CHAPTER 15
CONTRACTS, LEASES AND LICENCES
INTRODUCTION
15.01
Contracts are agreements on the terms under which goods, services and assets are provided to the customer. Contracts representing
straightforward sales of goods, services or assets determine the value, and time of recording, of the transaction, which in the case of goods is the change
of ownership. The difference between the time of payment and time of recording is reflected in entries recorded as other accounts receivable or payable in
the financial account.
15.02
Leases, licences and permits are contracts which determine the classification of payments and the economic ownership of assets; some of
the contracts are a separate type of non-financial asset.
15.03
In this Chapter, the recording of various groups of complex contracts and their underlying flows and stocks are discussed in seven
sections:
- the distinction between operating leases, resource leases and financial leases;
- permits to use a natural resource;
- permits to undertake specific activities;
- public-private partnerships;
- service concession contracts;
- marketable operating leases;
- entitlements to future goods and services on an exclusive basis.
THE DISTINCTION BETWEEN OPERATING LEASES, RESOURCE LEASES AND FINANCIAL LEASES
15.04
Three types of leases of non-financial
assets
are distinguished (see Table 15.1):
Each of these leases relates to the use of a non-financial asset:
- in the case of operating leases and resource leases, there is no change of economic ownership and the legal owner continues to be the economic owner. Resource leases are used for natural resources, such as land and radio spectra. Operating leases are used for all other non-financial assets,
- in the case of financial leases, there is a change of economic ownership of the asset, and the legal owner of the asset is not considered to be the economic owner. Financial leases can apply to all non-financial assets, including in some situations natural resources.
15.05
Every entity such as a good and service, a natural resource, a
financial asset
or liability has both a
legal owner
and an
economic owner. In many cases the economic and legal owners are the same. Where they are not, the legal owner has handed responsibility for the risk involved in using
the entity in an economic activity to the economic owner along with the associated benefits. In return the legal owner accepts from the economic owner
payments for another package of risks and benefits.
Table 15.1 - The recording of three different types of lease
|
Type of lease |
Method of recording for the user |
|---|---|
|
Operating lease (not for natural resources) |
The user is not the economic owner of the non-financial asset The rentals are recorded as payments for a service, intermediate consumption or final consumption expenditure by general government, households and NPISHs |
|
Resource lease (only for natural resources) |
The user is not the economic owner of the natural resource. Payments are rents (property income) |
|
Financial lease |
The user is the economic owner of a non-financial asset, financed by a loan from the lessor. The payments are for the most part re-payment of principal and payments of interest on the loan. Part of the interest payments may be recorded as FISIM when the lender is a financial intermediary. This payment is classified as intermediate consumption or final consumption expenditure by general government, households and NPISHs |
Table 15.2 - The recording of three different types of lease, by type of transaction
|
Type of transaction |
Type of use, and asset involved |
|---|---|
|
Intermediate consumption |
Operating lease of produced assets, for example machines and intellectual property rights FISIM services on a financial lease |
|
Consumption of fixed capital |
Only for produced assets, and only for the economic owner |
|
Final consumption expenditure |
Operating lease of consumer durables Purchase of consumer durables (including when financed by a financial lease or hire purchase) FISIM services on a financial lease to final consumers |
|
Purchase of non-financial assets |
N.A. |
|
Fixed capital formation |
Purchase of produced assets (including when financed by a financial lease) |
|
Acquisition of natural resources |
Purchase of natural resources, including the right to use to extinction |
|
Acquisition of other non-produced assets |
Purchase of the right to use a natural resource for an extended period, for example a fishing quota |
|
Property income payments |
N.A. |
|
Rent |
Resource lease, i.e. payment for the use of a natural resource |
|
Interest |
Financial lease, i.e. purchase of a non-financial asset financed simultaneously by a loan |
|
Financial transaction: loan |
Financial lease, i.e. purchase of a non-financial asset financed simultaneously by a loan |
15.06
Definition: the economic owner of entities such as a good and service, a natural resource, a financial asset or liability is the institutional unit entitled to claim
the benefits associated with the use of the entity in the course of an economic activity by virtue of accepting the associated risks.
15.07
Definition: the legal owner of entities such as a good and service, a natural resource, a financial asset or liability is the institutional unit entitled in law and
sustainable under the law to claim the benefits associated with the entities.
Operating leases
15.08
Definition: an operating lease is a lease whereby the legal owner is also the economic owner and accepts the operating risks and receives the economic benefits from
the asset by charging for the use of it, in a productive activity.
15.09
One indicator of an operating lease is that it is the responsibility of the
legal owner
to provide for repair and maintenance of the asset.
15.10
Under an operating lease the
asset
remains on the balance sheet of the lessor.
15.11
The payments made for produced assets under an operating lease are referred to as rentals and are recorded as payments for a service
(see Table 15.2). The character of an operating lease is best described in relation to equipment since operating leases are often for vehicles, cranes,
drills, etc. However, any sort of non-financial asset may be subject to an operating lease. The service provided by the lessor goes beyond the mere
provision of the asset. It includes other elements such as convenience and security. In the case of equipment, the lessor, or owner of the equipment,
normally maintains a stock of equipment in good working order that can be hired on demand or at short notice. The lessor must normally be a specialist in
the operation of the equipment. This is important in the case of highly complicated equipment, such as computers, where the lessee may not have the
necessary expertise or facilities to service the equipment properly. The lessor may also undertake to replace the equipment in the event of a serious or
prolonged breakdown. In the case of a building, the lessor is responsible for the structural integrity of the building and for replacement in the case of
damage due to a natural disaster, for example, and is usually responsible for ensuring that elevators, heating and ventilation systems
function adequately.
15.12
Operating leasing developed originally to meet the needs of users who require certain types of equipment only at regular intervals. Many
operating leases are for short periods though the lessee may renew the lease when the period expires and the same user may use the same piece of equipment
on several occasions. However, with the evolution of increasingly complicated types of machinery, especially in the electronics field, the servicing and
back-up facilities provided by a lessor are important factors that may influence a user to lease rather than purchase. Other factors that may persuade users
to lease over long periods rather than purchase are the consequences for the enterprise's balance sheet, cash flow or tax liability.
Financial leases
15.13
Definition: a financial lease is one where the lessor is the legal owner of an asset but the lessee is the economic owner as the latter bears the operating risks and
receives the economic benefits from using the asset in a productive activity. In return, the lessor accepts another package of risks and rewards from the
lessee, in the form of repayments associated with a loan. It is frequently the case that the lessor, though the legal owner of the asset, never takes
physical delivery of the asset but consents to its delivery directly to the lessee. One indicator of a financial lease is that it is the responsibility of
the economic owner to provide any necessary repair and maintenance of the asset.
15.14
Under a financial lease, the
legal owner
is shown as issuing a loan to the lessee, which the lessee uses to acquire the
asset. Thereafter the asset is shown on the balance sheet of the lessee and not the lessor; the corresponding loan is shown as an asset of the lessor and a
liability of the lessee. Payments under a financial lease are treated not as rentals but as the payment of
interest
and repayment of principal on the imputed loan. If the lessor is a financial intermediary, part of the payment is also treated as a service charge
(FISIM).
15.15
Very often the nature of the
asset
subject to a
financial lease
may be quite distinct from the assets used by the lessor in his productive activity, for example a commercial airliner legally owned by a bank but leased to
an airline. It makes no economic sense to record either the aircraft or its
consumption of fixed capital
in the accounts of the bank or to omit them from the accounts of the airline. The device of a financial lease avoids this undesirable form of recording the
ownership of the aircraft and the decline in its value while keeping the net worth of both parties correct throughout the length of the lease.
15.16
It is common for a
financial lease
period to be for the whole of the economic life of the
asset. When this occurs, the value of the imputed loan corresponds to the present value of the payments to be made under the lease agreement. This value will
cover the cost of the asset and usually also include a fee charged by the lessor, which is accrued over the period of the lease. Payments made regularly to
the lessor can be recorded as four components:
interest
payments, repayments of principal on the imputed loan, the lessor fee, and FISIM (if the lessor is a financial intermediary). If the terms of the agreement
do not specify how the first three elements are identified, the repayment of principal must correspond to the decline in the value of the asset (the
consumption of fixed capital), the
interest
payable must correspond to the return to capital on the asset and the service charge to the difference between the total amount payable and those two
elements.
15.17
A
financial lease
may also exist when the lease period is less than the economic life of the
asset. In this case, the value of the imputed loan again covers the cost of the asset and the fee charged by the lessor plus the value of the service charges to
be made under the terms of the lease. Payments made regularly to the lessor shall be recorded as
interest
payments and repayments of principal on the imputed loan, the lessor fee, and for FISIM (if the lessor is a financial intermediary). It may also include
pre-payments funding the repurchase of the asset at the end of the lease period. At the end of the lease, the asset may transfer to the balance sheet of the
lessee, depending upon the contractual arrangements. The value of the residual amounts outstanding on the loan will be equal to the expected market value of
the asset at the end of the lease period as determined at the start of the lease. At this point, the asset could be returned to the lessor, an option
invoked for the lessee to legally acquire the asset, or a new lease arrangement set up.
A financial lease requires the lessee to bear the risks and rewards associated with using the asset. Therefore, any holding gains and
losses on the expected value of the asset at the end of the lease period shall be borne by the lessee. In this case, where the asset is legally acquired by
the lessee at the end of the lease period, then the cash payments are recorded as the repayment of the loan since the asset is already on the balance sheet
of the lessee.
If the asset reverts to the lessor, then a transaction representing the purchase of the asset is recorded at the current
market value of the asset. The proceeds are used to repay the amount outstanding on the loan and any difference between those amounts is recorded as a
capital transfer. The payments over the lease period will often include pre-payments of the acquisition of the asset so that the transaction occurs for no
cash consideration, since the loan is fully repaid at this time.
If a further lease period is negotiated, then the new contract needs to be analysed to see whether it is a continuation of a financial
lease or an
operating lease.
15.18
Although a
financial lease
will typically be for several years, the duration of the lease does not determine whether the lease is to be regarded as an operating or financial lease. In
some cases the
asset
may be leased for a short period, perhaps only one year at a time, but the contract includes the condition that the lessee takes all responsibility for the
asset, including all maintenance and cover for exceptional damage. Even though the lease period is short, and even though the lessor may not be a financial
institution, if the lessee accepts the majority of the risks associated with the use of the asset in
production
as well as the rewards, the lease is recorded as a financial and not an
operating lease. However, in practice, it is difficult to deviate from the recording in the business accounts, which follows international business accounting standards,
where financial leases are limited to leases covering the major part of the economic life time of the asset.
15.19
Any corporation that specialises in financial leasing, even if called a property company or aircraft leasing company, shall be
classified as a financial intermediary offering
loans
to the units leasing assets from them. If the lessor is not a financial intermediary, the payments associated with the imputed loan are split into
repayments of principal and
interest
only; if the lessor is a financial corporation, a further component representing the service charge (FISIM) is included.
15.20
Hire purchase
is a type of financial leasing.
Definition: a hire purchase arrangement exists when a durable good is sold to a purchaser in return for agreed future payments. The buyer takes possession of the
good immediately, though legally it remains the property of the lessor as collateral/guarantee until all agreed payments have been made by the
lessee.
15.21
Hire purchase is usually restricted to
consumer durables, and most purchasers are in the
households sector. Financiers of hire purchase contracts typically are separate
institutional units
operating in close cooperation with sellers of durable goods
15.22
In the case of
hire purchase, the durable good is recorded as if acquired by the purchaser on the day they take possession of the
asset
at the market price that would have been realised in an equivalent transaction. The purchaser receives an imputed loan of equivalent value. The payments
from purchaser to financier are recorded as repayments of principal and
interest
payments, using the same method as the one applied for financial leasing. The productive activity carried out by financiers of hire purchase contracts is
financial intermediation. As they do not usually charge directly for their services, their entire
output
are FISIM, calculated as
property income
receivable less
interest
payable. As in the case of conventional financial leasing, the amount of interest payable may be difficult to observe and must therefore be estimated.
Resource leases
[]
See BPM6 paragraph 11.85-11.90
Balance of Payments and International Investment Position Manual
See BPM6 paragraph 11.85-11.90
Balance of Payments and International Investment Position Manual
15.23
Definition: a resource lease is one where the owner of a natural resource makes it available to a lessee in return for a payment recorded as rent.
15.24
In a resource lease, the resource asset remains on the balance sheet of the lessor even though it is used by the lessee. Any decline in
value of a natural resource is recorded as an economic disappearance of
non-produced assets
(under K.21, 'depletion of natural resources'). It is not recorded as a transaction similar to
consumption of fixed capital, as there is no fixed capital to consume. Payables due under a resource lease, and only such payables, are recorded as
rent.
15.25
The classic case of an
asset
subject to a resource lease is land. However, the use of other natural resources is similarly recorded in this way, e.g. timber, fish, water, mineral
resources and radio spectra.
Permits to use a natural resource
15.26
Permits to use a natural resource can be issued by government, but can also be issued by private owners, like farmers and
businesses.
15.27
When permits are issued for using a natural resource, three recording options can be distinguished (see Table 15.3):
- the owner can extend or withhold permission to continued use of the asset from one lease period to the next;
- the owner may allow the resource asset to be used for an extended period of time in such a way that in effect the user controls the use of the resource during this time with little, if any, intervention from the owner;
- the owner permits the resource asset to be used to extinction.
The second option may not only lead to a recording of
rent
but also to the creation of an asset for the user, distinct from the resource itself but where the value of the resource
asset
and the asset allowing use of it are linked.
This asset (category AN.222) is only recognised if its value, the benefits to the holder in excess of the value accruing to the issues,
is realisable through transferring the asset. Such permits are first observed through economic appearance of assets (category K.1, see point (g) of
paragraph 6.06). If the value of the asset is not realised it will tend towards zero as the lease period ends.
Table 15.3 - The recording of three different types of permits for the use of natural resources
|
Type of use |
Method of recording |
|---|---|
|
Permission for temporary use, possibly for a long time |
Resource lease: rent (property income) |
|
Control by user during an extended period, risks and rewards borne by the user, transferability of permit at a realisable value |
Rent and creation of new asset for the right to use the natural resource |
|
Use to extinction; permanent use (all risks and rewards borne by the user) |
Sale of natural resource |
15.28
In order to distinguish between
rent, creation of a new
asset
and sale of the natural resource, the major criterion is the transfer of risks and rewards. The natural resource is sold if all the risks and rewards have
been transferred. A new asset is created if the transfer of risks and rewards results in a separate and transferable permit with a realisable value. Using
other criteria, like pre-agreement on payments, up-front payment, length of the permit and treatment in the business accounts, can be misleading as they do
not necessarily reflect the transfer of risks and rewards.
15.29
Natural resources, like land and mineral resources, may be acquired by non-residents. However, sale of natural resources is not to be
recorded as being sold to a non-resident unit. In such cases a notional resident unit is created that holds the title to the natural resource; the
non-resident unit then owns the
equity
of the notional resident unit. A similar recording applies in the case of the acquisition by residents of natural resources in the rest of world.
15.30
The revenues of the government from a specific type of natural resources (e.g. revenues from oil and natural gas) can consist of a wide
range of transactions. Examples are:
- rent in case of resource leases;
- disposition of non-produced assets, e.g. sales of natural resources or sales of licences for exploiting during an extended period of time;
- dividend from a public corporation exploiting natural resources;
- corporation tax paid by corporations exploiting natural resources.
Permits to undertake specific activities
15.31
In addition to licences and leases to use an
asset, permission may be granted to engage in a particular activity, quite independently of any assets involved in the activity. The permits are not dependent
on qualifying criteria (such as passing an examination to qualify for permission to drive a car) but are designed to limit the number of individual units
entitled to engage in the activity. Such permits may be issued by government or by private
institutional units
and different
treatments apply to the two cases.
Table 15.4 - The recording of the use and purchase of non-financial assets, by type of transaction and flow
|
Type of transaction |
Type of use/purchase and type of asset and type of payment |
|---|---|
|
Intermediate consumption |
Operating lease of produced assets, e.g. machines and intellectual property rights Regular payments by corporations for the delivery of water FISIM services related to the provision of a financial lease |
|
Consumption of fixed capital |
Only for produced assets, and for the economic owner |
|
Final consumption expenditure |
Operating lease of consumer durables Purchase of consumer durables, including when financed by a financial lease, or through a hire purchase agreement |
|
Purchase of non-financial assets |
N.A. |
|
Fixed capital formation |
Purchase of produced assets (including when financed via a financial lease) |
|
Acquisition of natural resources |
Purchase of a natural resource including the right to use to extinction Purchase of the right to use a natural resource for an extended period e.g. a fishing quota |
|
Acquisition of other non-produced assets |
Transferable time-share arrangements Purchase of a contract transferable to a third party Contracts for future production, for example contracts with footballers and writers |
|
Payment as property income |
Resource lease, i.e. payment for short-term use of natural resource |
|
Rent |
Regular payments for the right to extract water Financial lease, i.e. purchase of a non-financial asset financed simultaneously by a loan |
|
Income transfer |
Permits issued by government to undertake a specific activity not dependent on qualifying criteria, or with a disproportionate charge compared to the costs of administering the permit scheme Emission permits issued by the government to control total emissions |
|
Other taxes on production |
N.A. |
|
Financial transaction: loan |
Financial lease, i.e. purchase of a non-financial asset financed simultaneously by a loan |
|
Other change in volume of assets |
Exhaustion of natural resources by the owner Illegal logging, fishing or hunting (uncompensated seizure of cultivated assets or natural resources) |
|
Change in the price of assets |
Expiry of contracts, licences and permits recorded as assets |
15.32
When governments restrict the number of cars entitled to operate as taxis or limit the number of casinos by issuing permits, for
example, they are in effect creating monopoly profits for the approved operators and recovering some of the profits as the fee. Such fees are recorded as
other taxes. This principle applies to all cases where government issues permits to limit the number of units operating in a particular field where the
limit is fixed arbitrarily and is not dependent only on qualifying criteria.
15.33
In principle, if the permit is valid for several years, the payment shall be recorded on an accrual basis with another account
receivable or payable entry for the amount of the permit fee covering future years.
15.34
The incentive to acquire such a permit is that the permit holder believes that he will thereby acquire the right to make monopoly
profits through the future income being greater than the payments to acquire the rights to them. The benefit to the holder in excess of the value accruing
to the issuer is treated as an
asset
if the permit holder can realise this by transferring the asset. The type of asset is described as a permit to undertake specific activities (AN.223).
15.35
The permit to undertake specific activities as an
asset
first appears in the other changes in the volume of assets account. Changes in value, both up and down, are recorded in the revaluation account.
15.36
The value of the permit as an
asset
is determined by the value at which it can be sold or, if no such figure is available, is estimated as the present value of the future stream of monopoly
profits. If the permit is on-sold, the new owner assumes the right to receive a refund from the government if the permit is cancelled as well as the right
to earn the monopoly profits.
15.37
A permit issued by government to undertake a specific activity is treated as an
asset
only when all the following conditions are satisfied:
- the activity concerned does not utilise an asset belonging to government; if it does, the permission to use the asset is treated as an operating lease, a financial lease, a resource lease or possibly the acquisition of an asset representing permission to use the asset at the discretion of the licensee over an extended period;
- the permit is not issued subject to a qualifying criterion; such permits are treated as either taxes or payments for services;
- the number of permits is limited and so allows the holder to make monopoly profits when undertaking the activity concerned;
- the permit holder must be able to sell the permit to a third party.
15.38
For units other than government, it is much less common to be able to limit the participation in a given activity. One instance is when
it is either compulsory or desirable to belong to a professional association and there is a strict limit on numbers participating. An example is where an
owner of property limits the number of units operating on his property, e.g. a hotel with a policy of only allowing one taxi firm to pick up guests. In
these sorts of cases, the permits are treated as payments for services. In principle the payment shall be recorded on an accrual basis throughout the period
for which the permit is valid. There is no reason in principle why such permits could not be treated as assets if they were marketable though this may not
be a common situation.
15.39
A permit issued by a unit other than government to undertake a specific activity is treated as an
asset
only when all the following conditions are satisfied:
- the activity concerned does not utilise an asset belonging to the permit issuer; if it does, the permission to use the asset is treated as an operating lease, a financial lease or a resource lease;
- the number of permits is limited and so allows the holder to make monopoly profits when undertaking the activity concerned;
- the permit holder must be legally and practically able to sell the permit to a third party.
15.40
Governments issue emission permits to control total emissions. Such permits do not involve the use of a natural asset, as no value is
placed on the atmosphere, so it is not an economic asset and the permit fees are therefore classified as taxes. The permits are tradable and there will be
an active market in them. The permits therefore constitute assets and shall be valued at the market price for which they can be sold.
Public-private partnerships (PPPS)
15.41
Public-private partnerships (PPPs) are long-term contracts between two units, whereby one unit acquires or builds an
asset
or set of assets, operates it for a period and then hands the asset over to a second unit. Such arrangements are usually between a private enterprise and
government but other combinations are possible, with a public corporation as either party or a private
NPI
as the second party.
Governments engage in PPPs for a variety of reasons, such as the hope that private managements will lead to more efficient
production
and that access to a broader range of financial sources can be obtained and the wish to reduce government debt.
In the contract period the PPP contractor has the
legal ownership. Once the contract period is over, the government has both economic and legal ownership.
Service concession contracts
15.42
Service concession contracts provide a company the exclusive right to provide certain services. For example, in case of a public service
concession, a private company enters into an agreement with the government to have the exclusive right to operate, maintain and carry out investment in a
public utility (such as a water supply system or a toll highway) for a given number of years. Service concession contracts shall not be recorded as assets
where they are not transferable or no value can be realised through transferring them.
Marketable operating leases (AN.221)
15.43
Marketable operating leases are third-party property rights relating to non-financial
assets
other than natural resources. The lease should confer economic benefits to the holder in excess of the fees payable and the holder should be able to realise
those benefits through transferring them. The value of the lease is the benefit to the holder in excess of the value accruing to the issuer. Marketing
operating leases
can include all kinds of
rental
and operating lease contracts. For example, a tenant can sublet an apartment to a third party.
Entitlements to future goods and services on an exclusive basis (AN.224)
15.44
Contracts for future
production
may also give rise to third-party property rights assets. The value of such contracts is the benefit to the holder in excess of the value accruing to the
issuer. Examples are:
- exclusive rights to have a person work for them (e.g. football players) or to publish literary works or musical performances. The value of such rights is the profit that can be made on transferring the rights above the costs of cancelling the existing contract;
-
time share arrangements. Only part of the time share arrangements has to be regarded as the acquisition of an
asset:
- if the owner has a nominated space, available in perpetuity, is eligible to act as part of the management committee for the scheme, or can sell or bequeath the allocation at will, then the arrangement is most likely to be an asset of the same type as a house;
- if the owner has a fixed agreement to have some form of accommodation available at a given period for a fixed length of time, it is likely that this represents a pre-paid lease, i.e. pre-paid final consumption expenditure by households;
- this pre-paid lease could be sublet occasionally or sold for the rest of the period of the lease as a transferable operating lease;
- a participant in a points-based scheme may have an account that is receivable only by way of an asset.
List of abbreviations and acronyms
ABO
accrued benefit obligation
ABS
asset-backed security
BPM6
Balance of payments manual, sixth edition
CCP
central counterparty clearing house
CDS
credit default swap
CIF
cost, insurance and freight
COFOG
Classification of the Functions of Government
COICOP
Classification of Individual Consumption by Purpose
COPNI
Classification of the Purposes of Non-Profit Institutions Serving Households
COPP
Classification of Outlays of Producers by Purpose
CPA
Classification of Products by Activity
EAA
economic accounts for agriculture
EAFRD
European Agricultural Fund for Rural Development
EAGF
European Agricultural Guarantee Fund
EC
European Commission
ECB
European Central Bank
EMU
economic and monetary union
ESA
European System of Accounts
ESO
employee stock option
ESSPROS
European System of Integrated Social Protection Statistics
EU
European Union
EURIBOR
European interbank offered rate
EUROSTAT
the statistical office of the European Union
FDI
foreign direct investment
FISIM
financial intermediation services indirectly measured
FOB
free on board
FRA
forward rate agreement
FVC
financial vehicle corporation
GAB
general arrangements to borrow
GDP
gross domestic product
GFS
government finance statistics
GNI
gross national income
GVA
gross value added
IAS
international accounting standards
IASB
International Accounting Standards Board
IASC
International Accounting Standards Committee
IC
insurance corporations
ICLS
International Conference of Labour Statisticians
ICPF
insurance corporations and pension funds
ICT
information, communications and telecommunications
IFRS
International Financial Reporting Standards
IIP
international investment position
ILO
International Labour Organisation
IMF
International Monetary Fund
IMTS
international merchandise trade statistics
IMTS
international merchandise trade statistics
INTRASTAT
statistical collection system
I-O
input-output
IPO
initial public offering
IPSASB
International Public Sector Accounting Standards Board
ISIC
International Standard Industrial Classification of all Economic Activities
ISIN
international securities identification number
KAU
kind-of-activity unit
KLEMS
capital, labour, energy, materials and services
LIBOR
London interbank offered rate
MFI
monetary financial institution
MMF
money market fund
MSITS
Manual on statistics of international trade in services
N.E.C.
not elsewhere classified
NAB
new arrangements to borrow
NACE
general industrial classification of economic activities within the European Union
NDP
net domestic product
NOS
net operating surplus
NPI
non-profit institution
NPISH
non-profit institution serving households
NUTS
nomenclature of territorial units for statistics
OECD
Organisation for Economic Cooperation and Development
OMFI
other monetary financial institution
OTC
over the counter
PAYE
pay as you earn
PBO
projected benefit obligation
PF
pension funds
PIM
perpetual inventory method
PPP
purchasing power parity
PPP
public-private partnership
PPS
purchasing power standard
PRGF
Poverty Reduction and Growth Facility
R&D
research and development
ROW
rest of the world
SAM
social accounting matrix
SDR
special drawing right
SEEA
System of Environmental-Economic Accounts
SNA
System of National Accounts
SOCX
Social Expenditure Database
SPE
special-purpose entity
SPV
special-purpose vehicle
STRIPS
Separate Trading of Registered Interest and Principal Securities
UCITS
undertakings for collective investment in transferable securities
UN
United Nations
VAT
value added tax
