Other Change in Assets Account

The other changes in assets account records changes in the value of assets and liabilities that are not due to transactions. Within the Canadian System of National Economic Accounts these are called other economic flows. There are two types of other economic flows: revaluations and other changes in volume.

Revaluations reflect the change in the price of an asset. An example of this is when someone holds shares in a corporation and the value of the corporation’s shares increases. The value of the financial asset (shares) held by the individual increased even though they did not engage in a financial transaction.

Other changes in volumes reflect a change in the volume of an asset that is not due to a transaction or price change. An example of this is when a natural disaster occurs and destroys a non-financial asset, such as a building. In this case, the value of the asset needs to be ‘written off’. This write-off is referred to as a change in the volume of assets in the Canadian System of National Economic Accounts.

The international macroeconomic accounting standard, System of National Accounts 2008, recommends that the revaluations and the other changes in the volume of assets be recorded in separate accounts. Within the Canadian System of National Economic Accounts, given data limitations, these flows (revaluations and other volume changes) are recorded in a single account called the other changes in assets account.

The following table includes estimates of other changes in assets by institutional sector by financial asset and liability.