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The 2008 SNA introduced the measurement of capital services and incorporated it in the national accounts framework. Capital services are used in productivity statistics to represent the contribution of capital to the process of production. However, the change-of-ownership basis of this concept creates capital services measurement problems in cases where production of an asset occurs over a number of accounting periods. In cases where a building, structure or other significant asset may not be contributing to production, the SNA recommends that gross fixed capital formation be recorded progressively as production of the asset takes place.
The question is whether capital services provided by assets contributing to production inventories and assets not contributing to production are, by nature, all the same. In addition, the 2008 SNA recommendation on the treatment of progressive change of ownership of buildings and structures needs clarification in respect of its consistency with the treatment of other kinds of assets that have the same characteristics as buildings and structures. Took note of the importance to resolve the treatment of capital services of assets not contributing to production, such as those that are constructed over more than one accounting period or those that are temporarily inactive for one reason or another. Took note of the need for further research on the utilization of capital in the measurement of capital services.
For more information see paragraphs 32 and 33 of the conclusions of the 7th AEG meeting.
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