Commission Implementing Regulation (EU) 2020/1197 of 30 July 2020 laying down technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics repealing 10 legal acts in the field of business statistics (Text with EEA relevance)

Part C. Classifications

A	B
1.	Transactions involving actual change of ownership with financial compensation	1.	Outright sale/purchase except direct trade with/by private consumers
2.	Direct trade with/by private consumers (incl. distance sale)
2.	Return and replacement of goods free of charge after registration of the original transaction	1.	Return of goods
2.	Replacement for returned goods
3.	Replacement (e.g. under warranty) for goods not being returned
3.	Transactions involving intended change of ownership or change of ownership without financial compensation	1.	Movements to/from a warehouse (excluding call-off and consignment stock)
2.	Supply for sale on approval or after trial (including call-off and consignment stock)
3.	Financial leasing
4.	Transactions involving transfer of ownership without financial compensation
4.	Transactions with a view to processing under contract (not involving change of ownership)	1.	Goods expected to return to the initial Member State/country of export
2.	Goods not expected to return to the initial Member State/country of export
5.	Transactions following processing under contract (not involving change of ownership)	1.	Goods returning to the initial Member State/country of export
2.	Goods not returning to the initial Member State/country of export
6.	Particular transactions recorded for national purposes
7.	Transactions with a view to/following customs clearance (not involving change of ownership, related to goods in quasi-import or export)	1.	Release of goods for free circulation in a Member State with a subsequent export to another Member State
2.	Transportation of goods from one Member State to another Member State to place the goods under the export procedure
8.	Transactions involving the supply of building materials and technical equipment under a general construction or civil engineering contract for which no separate invoicing of the goods is required and an invoice for the total contract is issued
9.	Other transactions which cannot be classified under other codes	1.	Hire, loan, and operational leasing longer than 24 months
9.	Other

Mode of transport at the border; internal mode of transport
Sea transport Rail transport Road transport Air transport Postal consignment Fixed transport installations Inland waterway transport Own propulsion
Container
Goods are not transported in containers when crossing the border of the statistical territory of the European Union. Goods are transported in containers when crossing the border of the statistical territory of the European Union.

Statistical procedure
Normal imports or exports Imports or exports covered by the customs procedure inward processing Imports or exports covered by the customs procedure outward processing Imports or exports not recorded from customs declarations

ANNEX II

The MIGs and special aggregates included in the activity breakdowns in the tables included in Part B of Annex I to this Regulation have to be calculated in the following way.

A. MAIN INDUSTRIAL GROUPINGS (MIGS)

1. The definition of main industrial groupings

The allocation of NACE groups and divisions to the Main Industrial Groupings (MIGs) is defined in the following table.

For the variables 130101, 130102 and 130103, the allocation of CPA groups to MIGs approximations can be derived based on the allocation of NACE groups.

NACE description	Aggregate classification
07 Mining of metal ores	Intermediate goods
08 Other mining and quarrying	Intermediate goods
09 Mining support service activities	Intermediate goods
10.6 Manufacture of grain mill products, starches and starch products	Intermediate goods
10.9 Manufacture of prepared animal feeds	Intermediate goods
13.1 Preparation and spinning of textile fibres	Intermediate goods
13.2 Weaving of textiles	Intermediate goods
13.3 Finishing of textiles	Intermediate goods
16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials	Intermediate goods
17 Manufacture of paper and paper products	Intermediate goods
20.1 Manufacture of basic chemicals, fertilisers and nitrogen compounds, plastics and synthetic rubber in primary forms	Intermediate goods
20.2 Manufacture of pesticides, disinfectants and other agrochemical products	Intermediate goods
20.3 Manufacture of paints, varnishes and similar coatings, printing ink and mastics	Intermediate goods
20.5 Manufacture of other chemical products	Intermediate goods
20.6 Manufacture of man-made fibres	Intermediate goods
22 Manufacture of rubber and plastic products	Intermediate goods
23 Manufacture of other non-metallic mineral products	Intermediate goods
24 Manufacture of basic metals	Intermediate goods
25.4 Forging and shaping metal and powder metallurgy	Intermediate goods
25.5 Treatment and coating of metals; machining	Intermediate goods
25.6 Manufacture of cutlery, tools and general hardware	Intermediate goods
25.9 Manufacture of other fabricated metal products	Intermediate goods
26.1 Manufacture of electronic components and boards	Intermediate goods
27.1 Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus	Intermediate goods
27.2 Manufacture of batteries and accumulators	Intermediate goods
27.3 Manufacture of wiring and wiring devices	Intermediate goods
27.4 Manufacture of lighting equipment	Intermediate goods
27.9 Manufacture of other electrical equipment	Intermediate goods
05 Mining of coal and lignite	Energy
06 Extraction of crude petroleum and natural gas	Energy
19 Manufacture of coke and refined petroleum products	Energy
35 Electricity, gas, steam and air conditioning supply	Energy
36 Water collection, treatment and supply	Energy
25.1 Manufacture of structural metal products	Capital goods
25.2 Manufacture of tanks, reservoirs and containers of metal	Capital goods
25.3 Manufacture of weapons and ammunition	Capital goods
26.2 Manufacture of computers and peripheral equipment	Capital goods
26.3 Manufacture of communication equipment	Capital goods
26.5 Manufacture of measuring testing instruments, clocks and watches	Capital goods
26.6 Manufacture of irradiation, electromedical and electrotherapeutic equipment	Capital goods
28 Manufacture of machinery and equipment n.e.c.	Capital goods
29 Manufacture of motor vehicles, trailers and semi-trailers	Capital goods
30.1 Building of ships and boats	Capital goods
30.2 Manufacture of railway locomotives and rolling stock	Capital goods
30.3 Manufacture of air and spacecraft and related machinery	Capital goods
30.4 Manufacture of military fighting vehicles	Capital goods
32.5 Manufacture of medical and dental instruments and supplies	Capital goods
33 Repair, maintenance and installation of machinery and equipment	Capital goods
26.4 Manufacture of consumer electronics	Consumer durables
26.7 Manufacture of optical instruments, magnetic and optical media and photographic equipment	Consumer durables
27.5 Manufacture of domestic appliances	Consumer durables
30.9 Manufacture of transport equipment n.e.c.	Consumer durables
31 Manufacture of furniture	Consumer durables
32.1 Manufacture of jewellery, bijouterie and related articles	Consumer durables
32.2 Manufacture of musical instruments	Consumer durables
10.1 Processing and preserving of meat and production of meat products	Consumer non-durables
10.2 Processing and preserving of fish, crustaceans and molluscs	Consumer non-durables
10.3 Processing and preserving of fruit and vegetables	Consumer non-durables
10.4 Manufacture of vegetable and animal oils and fats	Consumer non-durables
10.5 Manufacture of dairy products and edible ice	Consumer non-durables
10.7 Manufacture of bakery and farinaceous products	Consumer non-durables
10.8 Manufacture of other food products	Consumer non-durables
11 Manufacture of beverages	Consumer non-durables
12 Manufacture of tobacco products	Consumer non-durables
13.9 Manufacture of other textiles	Consumer non-durables
14 Manufacture of wearing apparel	Consumer non-durables
15 Manufacture of leather and related products of other materials	Consumer non-durables
18 Printing and reproduction of recorded media	Consumer non-durables
20.4 Manufacture of washing, cleaning and polishing preparations	Consumer non-durables
21 Manufacture of basic pharmaceutical products and pharmaceutical preparations	Consumer non-durables
32.3 Manufacture of sports goods	Consumer non-durables
32.4 Manufacture of games and toys	Consumer non-durables
32.9 Manufacturing n.e.c.	Consumer non-durables

2. Non-availability of data on NACE group level

Member States that do not calculate the statistical data covered by Regulation (EU) 2019/2152 to the level of detail of NACE groups may calculate national weights for the groups within a division in order to do the split-up of the division-based data into groups.

Member States that apply the allocation to Main Industrial Groupings (MIGs) in part or in total on the basis of NACE divisions shall inform Eurostat on the weights used for the split-up into NACE groups.

B. SPECIAL AGGREGATES OF NACE CODES

Special aggregate	NACE positions
Industry, construction and services (except public administration, defence, compulsory social security, activities of households as employers and extra-territorial organisations and bodies)	B + C + D + E + F + G + H + I + J + K + L + M + N + O + Q + R + S + T
Industry, construction and services (except public administration, defence, compulsory social security, activities of membership organisations, activities of households as employers and extra-territorial organisations and bodies)	B + C + D + E + F + G + H + I + J + K + L + M + N + O + Q + R + S + 95 + 96
Business economy	B + C + D + E + F + G + H + I + J + K + L + M + N + O + 95
Non-financial business economy	B + C + D + E + F + G + H + I + J + K + M + N + O + 95
Industry and construction	B + C + D + E + F
Industry	B + C + D + E
ICT total	C261 + C262 + C263 + C264 + G465 + J582 + K61 + K62 + K631 + T951 = ICT manufacturing + ICT services
ICT manufacturing	C261 + C262 + C263 + C264
ICT services	G465 + J582 + K61 + K62 + K631 + T951
Information sector	J581 + J591 + J592 + J60
Computer related services	J582 + K62 + K631
High and medium-high technology manufacturing	C20 + C21 + C253 + C26 + C27 + C28 + C29 + C30 – C301 + C325
High technology manufacturing	C21 + C26 + C303
Medium-high technology manufacturing	C20 + C253 + C27 + C28 + C29 + C30 – C301 – C303 + C325
Low and medium-low technology manufacturing	C10 + C11 + C12 + C13 + C14 + C15 + C16 + C17 + C18 + C19 + C22 + C23 + C24 + C25 – C253 + C301 + C31 + C32 – C325 + C33
Medium-low technology manufacturing	C182 + C19 + C22 + C23 + C24 + C25-C253 + C301 + C33
Low technology manufacturing	C10 + C11 + C12 + C13 + C14 + C15 + C16 + C17 + C18-C182 + C31 + C32-C325
Services	G + H + I + J + K + L + M + N + O + P + Q + R + S + T + U + V
Services (except public administration, defence, compulsory social security, activities of households as employers and extra-territorial organisations and bodies)	G + H + I + J + K + L + M + N + O + Q + R + S + T
Services (except public administration, defence, compulsory social security, activities of membership organisations, households as employers and extra-territorial organisations and bodies)	G + H + I + J + K + L + M + N + O + Q + R + S + 95 + 96
Total knowledge intensive services	H50 + H51 + J58 + J59 + J60 + K61 + K62 + K63 + L64 + L65 + L66 + N69 + N70 + N71 + N72 + N73 + N74 + N75 + O78 + O80 + P84 + Q85 + R86 + R87 + R88 + S90 + S91 + S92 + S93
Knowledge-intensive high technology services	J59 + J60 + K61 + K62 + K63 + N72
Knowledge intensive market services	H50 + H51 + N69 + N70 + N71 + N73 + N74 + O78 + O80
Knowledge intensive financial services	L64 + L65 + L66
Other Knowledge intensive services	J58 + O75 + P84 + Q85 + R86 + R87 + R88 + S90 + S91 + S92 + S93
Knowledge intensive activities – Business industries	B09 + C19 + C21 + C26 + H51 + J58 + J59 + J60 + K61 + K62 + K63 + L64 + L65 + L66 + N69 + N70 + N71 + N72 + N73 + N74 + N75 + O78 + O79 + S90
Knowledge intensive activities	B09 + C19 + C21 + C26 + H51 + J58 + J59 + J60 + K61 + K62 + K63 + L64 + L65 + L66 + N69 + N70 + N71 + N72 + N73 + N74 + N75 + O78 + O79 + P84 + Q85 + Q86 + S90 + S91 + T94 + V99
Tourism industries (total)	H491 + H493 + H501 + H503 + H511 + H5232 + I551 + I552 + I553 + I554 + I561 + I563 + I564 + O771 + O7721 + O7751 + O79
Tourism industries (mainly tourism)	H511 + I551 + I552 + I553 + I554 + O791
Tourism industries (partially tourism)	H491 + H493 + H501 + H503 + H5232 + I561 + I563 + I564 + O771 + O7721 + O7751 + O799
Tourism industries – Transport (total)	H491 + H493 + H501 + H503 + H511 + H5232
Tourism industries – Land transport	H491 + H493 + H5232
Tourism industries – Water transport	H501 + H503
Tourism industries – Accommodation	I551 + I552 + I553 + I554
Tourism industries – Food and beverage (total)	I561 + I563 + I564
Tourism industries – Car and other rental (total)	O771 + O7721 + O7751
Cultural and creative sectors – total	C18 + C3212 + C322 + G4761 + G4762 + G4769 + J5811 + J5812 + J5813 + J5821 + J59 + J60 + N7111 + N741 + N742 + N743 + Q8552 + S90 + S91
Cultural and creative sectors – services	J5811 + J5812 + J5813 + J5821 + J59 + J60 + N7111 + N741 + N742 + N743 + Q8552 + S90 + S91
Activities other than industry and trade	A + F + H + I + J + K + L + M + N + O + P + Q + R + S + T + U + V

C. SPECIAL AGGREGATES OF CPA CODES

Special aggregate	CPA codes
Other CPA products	CPA 41 to 99

ANNEX III

A. EXEMPTIONS ON PROVIDING THE DATA BASED ON THE ECONOMIC SIZE OF THE COUNTRY

1. 1 % rule

The 1 % rule concerns specific variables indicated in Annex I to this Regulation. It is not necessary to compile those variables if the contribution of the Member State for a related indicator (e.g. value added, turnover or number of employees and self-employed persons), or total services volume (imports plus exports of services) in a specific activity (NACE), EBOPS 2010 category or product (CPA) breakdown is less than 1 % of the EU total. The related indicator and the level of the activity (NACE), EBOPS 2010 breakdown or product (CPA) breakdown are specified in Annex I.

2. Rules for grouping countries into small, medium and large countries

Based on the size of a Member State, some statistics for variables as specified in Annex I need not be provided at all or with a lower periodicity or with a later data transmission deadline for small and medium countries as per the following method:

safeguard clause: if a Member State’s share in the EU value added in one of the following NACE sections or defined aggregates corresponds to that of a lower size category (lower than the size category resulting from the overall grouping), the data requirements for that Member State shall correspond to those of the lower size category for the Section (or Sections) in question. This may apply to NACE Sections C (‘Manufacturing’), F (‘Construction’), Section G (‘Trade’), and to the aggregate of Sections H to O (excl. L, ‘Services’);

B. POSSIBILITY TO PROVIDE DATA THAT WILL NOT BE PUBLISHED AT NATIONAL LEVEL AND THAT WILL BE USED FOR CALCULATING EUROPEAN TOTALS ONLY: CONTRIBUTION TO EUROPEAN TOTALS ONLY (CETO)

In order to minimise the burden on businesses and the costs to the national statistical authorities, the Member States may mark data for use as a contribution to European totals only (CETO) for some variables as specified in Annex I to this Regulation. Eurostat shall not publish those data, nor shall Member States mark nationally published data with a CETO flag. The number of statistics that can be marked with a CETO-flag by a Member State differs between small, medium and large countries:

— variables 251001 (Sold production), 251002 (Production under sub-contracted operations) and 251003 (Actual production) where the variable to be used for the grouping is the sold production; — Variables 460101 (imports and acquisition of services), 460201 (exports and provision of services), 240401 (Statistical value of imports by enterprises), 251101 (Statistical value of exports by enterprises), where the variable to be used is the total services trade volume – exports plus imports of services, traded between residents and non-residents – expressed as the sum of variables 240401 (Statistical value of imports by enterprises) and 251101 (Statistical value of exports by enterprises).

— Variables 251001 (Sold production), 251002 (Production under sub-contracted operations) and 251003 (Actual production) where the grouping is to be done on the basis of their share in the EU sold production of CPA divisions (05 to 33) under the scope of the PRODCOM list; — Variables 460101 (imports and acquisition of services), 460201 (exports and provision of services), 240401 (Statistical value of imports by enterprises) and 251101 (Statistical value of exports by enterprises), where the grouping is to be done on the basis of their share in the EU total services trade volume (exports plus imports of services, traded between residents and non-residents – expressed as the sum of variables 240401 (Statistical value of imports by enterprises) and 251101 (Statistical value of exports by enterprises)).

(a) for small countries: all data at NACE class level and no more than 25 % of the data at NACE group level for the activity breakdown; all data at NACE group level except for the total overall size classes for the combined activity and size class breakdowns; no more than 20 % of the data at individual PRODCOM heading level; (b) for medium countries: no more than 25 % of data at NACE class level for the activity breakdown, no more than 25 % of data at NACE group level except for the total overall size classes for the combined activity and size class breakdowns for the size class breakdown at NACE group level; no more than 15 % of data for individual PRODCOM headings. In addition, if, in any of those Member States, the share of a NACE class or of a size class of NACE group is less than 0,1 % of the business economy of the Member State concerned or less than 0,1 % of the total over all individual PRODCOM headings, those data may additionally be sent as CETO-flagged.

C. EUROPEAN SAMPLE SCHEMES

European sample schemes may limit the scope of the data to be transmitted when compiling statistics for variables as specified in Annex I to the Regulation in order to reduce the costs for national statistical systems, to ensure that European data requirements are met and to enable the Commission (Eurostat) to produce credible European estimates for the indicators concerned.

Member States participating in the European sample scheme referred to above shall transmit data to the Commission (Eurostat) for at least the NACE activities and CPA products specified according to the following procedure:

The terms of the European sample schemes set out may be adapted to changes of the base year or of the classification system or to important structural changes in the euro area or the European Union.

Each new member of the euro area or European Union may enter any of the European sample schemes upon joining the euro area or European Union. The Commission, after consultation with the Member State concerned, shall specify the NACE activities and CPA products for which data are to be transmitted according to the above procedure, in order for that Member State to comply with Regulation (EU) 2019/2152 in the framework of the European sample schemes.

D. EXEMPTIONS ON PROVIDING DATA BASED ON THE ECONOMIC SIZE OF THE ACTIVITY INSIDE THE COUNTRY

Reporting is limited in each Member State to those activities or products, the weight of which is equal to or more than 0,05 % of the total weight of the indicator in the Member State during the current base year (previous base year can be applied, if the current base year data is not available) unless European sampling scheme is applied.

E. LENGTH OF STS TIME SERIES FOR NEW MEMBER STATES OF THE EUROPEAN UNION

Each new Member State of the European Union shall provide time series at least from the second latest change of the base year, covering the period between the latest and the preceding base year change, if full time series according to the data tables are not available.

ANNEX IV

I. CONCEPTS

Resident statistical units

Statistical units which are resident units of a country in accordance with Regulation (EU) No 549/2013 (³).

Economic territory

The economic territory includes the following items:

(a) the area (geographic territory) under the effective administration and economic control of a single government;

(b) any free zones, including bonded warehouses and factories under customs control;

(c) the national air-space, territorial waters and the continental shelf lying in international waters, over which the country enjoys exclusive rights;

(d) territorial enclaves, these being geographic territories situated in the rest of the world and used, under international treaties or agreements between states, by general government agencies of the country (such as embassies, consulates, military bases, scientific bases, etc.);

(e) deposits of oil, natural gas, etc. in international waters outside the continental shelf of the country, worked by units resident in the territory as defined in points (a) to (d).

The economic territory excludes the following items:

— extraterritorial enclaves (i.e. the parts of the country’s own geographic territory used by general government agencies of other countries, by the institutions and bodies of the European Union or by international organisations under international treaties or agreements between States).

Domestic and non-domestic market

The difference between domestic and non-domestic markets is to be interpreted for the purpose of short term business statistics according to the economic territory of the Member States.

II.   VARIABLES

A. BUSINESS POPULATION

The number of entered legal units in the registration register at any time during the reference quarter q, according to the respective administrative or legal procedure.

The number of legal units that have started the procedure of being declared bankrupt, by issuing a court declaration, at any time during the reference quarter q (which is often provisional and does not always mean cessation of an activity).

The Number of active enterprises is the number of all statistical units which at any time during the reference period were ‘enterprises’, as defined in Council Regulation (EEC) No 696/93 (⁴), and also active during the same reference period.

A statistical unit is considered to have been active during the reference period, if in said period it either realized positive net turnover or produced outputs or had employees or performed investments.

A count of enterprises that had at least one employee at any time during a given reference period t.

A count of enterprises, having at least 10 employees in t – 3, with average annualised growth in number of employees greater than 10 % per annum, over a three year period (t – 3 to t). It does not include enterprises, as defined in variable 210201 ‘enterprise births’, in t – 3.

Young high-growth enterprises (gazelles) as a subset of high-growth enterprises must fulfil the additional conditions that they were enterprises, as defined in variable 210201 ‘enterprise births’, in t-4 or t-5.

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.

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.

Enterprise survival occurs if an enterprise is active in the year of birth (t-1 to t-5) and the following year(s). Two types of survival can be distinguished:

An enterprise born in year t-1 is considered to have survived in year t if it is active in any part of year t (= survival without changes).

An enterprise is also considered to have survived if the linked legal unit(s) have ceased to be active, but their activity has been taken over by a new legal unit set up specifically to take over the factors of production of that enterprise (= survival by take-over).

A count of enterprises that had the first employee at any time during a given reference period t. This can concern births of enterprises as defined for variable 210201, but also enterprises as defined for variable 210101 if the enterprises have already been active in previous reference periods, but did not have any employee in two previous reference periods.

A count of enterprises that have no employees anymore from any point in time in a given reference period t and that had at least one employee at an earlier point in time in a given reference period t. This can concern deaths of enterprises as defined for variable 210102, with at least one employee, but also enterprises as defined for variable 210202 if the enterprises still remain active, but have no employees any more from any point in time in a given reference period t and the two following reference periods: t + 1 and t + 2. The same applies if the contract of employment of the last employee ends in t on 31 December.

A count of enterprises having had at least one employee at any point in time in every year from the year of having the first employee (t – 1 to t – 5) until a given reference period t. The ‘population of enterprises that have the first employee in t’ is defined as for variable 210204. An enterprise is also considered to have survived if the linked legal unit(s) have ceased to be active, but their activity has been taken over by a new legal unit set up specifically to take over the factors of production of that enterprise (= survival by take-over).

In country-level business statistics foreign-controlled enterprise shall mean an enterprise resident in the compiling country over which an ultimate controlling institutional unit not resident in the compiling country has control. Enterprises shall mean active enterprises as defined for variable 210101 under A3.

Control shall mean the ability to determine the general policy of an enterprise, for example by choosing appropriate directors, if necessary. In this context, enterprise A is deemed to be controlled by an institutional unit B when B controls, directly or indirectly, more than half of the shareholders’ voting power, or by other means secures the control over A.

Foreign control shall mean that the ultimate controlling institutional unit is resident in a different country from the one where the institutional unit over which it has control is resident.

Branches shall mean local units of foreign enterprises not constituting separate legal entities. They are treated as quasi-corporate enterprises within the meaning of Regulation (EU) No 549/2013 and shall be deemed to be enterprises for the purposes of foreign affiliates statistics.

Ultimate controlling institutional unit of an affiliate shall mean the institutional unit, proceeding up an affiliate’s chain of control, which is not controlled by another institutional unit.

Foreign affiliate shall mean an enterprise resident in the compiling country over which an institutional unit not resident in the compiling country has ultimate control, or an enterprise not resident in the compiling country over which an institutional unit resident in the compiling country has ultimate control.

Country of ultimate control shall mean the country of residence of the ultimate controlling institutional unit, or group of units acting in concert.

Institutional unit and local unit shall each have the same meaning as in Regulation (EEC) No 696/93.

Inward foreign affiliates statistics shall mean statistics describing the activity of foreign affiliates resident in the compiling country.

A foreign-controlling enterprise shall mean a resident ultimate controlling institutional unit which has at least one foreign affiliate and which is an active enterprise as defined for variable 210101 under A3. Control and ultimate controlling institutional unit (UCI) shall mean as defined for foreign-controlled enterprises.

Domestic affiliate shall mean an enterprise resident in the compiling country over which a UCI resident in the same compiling country has control. Enterprise and branch shall mean as defined for foreign-controlled enterprises.

In country-level business statistics outward foreign affiliates statistics shall mean statistics describing the activity of domestic affiliates of every resident ultimate controlling institutional unit which has at least one foreign affiliate and the activity of foreign-controlling enterprises resident in the compiling country.

A count of the number of local units as defined in Regulation (EEC) No 696/93 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 during at least a part of the reference period.

Same as definition for variable 210101 under A3.

Same as definition for variable 210102 under A4.

Same as definition for variable 210103 under A5.

Same as definition for variable 210201 under A7.

Same as definition for variable 210202 under A8.

Same as definition for variable 210203 under A9.

Same as definition for variable 210204 under A10.

Same as definition for variable 210205 under A11.

Same as definition for variable 210206 under A12.

An enterprise abroad ultimately controlled by an institutional unit of the reporting country shall mean an enterprise not resident in the compiling country ultimately controlled by an institutional unit resident in the compiling country. Control, enterprise, branch and ultimate controlling institutional unit (UCI) shall mean as defined for foreign-controlled enterprises.

In statistics on international activities outward foreign affiliates statistics shall mean statistics describing the activity of foreign affiliates abroad ultimately controlled by an institutional unit resident in the compiling country.

B. LABOUR INPUTS

The number of employees and self-employed persons is the sum of the Number of employees and Number of self-employed persons. The ‘Number of employees’ is defined as for variable 220102 under B5. The number of self-employed persons is the average number of persons who were at some time during the reference period the sole owners or joint owners of the statistical unit in which they work. Family workers and outworkers whose income is a function of the value of the outputs of the statistical unit are also included.

Total hours worked by employees represents the number of hours actually worked by employees, for the output of the statistical unit during the reference period.

Time spent on adjacent work, indirectly contributing to the output (e.g. planning, preparation, administrative and alike), as well as time spent without actual work, but deemed and remunerated as such by the statistical unit (e.g. short breaks, short disruptions due to slack in production, trainings and alike) is included.

Time spent on work, be it adjacent work, without actual remuneration (e.g. unpaid overtime) is also included.

Remunerated time spent without actual work and not deemed as such by the statistical unit (e.g. annual leave, sick leave, maternity leave, official holidays, longer breaks, meal breaks, strikes, commuting and alike) is excluded.

Infra-annual statistics may not be able to take into account all these items such as unpaid overtime.

The variable ‘Wages and salaries’ contains all expenses incurred during the reference period on the total gross remuneration, in cash or in kind, of all employees of the statistical unit. Wages and salaries is part of the variable 220301 Employee benefits expense.

The total gross remuneration, in cash or in kind, contains as examples, but is not limited to the following items: direct remuneration, bonuses, allowances, gratuities, tips, commissions, payments to employees’ saving schemes, payments for days not worked, wages and salaries in kind, company products, staff housing, company cars, stock options and purchase schemes, amounts to be withheld by the employer (social security contributions of the employee, personal income tax, etc.). Infra-annual statistics may not be able to take into account all these items.

Expenses regarding services provided through agency workers, as well as the expenses of social security contributions and other similar fiscal obligations (tied directly or indirectly to wages and salaries), if incurred by the employer, are excluded.

Same as definition variable 120101 under B1.

The number of employees represents the average number of persons who were, at some time during the reference period, employees of the statistical unit.

While the employment relationship, which qualifies the parties (into employee and employer), is defined in specific legislation or contract, the term ‘employee’ usually means a person hired by the statistical unit to provide services to it on a regular basis, in exchange for benefits and where the services provided are not part of an independent business. For the sake of clarity, apprentices, if hired under such conditions, are considered employees.

The average should be calculated as the arithmetic mean of the number of employees over the shortest time periods of equal length fitting into the reference period, for which regular observations are practicable (e.g. daily, weekly, monthly, quarterly, etc.).

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. It is the total hours worked divided by the average annual number of hours worked in full-time jobs within the economic territory. Since the length of a full-time job has changed through time and differs between industries, methods which establish the average proportion and average hours of less than full-time jobs in each job group have to be used. A normal full-time week must first be estimated in each job group. If possible, a job group can be defined, inside an industry, according to sex and (or) kind of work of people. Hours contractually agreed upon can constitute for employee jobs, the appropriate criteria for determining those figures. Full-time equivalent is calculated separately in each job group, then summed.

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.

The ‘number of employees and self-employed persons’ is defined as for variable 120101 under B1 and ‘number of enterprises having at least one employee’ as for variable 210102 under A4.

The ‘number of employees’ is defined as for variable 220102 under B5 and ‘number of enterprises having at least one employee’ as for variable 210102 under A4.

The ‘number of employees’ is defined as for variable 220102 under B5. The ‘population of high-growth enterprises’ is defined as for variable 210103 under A5.

The ‘number of employees’ is defined as for variable 220102 under B5. The ‘population of young high-growth enterprises’ is defined as for variable 210104 under A6.

Same as definition variable 120201 under B2.

This variable contains all expenses arising in relation with employee benefits, recognized by the statistical unit during the reference period.

Employee benefits are all forms of consideration given by the statistical unit in exchange for service rendered by employees or for the termination of employment.

Same as definition as for variable 120301 under B3.

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 upon the unit’s accounting practices.

The ‘number of employees and self-employed persons’ is defined as for variable 120101 under B1 and ‘Newly born enterprises’ (enterprise births) as for variable 210201 under A7.

The ‘number of employees’ is defined as for variable 220102 under B5 and ‘Newly born enterprises’ (enterprise births) as for variable 210201 under A7.

The ‘number of employees and self-employed persons’ is defined as for variable 120101 under B1 and ‘enterprise deaths’ as for variable 210202 under A8.

The ‘number of employees’ is defined as for variable 220102 under B5 and ‘enterprise deaths’ as for variable 210202 under A8.

The ‘number of employees and self-employed persons’ is defined as for variable 120101 under B1 and ‘enterprise survivals’ as for variable 210203 under A9.

The ‘number of employees and self-employed persons’ is defined as for variable 120101 under B1 and ‘enterprise survivals’ as for variable 210203 under A9. For this variable the number of employees and self-employed persons is that of the year of the enterprise birth as defined under A7.

The ‘number of employees and self-employed persons’ is defined as for variable 120101 under B1 and ‘enterprises having first employee’ as for variable 210204 under A10.

The ‘number of employees’ is defined under as for variable 220102 under B5 and ‘enterprises having first employee’ as for variable 210204 under A10.

The ‘number of employees and self-employed persons’ is defined as for variable 120101 under B1 and ‘enterprises having no employees anymore’ as for variable 210205 under A11.

The ‘number of employees’ is defined as for variable 220102 under B5 and ‘enterprises having no employees anymore’ as for variable 210205 under A11.

The ‘number of employees and self-employed persons’ is defined as for variable 120101 under B1 and ‘survivals of enterprise having at least one employee’ as for variable 210206 under A12.

The ‘number of employees and self-employed persons’ is defined as for variable 120101 under B1 and ‘survivals of enterprises having at least one employee’ as for variable 210206 under A12. For this variable the number of employees and self-employed is that of the year of the enterprise birth meaning the year the enterprises has its first employee as defined under as for variable 210204 under A10’.

The ‘number of employees and self-employed persons’ is defined as for variable 120101 under B1 and ‘foreign-controlled enterprises’ as for variable 210301 under A13.

The ‘number of employees and self-employed persons’ is defined as for variable 120101 under B1 and ‘foreign-controlling enterprises (UCI concept) and domestic affiliates’ as for variable 210401 under A14.

The ‘employee benefits expense’ is defined as for variable 220301 under B12 and ‘number of foreign-controlled enterprises’ as for variable 210301 under A13.

‘Number of employees and self-employed persons’ is defined as for variable 120101 under B1, ‘local units’ as for variable 310101 under A15.

Same as definition for variable 120101 under B1.

Same as definition for variable 220102 under B5.

‘Wages and salaries’ is defined as for variable 120301 under B3 and ‘number of local units’ as for variable 310101 under A17.

Same as definition for variable 220104 under B7.

Same as definition for variable 220105 under B8

Same as definition for variable 220401 under B15

Same as definition for variable 220402 under B16.

Same as definition for variable 220403 under B17.

Same as definition for variable 220404 under B18.

Same as definition for variable 220405 under B19.

Same as definition for variable 220406 under B20.

Same as definition for variable 220407 under B21.

Same as definition for variable 220408 under B22.

Same as definition for variable 220409 under B23.

Same as definition for variable 220410 under B24.

Same as definition for variable 204011 under B25.

Same as definition for variable 241012 under B26.

The ‘number of employees and self-employed persons’ is defined as for variable 120101 under B1 and ‘enterprises abroad ultimately controlled by institutional units of the reporting country’ as for variable 410101 under A25.

The ‘employee benefits expense’ is defined as for variable 220301 under B12 and ‘enterprises abroad ultimately controlled by institutional units of the reporting country’ as for variable 410101 under A25.

C. PRICES

It is the objective of the import price indices to measure the monthly transaction price development of goods purchased by residents from non-residents. All the related services are initially excluded from the scope except for those covered by CIF (cost, insurance, freight) trade agreement. The price indices should track the price movements of comparable items over time.

It is essential that all price-determining characteristics of the products are taken into account, including quantity of units sold, transport provided, rebates, service conditions, guarantee conditions origin and destination. The specification must be such that in subsequent reference periods, the observation unit is able uniquely to identify the product and to provide the appropriate price per unit.

The following limitations apply for the scope of import prices:

— imports by households, government units and non-profit institutions are excluded,

— the underlying trade system is the special trade system so normal imports as well as imports for inward processing and after outward processing, when the reporting unit acquires the ownership of goods, are included. Imports for repair are not covered,

— the product coverage is limited to the CPA B, C and D products. Related services are excluded.

The following rules apply for the definition of import prices:

— The appropriate price is the cif (cost, insurance, freight) price at the border excluding all duties and taxes on the goods and services to be shouldered by the reporting unit.

— In order to show the true development of price movements, it should be an actual transaction price, and not a list price, therefore discounts should be deducted from the price.

— In order to show pure price movements the price index compilation should take into account and adjust for quality changes in products.

— Other price-determining characteristics of the products should be treated in a consistent way as well.

— The imports are recorded when the ownership of the goods is transferred (i.e. when the parties record transaction in their books or account).

— The transfer of ownership of vessels and aircraft, as well as spacecraft from a person established in another country to a person established in the Member State in question is counted as an import.

The index should in principle reflect the average price during the reference period. In practice the information actually collected may refer to a particular day in the middle of the reference period that should be determined as a representative figure for the reference period. For products with a significant impact on the national economy that are known to have, at least occasionally, a volatile price development, it is important that the index does indeed reflect average prices.

2) Variable 130102: Import prices (euro area) (optional for non-euro countries)

3) The indices of the import prices require a separate calculation according to the country of consignment of the goods (euro area and non-euro area). The country of consignment is determined in a consistent way with customs rules.

4) It is the objective of the producer price index to measure the development of transaction prices of economic activities in industry, construction, and services. The following rules apply for the definition of producer prices: All price-determining characteristics of the products are taken into account, including e.g. quantity of units sold, transport provided, surcharges, discounts, rebates, service conditions, guarantee conditions, destination etc. Producer prices measure the price development from the point of view of the producer/seller. The appropriate price is the basic price that excludes VAT and similar deductible taxes directly linked to turnover as well as all duties and taxes on the goods and services invoiced by the unit, whereas subsidies on products received by the producer, if there are any, should be added. In order to show the true development of price movements, it should be an actual transaction price, and not a list price. In order to show pure price movements, the producer price index compilation should take into account and adjust for quality changes in products. The specification must be such that in subsequent reference periods, the observation unit is able uniquely to identify the product and to provide the appropriate price per unit. The index should in principle reflect the average price during the reference period. In practice the information actually collected may refer to a particular day in the middle of the reference period that should be determined as a representative figure for the reference period. For products with a significant impact on the national economy that are known to have, at least occasionally, a volatile price development, it is important that the index does indeed reflect average prices. Price data should reflect prices at the moment of the actual transaction, i.e. when claims and obligations arise, are transformed or cancelled. Service prices should in principle be recorded when the service is provided. If the service delivery spans over several time periods or when services are bought in advance of the service delivery, appropriate adjustments have to be made The service producer price index for an economic activity measures the average price development of all services, Business-to-All, which is composed of Business-to-Business- B2B, and Business-to-consumers- B2C. Sales to public sector, Business-to-Government – B2G, is also included in B2B.

5) Variable 130202: Domestic producer prices

6) Variable 130203: Non-domestic producer prices

7) Variable 130204: Non-domestic producer prices (euro area) (optional for non-euro area countries)

8) The domestic producer price index for an economic activity measures the average price development of all goods and related services resulting from that activity and sold on the domestic market. The non-domestic price index shows the average price development (converted to local currency) of all goods and related services resulting from that activity and sold outside of the domestic market. When combined, these two indices show the average price development of all goods and related services resulting from an activity. For producer prices of the non-domestic market, the price should be calculated at national frontiers, fob (free on board). The indices of domestic and non-domestic prices require separate producer price indices to be compiled according to the destination of the product. The destination is determined by the residency of the third party that has ordered or purchased the product. Producer prices or costs of new residential buildings Producer price indices for construction measure only the development of new residential buildings and exclude residences for communities, non-residential buildings, land prices and architect’s and other fees. They reflect the prices paid by the client to the construction company. They therefore do not only reflect the variations in the cost factors of construction, but also the changes in productivity and profit margins. In addition, a temporal difference exists between the output price and the corresponding costs of production. The total construction costs of new residential buildings can be used as a proxy for the producer prices. It is the objective of the total construction cost index to show the development of costs incurred by the contractor to carry out the construction process. Costs that constitute the total construction costs of new residential buildings are material costs, labour costs, plant and equipment, transport, energy and other costs. Costs of residences for communities, non-residential buildings, land prices and architect’s and other fees are not parts of the construction costs. The material costs are generally calculated using material prices. Prices of materials should be based on actual prices rather than list prices. Prices should be based on a sample of products and suppliers. Prices are valued excluding VAT. The labour costs should cover wages and salaries and social security charges for all persons employed. Social security charges include: i) statutory social contributions payable by the employer, ii) collectively agreed, contractual and voluntary social contributions payable by the employer and iii) imputed social contributions (social benefits paid directly by the employer). A new residential building is any building which is constructed for permanent or temporary residential use or a building which is converted from other use to a permanent or temporary residential use, and for which a building or planning permit is required in national legislation.

D. R & D INPUTS

Research and experimental development (R & D) comprise creative and systematic work undertaken in order to increase the stock of knowledge – including knowledge of humankind, culture and society – and to devise new applications of available knowledge.

Expenditures on intramural R & D represent the amount of money spent on R & D that is performed within a reporting unit.

Intramural R & D expenditures are all current expenditures plus gross fixed capital expenditures for R & D performed within a statistical unit during a specific reference period whatever the source of funds. R & D current expenditures include labour costs for internal R & D personnel and other current costs (costs for external R & D personnel, purchase of services.). Gross fixed capital expenditures for R & D include: acquisition of land, acquisition of buildings, acquisition of information and communication equipment, acquisition of transport equipment, acquisition of other machinery and equipment, acquisition of capitalised computer software, acquisition of other intellectual property products.

Research and experimental development (R & D) comprise creative and systematic work undertaken in order to increase the stock of knowledge – including knowledge of humankind, culture and society – and to devise new applications of available knowledge.

R & D personnel in a statistical unit include all persons engaged directly in R & D, whether employed by the statistical unit or external contributors fully integrated into the statistical unit’s R & D activities, as well as those providing direct services for the R & D activities (such as R & D managers, administrators, technicians and clerical staff).

Persons providing indirect support and ancillary services, such as canteen, maintenance, administrative and security staff, should be excluded, even though their wages and salaries are included in ‘other current costs’ when measuring intramural R & D expenditure as from definition No D1.

R & D personnel includes two main groups of individuals:

— Persons employed by the statistical unit who contribute to a unit’s intramural R & D activities (internal R & D personnel).

— External contributors that are fully integrated into the unit’s intramural R & D activities (external R & D personnel) that can be either independent (self-employed) or dependent (receiving wages/salaries but not from the statistical unit performing the R & D).

Researchers are professionals engaged in the conception or creation of new knowledge. They conduct research and improve or develop concepts, theories, models, techniques, instrumentation, software or operational models.

Managers and administrators engaged in the planning and management of the scientific and technical aspects of a researcher’s work are also classified as ‘researchers’.

The ‘intramural R & D expenditure’ is defined as for variable 230101 under D1 and ‘foreign-controlled enterprises’ as for variable 210301 under A13.

The ‘R & D personnel’ is defined as for variable 230201 under D2 and ‘foreign-controlled enterprises’ as for variable 210301 under A13.

Government budget allocations for R & D (GBARD) are all appropriations allocated to R & D funding (to all sectors) in Government sector budgets. Government sector comprises the central (federal) government, regional (state) government and local (municipal) government subsectors (R & D funding by the latter may not be included in GBARD if not deemed to be significant or if data cannot be collected). GBARD refers to budget data, from budget forecasts to actual expenditures but data collection is usually focusing on ‘Initial budget appropriations’ and ‘Final budget appropriations’.

National public funding to transnationally coordinated R & D is defined as the total budget funding by the Government sector, as measured by GBARD, aimed at supporting: transnational public R & D performers, Europe-wide transnational public R & D programmes and bilateral or multilateral public R & D programmes established between EU Member States, candidate countries or EFTA countries.

Same as definition for variable 230101 under D1

Same as definition for variable 230201 under D2

Same as definition for variable 230202 under D3

E. PURCHASES

Total purchases of goods and services includes the total amount of goods and services purchased by the statistical unit, recognized in accounting as either current assets or expenses during the reference period.

Included in these purchases of goods, as a non-exhaustive list of examples, are: raw, auxiliary and packaging materials, consumables, fuel, spare parts, seeds and fodder, animals, small inventory items and goods purchased for resale.

Included in the purchases of services, as a non-exhaustive list of examples, are services with electricity, heating, water, maintenance, repairs, royalties, rental, insurance, research (if performed by third parties), agency work, advertising, promotion, transport, communication, banking, legal, accounting and any other service performed by third parties and recognized as an expense during the reference period.

Increases in finished goods and work in progress, as well as any financial assets and non-current assets are not included. As an exception, assets from other classes reclassified to any of the items listed above as included, are also included.

The purchases of goods and services referred to by this definition are valued according to the rules laid down to this effect in the accounting standards based on which the aforementioned assets and expenses were recognized.

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

Excluded is the value of goods and services which are sold to third parties on a commission basis, since these goods are neither bought nor sold by the agent receiving the commission.

Purchases of goods and services purchased for resale in the same condition as received is part of Total purchases of goods and services and used in the calculation of other aggregates and balances.

This variable contains all expenses recognized by the statistical unit during the reference period, referring to services provided to it by temporary employment agencies and similar organizations supplying workers to clients’ businesses for limited periods of time to supplement or temporarily replace the working force of the client, where the individuals provided are employees of the temporary help service unit. Expenses on services provided through agency workers is part of the variable Total purchases of goods and services.

However, these agencies and organizations do not provide direct supervision of their employees at the clients’ work sites. Only the expenses incurred for the provision of personnel which is not linked to the provision of a particular industrial or other non-industrial service are included into this variable.

The expenses of long-term rental include all expenses recognized by the statistical unit during the reference period, relating to the renting of non-current assets. Included in this variable are the payments under an operating leases contract related to non-current assets.

For this variable a lease is classified as an operating leases if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset.

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.

For activities of NACE Sections B to E 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.

For the statistics on activities of NACE Section F payments to subcontractors are payments made by the unit to third parties in return for construction works supplied as a part of a subcontracting relationship.

Two enterprises are linked by a subcontracting relationship, whenever conditions A, B, C and D are simultaneously satisfied:

A. The customer enterprise contracts with the supplier enterprise, hereafter referred to as ‘sub-contractor’, for the execution of works or services which are incorporated specifically in the construction process;

B. The customer enterprise is responsible for the final product of the construction process, the responsibility covers also the parts carried out by the subcontractors; the subcontractor can in some cases carry some responsibility.

C. The customer enterprise provides specifications to the subcontractor, for example, the work or service executed by the subcontractor must be tailor-made for the purposes of the specific project and cannot thus be a standardised or catalogue work or services.

D. The reciprocal contract is not otherwise ruled by an agreement of an associative type, such as a common answer for a call for tender, a consortium or joint venture, etc.

Change in stock of goods is the difference of the total value of inventories recognized by the statistical unit at the end and at the beginning of the reference period. The value of said inventories is the one at which they have been recognized in the financial statements.

This variable is defined as the change in the value of the stock of finished products or in the course of production, which have been produced by the statistical unit and which have not yet been sold, between the first and last days of the reference period. It is a part of variable Change in stock of goods.

These products include work in progress belonging to the statistical unit, even if the products in question are in the possession of third parties. Equally, products held by the statistical unit which belong to third parties are excluded.

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

Change in stock of goods for resale is the difference of the total value of inventories recognized by the statistical unit at the end and at the beginning of the reference period as items intended for resale to third parties without further processing. The value of said inventories is the one at which they have been recognized in the financial statements. Change in stock of goods for resale is a part of the variable Change in stock of goods.

The ‘total purchases of goods and services’ is defined as for variable 240101 under E1 and ‘foreign-controlled enterprises’ as for variable 210301 under A13.

The ‘Purchases of goods and services for resale’ is defined as for variable 240102 under E2 and ‘foreign-controlled enterprises’ as for variable 210301 under A13.

F. OUTPUT AND PERFORMANCE

Production in short term business statistics is required as an index. The production volume index is the reference indicator for economic development and it is used in particular to identify turning points in economic development at an early stage. It should be presented in the form of a Laspeyres type index, comparing the current volume of production to the corresponding volume of production in the base period.

Theoretical target of the production volume index:

— In the view of business cycle statistics, own output should be measured. The terms ‘production’ or ‘output’ in the sense of business cycle statistics do not include inputs from other units.

— The objective of the production volume index is therefore to measure changes in the volume of value added at close and regular intervals.

— The changes in volume of value added measured should in general approximate the value added measured by the National Accounts concepts of value added.

Principles for the calculation of the production volume index:

— Data necessary for compilation of index as defined by theoretical target are usually not available on a monthly basis.

— Therefore, value added at basic prices is calculated only for the base period especially for updating the weights. If value added at basic prices is not available, gross value added at factor cost may be used as a proxy.

— The monthly continuation of value added in base period is done by suitable proxy values.

Calculation of the proxy values for continuation. Suitable proxy values for the continuation of the indices are:

— continuation with gross production values (deflated),

— continuation with volumes,

— continuation with turnover (deflated),

— continuation with work input,

— continuation with raw material input,

— continuation with energy input.

The correlation of these proxy measures with the development of value added may differ depending on the market activity. For each market activity a proxy with a high correlation should be chosen.

Relations to National Accounts:

— The common understanding of the term ‘production index’ as an ‘evolution of value added’ contradicts the definition of ‘production’ in the framework of national accounts or structural business statistics.

— In the terms of national accounts, the production index refers to the development of ‘value added’ in constant prices, whereas value added is in principle output minus intermediate consumption at basic prices.

The volume of sales represents the value of net turnover in constant prices and as such is a quantity index. It can be calculated as net turnover at current prices, deflated by the appropriate price indicator, or as a quantity index derived directly from the quantity of goods sold.

For all activities except for NACE 64, 65 and some activities of NACE 66, net turnover consists of all income arising during the reference period in the course of ordinary activities of the statistical unit, and is presented net of all price reductions, discounts and rebates granted by it.

Income is defined as increases in economic benefits during the reference period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.

The inflows referred to are arising from contracts with customers and are realised through the satisfaction by the statistical unit of performance obligations as stipulated in said contracts. Usually, a performance obligation is represented by the sale (transfer) of goods or the rendering of services; however, the gross inflows can also contain revenues obtained as a yield on the use by others of the statistical unit’s assets.

Excluded from net turnover are:

— all taxes, duties or levies linked directly to revenue;

— any amounts collected on behalf of any principal, if the statistical unit is acting as an agent in its relationship with said principal;

— all income not arising in the course of ordinary activities of the statistical unit. Usually, these types of income are classified as ‘Other (operating) income’, ‘Financial income’, ‘Extra-ordinary income’ or under a similar heading, depending on the respective set of generally accepted accounting standards used to prepare the financial statements.

Infra-annual statistics may not be able to take into account aspects such as annual price reductions, subsidies, rebates and discounts.

For the activities of NACE L6411, L6419 and L649, net turnover is defined as the value of output minus subsidies or government grants.

For the activities of NACE L642 and L643 net turnover can be approximated by the total operating costs, if net turnover is not available in the financial statements.

For the activities of NACE L6511, L6512 and L652 net turnover is defined as Gross premiums earned.

For the activities of NACE L653 the net turnover is defined as total pension contributions

For activities of NACE L66 for which net turnover is not available in the financial statements, net turnover is defined as the value of output minus subsidies or government grants. For activities of NACE L66 for which net turnover is available in the financial statements, the standard definition of net turnover applies.

4) Variable 140302: domestic net turnover

5) Variable 140303: Non-domestic net turnover

6) Variable 140304: Non-domestic net turnover (euro area)

7) The indices of domestic and non-domestic net turnover require net turnover to be split according to the first destination of the product based on the change of ownership (whether or not there are also corresponding physical movements of goods across frontiers). The destination is determined by the residency of the third party that purchased the goods and services.

8) Same as definition variable 140301 under F3

9) The part of net turnover derived from activities classified to NACE Sections A to F. Net turnover derived from the resale of goods and services purchased for resale in the same condition is excluded.

10) The part of net turnover derived from activities classified to NACE Sections B to F. Net turnover derived from the sale of goods and services which have been subject to a sub-contracting relationship is included. Net turnover derived from the resale of goods and services purchased for resale in the same condition is excluded.

11) The part of net turnover derived from activities classified to NACE Sections B to E. Net turnover derived from the sale of goods and services which have been subject to a sub-contracting relationship is included. Net turnover derived from the resale of goods and services purchased for resale in the same condition is excluded.

12) The part of net turnover derived from activities classified to NACE Section F. Net turnover derived from the sale of goods and services which have been subject to a sub-contracting relationship is included. Net turnover derived from the resale of goods and services purchased for resale in the same condition is excluded.

13) Revenue from all services rendered (banking and insurance services, business and personal services). This variable encompasses net turnover from service activities resulting from a principal or secondary activity; some service activities may be performed by industrial units. Those activities are classified to NACE Sections H to O and Q to T.

14) The part of net 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: Those activities are classified in NACE Section G.

15) The part of net turnover derived from activities classified to NACE Division F41. Net turnover derived from the sale of goods and services which have been subject to a sub-contracting relationship is included. Net turnover derived from the resale of goods and services purchased for resale in the same condition is excluded.

16) The part of net turnover derived from activities classified to NACE Division F42 Net turnover derived from the sale of goods and services which have been subject to a sub-contracting relationship is included. Net turnover derived from the resale of goods and services purchased for resale in the same condition is excluded.

17) The part of net turnover derived from the principal activity of the unit. The principal activity of a unit is determined according to the rules laid down in the Council Regulation (EC) No 696/93. Net turnover derived from the sale of goods and services which have been subject to a sub-contracting relationship is included. Net turnover derived from the resale of goods and services purchased for resale in the same condition is excluded.

18) For the statistics on activities of NACE Section F Net turnover from subcontracting is the net turnover generated by the unit’s own construction works provided to a third party under a subcontracting relationship. Two enterprises are linked by a subcontracting relationship, whenever conditions A, B, C and D are simultaneously satisfied:

19) Net turnover shall mean net turnover as defined for variable 140301 under F3. The concept of residence is in accordance with Regulation (EU) No 549/2013.

20) Net turnover shall mean net turnover as defined for variable 140301 under F3. The breakdown by product is based on the CPA.

21) Corresponds to the return on the activity of purchase and resale without further processing. It is calculated from net turnover related to trading activities of purchase and resale without further processing, total purchases for resale and changes in stock of goods and services purchased for resale. Included in gross margin on goods for resale are sales, purchases and changes in stock of goods and services related to goods and services which are purchased in order to be rendered to third parties in the same condition. Also called gross trading margin.

22) Value of output represents the value of the total output of the statistical unit, generated during the reference period. For all activities except for activities of NACE 64, 65 and 66 it is the sum of: Income from product- or turnover-related subsidies is any income originating from government assistance granted to and recognised as such by the statistical unit during the reference period. Capitalised output is the total increase of all self-generated long-term assets, recognised as such by the statistical unit during the reference period. For the activities of NACE L6411, the value of output is defined as other administrative expenses than staff costs plus fees and commission expenses plus staff costs plus depreciation of tangible and intangible fixed assets. For the activities of NACE L6419 and L649, the value of output is defined as interest receivable and similar income minus 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 Income from product or turnover related subsidies. For some activities of L6499, the value of output is net turnover plus subsidies or government grants or can be approximated by the total operating costs, if net turnover is not available the financial statements. For the activities of NACE L642 and L643, the value of output is net turnover plus subsidies or government grants or can be approximated by the total operating cost, if net turnover is not available in the financial statements. For the activities of NACE L6511, the value of output is defined as Gross premiums earned plus Investment income minus Income from participating interest minus value re-adjustments on investments plus Investment income of reinsurers on their share of the gross technical provisions of the enterprise plus Unrealised gains on investments plus Other technical income, net of reinsurance minus Claims paid plus/minus Change in the provision for claims (increase needs to be subtracted, decrease needs to be added) plus/minus Changes in other technical provisions net of reinsurance (costs need to be subtracted, income should be added) plus/minus (If available) Changes in other technical provisions, reinsurers’ share (costs needs to be subtracted, income needs to be added) plus/minus (If available) Change in fund for future appropriations (costs should be subtracted, income should be added) minus Bonuses and rebates, net of reinsurance minus losses on the realisation of investments minus unrealised loss on investments plus other income. For the activities of NACE L6512 and L652, the value of output is defined as Gross premiums earned plus Investment income minus Income from participating interests minus Value re-adjustments on investments plus Investment income of reinsurers on their share of the gross technical provisions of the enterprise plus Other technical income, net of reinsurance plus Other income minus Claims paid plus/minus Change in the provision for claims (increase needs to be subtracted, decrease needs to be added) minus Losses on the realisation on investments minus Bonuses and rebates, net amount plus/minus Change in the equalisation provision (costs should be subtracted, income need to be added) plus/minus Changes in other technical provisions, not shown under other headings (costs should be subtracted, income should be added). For the activities of NACE L653, the value of output is defined as net turnover minus insurance premiums payable plus investment income plus other income plus insurance claims receivable minus total expenditure on pensions minus net change in technical provisions (increases in technical provisions are to be subtracted from value of output and decreases added). Alternatively, the value of output can be calculated as sum of costs. For activities of NACE L66 for which net turnover is not available in the financial statements, the value of output is defined as interest receivable and similar income minus 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 income from product or turnover related subsidies. For the activities of NACE L66 for which net turnover is available in the financial statements, the value of output is defined as net turnover plus capitalised output plus income from product or turnover related subsidies.

23) Value added is a composite indicator of net operating income, adjusted for depreciation, amortization and employee benefits, all components being recognized as such by the statistical unit during the reference period. Its value is given by the formula:

24) 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 less the employees benefits expense. 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.

25) The ‘net turnover’ is defined as for variable 140301 under F3 and ‘foreign-controlled enterprises’ as for variable 210301 under A13.

26) The ‘value of output’ is as defined for variable 250301 under F22 and ‘foreign-controlled enterprises’ as for variable 210301 under A13.

27) The ‘value added’ is as defined for variable 250401 under F23 and ‘foreign-controlled enterprises’ as for variable 210301 under A13.

28) The ‘net turnover’ is defined as for variable 140301 under F3 and ‘foreign-controlling enterprises (UCI concept) and domestic affiliates’ as for variable 210401 under A14.

29) The ‘net turnover’ is defined as for variable 140301 under F3 and ‘enterprises abroad ultimately controlled by institutional units of the reporting country’ as for variable 410101 under A25.

30) Sold production is defined as the production carried out at any time and within the economic territory of each country, which has been sold (invoiced) during the reference period. The production may be carried out under the primary or secondary activities of the enterprise. It includes production sold (invoiced) between different kind-of-activity units belonging to the same enterprise.

31) Production carried out by a sub-contractor, within the economic territory of each country, which has been sold (invoiced) during the reference period to the principal in line under the conditions for sub-contracted operations as specified by the CPA guidelines. The production may be carried out under the primary or secondary activities of the enterprise.

32) The actual production includes any production, carried out during the reference period and within the economic territory of each country, which is incorporated into the manufacture of other products. It includes those products which, either in the kind-of-activity unit itself, or in another kind-of-activity unit belonging to the same enterprise:

G. INVESTMENTS

Gross investment in tangible non-current assets includes all additions to tangible non-current assets, recognized as such by the statistical unit during the reference period, except any increases from revaluations or reversals of previously recognized impairment losses and from reclassifications (transfers) of other tangible non-current assets.

The additions include, but are not limited to, acquisitions, finance leases, improvements, alterations, renovations, constructions, self-constructions and any capitalized expenses, as allowed by the applicable accounting standards which define the recognition and valuation criteria.

Gross investment in land includes all additions to land, underground deposits, forests and inland waters, tangible exploration and evaluation assets, mining, oil and gas assets and others alike, recognized as such by the statistical unit during the reference period. Gross investment in land is a part of the variable Gross investment in tangible non-current assets.

Gross investment in the acquisition of existing buildings includes all additions to or acquisitions of buildings and similar structures already used (i.e. not new) at the moment of acquisition, recognized as such by the statistical unit during the reference period.

Gross investment in the acquisition of existing buildings is a part of variable Gross investment in tangible non-current assets.

Gross investment in construction and improvement of buildings includes all:

— additions to construction of new buildings for own use (self-constructed),

— acquisitions of new buildings (usually the result of a construction contract, the beneficiary of which is the reporting statistical unit),

— capitalized additions, alterations, improvements and renovations to existing buildings (if additional economic benefits associated with them are likely to flow to the statistical unit), recognized as such by the statistical unit during the reference period.

Gross investment in construction and improvement of buildings is a part of variable Gross investment in tangible non-current assets.

Gross investment in machinery and equipment includes all additions to machinery, vehicles, fixtures and fittings, office equipment, computer, communication and network equipment and others alike, recognized as such by the statistical unit during the reference period.

Gross investment in machinery and equipment is a part of variable Gross investment in tangible non-current assets.

Gross investment in intangible non-current assets, other than goodwill, includes all additions to intangible non-current assets, recognized as such by the statistical unit during the reference period, except goodwill.

The additions include, but are not limited to, acquisitions, finance leases, improvements, additions, alterations, renovations, constructions, self-constructions and any capitalized expenses, as allowed by the applicable accounting standards which define the recognition and valuation criteria and wherein the term ‘goodwill’ is also defined.

Investment in purchased software are recognised to be an intangible asset if and only if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and if the cost of the asset can be measured reliably. If the purchase of software does not meet these conditions, it is recognised as an expense when it is incurred and included in the value of ‘Total purchases of goods and services’.

The investment in purchased software comprises its purchase price, including any import duties and non-refundable purchase taxes, and any directly attributable expenditure on preparing the software for its intended use. Directly attributable expenditure includes, for example, professional fees for its installation. Any trade discounts and rebates are deducted in arriving at the cost.

Sales proceeds of tangible investments 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.

The ‘gross investment in tangible non-current assets’ is defined as for variable 260101 under G1 and ‘foreign-controlled enterprises’ as for variable 210301 under A13.

The ‘gross investment in tangible non-current assets’ is defined as for variable 260101 under G1 and ‘enterprises abroad ultimately controlled by institutional units of the reporting country’ as for variable 410101 under A25.

H. REAL ESTATE

A building permit is an authorisation to start work on a building project. As such, a permit is the final stage of planning and building authorisations from public authorities, prior to the start of work. Other information, for example detailed planning approval granted and building starts, may be used to complement the data sources on new building projects.

These building permits should provide a good indication of the workload for the building industry in the near future, although this may not be the case when a large proportion of permits are not used or when there is a long time lag between permits and building starts.

Regulation (EU) 2019/2152 requests data only on new buildings and conversions of non-residential building into residential buildings, even if building permits may be granted for other constructions and works.

Buildings are subdivided into residential and non-residential buildings.

Residential buildings are constructions at least half of which is used for residential purposes. If less than half of the overall useful floor area is used for residential purposes, the building is classified under non-residential buildings in accordance with its purpose-oriented design.

It is the objective of the number of dwelling building permit variable to show the future development of construction activity in terms of unit numbers.

This variable is compiled from the number of dwellings in new residential buildings for which building permits have been granted (covering one-dwelling residential buildings and residential buildings with two and more dwellings). A dwelling is a room or suite of rooms and its accessories in a permanent building or structurally separated part thereof which by the way it has been built, rebuilt, converted and so on, is intended for private habitation. It should have separate access to a street (direct or via a garden or grounds) or to a common space within the building (staircase, passage, gallery, and so on). Detached rooms for habitation which are clearly to be used as a part of the dwelling should be counted as part of the dwelling. A dwelling may thus be constituted of separate buildings within the same enclosure, provided they are clearly intended for habitation by the same private household.

Extensions of existing residential buildings for which no building permit is required are not considered as dwellings for these statistics.

‘Building permits’ is as defined for variable 150101 under H1. It is the objective of the useful floor area building permit variable to show the future development of construction activity in terms of volume.

This variable is compiled from the square metres of useful floor area of new residential and non-residential buildings for which permits have been granted. The useful floor area of a building is measured within its external walls, excluding:

— construction areas (e.g. areas of demarcation components, supports, columns, pillars, shafts, chimneys),

— functional areas for ancillary use (e.g. areas occupied by heating and air-conditioning installations, or by power generators),