National Accounting: definition, concept, tools презентация

Contents
Main approach to National Accounting
Definition of National Accounting
Main concepts of National Accounting
Main tools for macroeconomic analysis
Input-output framework
Definition of input-output framework
Purpose of input-output framework
Structure of input-output framework & Assumptions to follow
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Definition of National Accounting
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System or approach aimed at:
financial information about economic activities

Main concepts of National Accounting
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AGENTS:

Main concepts of National Accounting
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COMPONENTS:

Tools for macroeconomic analysis
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Input-output framework: Definition
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4
5

Input-output framework: Purpose
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Input-output framework: Structure & assumptions to follow
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1
Table of intermediate consumption
2
Table of Operating account (output) by branches
3
Table of Operating account (output) by products
4
Table of Resources / supply by products
5
Table of Uses / final consumption

Input-output framework: Table of intermediate consumption
Purpose / essence
To calculate the amount of intermediate consumption by products & by branches
To get the Matrix of technical economic ratios characterizing national economy`s productive structure
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Input-output framework: Table of intermediate consumption
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Formula to calculate ratios:
Aij = Xij / Xj, where
Aij — amount of product «i» necessary to produce a UNIT of product by branch «j»;
Xij — amount of intermediate consumption of product «i» by branch «j»;
Xj — effective output of branch «j» / output by branch.

Input-output framework: Table of intermediate consumption
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1
Branch is treated as performing ONE type of activity
2
Trade / commerce line is empty
3
Administration line is empty
4
Fictitious branch column is applied to register the amount of intermediate services rendered by FC
5
Territorial & CIF / FOB adjustment lines are to be empty

Input-output framework: Table of output by branches
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Total amount of intermediate consumption by branches
GVA = Gross value added
Output by branches = effective output for each branch

Input-output framework: Table of output by branches
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ASSUMPTION:
The amount of GVA for a fictitious branch is to be equal to the total amount of Intermediate consumption, BUT with the opposite (negative) sign, so that Effective output for this branch is ZERO.

Input-output framework: Table of output by products
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Allows to get output by Products data by means of transfers adjustments:
Fatal products transfers;
Agricultural products transfers;
Residual sales transfers.
Allows to exclude out of a particular branch services & products which do not correspond to its core activity by transferring them to the related branches.

Input-output framework: Table of output by products
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1
Branch is treated as a mono-producer
2
Total amount for transfers is to be ZERO
3
Total amount for output by products = output by branches
4
Amounts stated in output by product line are to be found in the 1st column of table # 4

Input-output framework: Table of resources by products
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1
Output by products within the national economy
2
Import of goods & services
3
Trade margins
4
Transport margins
5
Customs taxes & duties (on products)
6
VAT
7
Subsidies on products
8
Territorial & CIF / FOB adjustment lines

Input-output framework: Table of resources by products
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1
Amount of trade margins is to be excluded at the crossing of TRADE line & TRADE MARGINS column
2.1
Amount of assurance of imported goods is to be excluded at the crossing of TRADE line & CIF / FOB ADJ. column
2.2
Similar amount is to be excluded at the crossing of CIF / FOB ADJ. line & IMPORT OF GOODS column
2.3
Equation is achieved by registering a positive amount at the crossing of CIF / FOB ADJ. line & CIF / FOB ADJ. column
3
Expenses for market services made by residents abroad are to be shown as a single amount at the crossing of TERR. ADJ. line & IMPORT OF SERVICES column

Input-output framework: Table of Uses (by products)
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1
Final consumption expenditure of Households
2
Individual consumption of government
3
Collective consumption of government
4
Final consumption expenditure of non-profit institutions
5
Gross capital formation (GFCF + Variation of stocks + Acquisition / disposals balance of valuables)
6
Export of goods & services evaluated FOB

Input-output framework: Table of Uses (by products)
ASSUMPTIONS
Amount of expenses made by non-residents within the country is to be registered at the crossing of TERR. ADJ. line & EXPORT OF SERVICES column
Balance between NR`s expenses within the country & residents` expenses abroad is to be registered at the crossing of TERR. ADJ. line & FC expenditure of HH column
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Thank you for your attention
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Smirnova Ekaterina, PhD in Economics
Accounting team leader
[e-mail]