Commission Regulation (EC) No 2700/98 of 17 December 1998 concerning the definitions of characteristics for structural business statistics (Text with EEA relevance)
Date: 1998-12-17
Institutions: European Commission
Subjects: EU statistics, branch of activity, company structure, competitiveness, statistical method, statistical nomenclature

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COMMISSION  REGULATION  (EC)  No  2700/98

of  17  December  1998

concerning  the  definitions  of  characteristics  for  structural  business  statistics

(Text  with  EEA  relevance)

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  particular  Article  12(iii)  thereof,

Whereas Council Regulation (EC, Euratom) No 58/97 established a common framework for the
production of Community  statistics on the structure, activity, competitiveness and performance
of  businesses  in  the  Community;

Whereas  it  is  necessary  to  implement  a  set  of  definitions  for  the  structural  business  statistics
characteristics;

Whereas  the  envisaged  measures  are  in  accordance  with  the  opinion  of  the  Statistical
Programme  Committee,

HAS  ADOPTED  THIS  REGULATION:

Article  1

The  characteristics  referred  to  in  Article  4  of  Regulation  (EC,  Euratom)  No  58/97  are

1.
defined  in  the  Annex  to  this  Regulation.

2.
In  these  definitions,  references  to  company  accounts  use  the  headings  laid  down  in
Article  9  (balance  sheet),  Article  23  (profit  and  loss  account)  or  Article  43  (notes  on  the
accounts)  of  the  Council  Directive  78/660/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  years  where  this  corresponds  to  existing  national  practices.

Article  3

This  Regulation  shall  enter  into  force  on  the  20th  day  following  its  publication  in  the  Official
Journal  of  the  European  Communities.

(1) OJ  L  14,  17.1.1997,  p.  1.
(2) OJ  L  222,  14.8.1978,  p.  11.

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This  Regulation  shall  be  binding  in  its  entirety  and  directly  applicable  in  all  Member  States.

Done  at  Brussels,  17  December  1998.

For  the  Commission

Yves-Thibault  de  SILGUY

Member  of  the  Commission

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ANNEX

DEFINITIONS  OF  CHARACTERISTICS

11 11 0

Number  of  enterprises

Code:

Title:

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.

11 12 0

Number  of  births  of  enterprises

Code:

Title:

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  factors  with
the  restrictrion  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.

Link  to  other  variables

Part  of  number  of  enterprises  (11 11 0).

11 13 0

Number  of  deaths  of  enterprises

Code:

Title:

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.

11 21 0

Number  of  local  units

Code:

Title:

Definition

A  count  of  the  number  of  local  units  registered  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  units  active  for  at  least  a  part  of  the  reference  period.

11 31 0

Number  of  kind-of-activity  units

Code:

Title:

Definition

A  count  of  the  number  of  kind-of-activity  units  registered  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  units  active  for  at  least  a  part  of  the  reference  period.

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Code:

Title:

12 11 0

Turnover

Definition

Turnover  comprises  the  totals  invoiced  by  the  observation  unit  during  the  reference  period,  and  this
corresponds  to  market  sales  of  goods  or  services  supplied  to  third  parties.

Turnover  includes  all  duties  and  taxes  on  the  goods  or  services  invoiced  by  the  unit  with  the  exception  of
the  VAT  invoiced  by  the  unit  vis-à-vis  its  customer  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 authorities or the institutions
of  the  European  Union  are  also  excluded.

For NACE Rev. 1 classes 66.01 and 66.03, the corresponding title of this characteristic is ‘Gross premiums
written’.

Note:  indirect  taxes  can  be  separated  into  three  groups.

(i) The  first  comprises  VAT  and  other  deductible  taxes  directly  linked  to  turnover  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)  taxes  on  products  not  linked  to  turnover.  Included  here  are  taxes
and duties on 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  consumption  or  own  capital  formation.

(iii) The  third  group  concerns  taxes  and  duties  linked  to  production.  These  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.

Link  to  company  accounts

Turnover  as  defined  above  for  statistical  purposes  comprises  the  accounting  heading  ‘Net  turnover’.

Link  to  other  variables

— Turnover  is  used  in  the  calculation  of  Production  value  (12 12 0)  and  other  aggregates  and  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),

— 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).

Code:

Title:

12 12 0

Production  value

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 is defined as turnover, plus or minus the changes in stocks 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  and

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expenditure 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  parties  in  the  same  condition.

Specific  calculation  methods  are  needed  for  NACE  Rev.  1  classes  66.01  and  66.03

Note:  capitalised  production  includes  the  own-account  production  of  all  goods  that  are  retained  by  their
producers as investment. The latter includes the production of fixed tangible assets (buildings etc.) as well as
intangible  assets  (development  of  software  etc.).  Capitalised  production  is  unsold  production  and  is  valued
at  production  cost.  Note  that  these  capital  goods  are  also  to  be  included  in  investment.

Note:  other  operating  income  is  a  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.

Link  to  company  accounts

The  components  of  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  goods  for  resale,

— work  performed  by  the  undertaking  for  its  own  purposes  and  capitalised.

Link  to  other  variables

Production  value  is  based  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  condition  as  received  (13 12 0),

Capitalised  production,

+ Other  operating  income  (excluding  subsidies).

— Production value is used in the calculation of  value-added  at  factor  cost  (12 15 0)  and  other  aggregates

and balances.

12 13 0

Gross  margin  on  goods  for  resale

Code:

Title:

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  parties  in  the  same
condition.

Also  called  gross  trading  margin.

Link  to  company  accounts

These  figures  may  not  be  isolated  in  company  accounts.  They  are  part  of  net  turnover  and  raw  materials
and  consumables.

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Link  to  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  condition  as  received  (13 12 0),

+/− Changes  in  stocks  of  goods  and  services  purchased  for  resale  in  the  same  condition  as  received

(13 21 1),

— Gross  margin  on  goods  for  resale  is  a  part  of  Production  value  (12 12 0).

12 14 0

Value-added  at  basic  prices

Code:

Title:

Definition

Value-added  at  basic  prices  is  calculated  from  the  production  value  plus  subsidies  on  products  less  the
purchases of goods and services (other than those purchased for resale in the same condition) plus or minus
the  change  in  stocks  of  raw  materials  and  consumables  less  other  taxes  on  products  which  are  linked  to
turnover  but  not  deductible.  It  represents  the  value  added  by  the  various  factor  inputs  in  the  operating
activities  of  the  unit  concerned.

Income  and  expenditure  classified  as  financial  or  extraordinary  in  company  accounts  is  excluded  from
valued-added.

Value-added  at  basic  prices  is  calculated  ‘gross’  because  value  adjustments  (such  as  depreciation)  are  not
subtracted.

Note:  operating  subsidies  can  be  separated  into  two  groups.

(i) Subsidies on products are subsidies payable per unit of a good or service. The subsidy may be a specific
amount  of  money  per  unit  of  a  good  or  service  or  it  may  be  calculated  ad  valorem  as  a  specified
percentage  of  the  price  per  unit.  A  subsidy  on  a  product  usually  becomes  payable  when  the  good  or
service is produced, sold or imported, but it may also be payable in other circumstances such as when a
good  is  transferred,  leased,  delivered  or  used  for  own  consumption  or  own  capital  formation.

(ii) Subsidies linked to production are subsidies received by a unit which are not linked to the quantity or
the  value  of  goods  produced  or  sold.  Notably  these  subsidies  include  subsidies  on  the  payroll  and
workforce,  subsidies  for  environmental  protection  and  grants  for  interest  relief.

Investment  subsidies  are  excluded.  Specific  calculation  methods  are  needed  for  NACE  Rev.  1  classes  66.01
and  66.03

Note:  indirect  taxes  can  be  separated  into  three  groups.

(i) The  first  comprises  VAT  and  other  deductible  taxes  directly  linked  to  turnover  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)  taxes  on  products  not  linked  to  turnover.  Included  here  are  taxes
and duties on 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  consumption  or  own  capital  formation.

(iii) The  third  group  concerns  taxes  and  duties  linked  to  production.  These  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.

Link  to  company  accounts

Value-added  at  basic  prices  can  be  calculated  from  the  following  accounting  headings:

— Net  turnover,

— Variation  in  stocks  of  finished  goods  and  work  in  progress,

— Work  performed  by  the  undertaking  for  its  own  purposes  and  capitalised,

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— Raw  materials  and  consumables,

— Other  external  charges,

— part  of  other  operating  charges  —  excluding  duties  and  taxes  linked  to  production,

— part  of  other  operating  income  —  excluding  operating  subsidies  linked  to  production.

Link  to  other  variables

Value  at  basic  prices  is  based  on:

Turnover  (12 11 0),

−

Total  purchases  of  goods  and  services  (13 11 0),

+/− Change  in  stocks  of  goods  and  services  (13 21 0),

+

Capitalised  production,

+ Other  operating  income  (excluding  subsidies  linked  to  production),

− Other  taxes  on  products  which  are  linked  to  turnover  but  not  deductible.

12 15 0

Value-added  at  factor  cost

Code:

Title:

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, plus capitalised production, plus other operating 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, minus the duties and taxes linked 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  accounts  is  excluded  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  turnover  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)  taxes  on  products  not  linked  to  turnover.  Included  here  are  taxes
and duties on 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  consumption  or  own  capital  formation.

(iii) The  third  group  concerns  taxes  and  duties  linked  to  production.  These  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.

Specific  calculation  methods  are  needed  for  NACE  Rev.  1  classes  66.01  and  66.03

Link  to  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,

— Work  performed  by  the  undertaking  for  its  own  purposes  and  capitalised,

— Raw  materials  and  consumables,

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— Other  external  charges,

— Other  operating  charges,

— Other  operating  income.

Link  to  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  taxes  on  products  which  are  linked  to  turnover  but  not  deductible,

−

Duties  and  taxes  linked  to  production,

— Value-added  at  factor  cost  is  used  in  the  calculation  of  gross  operating  surplus  (12 17 0)  and  other

aggregates and balances.

12 17 0

Gross  operating  surplus

Code:

Title:

Definition

Gross  operating  surplus  is  the  surplus  generated  by  operating  activities  after  the  labour  factor  input  has
been recompensed. It can be calculated from the value-added at factor cost less the personnel costs. It is the
balance  available  to  the  unit  which  allows  it  to  recompense  the  providers  of  own  funds  and  debt,  to  pay
taxes  and  eventually  to  finance  all  or  a  part  of  its  investment.

Income and expenditure classified as financial or extraordinary in company accounts is excluded from gross
operating  surplus.

Link  to  company  accounts

Gross  operating  surplus  can  be  calculated  from  the  following  accounting  headings:

— Net  turnover,

— Variation  in  stocks  of  finished  goods  and  work  in  progress,

— Work  performed  by  the  undertaking  for  its  own  purposes  and  capitalised,

— Raw  materials  and  consumables,

— Other  external  charges,

— Other  operating  charges,

— Other  operating  income,

— Staff  costs.

Link  to  other  variables

Gross  operating  surplus  is  based  on:

Value-added  at  factor  cost  (12 15 0)

− Personnel  costs  (13 31 0).

13 11 0

Total  purchases  of  goods  and  services

Code:

Title:

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  production  process,  excluding  capital  goods  the  consumption  of

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which 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  production  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-capitalised small tools and equipment. Also included are the
value of ancillary materials (lubricants, water, packaging, maintenance and repair materials, office materials)
as well as energy products. Included in this variable are the purchases of materials made for the production
of  capital  goods  by  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  parties  on  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,  electronic
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  taxes  linked  directly  to  turnover.

All other taxes and duties on the products are 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.

Specific  calculation  methods  are  needed  for  NACE  Rev.1  classes  66.01  and  66.03

Link  to  company  accounts

Purchases  of  goods  and  services  can  be  calculated  from  the  accounting  headings:

— Raw  materials  and  consumables  (before  account  is  made  of  changes  in  stocks  of  goods  and  services),

— Other  external  charges  (before  account  is  made  of  changes  in  stocks  of  goods  and  services),

— part  of  Other  operating  charges,  the  part  included  here  concerns  payments  for  goods  and  services  not
included  in  the  two  headings  above  (raw  materials  and  consumables  and  other  external  charges).  The
part  not  included  here  concerns  the  payment  of  taxes  on  production.

Link  to  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).

L 344/58

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13 12 0

Purchases  of  goods  and  services  purchased  for  resale  in  the  same  condition  as  received

Code:

Title:

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  parties  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 taxes linked directly to turnover. All other taxes and duties on the products are
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.

Link  to  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.

Link  to  other  variables

Part  of  Total  purchases  of  goods  and  services  (13 11 0)

Purchases  of  goods  and  services  purchased  for  resale  in  the  same  condition  as  received  is  used  in  the
calculation  of  Gross  margin  on  goods  for  resale  (12 13 0),  in  Production  value  (12 12 0)  and  other
aggregates and balances.

13 13 1

Payments  for  agency  workers

Code:

Title:

Definition

Included in this figure are payments to employment agencies and similar organisations for the provision of
personnel.  Only  the  payments  for  the  provision  of  personnel  which  is  not  linked  to  the  provision  of  a
particular  industrial  or  other  non-industrial  service  is  included.

Link  to  company  accounts

Payments for agency workers may not be isolated in company accounts. It is part of other external charges
and  other  operating  charges.

Link  to  company  accounts

Part  of  Total  purchases  of  goods  and  services  (13 11 0).

13 21 0

Changein  stocks  of  goods  and  services

Code:

Title:

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 withdrawals 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.

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L 344/59

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 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  parties  are  excluded.

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.

Link  to  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.

Link  to  other  variables

— Change  in  stocks  of  goods  and  services  is  used  in  the  calculation  of  Value-added  at  market  prices

(12 14 0)  and  other  aggregates  and  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 work in progress manufactured by the unit (13 21 3) and (iii) Change in stocks
of  raw  materials  and  consumables.

13 21 1

Change  in  stocks  of  goods  and  services  purchased  for  resale  in  the  same  condition  as
received

Code:

Title:

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.

L 344/60

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Link  to  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  consumables,  other  external  charges  and  other  operating
charges.

Link  to  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  aggregates  and  balances,

— Part  of  Change  in  stocks  of  goods  and  services  (13 21 0).

13 21 3

Change  in  stocks  of  finished  products  and  work  in  progress  manufactured  by  the  unit

Code:

Title:

Definition

This  variable  is  defined  as  the  change  in  the  value  of  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, between the first and
last  days  of  the  reference  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  parties  are  excluded.

Stocks  are  valued  at  production  cost,  and  are  valued  prior  to  value  adjustments  (such  as  depreciation).

Link  to  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.

Link  to  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  aggregates  and  balances,

— Part  of  Change  in  stocks  of  goods  and  services  (13 21 0).

Code:

Title:

13 31 0

Personnel  costs

Definition

Personnel  costs  are  defined  as  the  total  remuneration,  in  cash  or  in  kind,  payable  by  an  employer  to  an
employee (regular and temporary employees as well 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 is included, regardless of whether it is paid on the basis of
working  time,  output  or  piecework,  and  whether  it  is  paid  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.

18.12.98

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L 344/61

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.

Link  to  company  accounts

Personnel  costs  can  be  calculated  directly  from  the  following  accounting  headings:

— Staff  costs,  which  is  the  sum  of  the  headings  wages  and  salaries  and  social  security  costs.

Link  to  other  variables

Personnel  costs  is  based  on

Wages  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  aggregates  and
balances.

Code:

Title:

13 32 0

Wages and salaries

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
employees and withheld at source by the employer. Wages and salaries which the employer continues to pay
in the event of illness, occupational 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.

Link  to  company  accounts

Wages  and  salaries  are  recorded  in  company  accounts  as  the  heading  Wages  and  salaries.

Link  to  other  variables

Wages  and  salaries  is  used  in  the  calculation  of  Personnel  costs  (13 31 0).

13 33 0

Social  security  costs

Code:

Title:

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.

L 344/62

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Charges  are  included  for  all  schemes,  regardless  of  whether  they  are  statutory,  collectively  agreed,
contractual or voluntary in nature. Wages and salaries which 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.

Link  to  company  accounts

Social  security  costs  are  recorded  in  company  accounts  as  the  heading  Social  security  costs.

Link  to  other  variables

Social  security  costs  is  used  in  the  calculation  of  Personnel  costs  (13 31 0).

13 41 0

Operating  costs  linked  to  buildings  and  equipment

Code:

Title:

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  maintenance  and  repair  of  buildings,

— operational  leasing  payments,

— the  expenses  related  to  equipment,  including:

— payments for maintenance and repair of all machines (including computers and vehicles) and the cost

of  renting

— payments  for  operational  leasing  of  machines.

Link  to  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  and  other  operating  charges.

Link  to  other  variables

Part  of  Total  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).

13 41 1

Payments  for  long-term  rental  and  operational  leasing  of  goods

Code:

Title:

Definition

The payments for long-term rental include all charges relative to the renting of tangible goods for 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.  Thus  the  leasing  period  does  not  cover  all,  or  a
predominant  part  of,  the  good’s  economic  lifetime.  Payments  for  the  operational  leasing  of  goods  relate  to
the  cost  of  using  the  tangible  goods  made  available  to  the  unit  through  these  contracts.

Link  to  company  accounts

Payments for long-term rental and operational leasing of goods may not be isolated in company accounts. It
is  part  of  other  external  charges  and  other  operating  charges.

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L 344/63

Link  to  other  variables

Part  of  Purchases  of  good  and  services  (13 11 0),

Part  of  Operating  costs  linked  to  buildings  and  equipment  (13 41 0).

Code:

Title:

13 42 0

Cost  of  selling

Definition

Cost  of  selling,  which  forms  part  of  ‘Purchases  of  goods  and  services’  consists  of  advertising  expenses,
transport  of  goods,  travelling  expenses,  hotel  accommodation,  entertaining  expenses  and  other  expenses
related  to  the  selling  of  goods  (payments  for  agency  workers  included).

Link  to  company  accounts

Cost  of  selling  may  not  be  isolated  in  company  accounts.  It  is  a  part  of  Raw  materials  and  consumables,
other  external  charges  and  other  operating  charges.

Link  to  other  variables

Part  of  Total  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).

13 43 0

Other  operating  costs

Code:

Title:

Definition

Other operating costs may for example consist of expenses for bookkeeping, consultancy, office stationery,
recruitment, insurance premiums, costs of collective staff transport, cost of bank services (excluding interest
payments),  postal  and  telecommunication  expenses  (telephone,  telex).

Link  to  company  accounts

Other  operating  costs  may  not  be  isolated  in  company  accounts.  It  is  a  part  of  Raw  materials  and
consumables,  other  external  charges  and  other  operating  charges.

Link  to  other  variables

Part  of  Total  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).

15 11 0

Gross  investment  in  tangible  goods

Code:

Title:

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  capitalised  may  be  increased  according  to
company accounting practices where these practices require, a greater expected useful life than the one-year
threshold  indicated  above.

L 344/64

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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  ownership  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  is  proposed  as  an  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
approximations  to  this  method  need  to  be  used:

(i)

investments  are  recorded  in  the  reference  period  in  which  they  are  delivered,

(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.

Link  to  company  accounts

Investment is not recorded in the balance sheet. However, the additions, disposals 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  goods  are  listed  in  company  accounts  under  Fixed  assets  —  tangible  assets.

Link  to  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:

15 12 0

Title:

Gross  investment  in  land

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 components is not separable, the
total  is  recorded  under  this  heading  if  it  is  estimated  that  the  value  of  the  land  exceeds  the  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  levelling,  the  laying  of  pipes  or  by  the  provision  of  paths  or  roads.  Land  acquired
through  restructurations  (such  as  mergers,  take-overs,  break-ups,  split-off)  is  excluded.

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Link  to  company  accounts

Investment is not recorded in the balance sheet. However, the additions, disposals 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 under fixed 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.

Link  to  other  variables

Part  of  Gross  investment  in  tangible  goods  (15 11 0).

15 13 0

Gross  investment  in  existing  buildings  and  structures

Code:

Title:

Definition

The  investment  includes  the  cost  of  the  existing  buildings  and  structures  which  have  been  acquired  during
the reference period. Where land is purchased with existing buildings and the value of the two components
is  not  separable,  the  total  is  recorded  under  this  heading  if  it  is  estimated  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 restructurations (such
as  mergers,  take-overs,  break-ups,  split-off)  are  excluded.

Link  to  company  accounts

Investment is not recorded in the balance sheet. However, the additions, disposals 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  parts  relating  to  land
and construction 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.

Link  to  other  variables

Part  of  Gross  investment  in  tangible  goods  (15 11 0).

15 14 0

Gross  investment  in  construction  and  alteration  of  buildings

Code:

Title:

Definition

This variable covers expenditure during the reference period on the construction 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 capacity
of  buildings.

Included are permanent installations such as water supply, central heating, air conditioning, lighting, etc. as
well  as  construction  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.

Link  to  company  accounts

Investment is not recorded in the balance sheet. However, the additions, disposals 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 parts relating
to  land  and  existing  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.

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Link  to  other  variables

Part  of  Gross  investment  in  tangible  goods  (15 11 0).

Code:

15 15 0

Title:

Gross  investment  in  machinery  and  equipment

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 restructurations (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.

Link  to  company  accounts

Investment is not recorded in the balance sheet. However, the additions, disposals 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 and other fixtures and fittings, tools
and  equipment.  Part  of  payments  on  account  and  tangible  assets  in  course  of  construction  should  be
included  in  so  far  as  they  relate  to  machinery  and  equipment.

Link  to  other  variables

Part  of  Gross  investment  in  tangible  goods  (15 11 0)

Code:

15 21 0

Title:

Sales  of  tangible  investment  goods

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  actually  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.

Link  to  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:

15 31 0

Title:

Value  of  tangible  goods  acquired  through  financial  leasing

Definition

Under  a financial lease the lessee acquires the right to use a durable good in exchange for rental payments
over a predetermined and protracted term. If all risks and rewards of ownership are de facto though not de

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jure,  transferred  from  lessor  to  lessee,  the  lease  is  a  financial  one.  In  financial  leasing,  the  leasing  period
covers all, or most 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  estimated  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.

This  value  should  be  recorded  at  the  time  when  the  good  is  delivered  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.

Link  to  company  accounts

Note:  The  value  of  tangible  goods  acquired  through  financial  leasing  is  not  referred  to  in  the  fourth
Directive.  However,  some  national  accounting  standards  do  permit  these  goods  to  be  capitalised  in  the
balance  sheet.

Link  to  other  variables

Note: The value of tangible goods acquired through financial leasing is not included in Gross investment in
tangible  goods  (15 11 0).

Code:

16 11 0

Title:

Number  of  persons  employed

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 workers who are regarded as such under the laws of the country concerned and who
are  on  the  payroll,  as  well  as  seasonal  workers,  apprentices  and  home  workers  on  the  payroll.

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  military  service.

Unpaid family workers refer to persons who 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  as  their  principal
occupation.

Note:  In  order  to  check  the  comparability  of  data,  it  is  necessary  to  indicate  whether  voluntary  workers
have  been  included  under  this  heading  or  not.

Link  to  company  accounts

The  number  of  persons  employed  is  recorded  in  the  notes  on  the  company  accounts  (Article  43(8)).

Link  to  other  variables

The number of persons employed may be broken down into the number of employees (16 13 0) and unpaid
workers.

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16 13 0

Number  of  employees

Code:

Title:

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  enterprise  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 is considered 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’s process of production in

return  for  remuneration  and/or  education  services,

— employees  engaged  under  a  contract  specifically  designed  to  encourage  the  recruitment  of  unemployed

persons,

— homeworkers  if  there  is  an  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  employees  does  not  include  voluntary  workers.

The number of employees is calculated in the same manner as the number of persons employed, namely as
the  number  of  jobs  and  is  measured  as  an  annual  average.

Link  to  other  variables

Part  of  the  Number  of  persons  employed  (16 11 0).

Many  categories  of  employees  are  identified  separately

— Number  of  part-time  employees  (16 13 1)

— Number  of  apprentices  (16 13 2)

— Number  of  homeworkers  (16 13 5)

16 13 1

Number  of  part-time  employees

Code:

Title:

Definition

This  is  a  division  of  the  number  of  employees  calculated  by  reference  to  the  number  of  hours  worked  per
week  for  which  they  are  paid;  this  number  of  hours  is  considered  in  relation  to  the  length  of  what  is
considered  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 days a week,
etc.).  This  number  may  be  established  at  the  national,  regional,  industrial  or  unit  level.

The number of employees may be broken down according to the weekly number of hours which they work.
This  number  of  hours  is  considered  in  relation  to  the  length  of  what  is  regarded  as  a  standard  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  hours  of  the  employing  unit.

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It  is  impossible  to  establish  an  exact  distinction  between  part-time  and  full-time  work  due  to  variation  in
working  practices  between  Member  States  and  industries.

Part-time  employees  (duration  of  work  less  than  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.

Link  to  other  variables

Part  of  Number  of  employees  (16 13 0)

Code:

16 13 2

Title:

Number  of  apprentices

Definition

All  employees  who  do  not  participate  fully  in  the  production  process  of  the  unit  because  they  are  working
under  an  apprentice’s  contract  or  because  the  fact  that  they  are  undertaking  vocational  training  impinges
significantly  on  their  productivity  are  included  in  this  variable.

Link  to  other  variables

Part  of  Number  of  employees  (16 13 0)

Code:

16 13 5

Title:

Number  of  homeworkers

Definition

Homeworkers  are  a  sub-division  of  persons  employed  of  the  observation  unit  who  carry  out  their
professional  activity  from  their  own  home.  Only  homeworkers  who  appear  on  the  payroll  of  the
observation  unit  should  be  included.

Link  to  other  variables

Part  of  Number  of  employees  (16 13 0)

Code:

16 14 0

Title:

Number  of  employees  in  full-time  equivalent  units

Definition

The  number  of  employees  converted  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  the  standard  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.

Link  to  other  variables

The Number 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.

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Code:

16 15 0

Title:

Number  of  hours  worked  by  employees

Definition

The total number of hours worked by employees represents the aggregate number of hours actually worked
for  the  output  of  the  observation  unit  during  the  reference  period.

This variable excludes hours paid but not actually worked such as for annual leave, holidays and sick leave.
It  also  excludes  meal  breaks  and  commuting  between  home  and  work.

Included are hours actually worked during normal working hours; hours worked 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  hours  actually  worked  is  not  known,  it  may  be  estimated  on  the  basis  of  the
theoretical  number  of  working  hours  and  the  average  rate  of  absences  (sickness,  maternity,  etc.).

Link  to  other  variables

The  number  of  hours  worked  by  employees  may  be  used  in  the  conversion  of  the  Number  of  employees
(16 13 0)  into  the  Number  of  employees  in  full-time  equivalent  units  (16 14 0).

Code:

17 32 0

Title:

Number  of  retail  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.

Link  to  other  variables

Part  of  Number  of  local  units  (11 21 0)

Code:

17 33 0

Title:

Category  of  sales  space  for  retail  stores  engaged  in  retail  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  m2

— from  120  to  399  m2

— from  400  to  999  m2

— from  1 000  to  2 499  m2

— from  2 500  to  4 999  m2

— from  5 000  to  9 999  m2

— 10 000m2  and  more

Link  to  other  variables

This  is  a  breakdown  of  Number  of  retail  stores  (17 32 0)

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Code:

Title:

17 33 1

Sales space

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.

17 34 0

Number  of  fixed  market  stands  and/or  stalls

Code:

Title:

Definition

The  characteristic  covers  the  total  number  of  fixed  market  stands  and/or  permanent  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.

18 10 0

Turnover  from  agriculture,  forestry,  fishing  and  industrial  activities

Code:

Title:

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.

Link  to  company  accounts

Turnover  from  industrial  activities  cannot  be  isolated  in  company  accounts.  It  is  part  of  net  turnover.

Link  to  other  variables

Part  of  turnover  (12 11 0)

18 11 0

Turnover  from  the  principal  activity  at  the  NACE  Rev.  1  4-digit  level.

Code:

Title:

Definition

The  part  of  turnover  derived  from  the  principal  activity  of  the  unit.  The  principal  activity  of  a  unit  is
determined  according  to  the  rules  laid  down  in  the  Council  Regulation  on  statistical  units  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.

Link  to  company  accounts

Turnover  from  the  principal  activity  at  the  NACE  Rev.  1  4-digit  level  cannot  be  isolated  in  company
accounts.  It  is  part  of  net  turnover.

(1) OJ  L  76,  30.3.1993,  p.  1.

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Link  to  other  variables

Part  of  turnover  (12 11 0)

18 12 0

Turnover  from  industrial  activities

Code:

Title:

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.

Link  to  company  accounts

Turnover  from  industrial  activities  cannot  be  isolated  in  company  accounts.  It  is  part  of  net  turnover.

Link  to  other  variables

Part  of  turnover  (12 11 0)

Part  of  turnover  from  agriculture,  forestry,  fishing  and  industrial  activities  (18 10 0)

18 12 1

Turnover  from  industrial  activities  excluding  construction

Code:

Title:

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.

Link  to  company  accounts

Turnover from industrial activities excluding construction cannot be isolated in company accounts. It is part
of  net  turnover.

Link  to  other  variables

Part  of  turnover  (12 11 0)

Part  of  turnover  from  agriculture,  forestry,  fishing  and  industrial  activities  (18 10 0)

Part  of  Turnover  from  industrial  activities  (18 12 0)

18 12 2

Turnover  from  construction  activities

Code:

Title:

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.

Link  to  company  accounts

Turnover  from  construction  activities  cannot  be  isolated  in  company  accounts.  It  is  part  of  net  turnover.

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Link  to  other  variables

Part  of  turnover  (12 11 0)

Part  of  turnover  from  agriculture,  forestry,  fishing  and  industrial  activities  (18 10 0)

Part  of  Turnover  from  industrial  activities  (18 12 0)

18 13 0

Turnover  from  trading  activities  of  purchase  and  resale

Code:

Title:

Definition

The part of turnover derived from the trading activities of purchase and resale of the unit. This corresponds
to the sales of goods purchased by the unit in its own name and for its own account and resold in the same
condition  in  which  they  were  purchased,  or  after  such  labelling,  packaging  and  wrapping  as  is  usually
practised  in  distributive  trade  enterprises.

Resales  of  this  type  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  maintenance,  repair  and  fee  or
contract  based  wholesaling  groups  50.2,  50.4,  51.1  and  52.7).

Link  to  company  accounts

Turnover from trading activities of purchase and resale may not be isolated in company accounts. It is part
of  net  turnover.

Link  to  other  variables

Part  of  turnover  (12 11 0)

18 14 0

Turnover  from  intermediary  activities  (agents)

Code:

Title:

Definition

The  part  of  turnover  derived  from  the  intermediary  activity  of  the  unit.  This  corresponds  to  any
commissions  on  purchases  and  sales  made  in  the  name  and  on  behalf  of  third  parties,  and  similar
activities.

These  activities  are  classified  in  group  51.1  of  NACE  Rev.  1.

Link  to  company  accounts

Turnover  from  intermediary  activities  may  not  be  isolated  in  company  accounts.  It  is  part  of  net
turnover.

Link  to  other  variables

Part  of  turnover  (12 11 0)

18 15 0

Turnover  from  service  activities

Code:

Title:

Definition

Revenue  from  all  services  rendered  (banking  and  insurance  services,  business  and  personal  services).

This  variable  encompasses  turnover  from  service  activities  resulting  from  a  principal  or  secondary  activity;
some service activities may be performed by industrial units. These activities are classified to Sections H to
K and M to O and also to the maintenance and repair groups 50.2, 50.4 and 52.7 of Section G of NACE
Rev.  1.

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Link  to  company  accounts

Turnover  from  service  activities  may  not  be  isolated  in  company  accounts.  It  is  part  of  net  turnover.

Link  to  other  variables

Part  of  turnover  (12 11 0)

Code:

18 16 0

Title:

Turnover  from  trading  and  intermediary  activities

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  goods  purchased  by  the  unit  in  its  own
name and for its own account and resold in the same condition in which they were purchased, or after such
labelling,  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 maintenance and repair groups 50.2,
50.4  and  52.7).

Link  to  company  accounts

Turnover from trading and intermediary activities may not be isolated in company accounts. It is part of net
turnover.

Link  to  other  variables

Part  of  turnover  (12 11 0)

Code:

18 31 0

Title:

Turnover  from  building

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  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.

Link  to  company  accounts

Turnover  from  building  may  not  be  isolated  in  company  accounts.  It  is  part  of  net  turnover.

Link  to  other  variables

Part  of  turnover  (12 11 0)

Part  of  turnover  from  agriculture,  forestry,  fishing  and  industrial  activities  (18 10 0)

Part  of  turnover  from  industrial  activities  (18 12 0)

Part  of  turnover  from  construction  activities  (18 12 2)

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18 32 0

Turnover  from  civil  engineering

Code:

Title:

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.

Link  to  company  accounts

Turnover  from  civil  engineering  may  not  be  isolated  in  company  accounts.  It  is  part  of  net  turnover.

Link  to  other  variables

Part  of  turnover  (12 11 0)

Part  of  turnover  from  agriculture,  forestry,  fishing  and  industrial  activities  (18 10 0)

Part  of  turnover  from  industrial  activities  (18 12 0)

Part  of  turnover  from  construction  activities  (18 12 2)

20 11 0

Purchases  of  energy  products  (in  value)

Code:

Title:

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.

Link  to  company  accounts

Purchases  of  energy  products  cannot  be  isolated  in  company  accounts.  It  is  part  of  Raw  materials  and
consumables.

Link  to  other  variables

Part  of  total  purchases  of  goods  and  services  (13 11 0)

Code:

Title:

20 21 0  to  20 31 0

Purchases  of  energy  by  product

— Purchases  of  hard  coal

— Purchases  of  coke

— Purchases  of  patent  fuels

— Purchases  of  gasoil

— Purchases  of  heavy  fuel  oil

— Purchases  of  other  petroleum  products

— Purchases  of  natural  gas

— Purchases  of  derived  gas

— Purchases  of  renewable  energy  sources

— Purchases  of  heat

— Purchases  of  electricity.

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Link  to  company  accounts

Purchases  of  individual  energy  products  cannot  be  isolated  in  company  accounts.  They  are  part  of  raw
materials  and  consumables.

Link  to  other  variables

Part  of  purchases  of  energy  products  (20 11 0)

Code:

21 11 0

Title:

Investment  in  equipment  and  plant  for  pollution  control  and  special  anti-pollution  accessories
(mainly  ‘end-of-pipe’  equipment)

Definition

Investment  expenditure  resulting  from  actions  and  activities  which  have  as  their  prime  objective  the
prevention,  reduction  and  elimination  of  pollution  and  any  other  degradation  of  the  environment.

Actions  and  activities  which  have  a  favourable  impact  on  the  environment  but  which  do  not  come  under
environmental protection are excluded. Hence, excluded from this field are activities which, while beneficial
to  the  environment,  primarily  satisfy  technical  needs  or  the  internal  requirements  for  health  and  safety  of
the  enterprise.  This  restriction  applies  in  most  cases  to  recycling  activities  classified  under  NACE  37.00
(recycling). Data collected for this industry should not be added to other NACE headings (see classification
of  environmental  protection  activities  UNECE/Eurostat  DOC/CES/822).

End-of-pipe  equipment  concerns  additional  technical  installations  for  use  in  the  context  of  environmental
control.  These  installations  operate  independently  of  or  are  identifiable  parts  added  to  the  production
facilities,  treat  pollution  that  has  been  generated,  prevent  the  emissions  or  spread  of  the  pollutants  or
measure  the  level  of  pollution  (monitoring).  The  investment  is  calculated  by  the  purchase  price  or
construction cost of the installation, including design and installation costs. The purchase of land necessary
for the installation is also included. Expenditure made principally for the purpose of health and safety inside
the  workplace  should  be  excluded.

These  investments  occur  in  activities  such  as  the  reduction,  prevention  or  treatment  of  waste  and  waste
water,  the  prevention  and  elimination  or  reduction  of  air  emissions,  the  treatment  and  disposal  of
contaminated  soil  and  ground  water,  the  prevention  or  reduction  of  noise  and  vibration  levels,  the
preservation  of  ecological  entities  and  landscapes  as  well  as  the  monitoring  of  the  quality  of  the
environmental  media  and  waste.

Link  to  company  accounts

Investment is not recorded in the balance sheet. However, the additions, disposals 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. Investment in equipment and plant for pollution control and special anti-pollution accessories
is included, but not isolated in the list of tangible assets included in company accounts under fixed assets —
tangible  assets.  The  Advisory  Accounting  Forum  has  proposed  that  this  information  should  be  disclosed.

Link  to  other  variables

Part  of  gross  investment  in  tangible  goods  (15 11 0).

Code:

22 11 0

Title:

Total  intra-mural  R  &  D  expenditure

Definition

Research  and  experimental  development  comprise  creative  work  undertaken  on  a  systematic  basis  in  order
to  increase  the  stock  of  knowledge,  including  knowledge  of  man,  culture  and  society,  and  the  use  of  this
stock  of  knowledge  to  devise  new  applications.

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Intra-mural  expenditures  are  all  expenditures  for  R  &  D  (Research  &  Development)  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:

— expenditures  on  education  and  training,

— expenditures  on  other  scientific  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.),

— expenditures  on  purely  financing  activities  (other  administration  and  other  indirect  supporting  activities

are  included).

Intra-mural expenditures are valued at production cost and include all operating costs including the labour
cost  and  capital  expenditure.

Link  to  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  accounts  under  fixed  assets  —  intangible  assets  —  costs  of
research  and  development.

If under national law it is only partially capitalised or not capitalised at all, the current expenditure is part
of  Raw materials and consumables, other external charges, staff costs and  other operating charges and  the
capital expenditure is included in the movement of the tangible assets included in company accounts under
Fixed  assets  —  tangible  assets.

Code:

22 12 0

Title:

Total  number  of  R  &  D  personnel

Definition

Research  and  experimental  development  comprise  creative  work  undertaken  on  a  systematic  basis  in  order
to  increase  the  stock  of  knowledge,  including  knowledge  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  activities.

Link  to  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 notes on the company accounts (Article 43
(8)).

Link  to  other  variables

Part  of  the  number  of  persons  employed  (16 11 0)

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Code:

Title:

23 11 0

Payments  to  subcontractors

Definition  (for  industry  —  Sections  C  to  E  of  NACE  Rev.  1)

Payments  to  subcontractors  are  payments  made  by  the  unit  to  third  parties  in  return  for  industrial  goods
and  services  supplied  as  part  of  a  subcontracting  relationship  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,  participates  in  the  conception  of  the  product
providing,  even  partially,  technical  specifications  to  the  supplier  enterprise,  also  said  subcontractor,
and/or  provides  it  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  takes  on  the  after-sales  liability  for  the  product.

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.

Link  to  company  accounts

Payments  to  subcontractors  are  not  necessarily  treated  separately  in  company  accounting.  They  may  be
included  in  other  external  charges  and  other  operating  costs.

Link  to  other  variables

Part  of  total  purchases  of  goods  and  services  (13 11 0).

25 11 1

Percentage  share  of  turnover  to  retail  traders

Code:

Title:

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 R wholesaler R retailer R consumer. Note that
the  share  shall  be  calculated  on  the  basis  of  turnover  from  trading  activities  of  purchase  and  resale
(18 13 0).

Link  to  company  accounts

Percentage  share  of  turnover  to  retail  traders  may  be  isolated  in  company  accounts.  It  is  part  of  net
turnover.

Link  to  other  variables

Part  of  Turnover  (12 11 0)

Part  of  Turnover  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  activities  of  purchase  and  resale  (18 13 0).

25 11 2

Percentage  share  of  turnover  to  professional  users  (wholesalers,  others)

Code:

Title:

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
wholesalers  prior  to  the  final  user.

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Note  that  the  share  of  turnover  shall  be  calculated  on  the  basis  of  turnover  from  trading  activities  of
purchase  and  resale  (18 13 0).

Link  to  company  accounts

Percentage share of turnover to professional users may not be isolated in company accounts. It is part of net
turnover.

Link  to  other  variables

Part  of  turnover  (12 11 0)

Part  of  turnover  from  trading  a  activities  of  purchase  and  resale  (18 13 0)

Note: This variable forms together with (25 11 1), retail traders and (25 11 3) final consumers an exhaustive
breakdown  of  turnover  from  trading  activities  of  purchase  and  resale  (18 13 0).

25 11 3

Percentage  share  of  turnover  to  final  consumers

Code:

Title:

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).

Link  to  company  accounts

Percentage share of turnover to final consumers may not be isolated in company accounts. It is part of net
turnover.

Link  to  other  variables

Part  of  turnover  (12 11 0)

Part  of  turnover  from  trading  activities  of  purchase  and  resale  (18 13 0)

Note:  This  variable  forms  together  with  (25 11 1),  retail  traders  and  (25 11 2)  professional  users  an
exhaustive  breakdown  of  turnover  from  trading  activities  of  purchase  and  resale  (18 13 0).

25 21 1

Percentage  share  of  purchases  from  wholesalers  and  purchasing  groups

Code:

Title:

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).

Link  to  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  and  other  operating
charges.

Link  to  other  variables

Part  of  total  purchases  of  goods  and  services  (13 11 0).

Part  of  purchases  of  goods  and  services  purchased  for  resale  in  the  same  condition  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  retailers  and  purchases  of  used  goods  from  professional/private  users.

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25 21 2

Percentage  share  of  purchases  from  producers

Code:

Title:

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).

Link  to  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.

Link  to  other  variables

Part  of  total  purchases  of  goods  and  services  (13 11 0).

Part  of  purchases  of  goods  and  services  purchased  for  resale  in  the  same  condition  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  retailers  and  purchases  of  used  goods  from  professional/private  users.