Part F - The classification of transactions in non-financial assets

In Australian GFS, input data is sourced from the financial accounts of the state and territory treasuries, the Department of Finance, local government units, and universities. This input data is classified to the GFS framework using a variety of input classifications in order to produce the variety of output statements that the ABS publish on a quarterly and annual basis.

Detailed data on transactions in non-financial assets are used to populate the statement of stocks and flows for the Commonwealth general government, state and territory general government, and local general government sectors. The statement of stocks and flows is further discussed in Chapter 15 of this manual.

In GFS, transactions in non-financial assets are recorded by type using the transactions in non-financial assets classification in the economic type framework (ETF 4). In order to record the requisite level of detail on non-financial assets for GFS purposes, additional classifications must be used to further classify transactions in non-financial assets (ETF 4). These include:

• Type of asset and liability classification (TALC) - this classification is used to identify non-financial assets and financial assets and liabilities by type of asset / liability (for further information on the TALC, see paragraphs 4.53 to 4.69, paragraphs 8.54 to 8.145 and Appendix 1 Part A of this manual).
• Own-account capital formation (ETF 76) - this classification only relates to the own-account capital formation (ETF 4113) classification and is used to further identify transactions in non-financial assets that are created under own-account capital formation by type (for further information on own-account capital formation, see Appendix 1 Part B of this manual)
• Classification of the functions of government - Australia (COFOG-A) - this classification is used to classify selected revenues, all expenses, and all transactions in non-financial assets of the general government sector in terms of the government purpose (e.g. health, education, defence) of the expenditure (for further information on the COFOG-A, see paragraphs 4.86 to 4.98 and Appendix 1 Part C of this manual).

Transactions in non-financial assets are classified in the GFS framework in terms of acquisitions of nonfinancial assets and disposals of non-financial assets. The broad framework of transactions in non-financial assets is shown below in Table 9.1:

In GFS, acquisitions of non-financial assets (ETF 41 and ETF 411) records the transactions that increase a unit's holdings of non-financial assets. In GFS, acquisitions of non-financial assets are further classified as: 

• Change in inventories (ETF 4111, TALC, COFOG-A);
• Acquisitions of non-financial assets under new finance leases (ETF 4112, TALC, COFOG-A, SDC);
• Own-account capital formation (ETF 4113, TALC, COFOG-A);
• Acquisitions of other new non-financial assets (ETF 4114, TALC, COFOG-A, SDC); 
• Acquisitions of second-hand non-financial assets (ETF 4115, TALC, COFOG-A, SDC); and
• Costs of ownership transfer on non-produced assets other than land (ETF 4116, TALC, COFOG-A, SDC).

Change in inventories (ETF 4111, TALC, COFOG-A) records acquisitions and disposals of inventories during the reporting period. The net investment in inventories (change in inventories) is recorded as:

Acquisitions of non-financial assets under new finance leases (ETF 4112, TALC, COFOG-A, SDC) records the transactions that increase a unit's holdings of non-financial assets under new finance leases.

Own-account capital formation (ETF 4113, TALC, COFOG-A) records the transactions that increase a unit's holdings of non-financial assets due to own-account capital formation. This item is further classified using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC, COFOG-A). Further information on own-account capital formation can be found in Appendix 1 Part B.

Acquisitions of other new non-financial assets (ETF 4114, TALC, COFOG-A, SDC) record the transactions that increase a unit's holdings of other new non-financial assets.

Acquisitions of second-hand non-financial assets (ETF 4115, TALC, COFOG-A, SDC) record the transactions that increase a unit's holdings of second-hand non-financial assets.

Costs of ownership transfer on non-produced assets other than land (ETF 4116, TALC, COFOG-A, SDC) record the transactions relating to the costs of ownership transfers on non-produced assets other than land. In GFS, the costs of ownership transfer on land is recorded separately as part of land improvements (ETF 4111; or ETF 4112, SDC; or ETF 4113; or ETF 4114, SDC; or ETF 4115, SDC; TALC 113, COFOG-A). For all other non-produced assets, the costs of ownership transfer are recorded as a transaction in the costs of ownership transfer on non-produced assets other than land (ETF 4116, TALC, COFOG-A, SDC) classification and are added to the closing stock value of the related non-financial asset in the GFS balance sheet at the end of the reporting period. Costs of ownership transfer are further discussed in paragraphs 9.4 and 9.5 of this chapter, and Chapter 3 Part D and Chapter 8 Part D of this manual.

In GFS, disposals of non-financial assets (ETF 42, ETF 421) record the transactions that reduce a unit's holdings of non-financial assets. In GFS disposals of non-financial assets are further classified as:

• Disposals of non-financial assets (excluding depreciation) (ETF 4211, TALC, COFOG-A, SDC)
• Reductions in non-financial assets due to depreciation (ETF 4212, TALC)

Disposals of non-financial assets (excluding depreciation) (ETF 421, TALC, COFOG-A, SDC) records transactions that reduce a unit's holdings of non-financial assets with the exception of depreciation.

Reductions in non-financial assets due to depreciation (ETF 4212, TALC) records transactions that reduce a unit's holdings of non-financial assets as a result of depreciation.

The detailed classification of transactions in non-financial assets is shown in Table 9.3 below. This shows a hierarchical classification of non-financial assets, and additional classifications required.

As can be seen from Table 9.1, transactions in non-financial assets are classified using the transactions in non-financial assets classification (ETF 4) which provides the broad framework. Transactions in nonfinancial assets are further classified by the TALC to identify the type of non-financial asset. An appropriate COFOG-A code must be also be selected to identify the purpose of the transaction in non-financial assets. The letters and numbers in brackets that appear after each classification category in the below paragraphs signify the GFS classifications related to each category.

Transactions in produced assets record the value of acquisitions (ETF 41, TALC 1, COFOG-A) or disposals (ETF 42, TALC 1, COFOG-A) of non-financial produced assets. Increases to a unit's holdings of non-financial assets may come about through a number of forms including through:

• Change in inventories;
• Additions of new non-financial assets under new finance leases;
• Own-account capital formation;
• Additions of other new non-financial assets; and
• Additions of second-hand non-financial assets.

An important distinction must be made between recognising increases in a unit's holdings of non-financial produced assets through major improvements to assets versus the maintenance and repair of assets. Paragraph 8.25 of the IMF GFSM 2014 states that major improvements to existing assets (such as renovations, reconstructions, and enlargements) increase the productive capacity of the asset, extend its service life, or both. In GFS, major improvements are treated as a transaction and classified as the acquisition of non-financial produced assets. The value of the improvement becomes added to the value of the underlying asset at the end of the reporting period. If the major improvement is to land, however, the value of the improvement should be classified as land improvements (ETF 8113). Major improvements to assets and the maintenance and repair of assets is further discussed in Chapter 13 Part F of this manual.

In GFS, transactions in fixed produced assets are further classified as:

• Transactions in buildings and structures (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116; TALC 11, COFOG-A, SDC (excluding ETF 4113) or for disposals: ETF 4211; or ETF 4212, TALC 11, COFOG-A, SDC);
• Transactions in machinery and equipment (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116; TALC 12, COFOG-A, SDC (excluding ETF 4113) or for disposals: ETF 4211; or ETF 4212, TALC 12, COFOG-A, SDC);
• Transactions in cultivated biological resources (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116; TALC 13, COFOG-A, SDC (excluding ETF 4113) or for disposals: ETF 4211; or ETF 4212, TALC 13, COFOG-A, SDC);
• Transactions in intellectual property products (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116; TALC 14, COFOG-A, SDC (excluding ETF 4113) or for disposals: ETF 4211, TALC 14, COFOG-A, SDC); and
• Transactions in weapons systems (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116; TALC 15, COFOG-A, SDC (excluding ETF 4113) or for disposals: ETF 4211; or ETF 4212, TALC 15, COFOG-A, SDC).

Transactions in buildings and structures record the current market value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 11, COFOG-A, SDC(excluding ETF 4113)) and disposals (ETF 4211; or ETF 4212, TALC 11, COFOG-A, SDC) of buildings and associated structures. In GFS, transactions in buildings and structures are further classified as:

• Transactions in dwellings (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116; TALC 111, COFOG-A, SDC(excluding ETF 4113) or for disposals: ETF 4211; or ETF 4212, TALC 111, COFOG-A, SDC);
• Transactions in buildings other than dwellings (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116; TALC 112, COFOG-A, SDC(excluding ETF 4113) or for disposals: ETF 4211; or ETF 4212, TALC 112, COFOG-A, SDC);
• Transactions in land improvements (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116; TALC 113, COFOG-A, SDC(excluding ETF 4113) or for disposals: ETF 4211; or ETF 4212, TALC 113, COFOG-A, SDC); and
• Transactions in structures not elsewhere classified (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116; TALC 119, COFOG-A, SDC (excluding ETF 4113) or for disposals: ETF 4211; or ETF 4212, TALC 119, COFOG-A, SDC).

Transactions in dwellings record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116; TALC 111, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211; or ETF 4212, TALC 111, COFOG-A, SDC) of dwellings. Paragraph 8.28 of the IMF GFSM 2014 states that in addition to the transactions reflecting the acquisition of newly constructed buildings and structures (in this case dwellings), acquisitions include all amounts payable for site clearance and preparation and the cost of all fixtures, facilities, and equipment that are integral parts of buildings and structures. Further information on dwellings can be found in paragraphs 8.57 to 8.58 of this manual.

Transactions in buildings other than dwellings record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116), TALC 112, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211; or ETF 4212, TALC 112, COFOG-A, SDC) of buildings other than dwellings. Paragraph 8.28 of the IMF GFSM 2014 states that in addition to the transactions reflecting the acquisition of newly constructed buildings and structures (in this case transactions in buildings other than dwellings), acquisitions include all amounts payable for site clearance and preparation and the cost of all fixtures, facilities, and equipment that are integral parts of buildings and structures.

Paragraph 8.30 of the IMF GFSM 2014 indicates that the construction of new public monuments, as well as major improvements to existing public monuments, constitutes an acquisition of buildings other than dwellings, however, when the special archaeological, historical, or cultural significance of a structure or site not already recorded in the balance sheet is first recognised, it is recorded as an other change in the volume of assets, as explained in Chapter 11 of this manual. Further information on buildings other than dwellings can be found in paragraphs 8.59 to 8.60 of this manual.

Transactions in land improvements record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116; TALC 113, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211; or ETF 4212, TALC 113, COFOG-A, SDC) of land improvements. Paragraph 7.49 of the IMF GFSM 2014 defines land improvements as actions that lead to major improvements in the quantity, quality, or productivity of land, or prevent its deterioration, and includes activities such as land reclamation, land clearance, land contouring, and creation of wells and watering holes that are integral to the land in question. In GFS, the value of improvements to land are recorded separately to the value of the land itself, and new improvements to land are recorded as acquisitions in non-financial produced assets during the reporting period. Paragraph 8.28 of the IMF GFSM 2014 states that acquisitions include all amounts payable for site clearance and preparation and the cost of all fixtures, facilities, and equipment that are integral parts of buildings and structures. The costs of ownership transfer on land are also included, by convention, with land improvements, and these costs are written off over the period the owner expects to own the land.

Paragraph 8.31 of the IMF GFSM 2014 states that depreciation associated with land improvements is recorded based on the service life of the improvement. Any excess in the increase in the value of the land over the value of land improvements or any increase in price levels due to adjacent capital activity is recorded as holding gains. Other changes in the volume of assets (economic appearance) of the nonproduced asset land (TALC 311) should be recorded when adjacent activities bring land into the asset boundary for GFS purposes. Further information on land improvements can be found in paragraphs 8.61 to 8.64, and Chapter 13. Part F of this manual.

Transactions in structures not elsewhere classified record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116; TALC 119, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211; or ETF 4212, TALC 119, COFOG-A, SDC) of other structures not elsewhere classified. Paragraph 8.28 of the IMF GFSM 2014 states that in addition to the transactions reflecting the acquisition of newly constructed buildings and structures (in this case other structures not elsewhere classified), acquisitions include all amounts payable for site clearance and preparation and the cost of all fixtures, facilities, and equipment that are integral parts of buildings and structures.

Paragraph 8.32 of the IMF GFSM 2014 states that acquisitions of tunnels and other structures associated with the mining of mineral deposits are classified as acquisitions of structures and not as improvements to land. These assets are used separately from the land through which they are drilled or bored. Further information on other structures not elsewhere classified can be found in paragraphs 8.65 to 8.66 of this manual.

Transactions in machinery and equipment record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 12, COFOG-A, SDC (excluding ETF 4113)) or disposals (ETF 4211; or ETF 4212, TALC 12, COFOG-A, SDC) of machinery and equipment. In GFS, transactions in machinery and equipment are further classified as:

• Transactions in transport equipment (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 121, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211; or ETF 4212, TALC 121, COFOG-A, SDC);
• Transactions in information, computer, and telecommunications equipment (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 122, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211; or ETF 4212, TALC 122, COFOG-A, SDC); and
• Transactions in machinery and equipment not elsewhere classified (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 129, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211; or ETF 4212, TALC 129, COFOG-A, SDC).

Transactions in transport equipment record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 121, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211; or ETF 4212, TALC 121, COFOG-A, SDC) of transport equipment. Further information on transport equipment can be found in paragraph 8.68 of this manual.

Transactions in information, computer, and telecommunications equipment record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 122, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211; or ETF 4212, TALC 122, COFOG-A, SDC) of information, computer, and telecommunications equipment. Further information on information, computer, and telecommunication equipment can be found in paragraphs 8.69 to 8.70 of this manual.

Transactions in machinery and equipment not elsewhere classified record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 129, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211; or ETF 4212, TALC 129, COFOG-A, SDC) of other machinery and equipment not elsewhere classified. This category includes all machinery and equipment not classified in any of the other machinery and equipment categories. Further information on other machinery and equipment not elsewhere classified can be found in paragraphs 8.71 to 8.73 of this manual.

Transactions in cultivated biological resources record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 13, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211; or ETF 4212, TALC 13, COFOG-A, SDC) of cultivated biological resources. Paragraph 8.34 of the IMF GFSM 2014 states that acquisitions of cultivated biological resources include acquisitions from other units of plants and animals that are cultivated for the products they yield year after year, and the value of similar plants and animals produced on own account. Plants and animals grown for a single use, such as animals grown for slaughter and trees grown for timber, are treated as inventories rather than non-financial produced assets

Disposals in cultivated biological resources consist of animals and plants that are sold or otherwise disposed of, including animals and plants that yield repeat products such as wool sheep or dairy cows subsequently slaughtered, or orchards or coffee plantations that are cut down before the end of their service lives. Disposals do not include exceptional losses of animals and plants due to major outbreaks of disease, contamination, drought, famine, or other natural disasters, which are recorded as other changes in the volume of assets (see Chapter 11 of this manual). Depreciation on these resources includes incidental losses of animals and plants from natural causes, as well as the decline in an animal’s or plant’s value as it gets older.

In GFS, transactions in cultivated biological resources are further classified as:

• Transactions in animal resources yielding repeat products (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 131, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211; or ETF 4212, TALC 131, COFOG-A, SDC); and
• Transactions in tree, crop, and plant resources yielding repeat products (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 132, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211; or ETF 4212, TALC 132, COFOG-A, SDC).

Transactions in animal resources yielding repeat products record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 131, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211; or ETF 4212, TALC 131, COFOG-A, SDC) of animal resources yielding repeat products. Only animals and plants cultivated under the direct control, responsibility, and management of institutional units are considered to be cultivated assets in GFS. Paragraph 8.35 of the IMF GFSM 2014 indicates that the net investment in livestock that are cultivated for the products they yield year after year (e.g. dairy cattle) is equal to the total value of all mature animals and immature animals produced on own account or acquired by users of the livestock minus the value of their disposals minus consumption of fixed capital. Further information on animal resources yielding repeat products can be found in paragraphs 8.75 to 8.77 of this manual.

Transactions in tree, crop, and plant resources yielding repeat products record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 132, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211; or ETF 4212, TALC 132, COFOG-A, SDC) of tree, crop, and plant resources yielding repeat products. Paragraph 8.36 of the IMF GFSM 2014 indicates that the net investment in plantations, orchards, etc. is equal to the value of the acquisitions of mature trees, shrubs, etc. (including immature trees, shrubs, etc. produced on own account) minus their disposals minus consumption of fixed capital. If the current market value of immature trees, shrubs, etc. cannot be determined, the value may be approximated by the value of accumulated costs incurred in their production. Further information on tree, crop, and plant resources yielding repeat products can be found in paragraphs 8.78 to 8.81 of this manual.

Transactions in intellectual property products record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 14, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 14, COFOG-A, SDC) of intellectual property products.

Amortisation is the distribution of the value of an intellectual property product over its useful life. Although similar in concept to depreciation of tangible, produced, non-financial assets, its treatment differs. While depreciation is treated as an expense in the statement of operations amortisation is treated as an other change in volume. In GFS, transactions in intellectual property products are further classified as:

• Transactions in research and development (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 141, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 141, COFOG-A, SDC);
• Transactions in mineral exploration and evaluation (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 142, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 142, COFOG-A, SDC);
• Transactions in computer software (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 143, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 143, COFOG-A, SDC);
• Transactions in databases (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 144, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 144, COFOG-A, SDC);
• Transactions in entertainment, literary, and artistic originals (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 145, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 145, COFOG-A, SDC); and
• Transactions in intellectual property products not elsewhere classified (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 149, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 149, COFOG-A, SDC).

Transactions in research and development record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 141, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 141, COFOG-A, SDC) of research and development. Paragraph 8.38 of the IMF GFSM 2014 states that the value of expenditure on research and development should be determined in terms of the economic benefits it is expected to provide in the future. In GFS, research and development is treated as an asset except in cases where it is clear that the activity does not entail any economic benefits for its owner. Further information on research and development can be found in paragraphs 8.83 to 8.85 of this manual.

Transactions in mineral exploration and evaluation record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 142, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 142, COFOG-A, SDC) of mineral exploration and evaluation. Paragraph 8.39 of the IMF GFSM 2014 notes that expenditure incurred on exploration is classified as the acquisition of mineral exploration and evaluation. Mineral exploration expenditure includes the costs of actual test drillings and borings and all other costs incurred to make it possible to carry out the tests, such as prelicense, license, acquisition, and appraisal costs, the costs of aerial and other surveys, and transportation and other costs incurred to make the exploration possible. Depreciation may be calculated for such assets by using average service lives similar to those used by mining or oil corporations in their own accounts. Further information on mineral exploration and evaluation can be found in paragraphs 8.86 to 8.87 of this manual.

Transactions in computer software record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 143, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 143, COFOG-A, SDC) of computer software. Paragraph 8.40 of the IMF GFSM 2014 indicates that acquisitions of computer software that comprise programs, program descriptions, and supporting materials for both systems and applications software that are expected to be used for more than one year. The net acquisition of non-financial assets in the form of computer software includes both the initial development and subsequent extensions of software, as well as acquisition of copies that are classified as assets. Software developed in-house is valued at its cost of production and is included as own-account capital formation (ETF 4113) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 143, COFOG-A) (see Appendix 1 Part B). Further information on computer software can be found in paragraphs 8.88 to 8.89 of this manual.

Transactions in databases record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 144, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 144, COFOG-A, SDC) of databases. Paragraph 8.40 of the IMF GFSM 2014 states that this category includes the purchase, development, or extension of large databases that the unit expects to use for more than one year. When a database is created, its value will generally have to be estimated by a sum-of-costs approach. These costs include the cost of preparing data in the appropriate format, staff time estimated on the basis of the amount of time spent in developing the database, and costs of goods and services used.

If the database is created in-house, it is recorded as own-account capital formation (ETF 4113) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 144, COFOG-A) (see Appendix 1 Part B). Transactions in databases sold should be valued at their market price, which includes the value of the information content. Further information on databases can be found in paragraph 8.90 of this manual.

Transactions in entertainment, literary, and artistic originals record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 145, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 145, COFOG-A, SDC) of entertainment, literary, and artistic originals. Paragraph 8.41 of the IMF GFSM 2014 notes that the production of new entertainment, literary, and artistic originals is recorded at their current market price when they are actually traded. However, this asset category is often undertaken on own account. Subsequently, they may be sold outright or by means of licenses. When produced on own account, the value of entertainment, literary, or artistic originals are recorded as ownaccount capital formation (ETF 4113) with a further breakdown using an appropriate category in the supporting information under own-account capital formation (ETF 76, TALC 145, COFOG-A) (see Appendix 1 Part B). It may be difficult to establish their market value when created on own-account, because this depends on the present value of the future benefits that the owner expects to derive from their use. In the absence of information, it may be necessary to value the acquisition of the original by its cost of production. Further information on entertainment, literary, and artistic originals can be found in paragraph 8.91 of this manual.

Transactions in intellectual property products not elsewhere classified record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 149, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 149, COFOG-A, SDC) of other intellectual property products not elsewhere classified. Further information on other intellectual property products not elsewhere classified can be found in paragraphs 8.92 to 8.93 of this manual.

Transactions in weapons systems (also known as defence weapons platforms in Australian GFS) record the value of acquisitions (ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 15 and TALC 151, COFOG-A 02, SDC (excluding ETF 4113)) and disposals (ETF 4211; or ETF 4212, TALC 15 and TALC 151, COFOG-A 02, SDC) of weapons systems. Paragraph 8.43 of the IMF GFSM 2014 notes that the acquisitions and disposals of weapons systems that meet the general definition of assets include vehicles and other equipment such as warships, submarines, military aircraft , tanks, missile carriers and launchers, etc. The acquisitions of most single-use weapons they deliver, such as ammunition, missiles, rockets, bombs, etc., are classified as transactions in military inventories (ETF 4111, TALC 215, COFOG-A) and their use as withdrawals from military inventories. However, some single-use items, such as certain types of ballistic missile with a highly destructive capability, may be classified as non-financial produced assets. Further information on weapons systems (also known as defence weapons platforms) can be found in paragraphs 8.94 to 8.95 of this manual.

Transactions in other produced assets record the value of acquisitions (ETF 41, TALC 2, COFOG-A) and disposals (ETF 42, TALC 2, COFOG-A, SDC) of other produced assets. In GFS, transactions in other produced assets are further classified as:

• Inventories (for acquisitions: ETF 4111, TALC 21, COFOG-A and for disposals: ETF 4111, TALC 21, COFOG-A);
• Valuables (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 22, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 22, COFOG-A, SDC); and
• Other produced assets (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 23, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 23, COFOG-A, SDC).

Transactions in inventories (ETF 4111, TALC 21, COFOG-A) record the value of the change in inventories during the reporting period. Paragraph 8.44 of the IMF GFSM 2014 states that the change in inventories (also known as the net investment in inventories) is measured by the value of the additions to inventories minus the value of withdrawals from inventories minus the value of any recurrent losses of goods held in inventories during the reporting period.

Additions to inventories are recorded when products are purchased, produced, or otherwise acquired, and withdrawals from inventories are recorded when products are sold, used up in production, diminished due to recurrent losses (recurrent wastage, accidental damage, or pilfering), or otherwise relinquished. Inventories that are transferred to a different category of inventories as part of the production process (e.g. from work in progress to finished goods) are recorded as other changes in the volume of non-financial assets (ETF 5212, TALC 211, or TALC 212, or TALC 213, or TALC 214, or TALC 215).

Paragraph 8.45 of the IMF GFSM 2014 notes that in contrast to other non-financial assets, no costs of ownership transfer are included in the values of additions to or withdrawals from inventories and no depreciation is attributed to inventories. The reason for this is because inventories are held specifically for use in the production of goods and services. Further, unlike reporting for other non-financial assets, only the net value of inventories is estimated under change in inventories (ETF 4111, TALC 21, COFOG-A) rather than gross values for additions and withdrawals.

Paragraph 8.46 of the IMF GFSM 2014 states that to understand the various transactions in inventories, it is useful to distinguish between two functions performed by a unit: its function as a producer of goods and services; and its function as an owner of assets. When a good is entered into inventories, it is acquired as an asset by the unit in its capacity as owner either by purchase (or barter) or by an internal transaction with itself as the producer. Conversely, a good leaving inventories represents the disposal of an asset by the owner either by sale or other use, by an internal transfer to the producer, or possibly as a result of recurrent losses (recurrent wastage, accidental damage, or pilfering). Paragraph 8.48 of the IMF GFSM 2014 indicates that recurrent losses of inventories resulting from physical deterioration, normal accidental damage, or pilfering should be treated as withdrawals in the same way as inventories withdrawn on purpose. In practice, determining the time of recording of recurrent losses may be difficult because the time at which the inventories were stolen or spoiled may be unknown. Exceptional inventory losses are included as other changes in the volume of assets (see Chapter 11 of this manual for further information on other changes in the volume of assets).

Paragraph 8.47 of the IMF GFSM 2014 notes that many transactions in inventories (i.e. additions to and withdrawals from) are purchases from (or distributions to) other units, but other acquisitions and disposals reflect internal transactions. All additions to and withdrawals from inventories (such as for use of goods or investment in non-financial produced assets), should be valued at current market prices. Because of the continuous or frequent withdrawals from materials and supplies inventories and the additions to and withdrawals from work-in-progress inventories, information is usually not available to record these internal transactions accurately, and estimates may be necessary.

In GFS, transactions in inventories are further classified as:

• Transactions in inventories - materials and supplies (ETF 4111, TALC 211, COFOG-A);
• Transactions in inventories - work in progress (ETF 4111, TALC 212, COFOG-A);
• Transactions in inventories - finished goods (ETF 4111, TALC 213, COFOG-A);
• Transactions in inventories - goods for resale (ETF 4111, TALC 214, COFOG-A); and
• Transactions in inventories - military (ETF 4111, TALC 215, COFOG-A 02).

Transactions in inventories - materials and supplies (ETF 4111, TALC 211, COFOG-A) record the value of changes in inventories of materials and supplies during the reporting period. Paragraph 8.47 of the IMF GFSM 2014 states that when inventories of materials and supplies are transferred to a production process, a transaction is recorded for the withdrawal, which is balanced by an addition either to inventories - workin-progress (ETF 4111, TALC 212, COFOG-A), the use of goods and services (ETF 1233), or own-account capital formation (ETF 4113, TALC 212, COFOG-A) with a further break down reported under the appropriate category of own account capital formation (ETF 76) in the supporting information (ETF 7), or possibly even valuables (ETF 4114, TALC 212, COFOG-A). In other words, the balancing entry depends on the nature of the production process. The acquisition of gold, diamonds, etc. intended for use in production is recorded under inventories - materials and supplies (ETF 4111, TALC 211, COFOG-A), but the acquisition of the same items to hold as a store of value is recorded under valuables (ETF 4114, TALC 212, COFOG-A). Further information on inventories - materials and supplies can be found in paragraphs 8.98 to 8.100 of this manual.

Transactions in inventories - work in progress (ETF 4111, TALC 212, COFOG-A) record the value of changes in inventories of work in progress during the reporting period. Paragraph 8.47 of the IMF GFSM 2014 indicates that transactions which add to inventories - work-in-progress (ETF 4111, TALC 212, COFOG-A) are (in principle) recorded continuously as production takes place. The counterpart transactions are reduction in other assets, such as inventories - materials and supplies (ETF 4111, TALC 211, COFOG-A), and the other costs incurred in production. When production is completed, all work in progress is reclassified as inventories - finished goods (ETF 4111, TALC 213, COFOG-A). This reclassification is recorded as other changes in the volume of assets under the respective subcategories of inventories (see Chapter 11 of this manual for further information on other changes in the volume of assets). Withdrawals of inventories - work-in-progress inventories (ETF 4111, TALC 212, COFOG-A) should be valued at their cost of production, where all inputs are valued at their current market prices at the time of withdrawal rather than the prices paid for them. The difference between the prices payable for the inputs and their current market prices is a holding gain or loss. The ownership of work-in-progress inventories is transferable, if necessary. For example, the asset may be sold under exceptional circumstances, such as the liquidation of a public corporation.

Paragraph 8.47 of the IMF GFSM 2014 further adds that inventories - work-in-progress (ETF 4111, TALC 212, COFOG-A) should be recorded for single-use cultivated biological resources. Any cultivation of resources with repeat yields that are not used in production such as immature orchards, dairy calves, wool lambs (other than on own account or under an agreed contract with another unit), is also included in inventories - work-in-progress (ETF 4111, TALC 212, COFOG-A). However, repeat-yield resources, being cultivated on own account or under an agreed contract with another unit, are recorded as the acquisition of non-financial produced assets. Further information on inventories - work in progress can be found in paragraphs 8.101 to 8.104 of this manual.

Transactions in inventories - finished goods (ETF 4111, TALC 213, COFOG-A) record the value of changes in inventories of finished goods during the reporting period. Paragraph 8.47 of the IMF GFSM 2014 states that a good is finished when its producer has completed its intended production process and such inventories - finished goods (ETF 4111, TALC 213, COFOG-A) may be held only by the units that produce them. When finished goods are sold or otherwise disposed of (e.g. as compensation of employees in kind), a transaction must be recorded to reduce inventories - finished goods (ETF 4111, TALC 213, COFOG-A), which is balanced by an increase in expenses in the form of use of goods and services (ETF 1233). The distribution of finished goods as compensation of employees in kind is always recorded as an increase in expenses in the form of use of goods and services (ETF 1233) by the unit that produced these goods.

Paragraph 8.47 of the IMF GFSM 2014 further states that finished goods entering inventories are valued at the prices of those goods before adding any taxes, transport, or distribution margins, at the times the entries take place; finished goods withdrawn from inventories are valued at the prices before adding any taxes, transport, or distribution margins, at the time when their withdrawals take place. The difference between the 'entering' and 'withdrawal' values of finished goods is recorded as a holding gain or loss (see Chapter 11 of this manual for further information on holding gains and losses). Further information on inventories - finished goods can be found in paragraph 8.105 of this manual.

Transactions in inventories - goods for resale (ETF 4111, TALC 214, COFOG-A) record the value of changes in inventories of goods for resale during the reporting period. Paragraph 8.47 of the IMF GFSM 2014 notes that when goods held as inventories - goods for resale (ETF 4111, TALC 214, COFOG-A) are sold or otherwise disposed of, two transactions are recorded.

Firstly, a reduction in inventories - goods for resale (ETF 4111, TALC 214, COFOG-A) takes place, and a counterpart transaction is recorded in expenses in the form of use of goods and services (ETF 1233) at the purchase price. Secondly, receipts of sales of goods and services are recorded at the sale price (ETF 1121; or ETF 1123; or ETF 1124), which is balanced by either an increase in currency and deposits (ETF 3111, TALC 411, SDC) or accounts receivable (ETF 3111, TALC 452, SDC). The difference between the value recorded as sales of goods and services and use of goods and services is reflected in the net operating balance (NOB). By convention, goods acquired by government for distribution as social transfers in kind or other transfers in kind but that have not yet been so delivered are also included in goods for resale. The distribution of such goods is recorded as a reduction in inventories - goods for resale (ETF 4111, TALC 214, COFOG-A), and an increase in expenses in the form of either subsidies on products (ETF 1252), other subsidies on production (ETF 1253), current grant expenses (ETF 1251), or current transfer expenses not elsewhere classified (ETF 1259).

Paragraph 8.47 of the IMF GFSM 2014 further states that goods for resale added to inventories are valued at their actual or estimated purchase prices, including any transportation charges paid to other units, but not the costs of any transport services produced on own account by the unit taking delivery. Goods acquired by barter are valued at their estimated purchasers’ prices at the time of acquisition. However, because there are no taxes or margins on bartered goods, the purchaser’s price is the same as the basic price. Goods for resale withdrawn from inventories are valued similarly at the purchase prices at which they can be replaced when they are withdrawn, which may differ from the prices that were paid to acquire them and the prices for which they were sold. Reductions in inventories are valued in this way whether the goods withdrawn are sold at a profit or at a loss, or even not sold at all as a result of physical deterioration, recurrent accidental damage, or pilfering. Further information on inventories - goods for resale can be found in paragraphs 8.106 to 8.109 of this manual.

Transactions in inventories - military (ETF 4111, TALC 215, COFOG-A 02) record the value of changes in military inventories during the reporting period. Paragraph 8.47 of the IMF GFSM 2014 notes that when military inventories are used or otherwise disposed of, their cost is recorded as an expense in the form of use of goods and services (ETF 1233, COFOG-A). A counterpart transaction is recorded as the withdrawal of military inventories (ETF 4111, TALC 215, COFOG-A 02). Additions and withdrawals of military inventories are valued in the same manner as additions and withdrawals of inventories - finished goods (ETF 4111, TALC 213, COFOG-A) or additions and withdrawals of inventories - goods for resale (ETF 4111, TALC 214, COFOG-A), depending on how they were acquired. Further information on inventories - military inventories can be found in paragraphs 8.110 to 8.112 of this manual.

Transactions in valuables record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 22 and TALC 221, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 22 and TALC 221, COFOG-A, SDC) of valuables. Paragraph 8.48 of the IMF GFSM 2014 states that acquisitions of valuables are valued at the prices payable by the purchaser.

Any associated costs of ownership transfer incurred by the units acquiring the valuables are recorded as a separate transaction as acquisitions of other new non-financial assets (ETF 4114, TALC 221, COFOG-A, SDC). The value of the transaction in costs of ownership transfer on valuables are added to the stock of valuables (ETF 8221) at the end of the reporting period and included as part of the current market value of valuables. The costs of ownership transfer associated with valuables may be significant due to the cost of the services of appraisers, auctioneers, and dealers, and care must be taken to record these as a separate transaction correctly.

Disposals are valued at the sales price, minus any associated costs of ownership transfer incurred by the units disposing of the assets, therefore the value of acquisition may not equal value of disposal for the same valuable. Units fulfilling some functions of the monetary authority may have transactions in both monetary and non-monetary gold, and care needs to be taken to classify them correctly and to record the other changes in the volume of assets needed to transfer gold from one category to the other. Other changes in the volume of assets are further discussed in Chapter 11 of this manual. Further information on valuables can be found in paragraphs 8.113 to 8.115 of this manual.

Transactions in other produced assets record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 23, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 23, COFOG-A, SDC) of other non-financial produced assets owned by public sector units.

Transactions in non-produced assets record the current value of acquisitions (ETF 41, TALC 3, COFOG-A) and disposals (ETF 42, TALC 3, COFOG-A, SDC) in non-financial non-produced assets owned by public sector units. In GFS, transactions in non-produced assets are further classified as:

• Transactions in tangible non-produced assets (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 31, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 31, COFOG-A, SDC);
• Transactions in intangible non-produced assets (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 32, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 32, COFOG-A, SDC); and
• Transactions in other non-produced assets (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 33, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 33, COFOG-A, SDC).

Transactions in tangible non-produced assets record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 31, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 31, COFOG-A, SDC) of tangible non-produced assets owned by public sector units. In GFS, transactions in tangible non-produced assets are further classified as:

• Transactions in land (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; TALC 311, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 311, COFOG-A, SDC);
• Transactions in mineral and energy resources (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 312, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 312, COFOG-A, SDC);
• Transactions in non-cultivated biological resources (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 313, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 313, COFOG-A, SDC);
• Transactions in water resources (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 314, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 314, COFOG-A, SDC);
• Transactions in radio spectra (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 315, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 315, COFOG-A, SDC); and
• Transactions in tangible non-produced assets not elsewhere classified (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 319, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 319, COFOG-A, SDC).

Transactions in land record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; TALC 311, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 311, COFOG-A, SDC) of land owned by public sector units. Paragraph 8.50 of the IMF GFSM 2014 indicates that the purchase and sale of land excludes the costs of ownership transfer on land for both buyers and sellers. These costs are included in transactions in land improvements (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 113, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211; or ETF 4212, TALC 113, COFOG-A, SDC).

Actions that lead to major improvements in the quantity, quality, or productivity of land, or prevent its deterioration (such as land clearance, land contouring, creation of wells and watering holes that are integral to the land in question, etc.) are also treated as land improvements. Costs relating to site clearance and preparation of land for purposes of construction are excluded from land improvements and are instead classified as the acquisition of buildings and structures (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 11, COFOG-A, SDC (excluding ETF 4113)). Improvements to land are further discussed in Chapter 13 Part F of this manual.

When a public sector unit acquires land that is physically located in a foreign country (for use as an embassy, base, or other territorial enclave), the transaction converts the land into forming part of the economic territory of the country of the acquiring government, and so the asset will enter the balance sheet by means of a transaction (i.e. the acquisition of the non-financial asset (land) (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; TALC 311, COFOG-A, SDC (excluding ETF 4113))).

Paragraph 8.51 of the IMF GFSM 2014 notes that buildings (or other structures) and plantations are often purchased or sold together with the land on which they are situated, without separate valuations being placed on the structures and the land. Even if it is not feasible to obtain separate valuations (as may be the case for existing structures), it may be possible to determine whether the value of the land or the structure accounts for most of their combined value and to classify the transaction as the purchase of land or of a structure, depending upon which has the greater value. If it is not possible to determine whether the land or the structure is the more valuable, by convention, the transaction should be classified as the purchase of a structure (i.e. as the acquisition of a non-financial produced asset in the form of buildings and structures (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 11, COFOG-A, SDC (excluding ETF 4113))). A similar convention holds for plantations. In most cases, subsoil assets may be owned separately from the land and separate valuations should be estimated if possible.

Paragraph 8.53 of the IMF GFSM 2014 indicates that while there is no depreciation on land, there is depreciation on land improvements. Therefore depreciation on land improvements is recorded as depreciation on non-financial produced assets (non-defence) (ETF 1241, TALC 113, COFOG-A, SDC); or depreciation on non-financial produced assets (non-defence) (ETF 1242, TALC 113, COFOG-A, SDC). Costs of ownership transfer on land are recorded as transactions in land improvements (for acquisitions: ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 113, COFOG-A, SDC (excluding ETF 4113)). Further information on land can be found in paragraphs 8.120 to 8.122 of this manual.

Transactions in mineral and energy resources record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 312, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 312, COFOG-A, SDC) in mineral and energy resources over which ownership rights have been established. Mineral and energy resources consist of mineral and energy reserves located on or below the earth’s surface that are economically exploitable, given current technology and relative prices. Included are deposits of mineral reserves under the sea; known reserves of oil, natural gas and coal; known reserves of metallic ores; non-metallic mineral reserves including stone quarries, clay and sand pits, chemical and fertiliser mineral deposits, deposits of salt, quartz, gypsum, natural gem stones, asphalt, bitumen and peat.

Paragraph 8.54 of the IMF GFSM 2014 notes that reductions in the value of known reserves of mineral and energy resources resulting from their depletion as a result of extracting the assets for purposes of production are not recorded transactions but as other changes in the volume of assets. Similarly, increases in the values resulting from discoveries are recorded as other changes in the volume of assets. Decreases arising from reappraisals are also recorded as other changes in the volume of assets. Chapter 11 of this manual contains further information on other changes in the volume of assets. Further information on mineral and energy resources can be found in paragraphs 8.123 to 8.126 of this manual.

Transactions in non-cultivated biological resources record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 313, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 313, COFOG-A, SDC) of non-cultivated biological resources. Paragraph 8.55 of the IMF GFSM 2014 states that similarly to the treatment of mineral and energy resources, depletion of non-cultivated biological resources is recorded as other changes in the volume of assets, and not as a transaction in non-financial assets. Chapter 11 of this manual contains further information on 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.

Transactions in water resources record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 314, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 314, COFOG-A, SDC) of water resources. Paragraph 8.55 of the IMF GFSM 2014 states that similarly to the treatment of mineral and energy resources, depletion of water resources is recorded as other changes in the volume of assets, and not as a transaction in non-financial assets. Chapter 11 of this manual contains further information on 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.

Transactions in radio spectra record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 315, COFOG-A, SDC) and disposals (ETF 4211, TALC 315, COFOG-A, SDC (excluding ETF 4113)) of the radio spectrum. Chapter 11 of this manual contains further information on other changes in the volume of assets. Further information on radio spectra can be found in paragraph 8.132 of this manual.

Transactions in tangible non-produced assets not elsewhere classified record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 319, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 319, COFOG-A, SDC) of tangible non-produced assets not elsewhere classified. Paragraph 8.55 of the IMF GFSM 2014 states that similarly to the treatment of mineral and energy resources, depletion of other non-produced assets such as natural resources not elsewhere classified is recorded as other changes in the volume of assets, and not as a transaction in non-financial assets. Further information on other changes in the volume of assets can be found in Chapter 11 of this manual. Further information on other natural resources not elsewhere classified can be found in paragraph 8.133 of this manual.

Transactions in intangible non-produced assets record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 32, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 32, COFOG-A, SDC) of intangible non-produced assets. In GFS, transactions in intangible nonproduced assets are further classified as:

• Transactions in marketable operating leases (for acquisitions: ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 321, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 321, COFOG-A, SDC);
• Transactions in permits to use natural resources (for acquisitions: ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 322, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 322, COFOG-A, SDC); 
• Transactions in permits to undertake specific activities (for acquisitions: ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 323, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 323, COFOG-A, SDC);
• Transactions in entitlement to future goods and services on an exclusive basis (for acquisitions: ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 324, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 324, COFOG-A, SDC);
• Transactions in goodwill and marketing assets (for acquisitions: ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 325, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 325, COFOG-A, SDC); and
• Transactions in intangible non-produced assets not elsewhere classified (for acquisitions: ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 329, COFOG-A, SDC (excluding ETF 4113) and for disposals: ETF 4211, TALC 329, COFOG-A, SDC).

Transactions in marketable operating leases record the value of acquisitions (ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 321, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 321, COFOG-A, SDC) of marketable operating leases. Further information on marketable operating leases can be found in paragraph 8.135 and Chapter 13 Part H of this manual.

Transactions in permits to use natural resources record the value of acquisitions (ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 322, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 322, COFOG-A, SDC) of permits to use natural resources. Further information on permits to use natural resources can be found in paragraph 8.136 and Chapter 13 Part H of this manual.

Transactions in permits to undertake specific activities record the value of acquisitions (ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 323, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 323, COFOG-A, SDC) of permits to undertake specific activities. Further information on permits to undertake specific activities can be found in paragraphs 8.137 to 8.138 and Chapter 13 Part H of this manual.

Transactions in entitlement to future goods and services on an exclusive basis record the value of acquisitions (ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 324, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 324, COFOG-A, SDC) of entitlement to future goods and services on an exclusive basis. Further information on entitlement to future goods and services on an exclusive basis can be found in paragraph 8.139 of this manual.

Transactions in goodwill and marketing assets record the value of acquisitions (ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 325, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 325, COFOG-A, SDC) of goodwill and marketing assets. Paragraph 8.58 of the IMF GFSM 2014 notes that goodwill is only recorded in GFS when its value is evidenced by a market transaction, usually the sale / purchase of a whole corporation. The amortisation of goodwill and marketing assets or other intangible non-produced assets is treated as an other economic flow rather than a transaction in GFS. Chapter 11 of this manual contains further information on other economic flows. Further information on goodwill and marketing assets can be found in paragraphs 8.140 to 8.142 and paragraph 11.26 of this manual.

Transactions in intangible non-produced assets not elsewhere classified record the value of acquisitions (ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 329, COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 329, COFOG-A, SDC) of other intangible non-produced assets that are not elsewhere classified. Further information on other intangible non-produced assets not elsewhere classified can be found in paragraphs 8.143 to 8.144 of this manual.

Transactions in other non-financial non-produced assets record the value of acquisitions (ETF 4112; or ETF 4113; or ETF 4114; or ETF 4115; or ETF 4116, TALC 33 and TALC 339 , COFOG-A, SDC (excluding ETF 4113)) and disposals (ETF 4211, TALC 33 and TALC 339 , COFOG-A, SDC) of other non-financial nonproduced assets. Further information on other non-financial non-produced assets not elsewhere classified can be found in paragraph 8.145 of this manual.