Part H - The classification of other changes in volume

The following paragraphs discus the classification of other changes in volume in the context of financial assets and liabilities, non-financial assets, and the change in net worth due to other changes in volume. The letters and numbers in brackets after each classification category signify GFS classification codes related to each category.

The classification of other changes in the volume of financial assets and liabilities (for financial assets: ETF 5211, TALC 4 and for liabilities: ETF 5213, TALC 5) record the value of other changes in the volume of financial assets (ETF 5211, TALC) and liabilities (ETF 5213, TALC 5) during the reporting period. In this chapter, other changes in the volume of financial assets and liabilities are discussed together to emphasise the counter party relationship between financial assets and liabilities. In GFS, all financial assets except for monetary gold in the form of gold bullion held as reserve assets have counterpart liabilities. In GFS, other changes in the volume of financial assets and liabilities are further classified as:

• Other changes in the volume of currency and deposits (ETF 5211, TALC 41 and ETF 5213, TALC 51);
• Other changes in the volume of debt securities and related assets (ETF 5211, TALC 42) and liabilities (ETF 5213, TALC 52);
• Other changes in the volume of loans and placements (ETF 5211, TALC 43 and ETF 5213, TALC 53);
• Other changes in the volume of insurance, superannuation and standardised guarantee schemes (ETF 5211, TALC 44 and ETF 5213, TALC 54); and
• Other changes in the volume of other financial assets and liabilities (ETF 5211, TALC 45 and ETF 5213, TALC 55).

Other changes in the volume of currency and deposits (for financial assets: ETF 5211, TALC 41 and for liabilities: ETF 5213, TALC 5) records the value of other changes in the volume of currency and deposits in the form of financial assets (ETF 5211, TALC 41) and liabilities (ETF 5213, TALC 51) held by public sector units. In GFS, other changes in the volume of currency and deposits are further classified as:

• Other changes in the volume of cash and deposits (for financial assets: ETF 5211, TALC 411 and for liabilities: ETF 5213, TALC 511);
• Other changes in the volume of Special Drawing Rights (SDRs) (for financial assets: ETF 5211, TALC 412 and for liabilities: ETF 5213, TALC 512); 
• Other changes in the volume of monetary gold (bullion) (ETF 5211, TALC 413 asset only); and
• Other changes in the volume of monetary gold (allocated and unallocated) (for financial assets: ETF 5211, TALC 414 and for liabilities: ETF 5213, TALC 511).

Other changes in the volume of cash and deposits (for financial assets: ETF 5211, TALC 411 and for liabilities: ETF 5213, TALC 511) records the value of other changes in the volume of cash and deposit assets (ETF 5211, TALC 411) and liabilities (ETF 5213, TALC 511) held by public sector units. Appearances or disappearances of cash and deposits on (or from) the balance sheet may occur through events such as the uncompensated seizure of assets by government units; the reclassification of government units in or out of the public sector; or the merging or splitting of public sector units due to machinery of government or other changes.

Paragraph 10.78 of the IMF GFSM 2014 states that when two units are merged, all financial claims and liabilities that existed between them are eliminated. Also, when a unit splits into two or more units, new financial claims and liabilities may appear between the new units. This may lead to change in the volume of cash and deposits on the balance sheet, and must be recorded through an other change in volume entry in the accounts. Further, physical stocks of cash may suffer losses through damage in fires or floods, etc., and must be recorded as other changes in volume. Further information on cash and deposits can be found in paragraphs 8.150 to 8.154 of this manual.

Other changes in the volume of Special Drawing Rights (SDRs) (for financial assets: ETF 5111, TALC 412 and for liabilities: ETF 5113, TALC 512) records the value of other changes in the volume of Special Drawing Rights (SDRs) assets (ETF 5211, TALC 411) and liabilities (ETF 5213, TALC 511) held by public sector units. Appearances or disappearances of SDRs on (or from) the balance sheet (through uncompensated seizures of SDRs by the IMF for example) are recorded as other changes in the volume of currency and deposits. Further information on SDRs can be found in paragraph 8.155 of this manual.

Other changes in the volume of monetary gold (bullion) (ETF 5211, TALC 413) (asset only) records the value of other changes in the volume of gold in the form of bullion (ETF 5211, TALC 413) held as reserve assets by public sector units. Paragraph 10.84 of the IMF GFSM 2014 notes that at the time monetary gold in the form of gold bullion is acquired by a monetary authority, it is first classified as inventories (ETF 5212, an appropriate category within TALC 21) or as valuables (ETF 5212, TALC 221) if primarily held as a store of value. When gold held in the form of gold bullion becomes a reserve asset, it enters the financial assets in the balance sheet as a reclassification via other changes in the volume of assets to monetary gold (bullion) (ETF 5211, TALC 413). Further information on monetary gold (bullion) can be found in paragraphs 8.156 to 8.157 of this manual.

Other changes in the volume of monetary gold (allocated and unallocated) (for financial assets: ETF 5211, TALC 414 and for liabilities: ETF 5213, TALC 511) records the other changes in the volume of gold in the form of allocated and unallocated gold accounts (ETF 3111, TALC 414) held as reserve assets by public sector units. Paragraph 10.84 of the IMF GFSM 2014 notes that at the time gold in the form of allocated accounts is acquired by a monetary authority, it is first classified as inventories (ETF 5212, an appropriate category within TALC 21) or as valuables (ETF 5212, TALC 221) if primarily held as a store of value. When gold held in the form of allocated accounts becomes a reserve asset, it enters the financial assets in the balance sheet as a reclassification via other changes in the volume of assets to monetary gold (allocated and unallocated) (for financial assets: ETF 5211, TALC 414 and for liabilities: ETF 5213, TALC 511). When gold in the form of unallocated accounts is acquired by a monetary authority, it is first classified as currency and deposits (ETF 5211, TALC 411). When unallocated gold accounts become reserve assets, they are reclassified to monetary gold (allocated and unallocated) (ETF 5211, TALC 414), also through an other changes in the volume of assets entry in the accounts. Further information on monetary gold (allocated and unallocated) can be found in paragraph 8.158 of this manual.

Other changes in the volume of debt securities and related assets (for financial assets: ETF 5211, TALC 42 and for liabilities: ETF 5213, TALC 52) records the value of other changes in the volume of debt securities and related financial assets (ETF 5211, TALC 42) and liabilities (ETF 5213, TALC 52) held by public sector units. In GFS, other changes in the volume of debt securities and related assets and liabilities are further classified as:

• Other changes in the volume of debt securities (for financial assets: ETF 5211, TALC 421 and for liabilities: ETF 5213, TALC 521);
• Other changes in the volume of financial derivatives (for financial assets: ETF 5211, TALC 422 and for liabilities: ETF 5213, TALC 522);
• Other changes in the volume of employee stock options (for financial assets: ETF 5211, TALC 423 and for liabilities: ETF 5213, TALC 523); 
• Other changes in the volume of equity including contributed capital (for financial assets: ETF 5211, TALC 424 and for liabilities: ETF 5213, TALC 524); and
• Other changes in the volume of investment fund shares or units (for financial assets: ETF 5211, TALC 425 and for liabilities: ETF 5213, TALC 525).

Other changes in the volume of debt securities (for financial assets: ETF 5211, TALC 421 and for liabilities: ETF 5213, TALC 521) records the value of other changes in the volume of debt security assets (ETF 5211, TALC 421) and liabilities (ETF 5213, TALC 521) held by public sector units. Paragraph 10.84 of the IMF GFSM 2014 indicates that if arrears arise and the associated contract provides for a change in the characteristics of a financial instrument when it goes into arrears, this change should be recorded as a reclassification as other changes in the volume of debt securities (for financial assets: ETF 5211, TALC 421) and (for liabilities: ETF 5213, TALC 521).

A reclassification from loans and placements (for financial assets: ETF 5211, TALC 43 and for liabilities: ETF 5213, TALC 53) to debt securities (for financial assets: ETF 5211, TALC 421 and for liabilities: ETF 5213, TALC 521) through an other change in volume account entry also applies when loans become tradeable. Paragraph 7.149 of the IMF GFSM 2014 states that for such reclassification to take place, there needs to be evidence of secondary market trading, including the existence of market makers and frequent quotations of the instrument, such as provided by bid-offer spreads. An example is a syndicated loan, which is provided by a group of lenders and is structured, arranged, and administered by one or several commercial or investment banks. If parts of a syndicated loan become traded in secondary markets, the loan may meet the criteria to be reclassified as a debt security. Further information on debt securities can be found in paragraphs 8.160 to 8.161, and Chapter 13 Part B of this manual.

Other changes in the volume of financial derivatives (for financial assets: ETF 5211, TALC 422 and for liabilities: ETF 5213, TALC 522) records the value of other changes in the volume of financial derivative assets (ETF 5211, TALC 422) and liabilities (ETF 5213, TALC 522) held by public sector units. Paragraph 10.84 of the IMF GFSM 2014 notes that if the amount payable under a financial derivative remains due for payment after it matures, the amount due no longer represents a financial derivative because the value is fixed. It is therefore reclassified as an accounts receivable (ETF 5221, TALC 452) or as an accounts payable (ETF 5213, TALC 552). In GFS, the creation and exhaustion of financial derivatives are treated as transactions in financial assets (ETF 3111, TALC 422, SDC) and liabilities (ETF 3211, TALC 522, SDC) and not as other changes in the volume of assets. Further information on financial derivatives can be found in paragraphs 8.162 to 8.164, and Chapter 13 Part B of this manual.

Other changes in the volume of employee stock options (for financial assets: ETF 5211, TALC 423 and for liabilities: ETF 5213, TALC 523) records the value of other changes in the volume of employee stock option assets (ETF 5211, TALC 423) and liabilities (ETF 5213, TALC 523) held by public sector units. Appearances or disappearances of employee stock options on (or from) the balance sheet may occur through events such as the reclassification of government units in or out of the public sector, and are recorded through an other change in volume entry in the accounts. Further information on employee stock options can be found in paragraphs 8.165 to 8.168 of this manual.

Other changes in the volume of equity including contributed capital (for financial assets: ETF 5211, TALC 424 and for liabilities: ETF 5213, TALC 524) records the value of other changes in the volume of equity including contributed capital in the form of financial assets (ETF 5211, TALC 424) and liabilities (ETF 5213, TALC 524) held by public sector. Paragraph 10.84 of the IMF GFSM 2014 states that bonds which are convertible into equity are reclassified as equity including contributed capital (for financial assets: ETF 5211, TALC 424; and for liabilities: ETF 5213, TALC 524) through an other change in volume entry in the accounts when the option is exercised.

Paragraph 10.84 of the IMF GFSM 2014 further notes that in cases where government units acquire equity in a public corporation or quasi-corporation as a result of a legislative or an administrative change creating the corporation or quasi-corporation, this event will amount to a reclassification of the corporation’s existing assets and liabilities that results in an addition of equity including contributed capital (ETF 5211, TALC 424) to the balance sheets of the acquiring government unit through an other change in volume entry in the accounts. Further information on equity including contributed capital can be found in paragraphs 8.169 to 8.170 of this manual.

Other changes in the volume of investment fund shares or units (for financial assets: ETF 5211, TALC 425 and for liabilities: ETF 5213, TALC 525) records the value of other changes in the volume of investment fund shares or units in the form of assets (ETF 5211, TALC 425) and liabilities (ETF 5213, TALC 525) held by public sector units. Appearances or disappearances of investment fund shares or units on (or from) the balance sheet may occur through events such as the reclassification of government units in or out of the public sector and the merging or splitting of public sector units through machinery of government or other change. These changes must be recorded through an other change in the volume entry in the accounts. Further information on investment fund shares or units can be found in paragraphs 8.171 to 8.172, and Chapter 13 Part B of this manual.

Other changes in the volume of loans and placements (for financial assets: ETF 5211, TALC 43 and for liabilities: ETF 5213, TALC 53) records the value of other changes in the volume of loan and placement assets (ETF 5211, TALC 43) and liabilities (ETF 5213, TALC 53) that are held by public sector units. In GFS, other changes in the volume of loans and placements are further classified as:

• Other changes in the volume of finance leases (for financial assets: ETF 5211, TALC 431 and for liabilities: ETF 5213, TALC 531); 
• Other changes in the volume of advances - concessional loans (for financial assets: ETF 5211, TALC 432 and for liabilities: ETF 5213, TALC 532); 
• Other changes in the volume of advances other than concessional loans (for financial assets: ETF 5211, TALC 433 and for liabilities: ETF 5213, TALC 533); and 
• Other changes in the volume of loans and placements not elsewhere classified (for financial assets: ETF 5211, TALC 439 and for liabilities: ETF 5213, TALC 539).

Other changes in the volume of finance leases (for financial assets: ETF 5211, TALC 431 and for liabilities: ETF 5213, TALC 531) records the value of other changes in the volume of finance lease assets (ETF 5211, TALC 431) and liabilities (ETF 5213, TALC 531) held by public sector units. The volume of finance lease assets and liabilities may change in the balance sheet depending on the terms of the financial lease arrangement. In GFS, this change is recorded as other changes in the volume of finance leases (for financial assets: ETF 5211, TALC 431) and (for liabilities: ETF 5213, TALC 531). Further information on finance leases can be found in paragraph 8.174, and Chapter 13 Part H of this manual.

Other changes in the volume of advances - concessional loans (for financial assets: ETF 5211, TALC 432 and for liabilities: ETF 5213, TALC 532) records the value of other changes in the volume of advances in the form of concessional loan assets (ETF 5211, TALC 432) and liabilities (ETF 5213, TALC 532). Paragraph 10.57 of the IMF GFSM 2014 states that loans may appear on, or disappear from, the balance sheet for a variety of reasons. For example, concessional loans may disappear from the balance sheet because a creditor may determine that a financial claim can no longer be collected due to the debtor’s bankruptcy or other factors. In this case, the creditor writes off the debt and removes the claim from its balance sheet by means of an entry in other changes in the volume of assets in the accounts. In this case, the write off of advances in the form of concessional loans will be recorded as other changes in the volume of advances - concessional loans (for financial assets: ETF 5211, TALC 432) and (for liabilities: ETF 5213, TALC 532). Further information on advances on concessional loans can be found in paragraphs 8.175 to 8.176, and Chapter 13 Part B of this manual.

Other changes in the volume of advances other than concessional loans (for financial assets: ETF 5111, TALC 433 and for liabilities: ETF 5113, TALC 533) records the value of other changes in the volume of advances other than concessional loan in the form of assets (ETF 5211, TALC 433) and liabilities (ETF 5213, TALC 533). Paragraph 10.57 of the IMF GFSM 2014 states that loans may appear on, or disappear from, the balance sheet for a variety of reasons. If a creditor determines that a financial claim can no longer be collected because of the debtor’s bankruptcy or other factors, then the creditor writes off the debt from their balance sheet by means of an entry in other changes in the volume of assets. In this case, the write off of advances (other than concessional loans) will be recorded as other changes in the volume of advances other than concessional loans (for financial assets: ETF 5211, TALC 433 and for liabilities: ETF 5213, TALC 533).

Paragraph 10.57 of the IMF GFSM 2014 further notes that debt is usually written off as uncollectible because of the bankruptcy or liquidation of the debtor; however, it may sometimes be written off for other reasons, such as a court order. The write-off may be full or partial; partial write-offs may arise, (for example) under a court order, or if the liquidation of the debtor’s assets allows some of the debt to be settled with the balance after settlement being the value written off. Recognition that the debt is uncollectible should be distinguished from internal accounting provisions of the creditor for the possibility of default. Although such provisions may be useful for analysis, they do not mean that the debt should no longer be recognised as existing, and should therefore not be considered as written off. In contrast, a reduction in a financial claim by mutual agreement between the creditor and debtor is a transaction rather than an other change in the volume of assets. Further information on advances other than concessional loans can be found in paragraphs 8.177 to 8.179, and Chapter 13 Part B of this manual.

Other changes in the volume of loans and placements not elsewhere classified (for financial assets: ETF 5111, TALC 439 and for liabilities: ETF 5113, TALC 539) records the value of other changes in the volume of other loans and placements in the form of assets (ETF 5211, TALC 439) and liabilities (ETF 5213, TALC 539) that are not elsewhere classified. Paragraph 10.57 of the IMF GFSM 2014 states that loans may appear on, or disappear from, the balance sheet for a variety of reasons. A creditor may determine that a financial claim can no longer be collected because of the debtor’s bankruptcy or other factors. In this case the creditor writes off the debt and removes the claim from its balance sheet by means of an entry in other changes in the volume of assets in the accounts. In this case, the write off of loans and placements will be recorded as other changes in the volume of loans and placements not elsewhere classified (for financial assets: ETF 5111, TALC 439 and for liabilities: ETF 5113, TALC 539). Further information on loans and placements can be found in paragraphs 8.180 to 8.182 of this manual.

Other changes in the volume of insurance, superannuation and standardised guarantee schemes (for financial assets: ETF 5211, TALC 44 and for liabilities: ETF 5213, TALC 54) records the value of other changes in the volume of assets (ETF 5211, TALC 44) and liabilities (ETF 5213, TALC 54) held in connection to insurance, superannuation and standardised guarantee schemes operated or participated in by public sector units or where a public sector unit is a policy holder. In GFS, other changes in the volume of insurance, superannuation and standardised guarantee schemes are further classified as:

• Other changes in the volume of non-life insurance technical reserves (for financial assets: ETF 5211, TALC 441 and for liabilities: ETF 5213, TALC 541); 
• Other changes in the volume of life insurance and annuities entitlements (for financial assets: ETF 5211, TALC 442 and for liabilities: ETF 5213, TALC 542); 
• Other changes in the volume of provisions for defined benefit superannuation (for financial assets: ETF 5211, TALC 443 and for liabilities: ETF 5213, TALC 543); 
• Other changes in the volume of claims of superannuation funds on superannuation managers (for financial assets: ETF 5211, TALC 444 and for liabilities: ETF 5213, TALC 544); and
• Other changes in the volume of provisions for calls under standardised guarantee schemes (for financial assets: ETF 5211, TALC 445 and for liabilities: ETF 5213, TALC 545).

Other changes in the volume of non-life insurance technical reserves (for financial assets: ETF 5211, TALC 441 and for liabilities: ETF 5213, TALC 541) records the value of other changes in the volume of technical reserve assets (ETF 5211, TALC 441) and liabilities (ETF 5213, TALC 541) for non-life insurance schemes operated by public sector units. Increases or decreases in the volume of non-life insurance technical reserves may take place to meet the requirements of the non-life insurance scheme if there are increases in the volume of eligible non-life insurance policyholders, or reductions in the number of eligible non-life insurance holders due to the closure of new applications to the associated non-life insurance scheme. Further information on non-life insurance technical reserves can be found in paragraphs 8.184 to 8.185 of this manual.

Other changes in the volume of life insurance and annuities entitlements (for financial assets: ETF 5211, TALC 442 and for liabilities: ETF 5213, TALC 542) records the value of other changes in the volume of life insurance and annuities entitlement assets (ETF 5211, TALC 442) liabilities (ETF 5213, TALC 542) held by public sector units. Paragraph 10.71 of the IMF GFSM notes that for an annuity, the relationship between the expected net premiums and benefits is usually determined when the contract is entered into, taking account of mortality data available at that time. Any subsequent changes will affect the liability of the annuity provider toward the beneficiary, and the consequences should be recorded as other changes in the volume of liabilities. Further information on life insurance and annuities entitlements can be found in paragraphs 8.186 to 8.187 of this manual.

Other changes in the volume of provisions for defined benefit superannuation (for financial assets: ETF 5211, TALC 443 and for liabilities: ETF 5213, TALC 543) records the value of other changes in the volume of provisions for defined benefit superannuation in the form of assets (ETF 5211, TALC 443) and liabilities ETF 5213, TALC 543) for defined benefit superannuation schemes operated by public sector units. Note that in Australian GFS, only the net liability position for changes in the volume of provisions for defined benefit superannuation (ETF 5213, TALC 543) is shown as no asset position exists. The asset position of changes in the volume of provisions for defined benefit superannuation (ETF 5211, TALC 443) is only maintained to align with the international standards and will report a zero balance.

Paragraph 10.72 of the IMF GFSM 2014 indicates that for defined benefit superannuation schemes, the level of benefits promised to participating employees is determined by a formula that is based on the participants’ length of service and salary. Changes in superannuation entitlements that are imposed without negotiation are recorded as other changes in the volume of assets. That is because such changes are assumed to be imposed unilaterally by the employer and do not constitute a capital transfer negotiated by mutual agreement.

Paragraph 10.73 of the IMF GFSM 2014 notes for a defined benefit superannuation scheme, any changes in the value of the liability due to changes in the formula used to determine benefits, and due to changes in demographic assumptions about the life span, should be recorded through other changes in the volume of provisions for defined benefit superannuation (for liabilities: ETF 5213, TALC 543). If the projected benefit obligation method is used to value superannuation entitlements, an adjustment through other changes in the volume of provisions for defined benefit superannuation (for liabilities: ETF 5213, TALC 543) is needed if the employer makes a unilateral decision without the agreement of the participating employees for structural change in the way promotion and merit increases are awarded. Further information on provisions for defined benefit superannuation can be found in paragraphs 8.188 to 8.190 of this manual.

Other changes in the volume of claims of superannuation funds on superannuation managers (for financial assets: ETF 5211, TALC 444 and for liabilities: ETF 5213, TALC 544) records the value of other changes in the volume of assets (ETF 5211, TALC 444) and liabilities (ETF 5213, TALC 544) relating to claims of superannuation funds on superannuation managers. Changes in the volume of claims of superannuation funds on superannuation fund managers are recorded through an other changes in the volume of claims of superannuation funds on superannuation managers (for financial assets: ETF 5211, TALC 444) and (for liabilities: ETF 5213, TALC 544) entry in the accounts. Further information on claims of superannuation fund on superannuation managers can be found in paragraph 8.191 of this manual.

Other changes in the volume of provisions for calls under standardised guarantee schemes (for financial assets: ETF 5211, TALC 445 and for liabilities: ETF 5213, TALC 545) records the value of other changes in the volume of assets (ETF 5211, TALC 445) and liabilities (ETF 5213, TALC 545) relating to provisions for calls under standardised guarantees held by public sector units. Paragraph 10.75 of the IMF GFSM 2014 notes that changes to provisions for calls under standardised guarantee schemes not resulting from transactions and holding gains and losses are shown as other changes in volume of assets and liabilities. For example, such other changes in volume of assets and liabilities occur whenever a significant change to the expected level of calls is recognised beyond any asset recovery. Further information on provisions for calls under standardised guarantee schemes can be found in paragraphs 8.192 to 8.193 of his manual.

Other changes in the volume of other financial assets / other liabilities (for financial assets: ETF 5211, TALC 45 and for liabilities: ETF 5213, TALC 55) records the value of other changes in the volume of other financial assets (ETF 5211, TALC 45) and liabilities (ETF 5213, TALC 55) held by public sector units. In GFS, other changes in the volume of other financial assets / liabilities are further classified as:

• Other changes in the volume of provisions for employee entitlements (for financial assets: ETF 5211, TALC 451 and for liabilities: ETF 5213, TALC 551); 
• Other changes in the volume of accounts receivable / accounts payable (for financial assets: ETF 5211, TALC 452 and for liabilities: ETF 5213, TALC 552); and 
• Other changes in the volume of other financial assets / other liabilities not elsewhere classified (for financial assets: ETF 5211, TALC 459 and for liabilities: ETF 5213, TALC 559).

Other changes in the volume of provisions for employee entitlements other than superannuation (for financial assets: ETF 5211, TALC 451 and for liabilities: ETF 5213, TALC 551) records the value of other changes in the volume of provisions for employee entitlements other than superannuation in the form of assets (ETF 5211, TALC 451) and liabilities (ETF 5213, TALC 551) that are held by public sector units. Note that in Australian GFS, only the net liability position for changes in the volume of provisions for employee entitlements other than superannuation (ETF 5213, TALC 551) is shown. The asset position of changes in the volume of provisions for employee entitlements other than superannuation (ETF 5211, TALC 451) is only maintained to align with the international standards and will report a zero balance.

Changes in the volume of provisions for employee entitlements other than superannuation may be necessary if there are changes in the volume of employees, and must be recorded through an other changes in the volume of provisions for employee entitlements other than superannuation (for liabilities: ETF 5213, TALC 551) entry in the accounts. Further information on provisions for employee entitlements other than superannuation can be found in paragraphs 8.195 to 8.197 of this manual.

Other changes in the volume of accounts receivable (ETF 5211, TALC 452) and accounts payable (ETF 5213, TALC 552) records the value of other changes in the volume of accounts receivable (ETF 5211, TALC 452) and on accounts payable (ETF 5213, TALC 552) that are held by public sector units. Paragraph 10.84 of the IMF GFSM 2014 notes that if the amount payable under a financial derivative remains due for payment after it matures, the amount due no longer represents a financial derivative because the value is fixed. It is therefore reclassified as an accounts receivable (ETF 5221, TALC 452) or as an accounts payable (ETF 5213, TALC 552). Further information on accounts receivable and accounts payable can be found in paragraphs 8.198 to 8.200 of this manual.

Other changes in the volume of other financial assets not elsewhere classified (for financial assets: ETF 5211, TALC 459) and other liabilities not elsewhere classified (for liabilities: ETF 5213, TALC 559) records the value of other changes in the volume of other financial assets not elsewhere classified (ETF 5111, TALC 459) and other liabilities not elsewhere classified (ETF 5113, TALC 559) held by public sector units. Changes in the volume of other financial assets are recorded through an other changes in the volume of other financial assets not elsewhere classified (ETF 5211, TALC 459) entry in the accounts, and other liabilities are recorded through an other liabilities not elsewhere classified (ETF 5213, TALC 559) entry in the accounts. Further information on other financial assets (and other liabilities) not elsewhere classified can be found in paragraph 8.201 of this manual.

Other changes in the volume of assets may occur on both produced and non-produced non-financial assets. In GFS, other changes in the volume of non-financial assets are further classified as:

• Other changes in the volume of fixed produced assets (ETF 5212, TALC 1); 
• Other changes in the volume of other produced assets (ETF 5212, TALC 2); and 
• Other changes in the volume of non-produced assets (ETF 5212, TALC 3).

Other changes in the volume of fixed produced assets (ETF 5212, TALC 1) records the value of other changes in the volume of fixed produced assets (net of depreciation) (ETF 5212, TALC 1) held by public sector units. Other changes in the volume of fixed produced assets may arise through many different events. Paragraphs 10.64 to 10.69, and 10.83 of the IMF GFSM 2014 list some of these events as:

• The calculation of depreciation reflects an assumption about normal rates of physical deterioration, obsolescence, and accidental damage of non-financial produced assets. There is a risk that these assumptions may prove to be erroneous. In that case, an adjustment in the form of other changes in the volume of assets must be made to adjust for errors in assumptions on the rates of depreciation on non-financial produced assets.
• Physical deterioration of non-financial produced assets may include the effects of unforeseen environmental degradation. Entries must be made through other changes in the volume of assets for the decline in the value of the non-financial produced assets from (for example), the unforeseen effects of acidity in the air or acid rain on building surfaces or vehicle bodies. 
• The introduction of improved technology can render an asset obsolete or accelerate the rate of obsolescence of non-financial produced assets. For example, improved models of the asset or of a new production process that no longer requires the asset, may lead to unforeseen obsolescence. In consequence, the amount included in depreciation for their expected obsolescence may have been underestimated, so an entry in other changes in the volume of non-financial produced assets should be recorded.
• The assumptions about normally expected damage to non-financial produced assets may fall short of the actual damage done. Adjustments must therefore be made through other changes in the volume of assets for the decline in the value of the non-financial produced assets due to these events. Damage to non-financial produced assets that is more significant than normal wear and tear (but not on a scale sufficiently large to be considered catastrophic), is recorded as other changes in the volume of non-financial produced assets. 
• Costs of ownership transfer on non-produced assets other than land should be written off over the expected time that the asset will be in the possession of the purchaser through depreciation. To maintain the integration of stock positions and flows, the costs of ownership transfer of nonproduced assets other than land and the depreciation relating to these costs are reclassified to the respective non-produced assets through an entry in other changes in the volume of assets. This reclassification is considered to take place at the time of recording the transactions in cost of ownership transfer and depreciation, respectively. If the asset is disposed of before the costs of ownership transfer are completely written off, the remainder should be recorded as an other change in the volume of assets.

In GFS, other changes in the volume of fixed produced assets are further classified as:

• Other changes in the volume of buildings and structures (ETF 5212, TALC 11); 
• Other changes in the volume of machinery and equipment (ETF 5212, TALC 12); 
• Other changes in the volume of cultivated biological resources (ETF 5212, TALC 13); 
• Other changes in the volume of intellectual property products (ETF 5212, TALC 14); and 
• Other changes in the volume of weapons systems (ETF 5212, TALC 15).

Other changes in the volume of buildings and structures (ETF 5212, TALC 11) records the value of other changes in the volume of buildings and structures (ETF 5212, TALC 11) that are held by public sector units. In GFS, other changes in the volume of buildings and structures are further classified as:

• Other changes in the volume of dwellings (ETF 5212, TALC 111); 
• Other changes in the volume of buildings other than dwellings (ETF 5212, TALC 112); 
• Other changes in the volume of land improvements (ETF 5212, TALC 113); and
• Other changes in the volume of structures not elsewhere classified (ETF 5212, TALC 119).

Other changes in the volume of dwellings (ETF 5212, TALC 111) records the value of other changes in the volume of dwellings (ETF 5212, TALC 111) owned by public sector units. Other changes in the volume of dwellings may arise through a number of different events including partial or complete destruction due to fire, flood, cyclone, or other such catastrophic damage; a change in the nature or function of the dwelling that requires it to be reclassified (for example) as a commercial building or as a private dwelling; or damage by tenants that is excessive to normal wear and tear. A new investment in dwellings is not an other change in the volume of assets, but a transaction under acquisitions of new non-financial assets (ETF 4114, TALC 111, COFOG-A, SDC), or as capital formation (ETF 4113, TALC 111, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under capital formation (ETF 76, TALC 111, COFOG-A). Further information on dwellings can be found in paragraphs 8.57 to 8.58 of this manual.

Other changes in the volume of buildings other than dwellings (ETF 5212, TALC 112) records the value of other changes in the volume of buildings other than dwellings (ETF 5212, TALC 112) owned by public sector units. Other changes in the volume of buildings other than dwellings may arise through a number of different events including partial or complete destruction due to fire, flood, cyclone, or other such catastrophic damage; a change in the nature or function of the building that requires it to be reclassified out of this category or sector; or other damage that is excessive to normal wear and tear. A new investment in buildings other than dwellings is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 112, COFOG-A, SDC), or as own-account capital formation (ETF 4113, TALC 112, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 112, COFOG-A).

Paragraph 10.50 of the IMF GFSM 2014 states that when a special archaeological, historical, or cultural significance of a structure or site not already recorded in the balance sheet is first recognised, it is classified as other changes in the volume of assets. For example, such recognition might be accorded to an existing structure or site that is fully written off and thus no longer recorded in the balance sheet. Alternatively, a structure or site that is already within the asset boundary, but is new or only partially written off, may be assessed as having the status of a public monument. If the monument was previously written off, then its recognition as a public monument is classified as other changes in the volume of assets. If it was previously classified as another type of asset, it is recorded as a reclassification of an asset. If at the same time a new valuation is placed on the monument, this increase in value is recorded as other changes in the volume of assets. Further information on buildings other than dwellings can be found in paragraphs 8.59 to 8.60 of this manual.

Other changes in the volume of land improvements (ETF 5212, TALC 113) records the value of other changes in the volume of improvements to land (ETF 5212, TALC 113) by public sector units. Other changes in the volume of land improvements may arise through a number of different events including partial or complete destruction due to fire, flood, cyclone, or other such catastrophic damage; or other damage that is excessive to normal wear and tear. Additions of new land improvements are not other changes in the volume of assets, but are transactions under acquisitions of non-financial assets (ETF 4114, TALC 113, COFOG-A, SDC), or as own-account capital formation (ETF 4113, TALC 113, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 113, COFOG-A). Further information on land improvements can be found in paragraphs 8.61 to 8.64 of this manual.

Other changes in the volume of structures not elsewhere classified (ETF 5212, TALC 119) records the value of other changes in the volume of structures not elsewhere classified (ETF 5112, TALC 119) owned by public sector units. Other changes in the volume of structures not elsewhere classified may arise through a number of different events including partial or complete destruction of the structure due to fire, flood, cyclone, or other such catastrophic damage; or other damage that is excessive to normal wear and tear. A new investment in other structures not elsewhere classified is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 119, COFOG-A, SDC), or as own-account capital formation (ETF 4113, TALC 119, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 119, COFOG-A). Further information on structures not elsewhere classified can be found in paragraphs 8.65 to 8.66 of this manual.

Other changes in the volume of machinery and equipment (ETF 5212, TALC 12) records the value of other changes in the volume of machinery and equipment (ETF 5112, TALC 12) (net of depreciation) owned by public sector units. In GFS, other changes in the volume of machinery and equipment are further classified as:

• Other changes in the volume of transport equipment (ETF 5212, TALC 121); 
• Other changes in the volume of information, computer, and telecommunication equipment (ETF 5212, TALC 122); and
• Other changes in the volume of machinery and equipment not elsewhere classified (ETF 5212, TALC 129).

Other changes in the volume of transport equipment (ETF 5212, TALC 121) records the value of other changes in the volume of transport equipment (ETF 5212, TALC 121) owned by public sector units. Other changes in the volume of transport equipment may arise through a number of different events including partial or complete destruction of the physical equipment due to fire, flood, cyclone, or other such catastrophic damage; or other damage that is excessive to normal wear and tear. Also included are changes in the volume of transport equipment due to obsolescence as a result of changes in technology, or some change in the reason that the transport equipment is used (i.e., deliveries to a remote location ceases or are reduced). A new investment in transport equipment is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 121, COFOG-A, SDC), or as ownaccount capital formation (ETF 4113, TALC 121, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 121, COFOG-A). Further information on transport equipment can be found in paragraph 8.68 of this manual.

Other changes in the volume of information, computer, and telecommunication equipment (ETF 5212, TALC 122) records the value of other changes in the volume of information, computer, and telecommunication equipment (ETF 5212, TALC 122) owned by public sector units. Other changes in the volume of information, computer, and telecommunication equipment may arise through a number of different events including partial or complete destruction of the physical equipment due to fire, flood, cyclone, or other such catastrophic damage; or other damage that is excessive to normal wear and tear. Also included are changes in the volume of information, computer, and telecommunication equipment due to obsolescence as a result of changes in technology, or some change in the way that the equipment is used (e.g. static computer equipment is replaced with laptops or tablets). A new investment in information, computer, and telecommunication equipment is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 122, COFOG-A, SDC). Further information on information, computer, and telecommunication equipment can be found in paragraphs 8.69 to 8.70 of this manual.

Other changes in the volume of machinery and equipment not elsewhere classified (ETF 5212, TALC 129) records the value of other changes in the volume of machinery and equipment not elsewhere classified (ETF 5212, TALC 129) owned by public sector units. Other changes in the volume of machinery and equipment not elsewhere classified may arise through a number of different events including partial or complete destruction of the physical equipment due to fire, flood, cyclone, or other such catastrophic damage; or other damage that is excessive to normal wear and tear. Also included are changes in the volume of other machinery and equipment not elsewhere classified due to obsolescence as a result of changes in technology, or some change in the way that the machinery or equipment is used. A new investment in other machinery and equipment not elsewhere classified is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 129, COFOG-A, SDC), or as own-account capital formation (ETF 4113, TALC 129, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 129, COFOG-A). Further information on machinery and equipment not elsewhere classified can be found in paragraphs 8.71 to 8.73 of this manual.

This item records the value of other changes in the volume of cultivated biological resources (ETF 5212, TALC 13) (net of depreciation) owned by public sector units. In GFS, other changes in the volume of cultivated biological resources are further classified as:

• Other changes in the volume of animal resources yielding repeat products (ETF 5212, TALC 131); and
• Other changes in the volume of tree, crop, and plant resources yielding repeat products (ETF 5212, TALC 132).

Other changes in the volume of animal resources yielding repeat products (ETF 5212, TALC 131) records the value of other changes in the volume of animal resources yielding repeat products (ETF 5212, TALC 131) owned by public sector units. Other changes in the volume of animal resources yielding repeat products may arise through a number of different events including partial or complete destruction of the physical resources due to fire, flood, disease, drought, or other such catastrophic damage. Also included are changes in the volume of animal resources yielding repeat products due to growth in numbers from natural breeding, and obsolescence as a result of some change in the way that the resources are used (i.e., an abattoir closes down). A new investment in animal resources yielding repeat products is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 131, COFOG-A, SDC). Further information on animal resources yielding repeat products can be found in paragraphs 8.75 to 8.77 of this manual.

Other changes in the volume of tree, crop, and plant resources yielding repeat products (ETF 5212, TALC 132) records the value of other changes in the volume of tree, crop, and plant resources yielding repeat products (ETF 5212, TALC 132) owned by public sector units. Other changes in the volume of tree, crop, and plant resources yielding repeat products may arise through a number of different events including partial or complete destruction of the physical resources due to fire, flood, disease, drought, or other such catastrophic damage. Also included are changes in the volume of tree, crop, and plant resources yielding repeat products due to natural growth, and through obsolescence as a result of some change in the way that the resources are used (i.e., the land that crops are grown on is rezoned for housing and the growing operation is shut down). A new investment in tree, crop, and plant resources yielding repeat products is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 132, COFOG-A, SDC). Further information on tree, crop, and plant resources yielding repeat products can be found in paragraphs 8.78 to 8.81 of this manual

Other changes in the volume of intellectual property products (ETF 5212, TALC 14) records the value of other changes in the volume of intellectual property products (ETF 5212, TALC 14) (net of amortisation) owned by public sector units. In GFS, other changes in the volume of intellectual property products are further classified as:

• Other changes in the volume of research and development (ETF 5212, TALC 141); 
• Other changes in the volume of mineral exploration and evaluation (ETF 5212, TALC 142); 
• Other changes in the volume of computer software (ETF 5212, TALC 143); 
• Other changes in the volume of databases (ETF 5212, TALC 144); 
• Other changes in the volume of entertainment, literary, and artistic originals (ETF 5212, TALC 145); and 
• Other changes in the volume of intellectual property products not elsewhere classified (ETF 5212, TALC 149).

Other changes in the volume of research and development (ETF 5212, TALC 141) records the value of other changes in the volume of research and development (ETF 5212, TALC 141) undertaken by public sector units. Other changes in the volume of research and development may arise through obsolescence as a result of some change in the way that the research and development is used (i.e., a change in technology means that research and development into a particular issue may need to be abandoned). A new investment in research and development is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 141, COFOG-A, SDC), or as own-account capital formation (ETF 4113, TALC 141, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 141, COFOG-A). Further information on research and development can be found in paragraphs 8.83 to 8.85 of this manual.

Other changes in the volume of mineral exploration and evaluation (ETF 5212, TALC 142) records the value of other changes in the volume of mineral exploration and evaluation (ETF 5212, TALC 142) undertaken by public sector units. Other changes in the volume of mineral exploration and evaluation may arise through obsolescence as a result of events such as the exploration and evaluation leading to insufficient quantities of the mineral resource to make continuation economically viable, or some advance in technology which changes the way that the mineral exploration and evaluation is conducted. A new investment in mineral exploration and evaluation is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 142, COFOG-A, SDC), or as ownaccount capital formation (ETF 4113, TALC 142, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 142, COFOG-A). Further information on mineral exploration and evaluation can be found in paragraphs 8.86 to 8.87 of this manual.

This item records the value of other changes in the volume of computer software (ETF 5212, TALC 143) owned by public sector units. Other changes in the volume of computer software may arise due to obsolescence as a result of changes in technology, or some change in the way that the computer software is used. A new investment in computer software is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 143, COFOG-A, SDC), or as ownaccount capital formation (ETF 4113, TALC 143, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 143, COFOG-A). Further information on computer software can be found in paragraphs 8.88 to 8.89 of this manual.

Other changes in the volume of databases (ETF 5212, TALC 144) records the value of other changes in the volume of databases (ETF 5112, TALC 144) owned by public sector units. Other changes in the volume of databases may arise due to obsolescence as a result of changes in technology, or some change in the way that the database is used. A new investment in databases is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 144, COFOG-A, SDC), or as own-account capital formation (ETF 4113, TALC 144, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 144, COFOG-A). Further information on databases can be found in paragraph 8.90 of this manual.

Other changes in the volume of entertainment, literary, and artistic originals (ETF 5212, TALC 145) records the value of other changes in the volume of entertainment, literary, and artistic originals (ETF 5212, TALC 145) owned by public sector units. Other changes in the volume of entertainment, literary, and artistic originals may arise through the partial or complete destruction of the physical originals due to fire, flood, or other such catastrophic damage. A new investment in entertainment, literary, and artistic originals is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 145, COFOG-A, SDC). Further information on entertainment, literary, and artistic originals can be found in paragraph 8.91 of this manual.

Other changes in the volume of intellectual property products not elsewhere classified (ETF 5212, TALC 149) records the value of other changes in the volume of intellectual property products not elsewhere classified (ETF 5212, TALC 149) owned by public sector units. Other changes in the volume of intellectual property products not elsewhere classified may arise due to obsolescence as a result of changes in technology, or some change in the way that the other intellectual property product is used. A new investment in intellectual property products is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 149, COFOG-A, SDC), or as ownaccount capital formation (ETF 4113, TALC 149, COFOG-A, SDC) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 149, COFOG-A). Further information on intellectual property products not elsewhere classified can be found in paragraphs 8.92 to 8.93 of this manual.

Other changes in the volume of weapons systems (also known as defence weapons platforms) (ETF 5212, TALC 151) records the value of other changes in the volume of weapons systems (ETF 5212, TALC 151) owned by public sector units. Other changes in the volume of weapons systems may arise due to obsolescence as a result of changes in technology. A new investment in weapons systems is not an other change in the volume of assets, but a transaction under acquisitions of non-financial assets (ETF 4114, TALC 151, COFOG-A, SDC). Further information on weapons systems (also known as defence weapons platforms) can be found in paragraphs 8.94 to 8.95 of this manual.

Other changes in the volume of other produced assets (ETF 5212, TALC 2) records the value of other changes in the volume of other non-financial produced assets (ETF 5212, TALC 2) (net of depreciation) owned by public sector units. In GFS, other changes in the volume of other produced assets are further classified as:

• Other changes in the volume of inventories (ETF 5212, TALC 21); 
• Other changes in the volume of valuables (ETF 5212, TALC 22); and 
• Other changes in the volume of other produced assets (ETF 5212, TALC 23).

Other changes in the volume of inventories (ETF 5212, TALC 21) records the value of other changes in the volume of inventories (ETF 5112, TALC 21) that are owned by public sector units. Paragraph 10.70 of the IMF GFSM 2014 notes that exceptional inventory losses from fire, robbery, insect and vermin infestation of grain stores, and unusually high levels of disease in livestock, etc. are included as other changes in the volume of assets. In this context, exceptional losses indicate that the losses are not only large in value, but also irregular in occurrence. Even very large losses that occur regularly should be taken into account when calculating the net change in inventories. The adjustment for unforeseen damage could be an increase in assets if the actual damage falls short of the assumption for losses.

In GFS, other changes in the volume of inventories are further classified as:

• Other changes in the volume of inventories - materials and supplies (ETF 5212, TALC 211);
• Other changes in the volume of inventories - work in progress (ETF 5212, TALC 212); 
• Other changes in the volume of inventories - finished goods (ETF 5212, TALC 213); 
• Other changes in the volume of inventories - goods for resale (ETF 5212, TALC 214); and 
• Other changes in the volume of military inventories (ETF 5212, TALC 215).

Other changes in the volume of inventories - materials and supplies (ETF 5212, TALC 211) records the value of other changes in the volume of inventories of materials and supplies (ETF 5112, TALC 211) owned by public sector units. During the production process, inventories of materials and supplies are reclassified to work in progress through an other change in the volume of assets entry in the accounts. Paragraph 10.82 of the IMF GFSM 2014 notes that the reclassification from one type of inventory to another or from non-financial produced assets to inventories should not involve a change in value. If at the time of conversion, the previous value is different from the appropriate new value, a holding gain or loss should be recorded to account for the difference. If this is found to be happening systematically, the valuation techniques for inventories should be re-examined. Further information on inventories - materials and supplies can be found in paragraphs 8.98 to 8.100 of this manual.

Other changes in the volume of inventories - work in progress (ETF 5212, TALC 212) records the value of other changes in the volume of inventories of work in progress (ETF 5212, TALC 212) owned by public sector units. During the production process, inventories of work in progress are reclassified to finished goods prior to sale through an other change in the volume of assets entry in the accounts. Paragraph 10.82 of the IMF GFSM 2014 notes that the reclassification from one type of inventory to another or from nonfinancial produced assets to inventories should not involve a change in value. If at the time of conversion, the previous value is different from the appropriate new value, a holding gain or loss should be recorded to account for the difference. If this is found to be happening systematically, the valuation techniques for inventories should be re-examined. Further information on inventories - work in progress can be found in paragraphs 8.101 to 8.104 of this manual.

Other changes in the volume of inventories - finished goods (ETF 5212, TALC 213) records the value of other changes in the volume of inventories of finished goods (ETF 5212, TALC 213) owned by public sector units. During the production process, inventories of finished goods are reclassified to goods for resale through an other change in the volume of assets entry in the accounts. Paragraph 10.82 of the IMF GFSM 2014 notes that the reclassification from one type of inventory to another or from non-financial produced assets to inventories should not involve a change in value. If at the time of conversion, the previous value is different from the appropriate new value, a holding gain or loss should be recorded to account for the difference. If this is found to be happening systematically, the valuation techniques for inventories should be re-examined. Further information on inventories - finished goods can be found in paragraph 8.105 of this manual.

Other changes in the volume of inventories - goods for resale (ETF 5212, TALC 214) records the value of other changes in the volume of inventories of goods for resale (ETF 5112, TALC 214) owned by public sector units. Paragraph 10.82 of the IMF GFSM 2014 notes that the reclassification from one type of inventory to another or from non-financial produced assets to inventories should not involve a change in value. If at the time of conversion, the previous value is different from the appropriate new value, a holding gain or loss should be recorded to account for the difference. If this is found to be happening systematically, the valuation techniques for inventories should be re-examined. Further information on inventories - goods for resale can be found in paragraphs 8.106 to 8.109 of this manual.

Other changes in the volume of inventories - military inventories (ETF 5212, TALC 215) records the value of other changes in the volume of military inventories (ETF 5212, TALC 215) owned by public sector units. Included are changes in the volume of single-use items, such as ammunition, missiles, rockets, bombs, etc., delivered by weapons or weapons systems. Further information on military inventories can be found in paragraphs 8.110 to 8.112 of this manual.

Other changes in the volume of valuables (ETF 5212, TALC 221) records the value of other changes in the volume of valuables (ETF 5212, TALC 221) (net of depreciation) owned by public sector units. Paragraph 10.50 of the IMF GFSM 2014 states that valuables (such as precious stones, antiques, and other art objects), for which the high value or artistic significance has not already been recorded in the balance sheet, should be recognised through an other change in the volume of assets entry in the accounts. Prior to this the object may have been of little value and not considered an asset. For example, the item might have been considered an ordinary good whose purchase was recorded as an expense, classified in use of goods and services (ETF 1233). Recognition of its worth as a store of value leads to its entrance into the balance sheet as a valuable. The recognition of the value of a existing item is often necessitated by a sale (e.g., at auction). The sale is recorded as a transaction under the disposal of non-financial assets only after the asset first entered into the balance sheet of the seller through an entry in other changes in the volume of assets. Further information on valuables can be found in paragraphs 8.113 to 8.115 of this manual.

Other changes in the volume of non-produced assets (ETF 5212, TALC 3) records the value of other changes in the volume of non-financial non-produced assets (ETF 5212, TALC 3) owned by public sector units. Paragraph 10.52 of the IMF GFSM 2014 states that a government unit can create an economic asset by exerting ownership rights over a naturally occurring asset that had not previously been recognised as an asset, such as the electromagnetic spectrum or fish stocks in exclusive economic zones. When this occurs, the asset enters the balance sheet through other changes in the volume of assets. It may be difficult to determine the exact time at which a natural asset should be added to the balance sheet, and to determine the value that should be attributed to it at that time. Often, the date at which the first substantial commercial exploitation begins or the signing of a contract to permit commercial exploitation is used to establish the time of recording. It is possible that some natural resources cease to be exploited because of changed technology, reduced demand for the resulting product, or for legislative reasons. When this change in use occurs, the asset is removed from the balance sheet through other changes in the volume of assets.

Paragraph 10.52 of the IMF GFSM 2014 notes that the difference between a quality change and a price change is a matter of degree, and it may not always be clear whether other changes in the volume of assets or a holding gain is most appropriate. For example, activities adjacent to land may change the volume of land (recorded as another volume change), while the value of land in the vicinity may also increase due to a rise in general price levels of land (recorded as holding gains).

In GFS, other changes in the volume of non-produced assets are further classified as:

• Other changes in the volume of tangible non-produced assets (ETF 5212, TALC 31);
• Other changes in the volume of intangible non-produced assets (ETF 5212, TALC 32); and
• Other changes in the volume of other non-produced assets (ETF 5212, TALC 39).

Other changes in the volume of tangible non-produced assets (ETF 5212, TALC 31) records the value of other changes in the volume of non-financial non-produced assets owned by government. In GFS, other changes in the volume of non-financial non-produced assets are further classified as:

• Other changes in the volume of land (ETF 5212, TALC 311); 
• Other changes in the volume of mineral and energy resources (ETF 5212, TALC 312); 
• Other changes in the volume of non-cultivated biological resources (ETF 5212, TALC 313); 
• Other changes in the volume of water resources (ETF 5212, TALC 314); 
• Other changes in the volume of radio spectra (ETF 5212, TALC 315); and 
• Other changes in the volume of tangible non-produced assets not elsewhere classified (ETF 5212, TALC 319).

Other changes in the volume of land (ETF 5212, TALC 311) records the value of other changes in the volume of land (ETF 5212, TALC 311) owned by public sector units. Paragraph 10.52 of the IMF GFSM 2014 states that not all land included in the geographic surface area of a country is necessarily within the asset boundary of GFS. Land may make its economic appearance when (for example) general economic development in nearby areas transforms the land from a wild or waste state to a state in which ownership rights can be enforced, and the land can be put to economic use. Land may also make its economic appearance (or enter the asset boundary) because of activity in the vicinity, for example land that becomes more accessible because a new development is established nearby or an access road built. Any excess in the value of the land over the value of land improvements, or any increase due to adjacent capital activity is recorded as economic appearance in GFS. For virgin forests, gathering firewood is not commercial exploitation, but large-scale harvesting of a virgin forest for timber is, and brings the forest into the asset boundary for GFS purposes.

Paragraph 10.52 of the IMF GFSM 2014 further notes that quality changes in natural resources that are already within the asset boundary due to changes in economic uses is regarded as the appearance of additional amounts of the asset. For example, the use of bare rural land changes when it becomes land underlying buildings and may result in a change in the balance sheet value that is recorded through an other change in the volume of the assets entry in the accounts. All degradation of land and other natural assets caused by economic activity should be recorded as negative other changes in the volume of assets. The degradation may be the anticipated result from regular economic activity or less predictable erosion and other damage to land from deforestation or improper agricultural practices. Further information on land can be found in paragraphs 8.120 to 8.122 of this manual.

Other changes in the volume of mineral and energy resources (ETF 5212, TALC 312) records the value of other changes in the volume of mineral and energy resources (ETF 5212, TALC 312) owned by public sector units. With regard to discoveries / extractions and upward / downward reappraisals of subsoil resources, paragraph 10.52 of the IMF GFSM 2014 states that the value of these resources may increase in the balance sheet by the discovery of new exploitable deposits, whether as a result of systematic scientific explorations or surveys, or by chance. Economic appearance may also occur because a deposit of subsoil minerals has become economically exploitable as a result of technological progress or relative price changes. Conversely, the value of these resources may decrease in the balance sheet by the depletion of deposits of subsoil assets as a result of the physical extraction and use of the assets, or from downward reappraisals that reduce their exploitability because of changes in technology or relative prices. Further information on mineral and energy resources can be found in paragraphs 8.123 to 8.126 of this manual.

Other changes in the volume of non-cultivated biological resources (ETF 5212, TALC 313) records the value of other changes in the volume of non-cultivated biological resources (ETF 5212, TALC 313) owned by public sector units. With regard to natural growth / harvesting of non-cultivated biological resources, paragraph 10.52 of the IMF GFSM 2014 states that the natural growth of non-cultivated biological resources (such as natural forests and fish stocks) may take various forms, for example, a stand of natural timber may grow taller, or fish in the estuaries may become more numerous. Although these resources are economic assets, growth of this kind is not under the direct control, responsibility, and management of an institutional unit, and so is not treated as a transaction in net investment in non-financial produced assets. In principle, natural growth should be recorded gross, and the depletion of these resources should be recorded as economic disappearance through an other change in volume entry in the accounts. In practice, however, the net natural growth may only be available because the net physical measures are likely to be available. The net physical measure multiplied by the market price for a unit of the asset may be used in estimating the value of the volume change to be recorded.

Paragraph 10.52 of the IMF GFSM 2014 further notes that the depletion of natural forests, fish stocks in the open seas, and other non-cultivated biological resources included in the asset boundary of general government or public sector units as a result of harvesting, forest clearance, or other use beyond sustainable levels of extraction constitutes an economic disappearance of assets and should be recorded as negative other changes in the volume of assets. It is possible that some natural resources cease to be exploited because of changed technology, reduced demand for the resulting product, or for legislative reasons. When this change in use occurs, the asset is removed from the balance sheet through other changes in the volume of assets. Further information on non-cultivated biological resources can be found in paragraphs 8.127 to 8.129 of this manual.

Other changes in the volume of water resources (ETF 5212, TALC 314) records the value of other changes in the volume of water resources (ETF 5212, TALC 314) owned by public sector units. Paragraph 10.52 of the IMF GFSM 2014 notes that a government unit can bring a previously unrecognised asset into the asset boundary of GFS by exerting ownership rights over a naturally occurring asset. When this occurs, the asset enters the balance sheet through other changes in the volume of assets. In the context of water resources, drawing water from a natural spring does not bring an aquifer into the asset boundary of GFS, but a significant diversion of ground water does. A move to charge for regular extraction from a body of surface water may also bring a water resource into the balance sheet. All degradation of water resources caused by economic activity should be recorded as negative other changes in the volume of assets. Further information on water resources can be found in paragraphs 8.130 to 8.131 of this manual.

Other changes in the volume of radio spectra (ETF 5212, TALC 315) records the value of other changes in the volume of radio spectra (ETF 5212, TALC 315) owned by public sector units. Paragraph 10.52 of the IMF GFSM 2014 states that a government unit can create an economic asset by exerting ownership rights over a naturally occurring asset that had not previously been recognised as an asset (such as the electromagnetic spectrum). When this occurs, the asset enters the balance sheet through other changes in the volume of assets. Further information on radio spectra can be found in paragraph 8.132 of this manual.

Other changes in the volume of tangible non-produced assets not elsewhere classified (ETF 5212, TALC 319) records the value of other changes in the volume of tangible non-produced assets owned by public sector units that are not elsewhere classified (ETF 5212, TALC 319). The entry and exit or change in the volume of other natural resources through degradation, discoveries, or natural growth, are recorded on the GFS balance sheet through an other change in volume entry in the accounts. Further information on tangible non-produced assets not elsewhere classified can be found in paragraph 8.133 of this manual.

Other changes in the volume of intangible non-produced assets (ETF 5212, TALC 32) records the value of other changes in the volume of intangible non-produced assets (ETF 5212, TALC 32) owned by public sector units. Paragraph 10.53 of the IMF GFSM 2014 recommends that assets in the form of contracts, leases, and licences should be recognised in the balance sheet of the holder only when the value of the asset can be realised. In this case, they are first recorded as other changes in the volume of assets and, subsequently, form the basis of a transaction (or series of transactions). The value of the contract, lease, or licence that is treated as an asset is equal to the present value of the excess of the prevailing price over the contract price. The value will decline as the remaining contract period shortens. Changes in the value of the contract, lease, or licence due to changes in the prevailing price are recorded as holding gains or losses (revaluations); changes due to the expiration of the time over which the contract, lease, or licence is valid are recorded as other changes in volume of assets (i.e. to write off the value of such an asset which is also referred to as amortisation). The rate at which the value is written down should be in accordance with generally accepted accounting principles. Further information on intangible non-produced assets can be found in paragraph 8.134 of this manual.

In GFS, other changes in the volume of intangible non-produced assets are further classified as:

• Other changes in the volume of marketable operating leases (ETF 5212, TALC 321);
• Other changes in the volume of permits to use natural resources (ETF 5212, TALC 322); 
• Other changes in the volume of permits to undertake specific activities (ETF 5212, TALC 323); 
• Other changes in the volume of entitlements to future goods and services on an exclusive basis (ETF 5212, TALC 324); 
• Other changes in the volume of goodwill and marketing assets (ETF 5212, TALC 325); and 
• Other changes in the volume of intangible non-produced assets not elsewhere classified (ETF 5212, TALC 329).

Other changes in the volume of marketable operating leases (ETF 5212, TALC 321) records the value of other changes in the volume of marketable operating leases (ETF 5112, TALC 321) owned by public sector units. Changes in the volume of marketable operating leases may arise through a number of events including the merging or splitting of government units through machinery of government or other structural changes. This may lead to changes in the volume of marketable operating leases, which are recorded through an other change in volume entry in the accounts. Further information on marketable operating leases can be found in paragraph 8.135 and Chapter 13 Part H of this manual.

Other changes in the volume of permits to use natural resources (ETF 5212, TALC 322) records the value of other changes in the volume of permits to use natural resources (ETF 5212, TALC 322) owned by public sector units. Changes in the volume of permits to use natural resources may arise through a number of events including the depletion of the natural resource leading to a necessary reduction in the permits allowing use, also legislative changes or restrictions may influence the volume of permits to use natural resources. These changes are recorded through an other change in volume entry in the accounts. Further information on permits to use natural resources can be found in paragraph 8.136 and Chapter 13 Part H of this manual.

Other changes in the volume of permits to undertake specific activities (ETF 5212, TALC 323) records the value of other changes in the volume of permits to undertake specific activities (ETF 5212, TALC 323) owned by public sector units. Changes in the volume of permits to undertake specific activities may arise through a number of events including legislative changes or restrictions which make the activity illegal (or vice versa), or a change in technology which makes the specific activity obsolete. These changes are recorded through an other change in volume entry in the accounts. Further information on permits to undertake specific activities can be found in paragraph 8.137 to 8.138 and Chapter 13 Part H of this manual.

Other changes in the volume of entitlements to future goods and services on an exclusive basis (ETF 5212, TALC 324) records the value of other changes in the volume of entitlements to future goods and services on an exclusive basis (ETF 5212, TALC 324) owned by public sector units. Changes in the volume of entitlements to future goods and services on an exclusive basis may arise through a number of events including a change in the need for the future goods and services, rendering the need for exclusive entitlement obsolete. These changes are recorded through an other change in volume entry in the accounts. Further information on entitlements to future goods and services on an exclusive basis can be found in paragraph 8.139 of this manual.

Other changes in the volume of goodwill and marketing assets (ETF 5112, TALC 325) records the value of other changes in the volume of goodwill and marketing assets (ETF 5112, TALC 325) owned by public sector units. Paragraph 10.54 of the IMF GFSM 2014 notes that when an enterprise (whether a corporation, quasi-corporation, or unincorporated enterprise) is sold, the price payable may not equal the sum of all the assets minus the liabilities of the enterprise. The difference between the price payable and the sum of all the assets minus liabilities is called the purchased goodwill and marketing assets of the buyer. The value may be positive or negative (or zero). Because the purchased goodwill and marketing assets is equal to the difference in the price payable and the sum of all the assets minus liabilities, when the buyer includes goodwill and marketing assets in the calculation of the net worth of the enterprise at the moment it is bought, net worth will be exactly zero.

Paragraph 10.55 of the IMF GFSM 2014 states that the value of purchased goodwill and marketing assets is calculated at the time of the sale, and entered in the books of the seller as an other change in the volume of assets. Subsequently, it is then exchanged as a transaction with the purchaser. Thereafter, the value of the purchased goodwill and marketing asset must be written down in the books of the purchaser via entries under other changes in the volume of assets. The rate at which it is written down should be in accordance with generally accepted accounting principles.

Paragraph 10.55 of the IMF GFSM 2014 notes that goodwill which is not evidenced by a sale or purchase, is not considered to be an economic asset in GFS. In some exceptions, a marketing asset may be subject to sale. When this is the case, entries should be made for the buyer and the seller along the lines of those made for purchased goodwill and marketing assets when the entire enterprise is sold. Further information on goodwill and marketing assets can be found in paragraphs 8.140 to 8.142 of this manual.

Other changes in the volume of intangible non-produced assets not elsewhere classified (ETF 5212, TALC 329) records the value of other changes in the volume of intangible non-produced assets not elsewhere classified (ETF 5212, TALC 329) owned by public sector units. Changes in the volume of intangible nonproduced assets may arise through a number of events including the merging or splitting of government units through machinery of government or other structural changes. This may lead to changes in the volume of marketable operating leases, which are recorded through an other change in volume entry in the accounts. Further information on intangible non-produced assets not elsewhere classified can be found in paragraphs 8.143 to 8.144 of this manual.

Other changes in the volume of other non-financial non-produced assets (ETF 5212, TALC 33 and TALC 339) records the value of other changes in the volume of other non-financial non-produced assets (ETF 5212, TALC 33 and TALC 339) owned by public sector units. Changes in the volume of other non-financial non-produced assets not elsewhere classified may arise through a number of events including the merging or splitting of government units through machinery of government or other structural changes. Further information on other non-financial non-produced assets not elsewhere classified can be found in paragraph 8.145 of this manual.

Change in net worth due to other changes in volume (ETF 5221) is used to record the change in net worth due to other changes in volume during the reporting period. Paragraph 10.2 of the IMF GFSM 2014 defines the change in net worth due to other changes in volume as the sum of all positive or negative other changes in the volume of assets and liabilities. Further information on the change in net worth can be found in Chapter 11 Part F of this manual.