Institutional sector accounts THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION

Institutional sector accounts Domestic sectors (ESA 2010 1.57) S.11 Non-financial corporations; S.12 Financial corporartions S.13 General government; S.14 Households S.15 Non-profit institutions serving households.

Institutional sector accounts Sector accounts are created by allocating units to sectors and this enables transactions and balancing items of the accounts to be presented by sector. The presentation by sector reveals key measures for economic and fiscal policy purposes. Examples

Examples of sector measures Corporations – value added, capital formation Government – deficit and debt measures Households – Savings ratio

Institutional sector accounts The five sectors make up the total domestic economy. In addition, the ‘rest of the world’ is treated as a sector. Each sector can be divided into subsectors.

Production Generation of income Allocation of income Secondary distribution of income Use of income Capital formation Financing

Institutional sector accounts The accounts are grouped in three categories: current accounts cover production and the associated generation, allocation and redistribution of income and its use in the form of final consumption (b) accumulation accounts; These are the capital accounts (investment) and the financial accounts (borrowing and lending) (c) balance sheets: stock levels of real and financial assets, and the reconciliation of opening positions with end-of-period position

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Production account Uses Resources Intermediate consumption Output Value added Output

Generation of income account Uses Resources Compensation of employees Operating surplus Value added

Allocation of primary income account Uses Resources Property income paid Balance of primary incomes Operating surplus Compensation of employees Property income received

Secondary distribution of income account Uses Resources Balance of primary incomes Social benefits, taxes Other current transfers Social benefits, taxes Other current transfers Disposable income

Use of income account Uses Resources Disposable income Final consumption (HH and government) saving Disposable income

Capital account Uses Resources Saving Capital transfers received Capital transfers paid Capital formation Net lending or financial surplus (+) / net borrowing or financial deficit (-)

Financial account Lending Borrowing Net lending(+)/net borrowing (-) Loans incurred Share issues Loans given New shares purchased

Balance sheet (opening) Assets Liabilities Fixed assets Inventories Valuables Currency Shares held Loans held Currency Shares issued Loans incurred Net worth = assets - liabilities

Other changes in volume account Changes in assets Changes in liabilities Economic appearance Catastrophic losses Uncompensated seizures Classification changes Economic appearance Catastrophic losses Uncompensated seizures Classification changes

Revaluation account Changes in assets Changes in liabilities Nominal gains of which Neutral gains Real gains Nominal gains of which Neutral gains Real gains

Balance sheet (closing) Assets Liabilities Fixed assets Inventories Valuables Currency Shares held Loans held Currency Shares issued Loans incurred Net worth = assets - liabilities

Institutional sector accounts Financial transactions (F) F1 Monetary gold and SDRs; F2 Currency and deposits; F3 Debt securities; F4 Loans; F5 Equity and investment fund shares; F6 Insurance, pension and standardised guarantee schemes; F7 Financial derivatives and employee stock options; F8 Other accounts receivable/payable.

Thank you for your attention CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION