A1A.260.

Produced assets (TALC 1) are assets that are used repeatedly or continuously in production processes for more than one year. This category is further classified into:

• buildings and structures (TALC 11);
• machinery and equipment (TALC 12);
• cultivated biological resources (TALC 13);
• intellectual property products (TALC 14); and
• weapons systems (TALC 15).

A1A.261.

Buildings and structures (TALC 11) is further classified into:

• dwellings (TALC 111);
• buildings other than dwellings (TALC 112);
• land improvements (TALC 113); and
• structures not elsewhere classified (TALC 119).

The value of buildings and structures includes all amounts payable for site clearance and preparation and the cost of all fixtures, facilities and equipment that are integral parts of buildings structures. Public monuments in the form of buildings and structures are included in this category. This encompasses the construction of new public monuments, as well as major improvements to existing public monuments. Public monuments are identifiable because of particular historical, national, regional, local, religious or symbolic significance. In principle, public monuments should be included in dwellings (TALC 111), buildings other than dwellings (TALC 112) or structures not elsewhere classified (TALC 119) as appropriate. In practice, it may be desirable to classify them as other structures. Refer to paragraph 7.42 to 7.43 of the IMF GFSM 2014 for further information on public monuments.

A1A.262.

Dwellings (TALC 111) consists of buildings, or designated parts of buildings, that are used entirely or primarily as residences including any associated structures such as garages, and all permanent fixtures customarily installed in residences.

Includes:    Houseboats, barges, mobile homes and caravans used as principal residences; public monuments identified primarily as dwellings; dwellings acquired by government for military personnel; incomplete dwellings where the ultimate user is deemed to have taken economic ownership because the construction is own account or as evidenced by the existence of a contract of sale or purchase; costs of site clearance and preparation for new dwellings.

A1A.263.

Buildings other than dwellings (TALC 112) consists of whole buildings or parts of buildings not designated as dwellings and all fixtures, facilities and equipment that are integral parts of these structures.

Includes:    Office buildings; schools; hospitals; prisons; buildings for public entertainment; warehouses and industrial buildings; commercial buildings; hotels and restaurants; public monuments identified primarily as non-residential buildings; costs of site clearance and preparation for new buildings.

A1A.264.

Land improvements (TALC) consists of the result of actions that lead to major improvements in the quantity, quality or productivity of land, or prevent its deterioration.

Includes:    Activities that are integral to the land in question such as land reclamation, land clearance, land contouring, creation of wells and watering holes; preparation for the erection of buildings; planting of crops; and costs of ownership transfer on land.

Excludes:   Construction of seawalls, dikes, dams and major irrigation systems that are not integral to the land and often affect land belonging to several owners and which are often carried out by government (classified to structures not elsewhere classified (TALC 119)).

A1A.265.

Structures not elsewhere classified (TALC 119) consists of all structures other than buildings.

Includes:    Highways; streets; roads; bridges; elevated highways; tunnels; railways; subways; airfield runways; sewers; waterways; harbours; dams; shafts, tunnels and other structures associated with mining mineral and energy resources; communication lines; power lines; long distance pipelines; local pipelines; cables; outdoor sport and recreation facilities; mining and manufacturing constructions; construction of seawalls, dikes, flood barriers and similar structures intended to improve the quality and quantity of land adjacent to them; infrastructure necessary for aquaculture such as fish farms and shellfish beds; public monuments that cannot be identified as dwellings or buildings other than dwellings; buildings and structures acquired for military purposes that are used repeatedly, or continuously, in processes of production for more than one year; costs of site clearance and preparation; construction of major irrigation systems that are not integral to the land and often affect land belonging to several owners.

A1A.266.

Machinery and equipment (TALC 12) is further classified into:

• transport equipment (TALC 121);
• information, communication and telecommunications equipment (TALC 122); and
• machinery and equipment not elsewhere classified (TALC 129).

Machinery and equipment forming an integral part of a building or other structure are included in the value of the building or structure rather than in this category.

A1A.267.

Transport equipment (TALC 121) consists of equipment for moving people and objects.

Includes:    Motor vehicles; trailers; semitrailers; ships; railway and tramway locomotives and rolling stock; aircraft; motorcycles; bicycles; spacecraft.

Excludes:   Houseboats, barges, mobile homes and caravans used as principal residences (classified to TALC 111 Dwellings); transport equipment acquired by households for final consumption.

A1A.268.

Information, computer and telecommunications equipment (TALC 122) consists of devices using electronic controls and also the electronic components forming part of these devices.

Includes:    Products that form part of computing machinery and parts and accessories thereof such as processors, hard drives, monitors and keyboards; television and radio transmitters; television; video; digital cameras; telephone sets.

Excludes:   Computer software (classified to computer software (TALC 143)); computer equipment acquired by households for final consumption.

A1A.269.

Machinery and equipment not elsewhere classified (TALC 129) consists of all machinery and equipment that cannot be classified to transport equipment (TALC 121) or information, computer and telecommunications equipment (TALC 122).

Includes:    General-purpose and special-purpose machinery; office and accounting equipment; electrical machinery; medical appliances; precision and optical instruments; furniture; watches and clocks; musical instruments; sports goods; paintings, sculptures and other works of art; antiques; and collections of considerable value that are not held primarily as stores of value but are owned and displayed for the purpose of producing museum and similar services.

Excludes:   Tools, such as hand tools, that are inexpensive and purchased at a relatively steady rate and do not form a large share of the stock of machinery and equipment (classified to use of goods and services (ETF 1233, COFOG-A, SDC)); weapons systems (classified to weapons systems (TALC 151)); items of considerable value that are owned primarily as stores of value that are not intended for use in production (classified to valuables (TALC 221)); machinery and equipment that form an integral part of a building or other structure (classified to buildings other than dwellings (TALC 112) or structures not elsewhere classified (TALC 119)); machinery and equipment acquired by households for final consumption.

A1A.270.

Cultivated biological resources (TALC 13) is further classified into:

• animal resources yielding repeat products (TALC 131); and
• tree, crop and plant resources yielding repeat products (TALC 132). whose natural growth and regeneration are under the direct control, responsibility and management of institutional units.

A1A.271.

Animal resources yielding repeat products (TALC 131) consists of animal resources that yield repeat products and that are under the direct control, responsibility and management of institutional units.

Includes:    Breeding stocks; dairy cattle; draft animals; sheep or other animals used for wool production; animals used for transportation, racing or entertainment; aquatic resources yielding repeat products; immature animal resource assets produced on own account.

Excludes:   Immature animal resource assets unless produced for own use (classified to inventories – work in progress (TALC 211)); animals raised for slaughter, including poultry (classified to inventories – work in progress (TALC 211)).

A1A.272.

Tree, crop and plant resources yielding repeat products (TALC 132) consists of tree, crop and plant resources that yield repeat products and that are under the direct control, responsibility and management of institutional units.

Includes:    Trees, vines and shrubs cultivated for fruits, nuts, sap, resin, bark and leaf products; vineyards, orchards and plantations; immature tree, crop and plant resource assets produced on own account.

Excludes:   Trees grown for timber that yield a finished product once only when they are ultimately felled (classified to inventories - goods for resale (TALC 214)); grains or vegetables that produce only a single crop when they are harvested (classified to inventories - goods for resale (TALC 214)); immature tree, crop and plant resource assets unless produced on own account (classified to inventories – work in progress (TALC 211)).

A1A.273.

Intellectual property products (TALC 14) are the result of research, development, investigation or innovation leading to knowledge that the developers can market or use to their own benefit in production because use of the knowledge is restricted by means of legal or other protection. This category is further classified into:

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

A1A.274.

Research and development (TALC 141) consists of expenditure on creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and use of this stock of knowledge to devise new applications.

Includes:    Research and development that provides an economic benefit to its owner.

Excludes:   Research and development work that does not provide an economic benefit to its owner (classified to non-employee expenses not elsewhere classified (ETF 1239, COFOG-A, SDC)).

A1A.275.

Mineral exploration and evaluation (TALC 142) consists of expenditure on exploration for petroleum, natural gas and non-petroleum deposits and subsequent evaluation of the discoveries made.

Includes:    Pre-licence costs; licence costs; acquisition costs; appraisal costs; costs of aerial and other surveys; test drilling and boring costs; transportation and other costs incurred to make exploration possible.

A1A.276.

Computer software (TALC 143) consists of computer programs, program descriptions and supporting materials for both systems and applications software that are expected to be used for more than one year.

Includes:    Purchased software; software developed on own account; software intended only for own use; software intended for sale by means of copies.

A1A.277.

Databases (TALC 144) consists of files of data organised in such a way as to permit resource-effective access and use of the data.

Includes:    Purchase, development or extension of computer databases that are expected to be used in production for more than one year.

A1A.278.

Entertainment, literary and artistic originals (TALC 145) consists of original films, sound recordings, manuscripts, tapes and models in which drama performances, radio and television programming, musical performances, sporting events and literary and artistic output are recorded or embodied.

Includes:    Purchased entertainment, literary and artistic works; entertainment, literary and artistic works produced on own account.

A1A.279.

Intellectual property products not elsewhere classified (TALC 149) consists of intellectual property products that cannot be classified to research and development (TALC 141), mineral exploration and evaluation (TALC 142), computer software (TALC 143), databases (TALC 144) or entertainment, literary and artistic originals (TALC 145).

Includes:     New information and specialised knowledge not elsewhere classified which is restricted for use by the units that have established ownership rights over the information or to other units licensed by the owners.

A1A.280.

Weapons systems (TALC 15 and TALC 151) consists of military vehicles and equipment designed to launch weapons of destruction, that are used continuously for more than one year in the provision of defence services, even if their peacetime use is simply to provide deterrence.

Includes:    Warships, submarines, military aircraft, tanks, missile carriers; launchers; single-use weapons with a highly destructive capability which provide an ongoing service of deterrence against aggressors such as ballistic missiles.

Excludes:   Single-use weapons such as missiles, rockets and bombs (classified to TALC 215 Military inventories).

A1A.281.

Other produced assets (TALC 2) consists of all produced assets other than fixed produced assets. This category is further classified into:

• inventories (TALC 21);
• valuables (TALC 22); and
• other produced assets (TALC 23).

A1A.282.

Inventories (TALC 21) are goods and services which came into existence in the current period or in an earlier period and that are held for sale, use in production or other use at a later date. Inventories consists of stocks of goods that are still held by the units that produced them prior to their being further processed, sold, delivered to other units or used in other ways; products acquired from other units that are intended to be used in the production of market and non-market goods and services by units, or for resale without further processing; and goods that are held for strategic and emergency purposes, goods held by market regulatory organisations and other goods of special importance to the nation. This category is further classified into:

• materials and supplies (TALC 211);
• work in progress (TALC 212);
• finished goods (TALC 213);
• goods for resale (TALC 214); and
• military inventories (TALC 215).

A1A.283.

Inventories - materials and supplies (TALC 211) consists of all goods held with the intention of using them as inputs to a production process.

Includes: Office supplies; fuel; foodstuffs.

Excludes: Costs of ownership transfer.

A1A.284.

Inventories - work in progress (TALC 212) consists of goods and services that are not yet sufficiently processed to be in a state in which it is normally supplied to other institutional units.

Includes: Growing crops; computer programs in development; and architectural drawings that are in the process of completion.

Excludes: Partially completed projects for which the ultimate owner is deemed to have taken economic ownership in stages, either when the production is for own use and the new owner assumes the risks and benefits associated with the incomplete asset, or when evidenced by specific clauses in a contract of sale or purchase (classified to the appropriate category within fixed produced assets (TALC 1)); costs of ownership transfer.

A1A.285.

Inventories - finished goods (TALC 213) consists of goods that are the output of a production process, are still held by their producer and are not expected to be processed further by the producer before being supplied to other units. Finished goods may only be held by the units that produce them.

Includes: Architectural drawings that are completed and awaiting the ultimate owner to take ownership.

Excludes: Costs of ownership transfer.

A1A.286.

Inventories - goods for resale (TALC 214) consists of goods acquired for the purpose of reselling or transferring to other units without being further processed. Goods for resale may be transported, stored, graded, sorted, washed or packaged by their owners to present them for resale in ways that are attractive to their customers or beneficiaries but they are not otherwise transformed.

Includes: Goods purchased by general government units for provision free of charge or at prices that are not economically significant to other units; goods acquired by general government for distribution as social transfers in kind but that have not yet been so delivered; strategic stocks which are held for strategic and emergency purposes; goods held by market regulatory organisations; and commodities of special importance to the nation such as grain and petroleum.

Excludes: Costs of ownership transfer.

A1A.287.

Military inventories (TALC 215) consists of single-use items delivered by weapons or weapons systems.

Includes: Ammunition; missiles, rockets, bombs.

Excludes: Single-use weapons with a highly destructive capability which provide an ongoing service of deterrence against aggressors such as ballistic missiles (classified to weapons systems ( TALC 151)), and costs of ownership transfer.

A1A.288.

Valuables (TALC 22) is further classified into:

• valuables (TALC 221).

A1A.289.

Valuables (TALC 221) are produced assets of considerable value that are not used primarily for purposes of production or consumption but are held as stores of value over time. Valuables are expected to appreciate, or at least not to decline, in real value and they do not deteriorate over time under normal conditions.

Includes: Non-monetary gold and other precious stones and metals that are not intended to be used as materials and supplies in the processes of production; paintings, sculptures and other objects recognised as works of art or antiques held primarily as stores of value over time; jewellery of significant value fashioned out of precious stones and metals; collections; and commemorative coins that are not in circulation as legal tender.

Excludes: Collections of considerable value that are not held primarily as stores of value but are owned and displayed for the purpose of producing museum and similar services (classified to machinery and equipment not elsewhere classified (TALC 129)).

A1A.290.

Other produced assets (TALC 23) is further classified into:

• other produced assets not elsewhere classified (TALC 239)..

A1A.291.

Other produced assets not elsewhere classified (TALC 239) consists of produced assets other than fixed produced assets that cannot be classified to inventories (TALC 21) or valuables (TALC 22).

A1A.292.

Non-produced assets (TALC 3) consists of assets that are not outputs from the processes of production. This category is further classified into:

• tangible non-produced assets (TALC 31);
• intangible non-produced assets (TALC 32); and
• other non-produced assets (TALC 39).

A1A.293.

Tangible non-produced assets (TALC 31) are naturally occurring assets over which ownership rights are enforced. This category is further classified into:

• land (TALC 311);
• mineral and energy resources (TALC 312);
• non-cultivated biological resources (TALC 313);
• water resources (TALC 314);
• radio spectra (TALC 315); and
• tangible non-produced assets not elsewhere classified (TALC 319).

Excludes: Environmental assets over which ownership rights cannot be acquired such as the open sea or air.

A1A.294.

Land (TALC 311) consists of the ground, including the soil covering and any associated surface waters, over which ownership rights are enforced and from which economic benefits can be derived by their owners by holding or using them.

Includes: Land holdings; reservoirs, lakes, rivers and other inland waters over which ownership rights can be exercised; and non-cultivated biological resources that have economic value included in the value of the associated land.

Excludes: Water bodies from which water is regularly extracted, against payment, for use in production (including for irrigation) (classified to water resources (TALC 314)); buildings and other structures constructed on the land or through it, such as roads, office buildings and tunnels (classified to buildings other than dwellings (TALC 112), or structures not elsewhere classified (TALC 119)); land improvements (classified to land improvements (TALC 113)); the costs of ownership transfer on land (classified to land improvements (TALC 113)); subsoil assets (classified to mineral and energy resources (TALC 142 )); non-cultivated biological resources (classified to non-cultivated biological resources (TALC 313 )); water resources below the ground (classified to water resources (TALC 314); cultivated components of vineyards, orchards and other plantations of trees, animals and crops (classified to animal resources yielding repeat products (TALC 131) or tree, crop and plant resources yielding repeat products (TALC 132)).

A1A.295.

Mineral and energy resources (TALC 312) consists of mineral and energy reserves located on or below the earth’s surface that are economically exploitable, given current technology and relative prices. Ownership rights to the mineral and energy resources are usually separable from those to the land itself.

Includes: Deposits under the sea; known reserves of oil, natural gas and coal; known reserves of metallic ores including ferrous, non-ferrous and precious metal ores; non-metallic mineral reserves including stone quarries, clay and sand pits, chemical and fertiliser mineral deposits, deposits of salt, quartz, gypsum, natural gem stones, asphalt, bitumen and peat.

Excludes: Mine shafts, wells and other subsoil extraction facilities (classified to structures not elsewhere classified ( TALC 119)).

A1A.296.

Non-cultivated biological resources (TALC 313) consists of animals, birds, fish and plants that yield both once-only and repeat products over which ownership rights are enforced but for which natural growth or regeneration is not under the direct control, responsibility and management of any institutional units.

Includes: Virgin forests and fisheries that are commercially exploitable.

Excludes: Non-cultivated biological resources that have economic value included in the value of the associated land (classified to land (TALC 311)).

A1A.297.

Water resources (TALC 314) of surface and groundwater resources used for extraction to the extent that their scarcity leads to the enforcement of ownership or use rights, market valuation and some measure of economic control.

A1A.298.

Radio spectra (TALC 315) consists of the electromagnetic spectrum which includes the range of radio frequencies used in the transmission of sound, data and television.

A1A.299.

Tangible non-produced assets not elsewhere classified (TALC 319) consists of tangible non-produced assets that cannot be classified to land (TALC 311), mineral and energy resources (TALC 312), non-cultivated biological resources (TALC 313), water resources (TALC 314) or radio spectra (TALC 315).

A1A.300.

Intangible non-produced assets (TALC 32) are assets that are constructs of society evidenced by legal or accounting actions. Such assets entitle their owners to engage in certain specific activities or to produce certain specific goods or services and to exclude other units from doing so except with the permission of the owner. The owners of the assets may be able to earn monopoly profits by restricting the use of the assets to themselves. This category is further classified into:

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

A1A.301.

Marketable operating leases (TALC 321) consists of third-party property rights relating to fixed produced assets. The lease confers economic benefits to the holder in excess of the fees payable, and the holder can realise these benefits legally and practically, through transferring them. For example, where a tenant of a building has a fixed rental but the building could fetch a higher rental in the absence of the lease. If, in these circumstances, the tenant is able both legally and practically to sublet the building, then the tenant has an asset of the type of a marketable operating lease.

A1A.302.

Permits to use natural resources (TALC 322) consists of third-party property rights relating to natural resources. For example, where an institutional unit holds a fishing quota and is able, both legally and practically, to sell this to another unit.

A1A.303.

Permits to undertake specific activities (TALC 323) consists of permits that are limited in number and so allow the holder to earn monopoly profits where the monopoly profits do not come from the use of an asset belonging to the permit-issuer and the permit holder is able both legally and practically to sell the permit to a third party.

Includes: Taxi licences, casino licences.

A1A.304.

Entitlement to future goods and services on an exclusive basis (TALC 324) consists of the case where one party which has contracted to purchase goods or services at a fixed price at a time in the future is able to transfer the obligation of the second party to the contract, to a third party.

Includes: Footballers’ contracts; a publisher’s exclusive right to publish new works by a named author; the right to issue recordings by named musicians.

A1A.305.

Goodwill and marketing assets (TALC 325) consists of goodwill and marketing assets. Goodwill is the excess that potential purchasers of an enterprise are often prepared to pay above the net value of the enterprise’s individually identified and valued assets and liabilities. It reflects the value of corporate structures and the value to the business of an assembled workforce and management, corporate culture, distribution networks and customer base. Goodwill cannot be separately identified and sold to another party. Marketing assets are items such as brand names, mastheads, trademarks, logos and domain names.

A1A.306.

Intangible non-produced assets not elsewhere classified (TALC 329) consists of intangible non-produced assets that cannot be classified to marketable operating leases (TALC 321), permits to use natural resources (TALC 322), permits to undertake specific activities (TALC 323), entitlements to future goods and services on an exclusive basis (TALC 324) or goodwill and marketing assets (TALC 325).

A1A.307.

Other non-produced assets (TALC 33) is further classified into:

• other non-produced assets not elsewhere classified (TALC 339).

A1A.308.

Other non-produced assets not elsewhere classified (TALC 339) consists of non-financial non-produced assets that cannot be classified to tangible non-produced assets (TALC 31) or intangible non-produced assets (TALC 32).

A1A.309.

Financial assets (TALC 4) consists of financial claims and monetary gold in the form of gold bullion held by monetary authorities as a reserve asset. Financial claims are assets that typically entitle the owner of the asset (the creditor) to receive funds or other resources from another unit, under the terms of a liability. They provide benefits to the creditor by acting as a store of value or by generating interest, other property income or holding gains. This category is further classified into:

• currency and deposits (TALC 41);
• securities and related assets (TALC 42);
• loans and placements (TALC 43);
• insurance, superannuation and standardised guarantee schemes (TALC 44); and
• other financial assets (TALC 45).

A1A.311.

Currency and deposits (TALC 41) is further classified into:

• cash and deposits (TALC 411);
• Special Drawing Rights (SDRs) (TALC 412);
• monetary gold (bullion) (TALC 413); and
• monetary gold (allocated and unallocated) (TALC 414).

A1A.311.

Cash and deposits (TALC 411) consists of:

• cash in the form of notes and coins that are of fixed nominal values and are issued or authorised by the central bank or government; and
• deposits which refers to all claims on the deposit taking corporations (including the central bank) and in some cases, general government or other institutional units.

Includes: Notes and coins on hand; cheques held but not yet deposited; cash and deposits in both Australian currency and foreign currency; deposits placed in the short-term money market such as grants received from the Commonwealth and deposited overnight; units issued by cash management trusts; withdrawable share capital of building societies; claims on the IMF that are components of international reserves and are not evidenced by loans; repayable margin payments in cash related to financial derivative contracts; sight deposits that permit immediate cash withdrawals but not direct third-party transfers; savings and fixed-term deposits; overnight and very short-term repurchase agreements that are included in the national measures of broad money; foreign currency deposits that are blocked because of the rationing of foreign exchange as a matter of national policy; seignorage.

Excludes: Gold and commemorative coins that are not in circulation as legal tender or monetary gold (classified to valuables (TALC 221) or inventories – materials and supplies (TALC 211)); unallocated gold accounts held by monetary authorities as reserves assets (classified to monetary gold (allocated and unallocated) (TALC 414)); claims on the IMF that are evidenced by loans (classified to loans and placements not elsewhere classified (TALC 439)).

A1A.312.

Special Drawing Rights (SDRs) (TALC 412) consists of international reserve assets created by the International Monetary Fund (IMF) and allocated to its members to supplement reserve assets. SDR holdings represent each holder’s unconditional right to obtain foreign exchange or other reserve assets from other IMF members.

A1A.313.

Monetary gold (gold bullion) (TALC 413) consists of gold bullion, in the form of coins, ingots or bars with a purity of at least 995 parts per 1000, to which the monetary authorities (or others who are subject to the effective control of the monetary authorities) have title and is held as a reserve asset. Monetary gold in the form of bullion is a type of financial asset that has no counterpart liability in GFS and is restricted to central banks or central governments. A central bank is a public financial corporation that issues bank notes and coins and holds the international reserves of the country (in Australia, this is the Reserve Bank of Australia). Gold bullion is traded on organised markets or through bilateral arrangements between central banks.

Excludes: Gold not held as a reserve asset but held primarily as a store of value (classified to valuables (TALC 221)); gold not held as a reserve asset but used in a production process (classified to inventories – materials and supplies (TALC 211)); allocated or unallocated gold accounts held as reserve assets (classified to monetary gold (allocated and unallocated) (TALC 414)); deposits, loans and debt securities denominated in gold (classified to cash and deposits (TALC 411), loans and placements not elsewhere classified ( TALC 439) and debt securities (TALC 421) respectively)).

A1A.314.

Monetary gold (allocated and unallocated) (TALC 414) consists of allocated and unallocated gold accounts to which the monetary authorities (or others who are subject to the effective control of the monetary authorities) have title and is held as a reserve asset. Allocated gold accounts provide ownership of a specific piece of gold. The ownership of the gold remains with the entity placing it for safe custody. Unallocated gold accounts represent a claim against the account custodian to deliver gold. For these accounts, the account provider holds title to a reserve base of physical gold and issues claims to account holders denominated in gold.

Excludes: gold not held as a reserve asset but held primarily as a store of value (classified to valuables (TALC 221)); gold not held as a reserve asset but used in a production process (classified to inventories – materials and supplies (TALC 211 )); unallocated gold accounts not held as reserve assets (classified to cash and deposits (TALC 411)); deposits, loans and debt securities denominated in gold (classified to cash and deposits (TALC 411), loans and placements not elsewhere classified (TALC 439) and debt securities (TALC 421) respectively)).

A1A.315.

Securities and related assets (TALC 42) is further classified into:

• debt securities (TALC 421);
• financial derivatives (TALC 422);
• employee stock options (TALC 423);
• equity including contributed capital (TALC 424); and
• investment fund shares or units (TALC 425).

A1A.316.

Debt securities (TALC 421) consists of negotiable financial instruments serving as evidence of a debt.

Includes: Bills such as treasury bills, negotiable certificates of deposit, bankers’ acceptances, promissory notes, and commercial paper; bonds and debentures; bonds that are convertible into shares; zero-coupon bonds; deep-discount bonds; loans that have become negotiable from one holder to another and where there is evidence of secondary market trading; non-participating preferred stocks or shares; asset-backed securities; collateralised debt obligations; stripped securities; and index-linked securities.

A1A.317.

Financial derivatives (TALC 422) consists of financial instruments that are linked to another specific financial instrument or indicator or commodity, through which specific financial risks, such as interest rate risk, foreign exchange risk, equity and commodity price risks and credit risks, can be traded in their own right in financial markets.

Includes: Options, warrants including detachable warrants, forward-type contracts such as futures, forward rate agreements and forward foreign exchange contracts; swap contracts such as currency swaps, interest rate swaps and cross-currency interest rate swaps; credit derivatives such as total return swaps and credit default swaps; and stock options granted to employees that can be traded on financial markets without restriction; repurchase agreements; securities repurchase agreements which involve the sale of securities for cash, at a specified price, with a commitment to repurchase the same or similar securities at a fixed price either on a specified future data or with an open maturity; securities lending which involves security holders transferring securities to another party, subject to the stipulation that the same or similar securities be returned on a specified date or on demand; gold swaps which involve an exchange of gold for foreign exchange deposits with an agreement that the transaction be reversed at an agreed future date at an agreed gold price; and off-market swaps which involve swap contracts that have a non-zero value at inception as a result of having reference rates priced differently from current market values.

Excludes: Instruments with embedded derivatives (these are classified according to the primary characteristics of the instrument); central bank swap arrangements (classified to advances other than concessional loans (TALC 433)); repayable margin payments made in cash (classified to currency and deposits TALC 511); repayable margin payments made in assets other than cash (not recorded as a transaction or change in stock position because no change in economic ownership has occurred).

A1A.318.

Employee stock options (TALC 423) consists of options to buy the equity of a company, offered to employees of the company as a form of remuneration.

Includes: Stock options provided to suppliers of goods and services.

Excludes: Stock options granted to employees that can be traded on financial markets without restriction (classified to financial derivatives (TALC 422)).

A1A.319.

Equity including contributed capital (TALC 424) consists of all instruments and records that acknowledge claims on the residual value of a corporation or quasi-corporation, after the claims of all creditors have been met.

Includes: Listed and unlisted shares; stocks; participations; depository receipts which are securities that represent ownership of securities listed in other economies.

A1A.320.

Investment fund shares or units (TALC 425) consists 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). Investment fund shares or units refer to the shares issued by mutual funds and unit trusts, rather than the shares they may hold.

Includes: Money market funds; non-money market funds.

A1A.321.

Loans and placements (TALC 43) is further classified into:

• finance leases (TALC 431);
• advances - concessional loans (TALC 432);
• advances other than concessional loans (TALC 433); and
• loans and placements not elsewhere classified (TALC 439).

A1A.322.

Finance leases (TALC 431) consists of contracts under which the lessor, as legal owner of the asset, conveys substantially all risks and rewards of ownership of the asset to the lessee.

A1A.323.

Advances - concessional loans (TALC 432) consists of loans with concessional interest rates.

A1A.324.

Advances other than concessional loans (TALC 433) consists of loans and other non-equity financial assets acquired for policy rather than for liquidity management purposes. As a general rule, all loans made by general government to other government bodies, except loans made by central borrowing authorities, are deemed to be for policy purposes.

Includes: Long and short-term loans, non-marketable debentures; and long and short term promissory agreements (bonds and bills) issued to public sector units for the purposes of achieving government policy objectives.

Excludes: Government equity in public corporations (classified to equity including contributed capital (TALC 424)); grants (classified to revenue from current grants and subsidies (ETF 1141, SDC) or revenue from capital grants (ETF 1151, SDC)); concessional loans (classified to advances – concessional loans (TALC 432)); investment for liquidity management and income generation purposes.

A1A.325.

Loans and placements not elsewhere classified (TALC 439) consists of financial instruments that are created when a creditor lends funds directly to a debtor and receives a non-negotiable document as evidence of the asset.

Includes: Overdrafts, mortgage loans; loans to finance trade credit and advances; claims on the IMF in the form of loans.

Excludes: Concessional loans (classified to advances - concessional loans (TALC 432)); trade credit and advances (classified to accounts receivable (TALC 452)); accounts receivable (classified to accounts receivable (TALC 452)); loans that have become negotiable from one holder to another and where there is evidence of secondary market trading (classified to debt securities (TALC 421)); financial assets created by finance leases (classified to finance leases (TALC 431)); loans acquired for policy rather than for liquidity management purposes (classified to advances other than concessional loans (TALC 433)).

A1A.326.

Insurance, superannuation and standardised guarantee schemes (TALC 44) is further classified into;

• non-life insurance technical reserves (TALC 441);
• life insurance and annuities entitlements (TALC 442);
• provisions for defined benefit superannuation (TALC 443);
• claims of superannuation funds on superannuation fund manager (TALC 444); and
• provisions for calls under standardised guarantee (TALC 445).       

A1A.327.

Non-life insurance technical reserves (TALC 441) consists of prepayments of net non-life insurance premiums and reserves to meet outstanding non-life insurance claims.

Includes: Reserves for unexpired risks; equalisation reserves when there is an event that gives rise to a liability.

A1A.328.

Life insurance and annuities entitlements (TALC 442) consists of financial claims policy holders have against an enterprise offering life insurance or providing annuities.

Includes: Liabilities of life insurance companies and annuity providers for prepaid premiums and accrued liabilities to life insurance policy holders and beneficiaries of annuities

A1A.329.

Provisions for defined benefit superannuation (TALC 443) consists of provisions for financial claims that past and current employees hold against either their employer, or a fund designated by the employer, to pay defined benefit superannuation as part of a compensation agreement between the employer and employee. In Australian GFS, only the net liability position for provisions for defined benefit superannuation (TALC 543) is currently shown as any related financial assets have been netted off. This asset category is maintained to align with the international standards and will report a zero balance until specifically earmarked assets can be reported by data providers.

A1A.330.

Claims of superannuation funds on superannuation manager (TALC 444) consists of claims a superannuation fund may have on the superannuation manager to fund a deficit that is the responsibility of the superannuation manager.

A1A.331.

Provisions for calls under standardised guarantee schemes (TALC 445) consists of the expected calls under outstanding guarantees net of any recoveries the guarantor expects to receive from defaulting borrowers.

Includes: Export credit guarantees, deposit guarantees; student loan guarantees.

A1A.332.

Other financial assets (TALC 45) is further classified into:

• provisions for employee entitlements other than superannuation (TALC 451);
• accounts receivable (TALC 452); and
• other financial assets not elsewhere classified (TALC 459).

A1A.333.

Provisions for employee entitlements other than superannuation (TALC 451) consists of funds set aside by an institutional unit to cover employee entitlements other than superannuation. In Australian GFS, only the net liability position for provisions for employee entitlements other than superannuation (TALC 551) is shown as any related financial assets have been netted off. This asset category is maintained to align with the international standards and will report a zero balance until specifically earmarked assets can be reported by data providers.

A1A.334.

Accounts receivable (TALC 452) consists of trade credit, advances and miscellaneous other items due to be received. Accounts receivable are recorded at nominal value.

Includes: Accounts receivable; trade credit extended directly to purchasers of goods and services; advances for work that is in progress or to be undertaken, such as progress payments made during construction in advance for work being done or for prepayments of goods and services; accrued but unpaid taxes; dividends; purchases and sales of securities; rent; wages and salaries; social contributions; social benefits; payments due under financial derivative contracts that are in arrears; payments of amounts that have not yet accrued such as prepayments of taxes; deposits payable in advance to cover breakages or non-payment for the use of goods and services; and bail deposits.

Excludes: Loans (classified to loans and placements (TALC 43)), debt securities (classified to debt securities (TALC 421)); and promissory notes or another type of security issued to consolidate the payment due on several trade credits (classified to debt securities (TALC 421)); deposits held by court or tax authorities pending resolution of a dispute (classified to cash and deposits (TALC 411)).

A1A.335.

Other financial assets not elsewhere classified (TALC 459) consists of financial assets that cannot be classified to currency and deposits (TALC 41), securities and related assets (TALC 42), loans and placements (TALC 43), insurance, superannuation and standardised guarantee schemes (TALC 44), provisions for employee entitlements other than superannuation (TALC 451) or accounts receivable (TALC 452).

A1A.336.

Liabilities (TALC 5) consists of the obligations of one unit (the debtor) to provide funds or other resources to another unit (the creditor), under specific circumstances. Liabilities are normally established through a legally binding contract that specifies the terms and conditions of the payment to be made and payment according to the contract is unconditional. Liabilities can also be created by the force of law and by events that require future transfer payments. Whenever a liability exists, the creditor has a corresponding financial claim on the debtor. A financial claim is an asset that typically entitles the owner of the asset (the creditor) to receive funds or other resources from another unit, under the terms of a liability. This category is further classified into:

• currency and deposits (TALC 51);
• securities and related liabilities (TALC 52);
• loans and placements (TALC 53);
• insurance, superannuation and standardised guarantee schemes (TALC 54); and
• other liabilities (TALC 55).

A1A.337.

Currency and deposits (TALC 51) is further classified into:

• cash and deposits (TALC 511); and
• Special Drawing Rights (SDRs) (TALC 512).

A1A.338.

Cash and deposits (TALC 511) consists of:

• cash in the form of notes and coins that are of fixed nominal values and are issued or authorised by the central bank or government; and
• deposits which refers to all claims on the deposit taking corporations (including the central bank) and in some cases, general government or other institutional units.

Includes: Notes and coins on hand; cheques held but not yet deposited; cash and deposits in both Australian currency and foreign currency; deposits placed in the short-term money market such as grants received from the Commonwealth and deposited overnight; units issued by cash management trusts; withdrawable share capital of building societies; claims on the IMF that are components of international reserves and are not evidenced by loans; repayable margin payments in cash related to financial derivative contracts; unallocated accounts for precious metals (including gold); sight deposits that permit immediate cash withdrawals but not direct third-party transfers; savings and fixed-term deposits; overnight and very short-term repurchase agreements that are included in the national measures of broad money; foreign currency deposits that are blocked because of the rationing of foreign exchange as a matter of national policy.

Excludes: Claims on the IMF that are evidenced by loans (classified to advances other than concessional loans (TALC 533)).

A1A.339.

Special Drawing Rights (SDRs) (TALC 512) consists of international reserve assets created by the International Monetary Fund (IMF) and allocated to its members to supplement reserve assets. The allocation of SDRs is a liability of the member country and interest accrues on this liability. SDR holdings represent each holder’s unconditional right to obtain foreign exchange or other reserve assets from other IMF members.

A1A.340.

Securities and related liabilities (TALC 52) is further classified into:

• debt securities (TALC 521);
• financial derivatives (TALC 522);
• employee stock options (TALC 523);
• equity including contributed capital (TALC 524); and
• investment fund shares or units (TALC 525).

A1A.341.

Debt securities (TALC 521) consists of negotiable financial instruments serving as evidence of a debt.

Includes: Treasury bills; negotiable certificates of deposit; bankers’ acceptances; promissory notes; commercial paper; bonds and debentures; bonds that are convertible into shares; zero-coupon bonds; deep-discount bonds; loans that have become negotiable from one holder to another and where there is evidence of secondary market trading; non-participating preferred stocks or shares; asset-backed securities; collateralised debt obligations; stripped securities; and index-linked securities.

A1A.342.

Financial derivatives (TALC 522) consists of financial instruments that are linked to another specific financial instrument or indicator or commodity, through which specific financial risks, such as interest rate risk, foreign exchange risk, equity and commodity price risks and credit risks, can be traded in their own right in financial markets.

Includes: Options, warrants including detachable warrants, forward-type contracts such as futures, forward rate agreements and forward foreign exchange contracts; swap contracts such as currency swaps, interest rate swaps and cross currency interest rate swaps; credit derivatives such as total return swaps and credit default swaps; non-repayable margin payments; repurchase agreements; securities repurchase agreements which involve the sale of securities for cash, at a specified price, with a commitment to repurchase the same or similar securities at a fixed price either on a specified future data or with an open maturity; securities lending which involves security holders transferring securities to another party, subject to the stipulation that the same or similar securities be returned on a specified date or on demand; gold swaps which involve an exchange of gold for foreign exchange deposits with an agreement that the transaction be reversed at an agreed future date at an agreed gold price; and off-market swaps which involve swap contracts that have a non-zero value at inception as a result of having reference rates priced differently from current market values.

Excludes: Insurance and standardised guarantees (classified to insurance, superannuation and standardised guarantee schemes (TALC 54)); contingent assets such as one-off guarantees (classified to loan and other debt instrument guarantees (ETF 7211) or other one-off guarantees (ETF 7212) and letters of credit (classified to other one-off guarantees (ETF 7212); instruments with embedded derivatives (classified according to the primary characteristics of the instrument); central bank swap arrangements (classified to advances other than concessional loans (TALC 533)); repayable margin payments made in cash (classified to cash and deposits (TALC 511); repayable margin payments made in assets other than cash (not recorded as a transaction or change in stock position because no change in economic ownership has occurred).

A1A.343.

Employee stock options (TALC 523) consists of options to buy the equity of a company, offered to employees of the company as a form of remuneration.

Includes: Stock options provided to suppliers of goods and services.

Excludes: Stock options granted to employees that can be traded on financial markets without restriction (classified to TALC 522 Financial derivatives).

A1A.344.

Equity including contributed capital (TALC 524) consists of all instruments and records that acknowledge claims on the residual value of a corporation or quasi-corporation, after the claims of all creditors have been met. Equity is treated as a liability of the issuing institutional unit (a public corporation or other government unit). it is recorded at market value if listed or set equal to assets less non-equity liabilities if not listed.

Includes: Listed and unlisted shares; stocks; participations; depository receipts which are securities that represent ownership of securities listed in other economies.

A1A.345.

Investment fund shares or units (TALC 525) consists 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). Investment fund shares or units refer to the shares issued by mutual funds and unit trusts, rather than the shares they may hold.

Includes: Money market funds; non-money market funds.

A1A.346.

Loans and placements (TALC 53) is further classified into:

• finance leases (TALC 531);
• advances - concessional loans (TALC 532);
• advances other than concessional loans (TALC 533); and
• loans and placements not elsewhere classified (TALC 539).

A1A.347.

Finance leases (TALC 531) consists of contracts under which the lessor, as legal owner of the asset, conveys substantially all risks and rewards of ownership of the asset to the lessee.

A1A.348.

Advances - concessional loans (TALC 532) consists of loans with concessional interest rates.

A1A.349.

Advances other than concessional loans (TALC 533) consists of loans and other non-equity financial assets received from government authorities for policy rather than for liquidity management purposes. As a general rule, all loans made by general government to other government bodies, except loans made by central borrowing authorities, are deemed to be for policy purposes.

Includes: Long and short-term loans; non-marketable debentures; long and short term promissory agreements (bonds and bills) issued to public sector units for the purposes of achieving government policy objectives.

Excludes: Government equity in public corporations (classified to equity including contributed capital (TALC 524)); grants (classified to revenue from current grants and subsidies (ETF 1141, SDC) or revenue from capital grants (ETF 1151, SDC)); non-repayable funds (classified to revenue from current grants and subsidies (ETF 1141, SDC) or revenue from capital grants (ETF 1151, SDC)); concessional loans (classified to advances – concessional loans (TALC 532)); investment for liquidity management and income generation purposes.

A1A.350.

Loans and placements not elsewhere classified (TALC 539) consists of financial instruments that are created when a creditor lends funds directly to a debtor and receives a non-negotiable document as evidence of the asset.

Includes: Overdrafts, mortgage loans; loans to finance trade credit and advances; claims on the IMF in the form of loans.

Excludes: Concessional loans (classified to advances - concessional loans (TALC 532)); trade credit and advances (classified to accounts payable (TALC 552 )); accounts payable (classified to accounts payable (TALC 552)); loans that have become negotiable from one holder to another and where there is evidence of secondary market trading (classified to debt securities (TALC 521)); financial assets created by finance leases (classified to finance leases (TALC 531)); and loans acquired for policy rather than for liquidity management purposes (classified to advances other than concessional loans (TALC 533)).

A1A.351.

Insurance, superannuation and standardised guarantee schemes (TALC 54) is further classified into:

• non-life insurance technical reserves (TALC 541);
• life insurance and annuities entitlements (TALC 542);
• provisions for defined benefit superannuation (TALC 543);
• claims of superannuation funds on superannuation manager (TALC 544); and
• provisions for calls under standardised guarantee schemes (TALC 545).

A1A.352.

Non-life insurance technical reserves (TALC 541) consists of prepayments of net non-life insurance premiums and reserves to meet outstanding non-life insurance claims.

Includes: Reserves for unexpired risks; equalisation reserves when there is an event that gives rise to a liability.

A1A.353.

Life insurance and annuities entitlements (TALC 542) consists of financial claims policy holders have against an enterprise offering life insurance or providing annuities.

Includes: Liabilities of life insurance companies and annuity providers for prepaid premiums and accrued liabilities to life insurance policy holders and beneficiaries of annuities

A1A.354.

Provisions for defined benefit superannuation (TALC 543) consists of provisions for financial claims that past and current employees hold against either their employer, or a fund designated by the employer, to pay defined benefit superannuation as part of a compensation agreement between the employer and employee

Includes: Liabilities of unfunded superannuation schemes.

Excludes: Liabilities for the payment of social security benefits that were due to be paid but have not yet been paid (classified to accounts payable (TALC 552)).

A1A.355.

Claims of superannuation funds on superannuation manager (TALC 544) consists of claims a superannuation fund may have on the superannuation manager to fund a deficit that is the responsibility of the superannuation manager.

A1A.356.

Provisions for calls under standardised guarantee schemes (TALC 545) consists of the expected calls under outstanding guarantees net of any recoveries the guarantor expects to receive from defaulting borrowers.

Includes: Export credit guarantees, deposit guarantees; student loan guarantees.

A1A.357.

Other liabilities (TALC 55) is further classified into;

• provisions for employee entitlements other than superannuation (TALC 551);
• accounts payable (TALC 552); and
• other liabilities not elsewhere classified (TALC 559).

A1A.358.

Provisions for employee entitlements other than superannuation (TALC 551) consists of claims on an institutional unit to cover employee entitlements other than superannuation. Institutional units incur a liability equal to the present value of the employee entitlements.

Includes: Liabilities for sick leave paid on resignation or retirement; recreation leave; long service leave; workers’ compensation where benefits are paid by an employer not a separate insurer.

A1A.359.

Accounts payable (TALC 552) consists of trade credit, advances and miscellaneous other items due to be paid.

Includes: Accounts payable; trade credit extended directly to purchasers of goods and services; advances for work that is in progress or to be undertaken, such as progress payments made during construction in advance for work being done or for prepayments of goods and services; accrued but unpaid taxes; dividends; purchases and sales of securities; rent; accrued wages and salaries; social contributions; social benefits; payments due under financial derivative contracts that are in arrears; payments of amounts that have not yet accrued such as prepayments of taxes; deposits payable in advance to cover breakages or non-payment for the use of goods and services; bail deposits; social security benefits due for payment but not yet paid; and payments for emissions permits received by government when there is a timing difference between receipt of the payment and the time the corresponding emission occurs.

Excludes: Loans (classified to TALC 53 Loans and placements), debt securities (classified to debt securities (TALC 521)); promissory notes or another type of security issued to consolidate the payment due on several trade credits (classified to debt securities (TALC 521)); deposits held by court or tax authorities pending resolution of a dispute (classified to cash and deposits (TALC 511)).

A1A.360.

This category consists of liabilities that cannot be assigned to TALC 51, TALC 52, TALC 53, TALC 54, TALC 551 and TALC 552.