5. The statement of operations
Part A - Introduction
The GFS statement of operations (formerly named the operating statement) forms the second column of the GFS analytical framework (see Diagram 4.1 of this manual). This statement records transactions that increase or decrease net worth such as revenues and expenses, the net acquisition of non-financial assets, the net acquisition of financial assets, and the net incurrence of liabilities during the reporting period. This statement also facilitates the derivation of key GFS analytical aggregates such as the net operating balance and the net lending (+) / net borrowing (-) position.
It is important to note that although it is conceptually correct to include transactions in financial assets and liabilities (ETF 3) as part of the statement of operations, they do not form part of the ABS GFS published statement, The published statement of operations records only transactions that increase and decrease net worth, and ends at the GFS net lending (+) / net borrowing (-) position as illustrated in Diagram 4.1 of this manual. However, transactions in financial assets and liabilities (ETF 3) are reported as part of the statement of operations for international reporting purposes.
This chapter examines the elements that comprise the statement of operations including transactions in revenue and expense, the net acquisition of non-financial assets, the key analytical aggregates, and the broad classification of the statement of operations.