Draft GIAQ – ANNEX TO GNIC/312 of 16.10.2015

GNI ASSESSMENT QUESTIONNAIRE (GIAQ)

COUNTRY :……………………….IN CHARGE…………….……DATE……………CO-READER………………. .DATE…………… REVIEW BY HoU………….. .DATE…………...

Notes:

This questionnaire is intended to ensure a systematic, consistent and fair analysis of the GNI Inventories and other documentation used in assessing the quality of GDP and GNI estimates. The questionnaire lists a number of points to consider for each section of the inventories and the compilation of the accounts. It is primarily targeted at the Member States of the European Union. Quality, in this context, is defined as compliance with the criteria set up in the GNI Regulation 1287/2003 of the Council, i.e. reliability, comparability and exhaustiveness of national accounts estimates.

The questionnaire has been designed to cover all elements of the three approaches (production, expenditure and income) to the estimation of GDP. Clearly, the relevance and importance of these approaches will differ between Member States. Such country differences will need to be kept in mind when considering the answers to each of the questions.

The questionnaire should help to identify potential areas of weakness in order to primarily concentrate Eurostat's checks and Member States' improvement efforts on these.

The chapter and section numbers used in this questionnaire are consistent with those in the ESA 2010 GNI inventory guide (GNIC/281 rev1).

Chapter 1.Overview of the system of accounts

  1. Is the review presented in Chapter 1 an “executive summary” of the Inventory? Is it readable independently, while being fully consistent with the other chapters?
  2. Introduction
  3. Are the main approaches to GDP and the country's economicterritory described?

(a)Is the economic territory described consistent with that given in Commission Regulation 109/2005?

  1. Are the organisation and responsibilities within the NSI described? (organisation chart and indications of the number of staff working on national accounts)
  2. Is there a description and information on the supervisory and control systems in place, with regard to the compilation of national accounts covering the following aspects:

(a)Is there the performance of a regular and comprehensive analysis of potential risks in the main data sources and methods used and the application of actions aimed at managing and minimising these risks?Does this approach include a description of the national accounts compilation process andis it formalised by the National Statistical Institute in order to further reinforce the national accounts compilation process?

(b)Is there documentation of the supervisory controls on national accounts compilation performed by management?

(c)Are there formal service level agreements between national accounts units and the units supplying basic statistical data in order to aid proper control and a timely delivery of good quality data?

(d)Is there a regular procedure to prepare quality reports on statistical sources and products?

(e)Is there the performance of internal audits/reviews on the processes of collection and compilation of statistical data?

1.1.The revisions policy and the timetable for revising and finalising theestimates; major revisions since the last version of the GNI Inventory

  1. Is there an outline of the Member States' policy for current and major revisions?
  2. Is there an outline of the impact of the transition from ESA 1995 to ESA 2010 on GNI?
  3. Outline of the production approach
  4. Does the outline of the production approach provide:

(a)An adequate summary of Chapter 3?

(b)Information on the reference frameworks used (for example, register of enterprises, register of government units, employment data)?

(c)Information on the main data sources used?

(d)Information on the conceptual adjustments made to transition from the basic data sources (e.g. private accounting, survey or administrative data) to national accounts concepts?

(e)Information on the main approaches taken with respect to exhaustiveness? (Using the N1-N7 taxonomy of the tabular approach to exhaustiveness).

1.3.Outline of the income approach

  1. Does the outline of the income approach provide:

(a)An adequate summary of Chapter 4?

(b)Information on the main data sources?

(c)Information on whether gross operating surplus and mixed income are independently compiled or estimated as a residual?

(d)Information on the conceptual adjustments made to transition from the basic data sources (e.g. private accounting, survey or administrative data) to national accounts concepts?

(e)Information on the main approaches taken with respect to exhaustiveness? (Using the N1-N7 taxonomy of the tabular approach to exhaustiveness).

1.4.Outline of the expenditure approach

  1. Does the outline of the expenditure approach provide:

(a)An adequate summary of Chapter 5?

(b)Information on the main data sources used?

(c)Information on the, conceptual adjustments made to transition from the basic data sources (e.g. private accounting, survey or administrative data) to national accounts concepts

(d)Information on the main approaches taken with respect to exhaustiveness? (Using the N1-N7 taxonomy).

1.5.The balancing or integration procedure, and main approaches tovalidation

  1. Does the outline of the balancing or integration procedure provide:

(a)An adequate summary of Chapter 6?

(b)Information on whether all three approaches to GDP are used for the balancing procedure?

(c)A summary of the mechanism used to balance or integrate the different approaches to GDP and the level of manual versus automatic balancing?

1.6.Overview of the allowances for exhaustiveness

  1. Does theoutline of the general approach to exhaustiveness provide:

(a)An adequate summary of Chapter 7?

(b)Information on the approach to exhaustiveness?

(c)An explanation of which approach to GDP is considered the most exhaustive and how the consistency of exhaustiveness adjustments is ensured between the different approaches to GDP?

1.7.The transition from GDP to GNI

  1. Does theoutline provide:

(a)An adequate summary of Chapter 8?

(b)Information on the main data sources?

(c)Information on the main adjustments made in the compilation of cross border flows?

1.8.Main classifications used

  1. Is it an adequate summary of Chapter 9?
  2. Is there a list of main classifications used?
  3. Has the level of detail used by the NSI in the compilation of national accounts been described?
  4. Main data sources used
  5. Is it an adequate summary of Chapter 10?
  6. Is there a list of main data sources used to compile the main national accounts aggregates?

Chapter 2.The revisions policy and the timetable for revising and finalising the estimates; major revisions since the last version of the GNI Inventory

2.1The revisions policy and the timetable for revising and finalising the estimates

  1. Is an overview table for current revisions provided linking the revision timetable to the main data sources available and used at the consecutive revision dates?
  2. Is there a description of the overview table?
  3. Are all data sources used for the estimation of GNI available in good time to meet the needs of the GNI own resource?
  4. Is there a description of the policy for major revisions?
  5. Does the revision policy allow new source data and estimation methods to be included in the GNI figures in accordance with the needs of GNI for own resource purposes?

2.2.Major revision due to the transition from ESA 1995 to ESA 2010

  1. Is an overview table on the impact of changes from ESA 1995 to ESA 2010 on the GNI Questionnaire for all transition items provided? (It may use the format of Table 1 in the Manual on the Changes between ESA 95 and ESA 2010, but indicating values and not only direction of the impact).
  2. Is the impact of each transition item on individual components in the abovementioned overview table consistent with the direction of the impact indicated in Table 1 in the Manual on the Changes between ESA 95 and ESA 2010?
  3. For each transitional item identified as having an impact on GNI in the Manual on the Changes between ESA 95 and ESA 2010 (i.e transitional items 1-11) is the following provided:

(a)An outline of the conceptual change?

(b)The impact on GNI explicitly quantified?

(c)A detailed description of the calculation of the transition item, including numerical evidence?

(d)Does this description and numerical evidence address all elements of the impact as identified under the headings "Consequences of the change" in the above mentioned Manual?

  1. If for any transitional items identified as having an impact on GNI in the Manual on the Changes between ESA 95 and ESA 2010 the country indicates no impact or impact equal 0 is this explained and justified?
  2. Are the items for which the new treatment in the ESA 2010 necessitated the use of new sources and methods listed?
  3. Are these sources and methods described in this section or are references to the description in other relevant sections of the Inventory made?
  4. Does the description include:

(a)The reference year of when the new source and method was first used?

(b)The method of back-casting to produce a time series (if any)?

(c)A reference to any specific research study that informs the new methodology?

2.3.Major revisions since the last version of the GNI Inventory other than due to conceptual changes in ESA 2010

  1. Is an overview provided of the revisions due to the GNI reservations (specific and transversal)?
  2. Is the impact on GNI for the years under reservation shown in both nominal and relative terms?
  3. Are major revisions, other than those due to the GNI reservations, made since the last version of the GNI Inventory outlined (including their impact on GNI in both nominal and relative terms)?
  4. Is the description consistent with the information submitted in the relevant Quality Reports provided to Eurostat?

2.4.Planned actions for improvements

  1. Has the Member State listed any planned action for improvements, including improvements to basic statistics?

Chapter 3.The production approach

3.0.GDP according to the production approach

  1. Has a table describing the breakdown of output, intermediate consumption and gross value added by NACE section been provided?
  2. Is it consistent with the information provided in the Process Tables?
  3. Has a table describing the breakdown of gross value added by NACE sections and institutional sectors (S11-S15)been provided?

3.1.The reference framework

  1. Are the business registers and other registers of units used in the production approach described?
  2. Is detailed information on the coverage of the units in the business register provided?
  3. Is there a cut-off threshold for small units in the register?

(a) If so, are the measures taken to include these units for national accounts purposes described? (Reference may be made to the description of measures taken to address absence of registered and economically active units from statistical files – NOE types N4 and N5 - in Chapter 7 on exhaustiveness). Are these measures satisfactory?

  1. Is the treatment of unincorporated enterprises, private non-profit institutions, non-profit institutions serving businesses and non-market producers in the register(s) described?Are these units correctly included in national accounts?
  2. Are measures taken to update the business registers described? (Reference may be made to the description of measures taken to address absence of registered and economically active units from statistical files – NOE types N4 and N5 - in the Chapter 7 on exhaustiveness).Are these measures satisfactory?
  3. Is information provided on the producer units not obliged to register and the measures taken to include these units for national accounts purposes? (Reference may be made to the description of measures taken to address absence from statistical files of producers not required to register – NOE type N3 - in the Chapter 7 on exhaustiveness).Are these measures satisfactory?
  4. Is information provided on the treatment of producer units' deliberately not registering – underground and illegal producers? (Reference may be made to the description of measures taken to address absence from statistical files of producers deliberately not registering – NOE types N1 and N2 - in the Chapter 7 on exhaustiveness).Are these measures satisfactory?
  5. Is information provided on how Special Purpose Entities (SPEs) are identified for their inclusion in national accounts? Is this approach satisfactory?
  6. Is information provided on the type of statistical units used in the production approach to GDP (institutional units vs. local kind-of-activity units / enterprise vs. establishment)?
  7. Are the main sources used for each institutional sector listed and the most important ones described in more detail? (Reference may be made to Chapter 10 on the main data sources used).
  8. Is information provided on the following requirements relating to the quality of the statistical sources used for the production approach:

(a)Is annual data collected on all activities of production through regular enterprise surveys?

(b)For the activities surveyed, are all size classes covered?

(c)Are periodic surveys carried out regularly (for surveys carried out less frequently than every year)?

(d)Are ad-hoc surveys conducted to complement regular inquiries?

(e)Are administrative data obtained on a regular and timely basis in order to have good quality estimates quickly?

3.2The borderline cases

  1. Is information provided on how the inclusion of the following borderline cases in the production approach is ensured:

(a)Own-account gross fixed capital formation (GFCF) including, in particular:

  1. mineral exploration?
  2. machine tools produced by engineering enterprises?
  3. construction or extensions to dwellings by households and communal construction undertaken by groups of households?
  4. entertainment, literary and artistic originals?
  5. software?
  6. research and development?

(b)Production, storage and processing of agricultural products for own-account by households?

(c)Dwelling services produced by owner-occupiers?

(d)Household services produced by employing paid domestic staff?

(e)Volunteer activities that result in goods?

(f)Products used for payments in kind?

(g)Products bartered?

(h)Products supplied by one local KAU to another within the same institutional unit to be used as intermediate inputs or for final uses?

(i)Products added to the inventories of finished goods and work-in-progress (including natural growth of animal and vegetable products, standing timber and uncompleted structures for which the buyer is unknown)?

Are these cases correctly included in production?

  1. Is information provided on how theinclusion of the following borderline casesin intermediate consumption are ensured:

(a)Costs of using rented fixed assets (mainly operational leasing)?

(b)Inexpensive tools used for common operation and small devices such as those listed in the ESA2010 §3.89 (f) (1)?

(c)Subscriptions, contributions or dues paid to non-profit business associations?

(d)Goods and services received from another local KAU of the same institutional unit that comply with the definition of intermediate consumption (IC)?

(e)Non-life insurance service charges (payments for life insurance should be excluded)?

(f)FISIM purchased by resident producers?

(g)Research and development acquired to be used solely in the creation of further products of research and development (all other research and development should be treated as GFCF)?

(h)Goods and services used as inputs into ancillary activities?

(i)Expenditure by employees, reimbursed by the employer, on items necessary for the employers' production?

Are these cases correctly included in intermediate consumption?

  1. Is information provided on the exclusion of the following borderline cases from intermediate consumption:

(a)Items to be treated as gross capital formation, e.g. valuables, mineral exploration, major repairs and improvements (renovation, reconstruction or enlargement), software, research and development (with the exception of the R&D acquired to be used solely in the creation of further products of R&D), military weapons;

(b)Expenditure to be treated as the purchase of non-produced assets, e.g. long-term contracts, leases and licenses;

(c)Expenditure by employers to be treated as wages and salaries in kind;

(d)Use by market or own-account producer units of collective services provided by government units (to be treated as collective consumption expenditure by government);

(e)Goods and services produced and consumed within the same accounting period and within the same local KAU (to be also excluded from output);

(f)Payments for government licenses and fees that are to be treated as other taxes on production;

(g)Payments for licences for using natural resources (e.g. land) that is to be treated as rents, i.e. as a payment of property income.

(h)Decommissioning for large capital assets.

Are these cases correctly excluded from intermediate consumption?

  1. Is information on the borderline cases concerning taxes and subsidies on products described here or is reference made to descriptions in Sections 3.28 and 3.29?

3.3Valuation

  1. Is information provided on the procedures applied, if necessary, to ensure that output is valued at basic prices? In particular:

(a)Is the procedure to arrive at the basic prices for market output described?

(b)Are basic prices directly available from the sources used or are adjustments made in national accounts to ensure a transition from producer's prices reported by enterprises to basic prices?

(c)If these adjustments are made are taxes on products properly deducted and subsidies on products properly added in the transition to basic prices?

(d)Is consistency between the scope of taxes and subsidies in this transition and the scope of taxes and subsidies from the government accounts used in the estimation of GDP ensured?

(e)Is output for own final use valued at the basic prices of similar products sold on the market?

  1. If it is only the case for some own-account products, are they explicitly listed?

(f)If output for own final use is not valued at the basic prices of similar products sold on the market, is it valued at the costs of production plus a mark-up (except for non-market producers) for net operating surplus or mixed income?

  1. Is the estimation of the mark-up described?

(g)Are the own-account products for which output is valued at the costs of production explicitly listed?

(h)If output for own final use is valued at the costs of production, do these costs include all necessary elements, i.e. intermediate consumption, compensation of employees, consumption of fixed capital and other taxes on production less other subsidies on production?

(i)Are additions to work-in-progress valued in proportion to the estimated current basic price of the finished product?

(j)Is the total output of a non-market producer (a local KAU) valued at the total costs of production, i.e. the sum of: intermediate consumption; compensation of employees, consumption of fixed capital, and other taxes on production less other subsidies on production?

(k)Is other non-market output valued at the total costs of production minus market output (output at economically significant prices) and output for own final use?

  1. Is output recorded and valued when it is generated by the production process (the accruals principle)?

(a)If not, are steps taken to ensure that the accrual principle is applied for national accounts purposes?