Methodological Notes


Financial accounts (FA) are data about the outstanding amounts of the financial assets and liabilities of the institutional sectors of the domestic economy at the end of the period as well as changes in the financial assets and liabilities (transactions, revaluation and other volume changes) over the period. They are an integral part of the System of National Accounts. The methodology of the compilation of financial accounts is defined by Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 (ESA 2010).

For the purposes of the national accounts system, economic entities that are capable of owning goods and assets, of incurring liabilities and of engaging in economic activities and transactions with other entities, are grouped together into institutional sectors and sub-sectors.


Non-financial corporations (S.11)

  • Public non-financial corporations (S.11001)
  • National private corporations (S.11002)
  • Foreign-controlled non-financial corporations (S.11003)

Financial corporations (S.12)

  • The central bank (S.121)
  • Deposit-taking corporations, excluding the central bank (S.122)
  • Money market funds (MMF) (s.123)
  • Non-MMF investment funds (S.124)
  • Other financial intermediaries, excluding insurance corporations and pension funds (S.125)
  • Financial auxiliaries (S.126)
  • Captive financial institutions and money lenders (S.127)
  • Insurance corporations (S.128)
  • Pension funds (S.129)

General government (S.13)

  • Central government (excluding social security funds) (S.1311)
  • Regional government (excluding social security funds) (S.1312)
  • Local government (excluding social security funds) (S.1313)
  • Social security funds (S.1314)

Households (S.14)

  • Employers (S.141) and own-account workers (S.142)
  • Employees (S.143)
  • Recipients of property and transfer income (S.144)
  • Recipients of property income (S.1441)
  • Recipients of pensions (S.1442)
  • Recipients of other transfers (S.1443)

Non-profit institutions serving households (S.15)

The rest of the world sector (S.2)

  • Member States, institutions and bodies of the European Union (S.21)
    • European Union Member States (S.211)
    • Institutions and bodies of the European Union (S.212)
  • Countries other than Member States and international organisations non-residents of the European Union (S.22)

Non-financial corporations (S.11)

In Lithuania, sector S.11 is not divided into sub-sectors. It covers all private and public institutional units producing market goods and providing non-financial services at market prices. In attributing institutions to the above-named sector, their legal status and activities are taken into account. This sector includes private limited companies, publiclimited liability companies, partnerships, state and municipal enterprises, non-profit institutions, which are market producers. This sector also includes head offices. It does not include sole proprietorships, although they are market producers. The latter units are attributed to the household sector.

Financial corporations (S.12)

The Financial corporations sector (S.12) in Lithuania includes private and public institutions engaged in financial intermediation and auxiliary financial activities.

Sub-sector Central bank (S.121) includes the Bank of Lithuania.

Sub-sector Deposit-taking corporations, except the central bank (S.122), includes commercial banks, foreign bank branches, the central credit union and credit unions.

Sub-sector Money market funds (MMF) (S.123) consists of collective investment undertakings (CIU) that invest in money market instruments and whose shares (units) issued are deemed close substitutes for deposits.

Sub-sector Non-MMF investment funds (S.124) consists of CIUs that mostly invest in long-term and non-financial assets, while their shares (units) issued are not deemed close substitutes for deposits.

Sub-sector Other financial intermediaries, except insurance corporations and pension funds (S.125), includes security and derivative dealers, financial leasing companies, companies engaged in factoring and venture capital companies.

Sub-sector Financial auxiliaries (S.126) consists of insurance brokers and agents, corporations whose principle function is to guarantee, securities brokers, managers of pension funds and mutual funds, Stock Exchange NASDAQ OMX Vilnius, Central Securities Depository, non-profit institutions serving financial corporations.

Sub-sector Captive financial institutions and money lenders (S.127) includes money lenders, pawn shops, holding companies that hold the assets (owning controlling-levels of equity) of a group of subsidiary corporations and whose principal activity is owning the group without providing any other services to the businesses in which the equity is held (they do not administer or manage other units).

Sub-sector Insurance corporations (S.128) consists of licensed life insurance companies and non-life insurance companies.

Sub-sector Pension funds (S.129) includes autonomous pension funds.

General government (S.13)

The sector General government consists of institutional units financed by compulsory payments. The sector’s primary function is provision of non-market services and/or redistribution of national income and wealth.

Lithuania’s general government sector is divided into the Central government, Local government and Social security funds sub-sectors.

Sub-sector Central government (excluding social security funds) (S.1311) consists of entities financed by state budget, extra-budgetary funds (Privatisation Fund, Savings Restitution Fund, Guarantee Fund, Reserve (Stabilisation) Fund, Fund for Decommissioning of Ignalina Nuclear Power Plant) and other non-market producers (Turto Bankas, Energy Agency, Ignalina Nuclear Power Plant, GIS-Centras, Agricultural Information and Rural Business Centre, public company Deposits and Investment Insurance as well as the Lithuanian National Radio and Television).

Sub-sector Local government (excluding social security funds) (S.1313) includes public administration of the local economic area, except administration of social security funds. It also includes municipal enterprise Vilniaus miesto būstas.

Sub-sector Social security funds (S.1314) consists of the State Social Insurance Fund Board and its territorial branches, Lithuanian Labour Exchange and its territorial branches, National Health Insurance Fund and territorial health insurance funds, and the extra-budgetary Employment Fund.

Households (S.14)

Sector Households consists of individuals or groups of individuals as consumers; farmers, as market producers; own-account workers and sole proprietorships.

Non-profit institutions serving households (S.15)

This sector consists of trade unions, various societies, consumer associations, political parties, churches and religious societies, associations of apartment house owners, social, cultural, recreational and sport clubs, charities and aid organisations.

Rest of the world (S.2)

Sector consists of non-resident units insofar as they are engaged in transactions with resident institutional units, or have other economic links with resident units. Its accounts provide an overall view of the economic relationships linking the national economy with the rest of the world. The institutions of the EU and international organisations are included.



Accounting rules of financial transactions

Financial transactions are transactions in financial assets and liabilities between resident institutional units and between them and non-resident institutional units.

Financial assets are economic assets consisting of payment instruments, financial claims and economic assets, which, in their nature, are close to financial claims.

ESA 2010 distinguishes eight categories of financial assets and liabilities. Two sub-categories Claims of pension funds on pension managers (F.64) and Entitlements to non-pension benefits (F.65) related to defined benefit pension schemes are of no relevance to Lithuania’s quarterly financial accounts, as only defined contributions pension schemes exist in Lithuania so far.

The financial transactions categories are equivalent to the financial assets and liabilities categories. Each financial asset has a counterpart liability, with the exception of monetary gold.

Below are presented the list and descriptions of financial instruments. Code F is used for marking of transactions; code AF — for marking of balance sheet positions (outstanding amounts).

Financial instrument categories

Financial instrument



Monetary gold and special drawing rights



      Monetary gold 


Gold bars of a purity of at least 995 parts per 1,000 that are held and managed by the Bank of Lithuania as part of its foreign reserve assets.

     Special drawing rights (SDR)


Reserve assets created and allocated by the International Monetary Fund to its members.

Currency and deposits


Currency and deposits are currency in circulation and deposits, both in national currency and in foreign currencies.



Notes and coins in circulation (national and foreign currencies) and used for payments.

      Transferable deposits


Overnight deposits.

      Other deposits


Time deposits, deposits redeemable at notice, non-negotiable saving certificates and repurchase agreements.

  Debt securities


Debt securities are negotiable financial instruments serving as evidence of debt.



Debt securities with an original maturity of one year or less.



Debt securities with an original maturity beyond one year.



Mortgage loans, consumer loans, financial lease and hire-purchase contract, repurchase agreements.



Loans, the initial repayment period of which is one year or less, loans repayable on demand and short-term repurchase agreements.



Loans, the initial repayment period of which is beyond one year and long-term repurchase agreements.

 Equity and investment fund shares or units


Equity securities entitling their holders to a share in the company’s profit or a share in the company’s net assets in the event of liquidation.




      Listed shares


Listed shares are equity securities listed on an exchange. Such an exchange may be a recognised stock exchange or any other form of secondary market.

      Unlisted shares


Unlisted shares are equity securities not listed on an exchange.

      Other equity


The equity in incorporated partnerships subscribed by unlimited partners; investments by general government in the capital of public corporations whose capital is not divided into shares; real estate acquired abroad.

  Investment fund shares or units


Shares/units issued by CIUs.

      MMF shares or units


 Shares/units issued by money market funds.

      Non-MMF investment fund shares/units


 Shares/units issued not by MMF.

Insurance, pension and standardised guarantee schemes



     Non-life insurance technical reserves


Funds of households and other sectors accrued as non-life insurance reserves.

     Life insurance and annuity entitlements


Household funds accrued as life insurance reserves.

      Pension entitlements


Household funds accrued in pension funds.

      Provisions for calls under standardised guarantees


Provisions formed by guarantors to meet outstanding calls under standardised guarantees.

Financial derivatives and employee stock options



     Financial derivatives


Options, futures and swaps, if they have a value; forward rate agreements.

     Employee stock options


A financial derivative under which an employee has the right to purchase a given number of shares of the employer’s stock at a stated price either at a stated timeor within a period of time immediately following the vesting date.

Other accounts receivable/payable



     Trade credits and advances


Credit by the suppliers of goods and services to their customers as well as advances or prepayments.

     Other accounts receivable/payable, excluding trade credits and advances


Financial claims or liabilities arising from timing differences between accrued transactions and payments made (taxes payable or receivable, social insurance contributions, wages and salaries, dividends, etc.).

Financial transactions determine changes in the balance sheet (outstanding amounts); however, changes between the opening and closing balance sheet values may comprise other flows as well. Other flows are divided into changes in the value of financial assets and liabilities over a period due to changes in market prices and exchange rates, which are recorded in the revaluation account, and other changes in the volume of assets and liabilities due to classification and structural changes, which are recorded in the account of other volume changes. The relationship between the outstanding amount at the beginning of period, outstanding amount at the end of period and financial transactions is reflected by the following equation:

Outstanding amount at the beginning of period + Financial transactions + Revaluation + Other volume changes = Outstanding amount at the end of period.

In drawing up Lithuania’s quarterly FA, financial transactions are generally included in accounting indirectly, i.e. as the difference between the outstanding amounts at the beginning of quarter and end of quarter minus revaluations and other volume changes.

Consolidated and non-consolidated financial accounts

Financial accounts may be consolidated and non-consolidated. All financial transactions between institutional units are recorded in non-consolidated FA. In consolidated FA, transactions between institutional units attributed to the same sector or sub-sector are eliminated. For consolidation purposes all transactions and positions are divided into:

  • intra transactions and positions, i.e. transactions between institutional units classified in the same sector and subsector;
  • inter transactions and positions, i.e. transactions between institutional units classified in the different sectors and subsectors.

Valuation at market prices

Market prices are ESA 2010 basic reference for valuation. Therefore, financial assets and liabilities have to be valued at market prices. This rule does not apply for financial assets and liabilities that do not have a secondary market. These are deposits, loans, and other accounts receivable/payable.

Accrual principle

Flows shall be recorded on an accrual basis; that is, when economic value is created, transformed or extinguished, or when claims and obligations arise, not when the corresponding payment is made.

In financial accounts, accrual principle is applied for:

  • interest receivable/payable that are recorded as reinvested financial assets;
  • trade credits when time of delivery of goods and services does not coincide with a corresponding payment;
  • other accounts receivable/payable, which arise from timing differences between accrued transactions and the corresponding payments made in respect of taxes, social contributions, wages and salaries, rents, etc.


Updated 08/10/2014