1993 SNA Update Information - AEG recommendations for issue:
Cost of capital services: production account
|Issue description in [English] | [French] | [Russian] | [Spanish]|
|Capital services provided by non-financial assets to the production process are not explicitly
defined by the 1993 SNA. The OECD manual Measuring Capital defines capital inputs as the actual or estimated pure economic rent payable; that is, by the sum of consumption of fixed capital, expected holding gains/losses and the capital, or interest, costs. The rental, paid by the user of a rented non-financial asset to the owner, covers both the costs incurred by the owner in providing the service and the capital services rendered by the asset to the owner. For nonfinancial assets used by the owner, capital services appear implicitly as part of the gross operating surplus. How should the concept of capital services be articulated in the SNA?|
|Number of AEG recommendations for selected issue:||1|
| Corresponding meeting||Date posted||Recommendation|
| July 2005||12/09/2005||The AEG:|
(a) confirmed the importance of including the concept of capital services in the updated SNA
(b) strongly supported including the estimates of capital services in supplementary tables rather than in the core accounts of the SNA
(c) confirmed that capital services (comprising depreciation and return to capital) and capital stock measures should be compiled in an integrated and consistent manner
(d) agreed that the basic concepts of the capital services approach be presented in the SNA and that the detailed recommendations would be elaborated in an updated version of the OECD manual on “Measuring Capital” *
(e) agreed that the concepts underlying the formulae presented in the paper (“Cost of capital services”, document number SNA/M1.05/04; Issue 15) are appropriate, subject to detailed checking.
*/ It was agreed in later discussion related to the manual that it is important that it should give due consideration to the position of countries with less developed statistical systems.