Municipal accounts

Working capital

The municipality accounts is a working capital oriented account, whereby the operational accounts shows both the acquirement and application of funds. The working capital is the differance between liquid assets and short-term liabilties. The municipality accounts therefore shows the capability of the municipalities to pay-off both the short- and long term debts.

Modified accrual basis principle

A fundamental principle of the municipal accounts is that the accounts are kept on a modified accrual basis. All known revenues and expenditures in the period must be included in the accounts for the concerning years, whether they are paid or not at the accounts closure. The time of payment is not significant for the accounts, but the time of acquisition and use.

Yearly municipal accounts

The yearly municipal accounts are the basics for the statistics, which is included in this publication. This includes operating accounts, capital accounts and balance sheets accounts.

Operating account

The operating account includes revenues and expenditures, and also includes repayment etc.

Capital account
The capital account includes investment expenditures and shows how these are financed by use of loans and other means of investment.

Balance sheet account
The balance sheet accounts show a summary of property (current and fixed assets) and debt and net capital (short-term debt, long-term debt, net capital and memorandum accounts). In the balance account, the counter sector will also be stated.

Account category
The account category divides the operational, capital and balance sheet accounts. Category 1 and 3 states the operational account, category 0 an 4 states the capital account and category 2 and 5 states the balance sheet account.

Function
Function states which objective revenues and expenditures are according to, for instance administration, kindergarten, primary school, childcare and wastewater. See Codelist for Accounting functions for a complete list of the functions in use.

Types
Types define different expenses and revenues. They consist of these main categories:

Expenses
-Wage
-Social expenditure
-Purchase of goods and services included in municipal service production
-Purchase of goods and services replacing municipal service production
-Grants
-Financial expenditure/financial transactions

Revenues
-Sales revenues
-Grants subject to return service
-Government and other grants not subject to return service
-Financial expenditure/financial transactions

The classification by type also includes types that are meant to specify transactions between municipalities and municipality associated companies and inter-municipal companies. The objective with these types is to consolidate between the purchase and sale internally between municipalities and municipal units with separate consolidated accounts.

See Codelist for KOSTRA accounting types and balance post for a complete list of the types in use.

Classification of municipalities

Codelist for KOSTRA - municipality-groups

Codelist for municipalities in each KOSTRA - municipality-group

Statistics Norway has classified the municipalities into 17 categories, by number of inhabitants and economic external conditions.

Codelist for KOSTRA counties authority division

Codelist for KOSTRA-districts in Oslo and associated regional grouping.

Codelist for Accounting functions

Codelist for KOSTRA accounting types and balance post

Codelist for KOSTRA accounting classes