National Accounts Activities & Reporting
Requirements
Operational Material
Outline
Topics to be covered• Part I: National Accounts Activities• Part II: Reporting Requirements
Part INational Accounts
Activities
3
4
National accounts statistics
Basic Heading level data
Prices
Accuracy
Reliability of PPP-deflated GDP
Comparability
ExpendituresConsistency
Role of National Accounts in the ICP
Comparability Problems in the National Accounts
Exhaustiveness of GDP
All economic activities have to be included:
Own-account production
Observed
Non-Observed
Legal
Illegal
FormalInformal
Inconsistent Treatment of
Problem Areas
Income in kind FISIM
Net expenditures abroad DwellingsNPISH
5
National Accounts Activities
Carry out N.A. work for comp. resistant areas
Use N.A. data to help edit survey prices
Price Surveys
Implement Commodity Flow
Review GDP Classification
Select Major Products
Develop vector of 2011 GDP expenditures
Identify Data Sources for Major
Products
Prepare Matrix of Data Availability for
Major Products
Use Survey Prices in GDP
Implement Price Tracking
Early data need to identify & resolve
data problems
Create Metadata Flow Chart for 2005
GDP expenditure
Update Metadata Flow Chart for latest
year possible
Compile GDP & Main uses for 2011
Early Metadata Flow Chart for 2011
1 2
3
4
5
6
78
9
10
11 12
13
14
15
6
7
Initial Values for L.Y.*
Data Sources
Adjustments to L.Y.*
BH Values for L.Y.*
Price Review for L.Y.*
Commodity Flow
Final Values for 2011
Adjustments to 2011
BH Values for 2011
Price Review for 2011
Variations
* L.Y. : Latest year available
Activity Flow Chart
8
“Borrowing” a structure
Using expert opinion
“Borrowing” a per capita
quantity or volume
Extrapolation
Direct estimation
Adjust the “borrowed” structure by a vector of the price level indexes between the two
countries
Consult retailers, manufacturers, marketing experts, chambers of commerce and other sources
Multiply the per capita quantity or volume by the population of the “borrowing country” and the price level index between the two countries
Update an earlier expenditure breakdown using assumptions on population growth, price changes etc
The preferred method, if data sources exist
Requires clustering
countries for each BH or
group of BHs
1
2
3
4
5
Five approaches to splitting GDP
9
Production Process Related
NPISH
Housing Actual Rents Imputed Rents
Health Education Others
Education Collective ServicesHealth
Use GFS as source
Compensation of employees
Intermediate consumption
Gross Operating Surplus
Net Taxes on Products
Receipts from Sales
Special Basic Headings
Part IIReporting
Requirements
10
Reporting formcollects the basic heading expenditure
estimates
Source datadocuments how expenditures on basic
headings were estimated
Price formation4 forms steps involved in adjusting
values from basic to purchasers’ prices
Commodity flowsTotal supply of important products =
intermediate and final uses
Variations between 2005 &
2011
provide some basic edits by comparing per capita notional real expenditures in 2005 and 2011
1
2
3
4
5
Five Reporting forms
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GDP Classification Expenditure ValueLocal Currency Codes Headings
100000 Gross Domestic Product 0
110000Individual Consumption Expenditure By Households 0
110100 Food And Non-alcoholic Beverages 0
110110 Food 0
110111 Bread And Cereals 0
110111.1 Rice
[….] [….]
Table 1: Reporting Form
13
GDP Classification 3 4-6 7-9 10 11-12 13
Codes Headings N.A. Original Sources
Adjustments Ex. V. 2005
Sources Validation
100000Gross Domestic Product
110000
Individual Consumption Expenditure By Households
110100 Food And Non-alcoholic Beverages
110110 Food
110111Bread And Cereals
110111.1 Rice
[….] [….]
Table 2: Source Data & Metadata
14
Basic heading
Product descriptionPercentage
Applied
Price
Basic price
+ Taxes/Custom Duties on products %
- Subsidies on products % = Producers’ price
+ VAT not deductible by the purchaser %
+ Transport charges %
+Trade margins %
+Installation Costs [for Equipment Items] %
= Purchasers’ price
Table 3: Price Formation
15
3-4 5-6 7-8 9 10-13 14
GDP Classification Supply Total Supply =
Uses
Uses
Code HeadingsProductio
n & Imports
Margins +Customs
+ VAT+ Taxes
Interm. Cons.
Hhold + Govt + GFCF +
ΔS
Exports
100000Gross Domestic Product
110000
Individual Consumption Expenditure By Households
110100 Food And Non-alcoholic Beverages
110110 Food
110111Bread And Cereals
110111.1 Rice
[….] [….]
Table 4: Commodity Flow
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3 4 5-6 7 8 9-10 11
GDP Classification 2005 2011
Codes Headings Exp. in nat. currency
Average “price”
Notional real exp. Per cap.
Exp. in nat. currency
Average “price”
Notional real exp. Per cap.
% Change in not. Real
exp.
100000 GDP
110000 …
110100 …
110110 …
110111 …
110111.1 .
[….] .
Table 5: Per Capita Variations
Initial Values for
L.Y.
Data Sources
Adjustments to L.Y.
BH Values for L.Y.
Price Review for
L.Y.
Commodity Flow
Final Values for
2011Adjustments to 2011
BH Values for 2011
Price Review for
2011 Variations
1
2
3
4 5
2 2
2 2
3
1
Reporting Forms Flowchart
Forms Status What For which year?
1. Reporting form Mandatory Available BHs or aggregates
Latest available year and the reference year 2011
2. Source data Recommended, but alternative template can be used
Available BHs or aggregates
Latest available year and the reference year 2011
3. Price formation Optional Important products
Latest available year and the reference year 2011
4. Commodity flows Optional Important products / aggregates
Latest year
5. Variations between 2005 & 2011
Optional All BHs 2005 & 2011
Mandatory/Optional Forms
Use of the MORES is optional.
Main Objectives
to assist estimate
expenditure values
to report on underlying processes
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Model Report on Expenditure Statistics (MORES)
Part I
20
MORES Layout
• Objectives• Uses of the MORES
Introduction
• Quality Assurance Check List• Eurostat “Tabular Approach to Exhaustiveness”
Part II• Form 2- Source data & adjustments• Metadata
By basic heading
Part III • Form 1- Reporting TableGDP
Classification
21
Objectives and
Advantages
Eurostat “Tabular Approach to Exhaustiveness”
Defines standard set of non-exhaustiveness and presents them in a tabular framework
Provides a comprehensive and systematic assessment to ensure exhaustiveness of NA
Facilitates cross-country comparisons of adjustments and adjustment methods
Provides for similar level of coverage of NA
ICP Code
Hea-ding
Exp. obtained directly from the country's
NA
Exp. information from the original data source
Exp. value
Reference Year
Data Source
Adjustment documentation & adjusted value
TypeDescrip
tion
Adjus-ted
Exp.
BH Value for the latest year
availa-ble
Latest year: 2011
100000
110000
GDP
Indivi-dual
Consumption Exp by
HH
22
Form 2- Source data & adjustments
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Completing Part II in 5 Steps
Complete column 3 of Table 1 with whatever aggregate estimates are available
Step 1
Step 2 • Apply 5 approachesBy BH
GDP Classification Codes
Classification Headings Names
Initial Expenditures Values (GDP and main uses)
Basic heading values estimated using the proposed 5 approaches
Discrepancies
(3)-(4)
1 2 3 4 5
Step 3 • Complete column 4 of Table 1Automatic
Step 4• Report discrepancies between
columns 3 and 4 under column 5Aggregate level
Step 5• Make adjustments to resolve
discrepanciesAll levels
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