## 1criea2020002

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### Summary of mission outcomes and priority recommendations
- TA mission by CAPTAC-DR: August 27 to September 7 (San Jose, Costa Rica) to assist Central Bank of Costa Rica (CBCR) in compiling non‑financial and financial balance sheets; requested in context of rebasing national accounts to 2017; follow‑up to March 2018 mission.
- Two purposes:
  - 1) Guidance to CBCR to develop statistical methods to estimate capital stock for the non‑financial private sector (NFPS).
  - 2) TA in compiling balance sheets as part of the annual accounts by institutional sector (AAIS).
- Methods and key outcome on capital stock (end of 2012):
  - Method i) Derive capital stock by type of assets based on grossing‑up factors from the 2012 annual economic survey.
  - Method ii) Calculate capital stock based on gross fixed capital formation (GFCF) series and service life assumptions.
  - Result: both methods produced similar results and an estimate of capital stock for the NFPS of about 42.7 percent of the total economy.
- Balance sheet compilation guidance:
  - Non‑financial assets by institutional sectors and total economy compiled; financial assets to be supplemented with financial statistics and IIP harmonized with national accounts.
  - Implementing recommendations will allow CBCR to publish balance sheets as part of new base year series to 2017.

- Table of Priority Recommendations (as presented):
  - January 2019 (Pending): Assign responsibility for compiling the balance sheets by institutional sector and subsector. — Responsible: CBCR
  - June 2019 (In progress): Develop processes for reconciling with financial statistics, balance of payments and government finance statistics. — Responsible: CBCR
  - January 2020: Complete all the components of the AAIS; investigate and resolve discrepancies. — Responsible: CBCR
- Further details and milestones recorded in action plan under Detailed Technical Assessment and Recommendations.

### Institutional arrangements and data gaps
- Task distribution within Macroeconomic Statistics Department (DEM):
  - FEM unit: integration of current and accumulation accounts by institutional sector; publishes Integrated Economic Accounts (IEA) with 2012 base year.
  - Institutional sector unit: compiles financial and government sectors and Government Finance Statistics (GFS), using SUGEF, SUGESE, and SUGEVAL; integrated within IEA.
  - FEM compiles accounts for non‑financial corporations, households, and nonprofit institutions serving households; both units prepare full sequence from production to asset balances.
- Coverage gaps:
  - Several sectors/subsectors lack balance sheets: other financial corporations (only limited BES information), local governments, some public non‑profit institutions in government, and the household sector.
  - For sectors sourced from administrative records, closing balances do not coincide with next year's opening balance (inconsistency across time).

### Non‑Financial Assets — A. Total economy (methodology, results, recommendations)
- Preferred method: Perpetual Inventory Method (PIM) per OECD Measuring Capital Manual; stock treated as cumulative investment flows adjusted for retirements and efficiency loss.
- For mission: net stock used as reference, employing GFCF by type of asset and implicit price indices (IPIs).
- Service life and parameter assumptions:
  - Service lives referenced from Tax depreciation rates (Income Tax Law) and Radio Communications regulation; intellectual property service lives identified for radio/television, films, videos.
  - Methodological parameters: α (asset improvement rate), 푏푏 (asset growth rate), δ (depreciation rate).
  - Theoretical improvement rate used: 0.2; asset growth rate equals average growth in GFCF by asset type; identified rates used for depreciation.
- Provisional balances (Table 2: Stocks and Balances of Assets, Millions of Colones):
  - Net stocks of assets in 2012, total economy: 29 704 144
  - Balance of assets of sectors with administrative records: 18 081 917
- Interpretation:
  - Difference corresponds to balance of four sectors/subsectors without balances: other non‑financial corporations; local governments; some non‑profit institutions that are part of the government; household sector.
- Asset account compilation guidance:
  - Compile an asset account for each produced and non‑produced non‑financial asset using balance sheet format: opening balance; capital account; other changes in volume; revaluation account; closing balance (becomes next period opening balance).
  - Recommendation aligned with 2008 SNA: measure nominal gain using the price of the particular asset; CBCR currently does not calculate nominal, neutral, and real gains separately—valuation should use specific asset prices.
- Change in inventories:
  - Asset balances for the change in inventories were not addressed during the mission; measurement needs to begin in 2012 to complete produced assets set.
- Recommended actions (A):
  - Change valuation criteria for revaluation account to apply the IPI of the relevant asset and ensure same price is applied across balance sheets of institutional sectors/subsectors.
  - Analyze valuations in financial statements or BES annexes to determine whether they are based on market prices for the reference year.

### Non‑Financial Assets — B. Other non‑financial private corporations (simplified PIM) — results and actions
- Dual methodological proposals for other non‑financial corporations lacking complete BES:
  - 1) Use all BES information for NFPS (large, special regimes, others) with statistical methods (see section C).
  - 2) Simplified PIM for total economy reference (as in section A).
- Purpose: test consistency between statistical estimates and PIM estimates and examine gaps by asset type.
- Results (Table 3: Balances of Total Fixed Assets for Other Non‑Financial Private Corporations, 2012, Millions of Colones):
  - Estimate with simplified PIM: 12,692,281
  - Estimate with expansions by statistical area: 11,830,431
  - Estimate with expansions by statistical area and asset type: 12,836,461
- Observations:
  - Two methods consistent for segment total; composition differences by asset type (non‑residential structures vs machinery and equipment) due to BES large companies composition.
- Recommended actions (B):
  - Review consistency of variables in Annex 5 of BES and specify to reporting entities the valuations requested.
  - Study accounting standards by regime and size to identify differences between accounting valuation and economic valuation; Annex 5 of BES expresses “Balances at historical value,” differing from market values required for national accounts asset measurements.

### Non‑Financial Assets — C. Other non‑financial private corporations (statistical method)
- Data sources for NFPS measurement:
  - Business register (REVEC).
  - Income database of Ministry of Finance (variables: assets and liabilities, revenue, costs, credits, expenditures, deductions).
  - BES for estimation of gross capital formation.
- Mission focus: use balance of non‑financial fixed assets declared by companies in random sample to determine totals by asset type and activity for 19,751 companies (rest of NFPS).
- Chosen year: 2012 (base year); 69 of 132 activities investigated; 2017 still processing.

- Estimation scenarios and initial aggregated results (Table 5: Initial Balance of Fixed Assets in 2012, Millions of Colones):
  - Random Sample: 277,945
  - Expanded by Company: 7,603,697,714
  - Expanded by Statistical Area: 6,567,274
  - Income Base: 1,580,669

- Ratio estimator (indirect estimation) methodology:
  - Auxiliary variable Y = production (GPV) correlated with study variable (GFCF); linear correlation estimated as 0.8888 (Annex 2 details).
  - Ratio estimator R̂ = x̂ / ŷ; applied X̂ = R̂ Y where X̂ is estimated total balance of fixed assets for population and Y is total GPV for population.
  - Ratios estimated for 69 activities in BES 2012 sample; for activities not investigated in 2012 ratios imputed based on contribution to total GPV.

- Aggregated ratio‑estimator results for rest of NFPS (Table 6, amounts in millions of colones):
  - Statistical areas included in 2012 sample:
    - Yes: 69 activities; Income: 1,201,023; Initial balance of fixed assets for the sample: 277,945; R: 0.2036; GPV for DR RPNFS population: 12,423,855; Initial balance of fixed assets, expanded: 4,840,914
    - No: 63 activities; R: 0.4657; GPV for DR RPNFS population: 5,639,300; Initial balance of fixed assets, expanded: 6,989,517
    - Total: 132 activities; Income: 1,201,023; Initial balance of fixed assets for the sample: 277,945; R: 0.2729; GPV for DR RPNFS population: 18,063,155; Initial balance of fixed assets, expanded: 11,830,431

- Estimates by type of asset (Table 7: Estimates by Type of Asset Based on Ratio Estimators, Millions of Colones):
  - Other buildings and structures — R: 0.092499 — Expanded Balance: 2,692,692
  - Machinery and equipment — R: 0.298827 — Expanded Balance: 8,258,895
  - Cultivated biological resources — R: 0.000070 — Expanded Balance: 2,112
  - Costs of ownership transfer on non‑produced assets — R: 0.000027 — Expanded Balance: 660
  - Intellectual property products — R: 0.004126 — Expanded Balance: 132,166
  - Land — R: 0.038081 — Expanded Balance: 563,762
  - Total (sum shown in source): 11,650,287
- Inventories and valuables (Table 8, Millions of Colones):
  - Inventories — Ratios: 0.123075 — Expanded Balance: 1,185,821
  - Valuables — Ratios: 0.000014 — Expanded Balance: 353
  - Total: 1,186,174
- Population total for balance of fixed assets for rest of NFPS (Table 9, Millions of Colones): POPULATION TOTAL - ESTIMATED GROSS CAPITAL FORMATION: 12,836,461

### REVEC and BES: coverage and sample design (2012 base year)
- REVEC: register of all economic entities nationally; contains approximately 176,478 non‑financial corporations; updated annually; sampling frame for BES.
- BES (Business Enterprise Survey):
  - Population 2012 totals: Total BES 2012 population: 21,289 companies; Income (millions): 23,657,754; Share: 100.00%
  - Large (includes SR and DR): 111 companies; Income (millions): 8,187,471; Share: 34.61%
  - Sample of other companies (SR and DR): 1,427 companies; Income (millions): 12,593,059; Share: 53.23%
    - Self‑represented: 814 companies; Income (millions): 11,481,094; Share: 48.53%
    - Random: 613 companies; Income (millions): 1,111,964; Share: 4.70%
  - Outside of sample (RNFPS): 19,751 companies; Income (millions): 2,877,225; Share: 12.16%
- Production output shares:
  - Large companies: 14 percent
  - Rest of sample (other non‑financial companies): 48 percent
- Shorter form used for 1,427 companies excludes balance sheets but includes Annex 5 (detailed balances of non‑financial fixed assets).
- Coverage choices: annually selected subset of activities surveyed; 69 of 132 activities covered in 2012; activities not measured are estimated using other indicators and prior BES data.

### Government, households, and institutional sectors (gaps and recommendations)
- Households and nonprofit public institutions and municipal governments subsectors: lack balances of non‑financial and financial assets.
  - Households: no housing stock compiled; CBCR developing housing price index for medium‑term estimates and physical housing stock data.
- General government:
  - Municipal governments subsectors and 80 percent of nonprofit public institutions lack balances of non‑financial and financial assets.
  - AESI responsible for compilation of government and financial sector data and GFS.
- Recommended action:
  - Inventory information in AESI and value assets to develop estimates of non‑financial and financial assets of local governments and non‑profit public institutions for 2012.
- Caveats:
  - GFS on a cash basis complicates government balance sheets; valuation needs verification.
  - Local government measurement feasibility depends on number of entities and available accounting information.

### Non‑produced assets and environmental accounts
- 2008 SNA non‑produced asset types: natural resources; contracts, leases, and licenses; purchased goodwill and marketing assets.
- Economic asset criteria (2008 SNA paragraphs 10.167–10.168):
  - Ownership rights established and effectively enforced.
  - Capable of bringing economic benefits given prevailing conditions or expected to do so in near future.
- CBCR environmental accounts (SCAE) available as starting point:
  - Water account (2012–2015): physical hydrological resources and utilization table; physical balance sheet (AN 214 Hydrological resources).
  - Forest account: carbon, timber, land; cultivated timber may be economic asset (AN 2159 Other) if ownership and economic benefit conditions met; forest cover change matrix identifies shifts to economic use.
  - Land cover account: classification by territory type; portion property of institutional unit producing economic benefit corresponds to AN 211 Land and property; valuation (asset prices) is critical.
- Recommended actions:
  - Include environmental accounts department with FEM team in economic measurement of natural resource stocks for 2017 rebasing.
  - Ask environmental accounts team to update measurements to 2016 to obtain stocks of economically measurable assets.

### Financial assets: data sources, valuation, reconciliation, and responsibilities
- SUGEF provides monthly financial information on supervised institutions, institution‑by‑institution and operation‑by‑operation; broken down by sector using REVEC and 2008 SNA classification of financial assets; SUGEF submits aggregated information by institutional subsector defined for 2012 base year.
- AESI has agreement with SUGEF for access to financial information.
- Coverage of received information (56 regulated financial institutions total):
  - state‑owned banks (4)
  - private banks (12)
  - cooperatives (32)
  - financial institutions (4)
  - mutual financial institutions (2)
  - two more financial institutions
- Valuation criteria and recommendations:
  - Current valuation: accounting criteria of source (restated).
  - Recommendation: verify against national accounts valuations (financial statistics practice values financial instruments at market prices as of balance sheet date).
  - Specific recommended actions (with targets/status as presented in source):
    - Change valuation criteria for revaluation account to apply IPI to relevant asset and ensure consistent pricing across sectors (Target completion: March 2019; Status: In progress).
    - Analyze whether valuations in financial statements or BES annexes are at market prices for reference year (Target completion: May 2019; Status: Done).
    - Review Annex 5 consistency and inform reporting entity of requested valuations (Target completion: July 2019; Status: In progress).
    - Study accounting standards by regime/size to identify accounting vs economic valuation differences (Target completion: May 2019; Status: In progress).
    - Note: Annex 5 expresses “Balances at historical value,” differing from market prices required.

- Preparation of sectoral balance sheets and flow reconciliation:
  - AESI prepares balance sheets for financial sector institutions and counterparties by institutional subsector classification.
  - Reconciliations with other sectors made on basis of financial flows; CBCR prepared cash flow exercise for 2010.
  - Current practice: flow reconciliation modifies source balances over time causing divergence from original sources.
  - Recommendation: revise method to a balance and flow approach and use asset accounts; obtain flows from financial account and other changes/revaluation accounts per 2008 SNA.

- Asset accounts and methodological work:
  - Asset accounts developed for non‑financial produced assets during mission with FEM staff applying 2008 SNA valuations.
  - Example asset account structure provided (capital account; financial account; other changes in volume; revaluation account) and asset codes (AF, AN categories).

- Reconciliation with MFS and IIP:
  - MFS balances are more timely and follow similar accounting rules as 2008 SNA except quadruple entry.
  - Coordination status: MFS and AESI working closely but asset and institutional sector classification criteria not fully aligned.
  - SUGEF information processed differently by MFS (original source classifications) and AESI (2012 base‑year criteria).
  - AESI provided balances from SUGEF to MFS; joint review by FEM, AESI, AESE, and MFS showed discrepancies (example: Central Government debt holdings by Other Deposit‑Taking Corporations differing between AESI and MFS).
  - IIP reconciliation: AESE prepares IIP; reconciliation in place for International Reserves; recommendation to continue reconciling IIP categories and convert dollars to colones per AESE criteria.

- Institutional recommendation (explicit):
  - DEM should define the unit responsible for preparation of financial asset accounts to introduce asset account method for balance sheets by institutional subsector/sector and total economy.
  - Once defined, develop financial asset accounts and align integration criteria to validate reference figures from financial statistics, government finance, and balance of payments.

### Detailed technical assessment — selected milestones and statuses (as of August 2019)
- Balances of non‑financial assets (selected):
  - H: Change valuation criteria for revaluation account to apply IPI (Target: March 2019; Status: In progress).
  - M: Analyze valuations in financial statements/BES annexes for market price compliance (Target: May 2019; Status: Done).
  - M: Review Annex 5 consistency and inform reporting entity (Target: July 2019; Status: In progress).
  - M: Study accounting standards by regime/size (Target: May 2019; Status: In progress).
  - H: Perform inventory in AESI to estimate assets of local governments and non‑profit public institutions for 2012 (Target: March 2019; Status: In progress).
  - M: Include Environmental Accounts Department in measurement for 2017 rebasing (Target: June 2019; Status: Not done).
  - M: Ask environmental accounts to update measures to 2016 (Target: June 2019; Status: Done; water accounts update to 2016 published April 2019).
- Balances of financial assets (selected):
  - H: DEM defines unit responsible for financial asset accounts (Target: March 2019; Status: Pending).
  - H: Once defined, develop financial asset accounts and align integration criteria (Target: June 2019; Status: In progress).

### Annex highlights — selected numeric figures (preserved exactly as in source)
- Asset account aggregate example fields: P511 Acquisitions less disposals of fixed assets; AF1, AF2, AF3, AF4 codes used in tables.
- Table 11 (Comparison of National Accounts Data and Financial Statistics, 2016) selected entries:
  - F311 Debt securities of the Central Govt: 5,054,791.93
  - F312 Debt securities of the CBCR: 1,639,529.79
  - F321 Debt securities of the Central Govt (foreign currency): 1,213,882.57
  - F322 Debt securities of the CBCR (foreign currency): 53.63
  - F411 Debt securities with repurchase agreement (domestic currency): 153,136.39
  - F412 Deferred liquidity operations (domestic currency): 34,150.81
  - F419 Other loans (domestic currency): 12,323,755.04
  - F421 Debt securities with repurchase agreement (foreign currency): 197,599.91
  - F422 Deferred liquidity operations (foreign currency): 13,603.41
  - F429 Other loans (foreign currency): 7,790,661.49
- Annex I (linear correlation between balance of fixed assets and income, monthly data, Colones):
  - Selected rows: AE026 REVEC 4,833,762,368.00 ; Income 5,630,382,580.20; AE041 REVEC 5,656,221,424.00 ; Income 1,726,613,760.93; AE090 REVEC 896,195,565,805.26 ; Income 71,701,380,134.18; AE100 REVEC 31,726,428,217.00 ; Income 37,524,852,531.58
  - Grand total: 1,201,023,035,490.72 ; 244,607,622,451.68
  - Correlation coefficient: 0.84
- Annex II (population balances by activity) totals:
  - RNFPS‑DR: 18,063,154.60 ; Balances estimated with ratios: 6,989,517,217,525 ; Activities studied in 2012: 4,840,914,047,373 ; Grand total: 11,830,431,264,898
- Annex IV totals for fixed asset components (end of table):
  - Other buildings and structures: 2,692,692,315,305
  - Machinery and equipment: 8,258,895,416,204
  - Cultivated biological resources: 2,111,794,318
  - Costs of ownership transfer on non‑produced assets: 660,197,013
  - Intellectual property products: 132,166,184,253
- GPV 2012, Land, Valuables and expanded balances (selected entries preserved as in source), with totals:
  - TOTALS: 563,762
  - 353

### Annex V — 2008 SNA Financial Asset Valuation table (definitions and implications)
- Definitions preserved:
  - Nominal holding gain (non‑financial asset): "the value of the benefit accruing to the owner of that asset as a result of a change in its price over a period of time."
  - Nominal holding gain (financial asset): "the increase in value of the asset, other than transactions in the assets (including the accrual of interest over a period of time) and other changes in the volume of assets."
  - Nominal holding gain on a liability: "the decrease in value of the liability, other than by transactions or by other volume changes."
  - Neutral holding gain (loss): increase (decrease) required to maintain command over same goods and services as at beginning of period (General Price Index).
  - Real holding gain (loss): nominal less neutral holding gain.
- Calculation principles:
  - Neutral holding gains: calculated as if prices moved with general internal price level (domestic currency).
  - Real holding gains derived residually (nominal minus neutral).
  - Cross‑country currency/price differences can make creditor and debtor real holding gains/losses unequal.
- Asset‑by‑asset valuation indicators (preserved exactly as in source):
  - AF11 | Monetary gold | Yes | No | Yes
  - AF12 | SDRs | Yes | No | Yes
  - AF21 | Banknotes and coins | 0 | Yes (C/Inflation is +) | Yes (C/Inflation is -)
  - AF22 | Transferable deposits | 0 | Yes (C/Inflation is +) | Yes (C/Inflation is -)
  - AD29 | Other deposits | 0 | Yes (C/Inflation is +) | Yes (C/Inflation is -)
  - AF3 | Debt securities | [see notes below]
  - AF4 | Loans | 0 | Yes (C/Inflation is +) | Yes (C/Inflation is -)
  - AF5 | Equity | Yes | Yes | Yes
  - AF52 | Investment fund shares/units | Yes | Yes | Yes
  - AF6 | Insurance, pension, and standardized guarantee schemes | [see notes below]
  - AF71 | Financial derivatives | [see notes below]
  - AF72 | Employee stock options | [see notes below]
  - AF81 | Trade credits and advances | 0 | Yes (C/Inflation is +) | Yes (C/Inflation is -)
  - AF89 | Other accounts receivable/payable | 0 | Yes (C/Inflation is +) | Yes (C/Inflation is -)
- Special cases and examples (preserved textual guidance):
  - Deposits and loans in domestic currency: do not register nominal holding gains/losses; changes attributable to transactions/interest.
  - Other accounts receivable/payable in domestic currency: do not register nominal holding gains/losses; real holding gains may offset neutral holding losses under inflation.
  - Debt securities: market value changes may generate nominal holding gains/losses; discounted bonds measure interest over life; negotiable fixed‑interest bonds: interest rate changes recorded as revaluation.
  - Equity: listed shares and investment fund shares register holding gains/losses via market prices; other equity valued as assets less liabilities with holding gains on assets less holding gains on liabilities.
  - Financial derivatives and employee stock options: quoted prices register nominal holding gains/losses.
  - Insurance and pension schemes: indexed outstanding claims may register nominal holding gains/losses.

*International Monetary Fund. Costa Rica: Detailed technical assessment and recommendations (excerpts reproduced from source content).*

### 1. Priority Recommendations _____________________________________________________________________ 5

### 1. Priority Recommendations

### Summary of mission outcomes and priority recommendations
- A technical assistance (TA) mission, conducted by CAPTAC-DR, took place during August 27 to September 7, in San Jose, Costa Rica, to assist the Central Bank of Costa Rica (CBCR) in compiling the non-financial and financial balance sheets. This TA mission was requested in the context of the rebasing project of the national accounts series to 2017, as follow-up of a previous mission conducted in March 2018.
- The mission covered two purposes:
  - 1) provide guidance to the CBCR in developing statistical methods to estimate the capital stock for the non-financial private sector (NFPS); and
  - 2) provide TA in compiling balance sheets, as part of the annual accounts by institutional sector (AAIS) of Costa Rica.
- For purpose (1), the mission assisted CBCR staff in obtaining capital stocks (end of 2012) for a subset of the NFPS lacking data on assets through two alternative methods:
  - i) deriving capital stock by type of assets based on grossing-up factors from the 2012 annual economic survey; and
  - ii) calculating capital stock based on the gross fixed capital formation series along with assumptions on the assets service life spans.
- The results obtained from both methods were similar and resulted in an estimate of capital stock for the NFPS of about 42.7 percent of the total economy.
- For purpose (2), the mission reviewed internal estimates of balance sheets available for some institutional sectors and assisted CBCR staff in compiling balance sheets for non-financial assets by institutional sectors and for the total economy. For balances of financial assets, guidance was provided to supplement available data with financial statistics and the international investment position, harmonized with the national accounts.
- The compilation of balance sheets is part of the Data Gaps Initiative to identify financial risks and vulnerabilities by increasing available information on financial flows and stocks. Implementing the mission recommendations will allow CBCR to publish balance sheets as part of the new base year series to 2017.

- Table of Priority Recommendations (as presented)
  - January 2019 (Pending): Assign responsibility for compiling the balance sheets by institutional sector and subsector. The delaying in the implementation of this recommendation hampers the possibility to conclude the balance sheets. — Responsible: CBCR
  - June 2019 (In progress): Develop processes for reconciling with financial statistics, balance of payments and government finance statistics. — Responsible: CBCR
  - January 2020: Complete all the components of the AAIS; investigate and resolve discrepancies. — Responsible: CBCR

- Further details and milestones are recorded in the action plan under the Detailed Technical Assessment and Recommendations.

### Institutional arrangements and data gaps
- The annual accounts by institutional sector compilation is distributed among various units within the Macroeconomic Statistics Department (DEM).
  - The Strengthening Macroeconomic Statistics Project (FEM) unit is responsible for integration of current and accumulation accounts by institutional sector published annually as the Integrated Economic Accounts (IEA), part of the series with 2012 as the base year.
  - The institutional sector unit compiles financial and government sectors and government finance statistics, utilizing information from SUGEF, SUGESE, and SUGEVAL. These measurements are integrated within the IEA.
  - FEM compiles accounts for non-financial corporations, households, and nonprofit institutions serving households; both units prepare the full sequence of accounts from production to asset balances.
- Several sectors/subsectors lack balance sheets: other financial corporations (only limited BES information), local governments, some public non-profit institutions in government, and the household sector.
- For sectors whose information source is administrative records, closing balances do not coincide with the next year's opening balance.

### Non-Financial Assets — A. Total Economy
- An estimate was made for the balance for the total economy using a method for estimating the stock based on limited information to serve as a reference for other non-financial corporations.
- The Perpetual Inventory Method (PIM) from the OECD Measuring Capital Manual is the preferred approach; PIM treats stocks as cumulative flows of investment corrected for retirement and loss of efficiency.
- For this mission the stock serving as reference is the net stock, using series of gross fixed capital formation by type of asset (GFCF) and implicit price indices (IPIs).
- Service life assumptions used:
  - Tax depreciation rates from Costa Rica regulations associated with the Income Tax Law for fixed assets and for radio and television services, films, videos, and related products (intellectual property).
  - Regulation on Radio Communications consulted to identify time periods for rights and assign service life assumptions.
- Methodological parameters:
  - Three variables per type of asset are needed: α (asset improvement rate), 푏푏 (asset growth rate), and δ (depreciation rate).
  - Using these a factor C is calculated, which represents the rate of new investments for the net stock of an asset.
  - The mission describes the formula and definitions where:
    - α is the asset improvement rate;
    - 푏푏 is the asset growth rate;
    - δ is the depreciation rate.
  - A theoretical assumption was used for the improvement rate (0.2); the asset growth rate was the average growth in GFCF for each type of asset; and the identified rates were used for the depreciation rate.
- Table 2. Stocks and Balances of Assets (Millions of Colones)
  - Net stocks of assets in 2012, total economy: 29 704 144
  - Balance of assets of sectors with administrative records: 18 081 917
- The provisional balance indicates the difference corresponds to the balance of four sectors/subsectors without balances: other non-financial corporations; local governments; some non-profit institutions that are part of the government; and the household sector.
- Particular notes:
  - For households, calculating the housing stock is critical as the main fixed asset.
  - For local governments, alternatives for available information should be explored.
  - The mission suggested methods for measuring balances of non-financial assets for other non-financial corporations based on BES and income base, and statistical methods in sections B and C.
- Asset account compilation:
  - An asset account must be compiled for each produced and non-produced non-financial asset using the balance sheet format: opening balance, capital account, accounts of other changes in volume, revaluation account, and closing balance (which must become next period's opening balance).
  - During the mission a balance sheet calculation for the pool of assets was performed using FEM unit information, opening balances, and estimates for other non-financial corporations developed by statistical methods.
  - Simplified PIM estimates were used for local governments and households based on their 2012 capital account.
  - Accounts of other changes in volume available to FEM and developed from administrative records or BES were used; IPIs by type of asset of the same GFCF were used for the revaluation account.
  - Recommendation aligned with 2008 SNA: nominal gain should be measured based on the price of the particular asset; CBCR currently does not calculate nominal, neutral, and real gains separately and valuation should be performed using the specific price of the asset.
- Change in inventories:
  - Asset balances of the change in inventories were not addressed during the mission; measurement needs to be performed starting in 2012 to complete the set of produced assets.
- Recommended actions (A):
  - Change the valuation criteria for the revaluation account to apply the IPI of the relevant asset, and ensure the same price is applied in balance sheets of institutional sectors/subsectors.
  - Analyze valuations in financial statements or BES annexes to determine whether they are based on market prices for the reference year.

### Non-Financial Assets — B. Other Non-Financial Private Corporations, Simplified Perpetual Inventory Method
- Background:
  - The March 2018 mission recommended use of databases for other corporations and large companies, and the income database to consolidate available information for other corporations; FEM addressed these recommendations prior to this mission.
- Mission purpose:
  - Define methods enabling FEM to obtain balances of non-financial assets for other non-financial corporations lacking complete BES information.
  - Two methodological proposals were developed:
    - 1) follow-up on previous recommendations using all BES information for non-financial private corporations (large, special regimes, others); statistical methods described in section C.
    - 2) proposal for the total economy with the simplified PIM described in section A.
- Purpose of dual methods:
  - To test consistency between statistical-method estimates and PIM-based estimates and to examine resulting gaps by type of asset.
- Results: the two methods are consistent with the total for the segment representing other non-financial corporations, with differences in gaps between non-residential structures and machinery and equipment due to composition of variables from the large companies segment of the BES.
  - Underlying assumptions:
    - Statistical methods: composition of fixed assets of large companies is similar to other non-financial corporations.
    - Capitalization factor (simplified PIM): structure of capital formation in 2012 is similar to general stocks of other companies without stocks.
- Table 3. Balances of Total Fixed Assets for Other Non-Financial Private Corporations for 2012, in Millions of Colones
  - Estimate with simplified PIM: 12,692,281
  - Estimate with expansions by statistical area: 11,830,431
  - Estimate with expansions by statistical area and asset type: 12,836,461
- Recommended actions (B):
  - Review consistency of variables obtained in Annex 5 of the BES and specify to reporting entities the valuations with which assets are requested.
  - Study accounting standards applied by companies by regime and size to identify differences between accounting valuation and economic valuation; consider that Annex 5 of the BES expresses “Balances at historical value,” which differ from the market values required for asset measurements in national accounts.

### Non-Financial Assets — C. Other Non-Financial Private Corporations, Statistical Method
- Data sources available for NFPS measurement: business register (REVEC), income database of the Ministry of Finance, and the BES for estimation of gross capital formation.
- The income database includes variables such as assets and liabilities, revenue, costs, credits, expenditures, and deductions for all companies that declare income.

*Source: 1. Priority Recommendations (Costa Rica), IMF technical assistance mission report.*

### 27. The REVEC is a register of all economic entities at the national level, and it contains

### 1criea2020002 - 27. The REVEC is a register of all economic entities at the national level, and it contains

### REVEC and BES: coverage and purpose
- REVEC contains approximately 176,478 non-financial corporations and is updated annually with information from the income database and other sources; it serves as the sampling framework for the BES.
- The BES (Business Enterprise Survey) collects data from non-financial private companies to develop national accounts statistics and is based on a probabilistic sample.
- BES segments:
  - Large companies: included every year; asked the expanded form (profit and loss statements, balance sheets, and seven annexes including Annex 5 on GFCF).
  - Other non-financial companies: sample split into a self-represented stratum and a random stratum; both include Inward Processing (IP) and Free Zone (FZ) regimes.
- Production output shares:
  - Large companies: 14 percent
  - Rest of sample (other non-financial companies): 48 percent
- Census/monitoring:
  - FZ and IP companies have special monitoring; financial statements for the census are provided by the Foreign Trade Promotion Board (Procomer).

### BES sample design and scope (2012 base year)
- BES sample composition (BES 2012 population totals):
  - Total BES 2012 population: 21,289 companies; Income (millions): 23,657,754; Share: 100.00%
  - Large (includes SR and DR): 111 companies; Income (millions): 8,187,471; Share: 34.61%
  - Sample of other companies (includes SR and DR): 1,427 companies; Income (millions): 12,593,059; Share: 53.23%
    - Self (self-represented): 814 companies; Income (millions): 11,481,094; Share: 48.53%
    - Random: 613 companies; Income (millions): 1,111,964; Share: 4.70%
  - Outside of sample (RNFPS): 19,751 companies; Income (millions): 2,877,225; Share: 12.16%
- Sample forms:
  - Shorter form used for 1,427 companies (814 self-represented + 613 random); shorter form excludes balance sheets but includes Annex 5 (detailed balances of non-financial fixed assets).
- Coverage choices:
  - Not all economic activities are surveyed each year; annually selected subset (2012 covered 69 of 132 activities).
  - Activities not measured in a year are estimated using other indicators and prior-year BES data if available.

### Estimation objectives and datasets
- Mission focus: evaluate estimation methods using balance of non-financial fixed assets declared by companies in the random sample to determine total balances by asset type and economic activity for the 19,751 companies comprising the rest of the non-financial private sector.
- Year chosen for estimation: 2012 (base year for the current series; 69 of 132 activities investigated). Information for 2017 still processing.

### Estimation scenarios and initial results
- First two scenarios: direct estimation methods
  - Scenario 1: apply expansion factor defined for each company in original sample design.
  - Scenario 2: apply expansion factor = population size in each activity (N) / sample size in that activity (n).
- Third option: use income database to obtain population data on balance of fixed assets for companies declaring income but not in BES sample.
- Initial aggregated results (Table 5: Initial Balance of Fixed Assets in 2012, Millions of Colones):
  - Random Sample: 277,945
  - Expanded by Company: 7,603,697,714
  - Expanded by Statistical Area: 6,567,274
  - Income Base: 1,580,669

### Ratio estimator (indirect estimation) methodology
- Fourth scenario: indirect estimation using ratio estimators applied to BES sample information.
- Rationale: use auxiliary variable Y = production (GPV) correlated with study variable (GFCF) to improve precision.
- Linear correlation between production and fixed asset balance estimated as 0.8888 (detailed calculation in Annex 2).
- Ratio definition used (notation preserved from source): R̂ = x̂ / ŷ (as described in text and Annex 4).
- Estimation formula applied:
  - X̂ = R̂ Y
  - X̂ is total balance of fixed assets estimated for total population.
  - Y is total production for the population measured by Gross Production Value (GPV).
- Ratios estimated for activities included in BES 2012 sample (69 activities) and used to estimate totals; for activities not investigated in 2012, ratios imputed based on contribution of each activity to total GPV.

### Aggregated ratio-estimator results for rest of Non-Financial Private Sector (DR)
- Table 6 aggregates activities (amounts in millions of colones):
  - Statistical areas included in the 2012 sample:
    - Yes: 69 activities; Income: 1,201,023; Initial balance of fixed assets for the sample: 277,945; R: 0.2036; GPV for DR RPNFS population: 12,423,855; Initial balance of fixed assets, expanded: 4,840,914
    - No: 63 activities; Income: -; Initial balance of fixed assets for the sample: -; R: 0.4657; GPV for DR RPNFS population: 5,639,300; Initial balance of fixed assets, expanded: 6,989,517
    - Total: 132 activities; Income: 1,201,023; Initial balance of fixed assets for the sample: 277,945; R: 0.2729; GPV for DR RPNFS population: 18,063,155; Initial balance of fixed assets, expanded: 11,830,431

### Estimates by type of asset (ratio estimators)
- Types of produced assets estimated (listed in source):
  - Other buildings and structures
  - Machinery and equipment
  - Cultivated biological resources
  - Costs of ownership transfer on non-produced assets
  - Intellectual property products
  - Inventories (Materials and supplies; Work in progress; Other work in progress; Finished goods; Military inventories, foreclosed assets, and assets held under financial leases; Goods for resale)
  - Valuables
  - Acquisitions less disposals of non-produced assets
  - Land and property
- Expanded balances by type (Table 7: Estimates by Type of Asset Based on Ratio Estimators, Millions of Colones):
  - Other buildings and structures — R: 0.092499 — Expanded Balance: 2,692,692
  - Machinery and equipment — R: 0.298827 — Expanded Balance: 8,258,895
  - Cultivated biological resources — R: 0.000070 — Expanded Balance: 2,112
  - Costs of ownership transfer on non-produced assets — R: 0.000027 — Expanded Balance: 660
  - Intellectual property products — R: 0.004126 — Expanded Balance: 132,166
  - Land — R: 0.038081 — Expanded Balance: 563,762
  - Total (sum shown in source): 11,650,287
- Inventories and valuables estimated using ratio estimators based on information from large companies by activity (limitations in random sample representation noted).
- Inventories and valuables results (Table 8, Millions of Colones):
  - Inventories — Ratios: 0.123075 — Expanded Balance: 1,185,821
  - Valuables — Ratios: 0.000014 — Expanded Balance: 353
  - Total: 1,186,174
- Population totals for the balance of fixed assets for the rest of the non-financial private sector (Table 9, Millions of Colones):
  - Other buildings and structures — R: 0.092499 — Expanded Balance: 2,692,692
  - Machinery and equipment — R: 0.298827 — Expanded Balance: 8,258,895
  - Cultivated biological resources — R: 0.000070 — Expanded Balance: 2,112
  - Costs of ownership transfer on non-produced assets — R: 0.000027 — Expanded Balance: 660
  - Intellectual property products — R: 0.004126 — Expanded Balance: 132,166
  - Land — R: 0.038081 — Expanded Balance: 563,762
  - Inventories — R: 0.123075 — Expanded Balance: 1,185,821
  - Valuables — R: 0.000014 — Expanded Balance: 353
  - POPULATION TOTAL - ESTIMATED GROSS CAPITAL FORMATION: 12,836,461

### Government, households, and institutional sectors
- Households and nonprofit public institutions and municipal governments subsectors: do not have balances of non-financial and financial assets currently compiled.
  - Households: no housing stock compiled; CBCR developing a housing price index for medium-term estimates and physical housing stock data.
- General government:
  - Municipal governments subsectors and 80 percent of nonprofit public institutions lack balances of non-financial and financial assets.
  - Institutional Sector Statistics Unit (AESI) responsible for compilation of government and financial sector data and Government Finance Statistics.
- Recommended action for government subsectors (from source):
  - Perform an inventory of the information available in the AESI and a valuation of assets in order to develop estimates of balances of non-financial and financial assets of local governments and non-profit public institutions for 2012.
- Measurement caveats:
  - Government sector balance sheets complicated if government finance statistics are on a cash basis; valuation needs verification.
  - Local governments: number of entities and available accounting information determine feasible measurements.

### Non-produced assets and environmental accounts
- 2008 SNA recognizes three types of non-produced non-financial assets: natural resources; contracts, leases, and licenses; and purchased goodwill and marketing assets.
- Natural assets must meet two 2008 SNA characteristics to be economic assets:
  - Ownership rights established and effectively enforced (2008 SNA, paragraph 10.167).
  - Capable of bringing economic benefits given prevailing conditions or expected to do so in the near future (2008 SNA, paragraph 10.168).
- Current CBCR environmental accounts as starting point (SCAE): water, forests, energy accounts compiled by environmental accounts unit within DEM.
  - Water account (2012–2015): measurements of hydrological resources in physical units and a table showing utilization in production; physical balance sheet presents water bodies for economic use (AN 214 Hydrological resources).
  - Forest account: measurements of carbon, timber, and land; cultivated timber resources may be economic assets (AN 2159 Other) if ownership and economic benefit conditions met; forest cover change matrix helps identify shifts to economic use.
  - Land cover account: territory classified by type; portion that is property of institutional unit and produces economic benefit corresponds to AN 211 Land and property. Valuation (asset prices) is the critical measurement task.
- Recommended Actions (from source):
  - Include the environmental accounts department, together with the FEM team, in the economic measurement of stocks of natural resources for the purposes of the 2017 rebasing project.
  - Ask the environmental accounts team to update the measurements to 2016, in order to obtain stocks of economically measurable assets.

### Financial assets: data sources and availability
- SUGEF (Office for the Supervision of Financial Institutions) provides financial information on supervised institutions on a monthly basis, institution by institution and operation by operation.
- Information is broken down by sector using REVEC classification and 2008 SNA classification of financial assets; SUGEF submits aggregated information by institutional subsector defined for the 2012 base year by the CBCR.
- AESI has an agreement with SUGEF for access to this financial information.

*Source: 1criea2020002*

### 62. The information that is received covers state-owned banks (4), private banks (12),

### 1criea2020002 - 62. The information that is received covers state-owned banks (4), private banks (12),

### Coverage and institutional grouping
- The information received covers:
  - state-owned banks (4)
  - private banks (12)
  - cooperatives (32)
  - financial institutions (4)
  - mutual financial institutions (2)
  - two more financial institutions
  - Total: 56 regulated financial institutions that comprise Costa Rica’s financial system.
- Grouping is defined for base year 2012; any reclassification for base year 2017 requires a corresponding request.

### Valuation criteria and consistency with national accounts
- Valuation criteria applied: accounting criteria of the source information (restated).
- Recommendation: verify these against valuations applicable to national accounts, which follow financial statistics practice of valuing financial instruments at market prices as of the balance sheet date.
- Specific actions undertaken and recommended:
  - Change the valuation criteria for the revaluation account to apply the IPI to the relevant asset and ensure the same price is applied across institutional sectors/subsectors (Target completion: March 2019; Implementation status: In progress).
  - Analyze whether valuations in financial statements or BES annexes are at market prices for the reference year (Target completion: May 2019; Status: Done).
  - Review consistency of variables obtained in Annex 5 of the BES and inform reporting entity of requested valuations (Target completion: July 2019; Status: In progress).
  - Study accounting standards by regime/size to determine differences between accounting and economic valuations (Target completion: May 2019; Status: In progress).
  - Note: Annex 5 expresses “Balances at historical value,” which differ from market prices required for asset measurements.

### Preparation of sectoral balance sheets and flow reconciliation
- The AESI prepares balance sheets of financial sector institutions and relevant counterparties following the institutional subsector classification.
- Reconciliations with other sectors are made on the basis of financial flows. The CBCR prepared a cash flow exercise for the year 2010.
- Current practice: a flow reconciliation approach modifies the source balances over time, causing divergence from original sources as years accumulate.
- Publication practice: the CBCR publishes the IEA up to the financial account; there is interest in extending the central framework to balance sheets.
- Recommendation: revise current method to a balance and flow approach and use asset accounts, obtaining flows from the financial account and other changes in assets and revaluation accounts based on 2008 SNA methods.

### Asset accounts and methodological work
- Asset accounts have been developed for non-financial produced assets during the mission with FEM staff, based on the unit’s working files and applying 2008 SNA valuations.
- Table 10 shows an Asset Account, Balance Sheet Format, with columns for:
  - III.1 Capital account
  - III.2 Financial account
  - III.3.1 Other changes in the volume of assets account
  - III.3.2 Revaluation account
  - Example asset categories: AF (Financial assets) including AF1 Monetary gold and SDRs; AF2 Currency and deposits; AF3 Debt securities; AF4 Loans; AN (Non-financial assets) including AN111 Dwellings; AN1121 Non-residential buildings; AN1122 Other structures; AN1123 Land and land improvements.
- The same data for all 2008 SNA assets are provided in the asset accounts, but columns show entries by capital/financial/other changes/revaluation accounts rather than sector breakdowns (2008 SNA, paragraph 13.14).

### Reconciliation with Monetary and Financial Statistics (MFS) and IIP
- Financial asset measurements require reconciliation with MFS balances, which are more timely and follow the same accounting rules as the 2008 SNA except for quadruple entry.
- Coordination status:
  - MFS and AESI are working closely, but classification criteria for assets and institutional sectors have not yet been aligned.
  - SUGEF provides information to both units (MFS and AESI) but with different processing: MFS receives original source classifications; AESI information is processed per criteria defined for 2012 base-year updating.
- The AESI provided balances of available financial assets with SUGEF sources and groupings to the head of the MFS unit; a comparison of figures was reviewed jointly by FEM unit, AESI, AESE, and MFS unit.
- Reconciliation example (Table 11, 2016) highlights discrepancies such as Central Government debt holdings by Other Deposit-Taking Corporations (ODC) differing significantly between AESI and MFS measurements; the purpose was to show need for reconciliation of national accounts and MFS for asset balance sheets: balances, flows, other changes in volume, and revaluations.
- Reconciliation for the International Investment Position (IIP):
  - AESE prepares the IIP.
  - Reconciliation is already in place for International Reserves.
  - Recommendation: continue reconciling IIP categories, converting dollars to colones per AESE criteria for treatment of flows and stocks.

### Recommended actions (explicit)
- The DEM should define the unit responsible for preparation of financial asset accounts to introduce the asset account method as the mechanism for preparing balance sheets by institutional subsector/sector and the total economy.
- Once the responsible unit is defined, develop financial asset accounts and align integration criteria to validate reference figures from financial statistics, government finance, and the balance of payments.

### Detailed technical assessment—selected milestones and statuses (as of August 2019)
- Outcome: balances of non-financial assets
  - H: Change valuation criteria for revaluation account to apply IPI (Target: March 2019; Status: In progress).
  - M: Analyze valuations in financial statements/BES annexes for market price compliance (Target: May 2019; Status: Done).
  - M: Review Annex 5 consistency and inform reporting entity (Target: July 2019; Status: In progress).
  - M: Study accounting standards by regime/size to determine accounting vs economic valuation differences (Target: May 2019; Status: In progress).
  - H: Perform inventory of information in AESI to estimate non-financial and financial assets of local governments and non-profit public institutions for 2012 (Target: March 2019; Status: In progress).
  - M: Include Environmental Accounts Department in measurement of natural resource stocks for 2017 rebasing (Target: June 2019; Status: Not done).
  - M: Ask environmental accounts team to update measures to 2016 (Target: June 2019; Status: Done; water accounts update to 2016 published April 2019).
- Outcome: balances of financial assets
  - H: DEM defines unit responsible for financial asset accounts (Target: March 2019; Status: Pending).
  - H: Once defined, develop financial asset accounts and align integration criteria (Target: June 2019; Status: In progress).

### Annex highlights — selected numeric figures (preserve exact values)
- Asset account aggregate example fields: (format and codes are presented in source; selected categories include P511 Acquisitions less disposals of fixed assets; AF1, AF2, AF3, AF4).
- Table 11 (Comparison of National Accounts Data and Financial Statistics, 2016) selected entries:
  - F311 Debt securities of the Central Govt: 5,054,791.93 (National Accounts / Financial Account stocks / CBCR Other Deposit-Taking Corporation (ODC) / Other Financial Corporation (OFC) columns present in source table).
  - F312 Debt securities of the CBCR: 1,639,529.79
  - F321 Debt securities of the Central Govt (foreign currency): 1,213,882.57
  - F322 Debt securities of the CBCR (foreign currency): 53.63
  - F411 Debt securities with repurchase agreement (domestic currency): 153,136.39
  - F412 Deferred liquidity operations (domestic currency): 34,150.81
  - F419 Other loans (domestic currency): 12,323,755.04
  - F421 Debt securities with repurchase agreement (foreign currency): 197,599.91
  - F422 Deferred liquidity operations (foreign currency): 13,603.41
  - F429 Other loans (foreign currency): 7,790,661.49
- Annex I (Estimate of Linear Correlation Coefficient between Balance of Fixed Assets and Income with Monthly Data, in Colones) sample rows:
  - AE026: REVEC 4,833,762,368.00 ; Income 5,630,382,580.20
  - AE041: REVEC 5,656,221,424.00 ; Income 1,726,613,760.93
  - AE090: REVEC 896,195,565,805.26 ; Income 71,701,380,134.18
  - AE100: REVEC 31,726,428,217.00 ; Income 37,524,852,531.58
  - Grand total: 1,201,023,035,490.72 ; 244,607,622,451.68
  - Correlation coefficient: 0.84
- Annex II (Estimate of the Population Balance of Fixed Assets by Economic Activity) sample rows and aggregates:
  - AE014: RNFPS-DR 385112.13 ; Initial Balance of Financial Assets in 2012 244,727,183,657
  - AE016: RNFPS-DR 393545.20 ; Initial Balance of Financial Assets in 2012 255,562,457,258
  - AE056: RNFPS-DR 79690.17 ; Initial Balance of Financial Assets in 2012 165,572,360,524
  - AE086: RNFPS-DR 1850977.03 ; Initial Balance of Financial Assets in 2012 5,653,402,087,673
  - Totals row: RNFPS-DR 18063154.60 ; Balances estimated with ratios 6,989,517,217,525 ; Activities studied in 2012 4,840,914,047,373 ; Grand total 11,830,431,264,898

*International Monetary Fund. Costa Rica: Detailed technical assessment and recommendations (excerpts reproduced from source content).*

### Annex III. Estimate of Ratios by Type of Asset and Statistical

### Annex III. Estimate of Ratios by Type of Asset and Statistical Area for the Rest of the Non-Financial Private Sector in 2012

### Estimated Ratios (Annex III)
- Table structure: columns correspond to Statistical Area identifiers AN112, AN113, AN115, AN116, AN117; rows identified by asset codes AE001–AE145 (selected AE codes shown in source).
- Selected entries (asset code followed by ratios under AN112, AN113, AN115, AN116, AN117):
  - AE001: 0.00031162, 0.00100782, 0.00008899, 0.00000009, 0.00001392
  - AE002: 0.00013503, 0.00043671, 0.00000000, 0.00000004, 0.00000603
  - AE003: 0.00364508, 0.01178852, 0.00000000, 0.00000106, 0.00016277
  - AE014: 0.12405827, 0.40121620, 0.00000750, 0.00003616, 0.00553981
  - AE016: 0.12677486, 0.41000191, 0.00070600, 0.00003695, 0.00566112
  - AE026: 0.22086988, 0.98608212, 0.00022757, 0, 0
  - AE034: 0.04956861, 0.61028825, 0.00000000, 0, 0
  - AE043: 0.00948943, 0.03068973, 0.01263548, 0.00000277, 0.00042375
  - AE052: 0, 0.346665, 0.00000000, 0, 0
  - AE056: 0.11505848, 1.89953349, 0.00000000, 0, 0
  - AE086: 0.59626531, 1.92837856, 0.00000000, 0.00017378, 0.02662616
  - AE090: 0.02467638, 0.0571978, 0.00001917, 2.32E-08, 0.00152785
  - AE091: 0.10396304, 0.17098224, 0.00000000, 0.00154408, 0.00214064
  - AE093: 0.05966699, 1.05885799, 0.00000000, 0, 8.3612E-05
  - AE100: 0.7752371, 0.26326959, 0.00000000, 0, 0.00417742
  - AE101: 0.11986718, 0.13131651, 0.00000000, 0, 0.01953796
  - AE103: 0.06563722, 1.25624994, 0.00000000, 0, 0.04697171
  - AE112: 0.04608317, 0.15702942, 0.00000000, 0, 0.03444658
  - AE118: 0.09651111, 1.834381, 0.00000000, 0, 0.00452028
  - AE129: 0.2398672, 0.22353423, 0.00457272, 0, 0.00849274
  - AE134: 0.50610613, 0.49891908, 0.00000000, 0, 0.01549045
  - AE114 (repeat entry in source): 0.15195947, 0.60842655, 0.00000000, 0, 0
- Note: many AE rows include zeros in some columns (explicitly recorded as 0 or 0.00000000); scientific notation appears (e.g., 2.32E-08, 8.3612E-05).

### Key patterns in ratios
- Several AE codes show relatively large ratios in AN113 (examples: AE026 0.98608212; AE056 1.89953349; AE086 1.92837856; AE093 1.05885799; AE118 1.834381).
- Many AE codes have zeros for AN116 and/or AN117 indicating no estimated ratio for those statistical areas in those asset types for 2012.

---

### Annex IV. Estimate of the Population Balance of Fixed Assets by Type of Asset and Statistical Area for the Rest of the Non-Financial Private Sector 2012 (in colones)

### Population balance — fixed asset components (selected rows)
- Table structure: columns are Statistical Area, Other buildings and structures, Machinery and equipment, Cultivated biological resources, Costs of ownership transfer on non-produced assets, Intellectual property products. Values given in colones.
- Selected entries:
  - AE001: 301,457; 974,940; 86,088; 88; 13,462
  - AE002: 56,603; 183,059; 0; 16; 2,528
  - AE003: 41,245,317; 133,391,266; 0; 12,021; 1,841,805
  - AE004: 1,090,721,628; 3,527,497,157; 0; 317,884; 48,706,044
  - AE010: 143,735,533; 464,854,341; 156,126; 41,891; 6,418,493
  - AE012: 140,297,591; 453,735,712; 15,289,496; 40,889; 6,264,972
  - AE014: 47,776,343,940; 154,513,226,023; 2,886,998; 13,924,124; 2,133,446,924
  - AE016: 49,891,637,184; 161,354,284,928; 277,842,623; 14,540,613; 2,227,905,091
  - AE022: 7,969,410,446; 25,773,828,968; 376,740,882; 2,322,636; 355,873,070
  - AE026: 27,260,984,714; 121,707,718,816; 28,087,457; 0; 0
  - AE033: 16,615,014,592; 53,734,532,477; 0; 4,842,345; 741,941,489
  - AE034: 11,949,798,573; 147,125,805,783; 0; 0; 0
  - AE037: 48,598,311,054; 157,171,545,600; 0; 14,163,681; 2,170,151,767
  - AE043: 279,538,748; 904,054,814; 372,214,704; 81,470; 12,482,769
  - AE056: 9,210,516,431; 152,059,057,406; 0; 0; 0
  - AE086: 1,103,673,398,829; 3,569,384,412,154; 0; 321,658,871; 49,284,403,608
  - AE090: 49,217,817,730; 114,082,809,819; 38,227,984; 46,274; 3,047,350,537
  - AE091: 12,200,624,415; 20,065,689,892; 0; 181,206,453; 251,215,323
  - AE093: 16,829,455,485; 298,657,640,355; 0; 0; 23,583,213
  - AE095: 74,897,273,497; 277,933,143,189; 0; 0; 474,278,149
  - AE100: 363,848,740,382; 123,562,595,014; 0; 0; 1,960,623,144
  - AE101: 94,766,252,551; 103,818,023,830; 0; 0; 15,446,586,843
  - AE112: 15,355,609,737; 52,324,581,204; 0; 0; 11,478,123,506
  - AE118: 25,911,837,213; 492,504,775,275; 0; 0; 1,213,629,294
  - AE121: 351,673,228; 36,533,477,931; 0; 71,947,021; 1,560,808,240
  - AE127: 107,320,670,715; 64,666,997,342; 0; 0; 2,236,083,537
  - AE128: 131,907,881,278; 71,807,505,698; 0; 0; 331,588,163
  - AE129: 23,339,959,262; 21,750,701,508; 444,942,209; 0; 826,374,554
  - AE134: 5,001,875,988; 4,930,845,980; 0; 0; 153,093,045
- Totals for Annex IV fixed assets (at end of the fixed-asset table):
  - 2,692,692,315,305
  - 8,258,895,416,204
  - 2,111,794,318
  - 660,197,013
  - 132,166,184,253

### Inventories (selected excerpt)
- Inventories table columns include: Inventories, Materials and supplies, Work in progress, Work in progress in cultivated biological resources, Other work in progress, Finished goods, Military inventories, Goods for resale.
- Example rows (selected numeric entries as presented in source):
  - AE003: 19; 10; 1; 0; 1; 5; 0; 1
  - AE004: 506; 276; 34; 0; 34; 139; 0; 24
  - AE014: 22,163; 12,084; 1,488; 0; 1,488; 6,072; 0; 1,031
  - AE016: 23,144; 12,619; 1,554; 0; 1,554; 6,340; 0; 1,077
  - AE022: 3,697; 2,016; 248; 0; 248; 1,013; 0; 172
  - AE033: 12; 7; 1; 0; 1; 3; 0; 1
  - AE043: 3,408; 1,858; 229; 0; 229; 934; 0; 159
  - AE086: 95,823; 31,903; 1,640; 0; 1,640; 56,885; 0; 3,754
  - AE090: 791,887; 8,612; 0; 0; 0; 2,346; 0; 780,929

### GPV 2012, Land, Valuables and Expanded balance of fixed assets (selected entries)
- Table columns: Statistical Area, GPV 2012 Millions of colones, Land, Valuables R, Expanded balance of fixed assets R, Expanded balance of fixed assets.
- Selected entries:
  - AE026: GPV 2012 Millions of colones 123425.5405; Land 0.05073778; Valuables R 6262.33798; Expanded balance of fixed assets R 0; Expanded balance of fixed assets 0
  - AE030: GPV 2012 Millions of colones 95298.71098; Land 0; Valuables R 0; Expanded balance of fixed assets R 0; Expanded balance of fixed assets 0
  - AE034: GPV 2012 Millions of colones 241075.9288; Land 0.00465905; Valuables R 1123.18478; Expanded balance of fixed assets R 0; Expanded balance of fixed assets 0
  - AE039: GPV 2012 Millions of colones 95038.43909; Land 0.003365616; Valuables R 319.862912; Expanded balance of fixed assets R 0; Expanded balance of fixed assets 0
  - AE042: GPV 2012 Millions of colones 99897.88334; Land 0.05925211; Valuables R 5919.16034; Expanded balance of fixed assets R 0; Expanded balance of fixed assets 0
  - AE043: GPV 2012 Millions of colones 18367.88418; Land 1.88342E-08; Valuables R 0.00034595; Expanded balance of fixed assets R 0; Expanded balance of fixed assets 0
  - AE048: GPV 2012 Millions of colones 127038.7932; Land 0.020506555; Valuables R 2605.12805; Expanded balance of fixed assets R 0; Expanded balance of fixed assets 0
  - AE056: GPV 2012 Millions of colones 79690.17095; Land 0.124292837; Valuables R 9904.91746; Expanded balance of fixed assets R 0; Expanded balance of fixed assets 0
  - AE060: GPV 2012 Millions of colones 36726.16593; Land 0.166766625; Valuables R 6124.69874; Expanded balance of fixed assets R 0; Expanded balance of fixed assets 0
  - AE089: GPV 2012 Millions of colones 748188.0607; Land 0.019878256; Valuables R 14872.6741; Expanded balance of fixed assets R 0; Expanded balance of fixed assets 0
  - AE090: GPV 2012 Millions of colones 1994531.288; Land 0.00923579; Valuables R 18421.0715; Expanded balance of fixed assets R 0; Expanded balance of fixed assets 0
  - AE100: GPV 2012 Millions of colones 469338.6578; Land 0.161817891; Valuables R 75947.3916; Expanded balance of fixed assets R 0.00047614; Expanded balance of fixed assets 223.471691
  - AE109: GPV 2012 Millions of colones 496091.7218; Land 0.36895533; Valuables R 183035.685; Expanded balance of fixed assets R 0; Expanded balance of fixed assets 0
  - AE112: GPV 2012 Millions of colones 95989.63331; Land 0; Valuables R 0; Expanded balance of fixed assets R 0; Expanded balance of fixed assets 0
  - AE123: GPV 2012 Millions of colones 268237.1154; Land 0.024894064; Valuables R 6677.51198; Expanded balance of fixed assets R 8.9638E-05; Expanded balance of fixed assets 24.0441057
  - AE127: GPV 2012 Millions of colones 453153.1244; Land 0.118103231; Valuables R 53518.8479; Expanded balance of fixed assets R 0.00012601; Expanded balance of fixed assets 57.101959
  - AE128: GPV 2012 Millions of colones 364363.1113; Land 0.068111822; Valuables R 24817.4352; Expanded balance of fixed assets R 0; Expanded balance of fixed assets 0
- Totals (as presented near GPV section):
  - TOTALS: 563,762
  - 353

*International Monetary Fund — Annex III and Annex IV tables (selected entries and totals as presented in the source).*

### Annex V. 2008 SNA Financial Asset Valuation Table

### Annex V. 2008 SNA Financial Asset Valuation Table

### Definitions of holding gains and types
- The nominal holding gain on a non-financial asset is "the value of the benefit accruing to the owner of that asset as a result of a change in its price over a period of time."
- The nominal holding gain on a financial asset is "the increase in value of the asset, other than transactions in the assets (including the accrual of interest over a period of time) and other changes in the volume of assets."
- The nominal holding gain on a liability is "the decrease in value of the liability, other than by transactions or by other volume changes."
- A neutral holding gain (loss) over a period is "the increase (decrease) in the value of an asset that would be required, in the absence of transactions and other changes in the volume of assets, to maintain command over the same amount of goods and services as at the beginning of the period in the absence of transactions and other changes in the volume of assets (General Price Index)."
- A real holding gain (loss) is "the amount by which the value of an asset increases (decreases) over the neutral holding gain for the period, in the absence of transactions and other changes in the volume of assets."

### Calculation principles and currency effects
- Neutral holding gains are calculated "in the same way as for any other type of asset by calculating what the holding gains would have been if the prices of the assets, expressed in the domestic currency, had moved in the same way as the general internal price level."
- Real holding gains, "again expressed in the domestic currency, can then be derived residually by subtracting the neutral from the nominal gains."
- "If, in addition to the asset being denominated in foreign currency, either the creditor or debtor is nonresident, the real holding gains (losses) of the creditor need not be equal to the real holding losses (gains) of the debtor when the general rates of inflation are different in the two countries."

### Asset-by-asset valuation outcomes (Code | Asset | Domestic Currency | Foreign Currency | Nominal Gain | Neutral Gain | Real Gain)
- AF11 | Monetary gold | Yes | No | Yes
- AF12 | SDRs | Yes | No | Yes
- AF21 | Banknotes and coins | 0 | Yes (C/Inflation is +) | Yes (C/Inflation is -)
- AF22 | Transferable deposits | 0 | Yes (C/Inflation is +) | Yes (C/Inflation is -)
- AD29 | Other deposits | 0 | Yes (C/Inflation is +) | Yes (C/Inflation is -)
- AF3 | Debt securities | [see notes below]
- AF4 | Loans | 0 | Yes (C/Inflation is +) | Yes (C/Inflation is -)
- AF5 | Equity | Yes | Yes | Yes
- AF52 | Investment fund shares/units | Yes | Yes | Yes
- AF6 | Insurance, pension, and standardized guarantee schemes | [see notes below]
- AF71 | Financial derivatives | [see notes below]
- AF72 | Employee stock options | [see notes below]
- AF81 | Trade credits and advances | 0 | Yes (C/Inflation is +) | Yes (C/Inflation is -)
- AF89 | Other accounts receivable/payable | 0 | Yes (C/Inflation is +) | Yes (C/Inflation is -)

(Note: table entries above preserve exactly the Domestic Currency / Foreign Currency / Nominal Gain / Neutral Gain / Real Gain indicators as given.)

### Special cases and detailed examples
- Deposits and loans denominated in domestic currency "do not register nominal holding gains and losses for the same reasons as currency. There may be increases in the values of a loan or a deposit during an accounting period but this must be due to transactions including the addition of interest to the previous level of principal."
- Other accounts receivable or payable denominated in domestic currency "do not register nominal holding gains and losses. All changes in value between the start and end of the accounting period are due to transactions, possibly including accrued interest. As with currency, there may be real holding gains equal in magnitude to the neutral holding losses under inflation."
- Debt securities:
  - "Debt securities typically have market values and these market values change over time. However, not all of the changes in value are treated as holding gains and losses."
  - Discounted bonds: "With discounted bonds, including deep discounted and zero coupon bonds, the difference between their issue price and their face or redemption value when they mature measures interest that the issuer is obliged to pay over the life of the bond."
  - Negotiable fixed-interest bonds: "Changes in bond prices that are attributable to changes in market rates of interest constitute price and not quantum changes. They therefore generate nominal holding gains or losses for both the issuers and the holders of the bonds. An increase in interest rates generates a nominal holding gain for the issuer of the bond and an equal nominal holding loss for the holder of the bond, and vice versa in the case of a fall in interest rates. Whenever the interest rate changes, the market value of the bond changes; this change in value is recorded as a revaluation."
- Equity:
  - "For listed shares and investment fund shares and units, market prices exist and changes in the value other than via reinvested earnings are treated as holding gains and losses exactly as for inventories with no storage component or valuables."
  - "For other forms of equity, holding gains are calculated in a manner similar to the way in which the value of the equity is calculated. For example, for a quasi-corporation where the value of other equity is derived as the balance of assets less liabilities, holding gains are calculated as the sum of holding gains on assets less the holding gains on liabilities."
- Financial derivatives and employee stock options:
  - "Financial derivatives have quoted prices and thus register nominal holding gains and losses as for listed shares and investment fund shares and units. Employee stock options may also register nominal holding gains and losses."
- Insurance and pension schemes:
  - "Exceptionally, if a figure for a claim outstanding has been agreed and it has been agreed to be indexed pending payment, then there may be a nominal holding gain or loss recorded for it."

*Annex V. 2008 SNA Financial Asset Valuation Table (excerpt as provided).*

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_Source: https://www.imf.org/-/media/files/publications/cr/2020/english/1criea2020002.pdf_