Issue 34. Transfer of ownership of an asset during its life |
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| Description of the issue |
| Both the case where a natural resource is leased for an extended period of time and the case of PPPs are ones where the economic ownership of an asset effectively changes hands part way through its life. The terms of the arrangements are such that recompense from the initial user for the change of ownership to the second user is bundled into the arrangements for payments during the lease. The transfer of the ownership has to be recorded as an other change in the classification of assets and is not reflected in the production or distribution of income accounts. This is a deficiency that could be rectified by some elaboration of the concept of financial leasing.
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| Discussions on the issue |
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The issue still needs to be addressed. |
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