1. Copyright 2010, The World Bank Group. All Rights Reserved. 1 THE BALANCE SHEET GOVERNMENT FINANCE STATISTICS Part 2 This chapter describes the classification of assets and liabilities and defines the various balance sheet memorandum items. It also provides references to texts on compilation of public sector debt tables.

2. Copyright 2010, The World Bank Group. All Rights Reserved. 2 GOVERNMENT FINANCE STATISTICS CLASSIFICATION OF ASSETS AND LIABILITIES At the first level of classification, there are four categories of nonfinancial assets: fixed assets, inventories, valuables, and nonproduced assets. Fixed assets are produced assets that are used repeatedly or continuously in production processes for more than one year. Inventories are goods and services held by producers for sale, use in production, or other use at a later date. Valuables are produced goods of considerable value acquired and held primarily as stores of value. Nonproduced assets consist of tangible, naturally occurring assets, and intangible nonproduced assets.

3. Copyright 2010, The World Bank Group. All Rights Reserved. 3 GOVERNMENT FINANCE STATISTICS CLASSIFICATION OF FIXED ASSETS 611 Fixed assets 6111 Buildings and structures 61111 Dwellings 61112 Nonresidential buildings 61113 Other structures 6112 Machinery and equipment 61121 Transport equipment 61122 Other machinery and equipment 6113 Other fixed assets 61131 Cultivated assets 61132 Intangible fixed assets

4. Copyright 2010, The World Bank Group. All Rights Reserved. 4 GOVERNMENT FINANCE STATISTICS 6111 Buildings and structures 61111 Dwellings 61112 Nonresidential buildings 61113 Other structures CLASSIFICATION OF BUILDINGS AND STRUCTURES

5. Copyright 2010, The World Bank Group. All Rights Reserved. 5 GOVERNMENT FINANCE STATISTICS 6112 Machinery and equipment 61121 Transport equipment 61122 Other machinery and equipment CLASSIFICATION OF MACHINERY AND EQUIPMENT

6. Copyright 2010, The World Bank Group. All Rights Reserved. 6 GOVERNMENT FINANCE STATISTICS 6113 Other fixed assets 61131 Cultivated assets 61132 Intangible fixed assets CLASSIFICATION OF OTHER FIXED ASSETS

7. Copyright 2010, The World Bank Group. All Rights Reserved. 7 GOVERNMENT FINANCE STATISTICS CLASSIFICATION OF INVENTORIES 612 Inventories 6121 Strategic stocks 6122 Other inventories 61221 Materials and supplies 61222 Work in progress 61223 Finished goods 61224 Goods for resale [GFS]

8. Copyright 2010, The World Bank Group. All Rights Reserved. 8 GOVERNMENT FINANCE STATISTICS CLASSIFICATION OF VALUABLES 613 Valuables

9. Copyright 2010, The World Bank Group. All Rights Reserved. 9 GOVERNMENT FINANCE STATISTICS CLASSIFICATION OF NONPRODUCED ASSETS 614 Nonproduced assets 6141 Land 6142 Subsoil assets 6143 Other naturally occurring assets 6144 Intangible nonproduced assets

10. Copyright 2010, The World Bank Group. All Rights Reserved. 10 GOVERNMENT FINANCE STATISTICS CLASSIFICATION OF FINANCIAL ASSETS 62 Financial assets 621 Domestic 6212 Currency and deposits 6213 Securities other than shares 6214 Loans 6215 Shares and other equity 6216 Insurance technical reserves 6217 Financial derivatives 6218 Other accounts receivable 622 Foreign 6222 Currency and deposits 6223 Securities other than shares 6224 Loans 6225 Shares and other equity 6226 Insurance technical reserves 6227 Financial derivatives 6228 Other accounts receivable 623 Monetary gold and SDRs

11. Copyright 2010, The World Bank Group. All Rights Reserved. 11 GOVERNMENT FINANCE STATISTICS FINANCIAL ASSET CATEGORY DESCRIPTION Currency and deposits (6212, 6222, 6312, 6322), Securities other than shares (6213, 6223, 6313, 6323), Loans (6214, 6224, 6314, 6324), Shares and other equity (6215, 6225, 6315, 6325).

12. Copyright 2010, The World Bank Group. All Rights Reserved. 12 GOVERNMENT FINANCE STATISTICS FINANCIAL ASSET CATEGORY DESCRIPTION Insurance technical reserves [GFS] (6216, 6226, 6316, 6326), Financial derivatives (6217, 6227, 6317, 6327), Other accounts receivable/payable (6218, 6228, 6318, 6328), Monetary gold and SDRs (623).

13. Copyright 2010, The World Bank Group. All Rights Reserved. 13 GOVERNMENT FINANCE STATISTICS 63 Liabilities 631 Domestic 6312 Currency and deposits 6313 Securities other than shares 6314 Loans 6315 Shares and other equity (public corporations only) 6316 Insurance technical reserves [GFS] 6317 Financial derivatives 6318 Other accounts payable 632 Foreign 6322 Currency and deposits 6323 Securities other than shares 6324 Loans 6325 Shares and other equity (public corporations only) 6326 Insurance technical reserves [GFS] 6327 Financial derivatives 6328 Other accounts payable CLASSIFICATION OF LIABILITIES

14. Copyright 2010, The World Bank Group. All Rights Reserved. 14 GOVERNMENT FINANCE STATISTICS NET WORTH Net worth is the difference between the total value of all assets and the total value of all liabilities.

15. Copyright 2010, The World Bank Group. All Rights Reserved. 15 GOVERNMENT FINANCE STATISTICS MEMORANDUM ITEMS It may be desirable to record memorandum items to provide supplemental information about items related to, but not included on, the balance sheet: 3M1 Own-account capital formation 3M11 Compensation of employees 3M12 Use of goods and services 3M13 Consumption of fixed capital 3M14 Other taxes on production minus other subsidies on production 6M1 Net financial worth 6M2 Debt (at market value) 6M3 Debt (at nominal value) 6M4 Arrears 6M5 Obligations for security benefits 6M6 Contingent liabilities 6M7 International reserves and foreign currency liquidity 6M8 Uncapitalized military weapons and weapon-delivery systems

16. Copyright 2010, The World Bank Group. All Rights Reserved. 16 GOVERNMENT FINANCE STATISTICS REFERENCES The GFS Yearbook Questionnaire on Draft Nonfinancial Public Sector Debt Tables can be found at: http://www.imf.org/external/pubs/ft/gfs/manual/templ.xls Guidelines for responding to the GFS Questionnaire on Draft Nonfinancial Public Sector Debt Tables can be found at: http://www.imf.org/external/pubs/ft/gfs/manual//guide.pdf