1993 SNA Update Information - AEG recommendations for issue:
Obsolescence and depreciation
|Issue description in [English] | [French] | [Russian] | [Spanish]|
|Consumption of fixed capital is defined in the 1993 SNA in general terms as the decline, during the
course of the accounting period, in the current value of the stock of fixed assets owned and used by
a producer as a result of physical deterioration, normal obsolescence or normal accidental damage.
This decline is expressed in the average prices of the period, but the 1993 SNA does not give
guidance about whether the prices to be used should relate to the general price level or whether they
should be asset specific.|
|Number of AEG recommendations for selected issue:||1|
| Corresponding meeting||Date posted||Recommendation|
| July 2005||9/12/2005||The AEG agreed with the recommendations but with the following qualifications:|
(a) the current text of the 1993 SNA (Para. 10.118) relating to depreciation should reflect the accepted practice that “average prices” refers to the average price of an asset at constant quality
(b) the relationship of this recommendation to the concept of income needs to be considered
(c) the detailed practical guidance on measuring depreciation should be provided in an updated version of the OECD manual on “Measuring Capital”
(d) it is important that the above-mentioned manual should give due consideration to the aspects of countries with less developed statistical systems.