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Non-produced assets (TALC 3)

Australian System of Government Finance Statistics: Concepts, Sources and Methods
Reference period
2015
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).

Tangible non-produced assets (TALC 31)

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.

Land (TALC 311)

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)).

Mineral and energy resources (TALC 312)

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)).

Non-cultivated biological resources (TALC 313)

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)).

Water resources (TALC 314)

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.

Radio spectra (TALC 315)

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.

Tangible non-produced assets not elsewhere classified (TALC 319)

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).

Intangible non-produced assets (TALC 32)

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).

Marketable operating leases (TALC 321)

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.

Permits to use natural resources (TALC 322)

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.

Permits to undertake specific activities (TALC 323)

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.

Entitlement to future goods and services on an exclusive basis (TALC 324)

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.

Goodwill and marketing assets (TALC 325)

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.

Intangible non-produced assets not elsewhere classified (TALC 329)

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).

Other non-produced assets (TALC 33)

A1A.307.

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

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

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).