Stocks

3.26    Stocks are a position in, or holdings of, assets and liabilities at a point in time. Stocks are usually recorded at the beginning and end of each accounting period. The values of stocks of assets and liabilities are shown in the balance sheets of the system. Stocks are connected with the flows in that changes in their levels result from the accumulation of transactions and other flows over the accounting period in question. In the ASNA, closing balance sheet levels could be viewed as being obtained by the addition to the opening balance sheet levels of net capital formation, financial transactions, other changes in the volume of assets, and revaluations of assets and liabilities. However, in practice the balance sheet values for many components of financial assets and liabilities are obtained directly from survey data.

3.27    Values are recorded for non-financial assets, both produced and non-produced, and for financial assets and liabilities. The coverage of assets is limited to those assets used in economic activity and that are subject to ownership rights. Thus, stocks are not recorded for assets such as human capital and natural resources over which ownership rights cannot be enforced.

3.28    In order to discuss stocks, it is necessary to define assets and liabilities and these definitions depend crucially on the concepts of benefits and ownership. This is described as the asset boundary.