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A Non-Produced Non-Financial asset (NP) is something that has come into existence without human production but which can be used in production. NPs include:

  • Natural Resources such as land, untapped gas reserves, the radio spectra used for broadcasting and mobile communications
  • The value of having a contract that is greater than the cost of the contract. For example, if I have rented a building but can then sub-let the building for more than I paid, then the difference between the value at which I can sell the contract and the value at which I bought it is a non-produced asset. In this example, I am renting out the building without having made any improvements or providing the tenant with any other services: I have not produced anything extra.
  • Brand names, trademarks, logos, domain names and all marketing assets are non-produced non-financial assets. These are treated separately to the know-how to make the product or provide the service (which is Intellectual Property).

Non-Produced assets can be traded and their acquisition and disposal is recorded in the Sequence of Accounts. Produced Assets, which come into existence through human effort are a separate category. Unlike for Produced Assets, acquisition of NP does not add to GDP. 

Net Acquisitions of Non-Produced Non-Financial Assets (€ millions)

Read next: Natural Resources

A-Z of National Accounts

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