II. OVERVIEW
ANNEX: Other Presentations of the Accounts
| 1. | The System of National Accounts mainly uses the classical presentation of accounts in the form of balancing statements, with uses on one side and resources on the other side. Other types of presentation may be used. |
A. Diagrammatic presentation
| 2. | The diagrammatic presentation uses boxes linked together by arrows, to indicate the nature and size of the flows and stocks represented. | | | Text refers to: figure 2.4.  |
| 3. | For the economy as a whole, figures corresponding to the ones which appear in the integrated economic accounts are shown in a simplified way in figure 2.4. | | | Text refers to: figure 2.4. |
| 4. | A set of equations, which are described below, corresponds to this diagram and to the integrated economic accounts. | | | Text refers to: table 2.4. | | | Text refers to: figure 2.4. |
B. Equations
| 5. | The equalities of the System may be represented by sets of equations that are used, for example, in model building. The accounts for the total economy are shown in table 2.4 and in equation form. | | | Text refers to: table 2.4. |
| 6. | Equations (1) and (2) cover the production and goods and services accounts. All transactions in these equations correspond to arrows going to or from the boxes "production" and "goods and services" in the diagram. | | | Text refers to: table 2.4. | | | Text refers to: figure 2.4. |
| 7. | Equations (3) to (6) cover the distribution and use of income accounts and the corresponding box in the diagram. The aggregates are not shown directly in the latter, but they are derived easily according to the relevant equations. | | | Text refers to: table 2.4. | | | Text refers to: figure 2.4. |
| 8. | Equations (7) to (10) and (15) cover the accumulation accounts and the box "accumulation" in the diagram. | | | Text refers to: table 2.4. | | | Text refers to: figure 2.4. |
| 9. | Equations (11) to (17) correspond to opening and closing balance sheets and changes between balance sheets. They cover the boxes "opening stocks" and "closing stocks" and the changes between as they are shown in the diagram. Those changes are identical to the content of equations (7) to (10) and (15), the other changes in volume of assets and the revaluation being shown separately for the three types of assets and liabilities. | | | Text refers to: table 2.4. | | | Text refers to: figure 2.4. |
| 10. | Equations (18) and (21) contain the external transactions (box "external transactions" in the diagram) and the external financial position of the nation presented from the point of view of the nation. The opening and closing positions and the changes between are shown in the diagram. | | | Text refers to: table 2.4. | | | Text refers to: figure 2.4. |
| 11. | Thus, the diagram may be read by reading the equations, and the equations are illustrated by the diagram. | | | Text refers to: table 2.4. | | | Text refers to: figure 2.4. |
| 12. | Similarly the various parts of the System may be presented in equations form: the full sequence of accounts for institutional sectors, the shortened sequence of accounts for industries, the transactions accounts such as the goods and services account, the rest of the world accounts, etc. |
C. Matrix presentation
| 13. | A provisional matrix table 2.5 is shown in this annex. This table demonstrates one way in which the columns for the total economy, goods and services and rest of the world from table 2.8, integrated economic accounts, can be displayed in a matrix. | | | Text refers to: table 2.5. | | | Text refers to: table 2.8. |
| 14. | The matrix is considered provisional because improvements are needed, particularly in the presentation of the accumulation accounts and balance sheets. The improvements will aim to make the matrix presentation less complex and easier to relate to the accounts in table 2.8. | | | Text refers to: table 2.5. | | | Text refers to: table 2.8. |
| 15. | The difficulty is related to the use of the main feature of the matrix presentation, i.e., that each item which is presented twice in the accounts of table 2.8 - as use and resource, asset and liability - is only included once in the matrix: at the intersection of the column of the account in which it is a use or asset and the row of the account in which it is a resource or liability, or vice versa. This feature of the matrix presentation works well in the case of the current accounts and also for the capital account, as in these accounts there are always counterpart entries in the same or other accounts for each transaction. This is illustrated in the examples presented below. | | | Text refers to: table 2.5. | | | Text refers to: table 2.8. |
| 16. | For instance, the goods and services account (row and column 1), includes in its row and column in the same manner as in the account of table 2.8, the six major aggregates which define the main national accounts identity between supply and use. At the intersection of the column of the goods and services account and the row of production is recorded output and taxes on production and imports less subsidies (3,737) and in the same column and the row of the external account of goods and services is included the other element of supply, i.e. imports (499). In the row of the goods and services accounts are presented the four use categories, i.e., intermediate consumption (1,883), final consumption (1,399), gross capital formation (414) and exports (540). | | | Text refers to: table 2.5. | | | Text refers to: table 2.8. |
| 17. | Similarly the matrix items of the production account (row and column 2) correspond without any major change to those of table 2.8. Thus the account includes in the row output and taxes on production and imports less subsidies (3,737), and in the column intermediate consumption (1,883) and domestic product (1,854) which is recorded gross. | | | Text refers to: table 2.5. | | | Text refers to: table 2.8. |
| 18. | The next rows and columns (3 to 5) of the current account for the total economy, i.e., the primary distribution of income, secondary distribution of income and redistribution of income in kind and use of income accounts of the total economy have similar links with the items of the accounts in table 2.8 and may be read in the same manner. As consumption of fixed capital is presented as a negative item (-222) in the row of the use of income account and the column of the capital account, all main aggregates including domestic product, national income, and disposable income are recorded gross, except saving which is recorded net. One should also note that the primary distribution of income account consolidates the elements of the generation and allocation of primary income accounts and the secondary distribution of income and redistribution of income in kind accounts are combined into one account. The items of the current accounts for rest of the world (rows and columns 13 and 14) correspond without any major changes to those presented in table 2.8. | | | Text refers to: table 2.5. | | | Text refers to: table 2.8. |
| 19. | The matrix presentation works less well for the other changes in volume of assets accounts and the revaluation accounts for which there are no counterpart entries. In order to incorporate the latter into the matrix presentation, several adjustments were made that affect all accumulation accounts and balance sheets. Dummy entries were introduced which cancel out in the same account. Furthermore, an additional account for net worth was incorporated to provide the link between opening and closing net worth. Finally, a different link was established between the rows and columns of the matrix and the two sides of the accounts in table 2.8. For the accounts starting with the goods and services account, production account and ending with the capital and financial accounts, the row items refer to resources and changes in liabilities and net worth and the items in the columns represent uses and changes in assets. On the other hand, in the accounts covering other changes in assets and opening balance sheets the presentation is reversed, i.e., the column items refer to liabilities, net worth and changes therein, and the row items concern assets and changes in assets; the presentation of the changes in balance sheet and the closing balance sheet is even more complex. As a consequence of these adjustments the link between the matrix presentation and the parallel accounts in table 2.8 is less obvious for the accumulation accounts and balance sheets. | | | Text refers to: table 2.5. | | | Text refers to: table 2.8. |
| 20. | The dummy entries in particular make the reading of the account more complex. For instance, the financial account of the total economy includes in the row two dummy items, i.e., net acquisition of financial assets and net acquisition of financial assets by rest of the world and in the column one dummy item called net incurrence of liabilities by rest of the world. These dummy items are presented twice with opposite signs and thus cancel out, and should be ignored in comparing the row and column entries with the entries in the financial account of table 2.8. Thus, the row of the financial account of the total economy opens with net lending of the total economy (38). Other transactions that correspond to items in the account of table 2.8 are in the row, transactions in financial assets between resident sectors (553) which is at the diagonal intersection between row and column of this account and net incurrence of external liabilities (50); and in the column, in addition to the diagonal element, net acquisition of external financial assets (88). | | | Text refers to: table 2.5. | | | Text refers to: table 2.8. |
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