List of Components of National Capital Account

1. - National net lending or net borrowing

'Net lending' refers to the difference between changes in net worth due to saving and capital transfers and net acquisitions of non-financial assets (acquisitions less disposals of non-financial assets, less consumption of fixed capital). If the amount is negative it represents net borrowing.

1.1 - National net saving

1.2 - Consumption of fixed capital

'Consumption of fixed capital' refers to the decline, during the course of the accounting period, in the current value of the stock of fixed assets owned and used by a producer as a result of physical deterioration, normal obsolescence or normal accidental damage. The terms depreciation, capital consumption allowance, and capital cost allowance are often used in place of consumption of fixed capital but are avoided in the System of national accounts since the term depreciation is often used in commercial accounting in the context of writing off historic costs, whereas in the System of National Accounts consumption of fixed capital is dependent on the current value of the asset. Consumption of fixed capital is calculated for all fixed assets owned by producers, but not for valuables (precious metals, precious stones, etc.) that are acquired precisely because their value, in real terms, is not expected to decline over time. Fixed assets must have been produced as outputs from processes of production as defined in the System of National Accounts. Consumption of fixed capital does not, therefore, cover the depletion or degradation of natural assets such as land, mineral or other deposits, coal, oil, or natural gas, or contracts, leases and licences.

1.3 - National net capital transfers received

'Net capital transfers received' refers to the difference between the current transfers a sector receives from other sectors less the current transfers it pays to other sectors.

1.4 - Non-financial capital acquisition

'Non-financial capital acquisition' includes the gross fixed capital formation of a sector (fixed capital), plus its investment in inventories and its net acquisition of existing assets. This is a negative component of the national net lending or borrowing, i.e. it should be subtracted.