Holding gains and losses (sometimes referred to as revaluations in GFS) are defined as changes in the current market value of an asset or liability resulting from changes in the level and structure of prices, assuming that the asset or liability has not changed qualitatively or quantitatively. Paragraph 10.1 of the IMF GFSM 2014 notes that holding gains or losses can apply to almost all assets or liabilities in GFS, and in the case of assets and liabilities expressed in a foreign currency, includes gains and losses resulting from changes in exchange rates. Capital gains and losses made on the sale of assets (other than inventories) are recorded as holding gains and losses in GFS, and not as revenues.

Paragraph 10.1 of the IMF GFSM 2014 further notes that in GFS, holding gains or losses affects net worth, and the words gain and loss are used in reference to the direction of the change in net worth. A flow that increases the value of an asset or decreases the value of a liability will increase net worth and is referred to as a holding gain. A flow that decreases the value of an asset or increases the value of a liability will decrease net worth and is referred to as a holding loss. Due to the counterparty relationship between financial assets and liabilities in GFS (see paragraph 8.10 of this manual), any references to financial assets in this chapter can also be assumed to refer to liabilities. The basis for valuing flows and stocks is the current market value. Therefore, changes in the current market values of stocks are recorded as holding gains or losses, whether the holding gain or loss is realised or not.

Paragraph 10.5 of the IMF GFSM 2014 specifies that it does not matter whether an asset is held for the entire reporting period; acquired during the reporting period and held until the end of the reporting period; held at the beginning of the reporting period and disposed of during the reporting period; or acquired and disposed of within the same reporting period. In each case, a holding gain or loss is possible and must be recorded for the value of the entire difference between the value of the asset or liability in the opening balance sheet date (or at the time of acquisition of an asset or liability during the reporting period) and the value of the asset or liability at the closing balance sheet date (or at the time of disposal of an asset during the reporting period).

Holding gains and losses may be described as realised or unrealised in GFS. Paragraph 10.6 of the IMF GFSM 2014 defines a realised holding gain (or loss) as occurring when an asset is sold, redeemed, used or otherwise disposed of, or when a liability incorporating a holding gain (or loss) is repaid during the reporting period. The value of transactions in assets or liabilities include the value of realised holding gains or losses. An unrealised holding gain (or loss) is one that is accruing on an asset which is still owned or held, or a liability that is still outstanding at the end of the reporting period. The values of assets and liabilities held at the closing balance sheet date will indicate the presence of any unrealised holding gains or losses when compared with the same values at the opening balance sheet date.

Holding gains and losses are further defined as neutral holding gains and losses and real holding gains in GFS. Paragraph 10.11 of the IMF GFSM 2014 indicates that a neutral holding gain or loss is the value of a holding gain or loss that would accrue if the price of the asset (or liability) changed in the same proportion as the general price level. It is the value needed to preserve the real value of the asset. A real holding gain is the value accruing to an asset as a result of a change in its price relative to the prices of goods and services in general. An increase in the relative price of an asset leads to a positive real holding gain and a decrease in the relative price of an asset leads to a negative real holding gain.

Holding gains and losses do not include changes in the value of assets or liabilities resulting from changes in the quantity or quality of the asset or liability. Any changes to the quality or quantity of an asset or liability is recorded as other changes in the volume of assets and liabilities. Changes in the value of nonfinancial assets due to normal wear and tear in the process of production are recorded as depreciation of non-financial produced assets and not as holding gains or losses. Paragraph 10.8 of the IMF GFSM 2014 notes in particular:

1. The decline in the value of non-financial produced assets due to physical deterioration and normal rates of obsolescence is recorded as depreciation of fixed produced assets (non-defence) (ETF 1241, TALC, COFOG-A), or depreciation of fixed produced assets (defence) (ETF 1242, TALC, COFOG-A), and is not a holding loss.
2. Debt securities (such as bills or bonds) issued at a discount may increase in value progressively prior to redemption because of the accrual of interest. In GFS, this interest is recorded as interest income (ETF 1131, SDC) and is not a holding gain.

Other changes in the volume of assets and liabilities (also referred to as other volume changes in GFS) are defined in paragraph 10.1 of the IMF GFSM 2014 as any change in the volume of an asset or liability that does not result from a transaction or a holding gain. Therefore, other changes in the volume of assets and liabilities result from events that change the quality and quantity of existing assets or liabilities.

Other changes in the volume of assets include events that bring about an addition of stocks of assets or liabilities to the balance sheet, or a removal (or part-removal) of stocks of assets or liabilities from the balance sheet, resulting in a change to net worth. Examples of events that result in additions to net worth include increases in the stock of non-financial non-produced assets through mineral discoveries, or the recognition of assets not previously included in the balance sheet. Examples of events that result in reductions of net worth include the unilateral writing off of bad debts by creditors, destruction of assets by fire (or other catastrophic events), or the depletion of natural assets (e.g. forest, fisheries) as a result of physical removal or use. Also included in other volume changes are changes to net worth resulting from reclassifications of pre-existing assets or liabilities.

Paragraph 10.46 of the IMF GFSM 2014 describes other changes in the volume of assets and liabilities as falling into three main categories:

1. The entrance and exit of assets and liabilities on the balance sheet as a result of normal events other than transactions - these involve the appearance or disappearance of existing resources as economic assets, such as naturally occurring assets (e.g. discovery of mineral deposits), or assets created by human activity (e.g. recognition of valuables or other assets not previously recognised).
2. The effects of exceptional, unanticipated external events (such as natural disasters and war) affecting the quality of assets and corresponding liabilities.
3. Changes to assets and liabilities that reflect changes in the classification of the sector or structure of institutional units or in the classification of assets or liabilities.

The appearance or disappearance of assets and liabilities on the GFS balance sheet are recorded through an other change in the volume of assets and liabilities entry in the GFS accounts. Paragraph 10.48 of the IMF GFSM 2014 states that events such as this, include the addition of resources on the GFS balance sheet that were previously not recognised as economic assets but have become so due to an event that gives the resources the capability to provide economic benefits and enforceable ownership rights over them. Such a situation may come about as a result of changes in the relative price of a particular resource, improvements in technology, changes to laws or restrictions relating to the resource, or other changes that transform the resource into an economic asset (for the definition, see paragraphs 8.4 to 8.7 of this manual). Conversely, an economic asset may need to be removed from the balance sheet because it is no longer capable of supplying economic benefits, or because the owner is no longer willing or capable of exercising ownership rights over the asset. In each of these cases, the addition or removal of economic assets from the balance sheet are recorded through an other change in the volume of assets and liabilities entry in the GFS accounts.

In GFS, financial assets and liabilities may appear or disappear from the balance sheet in several ways. Paragraph 10.57 of the IMF GFSM 2014 gives two examples as:

• Debt write off: a creditor may determine that a financial claim can no longer be collected because of the debtor’s bankruptcy, or other factors such as a court order. If so, the creditor writes off the debt and removes the claim from their balance sheet by means of an entry in other changes in the volume of assets. The write off may be full or partial. Debt write off is further discussed in Chapter 13 Part B of this manual.
• Debt assumption: a general government unit may assume a liability from a public sector unit or corporation as part of a bailout operation. Note that in Australian GFS, debt assumption is recorded as transactions in financial assets (net) (ETF 3111, TALC 452, SDC) or (ETF 3211, TALC 552, SDC) rather than reclassifications of financial assets / liabilities through other changes in the volume of assets and liabilities as is suggested in the IMF GFSM 2014. Debt assumption is further discussed in Chapter 13 Part B of this manual.

Common appearances and disappearances of assets and liabilities on the GFS balance sheet also relate to non-produced assets. Paragraph 10.52 of the IMF GFSM 2014 explains the balance sheet effects of the entrance and exit of naturally occurring assets. Some of this information has been reproduced in Box 11.1 below:

Source: Based on paragraph 10.52, International Monetary Fund Government Finance Statistics Manual, 2014.

Other changes in the volume of assets and liabilities also record the balance sheet effects of a reduction in the value of an asset (or even its total disappearance) that is not related to the nature of the asset, but to conditions prevailing in the economy that impact either the value or the ownership of assets. These types of events may be the result of catastrophic losses, or the seizure of assets by government units:

• Catastrophic losses - these are defined as the partial or complete destruction of a significantly large number of assets within any of the asset categories resulting from a large-scale, discrete, and recognisable event. Paragraph 10.60 of the IMF GFSM 2014 describes these types of events as including major earthquakes, volcanic eruptions, tidal waves, exceptionally severe cyclones, droughts, and other natural disasters; acts of war, riots, and other political events; and technological accidents such as major toxic spills or release of radioactive particles into the air. Included here are such major losses as deterioration in the quality of land caused by abnormal flooding or wind damage; destruction of cultivated assets by drought or outbreaks of disease; destruction of buildings, equipment, or valuables in forest fires or earthquakes. An entry in other changes in the volume of assets and liabilities is recorded to reduce or eliminate the value of any asset damaged or destroyed through catastrophic losses 
• Paragraph 10.61 of the IMF GFSM 2014 states that although produced assets are the most likely candidates to be damaged or destroyed by a catastrophic loss, non-produced assets and financial assets are also subject to damage or destruction. For example, major decreases in the value of land and other natural assets caused by abnormal flooding or wind damage, or the accidental destruction of currency or bearer securities as a result of natural catastrophes or abnormal political events would be included. 
• Seizure of assets - government units may take possession of the assets of other institutional units without full compensation. Paragraph 10.62 of the IMF GFSM 2014 indicates that such seizures of assets (whether legal or illegal) are not classified as capital transfers in GFS because they do not take place by mutual agreement of the units involved. The current market value of seized assets is recorded as an other change in the volume of assets and liabilities entry to add the seized assets to the government accounts. The difference between the market value of the assets seized and any compensation provided is recorded as other changes in the volume of assets and liabilities in the event of a compensated seizure. Foreclosures and repossessions of assets by creditors are treated as transactions rather than other changes in the volume of assets and liabilities because the contractual agreement between debtor and creditor provides this avenue of recourse.

A reclassification rearranges the classification of assets and liabilities without changing the net worth of the unit or sector involved. Paragraph 10.76 of the IMF GFSM 2014 indicates that the composition of the general government or public sector’s balance sheet may change because there has been a change in the sector or structure of an institutional unit, or category of assets or liabilities.

An entire unit may be reclassified from the general government sector to another sector, or to the general government sector from another sector without a change of ownership or control (for definition, see Chapter 2 Part G, and paragraph 8.3 of this manual). Paragraph 10.77 of the IMF GFSM 2014 states that this type of reclassification usually is needed when a unit begins (or ceases) to sell its output at economically significant prices (for definition, see paragraph 2.32 of this manual). When a unit is reclassified out of the general government sector, all of the unit’s assets and liabilities are removed from the general government sector through other changes in the volume of assets and liabilities account entries. The reverse applies if a unit is reclassified into the general government sector. When a public corporation is privatised, all of the unit’s assets, liabilities, and net worth are reclassified from the public corporations sector to the private corporations sector.

A change in the structure of units is also recorded as other changes in the volume of assets and liabilities. Paragraph 10.78 of the IMF GFSM 2014 gives an example of changes in the structure of units as occurring in cases where two general government units merge into a single unit, or a single general government unit may split into two units due to administrative re-arrangements (known as machinery of government changes). When two units are merged, all financial claims and liabilities that existed between them are eliminated in GFS. Symmetrically, when a unit is split into two or more units, new financial claims and liabilities may appear between the new units.

Sometimes it may be necessary to reclassify existing assets and liabilities from one category to another in GFS. Paragraph 10.80 of the IMF GFSM 2014 indicates that this usually occurs when there is a change in the use or purpose of an asset. The change in classification is recorded as other changes in the volume of assets and liabilities with the same value for both entries, and so there is no effect on net worth. If the change in the use or purpose of an asset also means a change in its value, then a second entry in other changes in the volume of assets and liabilities is recorded for the change in value rather than a holding gain or loss. The change in value is not recorded as a holding gain because the value increase is due to a change in the use or purpose of the asset, and not due to a price change in the value of the asset held.

Paragraph 10.84 of the IMF GFSM 2014 gives the following examples of changes in the classification of financial assets and liabilities: 

• When monetary gold held in the form of gold bullion becomes a reserve asset, it enters the financial part of the balance sheet as a reclassification from valuables (TALC 221) to monetary gold (bullion) (TALC 413) via an other changes in the volume of assets entry in the accounts. When allocated gold accounts become reserve assets they are also reclassified from valuables (TALC 221) to monetary gold (allocated and unallocated) (TALC 414) via an other changes in the volume of assets in the accounts. When unallocated gold accounts become reserve assets they are reclassified from cash and deposits (TALC 411) to monetary gold (allocated and unallocated) (TALC 414), also through an other changes in the volume of assets entry in the accounts. Monetary gold is further discussed in paragraphs 8.156 to 8.158 of this manual.
• When loans become tradeable, a reclassification is recorded from advances other than concessional loans (TALC 433) to debt securities (TALC 421) through an other changes in the volume of assets entry. A similar reclassification will apply if concessional loans become tradeable (recorded as advances - concessional loans (TALC 432)).
• When government units acquire equity in a public corporation or quasi-corporation as a result of legislation or an administrative change, this event will amount to a reclassification of the existing assets and liabilities that results in an addition of shares and other equity to the balance sheets of both entities through an other changes in the volume of assets entry. Equity is further discussed in paragraphs 8.169 to 8.172 of this manual.

The basis for the valuation of flows and stocks in GFS is the current market value. Therefore, changes in the current market values of stocks of assets and liabilities should be recorded as holding gains or losses (also known as revaluations), whether the holding gain or loss is realised or not. In practice, it is not always possible to record a current market value for non-financial assets owned by government if no identifiable market exists. In this case holding gains and losses may be under-recorded in any given accounting period. Valuation at current market prices is most likely for public sector owned financial assets and liabilities that are traded on financial markets. The value of changes in the quantity or quality of financial assets and liabilities should also be recorded at the current market value equivalent where possible.

Other economic flows can take place at a single point in time or continuously throughout the reporting period, and should be recorded accordingly. For example, the destruction of an asset by fire happens at a specific point in time, whereas holding gains and losses occur continuously for as long as the asset is held. Any changes in structure and classification of institutional units or assets / liabilities should be recorded at the moment the unit or asset / liability is re-classified into a different category. In practice, it may not be possible to continuously record stocks of assets or liabilities at current market values. In this case, the current market value of holding gains / losses and other changes in the volume of assets and liabilities are calculated at the end of each reporting period, or at the time an economic event (such as the sale or disposal of an asset) occurs.

In concept, holding gains and losses occur continuously because prices change continuously. Paragraph 10.7 of the IMF GFSM 2014 recommends that holding gains or losses should be recorded whenever a price change occurs. This may be at a different time from when the holding gain is realised. The correct value of the revaluation must cover the full value of the holding gains or losses that arose during the reporting period if unrealised, or up to the point of disposal if realised. In reality, holding gains for the entire reporting period are normally estimated at the end of the reporting period, or when an asset is sold or disposed of, or a liability incorporating a holding gain or loss is repaid.

Other changes in the volume of assets and liabilities should be recorded at the time that the relevant economic event occurs. Some other volume changes occur continuously or at frequent intervals, such as the depletion of subsoil and other naturally occurring assets, or environmental damage to assets. Paragraph 10.52 of the IMF GFSM 2014 states that it may be difficult to determine the exact time that a natural asset should be added to the GFS balance sheet. Often this is the date at which the first substantial commercial exploration or the signing of a contract to permit commercial exploitation is used to establish the time of recording.

Paragraphs 10.53 and 10.54 of the IMF GFSM 2014 include the following guidance on the time of recording other volume changes on other items as appears in Table 11.1 below:

The main purpose for the recording of other economic flows in GFS is to record the effects on net worth. Other economic flows are recorded in the statement of stocks and flows, the statement of stocks and flows of financial assets and liabilities by source, and the statement of total changes in net worth. Paragraph 10.2 of the IMF GFSM 2014 describes the change in net worth due to other economic flows as the sum of the change in net worth due to holding gains or losses and the change in net worth due to other changes in the volume of assets. In particular:

• The change in net worth due to holding gains and losses is defined as the sum of the positive or negative holding gains on all assets and liabilities.
• The change in net worth due to other changes in volume is defined as the sum of the positive and negative other changes in the volume of assets and liabilities.

The types of other economic flow events that add to net worth include the discovery and extraction of mineral deposits or other subsoil assets, natural growth of uncultivated biological resources (such as natural forests or fish stocks) and the recognition of assets not currently included in the balance sheet. The type of events that result in reductions to net worth include the unilateral writing off of bad debts by creditors, destruction of assets by fire (or other catastrophe) and the depletion of naturally occurring assets (e.g. virgin forests, fisheries) as a result of physical removal or use. Also included in other volume changes are changes to net worth resulting from reclassifications of institutional units, or assets / liabilities.

Paragraph 10.3 of the IMF GFSM 2014 states that many other economic flows change both the value of an asset or a liability and the value of net worth by the same amount. For example, holding gains that lead to an increase in the value of assets increase net worth. In contrast, other economic flows related to reclassifications do not affect total net worth. These reclassifications change the value of two assets or two liabilities by the same amount but with opposite signs, or they change one asset and one liability by the same amount, for example, the reclassification of a loan when it becomes negotiable.

In GFS, other economic flows are classified in the economic type framework (ETF) in the other economic flows of assets and liabilities classification (ETF 5). Table 11.2 below shows the broad classification of other economic flows of assets and liabilities as it appears in the economic type framework (ETF). 

Additional classifications to those set out in Table 11.2 above are required to populate the statement of stocks and flows, the statement of stocks and flows of financial assets and liabilities by source, and the statement of total changes in net worth. These additional classifications include the: 

• Type of asset and liability classification (TALC) - this identifies assets and liabilities by type of asset / liability (for further information on the TALC, see paragraphs 4.53 to 4.64, paragraphs 0 to 8.144 and Appendix 1 Part A of this manual.

The detailed classification of the other economic flows of assets and liabilities is shown in Table 11.3 below. This shows a hierarchical classification of financial assets, non-financial assets and liabilities in the context of either holding gains or losses (revaluations) or other changes in volume. Also shown are the additional classifications required to record other economic flows of assets and liabilities in GFS.

The following paragraphs discuss the classification of holding gains and losses in the context of financial assets and liabilities, non-financial assets, and the change in net worth due to holding gains and losses. The letters and numbers in brackets after each classification category are the GFS classification codes related to each category.

The classification of holding gains and losses (for financial assets: ETF 5111, TALC 4 and for liabilities: ETF 5113, TALC 5) record the value of holding gains and losses on financial assets (ETF 5111, TALC 4) and liabilities (ETF 5113, TALC 5) during the reporting period. In this chapter, holding gains and losses on financial assets and liabilities are discussed together to emphasise the counter party relationship between financial assets and liabilities. In GFS, holding gains and losses on financial assets and liabilities are further classified as:

• Holding gains and losses on currency and deposits (ETF 5111, TALC 41 and ETF 5113, TALC 51); 
• Holding gains and losses on debt securities and related assets / liabilities (ETF 5111, TALC 42 and ETF 5113, TALC 52); 
• Holding gains and losses on loans and placements (ETF 5111, TALC 43 and ETF 5113, TALC 53); 
• Holding gains and losses on insurance, superannuation and standardised guarantee schemes (ETF 5111, TALC 44 and ETF 5113, TALC 54); and 
• Holding gains and losses on other financial assets and liabilities (ETF 5111, TALC 45 and ETF 5113, TALC 55).

Holding gains and losses on currency and deposits (for financial assets: ETF 5111, TALC 41 and for liabilities: ETF 5113, TALC 51) record the value of holding gains and losses on cash and deposit financial assets (ETF 5111, TALC 41) and liabilities (ETF 5113, TALC 51) held by public sector units. In GFS, all financial assets except for monetary gold in the form of gold bullion held as reserve assets have counterpart liabilities. In GFS, holding gains and losses on cash and deposits are further classified as:

• Holding gains and losses on cash and deposits (for financial assets: ETF 5111, TALC 411 and for liabilities: ETF 5113, TALC 511);
• Holding gains and losses on Special Drawing Rights (SDRs) (for financial assets: ETF 5111, TALC 412 and for liabilities: ETF 5113, TALC 512); 
• Holding gains and losses on monetary gold (bullion) (ETF 5111, TALC 413) (asset only); and 
• Holding gains and losses on monetary gold (allocated and unallocated) (for financial assets: ETF 5111, TALC 414 and for liabilities: ETF 5113, TALC 511).
• Holding gains and losses on cash and deposits (for financial assets: ETF 511

Holding gains and losses on cash and deposits (for financial assets: ETF 5111, TALC 411 and for liabilities: ETF 5113, TALC 511) record the value of holding gains and losses on currency and deposit assets (ETF 5111, TALC 411) and liabilities (ETF 5113, TALC 511) held by public sector units. Currency and deposits held in a foreign currency are subject to holding gains and losses through movements in the exchange rate. Further information on cash and deposits can be found in paragraphs 8.150 to 8.154 of this manual.

Holding gains and losses on Special Drawing Rights (SDRs) (for financial assets: ETF 5111, TALC 412 and for liabilities: ETF 5113, TALC 512) record the value of holding gains and losses on SDR assets (ETF 5111, TALC 412) and liabilities (ETF 5113, TALC 512) held by the Commonwealth Government of Australia. Paragraph 10.22 of the IMF GFSM 2014 indicates that the value of an SDR is based on a basket of key currencies; therefore, the value of SDRs is always subject to holding gains and losses. From time to time, new allocations of SDRs may be made, however when this occurs, the allocation is recorded as a transaction under transactions in SDRs (ETF 3111, TALC 412, SDC). Further information on SDRs can be found in paragraph 8.155 of this manual.

Holding gains and losses on monetary gold (bullion) (ETF 5111, TALC 413) (asset only) records the value of holding gains and losses on gold in the form of gold bullion (ETF 5111, TALC 413) held as reserve assets by the Commonwealth Government of Australia. Monetary gold in the form of gold bullion is the only financial asset that has no counterpart liability in GFS. Paragraph 10.21 of the IMF GFSM 2014 notes that the price of gold is usually quoted in dollars, therefore monetary gold in the form of gold bullion is subject to holding gains and losses because of changes in the exchange rate as well as changes in the price of gold itself. Further information on monetary gold (bullion) can be found in paragraphs 8.156 to 8.157 of this manual.

Holding gains and losses on monetary gold (allocated and unallocated) (for financial assets: ETF 5111, TALC 414 and for liabilities: ETF 5113, TALC 511) record the value of holding gains and losses on gold in the form of allocated and unallocated gold account assets (ETF 3111, TALC 413) and liabilities (ETF 5113, TALC 511) held as reserve assets by public sector units. Changes in the price of monetary gold in the form of allocated and unallocated gold accounts is subject to holding gains and losses through movements in the exchange rate as well as changes in the price of gold itself. Further information on monetary gold (allocated and unallocated) can be found in paragraph 8.158 of this manual.

Holding gains and losses on debt securities and related assets (for financial assets: ETF 5111, TALC 42 and for liabilities: (ETF 5113, TALC 52) record the value of holding gains and losses on debt securities and related financial assets (ETF 5111, TALC 42) and liabilities (ETF 5113, TALC 52) held by public sector units. In GFS, holding gains and losses on debt securities and related assets and liabilities are further classified as:

• Holding gains and losses on debt securities (for financial assets: ETF 5111, TALC 421 and for liabilities: ETF 5113, TALC 521); 
• Holding gains and losses on financial derivatives (for financial assets: ETF 5111, TALC 422 and for liabilities: ETF 5113, TALC 522); 
• Holding gains and losses on employee stock options (for financial assets: ETF 5111, TALC 423 and for liabilities: ETF 5113, TALC 523); 
• Holding gains and losses on equity including contributed capital (for financial assets: ETF 5111, TALC 424 and for liabilities: ETF 5113, TALC 524); and 
• Holding gains and losses on investment fund shares or units (for financial assets: ETF 5111, TALC 425 and for liabilities: ETF 5113, TALC 525).

Holding gains and losses on debt securities (for financial assets: ETF 5111, TALC 421 and for liabilities: ETF 5113, TALC 521) record the value of holding gains and losses on debt security assets (ETF 5111, TALC 421) and liabilities (ETF 5113, TALC 521) held by public sector units. Paragraph 10.24 of the IMF GFSM 2014 indicates that debt securities typically have market prices that change over time. Changes in the value of the stock of debt securities between balance sheet dates arise from transactions in debt securities (i.e. acquisitions, disposals, and the accrual of interest), other changes in the volume of assets (such as writeoffs), and holding gains and losses (e.g. changes in the market rate of interest, exchange rate, expectation of creditworthiness, etc.). Paragraphs 10.25 to 10.29 of the IMF GFSM 2014 note the following information regarding holding gains or losses on debt security assets and liabilities:

• When debt securities (especially deep discount and zero-coupon bonds) are issued at a discount, then in the absence of other changes, the value will gradually rise over the life of the bond until it reaches the maturity value. This gradual increase in the market price of a bond is attributable to the accumulation of accrued interest and is not a holding gain. The converse treatment applies to bonds issued at a premium.
• The values of debt securities may change when the market rates of interest and / or exchange rates change. With the exception of broad based index-linked securities, changes in the values of debt securities that are attributable to changes in market rates of interest and exchange rates (for debt securities denominated in another currency) are considered to be holding gains or losses. An increase in interest rates causes a decrease in the market value of fixed rate debt securities, which is a holding gain for the debtor and a holding loss for the creditor, and conversely for a decrease in interest rates.
• The price of bonds may change because of a change in the creditworthiness of the issuer or guarantor. Such changes also give rise to holding gains or losses. 
• When the amount to be paid at maturity or when the coupon payments and the amount to be paid at maturity are indexed to a narrow index (e.g. a gold index) that includes a holding gain motive, any deviation of the underlying index from the originally expected path leads to holding gains or losses. 
• Holding gains or losses may accrue on bills in the same way as for bonds. However, because bills are short-term debt securities with much shorter times to maturity, the holding gains generated by interest rate changes are often much smaller than on bonds with the same values.

Further information on debt securities can be found in paragraphs 8.160 to 8.161, and Chapter 13 Part B of this manual.

Holding gains and losses on financial derivatives (for financial assets: ETF 5111, TALC 422 and for liabilities: ETF 5113, TALC 522) record the value of holding gains and losses on financial derivative assets (ETF 5111, TALC 422) and liabilities (ETF 5113, TALC 522) held by public sector units. In Australian GFS, financial derivatives are recorded at their current market value when they are created, traded, or extinguished. Changes in the observable market price of the financial derivative leads to holding gains or losses. Further information on financial derivatives can be found in paragraphs 8.162 to 8.164, and Chapter 13 Part B of this manual.

Holding gains and losses on employee stock options (for financial assets: ETF 5111, TALC 423 and for liabilities: ETF 5113, TALC 523) record the value of holding gains and losses on employee stock option assets (ETF 5111, TALC 423) and liabilities (ETF 5113, TALC 523) held by public sector units. Paragraph 10.43 of the IMF GFSM 2014 states that any change in value between the grant date and vesting date of the employee stock option should be recorded as compensation of employees, while any change in the value between vesting date and exercise date is treated as a holding gain or loss. In practice, and for pragmatic reasons, the whole of the increase between grant date and exercise date is treated as a holding gain or loss. An increase in value of the share price above the strike price is a holding loss for the employer. Further information on employee stock options can be found in paragraphs 8.165 to 8.168 of this manual.

Holding gains and losses on equity including contributed capital (for financial assets: ETF 5111, TALC 424 and for liabilities: ETF 5113, TALC 524) record the value of holding gains and losses on equity including contributed capital in the form of financial assets (ETF 5111, TALC 424) and liabilities (ETF 5113, TALC 524) held by public sector units. Public sector units hold financial assets (or liabilities) representing equity including contributed capital in PNFCs, PFCs and possibly in private sector entities. For listed entities, the current market value of equity is the number of shares held by the public sector unit multiplied by the market price of each share. Increases and decreases in the current market value results in holding gains or losses on equity held in listed entities. Since there is no current market value for the equity of unlisted entities, this value is set to be equal to the assets less liabilities of the entities in question, since in the event of being folded up, this 'residual' is what the owner unit has a claim over. Changes in the value of this residual amount results in holding gains and losses on equity held in unlisted entities. Further information on equity including contributed capital can be found in paragraphs 8.169 to 8.170 of this manual.

Holding gains and losses on investment fund shares or units (for financial assets: ETF 5111, TALC 425 and for liabilities: ETF 5113, TALC 525) record the value of holding gains and losses on investment fund shares or units in the form of assets (ETF 5111, TALC 425) and liabilities (ETF 5113, TALC 525) held by public sector units. Investment fund shares or units consist of collective investment undertakings through which investors pool funds for investment in financial or non-financial assets. These funds issue shares (if a corporate structure is used) or units (if a trust structure is used). Holding gains and losses on investment fund shares or units refer to increases or decreases in the value of shares or units issued by mutual funds and unit trusts. Further information on investment fund shares or units can be found in paragraphs 8.171 to 8.172, and Chapter 13 Part B of this manual.

Holding gains and losses on loans and placements (for financial assets: ETF 5111, TALC 43) and (for liabilities: ETF 5113, TALC 53) record the value of holding gains and losses on loan and placement assets (ETF 5111, TALC 43) and liabilities (ETF 5113, TALC 53) that are held by public sector units. In GFS, holding gains and losses on loans and placements are further classified as:

• Holding gains and losses on finance leases (for financial assets: ETF 5111, TALC 431 and for liabilities: ETF 5113, TALC 531); 
• Holding gains and losses on advances - concessional loans (for financial assets: ETF 5111, TALC 432 and for liabilities: ETF 5113, TALC 532); 
• Holding gains and losses on advances other than concessional loans (for financial assets: ETF 5111, TALC 433 and for liabilities: ETF 5113, TALC 533); and 
• Holding gains and losses on loans and placements not elsewhere classified (for financial assets: ETF 5111, TALC 439 and for liabilities: ETF 5113, TALC 539).

Holding gains and losses on finance leases (for financial assets: ETF 5111, TALC 431 and for liabilities: ETF 5113, TALC 531) record the value of holding gains and losses on finance lease assets (ETF 5111, TALC 431) and liabilities (ETF 5113, TALC 531) held by public sector units. Assets under a financial lease are treated as if they were purchased and owned by the user. Any holding gains or losses on the value of the asset under a finance lease accrues to the lessee. Further information on finance leases can be found in paragraph 8.174, and Chapter 13 Part H of this manual.

Holding gains and losses on advances - concessional loans (for financial assets: ETF 5111, TALC 432 and for liabilities: ETF 5113, TALC 532) record the value of holding gains and losses on advances in the form of concessional loan assets (ETF 5111, TALC 432) and liabilities (ETF 5113, TALC 532). In Australian GFS, debt instruments are valued at the current market value. Changes in the observable market value may result in holding gains or losses. Interest on concessional lending is treated as interest revenue or interest expenses and not as holding gains or losses. Further information on concessional loans can be found in paragraphs 8.175 to 8.176, and Chapter 13 Part B of this manual.

Holding gains and losses on advances other than concessional loans (for financial assets: ETF 5111, TALC 433 and for liabilities: ETF 5113, TALC 533) record the value of holding gains and losses on advances other than concessional loan assets (ETF 5111, TALC 433) and liabilities (ETF 5113, TALC 533) held by public sector units. In Australian GFS, debt instruments are valued at the current market value. Changes in the observable market value may result in holding gains or losses. Interest on advances is treated as interest revenue or interest expenses and not as holding gains or losses. Further information on advances other than concessional loans can be found in paragraphs 8.177 to 8.179, and Chapter 13 Part B of this manual.

Holding gains and losses on loans and placements not elsewhere classified (for financial assets: ETF 5111, TALC 439 and for liabilities: ETF 5113, TALC 539) record the value of holding gains and losses on loan and placement assets (ETF 5111, TALC 439) and liabilities (ETF 5113, TALC 539) held by public sector units that are not elsewhere classified. Loans held in a foreign currency are subject to holding gains and losses through movements in the exchange rate. Further information on other loans and placements can be found in paragraphs 8.180 to 8.182 of this manual.

Holding gains and losses on insurance, superannuation and standardised guarantee schemes (for financial assets: ETF 5111, TALC 44 and for liabilities: ETF 5113, TALC 54) record the value of holding gains and losses on assets (ETF 5111, TALC 44) and liabilities (ETF 5113, TALC 54) held in connection to insurance, superannuation and standardised guarantee schemes operated by public sector units. As operators of such schemes, public sector units hold financial assets and liabilities for reserves, entitlements, and provisions connected with these. In GFS, holding gains and losses on insurance, superannuation and standardised guarantee schemes are further classified as:

• Holding gains and losses on non-life insurance technical reserves (for financial assets: ETF 5111, TALC 441 and for liabilities: ETF 5113, TALC 541);
• Holding gains and losses on life insurance and annuities entitlements (for financial assets: ETF 5111, TALC 442 and for liabilities: ETF 5113, TALC 542);
• Holding gains and losses on provisions for defined benefit superannuation (for financial assets: ETF 5111, TALC 443 and for liabilities: ETF 5113, TALC 543);
• Holding gains and losses on claims of superannuation funds on superannuation managers (for financial assets: ETF 5111, TALC 444 and for liabilities: ETF 5113, TALC 544); and 
• Holding gains and losses on provisions for calls under standardised guarantee schemes (for financial assets: ETF 5111, TALC 445 and for liabilities: ETF 5113, TALC 545).

Holding gains and losses on non-life insurance technical reserves (for financial assets: ETF 5111, TALC 441 and for liabilities: ETF 5113, TALC 541) record the value of holding gains and losses on technical reserve assets (ETF 5111, TALC 441) and liabilities (ETF 5113, TALC 541) for non-life insurance schemes operated by public sector units or where a public sector unit is a policy holder. Paragraph 10.35 of the IMF GFSM indicates that reserves for non-life insurance that are denominated in a foreign currency are subject to holding gains and losses through movements in the exchange rate. Further information on non-life insurance technical reserves can be found in paragraphs 8.184 to 8.185 of this manual.

Holding gains and losses on life insurance and annuities entitlements (for financial assets: ETF 5111, TALC 442 and for liabilities: ETF 5113, TALC 542) record the value of holding gains and losses on life insurance and annuities entitlement assets (ETF 5111, TALC 442) liabilities (ETF 5113, TALC 542) held by public sector units. Paragraph 10.35 of the IMF GFSM notes that if an amount for a claim outstanding has been agreed upon and it has been agreed that the claim will be indexed pending payment, then there may be a holding gain or loss recorded for it. Further information on life insurance and annuities entitlements can be found in paragraphs 8.186 to 8.187 of this manual.

Holding gains and losses on provisions for defined benefit superannuation (for financial assets: ETF 5111, TALC 443 and for liabilities: ETF 5113, TALC 543) record the value of holding gains and losses on provisions for defined benefit superannuation in the form of assets (ETF 5111, TALC 443) and liabilities ETF 5113, TALC 543) for defined benefit superannuation schemes that are operated by public sector units. Note that in Australian GFS, only the net liability position for holding gains and losses on provisions for defined benefit superannuation (ETF 5113, TALC 543) is shown because no equivalent asset position exists. The asset position of holding gains and losses on provisions for defined benefit superannuation (ETF 5111, TALC 443) is only maintained for conceptual completeness in alignment with the international standards and will report a zero balance.

Paragraph 10.37 of the IMF GFSM 2014 states that a holding gain is recorded with respect to the liability for a defined benefit superannuation scheme when there is a change in the value of the liability because of a change in the interest rate used to discount the future benefits. The liability should be reviewed periodically and revalued as necessary for changes in market interest rates.

Paragraphs 10.38 and 10.39 of the IMF GFSM 2014 note that because the nature of a defined benefit superannuation scheme is for the level of benefit entitlements to be determined by a formula, there are other factors that may intervene to affect changes in the level of entitlements. These factors include price escalation clauses, changes in the formula used to determine benefits, and demographic assumptions about life span. The factors that change the level of entitlements (i.e., changes in the formula used to determine the benefits and demographic assumptions) should be recorded as other changes in the volume of assets or liabilities; and the adjustments from changes in the price escalation formula should be recorded as holding gains or losses.

Paragraph 10.40 of the IMF GFSM 2014 indicates that the impact of promotions, merit increases, and other real salary increases on defined benefit superannuation entitlements is a special case. Defined benefit superannuation schemes use a formula to set benefits based on the final average salary of employees. Therefore, this implies that any promotion or other real increase in salaries means that the total superannuation entitlements accrued to date are increased to take account of the new salary level. This is a significant benefit for the individual, and has consequences for the employer’s superannuation liabilities. The impacts of promotions are treated as a price change and are recorded as holding gains and losses. If the employer makes a structural change in the way promotions and merit increases are awarded and the change is a result of a unilateral decision of the employer without the mutual agreement of employees, then an adjustment in the form of other changes in the volume of assets or liabilities is needed to account for the change. Further information on provisions for defined benefit superannuation can be found in paragraphs 8.188 to 8.190 of this manual.

Holding gains and losses on provisions for calls under standardised guarantee schemes (for financial assets: ETF 5111, TALC 445 and for liabilities: ETF 5113, TALC 545) record the value of holding gains and losses on assets (ETF 5111, TALC 445) and liabilities (ETF 5113, TALC 545) relating to provisions for calls under standardised guarantee schemes held by public sector units. Holding gains and losses are recorded when there is a change in the value of provisions for calls under standardised guarantee schemes due to a change in market interest rates. Further information on provisions for calls under standardised guarantee schemes can be found in paragraphs 8.192 to 8.193 of this manual.

Holding gains and losses on other financial assets / other liabilities (for financial assets: ETF 5111, TALC 45 and for liabilities: ETF 5113, TALC 55) record the value of holding gains and losses on other financial assets (ETF 5111, TALC 45) and liabilities (ETF 5113, TALC 55) held by public sector units. In GFS, holding gains and losses on other financial assets / liabilities are further classified as:

• Holding gains and losses on provisions for employee entitlements other than superannuation (for financial assets: ETF 5111, TALC 451 and for liabilities: ETF 5113, TALC 551);
• Holding gains and losses on accounts receivable (ETF 5111, TALC 452) and accounts payable (ETF 5113, TALC 552); and
• Holding gains and losses on other financial assets not elsewhere classified (for financial assets: ETF 5111, TALC 459) and other liabilities not elsewhere classified (for liabilities: ETF 5113, TALC 559).

Holding gains and losses on claims of superannuation funds on superannuation managers (for financial assets: ETF 5111, TALC 444 and for liabilities: ETF 5113, TALC 544) record the value of holding gains and losses on assets (ETF 5111, TALC 444) and liabilities (ETF 5113, TALC 544) relating to claims of superannuation funds on superannuation managers. Assets held by a superannuation scheme where the superannuation scheme manager is different from the administrator of the scheme may attract holding gains or losses and need to be recorded in this category. Further information on claims of superannuation fund on superannuation managers can be found in paragraph 8.191 of this manual.

Holding gains and losses on provisions for employee entitlements other than superannuation (for financial assets: ETF 5111, TALC 451 and for liabilities: ETF 5113, TALC 551) record the value of holding gains and losses on provisions for employee entitlements other than superannuation in the form of assets (ETF 5111, TALC 451) and liabilities (ETF 5113, TALC 551) that are held by public sector units. Note that in Australian GFS, only the net liability position for holding gains and losses on provisions for employee entitlements other than superannuation (ETF 5113, TALC 551) is shown as no equivalent asset position exists. The asset position of holding gains and losses on provisions for employee entitlements other than superannuation (ETF 5111, TALC 451) is only maintained for conceptual completeness in alignment with the international standards and will report a zero balance.

In Australian GFS all financial assets and liabilities are recorded at the current market value. Movements in the current market value of provisions for employee entitlements other than superannuation may result in holding gains and losses. Further information on provisions for employee entitlements other than superannuation can be found in paragraphs 8.195 to 8.197 of this manual.

Holding gains and losses on accounts receivable (ETF 5111, TALC 452) and accounts payable (ETF 5113, TALC 552) record the value of holding gains and losses on accounts receivable (ETF 5111, TALC 452) and on accounts payable (ETF 5113, TALC 552) that are held by public sector units during the reporting period. In Australian GFS all financial assets and liabilities are recorded at the current market value. Movements in the observed market value of accounts receivable and accounts payable may result in holding gains and losses. Accounts receivable and accounts payable that are denominated in a foreign currency are subject to holding gains and losses through movements in the exchange rate. Further information on accounts receivable and accounts payable can be found in paragraphs 8.198 to 8.200 of this manual.

Holding gains and losses on other financial assets not elsewhere classified (ETF 5111, TALC 459) and other liabilities not elsewhere classified (ETF 5113, TALC 559) record the value of holding gains and losses on other financial assets (ETF 5111, TALC 459) and liabilities (ETF 5113, TALC 559) held by public sector units. In GFS, all financial assets and liabilities are recorded at the current market value. Movements in the observed market value of other financial assets and liabilities may result in holding gains and losses. Other financial assets and liabilities that are denominated in a foreign currency are subject to holding gains and losses through movements in the exchange rate. Further information on other financial assets (and other liabilities) not elsewhere classified can be found in paragraph 8.201 of this manual.

Holding gains and losses may occur on the value of both produced and non-produced non-financial assets. In GFS, holding gains and losses on non-financial assets are further classified as:

• Holding gains and losses on fixed produced assets (ETF 5112, TALC 1);
• Holding gains and losses on other produced assets (ETF 5112, TALC 2); and
• Holding gains and losses on non-produced assets (ETF 5112, TALC 3).

Holding gains and losses on fixed produced assets (ETF 5112, TALC 1) records the value of holding gains and losses on non-financial produced assets (net of depreciation) (ETF 5112, TALC 1) held by public sector units. Paragraphs 10.13 and 10.14 of the IMF GFSM 2014 note that determining the existence of holding gains on fixed produced assets is complicated by the fact that the value of a fixed asset changes as a result of depreciation as well as market price changes. If market prices are not readily available, market value equivalent prices should be used in determining whether a holding gain exists. When assets of the same kind are still being produced and sold on the market, an existing asset should be valued in the opening or closing balance sheet at the current acquisition price of a newly produced asset minus the accumulated depreciation up to that time.

Paragraph 10.15 of the IMF GFSM 2014 indicates that when new assets of the same type are no longer being produced, the valuation of existing assets may pose difficult conceptual and practical problems for the determination of holding gains or losses. If broadly similar kinds of assets are still being produced, it may be reasonable to assume that the prices of the existing assets would have moved in the same way as those of new assets if they were still being produced. Such an assumption becomes questionable, however, when the characteristics of new assets are much improved by technical progress. Further information on fixed produced assets can be found in paragraphs 8.14 and 8.55 of this manual.

In GFS, holding gains and losses on fixed produced assets are further classified as: 

• Holding gains and losses on buildings and structures (ETF 5112, TALC 11);
• Holding gains and losses on machinery and equipment (ETF 5112, TALC 12);
• Holding gains and losses on cultivated biological resources (ETF 5112, TALC 13);
• Holding gains and losses on intellectual property products (ETF 5112, TALC 14); and 
• Holding gains and losses on weapons systems (ETF 5112, TALC 15).

Holding gains and losses on buildings and structures (ETF 5112, TALC 11) records the value of holding gains and losses on buildings and structures (ETF 5112, TALC 11) (net of depreciation) that are held by public sector units. In GFS, holding gains and losses on buildings and structures are further classified as:

• Holding gains and losses on dwellings (ETF 5112, TALC 111); 
• Holding gains and losses on buildings other than dwellings (ETF 5112, TALC 112);
• Holding gains and losses on land improvements (ETF 5112, TALC 113); and 
• Holding gains and losses on structures not elsewhere classified (ETF 5112, TALC 119).

Holding gains and losses on dwellings (ETF 5112, TALC 111) records the value of holding gains and losses on dwellings (ETF 5112, TALC 111) owned by public sector units. Price changes in the current market value of dwellings are recorded as holding gains and losses in GFS. Further information on dwellings can be found in paragraphs 8.57 to 8.58 of this manual.

Holding gains and losses on buildings other than dwellings (ETF 5112, TALC 112) records the value of holding gains and losses on buildings other than dwellings (ETF 5112, TALC 112) owned by public sector units. Price changes in the current market value of buildings other than dwellings are recorded as holding gains and losses in GFS. Further information on buildings other than dwellings can be found in paragraphs 8.59 to 8.60 of this manual.

Holding gains and losses on land improvements (ETF 5112, TALC 113) records the value of holding gains and losses on improvements to land (ETF 5112, TALC 113) by public sector units. Price changes in the current market value of land improvements are recorded as holding gains and losses in GFS. Further information on land improvements can be found in paragraphs 8.61 to 8.64 of this manual.

Holding gains and losses on structures not elsewhere classified (ETF 5112, TALC 119) records the value of holding gains and losses on other structures not elsewhere classified (ETF 5112, TALC 119) owned by public sector units. Price changes in the current market value of other structures not elsewhere classified are recorded as holding gains and losses in GFS. Further information on other structures not elsewhere classified can be found in paragraphs 8.65 to 8.66 of this manual.

Holding gains and losses on machinery and equipment (ETF 5112, TALC 12) records the value of holding gains and losses on machinery and equipment (ETF 5112, TALC 12) (net of depreciation) owned by public sector units. In GFS, holding gains and losses on machinery and equipment are further classified as:

• Holding gains and losses on transport equipment (ETF 5112, TALC 121);
• Holding gains and losses on information, computer, and telecommunication equipment (ETF 5112, TALC 122); and
• Holding gains and losses on machinery and equipment not elsewhere classified (ETF 5112, TALC 129).

Holding gains and losses on transport equipment (ETF 5112, TALC 121) records the value of holding gains and losses on transport equipment (ETF 5112, TALC 121) owned by public sector units. Price changes in the current market value of transport equipment are recorded as holding gains and losses in GFS. Further information on transport equipment can be found in paragraph 8.68 of this manual.

Holding gains and losses on information, computer, and telecommunication equipment (ETF 5112, TALC 122) records the value of holding gains and losses on information, computer, and telecommunication equipment (ETF 5112, TALC 122) owned by public sector units. Price changes in the current market value of information, computer, and telecommunication equipment are recorded as holding gains and losses in GFS. Further information on information, computer, and telecommunication equipment can be found in paragraphs 8.69 to 8.70 of this manual.

Holding gains and losses machinery and equipment not elsewhere classified (ETF 5112, TALC 129) records the value of holding gains and losses on other machinery and equipment not elsewhere classified (ETF 5112, TALC 129) owned by public sector units. Price changes in the current market value of other machinery and equipment not elsewhere classified are recorded as holding gains and losses in GFS. Further information on other machinery and equipment not elsewhere classified can be found in paragraphs 8.71 to 8.73 of this manual.

Holding gains and losses on cultivated biological resources (ETF 5112, TALC 13) records the value of holding gains and losses on cultivated biological resources (ETF 5112, TALC 13) (net of depreciation) owned by public sector units. In GFS, holding gains and losses on cultivated biological resources are further classified as:

• Holding gains and losses on animal resources yielding repeat products (ETF 5112, TALC 131); and
• Holding gains and losses on tree, crop, and plant resources yielding repeat products (ETF 5112, TALC 132).

Holding gains and losses on animal resources yielding repeat products (ETF 5112, TALC 131) records the value of holding gains and losses on animal resources yielding repeat products (ETF 5112, TALC 131) owned by public sector units. Price changes in the current market value of animal resources yielding repeat products are recorded as holding gains and losses in GFS. Further information on animal resources yielding repeat products can be found in paragraphs 8.75 to 8.77 of this manual.

Holding gains and losses on tree, crop, and plant resources yielding repeat products (ETF 5112, TALC 132) records the value of holding gains and losses on tree, crop, and plant resources yielding repeat products (ETF 5112, TALC 132) owned by public sector units. Price changes in the current market value of tree, crop, and plant resources yielding repeat products are recorded as holding gains and losses in GFS. Further information on tree, crop, and plant resources yielding repeat products can be found in paragraphs 8.78 to 8.81 of this manual.

Holding gains and losses on intellectual property products (ETF 5112, TALC 14) records the value of holding gains and losses on intellectual property products (ETF 5112, TALC 14) (net of depreciation) owned by public sector units. In GFS, holding gains and losses on intellectual property products are further classified as:

• Holding gains and losses on research and development (ETF 5112, TALC 141);
• Holding gains and losses on mineral exploration and evaluation (ETF 5112, TALC 142);
• Holding gains and losses on computer software (ETF 5112, TALC 143); 
• Holding gains and losses on databases (ETF 5112, TALC 144);
• Holding gains and losses on entertainment, literary, and artistic originals (ETF 5112, TALC 145); and
• Holding gains and losses on intellectual property products not elsewhere classified (ETF 5112, TALC 149).

Holding gains and losses on research and development (ETF 5112, TALC 141) records the value of holding gains and losses on research and development (ETF 5112, TALC 141) undertaken by public sector units. Price changes in the current market value of the benefits associated with research and development are recorded as holding gains and losses in GFS. Further information on research and development can be found in paragraphs 8.83 to 8.85 of this manual.

Holding gains and losses on mineral exploration and evaluation (ETF 5112, TALC 142) records the value of holding gains and losses on mineral exploration and evaluation (ETF 5112, TALC 142) undertaken by public sector units. Price changes in the current market value of the benefits associated with mineral exploration and evaluation are recorded as holding gains and losses in GFS. Further information on mineral exploration and evaluation can be found in paragraphs 8.86 to 8.87 of this manual.

Holding gains and losses on computer software (ETF 5112, TALC 143) records the value of holding gains and losses on computer software (ETF 5112, TALC 143) owned by public sector units. Price changes in the current market value of the computer software are recorded as holding gains and losses in GFS. Further information on computer software can be found in paragraphs 8.88 to 8.89 of this manual.

Holding gains and losses on databases (ETF 5112, TALC 144) records the value of holding gains and losses on databases (ETF 5112, TALC 144) owned by public sector units. Price changes in the current market value of databases are recorded as holding gains and losses in GFS. Further information on databases can be found in paragraph 8.90 of this manual.

Holding gains and losses on entertainment, literary, and artistic originals (ETF 5112, TALC 145) records the value of holding gains and losses on entertainment, literary, and artistic originals (ETF 5112, TALC 145) owned by public sector units. Price changes in the current market value of entertainment, literary, and artistic originals are recorded as holding gains and losses in GFS. Further information on entertainment, literary, and artistic originals can be found in paragraph 8.91 of this manual.

Holding gains and losses on intellectual property products not elsewhere classified (ETF 5112, TALC 149) records the value of holding gains and losses on other intellectual property products not elsewhere classified (ETF 5112, TALC 149) owned by public sector units. Price changes in the current market value of other intellectual property products not elsewhere classified are recorded as holding gains and losses in GFS. Further information on intellectual property products not elsewhere classified can be found in paragraphs 8.92 to 8.93 of this manual.

Holding gains and losses on weapons systems (also known as defence weapons platforms) (ETF 5112, TALC 151) records the value of holding gains and losses on weapons systems (ETF 5112, TALC 151) (net of depreciation) owned by public sector units. Price changes in the current market value of weapons systems are recorded as holding gains and losses in GFS. Further information on weapons systems (also known as defence weapons platforms) can be found in paragraphs 8.94 to 8.95 of this manual.

Holding gains and losses on other produced assets (ETF 5112, TALC 2) records the value of holding gains and losses on other non-financial produced assets (ETF 5112, TALC 2) (net of depreciation) owned by public sector units. In GFS, holding gains and losses on other produced assets are further classified as:

• Holding gains and losses on inventories (ETF 5112, TALC 21);
• Holding gains and losses on valuables (ETF 5112, TALC 22); and
• Holding gains and losses on other produced assets (ETF 5112, TALC 23).

Holding gains and losses on inventories (ETF 5112, TALC 21) records the value of holding gains and losses on inventories (ETF 5112, TALC 21) that are owned by public sector units. Paragraphs 10.16 and 10.17 of the IMF GFSM 2014 indicate that holding gains on inventories exclude both exceptional and recurrent losses on inventories, because withdrawals from inventories include an allowance for recurrent losses that are part of the normal operations of a production process. Certain types of inventories (e.g., stationery) have stable prices and are held over reasonably short periods of time, in which case the holding gains or losses are normally minimal. In other cases such as strategic stocks, other methods have to be applied. It may be necessary to try to deduce the value of changes in inventories from the value and quantities of the opening and closing inventories using methods that partition the difference between the values of the opening and closing stock positions of assets into transactions and holding gains. In general, if assumptions are made, they should cover as short a period as possible.

In GFS, holding gains and losses on inventories are further classified as:

• Holding gains and losses on inventories - materials and supplies (ETF 5112, TALC 211);
• Holding gains and losses on inventories - work in progress (ETF 5112, TALC 212);
• Holding gains and losses on inventories - finished goods (ETF 5112, TALC 213);
• Holding gains and losses on inventories - goods for resale (ETF 5112, TALC 214); and 
• Holding gains and losses on military inventories (ETF 5112, TALC 215).

Holding gains and losses on inventories - materials and supplies (ETF 5112, TALC 211) records the value of holding gains and losses on inventories of materials and supplies (ETF 5112, TALC 211) owned by public sector units. Price changes in the current market value of inventories of materials and supplies are recorded as holding gains and losses in GFS. Further information on inventories - materials and supplies can be found in paragraphs 8.98 to 8.100 of this manual.

Holding gains and losses on inventories - work in progress (ETF 5112, TALC 212) records the value of holding gains and losses on inventories of work in progress (ETF 5112, TALC 212) owned by public sector units. Price changes in the current market value of inventories of work in progress are recorded as holding gains and losses in GFS. Further information on inventories - work in progress can be found in paragraphs 8.101 to 8.104 of this manual.

Holding gains and losses on inventories - finished goods (ETF 5112, TALC 213) records the value of holding gains and losses on inventories of finished goods (ETF 5112, TALC 213) owned by public sector units. Price changes in the current market value of inventories of finished goods are recorded as holding gains and losses in GFS. Further information on inventories - finished goods can be found in paragraph 8.105 of this manual.Holding gains and losses on inventories - finished goods (ETF 5112, TALC 213) records the value of holding gains and losses on inventories of finished goods (ETF 5112, TALC 213) owned by public sector units. Price changes in the current market value of inventories of finished goods are recorded as holding gains and losses in GFS. Further information on inventories - finished goods can be found in paragraph 8.105 of this manual.

Holding gains and losses on inventories - goods for resale (ETF 5112, TALC 214) records the value of holding gains and losses on inventories of goods for resale (ETF 5112, TALC 214) owned by public sector units. Price changes in the current market value of inventories of goods for resale are recorded as holding gains and losses in GFS. Further information on inventories - goods for resale can be found in paragraphs 8.106 to 8.109 of this manual.

Holding gains and losses on inventories - military inventories (ETF 5112, TALC 215) records the value of holding gains and losses on military inventories owned by public sector units. Price changes in the current market value of military inventories are recorded as holding gains and losses in GFS. Further information on military inventories can be found in paragraphs 8.110 to 8.112 of this manual.

Holding gains and losses on valuables (ETF 5112, TALC 22 and TALC 221) records the value of holding gains and losses on valuables (ETF 5112, TALC 221) (net of depreciation) owned by public sector units. Price changes in the current market value of valuables are recorded as holding gains and losses in GFS. Further information on valuables can be found in paragraphs 8.113 to 8.115 of this manual.

Holding gains and losses on other produced assets (ETF 5112, TALC 23 and TALC 239) records the value of holding gains and losses on other produced assets not elsewhere classified. Other produced assets consist of assets other than fixed produced assets that cannot be classified to inventories (TALC 21) or valuables (TALC 22).

Holding gains and losses on non-produced assets (ETF 5112, TALC 3) records the value of holding gains and losses on non-financial non-produced assets (ETF 5112, TALC 3) owned by public sector units. In GFS, non-financial non-produced assets are further classified as:

• Holding gains and losses on tangible non-produced assets (ETF 5112, TALC 31);
• Holding gains and losses on intangible non-produced assets (ETF 5112, TALC 32); and 
• Holding gains and losses on other non-produced assets (ETF 5112, TALC 33).

Holding gains and losses on tangible non-produced assets (ETF 5112, TALC 31) records the value of holding gains and losses on non-financial non-produced assets owned by government. In GFS, holding gains and losses on non-financial non-produced assets are further classified as:

• Holding gains and losses on land (ETF 5112, TALC 311);
• Holding gains and losses on mineral and energy resources (ETF 5112, TALC 312);
• Holding gains and losses on non-cultivated biological resources (ETF 5112, TALC 313);
• Holding gains and losses on water resources (ETF 5112, TALC 314); 
• Holding gains and losses on radio spectra (ETF 5112, TALC 315); and 
• Holding gains and losses on natural resources not elsewhere classified (ETF 5112, TALC 316).

Holding gains and losses on land (ETF 5112, TALC 311) records the value of holding gains and losses on land (ETF 5112, TALC 311) owned by public sector units. Price changes in the current market value of land are recorded as holding gains and losses in GFS. Note that holding gains and losses on land exclude the value of holding gains and losses on improvements to land. These are instead recorded as holding gains and losses on land improvements (ETF 5112, TALC 113). Further information on land can be found in paragraphs 8.119 to 8.122 of this manual.

Holding gains and losses on mineral and energy resources (ETF 5112, TALC 312) records the value of holding gains and losses on mineral and energy resources (ETF 5112, TALC 312) owned by public sector units. Price changes in the current market value of mineral and energy resources are recorded as holding gains and losses in GFS. Further information on mineral and energy resources can be found in paragraphs 8.123 to 8.126 of this manual.

Holding gains and losses on non-cultivated biological resources (ETF 5112, TALC 313) records the value of holding gains and losses on non-cultivated biological resources (ETF 5112, TALC 313) owned by public sector units. Price changes in the current market value of non-cultivated biological resources are recorded as holding gains and losses in GFS. Further information on non-cultivated biological resources can be found in paragraphs 8.127 to 8.129 of this manual.

Holding gains and losses on water resources (ETF 5112, TALC 314) records the value of holding gains and losses on water resources (ETF 5112, TALC 314) owned by public sector units. Price changes in the current market value of water resources are recorded as holding gains and losses in GFS. Further information on water resources can be found in paragraphs 8.130 to 8.131 of this manual.

Holding gains and losses on radio spectra (ETF 5112, TALC 315) records the value of holding gains and losses on radio spectra (ETF 5112, TALC 315) owned by public sector units. Price changes in the current market value of radio spectra are recorded as holding gains and losses in GFS. Further information on radio spectra can be found in paragraph 8.132 of this manual.

Holding gains and losses on tangible assets not elsewhere classified (ETF 5112, TALC 319) records the value of holding gains and losses on other tangible assets owned by public sector units that are not elsewhere classified (ETF 5112, TALC 319). Price changes in the current market value of tangible assets not elsewhere classified are recorded as holding gains and losses in GFS. Further information on tangible assets not elsewhere classified can be found in paragraph 8.133 of this manual.

Holding gains and losses on intangible non-produced assets (ETF 5112, TALC 32) records the value of holding gains and losses on intangible non-produced assets (ETF 5112, TALC 32) owned by public sector units. In GFS, holding gains and losses on intangible non-produced assets are further classified as:

• Holding gains and losses on marketable operating leases (ETF 5112, TALC 321);
• Holding gains and losses on permits to use natural resources (ETF 5112, TALC 322); 
• Holding gains and losses on permits to undertake specific activities (ETF 5112, TALC 323); 
• Holding gains and losses on entitlements to future goods and services on an exclusive basis (ETF 5112, TALC 324); 
• Holding gains and losses on goodwill and marketing assets (ETF 5112, TALC 325); and 
• Holding gains and losses on intangible non-produced assets not elsewhere classified (ETF 5112, TALC 329).

Holding gains and losses on marketable operating leases (ETF 5112, TALC 321) records the value of holding gains and losses on marketable operating leases (ETF 5112, TALC 321) owned by public sector units. Price changes in the current market value of marketable operating leases are recorded as holding gains and losses in GFS. Further information on marketable operating leases can be found in paragraph 8.135 of this manual.

Holding gains and losses on permits to use natural resources (ETF 5112, TALC 322) records the value of holding gains and losses on permits to use natural resources (ETF 5112, TALC 322) owned by public sector units. Price changes in the current market value of permits to use natural resources are recorded as holding gains and losses in GFS. Further information on permits to use natural resources can be found in paragraph 8.136 and Chapter 13 Part H of this manual.

Holding gains and losses on permits to undertake specific activities (ETF 5112, TALC 323) records the value of holding gains and losses on permits to undertake specific activities (ETF 5112, TALC 323) owned by public sector units. Price changes in the current market value of permits to undertake specific activities are recorded as holding gains and losses in GFS. Further information on permits to undertake specific activities can be found in paragraph 8.137 to 8.138 and Chapter 13 Part H of this manual.

Holding gains and losses on entitlements to future goods and services on an exclusive basis (ETF 5112, TALC 324) records the value of holding gains and losses on entitlements to future goods and services on an exclusive basis (ETF 5112, TALC 324) owned by public sector units. Price changes in the current market value of entitlements to future goods and services on an exclusive basis are recorded as holding gains and losses in GFS. Further information on entitlements to future goods and services on an exclusive basis can be found in paragraph 8.139 of this manual.

Holding gains and losses on goodwill and marketing assets (ETF 5112, TALC 325) records the value of holding gains and losses on goodwill and marketing assets (ETF 5112, TALC 325) owned by public sector units. Price changes in the current market value of goodwill and marketing assets are recorded as holding gains and losses in GFS. Further information on goodwill and marketing assets can be found in paragraphs 8.140 to 8.142 of this manual.

Holding gains and losses on intangible non-produced assets not elsewhere classified (ETF 5112, TALC 329) records the value of holding gains and losses on other intangible non-produced assets owned by public sector units that are not elsewhere classified (ETF 5112, TALC 329). Price changes in the current market value of intangible non-produced assets not elsewhere classified are recorded as holding gains and losses in GFS. Further information on intangible non-produced assets not elsewhere classified can be found in paragraphs 8.143 to 8.144 of this manual.

Holding gains and losses on other non-financial non-produced assets (ETF 5112, TALC 33 and TALC 339) records the value of holding gains and losses on other non-financial non-produced assets (ETF 5112, TALC 33 and TALC 339) owned by public sector units. Price changes in the current market value of other nonfinancial non-produced assets not elsewhere classified are recorded as holding gains and losses in GFS. Further information on other non-financial non-produced assets not elsewhere classified can be found in paragraph 8.145 of this manual.

Change in net worth due to holding gains and losses (ETF 5121) records the change in net worth due to holding gains and losses during the reporting period. This is an analytical aggregate in GFS. Paragraph 10.2 of the IMF GFSM 2014 defines the change in net worth due to holding gains and losses as the sum of all positive or negative holding gains and losses on assets and liabilities. Further information on the change in net worth can be found in Chapter 11 Part F of this manual.

The following paragraphs discus the classification of other changes in volume in the context of financial assets and liabilities, non-financial assets, and the change in net worth due to other changes in volume. The letters and numbers in brackets after each classification category signify GFS classification codes related to each category.

The classification of other changes in the volume of financial assets and liabilities (for financial assets: ETF 5211, TALC 4 and for liabilities: ETF 5213, TALC 5) record the value of other changes in the volume of financial assets (ETF 5211, TALC) and liabilities (ETF 5213, TALC 5) during the reporting period. In this chapter, other changes in the volume of financial assets and liabilities are discussed together to emphasise the counter party relationship between financial assets and liabilities. In GFS, all financial assets except for monetary gold in the form of gold bullion held as reserve assets have counterpart liabilities. In GFS, other changes in the volume of financial assets and liabilities are further classified as:

• Other changes in the volume of currency and deposits (ETF 5211, TALC 41 and ETF 5213, TALC 51);
• Other changes in the volume of debt securities and related assets (ETF 5211, TALC 42) and liabilities (ETF 5213, TALC 52);
• Other changes in the volume of loans and placements (ETF 5211, TALC 43 and ETF 5213, TALC 53);
• Other changes in the volume of insurance, superannuation and standardised guarantee schemes (ETF 5211, TALC 44 and ETF 5213, TALC 54); and
• Other changes in the volume of other financial assets and liabilities (ETF 5211, TALC 45 and ETF 5213, TALC 55).

Other changes in the volume of currency and deposits (for financial assets: ETF 5211, TALC 41 and for liabilities: ETF 5213, TALC 5) records the value of other changes in the volume of currency and deposits in the form of financial assets (ETF 5211, TALC 41) and liabilities (ETF 5213, TALC 51) held by public sector units. In GFS, other changes in the volume of currency and deposits are further classified as:

• Other changes in the volume of cash and deposits (for financial assets: ETF 5211, TALC 411 and for liabilities: ETF 5213, TALC 511);
• Other changes in the volume of Special Drawing Rights (SDRs) (for financial assets: ETF 5211, TALC 412 and for liabilities: ETF 5213, TALC 512); 
• Other changes in the volume of monetary gold (bullion) (ETF 5211, TALC 413 asset only); and
• Other changes in the volume of monetary gold (allocated and unallocated) (for financial assets: ETF 5211, TALC 414 and for liabilities: ETF 5213, TALC 511).

Other changes in the volume of cash and deposits (for financial assets: ETF 5211, TALC 411 and for liabilities: ETF 5213, TALC 511) records the value of other changes in the volume of cash and deposit assets (ETF 5211, TALC 411) and liabilities (ETF 5213, TALC 511) held by public sector units. Appearances or disappearances of cash and deposits on (or from) the balance sheet may occur through events such as the uncompensated seizure of assets by government units; the reclassification of government units in or out of the public sector; or the merging or splitting of public sector units due to machinery of government or other changes.

Paragraph 10.78 of the IMF GFSM 2014 states that when two units are merged, all financial claims and liabilities that existed between them are eliminated. Also, when a unit splits into two or more units, new financial claims and liabilities may appear between the new units. This may lead to change in the volume of cash and deposits on the balance sheet, and must be recorded through an other change in volume entry in the accounts. Further, physical stocks of cash may suffer losses through damage in fires or floods, etc., and must be recorded as other changes in volume. Further information on cash and deposits can be found in paragraphs 8.150 to 8.154 of this manual.

Other changes in the volume of Special Drawing Rights (SDRs) (for financial assets: ETF 5111, TALC 412 and for liabilities: ETF 5113, TALC 512) records the value of other changes in the volume of Special Drawing Rights (SDRs) assets (ETF 5211, TALC 411) and liabilities (ETF 5213, TALC 511) held by public sector units. Appearances or disappearances of SDRs on (or from) the balance sheet (through uncompensated seizures of SDRs by the IMF for example) are recorded as other changes in the volume of currency and deposits. Further information on SDRs can be found in paragraph 8.155 of this manual.

Other changes in the volume of monetary gold (bullion) (ETF 5211, TALC 413) (asset only) records the value of other changes in the volume of gold in the form of bullion (ETF 5211, TALC 413) held as reserve assets by public sector units. Paragraph 10.84 of the IMF GFSM 2014 notes that at the time monetary gold in the form of gold bullion is acquired by a monetary authority, it is first classified as inventories (ETF 5212, an appropriate category within TALC 21) or as valuables (ETF 5212, TALC 221) if primarily held as a store of value. When gold held in the form of gold bullion becomes a reserve asset, it enters the financial assets in the balance sheet as a reclassification via other changes in the volume of assets to monetary gold (bullion) (ETF 5211, TALC 413). Further information on monetary gold (bullion) can be found in paragraphs 8.156 to 8.157 of this manual.

Other changes in the volume of monetary gold (allocated and unallocated) (for financial assets: ETF 5211, TALC 414 and for liabilities: ETF 5213, TALC 511) records the other changes in the volume of gold in the form of allocated and unallocated gold accounts (ETF 3111, TALC 414) held as reserve assets by public sector units. Paragraph 10.84 of the IMF GFSM 2014 notes that at the time gold in the form of allocated accounts is acquired by a monetary authority, it is first classified as inventories (ETF 5212, an appropriate category within TALC 21) or as valuables (ETF 5212, TALC 221) if primarily held as a store of value. When gold held in the form of allocated accounts becomes a reserve asset, it enters the financial assets in the balance sheet as a reclassification via other changes in the volume of assets to monetary gold (allocated and unallocated) (for financial assets: ETF 5211, TALC 414 and for liabilities: ETF 5213, TALC 511). When gold in the form of unallocated accounts is acquired by a monetary authority, it is first classified as currency and deposits (ETF 5211, TALC 411). When unallocated gold accounts become reserve assets, they are reclassified to monetary gold (allocated and unallocated) (ETF 5211, TALC 414), also through an other changes in the volume of assets entry in the accounts. Further information on monetary gold (allocated and unallocated) can be found in paragraph 8.158 of this manual.

Other changes in the volume of debt securities and related assets (for financial assets: ETF 5211, TALC 42 and for liabilities: ETF 5213, TALC 52) records the value of other changes in the volume of debt securities and related financial assets (ETF 5211, TALC 42) and liabilities (ETF 5213, TALC 52) held by public sector units. In GFS, other changes in the volume of debt securities and related assets and liabilities are further classified as:

• Other changes in the volume of debt securities (for financial assets: ETF 5211, TALC 421 and for liabilities: ETF 5213, TALC 521);
• Other changes in the volume of financial derivatives (for financial assets: ETF 5211, TALC 422 and for liabilities: ETF 5213, TALC 522);
• Other changes in the volume of employee stock options (for financial assets: ETF 5211, TALC 423 and for liabilities: ETF 5213, TALC 523); 
• Other changes in the volume of equity including contributed capital (for financial assets: ETF 5211, TALC 424 and for liabilities: ETF 5213, TALC 524); and
• Other changes in the volume of investment fund shares or units (for financial assets: ETF 5211, TALC 425 and for liabilities: ETF 5213, TALC 525).

Other changes in the volume of debt securities (for financial assets: ETF 5211, TALC 421 and for liabilities: ETF 5213, TALC 521) records the value of other changes in the volume of debt security assets (ETF 5211, TALC 421) and liabilities (ETF 5213, TALC 521) held by public sector units. Paragraph 10.84 of the IMF GFSM 2014 indicates that if arrears arise and the associated contract provides for a change in the characteristics of a financial instrument when it goes into arrears, this change should be recorded as a reclassification as other changes in the volume of debt securities (for financial assets: ETF 5211, TALC 421) and (for liabilities: ETF 5213, TALC 521).

A reclassification from loans and placements (for financial assets: ETF 5211, TALC 43 and for liabilities: ETF 5213, TALC 53) to debt securities (for financial assets: ETF 5211, TALC 421 and for liabilities: ETF 5213, TALC 521) through an other change in volume account entry also applies when loans become tradeable. Paragraph 7.149 of the IMF GFSM 2014 states that for such reclassification to take place, there needs to be evidence of secondary market trading, including the existence of market makers and frequent quotations of the instrument, such as provided by bid-offer spreads. An example is a syndicated loan, which is provided by a group of lenders and is structured, arranged, and administered by one or several commercial or investment banks. If parts of a syndicated loan become traded in secondary markets, the loan may meet the criteria to be reclassified as a debt security. Further information on debt securities can be found in paragraphs 8.160 to 8.161, and Chapter 13 Part B of this manual.

Other changes in the volume of financial derivatives (for financial assets: ETF 5211, TALC 422 and for liabilities: ETF 5213, TALC 522) records the value of other changes in the volume of financial derivative assets (ETF 5211, TALC 422) and liabilities (ETF 5213, TALC 522) held by public sector units. Paragraph 10.84 of the IMF GFSM 2014 notes that if the amount payable under a financial derivative remains due for payment after it matures, the amount due no longer represents a financial derivative because the value is fixed. It is therefore reclassified as an accounts receivable (ETF 5221, TALC 452) or as an accounts payable (ETF 5213, TALC 552). In GFS, the creation and exhaustion of financial derivatives are treated as transactions in financial assets (ETF 3111, TALC 422, SDC) and liabilities (ETF 3211, TALC 522, SDC) and not as other changes in the volume of assets. Further information on financial derivatives can be found in paragraphs 8.162 to 8.164, and Chapter 13 Part B of this manual.

Other changes in the volume of employee stock options (for financial assets: ETF 5211, TALC 423 and for liabilities: ETF 5213, TALC 523) records the value of other changes in the volume of employee stock option assets (ETF 5211, TALC 423) and liabilities (ETF 5213, TALC 523) held by public sector units. Appearances or disappearances of employee stock options on (or from) the balance sheet may occur through events such as the reclassification of government units in or out of the public sector, and are recorded through an other change in volume entry in the accounts. Further information on employee stock options can be found in paragraphs 8.165 to 8.168 of this manual.

Other changes in the volume of equity including contributed capital (for financial assets: ETF 5211, TALC 424 and for liabilities: ETF 5213, TALC 524) records the value of other changes in the volume of equity including contributed capital in the form of financial assets (ETF 5211, TALC 424) and liabilities (ETF 5213, TALC 524) held by public sector. Paragraph 10.84 of the IMF GFSM 2014 states that bonds which are convertible into equity are reclassified as equity including contributed capital (for financial assets: ETF 5211, TALC 424; and for liabilities: ETF 5213, TALC 524) through an other change in volume entry in the accounts when the option is exercised.

Paragraph 10.84 of the IMF GFSM 2014 further notes that in cases where government units acquire equity in a public corporation or quasi-corporation as a result of a legislative or an administrative change creating the corporation or quasi-corporation, this event will amount to a reclassification of the corporation’s existing assets and liabilities that results in an addition of equity including contributed capital (ETF 5211, TALC 424) to the balance sheets of the acquiring government unit through an other change in volume entry in the accounts. Further information on equity including contributed capital can be found in paragraphs 8.169 to 8.170 of this manual.

Other changes in the volume of investment fund shares or units (for financial assets: ETF 5211, TALC 425 and for liabilities: ETF 5213, TALC 525) records the value of other changes in the volume of investment fund shares or units in the form of assets (ETF 5211, TALC 425) and liabilities (ETF 5213, TALC 525) held by public sector units. Appearances or disappearances of investment fund shares or units on (or from) the balance sheet may occur through events such as the reclassification of government units in or out of the public sector and the merging or splitting of public sector units through machinery of government or other change. These changes must be recorded through an other change in the volume entry in the accounts. Further information on investment fund shares or units can be found in paragraphs 8.171 to 8.172, and Chapter 13 Part B of this manual.

Other changes in the volume of loans and placements (for financial assets: ETF 5211, TALC 43 and for liabilities: ETF 5213, TALC 53) records the value of other changes in the volume of loan and placement assets (ETF 5211, TALC 43) and liabilities (ETF 5213, TALC 53) that are held by public sector units. In GFS, other changes in the volume of loans and placements are further classified as:

• Other changes in the volume of finance leases (for financial assets: ETF 5211, TALC 431 and for liabilities: ETF 5213, TALC 531); 
• Other changes in the volume of advances - concessional loans (for financial assets: ETF 5211, TALC 432 and for liabilities: ETF 5213, TALC 532); 
• Other changes in the volume of advances other than concessional loans (for financial assets: ETF 5211, TALC 433 and for liabilities: ETF 5213, TALC 533); and 
• Other changes in the volume of loans and placements not elsewhere classified (for financial assets: ETF 5211, TALC 439 and for liabilities: ETF 5213, TALC 539).

Other changes in the volume of finance leases (for financial assets: ETF 5211, TALC 431 and for liabilities: ETF 5213, TALC 531) records the value of other changes in the volume of finance lease assets (ETF 5211, TALC 431) and liabilities (ETF 5213, TALC 531) held by public sector units. The volume of finance lease assets and liabilities may change in the balance sheet depending on the terms of the financial lease arrangement. In GFS, this change is recorded as other changes in the volume of finance leases (for financial assets: ETF 5211, TALC 431) and (for liabilities: ETF 5213, TALC 531). Further information on finance leases can be found in paragraph 8.174, and Chapter 13 Part H of this manual.

Other changes in the volume of advances - concessional loans (for financial assets: ETF 5211, TALC 432 and for liabilities: ETF 5213, TALC 532) records the value of other changes in the volume of advances in the form of concessional loan assets (ETF 5211, TALC 432) and liabilities (ETF 5213, TALC 532). Paragraph 10.57 of the IMF GFSM 2014 states that loans may appear on, or disappear from, the balance sheet for a variety of reasons. For example, concessional loans may disappear from the balance sheet because a creditor may determine that a financial claim can no longer be collected due to the debtor’s bankruptcy or other factors. In this case, the creditor writes off the debt and removes the claim from its balance sheet by means of an entry in other changes in the volume of assets in the accounts. In this case, the write off of advances in the form of concessional loans will be recorded as other changes in the volume of advances - concessional loans (for financial assets: ETF 5211, TALC 432) and (for liabilities: ETF 5213, TALC 532). Further information on advances on concessional loans can be found in paragraphs 8.175 to 8.176, and Chapter 13 Part B of this manual.

Other changes in the volume of advances other than concessional loans (for financial assets: ETF 5111, TALC 433 and for liabilities: ETF 5113, TALC 533) records the value of other changes in the volume of advances other than concessional loan in the form of assets (ETF 5211, TALC 433) and liabilities (ETF 5213, TALC 533). Paragraph 10.57 of the IMF GFSM 2014 states that loans may appear on, or disappear from, the balance sheet for a variety of reasons. If a creditor determines that a financial claim can no longer be collected because of the debtor’s bankruptcy or other factors, then the creditor writes off the debt from their balance sheet by means of an entry in other changes in the volume of assets. In this case, the write off of advances (other than concessional loans) will be recorded as other changes in the volume of advances other than concessional loans (for financial assets: ETF 5211, TALC 433 and for liabilities: ETF 5213, TALC 533).

Paragraph 10.57 of the IMF GFSM 2014 further notes that debt is usually written off as uncollectible because of the bankruptcy or liquidation of the debtor; however, it may sometimes be written off for other reasons, such as a court order. The write-off may be full or partial; partial write-offs may arise, (for example) under a court order, or if the liquidation of the debtor’s assets allows some of the debt to be settled with the balance after settlement being the value written off. Recognition that the debt is uncollectible should be distinguished from internal accounting provisions of the creditor for the possibility of default. Although such provisions may be useful for analysis, they do not mean that the debt should no longer be recognised as existing, and should therefore not be considered as written off. In contrast, a reduction in a financial claim by mutual agreement between the creditor and debtor is a transaction rather than an other change in the volume of assets. Further information on advances other than concessional loans can be found in paragraphs 8.177 to 8.179, and Chapter 13 Part B of this manual.

Other changes in the volume of loans and placements not elsewhere classified (for financial assets: ETF 5111, TALC 439 and for liabilities: ETF 5113, TALC 539) records the value of other changes in the volume of other loans and placements in the form of assets (ETF 5211, TALC 439) and liabilities (ETF 5213, TALC 539) that are not elsewhere classified. Paragraph 10.57 of the IMF GFSM 2014 states that loans may appear on, or disappear from, the balance sheet for a variety of reasons. A creditor may determine that a financial claim can no longer be collected because of the debtor’s bankruptcy or other factors. In this case the creditor writes off the debt and removes the claim from its balance sheet by means of an entry in other changes in the volume of assets in the accounts. In this case, the write off of loans and placements will be recorded as other changes in the volume of loans and placements not elsewhere classified (for financial assets: ETF 5111, TALC 439 and for liabilities: ETF 5113, TALC 539). Further information on loans and placements can be found in paragraphs 8.180 to 8.182 of this manual.

Other changes in the volume of insurance, superannuation and standardised guarantee schemes (for financial assets: ETF 5211, TALC 44 and for liabilities: ETF 5213, TALC 54) records the value of other changes in the volume of assets (ETF 5211, TALC 44) and liabilities (ETF 5213, TALC 54) held in connection to insurance, superannuation and standardised guarantee schemes operated or participated in by public sector units or where a public sector unit is a policy holder. In GFS, other changes in the volume of insurance, superannuation and standardised guarantee schemes are further classified as:

• Other changes in the volume of non-life insurance technical reserves (for financial assets: ETF 5211, TALC 441 and for liabilities: ETF 5213, TALC 541); 
• Other changes in the volume of life insurance and annuities entitlements (for financial assets: ETF 5211, TALC 442 and for liabilities: ETF 5213, TALC 542); 
• Other changes in the volume of provisions for defined benefit superannuation (for financial assets: ETF 5211, TALC 443 and for liabilities: ETF 5213, TALC 543); 
• Other changes in the volume of claims of superannuation funds on superannuation managers (for financial assets: ETF 5211, TALC 444 and for liabilities: ETF 5213, TALC 544); and
• Other changes in the volume of provisions for calls under standardised guarantee schemes (for financial assets: ETF 5211, TALC 445 and for liabilities: ETF 5213, TALC 545).

Other changes in the volume of non-life insurance technical reserves (for financial assets: ETF 5211, TALC 441 and for liabilities: ETF 5213, TALC 541) records the value of other changes in the volume of technical reserve assets (ETF 5211, TALC 441) and liabilities (ETF 5213, TALC 541) for non-life insurance schemes operated by public sector units. Increases or decreases in the volume of non-life insurance technical reserves may take place to meet the requirements of the non-life insurance scheme if there are increases in the volume of eligible non-life insurance policyholders, or reductions in the number of eligible non-life insurance holders due to the closure of new applications to the associated non-life insurance scheme. Further information on non-life insurance technical reserves can be found in paragraphs 8.184 to 8.185 of this manual.

Other changes in the volume of life insurance and annuities entitlements (for financial assets: ETF 5211, TALC 442 and for liabilities: ETF 5213, TALC 542) records the value of other changes in the volume of life insurance and annuities entitlement assets (ETF 5211, TALC 442) liabilities (ETF 5213, TALC 542) held by public sector units. Paragraph 10.71 of the IMF GFSM notes that for an annuity, the relationship between the expected net premiums and benefits is usually determined when the contract is entered into, taking account of mortality data available at that time. Any subsequent changes will affect the liability of the annuity provider toward the beneficiary, and the consequences should be recorded as other changes in the volume of liabilities. Further information on life insurance and annuities entitlements can be found in paragraphs 8.186 to 8.187 of this manual.

Other changes in the volume of provisions for defined benefit superannuation (for financial assets: ETF 5211, TALC 443 and for liabilities: ETF 5213, TALC 543) records the value of other changes in the volume of provisions for defined benefit superannuation in the form of assets (ETF 5211, TALC 443) and liabilities ETF 5213, TALC 543) for defined benefit superannuation schemes operated by public sector units. Note that in Australian GFS, only the net liability position for changes in the volume of provisions for defined benefit superannuation (ETF 5213, TALC 543) is shown as no asset position exists. The asset position of changes in the volume of provisions for defined benefit superannuation (ETF 5211, TALC 443) is only maintained to align with the international standards and will report a zero balance.

Paragraph 10.72 of the IMF GFSM 2014 indicates that for defined benefit superannuation schemes, the level of benefits promised to participating employees is determined by a formula that is based on the participants’ length of service and salary. Changes in superannuation entitlements that are imposed without negotiation are recorded as other changes in the volume of assets. That is because such changes are assumed to be imposed unilaterally by the employer and do not constitute a capital transfer negotiated by mutual agreement.

Paragraph 10.73 of the IMF GFSM 2014 notes for a defined benefit superannuation scheme, any changes in the value of the liability due to changes in the formula used to determine benefits, and due to changes in demographic assumptions about the life span, should be recorded through other changes in the volume of provisions for defined benefit superannuation (for liabilities: ETF 5213, TALC 543). If the projected benefit obligation method is used to value superannuation entitlements, an adjustment through other changes in the volume of provisions for defined benefit superannuation (for liabilities: ETF 5213, TALC 543) is needed if the employer makes a unilateral decision without the agreement of the participating employees for structural change in the way promotion and merit increases are awarded. Further information on provisions for defined benefit superannuation can be found in paragraphs 8.188 to 8.190 of this manual.

Other changes in the volume of claims of superannuation funds on superannuation managers (for financial assets: ETF 5211, TALC 444 and for liabilities: ETF 5213, TALC 544) records the value of other changes in the volume of assets (ETF 5211, TALC 444) and liabilities (ETF 5213, TALC 544) relating to claims of superannuation funds on superannuation managers. Changes in the volume of claims of superannuation funds on superannuation fund managers are recorded through an other changes in the volume of claims of superannuation funds on superannuation managers (for financial assets: ETF 5211, TALC 444) and (for liabilities: ETF 5213, TALC 544) entry in the accounts. Further information on claims of superannuation fund on superannuation managers can be found in paragraph 8.191 of this manual.

Other changes in the volume of provisions for calls under standardised guarantee schemes (for financial assets: ETF 5211, TALC 445 and for liabilities: ETF 5213, TALC 545) records the value of other changes in the volume of assets (ETF 5211, TALC 445) and liabilities (ETF 5213, TALC 545) relating to provisions for calls under standardised guarantees held by public sector units. Paragraph 10.75 of the IMF GFSM 2014 notes that changes to provisions for calls under standardised guarantee schemes not resulting from transactions and holding gains and losses are shown as other changes in volume of assets and liabilities. For example, such other changes in volume of assets and liabilities occur whenever a significant change to the expected level of calls is recognised beyond any asset recovery. Further information on provisions for calls under standardised guarantee schemes can be found in paragraphs 8.192 to 8.193 of his manual.

Other changes in the volume of other financial assets / other liabilities (for financial assets: ETF 5211, TALC 45 and for liabilities: ETF 5213, TALC 55) records the value of other changes in the volume of other financial assets (ETF 5211, TALC 45) and liabilities (ETF 5213, TALC 55) held by public sector units. In GFS, other changes in the volume of other financial assets / liabilities are further classified as:

• Other changes in the volume of provisions for employee entitlements (for financial assets: ETF 5211, TALC 451 and for liabilities: ETF 5213, TALC 551); 
• Other changes in the volume of accounts receivable / accounts payable (for financial assets: ETF 5211, TALC 452 and for liabilities: ETF 5213, TALC 552); and 
• Other changes in the volume of other financial assets / other liabilities not elsewhere classified (for financial assets: ETF 5211, TALC 459 and for liabilities: ETF 5213, TALC 559).

Other changes in the volume of provisions for employee entitlements other than superannuation (for financial assets: ETF 5211, TALC 451 and for liabilities: ETF 5213, TALC 551) records the value of other changes in the volume of provisions for employee entitlements other than superannuation in the form of assets (ETF 5211, TALC 451) and liabilities (ETF 5213, TALC 551) that are held by public sector units. Note that in Australian GFS, only the net liability position for changes in the volume of provisions for employee entitlements other than superannuation (ETF 5213, TALC 551) is shown. The asset position of changes in the volume of provisions for employee entitlements other than superannuation (ETF 5211, TALC 451) is only maintained to align with the international standards and will report a zero balance.

Changes in the volume of provisions for employee entitlements other than superannuation may be necessary if there are changes in the volume of employees, and must be recorded through an other changes in the volume of provisions for employee entitlements other than superannuation (for liabilities: ETF 5213, TALC 551) entry in the accounts. Further information on provisions for employee entitlements other than superannuation can be found in paragraphs 8.195 to 8.197 of this manual.

Other changes in the volume of accounts receivable (ETF 5211, TALC 452) and accounts payable (ETF 5213, TALC 552) records the value of other changes in the volume of accounts receivable (ETF 5211, TALC 452) and on accounts payable (ETF 5213, TALC 552) that are held by public sector units. Paragraph 10.84 of the IMF GFSM 2014 notes that if the amount payable under a financial derivative remains due for payment after it matures, the amount due no longer represents a financial derivative because the value is fixed. It is therefore reclassified as an accounts receivable (ETF 5221, TALC 452) or as an accounts payable (ETF 5213, TALC 552). Further information on accounts receivable and accounts payable can be found in paragraphs 8.198 to 8.200 of this manual.

Other changes in the volume of other financial assets not elsewhere classified (for financial assets: ETF 5211, TALC 459) and other liabilities not elsewhere classified (for liabilities: ETF 5213, TALC 559) records the value of other changes in the volume of other financial assets not elsewhere classified (ETF 5111, TALC 459) and other liabilities not elsewhere classified (ETF 5113, TALC 559) held by public sector units. Changes in the volume of other financial assets are recorded through an other changes in the volume of other financial assets not elsewhere classified (ETF 5211, TALC 459) entry in the accounts, and other liabilities are recorded through an other liabilities not elsewhere classified (ETF 5213, TALC 559) entry in the accounts. Further information on other financial assets (and other liabilities) not elsewhere classified can be found in paragraph 8.201 of this manual.

Other changes in the volume of assets may occur on both produced and non-produced non-financial assets. In GFS, other changes in the volume of non-financial assets are further classified as:

• Other changes in the volume of fixed produced assets (ETF 5212, TALC 1); 
• Other changes in the volume of other produced assets (ETF 5212, TALC 2); and 
• Other changes in the volume of non-produced assets (ETF 5212, TALC 3).

Other changes in the volume of fixed produced assets (ETF 5212, TALC 1) records the value of other changes in the volume of fixed produced assets (net of depreciation) (ETF 5212, TALC 1) held by public sector units. Other changes in the volume of fixed produced assets may arise through many different events. Paragraphs 10.64 to 10.69, and 10.83 of the IMF GFSM 2014 list some of these events as:

• The calculation of depreciation reflects an assumption about normal rates of physical deterioration, obsolescence, and accidental damage of non-financial produced assets. There is a risk that these assumptions may prove to be erroneous. In that case, an adjustment in the form of other changes in the volume of assets must be made to adjust for errors in assumptions on the rates of depreciation on non-financial produced assets.
• Physical deterioration of non-financial produced assets may include the effects of unforeseen environmental degradation. Entries must be made through other changes in the volume of assets for the decline in the value of the non-financial produced assets from (for example), the unforeseen effects of acidity in the air or acid rain on building surfaces or vehicle bodies. 
• The introduction of improved technology can render an asset obsolete or accelerate the rate of obsolescence of non-financial produced assets. For example, improved models of the asset or of a new production process that no longer requires the asset, may lead to unforeseen obsolescence. In consequence, the amount included in depreciation for their expected obsolescence may have been underestimated, so an entry in other changes in the volume of non-financial produced assets should be recorded.
• The assumptions about normally expected damage to non-financial produced assets may fall short of the actual damage done. Adjustments must therefore be made through other changes in the volume of assets for the decline in the value of the non-financial produced assets due to these events. Damage to non-financial produced assets that is more significant than normal wear and tear (but not on a scale sufficiently large to be considered catastrophic), is recorded as other changes in the volume of non-financial produced assets. 
• Costs of ownership transfer on non-produced assets other than land should be written off over the expected time that the asset will be in the possession of the purchaser through depreciation. To maintain the integration of stock positions and flows, the costs of ownership transfer of nonproduced assets other than land and the depreciation relating to these costs are reclassified to the respective non-produced assets through an entry in other changes in the volume of assets. This reclassification is considered to take place at the time of recording the transactions in cost of ownership transfer and depreciation, respectively. If the asset is disposed of before the costs of ownership transfer are completely written off, the remainder should be recorded as an other change in the volume of assets.

In GFS, other changes in the volume of fixed produced assets are further classified as:

• Other changes in the volume of buildings and structures (ETF 5212, TALC 11); 
• Other changes in the volume of machinery and equipment (ETF 5212, TALC 12); 
• Other changes in the volume of cultivated biological resources (ETF 5212, TALC 13); 
• Other changes in the volume of intellectual property products (ETF 5212, TALC 14); and 
• Other changes in the volume of weapons systems (ETF 5212, TALC 15).

Other changes in the volume of buildings and structures (ETF 5212, TALC 11) records the value of other changes in the volume of buildings and structures (ETF 5212, TALC 11) that are held by public sector units. In GFS, other changes in the volume of buildings and structures are further classified as:

• Other changes in the volume of dwellings (ETF 5212, TALC 111); 
• Other changes in the volume of buildings other than dwellings (ETF 5212, TALC 112); 
• Other changes in the volume of land improvements (ETF 5212, TALC 113); and
• Other changes in the volume of structures not elsewhere classified (ETF 5212, TALC 119).

Other changes in the volume of dwellings (ETF 5212, TALC 111) records the value of other changes in the volume of dwellings (ETF 5212, TALC 111) owned by public sector units. Other changes in the volume of dwellings may arise through a number of different events including partial or complete destruction due to fire, flood, cyclone, or other such catastrophic damage; a change in the nature or function of the dwelling that requires it to be reclassified (for example) as a commercial building or as a private dwelling; or damage by tenants that is excessive to normal wear and tear. A new investment in dwellings is not an other change in the volume of assets, but a transaction under acquisitions of new non-financial assets (ETF 4114, TALC 111, COFOG-A, SDC), or as capital formation (ETF 4113, TALC 111, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under capital formation (ETF 76, TALC 111, COFOG-A). Further information on dwellings can be found in paragraphs 8.57 to 8.58 of this manual.

Other changes in the volume of buildings other than dwellings (ETF 5212, TALC 112) records the value of other changes in the volume of buildings other than dwellings (ETF 5212, TALC 112) owned by public sector units. Other changes in the volume of buildings other than dwellings may arise through a number of different events including partial or complete destruction due to fire, flood, cyclone, or other such catastrophic damage; a change in the nature or function of the building that requires it to be reclassified out of this category or sector; or other damage that is excessive to normal wear and tear. A new investment in buildings other than dwellings is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 112, COFOG-A, SDC), or as own-account capital formation (ETF 4113, TALC 112, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 112, COFOG-A).

Paragraph 10.50 of the IMF GFSM 2014 states that when a special archaeological, historical, or cultural significance of a structure or site not already recorded in the balance sheet is first recognised, it is classified as other changes in the volume of assets. For example, such recognition might be accorded to an existing structure or site that is fully written off and thus no longer recorded in the balance sheet. Alternatively, a structure or site that is already within the asset boundary, but is new or only partially written off, may be assessed as having the status of a public monument. If the monument was previously written off, then its recognition as a public monument is classified as other changes in the volume of assets. If it was previously classified as another type of asset, it is recorded as a reclassification of an asset. If at the same time a new valuation is placed on the monument, this increase in value is recorded as other changes in the volume of assets. Further information on buildings other than dwellings can be found in paragraphs 8.59 to 8.60 of this manual.

Other changes in the volume of land improvements (ETF 5212, TALC 113) records the value of other changes in the volume of improvements to land (ETF 5212, TALC 113) by public sector units. Other changes in the volume of land improvements may arise through a number of different events including partial or complete destruction due to fire, flood, cyclone, or other such catastrophic damage; or other damage that is excessive to normal wear and tear. Additions of new land improvements are not other changes in the volume of assets, but are transactions under acquisitions of non-financial assets (ETF 4114, TALC 113, COFOG-A, SDC), or as own-account capital formation (ETF 4113, TALC 113, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 113, COFOG-A). Further information on land improvements can be found in paragraphs 8.61 to 8.64 of this manual.

Other changes in the volume of structures not elsewhere classified (ETF 5212, TALC 119) records the value of other changes in the volume of structures not elsewhere classified (ETF 5112, TALC 119) owned by public sector units. Other changes in the volume of structures not elsewhere classified may arise through a number of different events including partial or complete destruction of the structure due to fire, flood, cyclone, or other such catastrophic damage; or other damage that is excessive to normal wear and tear. A new investment in other structures not elsewhere classified is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 119, COFOG-A, SDC), or as own-account capital formation (ETF 4113, TALC 119, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 119, COFOG-A). Further information on structures not elsewhere classified can be found in paragraphs 8.65 to 8.66 of this manual.

Other changes in the volume of machinery and equipment (ETF 5212, TALC 12) records the value of other changes in the volume of machinery and equipment (ETF 5112, TALC 12) (net of depreciation) owned by public sector units. In GFS, other changes in the volume of machinery and equipment are further classified as:

• Other changes in the volume of transport equipment (ETF 5212, TALC 121); 
• Other changes in the volume of information, computer, and telecommunication equipment (ETF 5212, TALC 122); and
• Other changes in the volume of machinery and equipment not elsewhere classified (ETF 5212, TALC 129).

Other changes in the volume of transport equipment (ETF 5212, TALC 121) records the value of other changes in the volume of transport equipment (ETF 5212, TALC 121) owned by public sector units. Other changes in the volume of transport equipment may arise through a number of different events including partial or complete destruction of the physical equipment due to fire, flood, cyclone, or other such catastrophic damage; or other damage that is excessive to normal wear and tear. Also included are changes in the volume of transport equipment due to obsolescence as a result of changes in technology, or some change in the reason that the transport equipment is used (i.e., deliveries to a remote location ceases or are reduced). A new investment in transport equipment is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 121, COFOG-A, SDC), or as ownaccount capital formation (ETF 4113, TALC 121, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 121, COFOG-A). Further information on transport equipment can be found in paragraph 8.68 of this manual.

Other changes in the volume of information, computer, and telecommunication equipment (ETF 5212, TALC 122) records the value of other changes in the volume of information, computer, and telecommunication equipment (ETF 5212, TALC 122) owned by public sector units. Other changes in the volume of information, computer, and telecommunication equipment may arise through a number of different events including partial or complete destruction of the physical equipment due to fire, flood, cyclone, or other such catastrophic damage; or other damage that is excessive to normal wear and tear. Also included are changes in the volume of information, computer, and telecommunication equipment due to obsolescence as a result of changes in technology, or some change in the way that the equipment is used (e.g. static computer equipment is replaced with laptops or tablets). A new investment in information, computer, and telecommunication equipment is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 122, COFOG-A, SDC). Further information on information, computer, and telecommunication equipment can be found in paragraphs 8.69 to 8.70 of this manual.

Other changes in the volume of machinery and equipment not elsewhere classified (ETF 5212, TALC 129) records the value of other changes in the volume of machinery and equipment not elsewhere classified (ETF 5212, TALC 129) owned by public sector units. Other changes in the volume of machinery and equipment not elsewhere classified may arise through a number of different events including partial or complete destruction of the physical equipment due to fire, flood, cyclone, or other such catastrophic damage; or other damage that is excessive to normal wear and tear. Also included are changes in the volume of other machinery and equipment not elsewhere classified due to obsolescence as a result of changes in technology, or some change in the way that the machinery or equipment is used. A new investment in other machinery and equipment not elsewhere classified is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 129, COFOG-A, SDC), or as own-account capital formation (ETF 4113, TALC 129, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 129, COFOG-A). Further information on machinery and equipment not elsewhere classified can be found in paragraphs 8.71 to 8.73 of this manual.

This item records the value of other changes in the volume of cultivated biological resources (ETF 5212, TALC 13) (net of depreciation) owned by public sector units. In GFS, other changes in the volume of cultivated biological resources are further classified as:

• Other changes in the volume of animal resources yielding repeat products (ETF 5212, TALC 131); and
• Other changes in the volume of tree, crop, and plant resources yielding repeat products (ETF 5212, TALC 132).

Other changes in the volume of animal resources yielding repeat products (ETF 5212, TALC 131) records the value of other changes in the volume of animal resources yielding repeat products (ETF 5212, TALC 131) owned by public sector units. Other changes in the volume of animal resources yielding repeat products may arise through a number of different events including partial or complete destruction of the physical resources due to fire, flood, disease, drought, or other such catastrophic damage. Also included are changes in the volume of animal resources yielding repeat products due to growth in numbers from natural breeding, and obsolescence as a result of some change in the way that the resources are used (i.e., an abattoir closes down). A new investment in animal resources yielding repeat products is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 131, COFOG-A, SDC). Further information on animal resources yielding repeat products can be found in paragraphs 8.75 to 8.77 of this manual.

Other changes in the volume of tree, crop, and plant resources yielding repeat products (ETF 5212, TALC 132) records the value of other changes in the volume of tree, crop, and plant resources yielding repeat products (ETF 5212, TALC 132) owned by public sector units. Other changes in the volume of tree, crop, and plant resources yielding repeat products may arise through a number of different events including partial or complete destruction of the physical resources due to fire, flood, disease, drought, or other such catastrophic damage. Also included are changes in the volume of tree, crop, and plant resources yielding repeat products due to natural growth, and through obsolescence as a result of some change in the way that the resources are used (i.e., the land that crops are grown on is rezoned for housing and the growing operation is shut down). A new investment in tree, crop, and plant resources yielding repeat products is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 132, COFOG-A, SDC). Further information on tree, crop, and plant resources yielding repeat products can be found in paragraphs 8.78 to 8.81 of this manual

Other changes in the volume of intellectual property products (ETF 5212, TALC 14) records the value of other changes in the volume of intellectual property products (ETF 5212, TALC 14) (net of amortisation) owned by public sector units. In GFS, other changes in the volume of intellectual property products are further classified as:

• Other changes in the volume of research and development (ETF 5212, TALC 141); 
• Other changes in the volume of mineral exploration and evaluation (ETF 5212, TALC 142); 
• Other changes in the volume of computer software (ETF 5212, TALC 143); 
• Other changes in the volume of databases (ETF 5212, TALC 144); 
• Other changes in the volume of entertainment, literary, and artistic originals (ETF 5212, TALC 145); and 
• Other changes in the volume of intellectual property products not elsewhere classified (ETF 5212, TALC 149).

Other changes in the volume of research and development (ETF 5212, TALC 141) records the value of other changes in the volume of research and development (ETF 5212, TALC 141) undertaken by public sector units. Other changes in the volume of research and development may arise through obsolescence as a result of some change in the way that the research and development is used (i.e., a change in technology means that research and development into a particular issue may need to be abandoned). A new investment in research and development is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 141, COFOG-A, SDC), or as own-account capital formation (ETF 4113, TALC 141, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 141, COFOG-A). Further information on research and development can be found in paragraphs 8.83 to 8.85 of this manual.

Other changes in the volume of mineral exploration and evaluation (ETF 5212, TALC 142) records the value of other changes in the volume of mineral exploration and evaluation (ETF 5212, TALC 142) undertaken by public sector units. Other changes in the volume of mineral exploration and evaluation may arise through obsolescence as a result of events such as the exploration and evaluation leading to insufficient quantities of the mineral resource to make continuation economically viable, or some advance in technology which changes the way that the mineral exploration and evaluation is conducted. A new investment in mineral exploration and evaluation is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 142, COFOG-A, SDC), or as ownaccount capital formation (ETF 4113, TALC 142, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 142, COFOG-A). Further information on mineral exploration and evaluation can be found in paragraphs 8.86 to 8.87 of this manual.

This item records the value of other changes in the volume of computer software (ETF 5212, TALC 143) owned by public sector units. Other changes in the volume of computer software may arise due to obsolescence as a result of changes in technology, or some change in the way that the computer software is used. A new investment in computer software is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 143, COFOG-A, SDC), or as ownaccount capital formation (ETF 4113, TALC 143, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 143, COFOG-A). Further information on computer software can be found in paragraphs 8.88 to 8.89 of this manual.

Other changes in the volume of databases (ETF 5212, TALC 144) records the value of other changes in the volume of databases (ETF 5112, TALC 144) owned by public sector units. Other changes in the volume of databases may arise due to obsolescence as a result of changes in technology, or some change in the way that the database is used. A new investment in databases is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 144, COFOG-A, SDC), or as own-account capital formation (ETF 4113, TALC 144, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 144, COFOG-A). Further information on databases can be found in paragraph 8.90 of this manual.

Other changes in the volume of entertainment, literary, and artistic originals (ETF 5212, TALC 145) records the value of other changes in the volume of entertainment, literary, and artistic originals (ETF 5212, TALC 145) owned by public sector units. Other changes in the volume of entertainment, literary, and artistic originals may arise through the partial or complete destruction of the physical originals due to fire, flood, or other such catastrophic damage. A new investment in entertainment, literary, and artistic originals is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 145, COFOG-A, SDC). Further information on entertainment, literary, and artistic originals can be found in paragraph 8.91 of this manual.

Other changes in the volume of intellectual property products not elsewhere classified (ETF 5212, TALC 149) records the value of other changes in the volume of intellectual property products not elsewhere classified (ETF 5212, TALC 149) owned by public sector units. Other changes in the volume of intellectual property products not elsewhere classified may arise due to obsolescence as a result of changes in technology, or some change in the way that the other intellectual property product is used. A new investment in intellectual property products is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 149, COFOG-A, SDC), or as ownaccount capital formation (ETF 4113, TALC 149, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 149, COFOG-A). Further information on intellectual property products not elsewhere classified can be found in paragraphs 8.92 to 8.93 of this manual.

Other changes in the volume of weapons systems (also known as defence weapons platforms) (ETF 5212, TALC 151) records the value of other changes in the volume of weapons systems (ETF 5212, TALC 151) owned by public sector units. Other changes in the volume of weapons systems may arise due to obsolescence as a result of changes in technology. A new investment in weapons systems is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 151, COFOG-A, SDC). Further information on weapons systems (also known as defence weapons platforms) can be found in paragraphs 8.94 to 8.95 of this manual.

Other changes in the volume of other produced assets (ETF 5212, TALC 2) records the value of other changes in the volume of other non-financial produced assets (ETF 5212, TALC 2) (net of depreciation) owned by public sector units. In GFS, other changes in the volume of other produced assets are further classified as:

• Other changes in the volume of inventories (ETF 5212, TALC 21); 
• Other changes in the volume of valuables (ETF 5212, TALC 22); and 
• Other changes in the volume of other produced assets (ETF 5212, TALC 23).

Other changes in the volume of inventories (ETF 5212, TALC 21) records the value of other changes in the volume of inventories (ETF 5112, TALC 21) that are owned by public sector units. Paragraph 10.70 of the IMF GFSM 2014 notes that exceptional inventory losses from fire, robbery, insect and vermin infestation of grain stores, and unusually high levels of disease in livestock, etc. are included as other changes in the volume of assets. In this context, exceptional losses indicate that the losses are not only large in value, but also irregular in occurrence. Even very large losses that occur regularly should be taken into account when calculating the net change in inventories. The adjustment for unforeseen damage could be an increase in assets if the actual damage falls short of the assumption for losses.

In GFS, other changes in the volume of inventories are further classified as:

• Other changes in the volume of inventories - materials and supplies (ETF 5212, TALC 211);
• Other changes in the volume of inventories - work in progress (ETF 5212, TALC 212); 
• Other changes in the volume of inventories - finished goods (ETF 5212, TALC 213); 
• Other changes in the volume of inventories - goods for resale (ETF 5212, TALC 214); and 
• Other changes in the volume of military inventories (ETF 5212, TALC 215).

Other changes in the volume of inventories - materials and supplies (ETF 5212, TALC 211) records the value of other changes in the volume of inventories of materials and supplies (ETF 5112, TALC 211) owned by public sector units. During the production process, inventories of materials and supplies are reclassified to work in progress through an other change in the volume of assets entry in the accounts. Paragraph 10.82 of the IMF GFSM 2014 notes that the reclassification from one type of inventory to another or from non-financial produced assets to inventories should not involve a change in value. If at the time of conversion, the previous value is different from the appropriate new value, a holding gain or loss should be recorded to account for the difference. If this is found to be happening systematically, the valuation techniques for inventories should be re-examined. Further information on inventories - materials and supplies can be found in paragraphs 8.98 to 8.100 of this manual.

Other changes in the volume of inventories - work in progress (ETF 5212, TALC 212) records the value of other changes in the volume of inventories of work in progress (ETF 5212, TALC 212) owned by public sector units. During the production process, inventories of work in progress are reclassified to finished goods prior to sale through an other change in the volume of assets entry in the accounts. Paragraph 10.82 of the IMF GFSM 2014 notes that the reclassification from one type of inventory to another or from nonfinancial produced assets to inventories should not involve a change in value. If at the time of conversion, the previous value is different from the appropriate new value, a holding gain or loss should be recorded to account for the difference. If this is found to be happening systematically, the valuation techniques for inventories should be re-examined. Further information on inventories - work in progress can be found in paragraphs 8.101 to 8.104 of this manual.

Other changes in the volume of inventories - finished goods (ETF 5212, TALC 213) records the value of other changes in the volume of inventories of finished goods (ETF 5212, TALC 213) owned by public sector units. During the production process, inventories of finished goods are reclassified to goods for resale through an other change in the volume of assets entry in the accounts. Paragraph 10.82 of the IMF GFSM 2014 notes that the reclassification from one type of inventory to another or from non-financial produced assets to inventories should not involve a change in value. If at the time of conversion, the previous value is different from the appropriate new value, a holding gain or loss should be recorded to account for the difference. If this is found to be happening systematically, the valuation techniques for inventories should be re-examined. Further information on inventories - finished goods can be found in paragraph 8.105 of this manual.

Other changes in the volume of inventories - goods for resale (ETF 5212, TALC 214) records the value of other changes in the volume of inventories of goods for resale (ETF 5112, TALC 214) owned by public sector units. Paragraph 10.82 of the IMF GFSM 2014 notes that the reclassification from one type of inventory to another or from non-financial produced assets to inventories should not involve a change in value. If at the time of conversion, the previous value is different from the appropriate new value, a holding gain or loss should be recorded to account for the difference. If this is found to be happening systematically, the valuation techniques for inventories should be re-examined. Further information on inventories - goods for resale can be found in paragraphs 8.106 to 8.109 of this manual.

Other changes in the volume of inventories - military inventories (ETF 5212, TALC 215) records the value of other changes in the volume of military inventories (ETF 5212, TALC 215) owned by public sector units. Included are changes in the volume of single-use items, such as ammunition, missiles, rockets, bombs, etc., delivered by weapons or weapons systems. Further information on military inventories can be found in paragraphs 8.110 to 8.112 of this manual.

Other changes in the volume of valuables (ETF 5212, TALC 221) records the value of other changes in the volume of valuables (ETF 5212, TALC 221) (net of depreciation) owned by public sector units. Paragraph 10.50 of the IMF GFSM 2014 states that valuables (such as precious stones, antiques, and other art objects), for which the high value or artistic significance has not already been recorded in the balance sheet, should be recognised through an other change in the volume of assets entry in the accounts. Prior to this the object may have been of little value and not considered an asset. For example, the item might have been considered an ordinary good whose purchase was recorded as an expense, classified in use of goods and services (ETF 1233). Recognition of its worth as a store of value leads to its entrance into the balance sheet as a valuable. The recognition of the value of a existing item is often necessitated by a sale (e.g., at auction). The sale is recorded as a transaction under the disposal of non-financial assets only after the asset first entered into the balance sheet of the seller through an entry in other changes in the volume of assets. Further information on valuables can be found in paragraphs 8.113 to 8.115 of this manual.

Other changes in the volume of non-produced assets (ETF 5212, TALC 3) records the value of other changes in the volume of non-financial non-produced assets (ETF 5212, TALC 3) owned by public sector units. Paragraph 10.52 of the IMF GFSM 2014 states that a government unit can create an economic asset by exerting ownership rights over a naturally occurring asset that had not previously been recognised as an asset, such as the electromagnetic spectrum or fish stocks in exclusive economic zones. When this occurs, the asset enters the balance sheet through other changes in the volume of assets. It may be difficult to determine the exact time at which a natural asset should be added to the balance sheet, and to determine the value that should be attributed to it at that time. Often, the date at which the first substantial commercial exploitation begins or the signing of a contract to permit commercial exploitation is used to establish the time of recording. It is possible that some natural resources cease to be exploited because of changed technology, reduced demand for the resulting product, or for legislative reasons. When this change in use occurs, the asset is removed from the balance sheet through other changes in the volume of assets.

Paragraph 10.52 of the IMF GFSM 2014 notes that the difference between a quality change and a price change is a matter of degree, and it may not always be clear whether other changes in the volume of assets or a holding gain is most appropriate. For example, activities adjacent to land may change the volume of land (recorded as another volume change), while the value of land in the vicinity may also increase due to a rise in general price levels of land (recorded as holding gains).

In GFS, other changes in the volume of non-produced assets are further classified as:

• Other changes in the volume of tangible non-produced assets (ETF 5212, TALC 31);
• Other changes in the volume of intangible non-produced assets (ETF 5212, TALC 32); and
• Other changes in the volume of other non-produced assets (ETF 5212, TALC 39).

Other changes in the volume of tangible non-produced assets (ETF 5212, TALC 31) records the value of other changes in the volume of non-financial non-produced assets owned by government. In GFS, other changes in the volume of non-financial non-produced assets are further classified as:

• Other changes in the volume of land (ETF 5212, TALC 311); 
• Other changes in the volume of mineral and energy resources (ETF 5212, TALC 312); 
• Other changes in the volume of non-cultivated biological resources (ETF 5212, TALC 313); 
• Other changes in the volume of water resources (ETF 5212, TALC 314); 
• Other changes in the volume of radio spectra (ETF 5212, TALC 315); and 
• Other changes in the volume of tangible non-produced assets not elsewhere classified (ETF 5212, TALC 319).

Other changes in the volume of land (ETF 5212, TALC 311) records the value of other changes in the volume of land (ETF 5212, TALC 311) owned by public sector units. Paragraph 10.52 of the IMF GFSM 2014 states that not all land included in the geographic surface area of a country is necessarily within the asset boundary of GFS. Land may make its economic appearance when (for example) general economic development in nearby areas transforms the land from a wild or waste state to a state in which ownership rights can be enforced, and the land can be put to economic use. Land may also make its economic appearance (or enter the asset boundary) because of activity in the vicinity, for example land that becomes more accessible because a new development is established nearby or an access road built. Any excess in the value of the land over the value of land improvements, or any increase due to adjacent capital activity is recorded as economic appearance in GFS. For virgin forests, gathering firewood is not commercial exploitation, but large-scale harvesting of a virgin forest for timber is, and brings the forest into the asset boundary for GFS purposes.

Paragraph 10.52 of the IMF GFSM 2014 further notes that quality changes in natural resources that are already within the asset boundary due to changes in economic uses is regarded as the appearance of additional amounts of the asset. For example, the use of bare rural land changes when it becomes land underlying buildings and may result in a change in the balance sheet value that is recorded through an other change in the volume of the assets entry in the accounts. All degradation of land and other natural assets caused by economic activity should be recorded as negative other changes in the volume of assets. The degradation may be the anticipated result from regular economic activity or less predictable erosion and other damage to land from deforestation or improper agricultural practices. Further information on land can be found in paragraphs 8.120 to 8.122 of this manual.

Other changes in the volume of mineral and energy resources (ETF 5212, TALC 312) records the value of other changes in the volume of mineral and energy resources (ETF 5212, TALC 312) owned by public sector units. With regard to discoveries / extractions and upward / downward reappraisals of subsoil resources, paragraph 10.52 of the IMF GFSM 2014 states that the value of these resources may increase in the balance sheet by the discovery of new exploitable deposits, whether as a result of systematic scientific explorations or surveys, or by chance. Economic appearance may also occur because a deposit of subsoil minerals has become economically exploitable as a result of technological progress or relative price changes. Conversely, the value of these resources may decrease in the balance sheet by the depletion of deposits of subsoil assets as a result of the physical extraction and use of the assets, or from downward reappraisals that reduce their exploitability because of changes in technology or relative prices. Further information on mineral and energy resources can be found in paragraphs 8.123 to 8.126 of this manual.

Other changes in the volume of non-cultivated biological resources (ETF 5212, TALC 313) records the value of other changes in the volume of non-cultivated biological resources (ETF 5212, TALC 313) owned by public sector units. With regard to natural growth / harvesting of non-cultivated biological resources, paragraph 10.52 of the IMF GFSM 2014 states that the natural growth of non-cultivated biological resources (such as natural forests and fish stocks) may take various forms, for example, a stand of natural timber may grow taller, or fish in the estuaries may become more numerous. Although these resources are economic assets, growth of this kind is not under the direct control, responsibility, and management of an institutional unit, and so is not treated as a transaction in net investment in non-financial produced assets. In principle, natural growth should be recorded gross, and the depletion of these resources should be recorded as economic disappearance through an other change in volume entry in the accounts. In practice, however, the net natural growth may only be available because the net physical measures are likely to be available. The net physical measure multiplied by the market price for a unit of the asset may be used in estimating the value of the volume change to be recorded.

Paragraph 10.52 of the IMF GFSM 2014 further notes that the depletion of natural forests, fish stocks in the open seas, and other non-cultivated biological resources included in the asset boundary of general government or public sector units as a result of harvesting, forest clearance, or other use beyond sustainable levels of extraction constitutes an economic disappearance of assets and should be recorded as negative other changes in the volume of assets. It is possible that some natural resources cease to be exploited because of changed technology, reduced demand for the resulting product, or for legislative reasons. When this change in use occurs, the asset is removed from the balance sheet through other changes in the volume of assets. Further information on non-cultivated biological resources can be found in paragraphs 8.127 to 8.129 of this manual.

Other changes in the volume of water resources (ETF 5212, TALC 314) records the value of other changes in the volume of water resources (ETF 5212, TALC 314) owned by public sector units. Paragraph 10.52 of the IMF GFSM 2014 notes that a government unit can bring a previously unrecognised asset into the asset boundary of GFS by exerting ownership rights over a naturally occurring asset. When this occurs, the asset enters the balance sheet through other changes in the volume of assets. In the context of water resources, drawing water from a natural spring does not bring an aquifer into the asset boundary of GFS, but a significant diversion of ground water does. A move to charge for regular extraction from a body of surface water may also bring a water resource into the balance sheet. All degradation of water resources caused by economic activity should be recorded as negative other changes in the volume of assets. Further information on water resources can be found in paragraphs 8.130 to 8.131 of this manual.

Other changes in the volume of radio spectra (ETF 5212, TALC 315) records the value of other changes in the volume of radio spectra (ETF 5212, TALC 315) owned by public sector units. Paragraph 10.52 of the IMF GFSM 2014 states that a government unit can create an economic asset by exerting ownership rights over a naturally occurring asset that had not previously been recognised as an asset (such as the electromagnetic spectrum). When this occurs, the asset enters the balance sheet through other changes in the volume of assets. Further information on radio spectra can be found in paragraph 8.132 of this manual.

Other changes in the volume of tangible non-produced assets not elsewhere classified (ETF 5212, TALC 319) records the value of other changes in the volume of tangible non-produced assets owned by public sector units that are not elsewhere classified (ETF 5212, TALC 319). The entry and exit or change in the volume of other natural resources through degradation, discoveries, or natural growth, are recorded on the GFS balance sheet through an other change in volume entry in the accounts. Further information on tangible non-produced assets not elsewhere classified can be found in paragraph 8.133 of this manual.

Other changes in the volume of intangible non-produced assets (ETF 5212, TALC 32) records the value of other changes in the volume of intangible non-produced assets (ETF 5212, TALC 32) owned by public sector units. Paragraph 10.53 of the IMF GFSM 2014 recommends that assets in the form of contracts, leases, and licences should be recognised in the balance sheet of the holder only when the value of the asset can be realised. In this case, they are first recorded as other changes in the volume of assets and, subsequently, form the basis of a transaction (or series of transactions). The value of the contract, lease, or licence that is treated as an asset is equal to the present value of the excess of the prevailing price over the contract price. The value will decline as the remaining contract period shortens. Changes in the value of the contract, lease, or licence due to changes in the prevailing price are recorded as holding gains or losses (revaluations); changes due to the expiration of the time over which the contract, lease, or licence is valid are recorded as other changes in volume of assets (i.e. to write off the value of such an asset which is also referred to as amortisation). The rate at which the value is written down should be in accordance with generally accepted accounting principles. Further information on intangible non-produced assets can be found in paragraph 8.134 of this manual.

In GFS, other changes in the volume of intangible non-produced assets are further classified as:

• Other changes in the volume of marketable operating leases (ETF 5212, TALC 321);
• Other changes in the volume of permits to use natural resources (ETF 5212, TALC 322); 
• Other changes in the volume of permits to undertake specific activities (ETF 5212, TALC 323); 
• Other changes in the volume of entitlements to future goods and services on an exclusive basis (ETF 5212, TALC 324); 
• Other changes in the volume of goodwill and marketing assets (ETF 5212, TALC 325); and 
• Other changes in the volume of intangible non-produced assets not elsewhere classified (ETF 5212, TALC 329).

Other changes in the volume of marketable operating leases (ETF 5212, TALC 321) records the value of other changes in the volume of marketable operating leases (ETF 5112, TALC 321) owned by public sector units. Changes in the volume of marketable operating leases may arise through a number of events including the merging or splitting of government units through machinery of government or other structural changes. This may lead to changes in the volume of marketable operating leases, which are recorded through an other change in volume entry in the accounts. Further information on marketable operating leases can be found in paragraph 8.135 and Chapter 13 Part H of this manual.

Other changes in the volume of permits to use natural resources (ETF 5212, TALC 322) records the value of other changes in the volume of permits to use natural resources (ETF 5212, TALC 322) owned by public sector units. Changes in the volume of permits to use natural resources may arise through a number of events including the depletion of the natural resource leading to a necessary reduction in the permits allowing use, also legislative changes or restrictions may influence the volume of permits to use natural resources. These changes are recorded through an other change in volume entry in the accounts. Further information on permits to use natural resources can be found in paragraph 8.136 and Chapter 13 Part H of this manual.

Other changes in the volume of permits to undertake specific activities (ETF 5212, TALC 323) records the value of other changes in the volume of permits to undertake specific activities (ETF 5212, TALC 323) owned by public sector units. Changes in the volume of permits to undertake specific activities may arise through a number of events including legislative changes or restrictions which make the activity illegal (or vice versa), or a change in technology which makes the specific activity obsolete. These changes are recorded through an other change in volume entry in the accounts. Further information on permits to undertake specific activities can be found in paragraph 8.137 to 8.138 and Chapter 13 Part H of this manual.

Other changes in the volume of entitlements to future goods and services on an exclusive basis (ETF 5212, TALC 324) records the value of other changes in the volume of entitlements to future goods and services on an exclusive basis (ETF 5212, TALC 324) owned by public sector units. Changes in the volume of entitlements to future goods and services on an exclusive basis may arise through a number of events including a change in the need for the future goods and services, rendering the need for exclusive entitlement obsolete. These changes are recorded through an other change in volume entry in the accounts. Further information on entitlements to future goods and services on an exclusive basis can be found in paragraph 8.139 of this manual.

Other changes in the volume of goodwill and marketing assets (ETF 5112, TALC 325) records the value of other changes in the volume of goodwill and marketing assets (ETF 5112, TALC 325) owned by public sector units. Paragraph 10.54 of the IMF GFSM 2014 notes that when an enterprise (whether a corporation, quasi-corporation, or unincorporated enterprise) is sold, the price payable may not equal the sum of all the assets minus the liabilities of the enterprise. The difference between the price payable and the sum of all the assets minus liabilities is called the purchased goodwill and marketing assets of the buyer. The value may be positive or negative (or zero). Because the purchased goodwill and marketing assets is equal to the difference in the price payable and the sum of all the assets minus liabilities, when the buyer includes goodwill and marketing assets in the calculation of the net worth of the enterprise at the moment it is bought, net worth will be exactly zero.

Paragraph 10.55 of the IMF GFSM 2014 states that the value of purchased goodwill and marketing assets is calculated at the time of the sale, and entered in the books of the seller as an other change in the volume of assets. Subsequently, it is then exchanged as a transaction with the purchaser. Thereafter, the value of the purchased goodwill and marketing asset must be written down in the books of the purchaser via entries under other changes in the volume of assets. The rate at which it is written down should be in accordance with generally accepted accounting principles.

Paragraph 10.55 of the IMF GFSM 2014 notes that goodwill which is not evidenced by a sale or purchase, is not considered to be an economic asset in GFS. In some exceptions, a marketing asset may be subject to sale. When this is the case, entries should be made for the buyer and the seller along the lines of those made for purchased goodwill and marketing assets when the entire enterprise is sold. Further information on goodwill and marketing assets can be found in paragraphs 8.140 to 8.142 of this manual.

Other changes in the volume of intangible non-produced assets not elsewhere classified (ETF 5212, TALC 329) records the value of other changes in the volume of intangible non-produced assets not elsewhere classified (ETF 5212, TALC 329) owned by public sector units. Changes in the volume of intangible nonproduced assets may arise through a number of events including the merging or splitting of government units through machinery of government or other structural changes. This may lead to changes in the volume of marketable operating leases, which are recorded through an other change in volume entry in the accounts. Further information on intangible non-produced assets not elsewhere classified can be found in paragraphs 8.143 to 8.144 of this manual.

Other changes in the volume of other non-financial non-produced assets (ETF 5212, TALC 33 and TALC 339) records the value of other changes in the volume of other non-financial non-produced assets (ETF 5212, TALC 33 and TALC 339) owned by public sector units. Changes in the volume of other non-financial non-produced assets not elsewhere classified may arise through a number of events including the merging or splitting of government units through machinery of government or other structural changes. Further information on other non-financial non-produced assets not elsewhere classified can be found in paragraph 8.145 of this manual.

Change in net worth due to other changes in volume (ETF 5221) is used to record the change in net worth due to other changes in volume during the reporting period. Paragraph 10.2 of the IMF GFSM 2014 defines the change in net worth due to other changes in volume as the sum of all positive or negative other changes in the volume of assets and liabilities. Further information on the change in net worth can be found in Chapter 11 Part F of this manual.