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

12

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

16

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

19

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

23

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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