1998R2700 — EN — 19.10.2003 — 002.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COMMISSIONREGULATION(EC)No2700/98
of17December 1998
concerningthedefinitionsofcharacteristics forstructuralbusinessstatistics
(TextwithEEArelevance)
(OJ L 344, 18.12.1998, p. 49)
Amended by:
Official Journal
No page date
►M1Commission Regulation (EC) No 1614/2002 of 6 September 2002 L 244 7 12.9.2002
►M2Commission Regulation (EC) No 1670/2003 of 1 September 2003 L 244 74 29.9.2003
▼B
COMMISSIONREGULATION(EC)No2700/98
of17December 1998
concerning the definitions of characteristics for structural business
statistics
(TextwithEEArelevance)
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC, Euratom) No 58/97 of 20
December 1996 concerning structural business statistics (1) and in parti-
cular Article 12(iii) thereof,
Whereas Council Regulation (EC, Euratom) No 58/97 established a
common framework for the production of Community statistics on thestructure, activity, competitiveness and performance of businesses inthe Community;
Whereas it is necessary to implement a set of definitions for the struc-
tural business statistics characteristics;
Whereas the envisaged measures are in accordance with the opinion of
the Statistical Programme Committee,
HAS ADOPTED THIS REGULATION:
Article 1
1. The characteristics referred to in Article 4 of Regulation (EC,
Euratom) No 58/97 are defined in the Annex to thisRegulation.
2. In these definitions, references to company accounts use the head-
ings laid down in Article 9 (balance sheet), Article 23 (profit and lossaccount) or Article 43 (noteson the accounts ) of the Council Directive78/660/EEC (
2).
Article 2
1. Member States shall apply these definitions for the data
concerning the 1999 reference year and subsequent years.
2. Member States shall also apply these definitions for data
concerning the 1995, 1996, 1997 and 1998 reference yearswhere this
corresponds to existing national practices.
Article 3
ThisRegulation s hall enter into force on the 20th day following its
publication in the Official Journal of the European Communities .
ThisRegulation s hall be binding in itsentirety and directly applicable
in all Member States.1998R2700 — EN — 19.10.2003 — 002.001 — 2
(1) OJ L 14, 17.1.1997, p. 1.
(2) OJ L 222, 14.8.1978, p. 11.
▼B
ANNEX
DEFINITIONSOFCHARACTERISTICS
Code:11110
Title:Numberofenterprises
Definition
A count of the number of enterprises registered to the population concerned in
the business register corrected for errors, in particular frame errors. Dormant
units are excluded. This statistic should include all units active during at least
a part of the reference period.
For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom)
No 58/97 this characteristic shall also comprise pension funds that do not
employ personnel. It shall also include pension funds which are not established
aslegal entitiesand which are managed by pens ion fund management compa-
nies, insurance enterprises or other financial institutions (without however
being covered by the annual accounts of these institutions). This characteristic
shall however not include the number of pension funds which are not estab-
lished separately from the sponsoring undertaking or trade (i.e. the non-
autonomous pension funds or the book reserve system normally managed as an
ancillary activity by the employer).
Code:11120
Title:Numberofbirthsofenterprises
Definition
A count of the number of births of enterprises registered to the population
concerned in the business register corrected for errors. A birth amounts to the
creation of a combination of production factorswith the res trictrion that no
other enterprises are involved in the event. Births do not include entries into
the population due to mergers, break-ups, split-off or restructuring of a set of
enterprises. It does not include entries into a sub-population resulting only
from a change of activity.
Linkto other variables
Part of number of enterprises (11 11 0).
Code:11130
Title:Numberofdeathsofenterprises
Definition
A count of the number of deaths of enterprises registered to the population
concerned in the business register corrected for errors. A death amounts to the
dissolution of a combination of production factors with the restriction that no
other enterprises are involved in the event. Deaths do not include exits from
the population due to mergers, take-overs, break-ups or restructuring of a set of
enterprises. It does not include exits from a sub-population resulting only from a
change of activity.
Code:11210
Title:Numberoflocalunits
Definition
A count of the number of local unitsregis tered to the population concerned in
the business register corrected for errors, in particular frame errors. Local units
must be included even if they have no paid employees. This statistic should
include all unitsactive for at leas t a part of the reference period.
Code:11310
Title:Numberofkind-of-activityunits1998R2700 — EN — 19.10.2003 — 002.001 — 3
▼M2
▼B
▼B
Definition
A count of the number of kind-of-activity unitsregis tered to the population
concerned in the business register corrected for errors, in particular frame errors,
or an estimate if this type of unit is not registered. This statistic should include
all unitsactive for at leas t a part of the reference period.
Code:12110
Title:Turnover
Definition
Turnover comprises the totals invoiced by the observation unit during the refer-
ence period, and this corresponds to market sales of goods or services supplied
to third parties.
Turnover includesall dutiesand taxeson the goodsor s ervicesinvoiced by the
unit with the exception of the VAT invoiced by the unit vis-à-vis itscus tomer
and other similar deductible taxes directly linked to turnover.
It also includes all other charges (transport, packaging, etc.) passed on to the
customer, even if these charges are listed separately in the invoice. Reduction
in prices, rebates and discounts as well as the value of returned packing must
be deducted.
Income classified as other operating income, financial income and extraordinary
income in company accounts is excluded from turnover. Operating subsidies
received from public authoritiesor the ins titutionsof the European Union are
also excluded.
For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom)
No 58/97, the corresponding title of this characteristic is ‘Gross premiums
written’. Thischaracteris tic isdefined in Article 35 of Directive 91/674/EEC.
For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom)
No 58/97, the corresponding title of this characteristic is ‘Total pension contri-
butions’. This characteristic shall comprise all pension contributions due during
the financial year in respect of pension contracts, such as all mandatory contri-
butions, other regular contributions, voluntary additional contributions, incoming
transfers, other contributions.
Note: indirect taxes can be separated into three groups.
(i) The first comprises VAT and other deductible taxes directly linked to turn-
over which are excluded from turnover. These taxes are collected in stages
by the enterprise and fully borne by the final purchaser.
(ii) The second group concerns all other taxes and duties linked to products
which are either (1) linked to turnover and not deductible or (2) taxeson
productsnot linked to turnover. Included here are taxesand dutieson
imports and taxes on the production, export, sale, transfer, leasing or
delivery of goods and services or as a result of their use for own consump-
tion or own capital formation.
(iii) The third group concernstaxesand dutieslinked to production. Thes e are
compulsory, unrequited payments, in cash or in kind which are levied by
general government, or by the institutions of the European Union, in
respect of the production and importation of goods and services, the
employment of labour, the ownership or use of land, buildings or other
assets used in production irrespective of the quantity or the value of goods
and services produced or sold.
Linkto company accounts
Turnover as defined above for statistical purposes comprises the accounting
heading ‘Net turnover’.
Linkto other variables
— Turnover isus ed in the calculation of Production value (12 12 0) and other
aggregatesand balances ,
— Turnover may be broken down by activity: Turnover from (i)the principal
activity, (ii)industrial activities, (iii)trading activities of purchase and
resale, (iv)intermediary activities (agents), (v)other service activities (18
11 0 to 18 15 0),
— Turnover may be broken down by product type: Breakdown of turnover by
product type (18 21 0),1998R2700 — EN — 19.10.2003 — 002.001 — 4
▼M2
▼B
▼B
— Turnover may be broken down by type of customer: Percentage share of
turnover to (i)retail traders (25 11 1), (ii) professional users (25 11 2),
(iii)final customers (25 11 3).
For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom)
No 58/97, ‘Gross premiums written’ (12 11 0) is calculated as follows:
Gross direct premiums written (12 11 1),
+ Gross reinsurance premiums accepted, written premiums (12 11 2).
‘Gross premiums written’ is used in the calculation of ‘Gross premiums earned’
(32 11 0) and other aggregatesand balances .
For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom)
No 58/97, ‘Turnover’ (Total pension contributions) is calculated as follows:
Pension contributions receivable from members (48 00 1),
+ Pension contributions receivable from employers (48 00 2),+ Incoming transfers (48 00 3),
+ Other pension contributions (48 00 4);
or:Pension contributions to defined benefit schemes (48 00 5),
+ Pension contributions to defined contribution schemes (48 00 6),
+ Pension contributions to hybrid schemes (48 00 7).
Code:12120
Title:Productionvalue
Definition
The production value measures the amount actually produced by the unit, based
on sales, including changes in stocks and the resale of goods and services.
The production value isdefined asturnover, plusor minusthe changesin s tocks
of finished products, work in progress and goods and services purchased for
resale, minus the purchases of goods and services for resale, plus capitalised
production, plus other operating income (excluding subsidies). Income andex-
penditure classified as financial or extraordinary in company accounts is
excluded from production value. Included in purchases of goods and services
for resale are the purchases of services purchased in order to be rendered to
third partiesin the s ame condition.
For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom)
No 58/97, the production value isdefined asgros spremiumsearned, plustotal
portfolio investment income, plus other services produced, minus gross claims
incurred, excluding claims management expenses, plus capital gains and provi-
sions.
For the enterprises defined in section 3 of Annex 6 to Regulation (EC, Euratom)
No 58/97, the production value is defined as interest receivable and similar
income, less interest payable and similar charges, plus commissions receivable,
plus income from shares and other variable-yield securities, plus net profit or net
loss on financial operations, plus other operating income.
For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom)
No 58/97, the production value is defined as turnover less insurance premiums
payable, plusinves tment income, plusother income, plusins urance claims
receivable, less total expenditure on pensions, less net change in technical provi-
sions.
For the enterprises of the NACE class 65.11, the production value is defined as
interest receivable and similar income, less interest payable and similar charges,
plus commissions receivable, plus income from shares and other variable-yield
securities, plus net profit or net loss on financial operations, plus other operating
income.
Note: capitalised production includes the own-account production of all goods
that are retained by their producersasinves tment. The latter includesthe
production of fixed tangible assets (buildings etc.) as well as intangible assets
(development of software etc.). Capitalised production is unsold production and1998R2700 — EN — 19.10.2003 — 002.001 — 5
▼M2
▼B
▼M2
▼B
▼B
is valued at production cost. Note that these capital goods are also to be
included in investment.
Note: other operating income isa company accounting heading. The contents
of this heading may vary between sectors and over time and as such cannot be
defined precisely for statistical purposes.
Linkto company accounts
The componentsof production value are included in the following accounting
headings:
—net turnover,
— part of other operating income — excluding subsidies,
—Variation in stocks of finished goods and work in progress, part of raw
materials and consumables relating to purchases and change in stocks of
goodsfor res ale,
—workperformed by the undertak ing for its own purposes and capitalised.
Linkto other variables
Production value isbas ed on:Turnover (12 11 0),+/−Change in stocks of finished products and work in progress manufactured
by the unit (13 21 3),
+/−Change in stocks of goods and services purchased for resale in the same
condition as received (13 21 1),
−Purchases of goods and services purchased for resale in the same condi-
tion as received (13 12 0),
+ Capitalised production,
+ Other operating income (excluding subsidies).
— Production value isus ed in the calculation of value-added at factor cost (12
15 0) and other aggregatesand balances .
For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom)
No 58/97, the production value iscalculated asfollows :
For life insurance:
Gross premiums written (12 11 0),
+ Gross change in the provision for unearned premiums (32 11 2),
+ Investment income (32 22 0),- Value readjustments on investments (32 71 5),
- Gains on the realisation on investments (32 71 6),
- Income from participating interests (32 71 1),+ ((Total gross technical provisions (37 30 0) - Total net technical provisions
(37 30 1))/Total net technical provisions (37 30 1)) x (Investment income
(32 22 0) - Value readjustments on investments (32 71 5) - Gains on the realisa-
tion of investments (32 71 6) - Income from participating interests (32 71 1)),
+ Other technical income, net amount (32 16 1),+ Other income (32 46 0),
- Gross claims payments (32 13 1),
- Gross change in the provision for outstanding claims (32 13 4),+ External and internal claimsmanagement expens es(32 61 5),
+ Gains on the realisation on investments (32 71 6),
+ Unrealised gains on investments (32 23 0),- Losses on the realisation on investments (32 72 3),
- Unrealised losses on investments (32 28 0),
- Gross change in life insurance provision (32 25 0),- Bonuses and rebates, net amount (32 16 3),
- Change in fund for future appropriations(part of 32 29 0),
- Net changes in other technical provisions, not shown under other headings
(32 16 2).1998R2700 — EN — 19.10.2003 — 002.001 — 6
▼M2
▼M2
For non-life insurance and reinsurance:
Gross premiums written (12 11 0),
+ Gross change in the provision for unearned premiums (32 11 2),
+ Investment income (32 42 0),
- Value readjustments on investments (32 71 5),
- Gains on the realisation on investments (32 71 6),
- Income from participating interests (32 71 1),
+ ((Total gross technical provisions (37 30 0) - Total net technical provisions
(37 30 1))/Total net technical provisions (37 30 1)) x (Investment income
(32 42 0) - Value re-adjustments on investments (32 71 5) - Gains on the
realisation of investments (32 71 6) - Income from participating interests
(32 71 1)),
+ Other technical income, net amount (32 16 1),
+ Other income (32 46 0),
- Gross claims payments (32 13 1),
- Gross change in the provision for outstanding claims (32 13 4),
+ External and internal claimsmanagement expens es(32 61 5),
+ Gains on the realisation on investments (32 71 6),
- Losses on the realisation on investments (32 72 3),
- Bonuses and rebates, net amount (32 16 3),- Change in the equalisation provision (32 15 0),
- Net changes in other technical provisions, not shown under other headings
(32 16 2).
For the enterprises defined in section 3 of Annex 6 to Regulation (EC, Euratom)
No 58/97, the production value iscalculated as :
Interest receivable and similar income (42 11 0),
- Interest payable and similar charges (42 12 0),
+ Commissions receivable (42 14 0),+ Income from shares and other variable-yield securities (42 13 1),
+ Net profit or net loss on financial operations (42 20 0),
+ Other operating income (42 31 0).
For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom)
No 58/97, the production value iscalculated as :
Turnover (12 11 0),
- Insurance premiums payable (48 05 0),
+ Investment income (48 01 0),+ Other income (48 02 2),
+ Insurance claims receivable (48 02 1),
- Total expenditure on pensions (48 03 0),
- Net change in technical provisions (48 04 0).
Code:12130
Title:Grossmarginongoodsforresale
Definition
Corresponds to the return on the activity of purchase and resale without further
processing. It is calculated from turnover, purchases and changes in stocks of
goods and services purchased for resale in the same condition as received.
Included in turnover, purchases and changes in stocks of goods and services for
resale are the sales, purchases and changes in stocks of services purchased in
order to be rendered to third partiesin the s ame condition.
Also called gross trading margin.1998R2700 — EN — 19.10.2003 — 002.001 — 7
▼B
▼B
Linkto company accounts
These figures may not be isolated in company accounts. They are part of net
turnover andraw materials and consumables .
Linkto other variables
Gross margin on goods for resale is based on:
Turnover from trading activities of purchase and resale (18 13 0),
−Purchases of goods and services purchased for resale in the same condi-
tion as received (13 12 0),
+/− Changes in stocks of goods and services purchased for resale in the same
condition asreceived (13 21 1),
— Gross margin on goods for resale is a part of Production value (12 12 0).
Code:12150
Title:Value-addedatfactorcost
Definition
Value-added at factor cost is the gross income from operating activities after
adjusting for operating subsidies and indirect taxes.
It can be calculated from turnover, pluscapitalis ed production, plusother oper-
ating income, plus or minus the changes in stocks, minus the purchases of goods
and services, minus other taxes on products which are linked to turnover but not
deductible, minusthe dutiesand taxeslinked to production. Alternatively it can
be calculated from gross operating surplus by adding personnel costs.
Income and expenditure classified as financial or extraordinary in company
accountsisexcluded from value-added.
Value-added at factor costs is calculated ‘gross’ as value adjustments (such as
depreciation) are not subtracted.
Note: indirect taxes can be separated into three groups.
(i) The first comprises VAT and other deductible taxes directly linked to turn-
over which are excluded from turnover. These taxes are collected in stages
by the enterprise and fully borne by the final purchaser.
(ii) The second group concerns all other taxes and duties linked to products
which are either (1) linked to turnover and not deductible or (2) taxeson
productsnot linked to turnover. Included here are taxesand dutieson
imports and taxes on the production, export, sale, transfer, leasing or
delivery of goods and services or as a result of their use for own consump-
tion or own capital formation.
(iii) The third group concernstaxesand dutieslinked to production. Thes e are
compulsory, unrequited payments, in cash or in kind which are levied by
general government, or by the institutions of the European Union, in
respect of the production and importation of goods and services, the
employment of labour, the ownership or use of land, buildings or other
assets used in production irrespective of the quantity or the value of goods
and services produced or sold.
For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom)
No 58/97, the value added at factor costs is defined as production value, minus
gross value of reinsurance services received, minus other intermediate consump-
tion.
For the enterprises defined in section 3 of Annex 6 to Regulation (EC, Euratom)
No 58/97, the value added at factor costs is defined as production value, less
total purchases of goods and services.
For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom)
No 58/97, the value added at factor costs is defined as production value, less
total purchases of goods and services.
For the enterprises of the NACE class 65.11, the value added at factor costs is
defined as production value less total purchases of goods and services.1998R2700 — EN — 19.10.2003 — 002.001 — 8
▼M1
▼B
▼M2
▼B
Linkto company accounts
Value-added at factor costs can be calculated directly from the following
accounting headings:
—Net turnover,
—Variation in stocks of finished goods and work in progress,
—Workperformed by the undertak ing for its own purposes and capitalised,
—Raw materials and consumables,
—Other external charges,
—Other operating charges,
—Other operating income.
Linkto other variables
Value-added at factor cost is based on:Turnover (12 11 0),+/− Change in stocks of goods and services (13 12 0),
+ Capitalised production,
+ Other operating income,− Purchases of goods and services (13 11 0),
− Other taxeson productswhich are linked to turnover but not deductible,
− Dutiesand taxeslinked to production,
— Value-added at factor cost is used in the calculation of gross operating
surplus (12 17 0) and other aggregatesand balances .
For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom)
No 58/97, the value added at factor cost is calculated as:
Production value (12 12 0),
- Intermediate consumption (13 11 0).
For the enterprises defined in section 3 of Annex 6 to Regulation (EC, Euratom)
No 58/97, the value added at factor cost is calculated follows:
Production value (12 12 0),
- Total purchases of goods and services (13 11 0).
For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom)
No 58/97, the value added at factor cost is calculated follows:
Production value (12 12 0),
- Intermediate consumption (= total purchases of goods and services (13 11 0)).
Code:12170
Title:Grossoperatingsurplus
Definition
Gross operating surplus is the surplus generated by operating activities after the
labour factor input hasbeen recompens ed. It can be calculated from the value-
added at factor cost less the personnel costs. It is the balance available to the
unit which allowsit to recompens e the providersof own fundsand debt, to
pay taxesand eventually to finance all or a part of itsinves tment.
Income and expenditure classified as financial or extraordinary in company
accounts is excluded from gross operating surplus.
Linkto company accounts
Gross operating surplus can be calculated from the following accounting head-
ings:
—Net turnover,
—Variation in stocks of finished goods and work in progress,
—Workperformed by the undertak ing for its own purposes and capitalised,
—Raw materials and consumables,1998R2700 — EN — 19.10.2003 — 002.001 — 9
▼M2
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▼B
—Other external charges,
—Other operating charges,
—Other operating income,
—Staff costs.
Linkto other variables
Gross operating surplus is based on:
Value-added at factor cost (12 15 0)
− Personnel costs (13 31 0).
Code:13110
Title:Totalpurchasesofgoodsandservices
Definition
Purchases of goods and services include the value of all goods and services
purchased during the accounting period for resale or consumption in the produc-
tion process, excluding capital goods the consumption ofwhich is registered as
consumption of fixed capital. The goods and services concerned may be either
resold with or without further transformation, completely used up in the produc-
tion process or, finally, be stocked.
Included in these purchases are the materials that enter directly into the goods
produced (raw materials, intermediary products, components), plus non-capita-
lised small tools and equipment. Also included are the value of ancillarymaterials (lubricants, water, packaging, maintenance and repair materials, office
materials) as well as energy products. Included in this variable are the purchases
of materialsmade for the production of capital goodsby the unit.
Services paid for during the reference period are also included regardless of
whether they are industrial or non-industrial. In this figure are payments for all
work carried out by third partieson behalf of the unit including current repairs
and maintenance, installation work and technical studies. Amounts paid for the
installation of capital goods and the value of capitalised goods are excluded.
Also included are payments made for non-industrial services such as legal and
accountancy fees, patents and licence fees (where they are not capitalised),
insurance premiums, costs of meetings of shareholders and governing bodies,
contributions to business and professional associations, postal, telephone, elec-
tronic communication, telegraph and fax charges, transport services for goods
and personnel, advertising costs, commissions (where they are not included in
wages and salaries), rents, bank charges (excluding interest payments) and all
other business services provided by third parties. Included are services which
are transformed and capitalised by the unit as capitalised production.
Expenditure classified as financial expenditure or extraordinary expenditure in
company accounts is excluded from the total purchases of goods and services.
Purchases of goods and services are valued at the purchase price excluding
deductible VAT and other deductible taxeslinked directly to turnover.
All other taxesand dutieson the productsare therefore not deducted from the
valuation of the purchases of goods and services. The treatment of taxes on
production is not relevant in the valuation of these purchases.
For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom)
No 58/97, the total purchases of goods and services is defined as the gross value
of reinsurance services received plus other intermediate consumption.
For the enterprises defined in section 3 of Annex 6 to Regulation (EC, Euratom)
No 58/97, the total purchases of goods and services is defined as commissions
payable, plus other administrative expenses, plus other operating charges.
Linkto company accounts
Purchases of goods and services can be calculated from the accounting head-
ings:
—Raw materials and consumables (before account ismade of changesin
stocks of goods and services),
—Other external charges (before account ismade of changesin s tocksof
goods and services),
— part of Other operating charges, the part included here concernspayments
for goodsand s ervicesnot included in the two headingsabove (raw mate-1998R2700 — EN — 19.10.2003 — 002.001 — 10
▼M2
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▼B
rials and consumables and other external charges). The part not included
here concernsthe payment of taxeson production.
Linkto other variables
Total purchases of goods and services is used in the calculation of value-added
at factor cost (12 15 0) and other aggregates and balances.
Many items included within total purchases of goods and services are identified
separately
—Purchases of goods and services purchased for resale in the same condition
as received (13 12 0),
—Operating costs linked to buildings and equipment (13 41 0), Cost of selling
(13 42 0), Other operating costs (13 43 0). Note that these three variables,
when combined with variable 13 12 0 above are an exhaustive breakdown of
total purchases of goods and services for enterprises in wholesale and retail
trade,
—Payments for agency workers (13 13 1),
—Payments for long-term rental and operational leasing of goods (13 41 1),
—Purchases of energy products (20 11 0 and 20 21 0 to 20 31 0),
—Percentage share of purchases from wholesalers and purchasing groups (25
21 1) and Percentage share of purchases from producers (25 21 2).
For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom)
No 58/97, intermediate consumption is calculated as:
For life insurance:Reinsurance balance (32 18 0),
+ ((Total gross technical provisions (37 30 0) - Total net technical provisions
(37 30 1))/Total net technical provisions (37 30 1)) x (Investment income
(32 22 0) - Value readjustments on investments (32 71 5) - Gains on the realisa-
tion of investments (32 71 6) - Income from participating interests (32 71 1)),
+ Commissions (32 61 1),
+ Other external expenditure on goodsand s ervices(32 61 4 - depreciation on
fixed assets for own use).
For non-life insurance and reinsurance:
Reinsurance balance (32 18 0),
+ ((Total gross technical provisions (37 30 0) - Total net technical provisions
(37 30 1))/Total net technical provisions (37 30 1)) x (Investment income
(32 42 0) - Value readjustments on investments (32 71 5) - Gains on the realisa-
tion of investments (32 71 6) - Income from participating interests (32 71 1)),
+ Commissions (32 61 1),
+ Other external expenditure on goodsand s ervices(32 61 4 - depreciation on
fixed assets for own use).
For the enterprises defined in section 3 of Annex 6 to Regulation (EC, Euratom)
No 58/97, intermediate consumption is calculated as:
Commissions payable (42 15 0),
+ Other administrative expenses (42 32 2),
+ Other operating charges(42 33 0).
For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom)
No 58/97, the variable ‘Total purchases of goods and services’ (13 11 0) is used
in the calculation of the variable ‘Total operational expenses’ (48 06 0).
Code:13120
Title:Purchases of goods and services purchased for resale in the same
conditionasreceived
Definition
Purchases for resale are purchases of goods for resale to third parties without
further processing. It also includes purchases of services by ‘invoicing’ service
companies, i.e. those whose turnover is composed not only of agency fees
charged on a service transaction (as in the case of estate agents) but also the
actual amount involved in the service transaction, e.g. transport purchases by
travel agents. The value of goods and services which are sold to third parties1998R2700 — EN — 19.10.2003 — 002.001 — 11
▼M2
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▼B
on a commission basis are excluded since these goods are neither bought nor
sold by the agent receiving the commission.
When services for resale are referred to here, the services concerned are the
output from service activities, rights to use predetermined services, or physical
supports for services. Purchases of goods and services purchased for resale in
the same condition as received are valued at the purchase price excluding
deductible VAT and other deductible taxeslinked directly to turnover. All othertaxesand dutieson the productsare therefore not deducted from the valuation of
the purchases of goods and services.
The treatment of taxeson production isnot relevant in the valuation of thes e
purchases.
Linkto company accounts
Purchases of goods and services purchased for resale in the same condition as
received may not be isolated in company accounts. It is a part of:
—Raw materials and consumables,
—Other external charges,
—Other operating charges.
Linkto other variables
Part ofTotal purchases of goods and services (13 11 0)
Purchases of goods and services purchased for resale in the same condition as
received isus ed in the calculation of Gross margin on goods for resale (12 13
0), inProduction value (12 12 0) and other aggregatesand balances .
Code:13131
Title:Paymentsforagencyworkers
Definition
Included in thisfigure are paymentsto employment agenciesand s imilar orga-
nisations for the provision of personnel. Only the payments for the provision ofpersonnel which is not linked to the provision of a particular industrial or other
non-industrial service is included.
Linkto company accounts
Payments for agency workers may not be isolated in company accounts. It is
part ofother external charges andother operating charges .
Linkto company accounts
Part ofTotal purchases of goods and services (13 11 0).
Code:13210
Title:Changeinstocksofgoodsandservices
Definition
Change in stocks (positive or negative) is the difference between the value of
the stocks at the end and the beginning of the reference period. Change in stocks
may be measured by the value of entries into stocks less the value of withdra-
wals and the value of any recurrent losses of goods held in stocks. Stocks are
recorded at purchaser's prices exclusive of VAT if they are purchased from
another unit, otherwise at production cost.
Among stocks (and the change in stocks), the following breakdown can be
made:
— stocks of finished goods,
— stocks of work in progress,— stocks of goods and services purchased for resale in the same condition as
received,
— stocks of raw materials and consumables.
Included are the stocks of finished products or in the course of production,
which have been produced by the unit and which have not yet been sold. These
productsinclude work in progres sbelonging to the unit, even if the productsin
question are in the possession of third parties. Equally, products held by the unit
which belong to third partiesare excluded.1998R2700 — EN — 19.10.2003 — 002.001 — 12
▼B
Included are the stocks of goods and services bought for the sole purpose of
reselling them in the same condition. Excluded are stocks of goods and services
which are provided to third parties on a commission basis. Products purchased
for resale and stocked by services enterprises can include goods (industrial
equipment in the case of ‘turnkey’ engineering contracts, or buildings in the
case of property development, etc.) as well as services (rights to use advertising
space, transport, accommodation, etc.).
When services are stocked the services concerned are the output from service
activities, rights to use predetermined services, or physical supports for services.
Included also are the stocks of raw and ancillary materials, intermediary
products, components, energy, non-capitalised small tools and services which
belong to the unit.
Linkto company accounts
Changes in stocks of goods and services can be calculated from the following
headings:
—Variation in stocks of finished goods and in work in progress
— Part of raw materials and consumables,
— Part of other external charges,
— Part of other operating charges.
Linkto other variables
— Change in stocks of goods and services is used in the calculation of Value-
addedatmarket prices (12 14 0) and other aggregatesand balances ,
— Change in stocks of goods and services may be broken down by type of
stocks: (i) Change in stocks of goods and services purchased for resale in
the same condition as received (13 21 1) (ii) Change in stocks of finished
products and workin progress manufactured by the unit (13 21 3) and (iii)
Change in stocks of raw materials and consumables .
Code:13211
Title:Changeinstocksofgoodsandservicespurchasedforresaleinthe
sameconditionasreceived
Definition
This variable is defined as the change in stocks at purchaser's prices exclusive of
VAT between the end and the beginning of the reference period. The change in
stocks may be measured by the value of entries into stocks of products
purchased for resale less the value of withdrawals and the value of any recurrent
losses of goods held in stocks.
Included in these stocks are goods and services bought for the sole purpose of
reselling them in the same condition. Excluded are stocks of goods and services
which are provided to third parties on a commission basis.
Products purchased for resale and stocked by services enterprises can include
goods (industrial equipment in the case of ‘turnkey’ engineering contracts, or
buildings in the case of property development, etc.) as well as services (rights
to use advertising space, transport, accommodation, etc.).
When services are stocked the services concerned are the output from service
activities, rights to use predetermined services, or physical supports for services.
Linkto company accounts
Change in stocks of goods purchased for resale in the same condition may not
be isolated in company accounts. They are part of raw materials and consum-
ables, other external charges and other operating charges .
Linkto other variables
— Change in stocks of goods purchased for resale in the same condition is used
in the calculation of gross margin on goods for resale (12 13 0), Production
value(12 12 0) and other aggregatesand balances ,
— Part of Change in stocks of goods and services (13 21 0).
Code:13213
Title:Changeinstocksoffinishedproductsandworkinprogressmanu-
facturedbytheunit1998R2700 — EN — 19.10.2003 — 002.001 — 13
▼B
Definition
This variable is defined as the change in the value of the stocks of finished
productsor in the cours e of production, which have been produced by the unit
and which have not yet been sold, between the first and last days of the refer-
ence period.
These products include work in progress belonging to the unit, even if the
products in question are in the possession of third parties. Equally, products
held by the unit which belong to third partiesare excluded.
Stocks are valued at production cost, and are valued prior to value adjustments
(such as depreciation).
Linkto company accounts
Change in stocks of finished goods and work in progress are recorded in
company accounts as the heading Variation in stocks of finished goods and
work in progress.
Linkto other variables
— Change in stocks of finished goods and work in progress is used in the
calculation of Production value (12 12 0) and other aggregatesand balances ,
— Part of Change in stocks of goods and services (13 21 0).
Code:13310
Title:Personnelcosts
Definition
Personnel costs are defined as the total remuneration, in cash or in kind, payable
by an employer to an employee (regular and temporary employeesaswell as
home-workers) in return for work done by the latter during the reference period.
Personnel costs also include taxes and employees' social security contributions
retained by the unit as well as the employer's compulsory and voluntary social
contributions.
Personnel costs are made up of:
— wages and salaries,
— employers' social security costs.
All remuneration paid during the reference period isincluded, regardles sof
whether it ispaid on the bas isof working time, output or piecework, and
whether it ispaid regularly or not. Included are all gratuities , workplace and
performance bonuses, ex gratia payments, 13th month pay (and similar fixed
bonuses), payments made to employees in consideration of dismissal, lodging,
transport, cost of living and family allowances, commissions, attendance fees,
overtime, night work, etc. as well as taxes, social security contributions and
other amounts owed by the employees and retained at source by the employers.
Also included are the social security costs for the employer. These include
employer's social security contributions to schemes for retirement pensions,
sickness, maternity, disability, unemployment, occupational accidents and
diseases, family allowances as well as other schemes. These costs are included
regardless of whether they are statutory, collectively agreed, contractual or
voluntary in nature.
Payments for agency workers are not included in personnel costs.
Linkto company accounts
Personnel costs can be calculated directly from the following accounting head-
ings:
—Staff costs , which isthe s um of the headings wages and salaries andsocial
security costs .
Linkto other variables
Personnel costs is based onWages and salaries (13 32 0),
+ Social security costs (13 33 0).
Personnel costs is used in the calculation of Gross operating surplus (12 17 0)
and other aggregatesand balances .1998R2700 — EN — 19.10.2003 — 002.001 — 14
▼B
Code:13320
Title:Wagesandsalaries
Definition
Wages and salaries are defined as ‘the total remuneration, in cash or in kind,
payable to all persons counted on the payroll (including homeworkers), in return
for work done during the accounting period’ regardless of whether it is paid on
the basis of working time, output or piecework and whether it is paid regularly
or not.
Wages and salaries include the values of any social contributions, income taxes,
etc. payable by the employee even if they are actually withheld by the employer
and paid directly to social insurance schemes, tax authorities, etc. on behalf of
the employee. Wages and salaries do not include social contributions payable by
the employer.
Wages and salaries include: all gratuities, bonuses, ex gratia payments, 13th
month payments, severance payments, lodging, transport, cost-of-living, and
family allowances, tips, commission, attendance fees, etc. received by
employees, as well as taxes, social security contributions and other amounts
payable by employeesand withheld at s ource by the employer. Wagesand
salaries which the employer continues to pay in the event of illness, occupa-
tional accident, maternity leave or short-time working may be recorded here or
under social security costs, dependent on the unit's accounting practices.
Payments for agency workers are not included in wages and salaries.
Linkto company accounts
Wagesand s alariesare recorded in company accountsasthe heading Wages and
salaries .
Linkto other variables
Wages and salaries is used in the calculation of Personnel costs (13 31 0).
Code:13330
Title:Socialsecuritycosts
Definition
Employers' social security costs correspond to an amount equal to the value of
the social contributions incurred by employers in order to secure for their
employees the entitlement to social benefits.
Social security costs for the employer include the employer's social security
contributions to schemes for retirement pensions, sickness, maternity, disability,
unemployment, occupational accidents and diseases, family allowances as well
as other schemes.
Included are the costs for all employees including homeworkers and apprentices.
Charges are included for all schemes, regardless of whether they are statutory,
collectively agreed, contractual or voluntary in nature. Wagesand s alarieswhich
the employer continues to pay in the event of illness, occupational accident,
maternity leave or short-time working may be recorded here or under wages
and salaries, dependent on the unit's accounting practices.
Linkto company accounts
Social security costs are recorded in company accounts as the heading Social
security costs .
Linkto other variables
Social security costs is used in the calculation of Personnel costs (13 31 0).
Code:13410
Title:Operatingcostslinkedtobuildingsandequipment1998R2700 — EN — 19.10.2003 — 002.001 — 15
▼B
Definition
Operating costs linked to buildings and equipment consist of:
— costs related to buildings, including:
— rents, payments for energy for heating and electricity and the mainte-
nance and repair of buildings,
— operational leasing payments,
— the expenses related to equipment, including:
— paymentsfor maintenance and repair of all machines(including compu-
ters and vehicles) and the cost of renting
— payments for operational leasing of machines.
Linkto company accounts
Operating costs linked to buildings and equipment may not be isolated in
company accounts. It is a part of Raw materials and consumables, other
external charges andother operating charges .
Linkto other variables
Part ofTotal purchases of goods and services (13 11 0).
For distributive trade activities (Section G of NACE Rev. 1), the other parts of
total purchases of goods and services are: Purchases of goods and services
purchased for resale in the same condition as received (13 12 0), Cost of selling
(13 42 0) and Other operating costs (13 43 0).
Code:13411
Title:Paymentsforlong-termrentalandoperationalleasingofgoods
Definition
The paymentsfor long-term rental include all chargesrelative to the renting of
tangible goodsfor a period greater than one year.
Operational leases are those leases which do not transfer substantially all the
risks and rewards incident to legal ownership to the lessee. Under an operational
lease, the lessee acquires the right to use a durable good for a certain period of
time, which may be long or short and not necessarily settled in advance. When
the leasing period expires, the lessor expects to receive his good back in more or
less the same condition as when he hired it out, apart from normal wear and
tear. Thusthe leas ing period doesnot cover all, or a predominant part of, the
good'seconomic lifetime. Paymentsfor the operational leas ing of goodsrelate
to the cost of using the tangible goods made available to the unit through these
contracts.
Linkto company accounts
Paymentsfor long-term rental and operational leas ing of goodsmay not be
isolated in company accounts. It is part of other external charges andother
operating charges .
Linkto other variables
Part ofPurchases of good and services (13 11 0),
Part ofOperating costs linked to buildings and equipment (13 41 0).
Code:13420
Title:Costofselling
Definition
Cost of selling, which forms part of ‘Purchases of goods and services’ consists
of advertising expenses, transport of goods, travelling expenses, hotel accommo-
dation, entertaining expenses and other expenses related to the selling of goods
(paymentsfor agency workersincluded).
Linkto company accounts
Cost of selling may not be isolated in company accounts. It is a part of Raw
materials and consumables, other external charges andother operating charges .1998R2700 — EN — 19.10.2003 — 002.001 — 16
▼B
Linkto other variables
Part ofTotal purchases of goods and services (13 11 0).
For distributive trade activities (Section G of NACE Rev. 1), the other parts of
total purchases of goods and services are: Purchases of goods and services
purchased for resale in the same condition as received (13 12 0), Operating
costs linked to buildings and equipment (13 41 0) and Other operating costs
(13 43 0).
Code:13430
Title:Otheroperatingcosts
Definition
Other operating costs may for example consist of expenses for bookkeeping,
consultancy, office stationery, recruitment, insurance premiums, costs of collec-
tive staff transport, cost of bank services (excluding interest payments), postal
and telecommunication expenses (telephone, telex).
Linkto company accounts
Other operating costs may not be isolated in company accounts. It is a part of
Raw materials and consumables, other external charges andother operating
charges .
Linkto other variables
Part ofTotal purchases of goods and services (13 11 0).
For distributive trade activities (Section G of NACE Rev. 1), the other parts of
total purchases of goods and services are: Purchases of goods and services
purchased for resale in the same condition as received (13 12 0), Operating
costs linked to buildings and equipment (13 41 0) and Cost of selling (13 42 0).
Code:15110
Title:Grossinvestmentintangiblegoods
Definition
Investment during the reference period in all tangible goods. Included are new
and existing tangible capital goods, whether bought from third parties or
produced for own use (i.e. capitalised production of tangible capital goods),
having a useful life of more than one year including non-produced tangible
goods such as land. The threshold for the useful life of a good that can be capi-
talised may be increased according to company accounting practices where these
practices require, a greater expected useful life than the one-year threshold indi-
cated above.
All investments are valued prior to (i.e. gross of) value adjustments, and before
the deduction of income from disposals. Purchased goods are valued at purchase
price, i.e. transport and installation charges, fees, taxes and other costs of owner-
ship transfer are included. Own produced tangible goods are valued at
production cost. Goods acquired through restructuring (such as mergers, take-
overs, break-ups, split-off) are excluded. Purchases of small tools which are
not capitalised are included under current expenditure.
Also included are all additions, alterations, improvements and renovations which
prolong the service life or increase the productive capacity of capital goods.
Current maintenance costs are excluded as is the value and current expenditure
on capital goods used under rental and lease contracts. Investment in intangible
and financial assets are excluded.
Concerning the recording of investments where the invoicing, delivery, payment
and first use of the good may take place in different reference periods, the
following method ispropos ed asan objective:
Investments are recorded when the ownership is transferred to the unit that
intends to use them. Capitalised production is recorded when produced.
Concerning the recording of investments made in identifiable stages, each part-
investment should be recorded in the reference period in which they are made.
In practice this may not be possible and company accounting conventions may
mean that the following approximationsto thismethod need to be us ed:
(i) investments are recorded in the reference period in which they are deliv-
ered,1998R2700 — EN — 19.10.2003 — 002.001 — 17
▼B
(ii) investments are recorded in the reference period in which they enter into
the production process,
(iii) investments are recorded in the reference period in which they are
invoiced,
(iv) investments are recorded in the reference period in which they are paid for.
Linkto company accounts
Investment is not recorded in the balance sheet. However, the additions, dispo-
sals and transfers of all fixed assets as well as the value adjustments of these
fixed assets are shown in the balance sheet or the notes to the accounts.
Tangible goodsare lis ted in company accountsunder Fixed assets — tangible
assets.
Linkto other variables
Gross investment in tangible goods is based on:Gross investment in land (15 12 0),
+Gross investment in existing buildings and structures (15 13 0),
+Gross investment in construction and alteration of buildings (15 14 0),
+Gross investment in machinery and equipment (15 15 0).
Code:15120
Title:Grossinvestmentinland
Definition
Included under this variable, in addition to land, are underground deposits,
forests and inland waters. Where land is purchased with existing buildings and
the value of the two componentsisnot s eparable, the total isrecorded under this
heading if it ises timated that the value of the land exceedsthe value of the
existing buildings. If the existing buildings are estimated to be of greater value
than the land, the total is recorded under gross investment in existing buildings
and structures (15 13 0). Also included here is land merely improved by level-
ling, the laying of pipesor by the provis ion of pathsor roads . Land acquired
through restructurations (such as mergers, take-overs, break-ups, split-off) is
excluded.
Linkto company accounts
Investment is not recorded in the balance sheet. However, the additions, dispo-
sals and transfers of all fixed assets as well as the value adjustments of these
fixed assets are shown in the balance sheet or the notes to the accounts.
Land is not isolated in the list of tangible assets included in company accounts
underfixed assets — tangible assets — land and buildings . The part relating to
buildings should be excluded from this. Part of payments on account and
tangible assets in course of construction should be included in so far as they
relate to land.
Linkto other variables
Part ofGross investment in tangible goods (15 11 0).
Code:15130
Title:Grossinvestmentinexistingbuildingsandstructures
Definition
The investment includes the cost of the existing buildings and structures which
have been acquired during the reference period. Where land ispurchas ed with
existing buildings and the value of the two components is not separable, the
total isrecorded under thisheading if it ises timated that the value of the
existing buildings exceeds the value of the land. If the land is estimated to be
of greater value than the existing buildings, the total is recorded under gross
investment in land (15 12 0). Purchases of new buildings that have never been
used are excluded. Existing buildings and structures acquired through restruc-
turations (such as mergers, take-overs, break-ups, split-off) are excluded.1998R2700 — EN — 19.10.2003 — 002.001 — 18
▼B
Linkto company accounts
Investment is not recorded in the balance sheet. However, the additions, dispo-
sals and transfers of all fixed assets as well as the value adjustments of these
fixed assets are shown in the balance sheet or the notes to the accounts.
Gross investment in existing buildings and structures is not isolated in the list of
tangible assets included in company accounts under Fixed assets — tangible
assets — land and buildings . The partsrelating to land and cons truction and
alteration of buildings should be excluded from this. Part of payments on
account and tangible assets in course of construction should be included in so
far as they relate to existing buildings and structures.
Linkto other variables
Part of Gross investment in tangible goods (15 11 0).
Code:15140
Title:Grossinvestmentinconstructionandalterationofbuildings
Definition
Thisvariable coversexpenditure during the reference period on the cons truction
or conversion of buildings. Purchases of new buildings that have never been
used are included. Also included are all additions, alterations, improvements
and renovations which prolong the service life or increase the productive capa-
city of buildings.
Included are permanent installations such as water supply, central heating, air
conditioning, lighting, etc. aswell ascons truction expenditure related to oil
wells (drilling), operational mines, pipelines, power transmission lines, gas-
pipes, railway lines, port installations, roads, bridges, viaducts, drains and other
site improvements. Current maintenance costs are excluded.
Linkto company accounts
Investment is not recorded in the balance sheet. However, the additions, dispo-
sals and transfers of all fixed assets as well as the value adjustments of these
fixed assets are shown in the balance sheet or the notes to the accounts.
Gross investment in construction and alteration of buildings is not isolated in the
list of tangible assets included in company accounts under Fixed assets —
tangible assets — land and buildings . The partsrelating to land and exis ting
buildings and structures should be excluded from this. Part of payments on
account and tangible assets in course of construction should be included in so
far as they relate to existing construction and alteration of buildings.
Linkto other variables
Part ofGross investment in tangible goods (15 11 0).
Code:15150
Title:Grossinvestmentinmachineryandequipment
Definition
This variable covers machinery (office machines etc.), special vehicles used on
the premises, other machinery and equipment, all vehicles and boats used off the
premises, i.e. motor cars, commercial vehicles and lorries as well as special
vehicles of all types, boats, railway wagons, etc. acquired new or second hand
during the reference period. Machinery and equipment acquired through restruc-
turations (such as mergers, take-overs, break-ups, split-offs) are excluded. Also
included are all additions, alterations, improvements and renovations which
prolong the service life or increase the productive capacity of these capital
goods. Current maintenance costs are excluded.
Linkto company accounts
Investment is not recorded in the balance sheet. However, the additions, dispo-
sals and transfers of all fixed assets as well as the value adjustments of these
fixed assets are shown in the balance sheet or the notes to the accounts.
Gross investment in machinery and equipment is included in the list of tangible
assets included in company accounts under Fixed assets — tangible assets —
plant and machinery andother fixtures and fittings, tools and equipment . Part
ofpayments on account and tangible assets in course of construction should
be included in so far as they relate to machinery and equipment.1998R2700 — EN — 19.10.2003 — 002.001 — 19
▼B
Linkto other variables
Part of Gross investment in tangible goods (15 11 0)
Code:15210
Title:Salesoftangibleinvestmentgoods
Definition
Sales of tangible goods includes the value of existing tangible capital goods,
sold to third parties. Sales of tangible capital goods are valued at the price actu-
ally received (excluding VAT), and not at book value, after deducting any costs
of ownership transfer incurred by the seller. Value adjustments and disposals
other than by sale are excluded.
Linkto company accounts
Sales of investment goods are not recorded in the balance sheet. However, the
additions, disposals and transfers of all fixed assets are shown in the balance
sheet or the notes to the accounts.
Tangible investment goods refers to assets listed in company accounts under
Fixed assets — tangible assets.
Code:15310
Title:Valueoftangiblegoodsacquiredthroughfinancialleasing
Definition
Under a financial lease the lessee acquires the right to use a durable good in
exchange for rental paymentsover a predetermined and protracted term. If all
risks and rewards of ownership are de facto though not dejure, transferred
from lessor to lessee, the lease is a financial one. In financial leasing, the leasing
period coversall, or mos t of, the economic lifetime of the durable good. At the
end of the leasing period the lessee often has the option to buy the good at a
nominal price. The lessor's role is purely financial.
The value to be recorded corresponds to the market value of the good if it had
been purchased. This value is in principle known in the contract or can be esti-
mated by summing-up the part of the instalments that cover the capital
reimbursement. The part of instalments corresponding to the interest payments
are to be excluded.
Thisvalue s hould be recorded at the time when the good isdelivered to the
lessee.
Annual payments for assets used under financial leasing should be excluded.
The value of goods used under leases other than financial ones should also be
excluded.
Linkto company accounts
Note: The value of tangible goodsacquired through financial leas ing isnot
referred to in the fourth Directive. However, some national accounting standards
do permit these goods to be capitalised in the balance sheet.
Linkto other variables
Note: The value of tangible goodsacquired through financial leas ing isnot
included in Gross investment in tangible goods (15 11 0).
Code:16110
Title:Numberofpersonsemployed
Definition
The number of persons employed is defined as the total number of persons who
work in the observation unit (inclusive of working proprietors, partners working
regularly in the unit and unpaid family workers), as well as persons who work
outside the unit who belong to it and are paid by it (e.g. sales representatives,
delivery personnel, repair and maintenance teams). It includes persons absent for
a short period (e.g. sick leave, paid leave or special leave), and also those on
strike, but not those absent for an indefinite period. It also includes part-time
workerswho are regarded ass uch under the lawsof the country concerned and
who are on the payroll, as well as seasonal workers, apprentices and home
workerson the payroll.1998R2700 — EN — 19.10.2003 — 002.001 — 20
▼B
The number of persons employed excludes manpower supplied to the unit by
other enterprises, persons carrying out repair and maintenance work in the
enquiry unit on behalf of other enterprises, as well as those on compulsory mili-
tary service.
Unpaid family workersrefer to pers onswho live with the proprietor of the unit
and work regularly for the unit, but do not have a contract of service and do not
receive a fixed sum for the work they perform. This is limited to those persons
who are not included on the payroll of another unit astheir principal occupation.
Note: In order to check the comparability of data, it is necessary to indicate
whether voluntary workershave been included under thisheading or not.
Linkto company accounts
The number of persons employed is recorded in the notes on the company
accounts(Article 43(8)).
Linkto other variables
The number of persons employed may be broken down into the number of
employees (16 13 0) and unpaid workers.
Code:16130
Title:Numberofemployees
Definition
The number of employees is defined as those persons who work for an employer
and who have a contract of employment and receive compensation in the form
of wages, salaries, fees, gratuities, piecework pay or remuneration in kind.
The relationship of employer to employee exists when there is an agreement,
which may be formal or informal, between an enterprise and a person, normally
entered into voluntarily by both parties, whereby the person works for the enter-
prise in return for remuneration in cash or in kind.
A worker is considered to be a wage or salary earner of a particular unit if he or
she receives a wage or salary from the unit regardless of where the work is done
(in or outside the production unit). A worker from a temporary employment
agency iscons idered to be an employee of the temporary employment agency
and not of the unit (customer) in which they work.
In particular the following are considered as employees:
— paid working proprietors,
— students who have a formal commitment whereby they contribute to the
unit'sproces sof production in return for remuneration and/or education
services,
— employees engaged under a contract specifically designed to encourage the
recruitment of unemployed persons,
— homeworkersif there isan explicit agreement that the homeworker is
remunerated on the basis of the work done and they are included on the
payroll.
The number of employees includes part-time workers, seasonal workers, persons
on strike or on short-term leave, but excludes those persons on long-term leave.
The number of employeesdoesnot include voluntary workers .The number of employeesiscalculated in the s ame manner asthe number of
persons employed, namely as the number of jobs and is measured as an annual
average.
Linkto other variables
Part of the Number of persons employed (16 11 0).
Many categoriesof employeesare identified s eparately
—Number of part-time employees (16 13 1)
—Number of apprentices (16 13 2)
—Number of homeworkers (16 13 5)
Code:16131
Title:Numberofpart-timeemployees1998R2700 — EN — 19.10.2003 — 002.001 — 21
▼B
Definition
Thisisa divis ion of the number of employeescalculated by reference to the
number of hoursworked per week for which they are paid; thisnumber of hours
iscons idered in relation to the length of what iscons idered to be a full-time
working week in the Member State or the sector of the unit or the unit itself.
Part-time workers are persons whose usual hours of work are less than the
normal working hours. This definition encompasses all forms of part-time work
(half-day work, work for one, two or three daysa week, etc.). Thisnumber may
be established at the national, regional, industrial or unit level.
The number of employeesmay be broken down according to the weekly number
of hourswhich they work. Thisnumber of hoursiscons idered in relation to the
length of what isregarded asa s tandard full-time working week in the Member
State, region, industry or unit.
It should be noted that whereas the ‘full-time employee’ category is relatively
homogeneous, the same cannot be said of the ‘part-time employee’ category
since this can cover anything between 20 % or even less and 80 % or more of
the normal working hoursof the employing unit.
It is impossible to establish an exact distinction between part-time and full-time
work due to variation in working practicesbetween Member Statesand indus -
tries.
Part-time employees(duration of work les sthan the norm) and intermittent/
seasonal employees (who may work full time but for a fixed short period, e.g.
temporary workers, film crew, etc.) should not be confused.
Linkto other variables
Part ofNumber of employees (16 13 0)
Code:16135
Title:Numberofhomeworkers
Definition
Homeworkers are a sub-division of persons employed of the observation unit
who carry out their professional activity from their own home. Only homewor-
kers who appear on the payroll of the observation unit should be included.
Linkto other variables
Part ofNumber of employees (16 13 0)
Code:16140
Title:Numberofemployeesinfull-time equivalentunits
Definition
The number of employeesconverted into full-time equivalents(FTE).
Figures for the number of persons working less than the standard working time
of a full-year full-time worker, should be converted into full-time equivalents,
with regard to the working time of a full-time full-year employee in the unit.
Included in this category are people working less than a standard working day,
less than the standard number of working days in the week, or less than thestandard number of weeks/months in the year. The conversion should be carried
out on the basis of the number of hours, days, weeks or months worked.
Linkto other variables
TheNumber of hours worked by employees (16 15 0) or the Number of part-
time employees (16 13 1) may be used in the conversion of the Number of
employees (16 13 0) into full-time equivalents.
Code:16150
Title:Numberofhoursworkedbyemployees1998R2700 — EN — 19.10.2003 — 002.001 — 22
▼M1
▼B
▼B
Definition
The total number of hoursworked by employeesrepres entsthe aggregate
number of hoursactually worked for the output of the obs ervation unit during
the reference period.
Thisvariable excludeshourspaid but not actually worked s uch asfor annual
leave, holidays and sick leave. It also excludes meal breaks and commuting
between home and work.
Included are hoursactually worked during normal working hours ; hoursworked
in addition to those; time which is spent at the place of work on tasks such as
preparing the site and time corresponding to short periods of rest at the work
place.
If the exact number of hoursactually worked isnot known, it may be es timated
on the basis of the theoretical number of working hours and the average rate of
absences (sickness, maternity, etc.).
Linkto other variables
The number of hours worked by employees may be used in the conversion of
theNumber of employees (16 13 0) into the Number of employees in full-time
equivalent units (16 14 0).
Code:17320
Title:Numberofretail stores
Definition
This is the total number of retail stores operated by the enterprise, either owned
or rented. Stores are defined as fixed sales premises which the customers enter
to make their purchases. Retail stores are to be classified within the groups
52.1—52.5 of NACE Rev. 1.
Linkto other variables
Part ofNumber of local units (11 21 0)
Code:17330
Title:Categoryofsalesspaceforretail storesengagedinretail trade
Definition
In addition to the total number of retail stores a breakdown by class of sales
space is added.
These classes shall be used:
— less than 120 m 2
— from 120 to 399 m 2
— from 400 to 999 m 2
— from 1 000to2 499m2
— from 2 500to4 999m2
— from 5 000to9 999m2
—10 000 m2and more
Linkto other variables
Thisisa breakdown of Number of retail stores (17 32 0)
Code:17331
Title:Salesspace
Definition
Sales space is taken to mean the estimated floor area of that part of the premises
devoted to selling and display, i.e.:
— the total space to which customers have access, including fitting rooms,
— counter space and window space,
— the space behind counters used by shop assistants.
Sales space does not include offices, storage and preparation rooms, workshops,
staircases, cloakrooms and other amenity rooms.1998R2700 — EN — 19.10.2003 — 002.001 — 23
▼B
Code:17340
Title:Numberoffixedmarketstandsand/orstalls
Definition
The characteristic covers the total number of fixed market stands and/or perma-
nent stalls operated by an enterprise, either owned or rented. Contrary to stores,
the customers do not usually enter the sales premises of the stands/stalls to make
their purchases. Fixed market stands/stalls are to be classified as part of class
52.62 of NACE Rev. 1.
Code:18100
Title:Turnover from agriculture, forestry, fishing and industrial activ-
ities
Definition
The part of turnover derived from activities classified to Sections A to F of
NACE Rev. 1.
Turnover derived from the resale of goods and services purchased for resale in
the same condition is excluded.
Linkto company accounts
Turnover from industrial activities cannot be isolated in company accounts. It is
part of net turnover.
Linkto other variables
Part ofturnover (12 11 0)
Code:18110
Title:TurnoverfromtheprincipalactivityattheNACERev.1three-digit
level.
Definition
The part of turnover derived from the principal activity of the unit. The prin-
cipal activity of a unit isdetermined according to the ruleslaid down in
Council Regulation (EEC) No 696/93 of 15 March 1993 on the statistical units
for the observation and analysis of the production system in the Community (1).
Turnover derived from the sale of goods and services which have been subject
to a subcontracting relationship is included. Turnover derived from the resale of
goods and services purchased for resale in the same condition is excluded.
Linkto company accounts
Turnover from the principal activity at the NACE Rev. 1 three-digit level cannot
be isolated in company accounts. It is part of net turnover.
Linkto other variables
Part of turnover (12 11 0)
Code:18120
Title:Turnoverfromindustrialactivities
Definition
The part of turnover derived from activities classified to Sections C to F of
NACE Rev. 1.
Turnover derived from the sale of goods and services which have been subject
to a subcontracting relationship is included. Turnover derived from the resale of
goods and services purchased for resale in the same condition is excluded.1998R2700 — EN — 19.10.2003 — 002.001 — 24
(1)OJ L 76, 30.3.1993, p. 1 .▼M1
▼B
▼B
Linkto company accounts
Turnover from industrial activities cannot be isolated in company accounts. It is
part ofnet turnover .
Linkto other variables
Part ofturnover (12 11 0)
Part ofturnover from agriculture, forestry, fishing and industrial activities (18
10 0)
Code:18121
Title:Turnoverfromindustrialactivities excludingconstruction
Definition
The part of turnover derived from activities classified to Sections C to E of
NACE Rev. 1.
Turnover derived from the sale of goods and services which have been subject
to a subcontracting relationship is included. Turnover derived from the resale of
goods and services purchased for resale in the same condition is excluded.
Linkto company accounts
Turnover from industrial activities excluding construction cannot be isolated in
company accounts. It is part of net turnover.
Linkto other variables
Part ofturnover (12 11 0)
Part ofturnover from agriculture, forestry, fishing and industrial activities (18
10 0)
Part of Turnover from industrial activities (18 12 0)
Code:18122
Title:Turnoverfromconstructionactivities
Definition
The part of turnover derived from activities classified to Section F of NACE
Rev. 1.
Turnover derived from the sale of goods and services which have been subject
to a subcontracting relationship is included. Turnover derived from the resale of
goods and services purchased for resale in the same condition is excluded.
Linkto company accounts
Turnover from construction activities cannot be isolated in company accounts. It
ispart of net turnover .
Linkto other variables
Part ofturnover (12 11 0)
Part ofturnover from agriculture, forestry, fishing and industrial activities (18
10 0)
Part of Turnover from industrial activities (18 12 0)
Code:18150
Title:Turnoverfromservice activities
Definition
Revenue from all services rendered (banking and insurance services, business
and personal services).
This variable encompasses turnover from service activities resulting from a prin-
cipal or secondary activity; some service activities may be performed by
industrial units. These activities are classified to Sections H to K and M to O1998R2700 — EN — 19.10.2003 — 002.001 — 25
▼M1
▼B
▼B
and also to the maintenance and repair groups 50.2, 50.4 and 52.7 of Section G
of NACE Rev. 1.
Linkto company accounts
Turnover from service activities may not be isolated in company accounts. It is
part of net turnover.
Linkto other variables
Part ofturnover (12 11 0)
Code:18160
Title:Turnoverfromtradingandintermediaryactivities
Definition
The part of turnover derived from the trading activities of purchase and resale of
the unit and the intermediary activity of the unit. This corresponds to the sales
of goodspurchas ed by the unit in itsown name and for itsown account and
resold in the same condition in which they were purchased, or after such label-
ling, packaging and wrapping as is usually practised in distributive trade
enterprises as well as any commissions on purchases and sales made in the
name and on behalf of third parties, and similar activities.
Resales may be broken down into:
— resales to other traders, professional users, etc. (wholesale sales),
— resales to households or small-scale users (retail sales).
These activities are classified in Section G of NACE Rev. 1 (except the main-
tenance and repair groups50.2, 50.4 and 52.7).
Linkto company accounts
Turnover from trading and intermediary activitiesmay not be is olated in
company accounts. It is part of net turnover .
Linkto other variables
Part ofturnover (12 11 0)
Code:18310
Title:Turnoverfrombuilding
Definition
The part of turnover derived from activities classified to Section F of NACE
Rev. 1 and relating to constructions classified as buildings in the classification
of typesof cons tructions(CC).
Turnover derived from the sale of goods and services which have been subject
to a subcontracting relationship is included. Turnover derived from the resale ofgoods and services purchased for resale in the same condition is excluded.
Linkto company accounts
Turnover from building may not be isolated in company accounts. It is part of
net turnover .
Linkto other variables
Part ofturnover (12 11 0)
Part ofturnover from agriculture, forestry, fishing and industrial activities (18
10 0)
Part ofturnover from industrial activities (18 12 0)
Part ofturnover from construction activities (18 12 2)
Code:18320
Title:Turnoverfromcivil engineering1998R2700 — EN — 19.10.2003 — 002.001 — 26
▼B
Definition
The part of turnover derived from activities classified to Section F of NACE
Rev. 1 and relating to constructions classified as civil engineering works in the
classification of types of constructions (CC).
Turnover derived from the sale of goods and services which have been subject
to a subcontracting relationship is included. Turnover derived from the resale of
goods and services purchased for resale in the same condition is excluded.
Linkto company accounts
Turnover from civil engineering may not be isolated in company accounts. It is
part ofnet turnover .
Linkto other variables
Part ofturnover (12 11 0)
Part ofturnover from agriculture, forestry, fishing and industrial activities (18
10 0)
Part ofturnover from industrial activities (18 12 0)
Part ofturnover from construction activities (18 12 2)
Code:20110
Title:Purchasesofenergyproducts(invalue)
Definition
Purchases of all energy products during the reference period should be included
in this variable only if they are purchased to be used as fuel. Energy products
purchased as a raw material or for resale without transformation should be
excluded. The figure should be given in value only.
Linkto company accounts
Purchases of energy products cannot be isolated in company accounts. It is part
ofRaw materials and consumables .
Linkto other variables
Part oftotal purchases of goods and services (13 11 0)
Code:20111
Title:Purchasesofsolidfuels(invalue)
Purchases of solid fuels during the reference period should be included in this
variable only if they are purchased to be used as fuel. Solid fuels purchased as
raw material or for resale without transformation should be excluded.
Solid fuels consist of coking coal, steam coal (other bituminous coal and anthra-
cite), sub-bituminous coal, coke oven coke, gas-works coke, brown coal coke,
tar, coal patent fuels and other solid fuels.
Linkto company accounts
Purchases of individual energy products cannot be isolated in company
accounts. They are part of raw materials and consumables.
Linkto other variables
Part of purchases of energy products (20 11 0)
Code:20112
Title:Purchasesofpetroleumproducts(invalue)
Purchases of petroleum products during the reference period should be included
in this variable only if they are purchased to be used as fuel. Petroleum products
purchased as raw material or for resale without transformation should be
excluded.
Petroleum productsinclude the following products :
Motor gasoline (leaded and unleaded),1998R2700 — EN — 19.10.2003 — 002.001 — 27
▼M1
▼M1
Transport diesel,
Heating and other gasoil,Fuel oil (with high or low sulphur content),Liquified petroleum gas(LPG),Other petroleum products such as aviation gasoline, gasoline type jet fuel, kero-
sene type jet fuel, others.
Linkto company accounts
Purchases of individual energy products cannot be isolated in company
accounts. They are part of raw materials and consumables.
Linkto other variables
Part of purchases of energy products (20 11 0)
Code:20113
Title:Purchasesofnaturalandderivedgas(invalue)
Purchases of natural and derived gas during the reference period should be
included in this variable only if they are purchased to be used as fuel. Natural
and derived gas purchased as raw material or for resale without transformation
should be excluded.
Natural gas is a methane-rich combustible gas coming from natural fields.
Derived gases consist of coke-oven gas (= gas recovered as a by-product of
coke ovens), blast furnace gas (gas recovered as a by-product of blast furnaces)
and gasworks gas (= gas obtained by carbonisation, cracking, reforming, gasifi-
cation or simple mixing of gas and/or air in gasworks) and oxygen steel furnace
gas(gasrecovered asa by-product of the production of s teel in an oxygen
furnace).
Linkto company accounts
Purchases of individual energy products cannot be isolated in company
accounts. They are part of raw materials and consumables.
Linkto other variables
Part of purchases of energy products (20 11 0)
Code:20114
Title:Purchasesofrenewableenergysources(invalue)
Purchases of renewable energy sources during the reference period should be
included in this variable only if these are purchased to be used as fuel. Renew-
able energy sources purchased as raw material or for resale without
transformation should be excluded.
Renewable energy sources include biomass, biomass waste or other renewable
energy sources.
Linkto company accounts
Purchases of individual energy products cannot be isolated in company
accounts. They are part of raw materials and consumables.
Linkto other variables
Part of purchases of energy products (20 11 0)
Code:20115
Title:Purchasesofheat(invalue)
Heat is produced by heating plants using fossil fuels, biomass, wastes or by
Combined Heat and Power plants(CHP) or from geothermal fields .
Linkto company accounts
Purchases of individual energy products cannot be isolated in company
accounts. They are part of raw materials and consumables.1998R2700 — EN — 19.10.2003 — 002.001 — 28
▼M1
Linkto other variables
Part of purchases of energy products (20 11 0)
Code:20116
Title:Purchasesofelectricity (invalue)
Electricity is a secondary energy source obtained from fossil fuels, nuclear
power, biomass, wastes and other renewable energy sources (such as hydro-
power, wind, solar or geothermal energy sources).
Linkto company accounts
Purchases of individual energy products cannot be isolated in company
accounts. They are part of raw materials and consumables.
Linkto other variables
Part of purchases of energy products (20 11 0)
Code:21110
Title:Investment in equipment and plant for pollution control and
specialanti-pollutionaccessories(mainly‘end-of-pipe’equipment)
Definition
Capital expenditures for methods, technologies, processes or equipment
designed to collect and remove pollution and pollutants (e.g. air emissions,
effluents or solid waste) after their creation, prevent the spread of and measure
the level of the pollution and treat and dispose of pollutants generated by the
operating activity of the company.
It isthe s um of expenditure in the environmental domains‘Protection of
ambient air and climate’, ‘Wastewater management’, ‘Waste management’ and
‘Other environmental protection activities’. ‘Other environmental protection
activities’ includes ‘Protection and remediation of soil, groundwater and surface
water’, ‘Noise and vibration abatement’, ‘Protection of biodiversity and land-
scape’, ‘Protection against radiation’, ‘Research and development’, ‘General
environmental administration and management’, ‘Education, training and infor-
mation’, ‘Activitiesleading to indivis ible expenditure’ and ‘Activitiesnot
elsewhere classified’.
Included are:
— investments in distinct, identifiable components supplementing existing
equipment, which are implemented at the end of or completely outside the
production line (‘end-of-pipe’ equipment),
— investments in equipment (e.g. filters or separate cleaning steps) which
compose or extract pollutants within the production line, when the removal
of these added facilities would not affect in the main the functioning of the
production line.
The main purpose or function of this capital expenditure is environmental
protection and the total expenditure for these should be reported.
The expenditure should be reported gross of any cost offsets resulting from the
generation and sale of marketable by-products, savings made, or subsidies
received.
Purchased goods are valued at the purchase price excluding deductible VAT and
other deductible taxesdirectly linked to turnover.
Excluded are:
— actionsand activitiesbeneficial to the environment that would have been
taken regardless of environmental protection considerations, including
measures that primarily aim at health and safety of the workplace and
production security,
— measures to reduce pollution when the products are used or scrapped (envir-
onmental adaptation of products), unless environmental policy and
regulation expands the legal responsibility of the producer to cover also the
pollution generated by the productswhen us ed, or for taking care of the
productswhen they become was te,
— resource use and saving activities (e.g. water supply or the saving of energy
or raw materials), unless the primary purpose is environmental protection:1998R2700 — EN — 19.10.2003 — 002.001 — 29
▼M2
▼M2
e.g. when these activities aim at implementing national or international
environmental policy and are not undertaken for cost-saving reasons.
Linkto company accounts
The definition is based on the accounting standards applied by the company in
its bookkeeping, in compliance with EU accounting standards: i.e. these are
expenditures that qualify for recognition as an asset.
Linkto other variables
‘Total environmental protection investments’ is the sum of the variables 21 11 0
and 21 12 0. ‘Total environmental protection expenditure’ isthe s um of the
variables21 11 0, 21 12 0 and 21 14 0.
Part of:
15 11 0 Gross investment in tangible goods
15 31 0 Value of tangible goodsacquired through financial leas ing.
Code:21120
Title:Investment in equipment and plant linked to cleaner technologies
(‘integratedtechnology’)
Definition
Capital expenditures for new or adaptation of existing methods, technologies,
processes, equipment (or parts thereof) designed to prevent or reduce the
amount of pollution created at the source (e.g. air emissions, effluents or solid
waste), thereby reducing the environmental impacts associated with the release
of pollutantsand/or with polluting activities .
It isthe s um of expenditure in the environmental domains‘Protection of
ambient air and climate’, ‘Wastewater management’, ‘Waste management’ and
‘Other environmental protection activities’. ‘Other environmental protection
activities’ includes ‘Protection and remediation of soil, groundwater and surface
water’, ‘Noise and vibration abatement’, ‘Protection of biodiversity and land-
scape’, ‘Protection against radiation’, ‘Research and development’, ‘General
environmental administration and management’, ‘Education, training and infor-
mation’, ‘Activitiesleading to indivis ible expenditure’ and ‘Activitiesnot
elsewhere classified’.
The expenditure should be reported gross of any cost offsets resulting from the
generation and sale of marketable by-products, savings made, or subsidies
received.
Purchased goods are valued at the purchase price excluding deductible VAT and
other deductible taxesdirectly linked to turnover.
Included are:
— capital expenditures that involve distinct, separately identifiable (environ-
mental parts of) methods, processes, technologies and equipment. Their
main purpose or function is environmental protection by definition and the
total expenditure of the (environmental parts of) methods, processes, tech-
nologiesand equipment s hould be reported,
— capital expenditures for methods, processes, technologies and equipment that
are integrated with the overall operating activity (production process/installa-
tion) in a way that makesit difficult to identify s eparately the pollution-prevention component. In these cases (‘integrated measures’), only the envir-
onmental protection fraction of the total investment should be reported.
This fraction corresponds to the additional investment vis-à-vis the capital
expenditure that would have been incurred were it not for the environmental
protection considerations. Therefore, the alternative for comparison corre-
sponds to the cheapest alternative available to the company with similar
functions and characteristics, except for those related to environmental
protection.
When the selected option is standard technology and there is no cheaper,
less environmentally beneficial alternative available to the company, the
measure is by definition not an environmental protection activity, and no
expenditure should be reported.
Excluded are:
— actionsand activitiesbeneficial to the environment that would have been
taken regardless of environmental protection considerations, including
measures that primarily aim at health and safety of the workplace and
production security,1998R2700 — EN — 19.10.2003 — 002.001 — 30
▼M2
— measures to reduce pollution when the products are used or scrapped (envir-
onmental adaptation of products), unless environmental policy and
regulation expands the legal responsibility of the producer to cover also the
pollution generated by the productswhen us ed, or for taking care of the
productswhen they become was te,
— resource use and saving activities (e.g. water supply or the saving of energy
or raw materials), unless the primary purpose is environmental protection:
e.g. when these activities aim at implementing national or international
environmental policy and are not undertaken for cost-saving reasons.
Linkto company accounts
The definition is based on the accounting standards applied by the company in
its bookkeeping, in compliance with EU accounting standards: i.e. these are
expenditures that qualify for recognition as an asset.
Linkto other variables
‘Total environmental protection investments’ is the sum of the variables 21 11 0
and 21 12 0. ‘Total environmental protection expenditure’ isthe s um of the
variables21 11 0, 21 12 0 and 21 14 0.
Part of:
15 11 0 Gross investment in tangible goods
15 31 0 Value of tangible goodsacquired through financial leas ing.
Code:21140
Title:Totalcurrentexpenditureonenvironmentalprotection
Definition
Total current expenditure on environmental protection isthe expenditure for
operating and maintaining an activity, technology, process, equipment (or parts
thereof) designed to prevent, reduce, treat or eliminate pollutants and pollution
(e.g. air emissions, effluents or solid waste) or any other degradation of the
environment resulting from the operating activity of the company.
It isthe s um of expenditure in the environmental domains‘Protection of
ambient air and climate’, ‘Wastewater management’, ‘Waste management’ and
‘Other environmental protection activities’. ‘Other environmental protection
activities’ includes ‘Protection and remediation of soil, groundwater and surface
water’, ‘Noise and vibration abatement’, ‘Protection of biodiversity and land-
scape’, ‘Protection against radiation’, ‘Research and development’, ‘General
environmental administration and management’, ‘Education, training and infor-
mation’, ‘Activitiesleading to indivis ible expenditure’ and ‘Activitiesnotelsewhere classified’.
Total current expenditure on environmental protection should be reported gross
of any cost offsets resulting from the sale of marketable by-products, savings or
subsidies received.
Current expenditure is the sum of ‘in-house expenditure’ and ‘purchases of
environmental protection services’:
— in-house expenditure includes all current expenditure on environmental
protection except purchases of environmental protection services from other
units. It is the sum of labour costs, use of raw materials and consumables
and paymentsfor operational leas ing, for example related to operation and
maintenance of environmental equipment, measurement and monitoring of
pollution levels, environmental management, information and education,
environmental research and development,
— purchases of environmental protection services include all fees, charges and
similar payments to other organisations (outside the reporting unit), public or
private, in exchange of environmental protection services related to the
environmental impactsof the operating activity of the company. For
example, payments for collection and treatment of waste and wastewater,
payments related to decontamination of soil, regulatory charges, payments
to environmental consultants related to e.g. environmental information, certi-
fication or operation of environmental equipment.
Purchased goods and services are valued at the purchase price excluding deduc-
tible VAT and other deductible taxesdirectly linked to turnover. Labour
expenditure include the gross wages and salaries including employers' charges
and social security costs, but excluding general overhead.1998R2700 — EN — 19.10.2003 — 002.001 — 31
▼M2
Excluded are:
— actionsand activitiesbeneficial to the environment that would have been
taken regardless of environmental protection considerations, including
measures that primarily aim at health and safety of the workplace and
production security,
— measures to reduce pollution when the products are used or scrapped (envir-
onmental adaptation of products), unless environmental policy and
regulation expands the legal responsibility of the producer to cover also the
pollution generated by the productswhen us ed, or for taking care of the
productswhen they become was te,
— resource use and saving activities (e.g. water supply or the saving of energy
or raw materials), unless the primary purpose is environmental protection:
e.g. when these activities aim at implementing national or international
environmental policy and are not undertaken for cost-saving reasons,
— paymentsof taxes , feesor chargesby the reporting unit that are not linked to
purchasing an environmental service related to the environmental impacts of
the operating activity of the company, even if the government authorities
have earmarked the revenue for financing environmental protection activities
(e.g. taxeson pollution),
— calculated-cost items such as depreciation of environmental equipment,
capital loss due to forced replacement or general overhead,
— loss of income, compensatory charges, fines, penalties and similar which do
not relate to an environmental protection activity.
Linkto company accounts
The definition of current expenditure is based on the accounting standards
applied by the company in itsbookkeeping, in compliance with EU accounting
standards: i.e. current expenditure includes all expenditure that is not capitalised
but charged to the profit-and-loss account.
It is the sum of purchase of raw materials and consumables, labour costs, public
fees and charges, expenses for external services and rental and leasing charges
for environmental protection activities.
Linkto other variables
‘Total environmental protection investments’ is the sum of the variables 21 11 0
and 21 12 0. ‘Total environmental protection expenditure’ isthe s um of the
variables21 11 0, 21 12 0 and 21 14 0.
Part of:
13 11 0 Total purchase of goods and services
13 31 0 Personnel costs.
Code:22110
Title:Totalintra-muralR&Dexpenditure
Definition
Research and experimental development comprise creative work undertaken on
a systematic basis in order to increase the stock of knowledge, including knowl-
edge of man, culture and society, and the use of this stock of knowledge to
devise new applications.
Intra-mural expendituresare all expendituresfor R & D (Res earch & Develop-
ment) performed within the unit, regardless of the source of funds.
R & D must be distinguished from expenditures for a wide range of related
activities. The following are therefore excluded from R & D expenditure:
— expenditureson education and training,
— expenditureson other s cientific and technological activities(e.g. information
services, testing and standardisation, feasibility studies, etc.),
— expenditures on other industrial activities (e.g. industrial innovations n.e.s.),
— expenditureson purely financing activities(other adminis tration and other
indirect supporting activities are included).
Intra-mural expendituresare valued at production cos t and include all operating
costs including the labour cost and capital expenditure.1998R2700 — EN — 19.10.2003 — 002.001 — 32
▼B
▼B
Linkto company accounts
Research and development expenditure may, depending upon national laws, be
recorded in one of three places, movements in intangible assets, movements in
tangible assets or operating expenditure.
If under national law it may be partly or completely capitalised the expenditure
is included in the movement of the intangible assets included in company
accountsunder fixed assets — intangible assets — costs of research and devel-
opment .
If under national law it is only partially capitalised or not capitalised at all, the
current expenditure ispart of Raw materials and consumables, other external
charges, staff costs andother operating charges and the capital expenditure is
included in the movement of the tangible assets included in company accounts
underFixed assets — tangible assets .
Code:22120
Title:TotalnumberofR&Dpersonnel
Definition
Research and experimental development comprise creative work undertaken on
a systematic basis in order to increase the stock of knowledge, including knowl-
edge of man, culture and society, and the use of this stock of knowledge to
devise new applications.
All persons employed directly on Research & Development (R & D) should be
counted, as well as those providing direct services such as R & D managers,
administrators and clerical staff. Those persons providing an indirect service,
such as canteen and security staff, should be excluded, even though their wages
and salaries are included as an overhead in the measurement of expenditure.
R & D personnel must be distinguished from personnel for a wide range of
related activities. The following are therefore excluded from R & D personnel:
— personnel employed on education and training,
— personnel employed on other scientific and technological activities (e.g.
information services, testing and standardisation, feasibility studies, etc.),
— personnel employed on other industrial activities (e.g. industrial innovations
n.e.s.),
— personnel employed on administration and other indirect supporting activ-
ities.
Linkto company accounts
The total number of research and development personnel may not be isolated in
company accounts. It is part of the number of persons employed which is
recorded in the noteson the company accounts(Article 43 (8)).
Linkto other variables
Part of the number of persons employed (16 11 0)
Code:23110
Title:Paymentstosubcontractors
Definition (for industry — Sections C to E of NACE Rev. 1)
Paymentsto s ubcontractorsare paymentsmade by the unit to third partiesin
return for industrial goods and services supplied as part of a subcontracting rela-
tionship defined as follows:
Two enterprises are linked by a subcontracting relationship whenever conditions
A and B are met together:
A. the customer enterprise, also said main-contractor, participatesin the
conception of the product providing, even partially, technical specifications
to thesupplier enterprise, also said subcontractor, and/or providesit with
the materials to be processed;
B. the customer enterprise sells the subcontracted product, either as such or as
part of a more complex product, and takeson the after-s alesliability for the
product.1998R2700 — EN — 19.10.2003 — 002.001 — 33
▼B
Note: The mere stipulation of a colour, size or catalogue number does not
constitute a technical specification in itself. The manufacture of a tailor-made
product does not of itself necessarily imply a subcontracting relationship.
Linkto company accounts
Payments to subcontractors are not necessarily treated separately in company
accounting. They may be included in other external charges andother operating
costs.
Linkto other variables
Part of total purchases of goods and services (13 11 0).
Code:25111
Title:Percentage shareofturnovertoretail traders
Definition
The share of wholesale enterprises' turnover (Division 51 of NACE Rev. 1)
accounted for by retail traders. This share corresponds to the traditional scheme
producer →wholesaler →retailer→consumer. Note that the share shall be
calculated on the basis of turnover from trading activities of purchase and resale
(18 13 0).
Linkto company accounts
Percentage share of turnover to retail traders may be isolated in company
accounts. It is part of net turnover.
Linkto other variables
Part ofTurnover (12 11 0)
Part ofTurnover from trading activities of purchase and resale (18 13 0)
Note: This variable forms together with (25 11 2), professional users and (25
11 3) final consumers an exhaustive breakdown of turnover from trading activ-
ities of purchase and resale (18 13 0).
Code:25112
Title:Percentage share of turnover to professional users (wholesalers,
others)
Definition
The share of wholesale enterprise' turnover (Division 51 of NACE Rev. 1)
accounted for by professional users (businesses, institutions, government bodies,
etc.) and wholesalers. Sales to retailers and final consumers are excluded. The
wholesalers may form a complex distribution network involving several whole-
salers prior to the final user.
Note that the share of turnover shall be calculated on the basis of turnover from
trading activities of purchase and resale (18 13 0).
Linkto company accounts
Percentage share of turnover to professional users may not be isolated in
company accounts. It is part of net turnover .
Linkto other variables
Part ofturnover (12 11 0)
Part ofturnover from trading a activities of purchase and resale (18 13 0)
Note: Thisvariable formstogether with (25 11 1), retail tradersand (25 11 3)
final consumers an exhaustive breakdown of turnover from trading activities of
purchase and resale (18 13 0).
Code:25113
Title:Percentage shareofturnovertofinalconsumers1998R2700 — EN — 19.10.2003 — 002.001 — 34
▼B
Definition
The share of wholesale enterprises' turnover (Division 51 of NACE Rev. 1)
accounted for by final consumers. This corresponds to a secondary activity of
the wholesalers, acting in a retail capacity.
Note that the share of turnover shall be calculated on the basis of turnover from
trading activities of purchase and resale (18 13 0).
Linkto company accounts
Percentage share of turnover to final consumers may not be isolated in company
accounts. It is part of net turnover .
Linkto other variables
Part ofturnover (12 11 0)
Part ofturnover from trading activities of purchase and resale (18 13 0)
Note: Thisvariable formstogether with (25 11 1), retail tradersand (25 11 2)
professional users an exhaustive breakdown of turnover from trading activities
of purchase and resale (18 13 0).
Code:25211
Title:Percentage share of purchases from wholesalers and purchasing
groups
Definition
This characteristic, as well as describing the supply network of retail trade, is an
approximation made by the retailer to assess the share of direct purchases from
wholesalers and through purchasing groups.
Note that the share of purchases shall be calculated on the basis of purchases of
goods and services purchased for resale in the same condition as received (13 12
0).
Linkto company accounts
Percentage share of purchases from wholesalers and purchasing groups may not
be isolated in company accounts. It is a part of raw materials and consumables,
other external charges andother operating charges .
Linkto other variables
Part oftotal purchases of goods and services (13 11 0).
Part ofpurchases of goods and services purchased for resale in the same condi-
tion as received (13 12 0).
Note that the shares of purchases from wholesalers and purchasing groups (25
21 1) and producers (25 21 2) may not correspond to the total purchases for
resale (13 12 0). The first two variables do not include e.g. purchases from retai-
lers and purchases of used goods from professional/private users.
Code:25212
Title:Percentage shareofpurchasesfromproducers
Definition
This characteristic, as well as 25 21 1, describes the supply network of retail
trade. It is an approximation made by the retailer to assess the share of direct
purchases from producers.
Note that the share of purchases shall be calculated on the basis of purchases of
goods and services purchased for resale in the same condition as received (13 12
0).
Linkto company accounts
Percentage share of purchases from producers may not be isolated in company
accounts. It is a part of raw materials and consumables, other external charges
and other operating charges .
Linkto other variables
Part oftotal purchases of goods and services (13 11 0).1998R2700 — EN — 19.10.2003 — 002.001 — 35
▼B
Part of purchases of goods and services purchased for resale in the same condi-
tion asreceived (13 12 0).
Note that the shares of purchases from wholesalers and purchasing groups (25
21 1) and producers (25 21 2) may not correspond to the total purchases for
resale (13 12 0). The first two variables do not include e.g. purchases from retai-
lers and purchases of used goods from professional/private users.1998R2700 — EN — 19.10.2003 — 002.001 — 36