ESTP course on SBS March 2013 Variables and definitions Nino Platteel ESTP course on "Structural Business Statistics", Eurostat, March 2013

(purpose of SBS, system of variables) ESTP course - SBS variables Contents: SBS system (purpose of SBS, system of variables) Definitions of most important variables  SBS annexes I – IV ESTP course on "Structural Business Statistics", Eurostat, March 2013

The system ESTP course - SBS variables Purpose of SBS: to provide insight into the structure of production and consumption, revenues and costs of the various groups of economic activity. With the information on production and consumption it is possible to calculate the value added of the various groups and hence their contribution to the national income. Together with data on staff costs and financial results SBS gives insight in the remuneration of labour and capital. See also ESTAT site  SBS ESTP course on "Structural Business Statistics", Eurostat, March 2013

SBS is coherent system of variables at national level more than in SBS ESTP course - SBS variables The system Important: SBS is coherent system of variables at national level more than in SBS Variables are related Consistency between variables But: different sources possible ESTP course on "Structural Business Statistics", Eurostat, March 2013

The system ESTP course - SBS variables Turnover Production Industrial activity Trading activities Intermediary activities Other service activities Change in stocks of products etc. Capitalised production Other operating income Itallic not in SBS ESTP course on "Structural Business Statistics", Eurostat, March 2013

Change in stocks of raw materials etc. ESTP course - SBS variables The system Consumption Total purchases of goods and services Purchases of raw materials Purchases of goods for resale Payments for agency workers Payments to subcontractors Operating costs …….. Change in stocks of raw materials etc. ESTP course on "Structural Business Statistics", Eurostat, March 2013

Gross operating result ESTP course - SBS variables The system Production minus Consumption = Value added producers’ prices Labour costs factor costs Gross operating result Indirect taxes minus operating subsidies ESTP course on "Structural Business Statistics", Eurostat, March 2013

The definitions ESTP course - SBS variables Related to National Accounts But: Not always the same  must be available in accounting systems NA integrates different data sources possibilities to correct ---------------------------------------------------------------- Not always consistent with other EU statistics ESTP course on "Structural Business Statistics", Eurostat, March 2013

The definitions ESTP course - SBS variables SBS recast has been used to reconsider: some definitions  more precise  more consistent references to 4th accounting directive references to the IAS ESTP course on "Structural Business Statistics", Eurostat, March 2013

The definitions ESTP course - SBS variables Reference document: Commission Regulation (EC) N°250 /2009 concerning the definitions of characteristics for structural business statistics ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables The variables Demographic (11…) Output (12…) Consumption and operating costs (13…) Personnel costs (13…) Capital input (15…) Labour input (16…) Breakdowns of turnover (18…) ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables The variables To be complete: Energy (20 11 0) Environment (21…) Subcontracting (23…) ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Conceptual basis of the population: In theory: description of economic activities In practice: units classified by principal activity Institutional vs. Functional approach Example: Production of Paper and Paperboard  Institutional approach: all units in NACE 17.12  Functional approach: all production of paper and paperboard, irrespective of the enterprises within which these goods are produced ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Statistical units in Institutional System 1. Enterprise group: national transactor in financing process 2. Enterprise: national transactor in production process 3. Local unit: regional “actor” in production process Units defined in Council Regulation 696/93 ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Demographic variables Number of enterprises: 11 11 0 Count of the register, corrected for dormant and dead units Active during at least part of reference period Including branches of foreign enterprises 696/93 ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Demographic variables How to count 11 11 0? All units reporting activity during any time of reference period Snapshot of active number at certain moment “Average” number of active units ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Demographic variables Number of local units: 11 21 0 In regional statistics Number of kind-of-activity units: 11 31 0 Only in Annex II Not mentioned in Register Regulation! (only legal unit, enterprise, enterprise group and local unit) 696/93 ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Output variables Turnover: 12 11 0 Total of invoices in reference period Excluding VAT Including all other indirect taxes STS! Excluding subsidies Including: transport, packaging Discounts etc. deducted  STS! ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Output variables Turnover: SBS STS Incl. all duties and taxes on the goods or services invoiced by the unit except VAT Excl. VAT as well as all duties and taxes on the goods or services Reduction in prices, rebates and discounts as well as the value of returned packing must be deducted. deducted. Price reductions, etc. conceded for example at the end of the year, are not taken into account. ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Output variables Production value: 12 12 0 = turnover +/- changes in stocks - purchases of goods and services for resale + capitalised production + other operating income ESTP course on "Structural Business Statistics", Eurostat, March 2013

The system ESTP course - SBS variables Turnover Production Industrial activity Trading activities Intermediary activities Other service activities Change in stocks of products etc. Capitalised production Other operating income ESTP course on "Structural Business Statistics", Eurostat, March 2013

Other service activities Change in stocks of products etc. ESTP course - SBS variables The system Production “Net turnover” Industrial activity Trade margin Other service activities Change in stocks of products etc. Capitalised production Other operating income ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Instead of Turnover from trading activities Gross margin on goods for resale (12 13 0) = Turnover from trading (18 13 0) - Purchases of goods for resale (13 12 0) +/- Changes in stocks goods for resale (13 21 1) ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Input variables Total purchases of goods and services (13 11 0) Raw materials Industrial services Payments to subcontractors (23 11 0) Agency workers (13 13 1) Energy (20 11 0) Packaging (for single use) Goods for resale (13 12 0) Operating costs (13 4. .) ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Input variables Operating costs (13 4. .) Buildings and equipment (13 41 0) Of which long term renting and leasing (13 41 1) Selling (13 42 0) Other (13 43 0) Current expenditure on environmental protection (21 14 0)? ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Input variables Total purchases of goods and services (13 11 0) Excluding VAT Discounts deducted Including packaging Import duties Transport costs ESTP course on "Structural Business Statistics", Eurostat, March 2013

Change in stocks of raw materials etc. ESTP course - SBS variables The system Consumption Total purchases of goods and services Purchases of raw materials Purchases of goods for resale Payments for agency workers Payments to subcontractors Operating costs …….. Change in stocks of raw materials etc. ESTP course on "Structural Business Statistics", Eurostat, March 2013

Gross operating result ESTP course - SBS variables The system Production minus Consumption = Value added producers’ prices Labour costs factor costs Gross operating result Indirect taxes minus operating subsidies ESTP course on "Structural Business Statistics", Eurostat, March 2013

Value added ESTP course - SBS variables Value added at producers’ prices: not a SBS variable Value added at factor cost is SBS variable but not a concept in ESA Value added at basic prices is concept in ESA ESTP course on "Structural Business Statistics", Eurostat, March 2013

Value added ESTP course - SBS variables SBS (12.15.0) Value added at factor costs = Value added at producers’ prices All taxes on production + All subsidies on production SBS (12.15.0) National accounts Value added at basic prices = Value added at producers’ prices Taxes on products + Subsidies on products ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Personnel costs (13 31 0) Personnel costs are defined as the total remuneration, in cash or in kind, payable by an employer to an employee Personnel costs are made up of: — wages and salaries (13 32 0) — employers’ social security costs (13 33 0) ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Personnel costs Wages and salaries (13 32 0) All payments to staff on payroll, incl. homeworkers Included: Social contributions payable by employee Excluded: Social contributions payable by employer Payments for agency workers ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Personnel costs Social security costs (13 33 0) All employers contributions to: Retirement pensions Sickness, maternity and disability Unemployment Family allowances ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Personnel costs Social security costs (13 33 0) For all staff on payroll Social schemes can be: Legally required Collectively agreed Contractual Voluntary ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Gross Investment in tangible goods (15 11 0) Useful life more than 1 year Purchased Leased Produced for own use ----------------------------------------------------------------- Operational lease  see 13 41 1 ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Gross Investment in tangible goods (15 11 0) Value including: Transport, installation, fees and taxes Own produced  production costs Additions, alterations, improvements ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Gross Investment in tangible goods (15 11 0) Recorded when the ownership is transferred If not possible: When delivered When entering into the production process When invoiced When paid for ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Gross Investment in tangible goods (15 11 0) Broken down into: Land (15 12 0) Existing buildings and structures (15 13 0) Construction and alteration of buildings (15 14 0) Machinery and equipment (15 15 0) ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Gross Investment in tangible goods (15 11 0) COMMISSION REGULATION (EC) No 250/2009: 15 11 0 = 15 12 0 + 15 13 0 + 15 14 0 + 15 15 0 But: Gross investment in tangible goods can be greater than the sum of 15 12 0+15 13 0+15 14 0+15 15 0 as there are asset items such as art, forests, orchards, cattle… which cannot be attributed to either of the categories of tangible goods. 15 12 0 Gross investment in land: Included under this variable, in addition to land, are underground deposits, forests and inland water ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Employment variables: Persons employed (16 11 0) Total number of persons who work in the observation unit (inclusive of working proprietors, partners working regularly in the unit and unpaid family workers working regularly in the unit), 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). ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Employment variables: Number of employees (16 13 0) All persons who work for an employer and who have a contract and receive compensation in the form of wages, salaries, fees, etc. Including: - part-time workers - seasonal workers - working proprietors and homeworkers on payroll ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Employment variables: Unpaid persons employed (16 12 0) persons who work regularly in the observation unit and who do not receive compensation in the form of wages = 16110 - 16130 ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Employment variables: Both Persons employed (16 11 0) and Number of employees (16 13 0) Measured as a headcount an annual average using data for at least each quarter of the year ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Employment variables: Hours worked (16 15 0) = Potential working hours + Paid overtime + Unpaid overtime - Sickness leave including maternity leave - Short periods of absence ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Employment variables: Number of FTE’s (16 14 0) To be reported by businesses: Sum of working hours for each employee Full time working hours ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Breakdowns of turnover: Examples: 18 11 0: Turnover from the principle activity 18 12 0: Turnover from industrial activities 18 15 0: Turnover from service activities 18 16 0: Turnover from trading 18 21 0: Breakdown of turnover by product  Based on CPA section G  Sum = 18 16 0 18 31 0: Turnover from building 18 32 0: Turnover from civil engineering ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Breakdowns of turnover: 18 21 0: Turnover by CPA for Motor vehicles etc.: 45.11.1 Wholesale trade services of cars and light motor vehicles 45.11.2 Specialised store retail trade services of cars and light motor vehicles 45.11.3 Other retail trade of cars and light motor vehicles 45.11.4 Wholesale on a fee or contract basis of cars and light 45.19.1 Wholesale trade services of other motor vehicles 45.19.2 Specialised store retail trade services of other Etc. ESTP course on "Structural Business Statistics", Eurostat, March 2013

ESTP course - SBS variables Breakdowns of turnover: New in Annex VIII: Variable 12110 (turnover) Broken down by product type based on CPA Broken down by residence of client  Sum = 12 11 0 (for 20+ persons employed) ESTP course on "Structural Business Statistics", Eurostat, March 2013

Thank you for your attention ESTP course - SBS variables Thank you for your attention Questions? Comments? ESTP course on "Structural Business Statistics", Eurostat, March 2013