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1993 SNA Update Information - Country comments for issue:
Patented entities

Issue description
Issue description in [English] | [French] | [Russian] | [Spanish]
In the 1993 SNA, patented entities are treated as non-produced intangible assets. However, payments received from patent users are by convention recorded as payments for services (similar to rentals from an operating lease of fixed assets). This is contrary to the SNA accounting rules, which treat payments for the use of non-produced assets as property income. If R&D is not treated as capital formation, should the payment for use of patented entities continue to be treated as a payment for services?
Country comments
Number of country comments for selected issue:7
  Date postedSourceComment
 27/11/2006AustraliaWe agree with the recommendations made by AEG
 10/10/2006SwedenAgreement with proposal
 15/09/2006United KingdomIf R&D is not treated as capital formation, but as current activity leading to the "discovery" of intellectual property, then payment for the use of intellectual property protected by patent should be treated as property income as in the current SNA 1993, and not as payments for a service.
 15/09/2006LatviaAfter deep discussions and expert consultations we basically support the 1993 SNA Update Issues.
 28/07/2006LithuaniaIn general we support the recommendations.
 01/12/2005IsraelWe agree with the recommendations of the AEG.
 30/09/2004Lesotho - Central BankIn the system patented entities are treated as non-produced intangible assets. However, payments received from patent users are by convention recorded as output of services similar to rentals from lease of fixed assets. This is contrary to other non-produced assets such as land. Should R&D costs and the original derived from it be linked or capitalized separately? Furthermore. how should originals be valued and what types of price indexes should be used to deflate the output of services from patented entities? Comment: This should be changed and payments from patented entities must be indexed to EPS.
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