1. UNSIAP1 Overview of System of National Accounts (SNA) 2008 Revision (1) & updates on 1993 System of National Accounts UN Statistical Institute for Asia and the Pacific

2. UNSIAP2Background In 2003, the UN statistical commission called for an update of the SNA 1993 In 2003, the UN statistical commission called for an update of the SNA 1993 Objectives: Objectives: Bring the accounts in line with the new economic environment, advances in methodological research, and needs of users Bring the accounts in line with the new economic environment, advances in methodological research, and needs of users Features: Features: No fundamental or comprehensive changes to SNA93 No fundamental or comprehensive changes to SNA93 Consistency with related manuals such as Balance of Payments Consistency with related manuals such as Balance of Payments Involved all parts of SNA Involved all parts of SNA

3. UNSIAP3 Revision-1 update resources http://unstats.un.org/unsd/nationalaccoun t/aeg.asp#aeg5 http://unstats.un.org/unsd/nationalaccoun t/aeg.asp#aeg5 http://unstats.un.org/unsd/nationalaccoun t/aeg.asp#aeg5 http://unstats.un.org/unsd/nationalaccoun t/aeg.asp#aeg5 Work Groups: Work Groups: Inter-secretariat Working Group on National Accounts (ISWGNA) Inter-secretariat Working Group on National Accounts (ISWGNA) Eurostat, IMF, OECD, UN and World Bank Eurostat, IMF, OECD, UN and World Bank Advisory expert group (AEG) Advisory expert group (AEG) Including 20 country experts Including 20 country experts

4. UNSIAP4 Issues identified.. A list of substantive 44 update issues A list of substantive 44 update issues Consolidates recommendations Consolidates recommendations 39 clarifications 39 clarifications Two volumes of SNA Two volumes of SNA Volume 1 - published Volume 1 - published Volume 2 – in 2009 Volume 2 – in 2009

5. UNSIAP5 list of chapters

6. UNSIAP6 list of chapters

7. UNSIAP7 Full list of issues

8. UNSIAP8

9. 9 List of issues by groups

10. UNSIAP10 List of issues by groups

11. UNSIAP11 List of issues by groups

12. UNSIAP12 List of issues by groups

13. UNSIAP13 List of issues by groups

14. UNSIAP14 List of issues by groups

15. UNSIAP15 Main recommendations Pension schemes How to include in national accounts..? How to include in national accounts..? Actual amount paid vs. formula based Actual amount paid vs. formula based Unfunded government employer schemes Unfunded government employer schemesRecommendation; Provide a table showing pension entitlement of households for all pension schemes Provide a table showing pension entitlement of households for all pension schemes Irrespective of the application in different countries of the flexibility for recording government pension schemes Irrespective of the application in different countries of the flexibility for recording government pension schemes

16. UNSIAP16 Main recommendations Cost of capital service Capital services for assets used in market production are not separately identified in SNA93 Capital services for assets used in market production are not separately identified in SNA93Recommendation: A new chapter added explaining the role and appearance of capital services in the system A new chapter added explaining the role and appearance of capital services in the system Including in the value of government output a return to capital on non-financial assets used in non market production Including in the value of government output a return to capital on non-financial assets used in non market production

17. UNSIAP17 Main recommendations Research and Development R&D expenditure not recognized as capital formation in SNA93 R&D expenditure not recognized as capital formation in SNA93Recommendation: R&D should be treated as capital formation and the value should be determined by the economic benefits it provides. R&D should be treated as capital formation and the value should be determined by the economic benefits it provides. Some instances treated as intermediate consumption (..if no economic benefit to owner) Some instances treated as intermediate consumption (..if no economic benefit to owner) May be valued at the sum of costs. May be valued at the sum of costs.

18. UNSIAP18 Main recommendations Military expenditure SNA93 distinguishes some military acquisition (offensive) as intermediate consumption SNA93 distinguishes some military acquisition (offensive) as intermediate consumptionRecommendation: Considering that destructive weapons have characteristics of investment, Considering that destructive weapons have characteristics of investment, Treat as capital formation all expenditure by military which meets the definition of being used in production over a period of one year, regardless of the nature of the expenditure or the purpose intended for it. Treat as capital formation all expenditure by military which meets the definition of being used in production over a period of one year, regardless of the nature of the expenditure or the purpose intended for it.

19. UNSIAP19 Main recommendations Goods for processing Exporting for processing and importing back, SNA93 recorded full values twice Exporting for processing and importing back, SNA93 recorded full values twiceRecommendation: Recording should follow change of ownership rather than physical movement Recording should follow change of ownership rather than physical movement Net figures for processing will be substituted to gross figures of exports for processing and the subsequent re-import or vise-versa. Net figures for processing will be substituted to gross figures of exports for processing and the subsequent re-import or vise-versa.

20. UNSIAP20 Some examples of other important recommendations Employee stock options (shares) Employee stock options (shares) guidance provided to permit further harmonization with international business accounting standards guidance provided to permit further harmonization with international business accounting standards Non-life insurance Non-life insurance The calculation of the output is reconsidered to avoid its volatility The calculation of the output is reconsidered to avoid its volatility Contracts, leases and licenses Contracts, leases and licenses Updated SNA sets out the principles of the appropriate treatments corresponding to the different possible arrangements Updated SNA sets out the principles of the appropriate treatments corresponding to the different possible arrangements

21. UNSIAP21 Some examples of other important recommendations Borderline between withdrawal of owner’s equity and dividends; concept of “super dividends” Borderline between withdrawal of owner’s equity and dividends; concept of “super dividends” Exceptional payments between government and public corporations and quasi-corporations: the treatment has been redefined Exceptional payments between government and public corporations and quasi-corporations: the treatment has been redefined