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Issue 4. Final consumption of corporations

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Description of the issue
In the SNA, no final consumption is recorded for corporations because corporations are not considered to be final users of goods and services, except for capital products which, with the exception of valuables, are acquired for the purpose of production. However, large corporations often undertake sponsorship of cultural and sporting events. To date, the SNA regards the payments involved as a form of advertising but it could be argued that they are a form of individual consumption and could be treated as final consumption expenditure of corporations and social transfers in kind to households. Further, by imposing regulations such as environmental standards, the government may achieve the same effect as if they levied taxes and spent the income on environmental protection, which would be treated as collective consumption. There may thus be instances where it would be more appropriate to record some expenditures by corporations as final consumption.
Discussions on the issue
The issue still needs to be addressed.

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