Latest release

Part G - The classification of other economic flows

Australian System of Government Finance Statistics: Concepts, Sources and Methods
Reference period
2015
Released
23/12/2015
Next release Unknown
First release

11.29.

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). 

Table 11.2 - The broad classification of other economic flows of assets and liabilities
DescriptorETF
Other economic flows of assets and liabilities5
Holding gains and losses (revaluations)51
Holding gains and losses (revaluations)511
Holding gains and losses on financial assets5111
Holding gains and losses on non-financial assets5112
Holding gains and losses on liabilities5113
Change in net worth due to holding gains and losses512
Change in net worth due to holding gains and losses5121
Other changes in volume52
Other changes in volume521
Other changes in the volume of financial assets5211
Other changes in the volume of non-financial assets5212
Other changes in the volume of liabilities5213
Change in net worth due to other changes in volume522
Change in net worth due to other changes in volume5221

 

11.30.

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.

11.31.

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.

Descriptor

 

Holding gains and losses (revaluations)

Other changes in volume

Other economic flows of assets and liabilities

 ETF 5

 ETF 5

Financial assets

 ETF 5111
 TALC 4

ETF 5211
TALC 4

Currency and deposits

ETF 5111
TALC 41

ETF 5211
TALC 41

Cash and deposits

 ETF 5111
TALC 411

 ETF 5211
TALC 411

Special Drawing Rights (SDRs)

 ETF 5111
TALC 412

 ETF 5211
TALC 412

Monetary gold (bullion)

 ETF 5111
TALC 413

 ETF 5211
TALC 413

Monetary gold (allocated and unallocated)

 ETF 5111
TALC 414

 ETF 5211
TALC 414

Debt securities and related assets

 ETF 5111
TALC 42

 ETF 5211
TALC 42

Debt securities

 ETF 5111
TALC 421

 ETF 5211
TALC 421

Financial derivatives

 ETF 5111
TALC 422

 ETF 5211
TALC 422

Employee stock options

 ETF 5111
TALC 423

 ETF 5211
TALC 423

Equity including contributed capital

 ETF 5111
TALC 424

 ETF 5211
TALC 424

Investment fund shares or units

 ETF 5111
TALC 425

 ETF 5211
TALC 425

Loans and placements

 ETF 5111
TALC 43

 ETF 5211
TALC 43

Finance leases

 ETF 5111
TALC 431

 ETF 5211
TALC 431

Advances - concessional loans

 ETF 5111
TALC 432

 ETF 5211
TALC 432

Advances other than concessional loans

 ETF 5111
TALC 433

 ETF 5211
TALC 433

Loans and placements not elsewhere classified

 ETF 5111
TALC 439

 ETF 5211
TALC 439

Insurance, superannuation and standardised guarantee schemes

 ETF 5111
TALC 44

 ETF 5211
TALC 44

Non-life insurance technical reserves

 ETF 5111
TALC 441

 ETF 5211
TALC 441

Life insurance and annuities entitlements

 ETF 5111
TALC 442

 ETF 5211
TALC 442

Provisions for defined benefit superannuation

 ETF 5111
TALC 443

 ETF 5211
TALC 443

Claims of superannuation funds on superannuation manager

 ETF 5111
TALC 444

 ETF 5211
TALC 444

Provisions for calls under standardised guarantee schemes

 ETF 5111
TALC 445

 ETF 5211
TALC 445

Other financial assets

 ETF 5111
TALC 45

 ETF 5211
TALC 45

Provisions for employee entitlements other than superannuation

 ETF 5111
TALC 451

 ETF 5211
TALC 451

Accounts receivable

 ETF 5111
TALC 452

 ETF 5211
TALC 452

Other financial assets not elsewhere classified

 ETF 5111
TALC 459

 ETF 5211
TALC 459

Fixed produced assets

 ETF 5112
TALC 1
TALC 2
TALC 3

 ETF 5212
TALC 1
TALC 2
TALC 3

Fixed produced assets

 ETF 5112
TALC 1

 ETF 5212
TALC 1

Buildings and structures

 ETF 5112
TALC 11

 ETF 5212
TALC 11

Dwellings

 ETF 5112
TALC 111

 ETF 5212
TALC 111

Buildings other than dwellings

 ETF 5112
TALC 112

 ETF 5212
TALC 112

Land improvements

 ETF 5112
TALC 113

 ETF 5212
TALC 113

Structures not elsewhere classified

 ETF 5112
TALC 119

 ETF 5212
TALC 119

Machinery and equipment

 ETF 5112
TALC 12

 ETF 5212
 TALC 12

Transport equipment

 ETF 5112
TALC 121

 ETF 5212
TALC 121

Information, computer, and telecommunications equipment

 ETF 5112
TALC 122

 ETF 5212
TALC 122

Machinery and equipment not elsewhere classified

 ETF 5112
TALC 129

 ETF 5212
TALC 129

Cultivated biological resources

 ETF 5112
TALC 13

 ETF 5212
TALC 13

Animal resources yielding repeat products

 ETF 5112
TALC 131

 ETF 5212
TALC 131

Tree, crop, and plant resources yielding repeat products

 ETF 5112
TALC 132

 ETF 5212
TALC 132

Intellectual property products

 ETF 5112
TALC 14

 ETF 5212
TALC 14

Research and development

 ETF 5112
TALC 141

 ETF 5212
TALC 141

Mineral exploration and evaluation

 ETF 5112
TALC 142

 ETF 5212
TALC 142

Computer software

 ETF 5112
TALC 143

 ETF 5212
TALC 143

Databases

 ETF 5112
TALC 144

 ETF 5212
TALC 144

Entertainment, literary, and artistic originals

 ETF 5112
TALC 145

 ETF 5212
TALC 145

Intellectual property products not elsewhere classified

 ETF 5112
TALC 149

 ETF 5212
TALC 149

Weapons systems

 ETF 5112
TALC 15

 ETF 5212
TALC 15

Weapons systems

 ETF 5112
TALC 151

 ETF 5212
TALC 151

Other produced assets

 ETF 5112
TALC 2

 ETF 5212
TALC 2

Inventories

 ETF 5112
TALC 21

 ETF 5212
TALC 21

Inventories - materials and supplies

 ETF 5112
TALC 211

 ETF 5212
TALC 211

Inventories - work in progress

 ETF 5112
TALC 212

 ETF 5212
TALC 212

Inventories - finished goods

 ETF 5112
TALC 213

 ETF 5212
TALC 213

Inventories - goods for resale

 ETF 5112
TALC 214

 ETF 5212
TALC 214

Military inventories

 ETF 5112
TALC 215

 ETF 5212
TALC 215

Valuables

 ETF 5112
TALC 22

 ETF 5212
TALC 22

Valuables

 ETF 5112
TALC 221

 ETF 5212
TALC 221

Other produced assets

 ETF 5112
TALC 23

 ETF 5212
TALC 23

Other produced assets not elsewhere classified

 ETF 5112
TALC 239

 ETF 5212
TALC 239

Non-produced assets

 ETF 5112
TALC 3

 ETF 5212
TALC 3

Tangible non-produced assets

 ETF 5112
TALC 31

 ETF 5212
TALC 31

Land

 ETF 5112
TALC 311

 ETF 5212
TALC 311

Mineral and energy resources

 ETF 5112
TALC 312

 ETF 5212
TALC 312

Non-cultivated biological resources

 ETF 5112
TALC 313

 ETF 5212
TALC 313

Water resources

 ETF 5112
TALC 314

 ETF 5212
TALC 314

Radio spectra

 ETF 5112
TALC 315

 ETF 5212
TALC 315

Tangible non-produced assets not elsewhere classified

 ETF 5112
TALC 319

 ETF 5212
TALC 319

Intangible non-produced assets

 ETF 5112
TALC 32

 ETF 5212
TALC 32

Marketable operating leases

 ETF 5112
TALC 321

 ETF 5212
TALC 321

Permits to use natural resources

 ETF 5112
TALC 322

 ETF 5212
TALC 322

Permits to undertake specific activities

 ETF 5112
TALC 323

 ETF 5212
TALC 323

Entitlement to future goods and services on an exclusive basis

 ETF 5112
TALC 324

 ETF 5212
TALC 324

Goodwill and marketing assets

 ETF 5112
TALC 325

 ETF 5212
TALC 325

Intangible non-produced assets not elsewhere classified

 ETF 5112
TALC 329

 ETF 5212
TALC 329

Other non-produced assets

 ETF 5112
TALC 33

 ETF 5212
TALC 33

Other non-produced assets not elsewhere classified

 ETF 5112
TALC 339

 ETF 5212
TALC 339

Liabilities

 ETF 5113
TALC 5

 ETF 5213
TALC 5

Currency and deposits

 ETF 5113
TALC 51

 ETF 5213
TALC 51

Cash and deposits

 ETF 5113
TALC 511

 ETF 5213
TALC 511

Special Drawing Rights (SDRs)

 ETF 5113
TALC 512

 ETF 5213
TALC 512

Debt securities and related liabilities

 ETF 5113
TALC 52

 ETF 5213
TALC 52

Debt securities

 ETF 5113
TALC 521

 ETF 5213
TALC 521

Financial derivatives

 ETF 5113
TALC 522

 ETF 5213
TALC 522

Employee stock options

 ETF 5113
TALC 523

 ETF 5213
TALC 523

Equity including contributed capital

 ETF 5113
TALC 524

 ETF 5213
TALC 524

Investment fund shares or units

 ETF 5113
TALC 525

 ETF 5213
TALC 525

Loans and placements

 ETF 5113
TALC 53

 ETF 5213

TALC 53

Finance leases

 ETF 5113
TALC 531

 ETF 5213
TALC 531

Advances - concessional loans

 ETF 5113
TALC 532

 ETF 5213
TALC 532

Advances other than concessional loans

 ETF 5113
TALC 533

 ETF 5213
TALC 533

Loans and placements not elsewhere classified

 ETF 5113
TALC 539

 ETF 5213
TALC 539

Insurance, superannuation and standardised guarantee schemes

 ETF 5113
TALC 54

 ETF 5213
TALC 54

Non-life insurance technical reserves

 ETF 5113
TALC 541

 ETF 5213
TALC 541

Life insurance and annuities entitlements

 ETF 5113
TALC 542

 ETF 5213
TALC 542

Provisions for defined benefit superannuation

 ETF 5113
TALC 543

 ETF 5213
TALC 543

Claims of superannuation funds on superannuation manager

 ETF 5113
TALC 544

 ETF 5213
TALC 544

Provisions for calls under standardised guarantee schemes

 ETF 5113
TALC 545

 ETF 5213
TALC 545

Other liabilities

 ETF 5113
TALC 55

 ETF 5213
TALC 55

Provisions for employee entitlements other than superannuation

 ETF 5113
TALC 551

 ETF 5213
TALC 551

Accounts payable

 ETF 5113
TALC 552

 ETF 5213
TALC 552

Other liabilities not elsewhere classified

 ETF 5113
TALC 559

 ETF 5213
TALC 559

CHANGE IN NET WORTH (due to revaluations and due to other volume changes)

 ETF 512

 ETF 522

Change in net worth (due to revaluations and due to other volume changes)

 ETF 5121

 ETF 5221

11.32.

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)

11.33.

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)

11.34.

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)

11.35.

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)

11.36.

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)

11.37.

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)

11.38.

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)

11.39.

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)

11.40.

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.

11.41.

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)

11.42.

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)

11.43.

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)

11.44.

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)

11.45.

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)

11.46.

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)

11.47.

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)

11.48.

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)

11.49.

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)

11.50.

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)

11.51.

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)

11.52.

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)

11.53.

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)

11.54.

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.

11.55.

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.

11.56.

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.

11.57.

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)

11.58.

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)

11.59.

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)

11.60.

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)

11.61.

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.

11.62.

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)

11.63.

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)

11.64.

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.

The classification of holding gains and losses on non-financial assets

11.65.

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)

11.66.

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.

11.67.

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.

11.68.

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)

11.69.

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)

11.70.

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)

11.71.

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)

11.72.

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)

11.73.

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)

11.74.

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)

11.75.

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)

11.76.

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)

11.77.

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)

11.78.

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)

11.79.

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)

11.80.

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)

11.81.

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)

11.82.

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)

11.83.

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)

11.84.

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)

11.85.

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)

11.86.

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)

11.87.

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 (ETF 5112, TALC 15 and TALC 151)

11.88.

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)

11.89.

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)

11.90.

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.

11.91.

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)

11.92.

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)

11.93.

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)

11.94.

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)

11.95.

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)

11.96.

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 221)

11.97.

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)

11.98.

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)

11.99

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)

11.100.

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)

11.101.

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)

11.102.

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)

11.103.

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)

11.104.

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)

11.105.

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)

11.106

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)

11.107.

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)

11.108.

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)

11.109.

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)

11.110.

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)

11.111.

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)

11.112.

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)

11.113.

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)

11.114.

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)

11.115.

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.