REVISIONS IN THIS ISSUE
This issue contains revisions to previously published aggregates back to June quarter 1988, as announced in the previous release. These revisions are a result of quality assurance work undertaken through reviews of compilation methods and through data provided to the ABS. Revisions have been applied to all financial instruments and sectors for the entire time series. Significant improvements include:
- Review of state and local general government balance sheets resulting in revisions to both assets and liabilities. Notable improvements include increased coverage of state general government stocks of, and transactions in, unlisted public non-financial equities as well as accounting for employee entitlement liabilities.
- Revisions to measuring household stock of unlisted private non-financial equity have been applied back to June quarter 1988 due to the implementation of a model which had previously been published to June quarter 2002. Refinements to this method have been applied resulting in revisions to the entire time series. A net transaction series is published for the first time in this issue.
- Implementation of a new derivatives model to account for domestic holdings of derivatives.
- A sector review of life insurance corporations and pension funds included confrontation with Managed Funds, Australia (cat. no. 5655.0) of total assets resulting in an /increase in stocks of unlisted private non-financial equities, an area of data that was significantly undercovered.
- Improvements to compilation methods used for measuring stocks of, and transactions in, insurance technical reserve assets and liabilities of life insurance corporations and pension funds. Detail on ABS method in measuring insurance technical reserve assets and liabilities is outlined in the special article Insurance technical reserves: sources and methods in March quarter 2001 issue of this publication. Improvements have been applied to compilation practices and further data confrontation with superannuation information published by the Australian Prudential Regulation Authority (APRA) which has resulted in a net transaction series for life insurance and pension funds in other private non-financial unlisted equities.
- Refinements to the treatment of net errors and omissions published in Table 22 - Flow of funds matrix of this publication. In the financial accounts, adjustments are made to minimise the net errors and omissions between the net lending/borrowing derived from the capital account and the change in financial position derived in the financial account. These adjustments are made to the financial instrument 'accounts receivable/payable' which is considered to be of lower quality. Detail on ABS methodology is outlined in September quarter 2010 issue of this publication. On a sectoral basis, the ABS had maintained net errors and omissions close to zero for the general government and rest of world sectors in previous issues of this publication. The new treatment of net errors and omissions resulted in no longer maintaining zero net errors and omissions at the total general government level however it has been maintained at the national general government subsector level.
- Quality assurance and refinements to general compilation practices have resulted in revisions across various sectors and counterparts in the debt and equity securities markets.