Statistics Department

sixth edition of the sixth edition of the Balance Balance of Payments Manualof Payments Manual

sixth edition of the sixth edition of the Balance Balance of Payments Manualof Payments Manual

Meeting of OECD Experts

on Goods and Services Statistics

September 17-19, 2007

Statistics Department

Purposes of this sessionPurposes of this sessionPurposes of this sessionPurposes of this session

where are we with the drafting of BPM6?what comes next?major changes affecting goods and services (refer to draft Chapter 10)outstanding issues and what to do about them

Statistics Department

timetable (1)timetable (1)timetable (1)timetable (1)

Sept 2007first complete draft to Balance of Payments Committee on balance of payments Statistics

end-Oct 2007 complete review by Committeeidentify omitted issues

end 2007 second complete draft for world-wide review (but note limits)

first half 2008 outreach seminars (senior level)

end-July 2008 near-final draft posted on IMF website

Statistics Department

timetable (2)timetable (2)timetable (2)timetable (2)

October 2008

(i) Committee to discuss/endorse proposed changes(ii) detailed (IMF) conversion plan to be discussed

end 2008: final draft, subject only to editing, to be posted on IMF website

2009 regional training courses based on BPM6

2009-2010(foreseen)

(i) MSITS updating completed?(ii) updating of Textbook and Guide

Statistics Department

outstanding issuesoutstanding issuesoutstanding issuesoutstanding issues

naming of component that used to be royalties and license fees

content of this component treatment of one-time payments for use

of software– for own use– for reproduction

sales of originals

Statistics Department

royalties and license feesroyalties and license feesroyalties and license feesroyalties and license fees

possible alternative titles: fees for the use of intellectual property

(current wording) licensing services for the right to use non-

financial intangible assets (CPC wording) license to use… (to follow the SNA) licensing services for the (right to) use of

intellectual property other

Statistics Department

classification of a right to use:classification of a right to use:classification of a right to use:classification of a right to use:

CPC classifies this to: section 7 – financial and related services;

real estate services; and rental and leasing services

division 73 – leasing or rental services without operator

group 733 – licensing services for the right to use non-financial intangible assets

Statistics Department

fees for the use of intellectual propertyfees for the use of intellectual propertyfees for the use of intellectual propertyfees for the use of intellectual property

include software licenses for own use? for reproduction? [=sale of an asset]

include downloadable products? include audio visual payments for

rights to use? for distribution/reproduction?

other comments

Statistics Department

one-time payments for use of softwareone-time payments for use of softwareone-time payments for use of softwareone-time payments for use of software

goods or services? (draft chapter 10 para 10.14) refer draft 1993 SNA rev. 1, para 10.97

– a license to use represents a an operating lease– a copy sold outright may be treated as a fixed asset if it satisfies the necessary conditions– a license to reproduce is regarded as the sale of part or all of the original asset if the new owner is responsible for distribution, support, and maintenance

Statistics Department

but…but…but…but…

SNA ongoing discussions (AEG outcomes): acquisition of a copy of a piece of software and

a license to use purchased with regular payments over a multi-year period under certain conditions which make this transaction the purchase of a fixed asset – financial lease (change of ownership of an asset and the creation of a financial asset/liability)

regular payments for a license to use without a long-term contract – operating lease

large initial payment followed by a series of smaller payments in succeeding years – initial payment is purchase of an asset and later payments are payments for a service

Statistics Department

classification of a right to use:classification of a right to use:classification of a right to use:classification of a right to use:

draft 1993 SNA Rev. 1 para 10.97: “The licence to use represents an

operating lease and payments to the holder of the original represent payments for the use of a service.”

questions: (i) should we create two subcomponents

for operational leasing? [in EBOPS, in BPM?]

(ii) what would be left to classify elsewhere?

Statistics Department

questions – input to questions – input to TFSITSTFSITS

questions – input to questions – input to TFSITSTFSITS

title for old component royalties and license fees? coverage of old component royalties and license fees? classification of old component royalties and license fees? treatment of one-time payments for the use of software

(goods or services?, which service?) possible EBOPS breakdown (for analytical purposes,

perhaps to follow CPC)? classification of downloadable products? treatment of sales of originals (audio-visual, software,

research and development)?

anything else?