| The 1993 SNA records improvements to land as gross fixed capital formation, but in the balance sheet such
improvements are included with land itself – a non-produced asset. Should land be split into two, with one
part recorded as a fixed asset and the other part recorded as a non-produced asset? If so, how should the
separation be made? One option is to distinguish between land that is in, or nearly in, its natural state as a
non-produced asset and the remainder as a fixed asset. Another option is to separate land from the
improvements made to it, and record the former as a non-produced asset and the latter as a fixed asset. |
