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Chapter 5 The capital account ?????????

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Title: Chapter 5 The capital account ?????????


1
Chapter 5 The capital account ?????????
  • Section 1 The basic concepts of capital formation
  • ??? ?????????
  • Section 2 The capital formation
  • ??? ????
  • Section 3 The capital account
  • ??? ????
  • Section 4 Goods and services account
  • ??? ???????

2
Chapter 5 The capital account ?????????Section 1
The basic concepts of capital formation?????????
  • ??Non-financial assets
  • The assets in the System are economic
    assets.   The assets consists of financial
    assets and non-financial assets.
  • Two different categories of non-financial
    assets need to be distinguished from each other
    produced and non-produced assets.
  • Produced assets
  • Produced assets are defined as non-financial
    assets that have come into existence as outputs
    from processes of production. There are three
    main types of produced assets fixed assets,
    inventories and valuables. 

3
Chapter 5 The capital account ?????????Section 1
The basic concepts of capital formation?????????
  • Non-produced assets
  • Non-produced assets are defined as
    non-financial assets that have come into
    existence in ways other than through processes of
    production.
  • Non-produced assets consist of assets that are
    needed for production but have not themselves
    been produced.  
  • They include naturally occurring assets such as
    land and certain uncultivated forests and
    deposits of minerals.  
  • They also include certain intangible assets such
    as patented??? entities.

4
Chapter 5 The capital account ?????????Section 1
The basic concepts of capital formation?????????
  • ??The asset boundary
  • First, Only those naturally occurring assets
    over which ownership rights have been established
    and are effectively enforced can therefore
    qualify as economic assets.
  •  Secondly, those assets are commercially
    exploitable????in the foreseeable future.

5
Chapter 5 The capital account ?????????Section 1
The basic concepts of capital formation?????????
  • ??The acquisitions and disposals of assets
  • Acquisitions of assets
  • Acquisitions of assets is that any assets are
    acquired through buying , capital transfers in
    kind, barter or production for own use.  
  • Disposals of assets
  •   Disposals of assets is that the amount of
    assets are decreased through selling , capital
    transfers in kind, barter ,or scrapping. 

6
Chapter 5 The capital account ?????????Section 1
The basic concepts of capital formation?????????
  • ?? The participants and object of the capital
    account
  • ????????????
  • ? The participants All institutional units or
    sectors
  • ? The objectThe capital formation
  • ??The principle of capital account??????
  • TimingThe time at which gross fixed capital
    formation is recorded is when the ownership of
    the fixed assets is transferred to the
    institutional unit that intends to use them in
    production.  
  • ValuationThe current purchasers' prices
  •   

7
Chapter 5 The capital account ?????????Section 2
The capital formation ????
  • ??Gross fixed capital formation
  • Gross fixed capital formation is measured by
    the total value of a producer's acquisitions,
    less disposals, of fixed assets during the
    accounting period plus certain additions to the
    value of non-produced assets realized by the
    productive activity of institutional units.

8
Chapter 5 The capital account ????????? Section
2 The capital formation ????
  • ??Gross fixed capital formation
  • The following main types may be distinguished
  • (a)  Acquisitions, less disposals, of new or
    existing tangible fixed assets, subdivided by
    type of asset into        (i)  Dwellings      
      (ii) Other buildings and structures        (ii
    i) Machinery and equipment        (iv)
    Cultivated assets ???? 
  • (b)  Acquisitions, less disposals, of new and
    existing intangible fixed assets, sub-divided by
    type of asset into        (i)  Mineral
    exploration        (ii) Computer
    software        (iii) Entertainment, literary
    or artistic originals        (iv) Other
    intangible fixed assets
  • (c)  Major improvements to tangible non-produced
    assets, including land
  • (d)  Costs associated with the transfers of
    ownership of non-produced assets.

9
Chapter 5 The capital account ????????? Section
2 The capital formation ????
  • ??Changes in inventories
  • The value of changes in inventories recorded
    in the capital account is equal to the value of
    the inventories acquired by an enterprise less
    the value of the inventories disposed of during
    the accounting period.  
  • The inventories may be distinguished to
    Finished goods, Work-in-progress ,Materials and
    supplies.

10
Chapter 5 The capital account ????????? Section
2 The capital formation ????
  • ??Acquisitions less disposals of valuables
  • Valuables are assets that are not used
    primarily for production or consumption, that do
    not deteriorate over time under normal conditions
    and that are acquired and held primarily as
    stores of value.    Valuables consist of
  • (a)  Precious stones and metals such as diamonds,
    non-monetary gold, platinum, silver, etc., held
    by any units including enterprises provided that
    they are not intended to be used as intermediate
    inputs into processes of production
  • (b)  Paintings, sculptures, etc., recognized as
    works of art and antiques
  • (c)  Other valuables, such as jewellery fashioned
    out of precious stones and metals and collections.

11
Chapter 5 The capital account ????????? Section
2 The capital formation ????
  • ??Acquisitions less disposals of non-produced
    non-financial assets
  • Non-produced non-financial assets consist of
    land, other tangible assets that may be used in
    the production of goods and services, and
    intangible assets.
  • 1. Acquisitions less disposals of land
  • Land is defined in the System as the ground
    itself,
  • including (a)  The soil covering
  • (b)  Associated surface water
  • but excluding (a)  Buildings , roads, tunnels,
    etc.
  • (b)  Vineyards,
    orchards, etc.
  • (c)  Subsoil assets
  • (d)  Non-cultivated
    biological resources
  • (e)  Water resources
    below the ground.

12
Chapter 5 The capital account ????????? Section
2 The capital formation ????
  • ??Acquisitions less disposals of non-produced
    non-financial assets
  • 2. Acquisitions less disposals of other tangible
    non-produced assets
  • In practice, these consist of acquisitions less
    disposals of subsoil assets.  Subsoil assets
    consist of known deposits of coal, oil, gas or
    other fuels and metallic ores, and non-metallic
    minerals, etc., that are located below or on the
    earth's surface, including deposits under the
    sea.
  • 3. Acquisitions less disposals of intangible
    non-produced assetsIntangible non-produced
    assets consist of patented entities, leases or
    other transferable contracts, purchased
    goodwill?? and other intangible non-produced
    assets.    The value of acquisitions of
    intangible non-produced assets include the
    associated costs of ownership transfer incurred
    by the purchaser while disposals are valued after
    deducting the costs of ownership transfer
    incurred by the seller.  The costs of ownership
    transfer are a component of gross fixed capital
    formation.

13
Chapter 5 The capital account ????????? Section
2 The capital formation ????
  • ??Capital transfers
  • 1. Introduction
  • A capital transfer is defined as a
    transaction in which one institutional unit
    provides assets to another unit without receiving
    in return from the latter any counterpart in the
    form of a good, asset or service. 
  • The difference between current and capital
    transfers
  • (a) A capital transfer should result in a
    commensurate change in assets.  
  • (b) A current transfer should only result in a
    commensurate change in the income and consumption
  • (c) Capital transfers may be tend to be large and
    infrequent.

14
Chapter 5 The capital account ????????? Section
2 The capital formation ????
  • ??Capital transfers
  • 2. Capital taxes
  • Capital taxes consist of taxes levied at
    irregular and very infrequent intervals on the
    values of the assets or net worth owned by
    institutional units or on the values of assets
    transferred between institutional units as a
    result of legacies, gifts inter vivos or other
    transfers.  
  • They include the following taxes    (a)  Capital
    levies    (b)  Taxes on capital transfers.

15
Chapter 5 The capital account ????????? Section
2 The capital formation ????
  • ??Capital transfers
  • 3. Investment grants
  • Investment grants consist of capital
    transfers in cash or in kind made by governments
    to other resident or non-resident institutional
    units to finance all or part of the costs of
    their acquiring fixed assets. 
  • Investment grants do not include transfers
    of military equipment in the form of weapons or
    equipment whose sole function is to fire such
    weapons, as these are not classified as fixed
    assets.

16
Chapter 5 The capital account ????????? Section
2 The capital formation ????
  • ??Capital transfers
  • 4. Other capital transfers
  • Other capital transfers consist of all
    capital transfers except capital taxes and
    investment grants.  
  • One notable category included here is the
    cancellation of debt???? by mutual agreement
    between the creditor and the debtor. However, the
    writing off of debt???? is not a transaction
    between institutional units and therefore does
    not appear either in the capital account or the
    financial account of the System.  

17
Chapter 5 The capital account ????????? Section
2 The capital formation ????
  • ??Net lending or borrowing
  • The balancing item of the capital account,
    described as net lending or borrowing, is defined
    as follows
  • (a)   Net saving plus capital transfers
    receivable minus capital transfers payableminus
  • (b)  The value of acquisitions less disposals of
    non-financial assets, less consumption of fixed
    capital.
  • When positive, it is called as net
    lending. 
  •   When negative, it is called as net
    borrowing.  

18
Chapter 5 The capital account ?????????Section 3
The capital account ????
  • The capital account

19
Chapter 5 The capital account ????????? Section
4 Goods and services account???????
  • Goods and services account

20
? ?
  • 1.??????????
  • 2.???????????????????
  • 3.???????????
  • 4.??????????????
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