Accrual basis of recording
A recording method in which revenues, expenses, lending and borrowing are recorded as they are earned, accrued or incurred regardless of when payment is made or received.
Capital transfers
Transactions in which the ownership of an asset (other than cash and inventories) is transferred from one institutional unit to another, in which cash is transferred to enable the recipient to acquire another asset or in which the funds realised by the disposal of another asset are transferred.
Cash flow statement
The GFS financial statement that records cash flows from operating, investing and financing activities.
Consolidation
The process of elimination of all within-sector asset-liability positions, and all transactions between two units of the same sectors. Consolidation can be applied to the statistics of any group of units of analytical interest.
Current transfers
Amounts payable or receivable for current purposes for which no economic benefits are receivable or payable in return.
Depreciation
The accounting process of systematically allocating the cost lest estimated residual value of an asset over its expected useful life. Depreciation as recorded in government financial records may deviate considerably from consumption of fixed capital, as depreciation is normally calculated using the original costs of fixed assets.
General government sector
Institutional sector comprising all government units and non-profit institutions controlled and mainly financed by government.
Gross fixed capital formation
The value of acquisitions of new and existing produced assets, other than inventories, less the value of disposals of new or existing produced assets, other than inventories.
Interest
Form of property income earned by making financial assets available to other units which is equal to the amount the debtor becomes liable to pay to the creditor over a given period of time without reducing the amount of the principal outstanding.
Inventories
Stocks of goods held that are intended for sale, use in production, or other use at a later date.
Local level of government
The level of government of public sector units that have a local role or function i.e. the political authority underlying their functions is limited to a local government area or other region within a state or territory or the functions involve policies that are primarily of concern at a local level.
Multi-jurisdictional sector
The multi-jurisdictional sector contains units where jurisdiction is shared between two or more governments, or classification of a unit to a jurisdiction is otherwise unclear. The main type of units currently falling into this category are the public universities.
Net acquisition of non-financial assets
Gross fixed capital formation less depreciation plus change in inventories plus other transactions in non-financial assets.
Net lending/borrowing
The financing requirement of government, calculated either as the GFS net operating balance less the net acquisition of non-financial assets. A positive result reflects a net lending position and a negative result reflects a net borrowing position.
Net operating balance
This is calculated as GFS revenue minus GFS expenses. It is equivalent to the change in net worth arising from transactions.
Operating statement
The operating statement presents details of transactions in GFS revenues, GFS expenses and the net acquisition of non-financial assets for an accounting period. GFS revenues are broadly defined as transactions that increase net worth and GFS expenses as transactions that decrease net worth. Net acquisition of non-financial assets equals gross fixed capital formation, less depreciation, plus changes in inventories plus other transactions in non-financial assets. Two key GFS analytical balances in the operating statement are GFS Net Operating Balance (NOB) and GFS Net Lending(+)/Borrowing(-).
State/territory level of government
The level of government of public sector units that have a state or territory role or function, i.e. the political authority underlying their functions is limited to a state or territory or the functions involve policies that are primarily of concern at a state or territory level.
Subsidies
Current transfers that government units make to enterprises either on the basis of the levels of their production activities or on the basis of the quantities or values of the goods or services that they produce, sell, or import.
Surplus/deficit
Supplementary balance in the GFS cash flow statement that is derived as net cash flows from operating activities plus net cash from investments in non-financial assets less distributions paid less value of assets acquired under finance leases.
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