The proposals of the System of National Accounts (SNA) 2008 for the measurement of employee stock options and pension funds are challenging for compilers of flow of funds accounts. This paper discusses the conceptual and practical difficulty of distinguishing holding gains from income, which is source of financial transactions, in estimating employee stock options and pension schemes. Regarding stock options, Income should be recorded when stock options are provided, while revaluation should be recorded for the changes of stock value. Although balances of stock options can be captured, it will be difficult to measure income and revaluation flows in conformity with changes in status until stock options are exercised. Regarding pension schemes, liabilities of unfunded pension plans can be estimated based on several assumptions. Changes in liabilities can take the form of income or revaluation depending on the cause of the changes, however, making such a distinction would be difficult.

Keywords: Flow of funds accounts; Stock options; Pension liabilities

Biography: Mr. Hagino is Director of Statistics Development and Coordination of the research and Statistics Department of the Bank of Japan. He works with Mr. Sakuramoto, who is research cooperator of the National Accounts Department of the Economic and Social Research Institute in Japan's Cabinet Office.