Appendix 3 - Departures from the international GFS standards

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Australian System of Government Finance Statistics: Concepts, Sources and Methods
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Reference period
2015

Introduction

A3.1.

The AGFS15 contains a number of departures from the international GFS standards listed in the IMF GFSM 2014. The primary reason for these departures is to reflect Australia's economic situation and maintain coherence across the macroeconomic accounts produced by the ABS. There are also variations in the way that the ABS GFS are presented as output. Nevertheless, the GFS system can be used by the ABS to provide the IMF with statistics that are in full accordance with the international GFS standards contained in the IMF GFSM 2014.

Departures from IMF GFSM 2014 in the AGFS 2015

A3.2.

Table A3.1 summarises the departures from the IMF GFSM 2014 in the AGFS15:

Table A3.1 - Departures from IMF GFSM 2014 in the AGFS 2015
DepartureAGFS15IMF GFSM 2014
The valuation of debtConsistent with the market value principle, the ABS records the value of all debt at current market value in the AGFS15. This is calculated using the creditor approach whereby the future payment/revenue stream is discounted using the market interest rate to determine the current value of the debt.The IMF values non-tradable debt at the nominal value in the IMF GFSM 2014. This can be calculated using the debtor approach whereby the future payment/revenue stream is discounted using the contractual interest rate to determine the value of the debt.
Concessional debt in the core financial statementsThe ABS records the value of concessional debt as a separate item in the core GFS financial statements. The implicit transfer or concessional element is recorded as a memorandum item in the AGFS15.The IMF records both the value of concessional debt and the implicit transfer or concessional element as separate memorandum items in the IMF GFSM 2014, but does not separate the value of concessional debt in the core financial statements.
Presentation of gross public sector debt and other liabilities by instrument and by level of governmentThe ABS has adopted the presentation of gross public sector debt and other liabilities by instrument and by level of government as per the debt matrix in the IMF staff discussion paper: What lies beneath? Robert Dipplesman, Claudia Dziobek, and Carlos A. Gutierrez Mangas, International Monetary Fund, 27 July 2012.The IMF omits the presentation of gross public sector debt by instrument and by level of government.
Derivatives as financial instrumentsThe ABS recognises derivatives as debt instruments in the AGFS15.While the IMF recognises derivatives as financial instruments in the IMF GFSM 2014, they are not included in the definition of debt.
Repurchase agreements and gold swapsThe ABS records repurchase agreements and gold swaps as outright sales and entry into financial derivatives in the AGFS15, as a more accurate reflection of the economic reality and to avoid the recording of negative positions.The IMF treats repurchase agreements and gold swaps as collateralised loans in the IMF GFSM 2014.
Debt assumptionThe ABS records the assumption of debt by a public sector unit as transactions in accounts receivable / accounts payable in the AGFS15.The IMF records the assumption of debt by a public sector unit as reclassifications of financial assets / liabilities though other changes in the volume of assets and liabilities.
Changes in the characteristics of financial instruments due to arrearsThe ABS records changes in the characteristics of financial instruments due to arrears as transactions in the AGFS15.The IMF records changes in the characteristics of financial instruments due to arrears as reclassifications of financial assets / liabilities through other changes in the volume of assets and liabilities in the IMF GFSM 2014.
Amounts remaining due for payment under a derivative after the derivative maturesConsistent with the standard treatment of arrears, the ABS records amounts that remain due for payment under a derivative after the derivative matures as transactions in financial derivatives in the AGFS15.The IMF records amounts that remain due for payment under a derivative after the derivative matures as a reclassification to other accounts receivable or accounts payable through other changes in the volume of assets in the IMF GFSM 2014.
Bonds that are convertible into preference shares when the option is exercisedThe ABS records bonds that are convertible into preference shares as transactions in debt securities when the option is exercised in the AGFS15.The IMF records bonds that are convertible into preference shares as equity and investment fund shares through other changes in the volume of assets in the IMF GFSM 2014.
The sectoral classification of Central Borrowing Authorities (CBAs)The ABS classifies CBAs as separate institutional units classified to the public financial corporations sector in the AGFS15.The IMF classifies CBAs as resident artificial subsidiaries of their parent unit in the general government sector in the IMF GFSM 2014.
Classification of holding companiesThe ABS classifies holding companies according to the predominant activity of the subsidiary corporations whose assets they hold in the AGFS15.The IMF classifies all holding companies to the financial corporations sector, regardless of the nature of activities undertaken by the subsidiary corporations in the IMF GFSM 2014.
Tax attributionThe ABS includes final discretion over the use of funds as a criterion for the attribution of tax in the AGFS15.The IMF omits the final discretion over the use of funds as a criterion for the attribution of tax in the IMF GFSM 2014.
Salary sacrificeThe ABS records salary sacrifice expenses as supplementary information in the AGFS15.The IMF does not separately identify salary sacrifice expenses in the IMF GFSM 2014.