The complete core GFS framework can be presented in 4 core summary tables or statements: the

statement of operations, statement of other economic flows,

- statement of operations: all transactions, indicates the effect of fiscal policy on govts net worth and
demand for credit
- statement of other economic flows:revaluations and volume changes
-balance sheet: assets and liabilities owned, along with peincipal balancing items: net worth and net
financial worth
-cash flow statement”sources and uses of cash
Two supplementary statements: summary of total changes in net worth, summary of explicit and
implicit contingent liabilities

Net lending/borrowing= revenue-expense+net investment in non financial assets(purchase of capital

goods?)
operating balance=revenue-expense
expenditure=expense+NI in NFA
If NLB is positive then it is net lending
Transactions in financial assets-transactions in financial liabilities= Total net financing
Total net financing=NLB
Total assets=NFA+FA
Net Worth= Total assets-liabilities
Net financial worth=FA-L
There are 8 categories of financial instruments in GFS based on their liquidity and legal
characteristics: Gold and SDRs, currency and deposits, debt securities, loans, equity and investment
fund shares, insurance, pension and standardised guarantee schemes,financial derivatives and
employee stock options, other accounts receivable.
Other than equity and derivatives, (except gold) other categories are also debt instruments. A debt
instrument is one where the creditor has a financial claim on the debtor.

Total gross debt: all liabilities in the BS that are debt instruments.
Net debt= gross debt- financial assets corresponding to debt instruments. gross debt net of highly
liquid assets may be more useful for some analytical applications (i.e. Debt Sustainability Analysis)
net debt=/=net worth as it excludes non debt items
D1: debt securities+loans
D2: D1+SDR+currency and deposits
D3=D2+other accounts payable
fiscal risks is any potential differences between the actual and expected fiscal outcomes.Contingent
iabilities arise ony if a particular event happens. Contingent liabilities can be explicit or implicit.
Explicit arisis from a legal or contractual source. Guarantees can be contingent liabilities or
liabilities. Example of implicit are social security benefits. They are valued at nominal values. Most
derivates are not contingent liabilities.

In macroeconomic statistics a orporation is lassified as a corporation if it engages in market

production andit can be a source of profit to its shareholders.