revenue is less than central government grants expense) or grants payable (if local government grants revenue is more than central government grants expense). ### A simpler, more complete GFS compilation system for NFPCs — principles and approach - Mission designed a simpler system to derive GFS aggregates and balances from accounting financial statements of NFPCs; main principles: - Calculate total flows in assets and liabilities as closing balance sheet values minus opening balance sheet values. - Identify GFS other economic flows in assets and liabilities (revaluations and other changes in volume), which may appear in income/profit and loss statement, statement of changes in equity, and statement of comprehensive income. - Calculate GFS revenue and expense transactions which appear in income/profit and loss statement, statement of changes in equity, and—possibly—the statement of comprehensive income. - Calculate GFS transactions in nonfinancial assets, financial assets, and liabilities as the residual of total flows in assets and liabilities and other economic flows in assets and liabilities. - Note: Because transactions in nonfinancial assets represent acquisitions minus disposals minus consumption of fixed capital (depreciation), they do not provide an accurate picture of gross fixed investment by NFPCs. For gross fixed investment, use acquisitions of fixed assets (or total nonfinancial assets as a proxy if fixed assets are not available separately) in the notes to the financial statements. - Classify balance sheet items in accounting financial statements to their GFS categories. - Interlinkages: Transactions and other economic flows may appear in the income statement, statement of changes in equity, and statement of other comprehensive income; accounting financial statements (income/profit and loss, statement of changes in equity, balance sheet, and statement of comprehensive income) map to GFS statements (statement of operations, statement of other economic flows, balance sheet, and statement of source and uses of cash). ### Detailed steps for compiling GFS from accounting financial statements (Box 1) - 1. Verify consistency of accounting financial statements by (a) checking if the net profit/loss in income (profit and loss) statement is equal to the net profit/loss in the statement of changes in equity; and (2) checking if the total change in equity in the statement of changes in equity is equal to the total change in equity as reflected in the opening and closing balance sheets. - 2. Calculate total flows in assets and liabilities as the difference between the closing balance sheet and opening balance sheet values. - 3. Analyze the accounting financial statements (profit and loss statement, statement of other changes in equity, balance sheet, and, if available, statement of other comprehensive income) and map all the items (stocks and flows) in these statements to “top level” and “detailed level” GFS codes. The top-level GFS codes are for the “GFS Dashboard” while the detailed codes are for the GFS output tables. - 4. Compile a summary of other economic flows table in the same source data sheet in order to get the signs of the amounts correct. Because accounting sign conventions differ from GFS, it is important to get the signs of the other economic flows right, as well as whether they are increases/decreases in assets or increases/decreases in liabilities. The other economic flows top level and detailed coding is done in this summary table not in their original accounting statements (where the signs are not appropriate for GFS purposes). *International Monetary Fund — Thailand: Summary of Mission Outcomes and Priority Recommendations (cr18351 - 1. Priority Recommendations).* ### 5. In a separate sheet, compile a derivation table that derives the net operating balance (transactions ### 5. In a separate sheet, compile a derivation table that derives the net operating balance (transactions ### GFS compilation and validation requirements - Compile a derivation table that derives the net operating balance (transactions changing net worth) and other economic flows changing net worth. The sum of the two should equal the total change in equity in the accounting balance sheet and statement of changes in equity. - Compile a “GFS Dashboard” based on the top-level GFS codes in the source data sheet to serve as an internal-consistency check of the GFS data compiled, at both aggregated and detailed levels. Ideally, there should be no discrepancies in the GFS Dashboard data. - Compile detailed GFS statements (see Appendix I): statement of operations (transactions), statement of other economic flows, and balance sheet. A “total flows” statement is also compiled for the purpose of deriving transactions as total flows in assets and liabilities minus other economic flows (in assets and liabilities). - Verify data in the detailed GFS statements against the aggregates and balances in the GFS Dashboard to ensure accuracy at all times (built-in formulas serve this purpose). ### Recommended GFS tables for NFPCs (mission recommendation) - Statement of operations, showing: - total revenue - total expense - the net operating balance - the main categories of transactions in nonfinancial assets, financial assets, and liabilities. - Statement of other economic flows, showing the main categories of nonfinancial assets, financial assets, and liabilities. - Balance sheet, showing the main categories of nonfinancial assets, financial assets, and liabilities. ### Analytical scope and consolidation guidance - Use the NFPC tables (including revenue and expense) for individual NFPCs (example: EGAT). For the nonfinancial public sector (general government plus NFPCs), the same tables can be compiled excluding revenue and expense. - Revenue and expense of the nonfinancial public sector are of limited analytical value; revenue and expense of general government and NFPCs are more useful for macroeconomic analysis. - Stocks and flows in assets and liabilities for the total nonfinancial public sector are analytically useful provided that appropriate consolidation is applied (i.e., intra-sectoral stocks and flows are eliminated to avoid double-counting). - A consolidated nonfinancial public sector balance sheet is a recommended next step once broad coverage and consistent PSDS are in place; future TA missions can assist. ### Institutional recommendation on entity lists and sectorization - The total universe of NFPCs in Thailand is currently unclear. - One source is the list of 32 NFPCs which SEPO provided to the 2017 GFS mission. - A thorough, joint review by the relevant macroeconomic statistics compiling agencies is needed to: - properly classify public entities into general government, NFPCs, and financial public corporations; - determine the total universe of NFPCs in Thailand; - ensure the same lists are used by all compiling agencies; - disseminate the list indicating sectorization as a statistical metadata reference document. - Statistical sectorization of public entities in line with macroeconomic statistical principles may not always follow accounting or country groupings. ### Coverage observations from SEPO list and materiality - Based on the SEPO list of 32 NFPCs: - Eight macro-fiscally important NFPCs represent just under 80 percent of those 32 NFPCs (measured by assets). These eight are: Petroleum Authority of Thailand Public Co. Ltd.; Electricity Generating Authority of Thailand (EGAT); Provincial Electricity Authority (PEA); Mass Rapid Transit Authority of Thailand (MRTA); Thai Airways International (THAI); Expressway Authority of Thailand; National Housing Authority (NHA); and Bangkok Mass Transit Authority (BMTA). - Adding Metropolitan Electricity Authority (MEA), Airports Authorities of Thailand (AOT), CAT Telecom Public Co. Ltd., and TOT Public Co. Ltd. brings the sample to twelve NFPCs representing just over 90 percent of the total SEPO list of 32 NFPCs (measured by assets). - Based on the 2009 total universe of NFPCs, it is estimated that the current SEPO list of 32 NFPCs excludes 13 small NFPCs, each with assets less than THB 0.5 billion, so the omitted 13 have total assets less than THB 5 billion and their overall effect on total estimated NFPC activities is insignificant. - Total assets of the 32 NFPCs in the SEPO list is about THB 5.4 trillion. ### EGAT illustrative GFS figures (Appendix I; In millions of Thai Baht) Statement of operations (selected rows) - 1 Revenue 502,107.2 - 2 Expense 492,095.3 - NOB Net operating balance 10,011.9 - 31 Net investment in nonfinancial assets -2,793.2 - 311 Fixed assets -6,358.3 - 312 Inventories -333.4 - 313 Valuables 0.0 - 314 Nonproduced assets 3,898.5 - 2M Expenditure 489,302.1 - NLB Net lending/net borrowing 12,805.1 - NLBz Statistical discrepancy 0.0 - 32 Net acquisition of financial assets 7,207.5 - 3201 Monetary gold and SDRs 0.0 - 3202 Currency and deposits 6,932.2 - 3203 Debt securities 0.0 - 3204 Loans -4.1 - 3205 Equity and investment fund shares -790.7 - 3206 Insurance, pension, and std. guarantees schemes 0.0 - 3207 Financial derivatives and employee stock options 0.0 - 3208 Other accounts receivable 1,070.2 - 33 Net incurrence of liabilities -5,597.6 - 3301 SDRs 0.0 - 3302 Currency and deposits 0.0 - 3303 Debt securities 0.0 - 3304 Loans -17,907.9 - 3305 Equity and investment fund shares 0.0 - 3306 Insurance, pension, and std. guarantees schemes 1,068.2 - 3307 Financial derivatives and employee stock options 0.0 - 3308 Other accounts payable 11,242.0 - Memorandum item(s): - 311.1 Gross fixed investment Statement of Other Economic Flows (selected rows) - 9 Change in net worth: OEFs -10,011.9 - 91 Nonfinancial assets 17,534.0 - 911 Fixed assets 17,534.0 - 912 Inventories 0.0 - 913 Valuables 0.0 - 914 Nonproduced assets 0.0 - FNW_OEF Change in financial net worth: OEFs -27,545.8 - 92 Financial assets 1,338.1 - 9201 Monetary gold and SDRs 0.0 - 9202 Currency and deposits 0.8 - 9203 Debt securities 0.0 - 9204 Loans 0.0 - 9205 Equity and investment fund shares 1,337.3 - 9206 Insurance, pension, and std. guarantee schemes 0.0 - 9207 Financial derivatives and employee stock options 0.0 - 9208 Other accounts receivable 0.0 - 93 Liabilities 28,883.9 - 9301 SDRs 0.0 - 9302 Currency and deposits 0.0 - 9303 Debt securities 0.0 - 9304 Loans 924.8 - 9305 Equity and investment fund shares 27,959.2 - 9306 Insurance, pension, and std. guarantee schemes 0.0 - 9307 Financial derivatives and employee stock options 0.0 - 9308 Other accounts payable 0.0 Balance sheet (selected rows; In millions of Thai Baht) - Note: Total net worth in this GFS balance sheet is zero. This is because all assets and liabilities are valued at historic cost / face value and because equity and investment fund shares appear in the GFS balance sheet as part of liabilities and not, as in accounting financial statements, as a separate item from liabilities. If market valuation is used, net worth will be non-zero. - 6 Net worth 0.0 - 61 Nonfinancial assets 733,401.7 - 611 Fixed assets 680,614.6 - 612 Inventories 11,653.9 - 613 Valuables 0.0 - 614 Nonproduced assets 41,133.2 - FNW Financial net worth -733,401.7 - 62 Financial assets 252,904.5 - 6201 Monetary gold and SDRs 0.0 - 6202 Currency and deposits 108,836.7 - 6203 Debt securities 0.0 - 6204 Loans 42.8 - 6205 Equity and investment fund shares 69,145.6 - 6206 Insurance, pension, and std. guarantee schemes 0.0 - 6207 Financial derivatives and employee stock options 0.0 - 6208 Other accounts receivable 74,879.4 - 63 Liabilities 986,306.2 - 6301 SDRs 0.0 - 6302 Currency and deposits 0.0 - 6303 Debt securities 0.0 - 6304 Loans 396,693.3 - 6305 Equity and investment fund shares 431,014.3 - 6306 Insurance, pension, and std. guarantee schemes 16,661.5 - 6307 Financial derivatives and employee stock options 0.0 - 6308 Other accounts payable 141,937.2 - Memorandum item(s): - NFPCs gross debt (D4) as per balance sheets - NFPCs gross debt (D1) as per PDMO ### Appendix II — SEPO list of State-Owned Enterprises (Assets in Billions of Thai Baht; % of total) - 1 Petroleum Authority of Thailand (PTT Public Co. Ltd.) 2,114.5 39% - 2 Electricity Generating Authority of Thailand (EGAT) 867.7 16% - 3 Provincial Electricity Authority (PEA) 381.1 7% - 4 Mass Rapic Transit Authority of Thailand (MRTA) 326.7 6% - 5 Thai Airways International Public Co. Ltd. 287.4 5% - 6 Expressway Authority of Thailand 198.9 4% - 7 Metropolitan Electricity Authority 196.5 4% - 8 Airports of Thailand Public Co. Ltd. 171.9 3% - 9 CAT Telecom Public Co. Ltd. 160.8 3% - 10 TOT Public Co. Ltd. 147.4 3% - 11 Provincial Waterworks Authority 108.0 2% - 12 Marketing Organization for Farmers 77.5 1% - 13 Metropolitan Waterworks Authority 68.0 1% - 14 National Housing Authority 53.4 1% - 15 Port Authority of Thailand 47.2 1% - 16 Thailand Post Company Limited 25.3 0% - 17 Thailand Tobacco Monopoly 24.0 0% - 18 The Government Lottery Office 23.7 0% - 19 Industrial Estate Authority of Thailand 23.5 0% - 20 Dhanarak Asset Development Co. Ltd. 20.5 0% - 21 Government Pharmaceutical Organization 19.3 0% - 22 Areonautical Radio of Thailand Ltd. 13.4 0% - 23 Bangkok Mass Transit Authority (BMTA) 7.9 0% - 24 MC OT 7.2 0% - 25 Forest Industry Organization 4.8 0% - 26 The Transport Co. Ltd. 4.8 0% - 27 Public Warehouse Organization 4.5 0% - 28 Dairy Farming Promotion Organization of Thailand 2.4 0% - 29 Market Organization 1.7 0% - 30 Liquor Distillery Organization Excise Department 1.3 0% - 31 Fish Market Organization 1.0 0% - 32 Police Printing House 0.4 0% - Total 5,392.7 100% *International Monetary Fund — cr18351 (selected extracts)* --- _Source: https://www.imf.org/-/media/files/publications/cr/2018/cr18351.pdf_