The principle of ownership is central to the determination of the timing of recording of transactions in financial and non-financial assets (including transaction in goods). However, the 1993 SNA does not explicitly define ownership. Does the term “economic ownership” better reflect the underlying economic reality by reflecting risks and rewards of ownership? Should the SNA draw a distinction between legal, physical, and economic ownership?
The flows of goods and changes in the financial account arising from a change in residence of individuals are treated as imputed transactions in the Balance of Payments Manual. These flows are offset in the capital account by capital transfers called migrants’ transfers. The 1993 SNA is not explicit on the treatment of these flows. Since no change in ownership occur, Should the changes in financial claims and liabilities due to change in residence of individuals be treated as reclassification in other changes in volume account?
The different statistical manuals do not use the same approach to the time of recording for scheduled debt repayments.Balance of Payments Manual, fifth edition, the External Debt Guide, and Government Finance Statistics Manual use the due-for-payment date basis involving imputation of transactions that the liability has been repaid and replaced by a short term debt. The 1993 SNA uses an accrual basis involving no imputation of transactions but continuing to show arrears in the same instrument until the liability is extinguished. If the accrual basis is followed, sub-headings or memorandum items for all or selected arrears might be introduced. |
