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The Time of Recording of Operations

  • Joaquim Miranda Sarmento
Chapter
Part of the Financial and Monetary Policy Studies book series (FMPS, volume 47)

Abstract

The recording of operations in the ESA 2010 is carried out using the “accrual” principle (when the expenditure is recorded, that is to say, when the economic value is created/transferred/extinguished, or when the obligation is assumed, changed, or cancelled), except for the case of taxes, where the “adjusted cash” principle is followed. The output is recorded when it is produced, rather than when it is paid for by a purchaser. The sale/purchase of an asset is recorded at the moment when its legal ownership is transferred, rather than at the moment of the respective payment. Interest is accounted for on an accrual basis, rather than when paid. Eurostat only considers as “extraordinary” those expenditures that result from non-controllable events, such as court decisions or natural disasters. The revenues and expenditures from non-repeatable events are considered as “one-off”; however, from a statistic/accounting point of view, these are considered for the calculation of the deficit in the National Accounts.

References

  1. European Commission (2012a) Occasional Paper nº 92/2012Google Scholar
  2. European Commission (2012b) Specifications on the implementation of the Stability and Growth Pact and guidelines on the format and content of Stability and Convergence ProgrammesGoogle Scholar
  3. European Commission (2015) Making the best use of the flexibility within the existing rules of the stability and growth pact. COMGoogle Scholar
  4. Eurostat (2016) Manual of government deficit and debt. https://ec.europa.eu/eurostat/documents/3859598/7203647/KS-GQ-16-001-EN-N.pdf/5cfae6dd-29d8-4487-80ac-37f76cd1f012. Accessed 1 Nov 2016
  5. Marinheiro C (2015) Classification of one-off budgetary items. Paper presented at 7th Meeting of OECD Parliamentary Budget Officials and Independent Fiscal Institutions, Vienna, 16–17 April 2015Google Scholar

Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  • Joaquim Miranda Sarmento
    • 1
  1. 1.ISEG Lisbon School of Economics and ManagementUniversity of LisbonLisbonPortugal

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