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Statistical presentation

Contact info

Government Finances, Economic Statistics
Jesper Søgaard Dreesen
+45 3917 3054

jsd@dst.dk

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Financial Accounts

The financial accounts clarify how institutional sectors in the economy place/finance their net lending/net borrowing thereby the financial accounts show how the financial net worth is divided into different financial instruments. The financial accounts are published on an annual basis and consists of four parts: financial (transactions) account, account of other changes in volume, revaluation account, opening balance sheet account and the closing balance sheet account.

Data description

The financial accounts clarify how institutional sectors in the economy place/finance their net lending/net borrowing thereby the financial accounts show how the financial net worth is divided into different financial instruments.

Financial accounts consists of four parts: financial (transactions) account, account of other changes in volume, revaluation account, opening balance sheet account and the closing balance sheet account. The role of the first three accounts is to show the transition from the opening balance sheet account to the closing balance sheet account. The financial (transactions) account, which shows purchase and selling of financial instruments, indicate how the economy's sector places its net lending/borrowing. The revaluation account shows adjustments in the instrument's value during the accounting period. The account for other changes in volume capture among others losses on debtors and relocations of units between sectors. The financial accounts follow the framework set by the European System of Accounts 2010 (ESA 2010). The following instruments are contained in each account:

F.1 Monetary gold and Special Drawing Rights (SDR). This instrument is partitioned into:

  • F.11 the gold stock held by the Danish Central Bank
  • F.12 SDRs allocated to the members of The International Monetary Fund

F.2 Currency and deposits. This instrument is partitioned into:

  • F.21 notes and coins in circulation issued by the resident monetary authorities
  • F.22 transferable deposits which are fully convertible into currency on demand and which are directly usable for making payments by cheque, draft, bankers order or other direct payment facilities, without penalty or restriction
  • F.29 other deposits

F.3 Debt securities. It includes financial assets which are negotiable and bearer instruments, are usually traded on secondary markets, and do not grant the owner any ownership rights in the issuing institutional unit. Includes bills of exchange, bonds, treasury notes, certificates of deposit, commercial papers or the like, which are traded at the financial markets. The instrument is partitioned into:

  • F.31 short-term debt securities
  • F.32 long-term debt securities

F.4 Loans. It consists of financial assets created when creditors lend funds to debtors, either directly or through a intermediary, evidenced by non-negotiable documents or not evidenced by documents. The instrument is divided into:

  • F.41 short-term loans
  • F.42 long-term loans

F.5 Equity and investment fund shares or units. The instrument consists of financial assets by which the exchange has a transfer of ownership rights on corporations or quasi-corporations. These financial assets usually entitle the holders to a share in the profits of the corporations or quasi-corporations and to a share in their net assets in the event of liquidation. The instrument is further divided into:

  • F.51 equity. The instrument is further divided into:
  • F.511 listed shares
  • F.512 unlisted shares
  • F.519 other equity

  • F.52 Investment fund shares or units. The instrument is further divided into:

  • F.521 money market fund (MMF) shares or units
  • F.522 non-MMF investment fund shares or units

F.6 Insurance, pension and standardised guarantee schemes. It consists of households' pension entitlements in life insurance which includes technical provisions of insurance corporations and pension funds against policy holders or beneficiaries. In addition the instrument includes prepayments of insurance premiums and reserves for outstanding claims. Prepayments of insurance premiums consist of the amount representing that part of gross premiums written which is to be allocated to the following account period. Reserves for outstanding claims consist of the total estimated cost of settling all claims arising from the events which have occurred up to the end of the accounting period, whether reported or not, less amounts already paid in respect of such claims. The instrument also includes standardised guarantee schemes. Standardised guarantees schemes, are guarantees, which usually covers small uniform amounts issued in large quantities. The amount is the estimated loss the issuer will suffer as a result of the guarantee. The instrument is partitioned into:

  • F.61 non-life insurance technical reserves
  • F.62 life insurance and annuity entitlements
  • F.63 pension entitlements
  • F.64 claims of pension funds on pension managers
  • F.65 entitlements to non-pension benefits
  • F.66 provisions for calls under standardised guarantees

F.7 Financial derivatives and employee stock options. Consist of financial instruments linked to a specified financial instrument or indicator or commodity. The instrument is divided into

  • F.71 financial derivatives
  • F.72 employee stock options

F.8 Other accounts receivable/payable. Financial assets which are created as a counterpart of a financial or a non-financial transaction in cases where there is a timing difference between this transaction and the corresponding payment. The instrument is divided into:

  • F.81 trade credits and advances
  • F.89 other accounts receivable/payable, excluding trade credits and advances

The statistic covers every institutional sector as defined by ESA 2010:

  • S.1 Total economy

    • S.11 Non-financial corporations
    • S.12 Financial corporations
    • S.121 Central Bank
    • S.122 Deposit-taking corporations except the central bank
    • S.123 Money market funds (MMF)
    • S.124 Non-MMF investment funds
    • S.125 Other financial intermediaries, except insurance corporations and pension funds
    • S.126 Financial auxiliaries
    • S.127 Captive financial institutions and money lenders
    • S.128 Insurance corporations
    • S.129 Pension funds
    • S.13 General government
    • S.1311 Central government
    • S.1313 Local government
    • S.1314 Social security funds
    • S.14 Households
    • S.15 Non-profit institutions serving households (NPISH)
  • S.2 Rest of the world

For each (sub-)sector, the financial accounts is calculated consolidated and unconsolidated. In the consolidated statements financial intermediaries between institutional units classified in the same (sub) sector is eliminated - for example loans from a bank (S.122) to a life insurance (S.128) is deducted in the consolidated statement of financial corporations (S.12). By definition the financial accounts for Rest of the world (S.2) is consolidated. The total economy (S.1) consolidated accounts is by definition a mirror image of rest of the world (S.2) financial accounts (except for the instrument F.1).

The consolidation includes primarily financial corporations deposits and loans, listed bonds, listed shares and other equity, insurance technical reserves and trade credits. The consolidation can not be considered to be exhaustive. This is especially true for non-listed shares and other equity where the ownership structure is often unclarified.

Classification system

The statistics follows the Danish industrial classification "Dansk Branchekode 2007" (DB07) a Danish version of EU's nomenclature (NACE). In short, DB07 is an extension of NACE, whereby the first four digits of an industrial classification match NACE and the two additional digits represent the Danish extension.

Sector coverage

The statistic covers every industry according to the Danish industrial classification "Dansk Branchekode 2007". The main text is only available in Danish.

Statistical concepts and definitions

Financial Assets: A financial asset can be any of these four items: a) Cash b) A contractual right to receive cash or similar from another entity c) A contractual right to exchange financial assets or liabilities with another entity on potentially favorable terms d) Equity of another entity

Financial Liabilities: A financial liability can be either of these two items: a) A contractual obligation to deliver cash or similar to another entity b) A contractual obligation to exchange financial assets or liabilities with another entity on potentially unfavorable terms

Statistical unit

The unit in the financial accounts is basically the local Kind-of-Activity Unit (KAU), the workplace, which is the smallest unit that can establish a production account. This unit is called the functional unit and it differs from the institutional unit, usually made up by the company, which is the economic and decision-making unit. While functional units are classified by industries, the institutional units are classified by institutional sector in the national accounts.

Statistical population

Institutional units are economic entities that are capable of owning goods and assets, of incurring debt and engage in economic activities and on its own account transactions with other entities.

Reference area

Denmark.

Time coverage

The statistics are updated on an annual basis. It currently covers a time frame from 1995 and onwards.

Base period

Not relevant for these statistics.

Unit of measure

The unit of measurement is DKK million.

Reference period

01-01-2018 - 31-12-2018

Frequency of dissemination

Annually.

Legal acts and other agreements

Regulation (EU) No 549/2013 of the European Parliament and of the Council the 21st of May 2013 on the European System of National Accounts in the European Union.

Cost and burden

The burden for the respondents is negligible since the underlying data of the statistics is gathered through registers, other published statistics and financial reports.

Comment

A general introduction to the financial accounts can be found in "Understanding Financial Accounts" by OECD (2017). The framework of financial accounts are defined by "European System of Accounts ESA 2010".