CELEX: 51998EC2700
Language: en
Date: 2008-09-23
Title: Draft Commission Regulation (EC) No …/.. of […] concerning the definitions of characteristics for structural business statistics (Codified version)

EN

|[pic]                     |COMMISSION OF THE EUROPEAN COMMUNITIES                                                                           |

                                        Brussels,
                                        C

                                                                      Draft

                                                        COMMISSION REGULATION (EC) No …/..

                                                                      of […]

                                 concerning the definitions of characteristics for structural business statistics

                                                                (Codified version)

                                            ê 2700/98

                                                                      Draft

                                                        COMMISSION REGULATION (EC) No …/..

                                                                      of […]

                                 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:

                                            ê .

   1) Commission Regulation (EC) No 2700/98  of  17  December  1998  concerning  the  definitions  of  characteristics  for  structural  business
      statistics[2] has been substantially amended several times[3]. In the interests of clarity and rationality the said  Regulation  should  be
      codified.

                                            ê 2700/98 Recital 1 (adapted)

   2) 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.

                                            ê 2700/98 Recital 2

   3) It is necessary to implement a set of definitions for the structural business statistics characteristics.

                                            ê 2700/98 Recital 3 (adapted)

   4) The measures Ö provided for in this Regulation Õ are in accordance with the opinion of the Statistical Programme Committee,

                                            ê 2700/98 (adapted)

HAS ADOPTED THIS REGULATION:

                                                                    Article 1

The characteristics referred to in Article 4 of Regulation (EC, Euratom) No 58/97 are defined in Annex Ö I Õ to this Regulation.

In those 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[4].

                                                                    Article 2

Member States shall apply the definitions Ö set out in Annex I Õ for the data concerning the 1999 reference year and subsequent years.

                                            ê 

                                                                    Article 3

Regulation (EC) No 2700/98 is repealed.

References to the repealed Regulation shall be construed as references to this Regulation and shall be read in accordance  with  the  correlation
table in Annex III.

                                            ê 2700/98 (adapted)

                                                                    Article 4

This Regulation shall enter into force on the Ö twentieth Õ day following Ö that of Õ its publication in the Official  Journal  of  the  European
Union .

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

Done at Brussels, […]

      For the Commission
      […]
      Member of the Commission

                                            ê 2700/98 (adapted)

                                                                   ANNEX Ö I Õ

                                                          DEFINITIONS OF CHARACTERISTICS

|Code:         |11 11 0                                                                                                                     |
|Title:        |Number of enterprises                                                                                                       |

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.

                                            ê 1670/2003 Art. 1 and Annex I

For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom) No 58/97 this characteristic shall also  comprise  pension  funds
that do not employ personnel. It shall also include pension funds which are not established as legal entities and which are  managed  by  pension
fund management companies, insurance enterprises or other financial institutions (without however being covered by the annual accounts  of  these
institutions). This characteristic shall however not include the  number  of  pension  funds  which  are  not  established  separately  from  the
sponsoring undertaking or trade (i.e. the non-autonomous pension funds or the book reserve system normally managed as an  ancillary  activity  by
the employer).

                                            ê 2700/98

|Code:         |11 12 0                                                                                                                     |
|Title:        |Number of births of enterprises                                                                                             |

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 restriction 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).

|Code:         |11 13 0                                                                                                                     |
|Title:        |Number of deaths of enterprises                                                                                             |

Definition

A count of the number of deaths of enterprises registered to the population concerned in the business register  corrected  for  errors.  A  death
amounts to the dissolution of a combination of production factors with the restriction that no other  enterprises  are  involved  in  the  event.
Deaths do not include exits from the population due to mergers, take-overs, break-ups or restructuring of a  set  of  enterprises.  It  does  not
include exits from a sub-population resulting only from a change of activity.

|Code:         |11 21 0                                                                                                                     |
|Title:        |Number of local units                                                                                                       |

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.

|Code:         |11 31 0                                                                                                                     |
|Title:        |Number of kind-of-activity units                                                                                            |

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.

|Code:         |12 11 0                                                                                                                     |
|Title:        |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.

                                            ê 1670/2003 Art. 1 and Annex I (adapted)

For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom) No 58/97, the  corresponding  title  of  this  characteristic  is
‘Gross premiums written’. This characteristic is defined in Article 35 of Ö Council Õ Directive 91/674/EEC Ö [5] Õ .

For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom) No 58/97, the  corresponding  title  of  this  characteristic  is
‘Total pension contributions’. This characteristic shall comprise all pension contributions due during the financial year in respect  of  pension
contracts, such as all mandatory contributions, other regular  contributions,  voluntary  additional  contributions,  incoming  transfers,  other
contributions.

                                            ê 2700/98

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).

                                            ê 1670/2003 Art. 1 and Annex I

For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom) No 58/97, ‘Gross premiums written’  (12 11 0)  is  calculated  as
follows:

Gross direct premiums written (12 11 1),

+ Gross reinsurance premiums accepted, written premiums (12 11 2).

‘Gross premiums written’ is used in the calculation of ‘Gross premiums earned’ (32 11 0) and other aggregates and balances.

For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom) No 58/97, ‘Turnover’ (Total pension contributions) is  calculated
as follows:

Pension contributions receivable from members (48 00 1),

+ Pension contributions receivable from employers (48 00 2),

+ Incoming transfers (48 00 3),

+ Other pension contributions (48 00 4);

or:

Pension contributions to defined benefit schemes (48 00 5),

+ Pension contributions to defined contribution schemes (48 00 6),

+ Pension contributions to hybrid schemes (48 00 7).

                                            ê 2700/98

|Code:         |12 12 0                                                                                                                   |
|Title:        |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 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.

                                            ê 1670/2003 Art. 1 and Annex I

For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom) No 58/97, the production  value  is  defined  as  gross  premiums
earned, plus total portfolio investment income, plus other services produced, minus gross claims incurred, excluding claims management  expenses,
plus capital gains and provisions.

For the enterprises defined in section 3 of Annex 6 to Regulation (EC, Euratom) No 58/97, the production value is defined as interest  receivable
and similar income, less interest payable and similar charges, plus commissions receivable, plus income  from  shares  and  other  variable-yield
securities, plus net profit or net loss on financial operations, plus other operating income.

For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom) No 58/97, the  production  value  is  defined  as  turnover  less
insurance premiums payable, plus investment income, plus other income, plus insurance claims receivable,  less  total  expenditure  on  pensions,
less net change in technical provisions.

For the enterprises of the NACE class 65.11, the production value is defined as interest receivable and similar  income,  less  interest  payable
and similar charges, plus commissions receivable, plus income from shares and other variable-yield securities, plus net profit  or  net  loss  on
financial operations, plus other operating income.

                                            ê 2700/98

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.

                                            ê 1670/2003 Art. 1 and Annex I

For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom) No 58/97, the production value is calculated as follows:

For life insurance:

Gross premiums written (12 11 0),

+ Gross change in the provision for unearned premiums (32 11 2),

+ Investment income (32 22 0),

- Value readjustments on investments (32 71 5),

- Gains on the realisation on investments (32 71 6),

- Income from participating interests (32 71 1),

+ ((Total gross technical provisions (37 30 0)  -  Total  net  technical  provisions  (37 30 1))/Total  net  technical  provisions  (37 30 1))  x
(Investment income (32 22 0) - Value readjustments on investments (32 71 5) - Gains on the realisation of investments  (32 71 6)  -  Income  from
participating interests (32 71 1)),

+ Other technical income, net amount (32 16 1),

+ Other income (32 46 0),

- Gross claims payments (32 13 1),

- Gross change in the provision for outstanding claims (32 13 4),

+ External and internal claims management expenses (32 61 5),

+ Gains on the realisation on investments (32 71 6),

+ Unrealised gains on investments (32 23 0),

- Losses on the realisation on investments (32 72 3),

- Unrealised losses on investments (32 28 0),

- Gross change in life insurance provision (32 25 0),

- Bonuses and rebates, net amount (32 16 3),

- Change in fund for future appropriations (part of 32 29 0),

- Net changes in other technical provisions, not shown under other headings (32 16 2).

For non-life insurance and reinsurance:

Gross premiums written (12 11 0),

+ Gross change in the provision for unearned premiums (32 11 2),

+ Investment income (32 42 0),

- Value readjustments on investments (32 71 5),

- Gains on the realisation on investments (32 71 6),

- Income from participating interests (32 71 1),

+ ((Total gross technical provisions (37 30 0)  -  Total  net  technical  provisions  (37 30 1))/Total  net  technical  provisions  (37 30 1))  x
(Investment income (32 42 0) - Value re-adjustments on investments (32 71 5) - Gains on the realisation of investments (32 71 6)  -  Income  from
participating interests (32 71 1)),

+ Other technical income, net amount (32 16 1),

+ Other income (32 46 0),

- Gross claims payments (32 13 1),

- Gross change in the provision for outstanding claims (32 13 4),

+ External and internal claims management expenses (32 61 5),

+ Gains on the realisation on investments (32 71 6),

- Losses on the realisation on investments (32 72 3),

- Bonuses and rebates, net amount (32 16 3),

- Change in the equalisation provision (32 15 0),

- Net changes in other technical provisions, not shown under other headings (32 16 2).

For the enterprises defined in section 3 of Annex 6 to Regulation (EC, Euratom) No 58/97, the production value is calculated as:

Interest receivable and similar income (42 11 0),

- Interest payable and similar charges (42 12 0),

+ Commissions receivable (42 14 0),

+ Income from shares and other variable-yield securities (42 13 1),

+ Net profit or net loss on financial operations (42 20 0),

+ Other operating income (42 31 0).

For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom) No 58/97, the production value is calculated as:

Turnover (12 11 0),

- Insurance premiums payable (48 05 0),

+ Investment income (48 01 0),

+ Other income (48 02 2),

+ Insurance claims receivable (48 02 1),

- Total expenditure on pensions (48 03 0),

- Net change in technical provisions (48 04 0).

                                            ê 2700/98

|Code:         |12 13 0                                                                                                                   |
|Title:        |Gross margin on goods for resale                                                                                          |

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.

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).

|Code:         |12 15 0                                                                                                                     |
|Title:        |Value-added at factor cost                                                                                                  |

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.

                                            ê 1670/2003 Art. 1 and Annex I

For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom)  No 58/97,  the  value  added  at  factor  costs  is  defined  as
production value, minus gross value of reinsurance services received, minus other intermediate consumption.

For the enterprises defined in section 3 of Annex 6 to Regulation (EC, Euratom)  No 58/97,  the  value  added  at  factor  costs  is  defined  as
production value, less total purchases of goods and services.

For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom)  No 58/97,  the  value  added  at  factor  costs  is  defined  as
production value, less total purchases of goods and services.

For the enterprises of the NACE class 65.11, the value added at factor costs is defined as production value less total  purchases  of  goods  and
services.

                                            ê 2700/98

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,

     – 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.

                                            ê 1670/2003 Art. 1 and Annex I

For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom) No 58/97, the value added at factor cost is calculated as:

Production value (12 12 0),

- Intermediate consumption (13 11 0).

For the enterprises defined in section 3 of Annex 6 to Regulation (EC, Euratom) No 58/97, the value added at factor cost is calculated follows:

Production value (12 12 0),

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

For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom) No 58/97, the value added at factor cost is calculated follows:

Production value (12 12 0),

- Intermediate consumption (= total purchases of goods and services (13 11 0)).

                                            ê 2700/98

|Code:         |12 17 0                                                                                                                     |
|Title:        |Gross operating surplus                                                                                                     |

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).

|Code:         |13 11 0                                                                                                                     |
|Title:        |Total purchases of goods and services                                                                                       |

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 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.

                                            ê 1670/2003 Art. 1 and Annex I

For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom) No 58/97, the total purchases of goods and  services  is  defined
as the gross value of reinsurance services received plus other intermediate consumption.

For the enterprises defined in section 3 of Annex 6 to Regulation (EC, Euratom) No 58/97, the total purchases of goods and  services  is  defined
as commissions payable, plus other administrative expenses, plus other operating charges.

                                            ê 2700/98

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).

                                            ê 1670/2003 Art. 1 and Annex I

For the enterprises defined in section 3 of Annex 5 to Regulation (EC, Euratom) No 58/97, intermediate consumption is calculated as:

For life insurance:

Reinsurance balance (32 18 0),

+ ((Total gross technical provisions (37 30 0)  -  Total  net  technical  provisions  (37 30 1))/Total  net  technical  provisions  (37 30 1))  x
(Investment income (32 22 0) - Value readjustments on investments (32 71 5) - Gains on the realisation of investments  (32 71 6)  -  Income  from
participating interests (32 71 1)),

+ Commissions (32 61 1),

+ Other external expenditure on goods and services (32 61 4 - depreciation on fixed assets for own use).

For non-life insurance and reinsurance:

Reinsurance balance (32 18 0),

+ ((Total gross technical provisions (37 30 0)  -  Total  net  technical  provisions  (37 30 1))/Total  net  technical  provisions  (37 30 1))  x
(Investment income (32 42 0) - Value readjustments on investments (32 71 5) - Gains on the realisation of investments  (32 71 6)  -  Income  from
participating interests (32 71 1)),

+ Commissions (32 61 1),

+ Other external expenditure on goods and services (32 61 4 - depreciation on fixed assets for own use).

For the enterprises defined in section 3 of Annex 6 to Regulation (EC, Euratom) No 58/97, intermediate consumption is calculated as:

Commissions payable (42 15 0),

+ Other administrative expenses (42 32 2),

+ Other operating charges (42 33 0).

For the enterprises defined in section 3 of Annex 7 to Regulation (EC, Euratom) No 58/97, the variable ‘Total purchases of  goods  and  services’
(13 11 0) is used in the calculation of the variable ‘Total operational expenses’ (48 06 0).

                                            ê 2700/98

|Code:        |13 12 0                                                                                                                     |
|Title:       |Purchases of goods and services purchased for resale in the same condition as received                                      |

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.

|Code:         |13 13 1                                                                                                                     |
|Title:        |Payments for agency workers                                                                                                 |

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).

|Code:         |13 21 0                                                                                                                     |
|Title:        |Change in stocks of goods and services                                                                                      |

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.

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.

|Code:        |13 21 1                                                                                                                     |
|Title:       |Change in stocks of goods and services purchased for resale in the same condition as received                               |

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.

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).

|Code:        |13 21 3                                                                                                                    |
|Title:       |Change in stocks of finished products and work in progress manufactured by the unit                                        |

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:         |13 31 0                                                                                                                     |
|Title:        |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.

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:         |13 32 0                                                                                                                     |
|Title:        |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).

|Code:         |13 33 0                                                                                                                     |
|Title:        |Social security costs                                                                                                       |

Definition

Employers' social security costs correspond to an amount equal to the value of the social contributions incurred by employers in order to  secure
for their employees the entitlement to social benefits.

Social security costs for the employer include the employer's social  security  contributions  to  schemes  for  retirement  pensions,  sickness,
maternity, disability, unemployment, occupational accidents and diseases, family allowances as well as other schemes.

Included are the costs for all employees including homeworkers and apprentices.

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

|Code:         |13 41 0                                                                                                                     |
|Title:        |Operating costs linked to buildings and equipment                                                                           |

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).

|Code:         |13 41 1                                                                                                                     |
|Title:        |Payments for long-term rental and operational leasing of goods                                                              |

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.

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:         |13 42 0                                                                                                                     |
|Title:        |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).

|Code:         |13 43 0                                                                                                                     |
|Title:        |Other operating costs                                                                                                       |

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).

|Code:         |15 11 0                                                                                                                     |
|Title:        |Gross investment in tangible goods                                                                                          |

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.

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.

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).

|Code:         |15 13 0                                                                                                                     |
|Title:        |Gross investment in existing buildings and structures                                                                       |

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).

|Code:         |15 14 0                                                                                                                     |
|Title:        |Gross investment in construction and alteration of buildings                                                                |

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.

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 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.

|Code:         |16 13 0                                                                                                                     |
|Title:        |Number of employees                                                                                                         |

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)

|Code:         |16 13 1                                                                                                                     |
|Title:        |Number of part-time employees                                                                                               |

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.

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 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.

|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

     – 10 000 m2 and more

Link to other variables

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

|Code:         |17 33 1                                                                                                                     |
|Title:        |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.

|Code:         |17 34 0                                                                                                                     |
|Title:        |Number of fixed market stands and/or stalls                                                                                 |

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.

|Code:         |18 10 0                                                                                                                     |
|Title:        |Turnover from agriculture, forestry, fishing and industrial activities                                                      |

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)

                                            ê 1614/2002 Art. 2 and Annex II pt. 3

|Code:         |18 11 0                                                                                                                     |
|Title:        |Turnover from the principal activity at the NACE Rev. 1 three-digit level.                                                  |

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 Council Regulation (EEC) No 696/93 of 15 March 1993 on the statistical units for the observation and analysis of  the  production  system
in the Community[6].

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 three-digit level cannot be isolated in company accounts. It is part of net turnover.

Link to other variables

Part of turnover (12 11 0)

                                            ê 2700/98

|Code:         |18 12 0                                                                                                                     |
|Title:        |Turnover from industrial activities                                                                                         |

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)

|Code:         |18 12 1                                                                                                                     |
|Title:        |Turnover from industrial activities excluding construction                                                                  |

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)

|Code:         |18 12 2                                                                                                                     |
|Title:        |Turnover from construction activities                                                                                       |

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.

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)

|Code:         |18 15 0                                                                                                                     |
|Title:        |Turnover from service activities                                                                                            |

Definition

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

This variable encompasses turnover from service activities resulting from a 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.

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)

|Code:         |18 32 0                                                                                                                     |
|Title:        |Turnover from civil engineering                                                                                             |

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)

|Code:         |20 11 0                                                                                                                     |
|Title:        |Purchases of energy products (in value)                                                                                     |

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)

                                            ê 1614/2002 Art. 2 and Annex II pt. 1

|Code:         |20 11 1                                                                                                                     |
|Title:        |Purchases of solid fuels (in value)                                                                                         |

Purchases of solid fuels during the reference period should be included in this variable only if they are purchased to be  used  as  fuel.  Solid
fuels purchased as raw material or for resale without transformation should be excluded.

Solid fuels consist of coking coal, steam coal (other bituminous coal and anthracite), sub-bituminous  coal,  coke  oven  coke,  gas-works  coke,
brown coal coke, tar, coal patent fuels and other solid fuels.

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:         |20 11 2                                                                                                                     |
|Title:        |Purchases of petroleum products (in value)                                                                                  |

Purchases of petroleum products during the reference period should be included in this variable only if they are purchased to be  used  as  fuel.
Petroleum products purchased as raw material or for resale without transformation should be excluded.

Petroleum products include the following products:

Motor gasoline (leaded and unleaded),

Transport diesel,

Heating and other gasoil,

Fuel oil (with high or low sulphur content),

Liquified petroleum gas (LPG),

Other petroleum products such as aviation gasoline, gasoline type jet fuel, kerosene type jet fuel, others.

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:         |20 11 3                                                                                                                     |
|Title:        |Purchases of natural and derived gas (in value)                                                                             |

Purchases of natural and derived gas during the reference period should be included in this variable only if they are purchased  to  be  used  as
fuel. Natural and derived gas purchased as raw material or for resale without transformation should be excluded.

Natural gas is a methane-rich combustible gas coming from natural fields. Derived gases consist of coke-oven  gas  (=  gas  recovered  as  a  by-
product of coke ovens), blast furnace gas (gas recovered as a by-product of blast furnaces) and gasworks gas (= gas  obtained  by  carbonisation,
cracking, reforming, gasification or simple mixing of gas and/or air in gasworks) and oxygen steel furnace gas (gas recovered as a by-product  of
the production of steel in an oxygen furnace).

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:         |20 11 4                                                                                                                     |
|Title:        |Purchases of renewable energy sources (in value)                                                                            |

Purchases of renewable energy sources during the reference period should be included in this variable only if these are purchased to be  used  as
fuel. Renewable energy sources purchased as raw material or for resale without transformation should be excluded.

Renewable energy sources include biomass, biomass waste or other renewable energy sources.

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:         |20 11 5                                                                                                                     |
|Title:        |Purchases of heat (in value)                                                                                                |

Heat is produced by heating plants using fossil fuels, biomass, wastes or by Combined Heat and Power plants (CHP) or from geothermal fields.

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:         |20 11 6                                                                                                                     |
|Title:        |Purchases of electricity (in value)                                                                                         |

Electricity is a secondary energy source obtained from fossil fuels, nuclear power, biomass, wastes and other renewable energy sources  (such  as
hydropower, wind, solar or geothermal energy sources).

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)

                                            ê 1670/2003 Art. 2 and Annex II

|Code:        |21 11 0                                                                                                                     |
|Title:       |Investment in equipment and plant for pollution control and special anti-pollution accessories (mainly ‘end-of-pipe’        |
|             |equipment)                                                                                                                  |

Definition

Capital expenditures for methods, technologies, processes or equipment designed  to  collect  and  remove  pollution  and  pollutants  (e.g.  air
emissions, effluents or solid waste) after their creation, prevent the spread of and measure the level of the pollution and treat and dispose  of
pollutants generated by the operating activity of the company.

It is the sum of expenditure in the environmental domains ‘Protection of ambient air and climate’, ‘Wastewater  management’,  ‘Waste  management’
and ‘Other environmental protection activities’. ‘Other environmental protection  activities’  includes  ‘Protection  and  remediation  of  soil,
groundwater and surface water’, ‘Noise and vibration abatement’, ‘Protection of biodiversity  and  landscape’,  ‘Protection  against  radiation’,
‘Research and development’, ‘General environmental administration and management’, ‘Education, training and information’, ‘Activities leading  to
indivisible expenditure’ and ‘Activities not elsewhere classified’.

Included are:

     – investments in distinct, identifiable components supplementing existing equipment, which are implemented  at  the  end  of  or  completely
       outside the production line (‘end-of-pipe’ equipment),

     – investments in equipment (e.g. filters or separate cleaning steps) which compose or extract pollutants within the  production  line,  when
       the removal of these added facilities would not affect in the main the functioning of the production line.

The main purpose or function of this capital expenditure is environmental protection and the total expenditure for these should be reported.

The expenditure should be reported gross of any cost offsets resulting from the generation and sale of marketable by-products, savings  made,  or
subsidies received.

Purchased goods are valued at the purchase price excluding deductible VAT and other deductible taxes directly linked to turnover.

Excluded are:

     – actions and activities beneficial to the environment that would have been taken regardless  of  environmental  protection  considerations,
       including measures that primarily aim at health and safety of the workplace and production security,

     – measures to reduce pollution when the products are used or scrapped (environmental adaptation of products),  unless  environmental  policy
       and regulation expands the legal responsibility of the producer to cover also the pollution generated by the products when  used,  or  for
       taking care of the products when they become waste,

     – resource use and saving activities (e.g. water supply or  the  saving  of  energy  or  raw  materials),  unless  the  primary  purpose  is
       environmental protection: e.g. when these activities aim at implementing national  or  international  environmental  policy  and  are  not
       undertaken for cost-saving reasons.

Link to company accounts

The definition is based on the accounting standards applied by the company in its bookkeeping, in compliance with EU accounting  standards:  i.e.
these are expenditures that qualify for recognition as an asset.

Link to other variables

‘Total environmental protection investments’ is the sum of the variables 21 11 0 and 21 12 0. ‘Total  environmental  protection  expenditure’  is
the sum of the variables 21 11 0, 21 12 0 and 21 14 0.

Part of:

15 11 0 Gross investment in tangible goods

15 31 0 Value of tangible goods acquired through financial leasing.

|Code:        |21 12 0                                                                                                                     |
|Title:       |Investment in equipment and plant linked to cleaner technologies (‘integrated technology’)                                  |

Definition

Capital expenditures for new or adaptation of existing methods, technologies, processes, equipment (or parts  thereof)  designed  to  prevent  or
reduce the amount of pollution created at the source (e.g. air emissions, effluents or solid waste), thereby reducing the  environmental  impacts
associated with the release of pollutants and/or with polluting activities.

It is the sum of expenditure in the environmental domains ‘Protection of ambient air and climate’, ‘Wastewater  management’,  ‘Waste  management’
and ‘Other environmental protection activities’. ‘Other environmental protection  activities’  includes  ‘Protection  and  remediation  of  soil,
groundwater and surface water’, ‘Noise and vibration abatement’, ‘Protection of biodiversity  and  landscape’,  ‘Protection  against  radiation’,
‘Research and development’, ‘General environmental administration and management’, ‘Education, training and information’, ‘Activities leading  to
indivisible expenditure’ and ‘Activities not elsewhere classified’.

The expenditure should be reported gross of any cost offsets resulting from the generation and sale of marketable by-products, savings  made,  or
subsidies received.

Purchased goods are valued at the purchase price excluding deductible VAT and other deductible taxes directly linked to turnover.

Included are:

     – capital expenditures that involve distinct,  separately  identifiable  (environmental  parts  of)  methods,  processes,  technologies  and
       equipment. Their main purpose or function is environmental protection by definition and the total expenditure of the (environmental  parts
       of) methods, processes, technologies and equipment should be reported,

     – capital expenditures for methods, processes,  technologies  and  equipment  that  are  integrated  with  the  overall  operating  activity
       (production process/installation) in a way that makes it difficult to identify separately the  pollution-prevention  component.  In  these
       cases (‘integrated measures’), only the environmental protection fraction of the total investment should be reported.

      This fraction corresponds to the additional investment vis-à-vis the capital expenditure that would have been incurred were it not for  the
       environmental protection considerations. Therefore, the alternative for comparison corresponds to the cheapest  alternative  available  to
       the company with similar functions and characteristics, except for those related to environmental protection.

      When the selected option is standard technology and there is no cheaper, less  environmentally  beneficial  alternative  available  to  the
       company, the measure is by definition not an environmental protection activity, and no expenditure should be reported.

Excluded are:

     – actions and activities beneficial to the environment that would have been taken regardless  of  environmental  protection  considerations,
       including measures that primarily aim at health and safety of the workplace and production security,

     – measures to reduce pollution when the products are used or scrapped (environmental adaptation of products),  unless  environmental  policy
       and regulation expands the legal responsibility of the producer to cover also the pollution generated by the products when  used,  or  for
       taking care of the products when they become waste,

     – resource use and saving activities (e.g. water supply or  the  saving  of  energy  or  raw  materials),  unless  the  primary  purpose  is
       environmental protection: e.g. when these activities aim at implementing national  or  international  environmental  policy  and  are  not
       undertaken for cost-saving reasons.

Link to company accounts

The definition is based on the accounting standards applied by the company in its bookkeeping, in compliance with EU accounting  standards:  i.e.
these are expenditures that qualify for recognition as an asset.

Link to other variables

‘Total environmental protection investments’ is the sum of the variables 21 11 0 and 21 12 0. ‘Total  environmental  protection  expenditure’  is
the sum of the variables 21 11 0, 21 12 0 and 21 14 0.

Part of:

15 11 0 Gross investment in tangible goods

15 31 0 Value of tangible goods acquired through financial leasing.

|Code:         |21 14 0                                                                                                                     |
|Title:        |Total current expenditure on environmental protection                                                                       |

Definition

Total current expenditure on environmental protection is the  expenditure  for  operating  and  maintaining  an  activity,  technology,  process,
equipment (or parts thereof) designed to prevent, reduce, treat or eliminate pollutants and pollution (e.g. air  emissions,  effluents  or  solid
waste) or any other degradation of the environment resulting from the operating activity of the company.

It is the sum of expenditure in the environmental domains ‘Protection of ambient air and climate’, ‘Wastewater  management’,  ‘Waste  management’
and ‘Other environmental protection activities’. ‘Other environmental protection  activities’  includes  ‘Protection  and  remediation  of  soil,
groundwater and surface water’, ‘Noise and vibration abatement’, ‘Protection of biodiversity  and  landscape’,  ‘Protection  against  radiation’,
‘Research and development’, ‘General environmental administration and management’, ‘Education, training and information’, ‘Activities leading  to
indivisible expenditure’ and ‘Activities not elsewhere classified’.

Total current expenditure on environmental protection should be reported gross of any cost offsets resulting from  the  sale  of  marketable  by-
products, savings or subsidies received.

Current expenditure is the sum of ‘in-house expenditure’ and ‘purchases of environmental protection services’:

     – in-house expenditure includes all current expenditure on environmental protection except purchases of  environmental  protection  services
       from other units. It is the sum of labour costs, use of raw materials and consumables and payments for operational  leasing,  for  example
       related to operation and maintenance of environmental equipment, measurement and monitoring of pollution levels, environmental management,
       information and education, environmental research and development,

     – purchases of environmental protection services include all fees,  charges  and  similar  payments  to  other  organisations  (outside  the
       reporting unit), public or private, in exchange of environmental protection services related to the environmental impacts of the operating
       activity of the company. For example, payments for collection and treatment of waste and wastewater, payments related  to  decontamination
       of soil, regulatory charges, payments to environmental consultants related to e.g. environmental information, certification  or  operation
       of environmental equipment.

Purchased goods and services are valued at the purchase price excluding deductible VAT and other deductible taxes directly  linked  to  turnover.
Labour expenditure include the gross wages and salaries including employers' charges and social security costs, but excluding general overhead.

Excluded are:

     – actions and activities beneficial to the environment that would have been taken regardless  of  environmental  protection  considerations,
       including measures that primarily aim at health and safety of the workplace and production security,

     – measures to reduce pollution when the products are used or scrapped (environmental adaptation of products),  unless  environmental  policy
       and regulation expands the legal responsibility of the producer to cover also the pollution generated by the products when  used,  or  for
       taking care of the products when they become waste,

     – resource use and saving activities (e.g. water supply or  the  saving  of  energy  or  raw  materials),  unless  the  primary  purpose  is
       environmental protection: e.g. when these activities aim at implementing national  or  international  environmental  policy  and  are  not
       undertaken for cost-saving reasons,

     – payments of taxes, fees or charges by the reporting unit that are not linked  to  purchasing  an  environmental  service  related  to  the
       environmental impacts of the operating activity of the company, even  if  the  government  authorities  have  earmarked  the  revenue  for
       financing environmental protection activities (e.g. taxes on pollution),

     – calculated-cost items such as depreciation of environmental equipment, capital loss due to forced replacement or general overhead,

     – loss of income, compensatory charges, fines, penalties and similar which do not relate to an environmental protection activity.

Link to company accounts

The definition of current expenditure is based on the accounting standards applied by the company in  its  bookkeeping,  in  compliance  with  EU
accounting standards: i.e. current expenditure includes all expenditure that is not capitalised but charged to the profit-and-loss account.

It is the sum of purchase of raw materials and consumables, labour costs, public fees and charges, expenses for external services and rental  and
leasing charges for environmental protection activities.

Link to other variables

‘Total environmental protection investments’ is the sum of the variables 21 11 0 and 21 12 0. ‘Total  environmental  protection  expenditure’  is
the sum of the variables 21 11 0, 21 12 0 and 21 14 0.

Part of:

13 11 0 Total purchase of goods and services

13 31 0 Personnel costs.

                                            ê 2700/98

|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.

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)

|Code:         |23 11 0                                                                                                                     |
|Title:        |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).

|Code:         |25 11 1                                                                                                                     |
|Title:        |Percentage share of turnover to retail traders                                                                              |

Definition

The share of wholesale enterprises' turnover (Division 51 of NACE Rev. 1) accounted  for  by  retail  traders.  This  share  corresponds  to  the
traditional scheme producer → wholesaler → retailer → consumer. Note that the share shall be calculated on the basis  of  turnover  from  trading
activities of purchase and resale (18 13 0).

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).

|Code:         |25 11 2                                                                                                                     |
|Title:        |Percentage share of turnover to professional users (wholesalers, others)                                                    |

Definition

The share of wholesale enterprise' turnover (Division 51 of  NACE  Rev.  1)  accounted  for  by  professional  users  (businesses,  institutions,
government bodies, etc.) and wholesalers. Sales to retailers and final consumers are excluded. The wholesalers may form  a  complex  distribution
network involving several wholesalers prior to the final user.

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

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).

|Code:         |25 11 3                                                                                                                     |
|Title:        |Percentage share of turnover to final consumers                                                                             |

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).

|Code:         |25 21 1                                                                                                                     |
|Title:        |Percentage share of purchases from wholesalers and purchasing groups                                                        |

Definition

This characteristic, as well as describing the supply network of retail trade, is an approximation made by the retailer to assess  the  share  of
direct purchases from wholesalers and through purchasing groups.

Note that the share of purchases shall be calculated on the basis of purchases of goods and services purchased for resale in the  same  condition
as received (13 12 0).

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.

|Code:         |25 21 2                                                                                                                     |
|Title:        |Percentage share of purchases from producers                                                                                |

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.

                                                                 _______________

                                            é

                                                                     ANNEX II

                                                Repealed Regulation with its successive amendments

|Commission Regulation (EC) No 2700/98                                        |(OJ L 344, 18.12.1998, p. 49)                             |
|Commission Regulation (EC) No 1614/2002                                         |(OJ L 244, 12.9.2002, p. 7)                     |
|Commission Regulation (EC) No 1670/2003                                         |(OJ L 244, 29.9.2003, p. 74)                    |

                                                                  _____________

                                                                    ANNEX III

                                                                Correlation Table

|Regulation (EC) No 2700/98                                           |This Regulation                                                   |
|Article 1(1)                                                         |Article 1, first paragraph                                        |
|Article 1(2)                                                         |Article 1, second paragraph                                       |
|Article 2(1)                                                         |Article 2                                                         |
|Article 2(2)                                                         |______                                                            |
|______                                                               |Article 3                                                         |
|Article 3                                                            |Article 4                                                         |
|Annex                                                                |Annex I                                                           |
|______                                                               |Annex II                                                          |
|______                                                               |Annex III                                                         |

                                                                  _____________

                                                             -----------------------
[1]   OJ L 14, 17.1.1997, p. 1. Regulation as last amended by Regulation (EC) No 1882/2003 of the European Parliament and of the  Council  (OJ  L
      284, 31.10.2003, p. 1).
[2]   OJ L 344, 18.12.1998, p. 49. Regulation as last amended by Regulation (EC) No 1670/2003 (OJ L 244, 29.9.2003, p. 74).
[3]   See Annex II.
[4]   OJ L 222, 14.8.1978, p. 11.
[5]   OJ L 374 , 31.12.1991, p. 7.
[6]   OJ L 76, 30.3.1993, p. 1.