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

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

3. 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

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

5. 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.

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

7. 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

8. ..\Background documents\Flow chart of accounts.docx

9. Production account Uses Resources Intermediate consumption Output
Value added
Output

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

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

12. 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

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

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

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

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

17. 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

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

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

20. 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.

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