balance sheets that record the values of assets and liabilities held at the beginning and end of the period. SNA is compiled and presented in a format that designed for purposes of economic analysis, decision taking and policy making.
Economic activity is the core of interest in SNA and composed of production of goods and services, their distribution for end purposes, remuneration to factors contributing in the process of production i.e. labor income, and non-labor income i.e. property incomes (rent, interest, and dividends), and entrepreneurial income (profit). The redistribution i.e. taxes, transfer payments in term of current transfers and capital transfers is also recorded. In the respect of sectoring in SNA, economic transactions is classified upon the function of economic activity basis, they are production, consumption, and accumulation (saving or investment). For opened economy, exports and imports of goods and services will be taken into account as rest of the world sector. National accounts is the core origin of other related accounts i.e. input-output table, balance of payments accounts, flow-of-funds accounts, and national balance sheet accounts.
The first SNA was established by United Nations Statistical Office (UNSO) in 1953 called 1953 SNA. Two comprehensive revision were made in 1968 and 1993 and called 1968 and 1993 version respectively (see Annex 1).
The inter - relationship of aggregates in the 1953 SNA can be expressed as following;
Expenditure on GDP
= Private (household) Consumption Expenditure (PCE)
+ General Government Consumption Expenditure (GCE)
+ Gross Fixed Capital Formation (GFCF)
+ Change in Stocks
= Gross Domestic Product (GDP) at market prices
+ Factor incomes received from the rest of the world
- Factor incomes payment to the rest of the world
= Gross National Product (GNP)
- Depreciation
