Part D - The valuation of other economic flows
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.