- the GFS operating statement;
A close approximation of the surplus/deficit concept that was used in the former (cash) version of the GFS system can be derived using the identity shown below
- the statement of stocks and flows;
A close approximation of the surplus/deficit concept that was used in the former (cash) version of the GFS system can be derived using the identity shown below
- the cash flow statement.
The first two of the statements can be derived directly from the analytical framework. The cash flow statement cannot be derived directly from the analytical framework because the framework is accrual based whereas the cash flow statement reflects flows of cash at a detailed level.
2.120. However, methodological differences between the present and former systems prevent a precise reconciliation between items in the cash flow statement and the surplus/deficit.
The cash surplus/deficit is a measure of a sector’s cash flow requirements and if positive (ie a surplus), it reflects cash available to governments to either increase financial assets or decrease liabilities. When this measure is negative (ie a deficit), it identifies the extent to which a government’s needs to run down its financial assets in order to finance the cash shortfall. Distributions paid are dividends and other returns to owners and shareholders made by public corporations. However, such payments impact on the cash surplus/deficit so must be included in the surplus/deficit formula. Assets acquired under finance leases are not included in the cash flow statement but, like distributions, these payments are considered to be cash outlays and as such, must form part of the surplus/deficit calculation.
2.121. Flows and stocks classifications are applied to all flows and stocks of in-scope enterprise units. Certain classifications apply exclusively to general government units and others apply exclusively to non-financial and financial corporations but most are common to both types of units.
However, cash flows are integral to the analytical framework inasmuch that they are part of transactions that result in changes to holdings of cash and deposits, which are included with financial assets in the accrual framework
2.122. The main classification, the economic type classification (ETF), is used to classify flows and stocks according to their economic nature (e.g. revenues, expenses, asset, liabilities). The government purpose classification (GPC) is used to classify expense transactions according to the government purpose (e.g. health, education, defence) of the expenditure.
2.123. Flows and stocks classifications can be viewed from two perspectives, an input perspective and an output perspective. The input perspective takes into account the nature and structure of the data that enter the system. The main sources of GFS data are government accounts and they provide accounting data that have to be reclassified and reorganised on an economic basis to be suitable for conversion to statistical output. As well, the input perspective identifies flows and stocks (e.g. those subject to elimination in consolidated aggregates) that do not enter final 
output as such. The output perspective views the classifications almost entirely as the lists of items that appear in published statistics. The classifications which are set out in appendix 3 are input classifications and are designed for use in classifying data from government accounts. In this chapter, an output perspective of the classifications is used as a basis for discussion of the concepts underlying published government finance statistics.
2.124. The economic type classification of stocks and flows is organised in sections that, in part, reflect the financial statements discussed in the previous section. However, the statement of stocks and flows is not reflected directly as a separate statement because the relevant items appear in different statements. The structure and broad content of the classification from an output perspective is set out in table 2.5 below. The table indicates (with ‘xx’) whether the listed items apply to general government and public corporations.