Introduction to Classification
Classification is about how to record entities and their transactions in an accounting system. The classification rules of the system in question are used to determine which bodies should be included within that system, and how their activity should be recorded. The classification rules therefore affect all outputs from the accounting system, such as the overall surplus/deficit.
There are different systems for the classification of transactions depending on whether we are considering resource accounts and budgets, or national accounts and the fiscal rules, since these systems have different purposes.
The short paper introduces the classification systems. Readers new to the area are advised to read this paper as it introduces the national accounts, the fiscal rules and main fiscal aggregates and the concepts used in financial accounts and departmental budgets and Estimates.
Guidance not maintained by classification branch
Some of the above documents are available in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.
For further information, contact Andrew Evans (020 7270 4623) or Lesley Neill (0207 270 5338).
Back to top