Concepts




The acronym FATS comes from the words Foreign Affiliate Statistics and refers to statistics on foreign affiliates. This may mean either foreign affiliates abroad controlled by the compiling economy (Outward FATS), or foreign affiliates resident in the compiling economy (Inward FATS).

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The concept of Inward FATS comes from the words Inward Statistics on Foreign Affiliates. In Finland, these statistics go by the name Foreign-owned Enterprises and they describe the activities of foreign-owned enterprises in Finland.

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The concept of Outward FATS comes from the words Outward Statistics on Foreign Affiliates. The concept refers to statistics describing the activity of Finnish-owned enterprises abroad.

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There are several definitions for this concept

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Facade material refers to the material of which most of the facade of a building is made:
- Concrete
- Brick
- Metal cladding
- Stone
- Wood
- Glass
- Other.

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Data on the facilities of dwellings and buildings are derived from the dwelling and building data of the Population Information System of the Population Register Centre.

Facilities in a dwelling:
- sewage
- running water
- toilet
- hot water
- washing facilities (shower, bathroom or sauna)
- sauna in the dwelling
- central or electric heating.

The data on dwelling facilities have been used in determining the standard of equipment of the dwelling.

Facilities in a building:
- electricity
- sewage
- running water
- hot water
- lift
- sauna in the building
- swimming pool
- mechanical ventilation
- air raid shelter.

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In the income distribution statistics, factor income is monetary compensations received by households for participation in the production activity as wages and salaries, entrepreneurial income and property income.

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In factoring, a firm converts its accounts receivable into cash by turning them over to a credit institu-tion/financing company in exchange for working capital. The capital given to enterprises as financing of working capital is recorded in this category. The buyer pays the financing company directly for the account receivable concerned. The accounts receivable are secured by the transferred contracts related to the claim.
Both domestic factoring and export factoring are recorded in this category.

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In factoryless production, an enterprise located in Finland (factoryless producer) has outsourced all its production, but its other activities, such as the head office, sales and research and development are located wholly or partly in Finland. A factoryless producer located in Finland organises the international manufacturing process. In addition to manufacturing costs, the sales price of a product includes planning, administration, patents and knowhow, marketing and financing. Especially in high technology goods these immaterial inputs may be considerable compared to the value of materials and assembly. In the balance of payments, the difference between sales and purchases (the margin of sales from abroad to abroad) in factoryless production is recorded in Finland in service exports.

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A family consists of a married or cohabiting couple or persons in a registered partnership and their children living together; or either of the parents and his or her children living together; or a married or cohabiting couple and persons in a registered partnership without children.

Starting from 1 March 2002, same-sex couples have been able to register their partnerships.

Persons living in the household-dwelling unit who are not members of the nuclear family are not included in the family population, even if they are related, unless they form their own family. Brothers and sisters or cousins living together are not a family and do not belong to the family population. The same applies to people who live alone or with a person of the same sex.

Families living in residential homes are included in the family population. In contrast, persons who live in institutions are not included.

A family can consist of no more than two successive generations. If the household-dwelling unit comprises more than two generations, the family is formed starting from the youngest generation. This means, for example, that a mother-in-law or father-in-law living with their child's family will not be included in the family population unless they live together with their spouse, in which case the old couple form their own family.

A family with underage children refers to a family which has at least one child aged under 18 living at home.

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Family members are grouped by family status as follows:
- spouse, no children
- spouse with children
- cohabiting partner, no children
- cohabiting partner with children
- partner in a registered partnership, no children
- partner in a registered partnership with children
- father/mother without spouse
- child.

In the family statistics children comprise all persons, regardless of age, who live with their parents, or the spouse's biological or adopted children, but not foster children or children in the care of the family.

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A family with underage children is a family comprising at least one child aged under 18 living at home.

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There are several definitions for this concept

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Households where the cultivated area of the farm is over two hectare are counted as farmer households. A household is not considered a farmer household if the main source of income reported is renting of fields, compensation for reduction or cessation of agricultural production or if no income is derived from the farm. The share rented from others is included when calculating the area.

Farmer households are further divided into agricultural households and part-time agricultural households by the socio-economic group of the household. Agricultural households are such whose socio-economic group is self-employed person in agriculture. However, not all such self-employed households are counted in farmer households.

Based on interview data, the activity from which the highest income is gained is recorded as the main production line of the farm.

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Tax-free prices paid by farmers for their means of production when arriving on farms.

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Farming comprises all agricultural and forestry activities of a farm. Agriculture includes agriculture proper as well as special farming and other activities associated with agriculture or forestry that are not deemed to constitute a separate business.

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An accident in which a person involved has died within 30 days from the accident as a consequence of the accident, excluding deaths from acute fits of illness.

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Fees and commission expenses (statements)
Fee and commission expenses include clearing and settlement expenses, custody expenses, servicing fees from securitisation activities, loan commitments received, guarantees received and other fee and commission expenses.

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Fellow enterprises are connected to one another through a shared parent company. Fellow enterprises cannot have a direct investment relationship with each other.

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Locating of waste permanently on a designated site reserved for it, such as a landfill.

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Final energy consumption measures the consumption of electricity and heat, fuels for space heating, transport fuels and fuels for industrial processes. It differs from total consumption in that energy transmission and distribution losses have been removed from it. Thus, it represents the final amount of energy left at the disposal of households and other consumers.

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There are several definitions for this concept

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The system of financial accounts (i.e. the financial accounting system) shows the financial assets and liabilities of the different sectors of the economy, as well as financial transactions that have an impact on these financial assets and liabilities. The financial accounts consist of 1) the financial balance at the end of the year, and 2) a record of the financial transactions involving financial assets and liabilities during the year. The financial accounts are part of the national accounts.

The financial accounts are statistical tables which are based on other financial statistics as well as e.g. sector statistics containing data on balances and flows.

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Financial assets are economic assets, comprising means of payment, financial claims and economic assets which are close to financial claims in nature.

Financial claims entitle their owners, the creditors, to receive a payment or series of payments without any counter-performance from other institutional units, the debtors, who have incurred the counterpart liabilities.

Financial assets are divided into eight sub-categories: Monetary gold and special drawing rights (AF1), Currency and deposits (AF2), Debt securities (AF3), Loans (AF4), Equity and investment fund shares or units (AF5), In-surance, pension and standardised guarantee schemes (AF6), Derivatives and employee stock options (AF7), and Other assets and liabilities (F8).

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The financial assets category includes all financial instruments that are described in the financial accounts.

The main classification criteria are the asset's liquidity and the laws that regulate its use. The asset must correspond to an unconditional liability; contingent assets are included only if they have a market value or can be offset against other liabilities.

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The financial corporations sector includes the sub-sectors: the central bank, other monetary financial institutions and other financial intermediaries.

The central bank's function is to issue currency, to maintain the internal and external value of the currency and to hold all or part of the international reserves of the country. The sector includes the national central bank (Bank of Finland) also in the case where it is part of a European System of Central Banks.

Other monetary financial institutions' principal business is to receive deposits from other institutional units and, for their own account, to grant loans and/or to make investments in securities. The sector includes deposit banks as well as money market funds.

Other financial intermediaries are engaged in financial intermediation by incurring liabilities in forms other than deposits or insurance technical reserves. The sector includes credit institutions that have been granted concession by the Finnish Financial Supervision Authority, as well as other institutional units that mediate finance, i.a. investment funds, development capital companies, asset holding companies, pawnbroker offices, and e.g. deposit bank holding corporations.

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Financial derivatives are financial instruments the price of which is determined by the value of another asset. Such an asset, ie the underlying asset, can in principle be any other product, such as a foreign currency, an interest rate, a share, an index or a commodity. Financial derivatives include various options, warrants, forward contracts, futures and currency and interest rate swaps.

The transactions related to financial derivatives and the corresponding stocks of assets and liabilities are compiled separately, detached from underlying assets. Capital flows arising from financial derivatives are recorded as gross changes, so their flow data are broken down into assets and liabilities. Payment flows (cash flows) resulting from contracts entered into with non-residents and materialised during the reference period are recorded in gross changes. Such flows include, for example, premiums paid at inception of standardised derivative contracts, interim payments made during the life of the contracts (non-repayable margin payments) and net value payments made at the close of the contracts, as well as all net payments between the parties related to non standardised contracts.

The stock data of financial derivatives are broken down into assets and liabilities. The asset stock is fined as the sum of derivative contracts with a positive market value, and the liabilities stock, in turn, as the sum of derivative contracts with a negative market value. The market value of a contract is positive for a Finnish reporting entity when its non-resident counterparty would have a net payment obligation vis-à-vis the Finnish reporting entity if the contract were to be settled immediately (ie at the end of the month). Conversely, the market value is negative when the domestic reporting entity would have a net payment obligation vis-à-vis its non-resident counterparty. The values of assets underlying derivative instruments are not recorded under derivative contract values.

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The parties of financial leasing are the seller of the object, the financing enterprise and the lessee.

An arrangement whereby a finance company acquires an asset that the lessee needs, and leases it to the lessee under a long-term leasing contract. The main categories of assets subject to financial leasing in Finland are machinery, installations and motor vehicles. Buildings and land are among the assets that may be the subject of lease. The leaser finances his acquisition by leasing the asset to the lessee.

The finance company retains ownership of the asset, and ownership is normally not transferred to the lessee after the expiration of the contract. The lessee has the right to use the asset over the lease period, which usually covers all of the economic lifetime of the asset.

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The acquisition takes place when the financing enterprise acquires possession of the object required by the lessee in its operations from the seller of the product.
The lessee independently selects the object to be leased and its supplier, and then signs a leasing contract with the financier.

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The rent of the leasing object paid by the lessee that includes both the interest calculated on the object's acquisition price and the handling fee, as well as the amortisation of the object's value excluding the residual value.

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Selling takes place when the financier of the leasing object sells the product at the end of the leasing period to the lessee or some other party.
At the end of the leasing period, the lessee has the opportunity to redeem the leased object at the price indicated by the residual value (purchasing option) or find a buyer for the object.

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Financial liabilities are economic liabilities that are categorised in the same manner as financial assets. Liabilities represent the counterpart of assets, i.e., an asset of one sector is always recorded as a liability of another sector.

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As a rule, financial services cover financial intermediation of banks and other financial corporations and support activities for them except insurance and pension services.

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The financial statement estimate is an estimate collected by Statistics Finland and the Association of Finnish Local and Regional Authorities annually in January from all municipalities and joint municipal boards, and it projects how certain items of the profit and loss account, funds statement and balance sheet will be formed in the financial statement of the past year. The data are collected separately for other municipal/joint municipal board activities and the enterprises following the municipal enterprise model in a way which allows them to be combined into an estimate of the key items in the municipal financial statement. No data by municipality or joint municipal board are published from financial statement estimates.

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Financial transactions are transactions in financial assets and liabilities be-tween institutional units, and between them and the rest of the world.

The item shows which sectors are net lenders and which sectors are net bor-rowers, the form of the financial asset or liability and the amount .

Financial transactions are classified into eight main categories, which are subdivided into subcategories. The classification is consistent with the classi-fication of the balance sheet totals of financial assets and liabilities.

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Finansiella nettotransaktioner utgör differensen mellan nettoanskaffningen av finansiella tillgångar och nettoanskaffningen av finansiella skulder. En sektor är nettoutlånare under perioden, om sektorns finansiella tillgångar ökar mer än dess finansiella skulder. Begreppet motsvarar begreppet netto-utlåning/-upplåning i nationalräkenskaperna.

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A fine is passed as day fines, the minimum number of which is one and the maximum number is 120. (Criminal Code, Chapter 2a, Section 1). A joint fine may be at most 240 day fines. (Criminal Code, Chapter 7, Section 3).

One sixtieth of the average monthly income of the person fined, less the taxes and fees defined by a Government Decree and a fixed deduction for basic consumption, is deemed to be a reasonable amount of a day fine. The maintenance liability of the person fined may decrease the day fine. (Criminal Code, Chapter 2a, Section 2).

The total amount of the fine is equal to the number of day fines times the amount of a day fine, but a fine for speeding must always equal at least the highest possible summary penal fee passed for speeding. However, a joint fine may not be greater than the sum of the maximum punishments for separate offences.

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Goods that have been produced by an enterprise and are ready to be sold as such.

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All persons who have at least one parent who was born in Finland are considered to be persons with Finnish background. People born in Finland before 1970, whose parents' background is not known, have been concluded to be persons with Finnish background if their native language is a national language (Finnish, Swedish, Sami). The background country for all persons with Finnish background is Finland.

For children adopted from abroad, the adoptive parents are regarded as the biological parents. Thus a child adopted from abroad by persons born in Finland is a person with Finnish background and their background country is Finland.

See a more detailed definition of the origin classification: *<*a href="http://tilastokeskus.fi/meta/kas/syntypera_ja_ta_en.html"*>* origin and background country.*<*/a*>*

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See *<*a href="http://tilastokeskus.fi/meta/kas/suomalaistausta_en.html"*>* Finnish background.*<*/a*>*

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A vessel with a length of at least 15 metres registered in Finland.

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First registration is the initial time the vehicle is registered in Finland.

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First-time dwelling transactions include those that are entitled to the exemption from asset transfer tax for first-time homebuyers (www.vero.fi).

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A fixed telephone network is essentially a communication network using a local communications system in which the terminal equipment is linked to the communications network by a cable or other fixed connection.

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Fixed-term imprisonment refers to unconditional or conditional imprisonment, a monitoring sentence and community service.

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There are several definitions for this concept

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The floor area of residential buildings is obtained as gross floor area from the building stock. Gross floor area is the combined floor area of the storeys of buildings. Gross floor area includes the floor area of each storey up to the external surfaces of exterior walls.

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

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Persons whose both parents or the only known parent have been born abroad are considered to be persons with foreign background. Persons who have been born abroad and whose parents' data are not included in the Population Information System are also considered to be persons with foreign background. Persons born in Finland before 1970, whose native language is a foreign language have been considered to be persons with foreign background, as have persons born in Finland in 1970 or after this, whose parents' data are not included in the Population Information System. Persons, whose mother tongue is not Finnish, Swedish or Sami are regarded as foreign-language speakers.

See a more detailed definition of the origin classification: *<*a href="http://tilastokeskus.fi/meta/kas/syntypera_ja_ta_en.html"*>* origin and backgorund country.*<*/a*>*

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Foreign control means that the controlling institutional unit is resident in a different country from the one where the institutional unit over which it has control is resident.
Control means the ability to determine the general policy of an enterprise by choosing appropriate directors as needed.

Enterprise A is deemed to be controlled by institutional unit B when B controls - directly or indirectly - more than half of the shareholders' voting power or more than half of the shares.

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A foreign corporation is a unit which is registered in Finland in order to declare its sales including VAT but which does not have a permanent establishment in Finland. These units are not included in the enterprises of the Business Register. Cf. Branch.

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A direct investment relationship exists between a resident enterprise in one economy (direct investor) and an enterprise (direct investment enterprise) that is resident in an economy other than that of the direct investor, when the direct investor has control (over 50% of the voting power) or influence (from 10% to 50%) over the direct investment enterprise. In other words, direct investment reflects the objective of establishing a lasting interest between the direct investor and the direct investment enterprise. The direction of the investment (either inward or outward) is determined in the statistics based on the direction of the control/influence between parties. Furthermore, foreign direct investments refer to financial transactions between parties in a direct investment relationship.

The capital of direct investments is divided into equity and debt-based items. The counter item of reinvested earnings presented in the current account is recorded in equity. Equity includes transactions with shares in corporations, share subscriptions in rights issues and other equity transactions. For listed companies, the value of equity is recognised at market value and for other enterprises at own funds at book value. The debt capital of direct investments includes individual loans, leasing credits, deposits in consolidated accounts, subordinate loans comparable to equity, trade credits, accrued charges/credits and deferred charges/credits, bonds, and money market instruments. If both the creditor and debtor practise other financial intermediation than insurance, only so-called perpetuals are classified as debt capital of direct investments.

The statistics on foreign direct investments are published according to the so-called extended directional principle. The new statistical standards (BPM6/BD4) recommend that the asset/liability principle is applied to direct investments in the statistics on balance of payments and international investment position. Similarly, the extended directional principle is recommended to be applied in connection with examinations of direct investments by country or sector. Due to divergent ways of presentation, the figures for direct investments given in the statistics differ from one another.

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See *<*a href="http://tilastokeskus.fi/meta/kas/ulkomaalaistaus_en.html"*>* foreign background.*<*/a*>*

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In the statistics on students and qualifications of educational institution, university of applied sciences education and university education foreign students refer to persons registered in educational institutions on 20 September of the statistical reference year as students of education leading to a qualification or degree whose nationality is not Finnish. In addition, students without information about nationality are counted as foreign students. Up to 2001, data on foreign students in university education describe the situation on 31 December and include attainers of a degree in autumn.

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Foreign trade in services takes place when an economic actor (e.g. a business enterprise) resident in Finland and an economic actor resident abroad conduct trade in services. The exports of services generate income. The imports of services generate an expense item. The distinguishing criterion of foreign trade in services is that a domestic company receives compensation from a foreign economic actor for a service provided, or pays a foreign economic actor for a service it has provided.

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Foreign-owned enterprises are enterprises where more than 50 per cent of equity or voting shares are directly or indirectly held by one foreign party.

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Forest accounts are statistics that describe changes and flows in wood resources and their related economic values in the national economy. Apart from wood, forest accounting also extends to some other benefits from forests with known volumes or monetary values, as well as to data on the sizes of forest areas.

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Formal education refers to participation in education provided by the regular education system with the aim to complete a qualification. Education leading to a qualification according to the regular education system is arranged in the following educational institutions: comprehensive schools, upper secondary schools, vocational schools and colleges, polytechnics and universities. Education leading to a vocational qualification can also be arranged in apprenticeship training and in folk high schools and sports institutes.

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Carbon dioxide is the most important greenhouse gas. CO2 emissions are mostly caused by burning fossil fuels. In emissions into air by industry statistics, peat is included into fossil fuels. A majority of the fossil carbon dioxide emissions are released in heat and power production.

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Fossil fuels refer to fuels that have been formed of biomass and stored underground millions of years ago. Fossil fuels include coal, lignite, natural gas and fuel oils refined from crude oil. In international classifications peat is often classified as fossil fuel, although it is a clearly younger fuel than them.

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A foundation refers to assets set aside for a certain purpose and administered by the board of the foundation. A foundation can be established with a charter of foundation, last will and testament or a deed of donation. A licence to establish a foundation must be applied for from the Board of Patents and Registration, which also ratifies the rules of the foundation. A foundation is entered into the register of foundations maintained by the Board of Patents and Registration.

Funds also belong to this category of legal form.

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Four-wheel vehicle (L7e) is a power-driven four-wheeled vehicle with unladen mass of no more than 400 kg when used for passenger transport or no more than 550 kg when used for goods transport, in both cases disregarding the mass of batteries of an electrically-drive vehicle, and maximum engine power output of no more than 15 kW.

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A free-time residence refers to a recreational building constructed permanently on the site of its location or to a residential building that is used as a holiday dwelling. Holiday cottages serving business purposes, buildings in holiday villages and allotment garden cottages are not counted as free-time residences.

Free-time residences comprise all buildings the intended use of which on 31 December was as a free-time residential building or which on the said date were used as holiday residences.

Free-time residences are not included in the building stock. The floor area of free-time residences refers to the gross floor area of the whole building.

The data on free-time residences are obtained of the Population Information System, maintained by building project notices from municipal building supervision authorities.

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Freight charges of transport services contain all compensations for transport services paid by Finnish enterprises to foreign enterprises if the transport has taken place as road haulage. The usage of transport services applies to both export and import and also to cabotage and transit trade.

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Fuels used as energy sources for residential buildings here include wood, peat, coal, light fuel oil, heavy fuel oil, natural gas and liquid gas.

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Structural statistics on wages and salaries:
In structural statistics on wages and salaries, the division into full-time and part-time employment is based on regular weekly working hours. In these statistics, employment relationships with regular weekly working hours exceeding 90 per cent of the general working time in the industry are defined as full-time. It has not been possible to define employment as full-time or part-time for wage earners whose regular working hours are not known. This may be due to non-reporting or irregular working hours of the person in question. For public sector teachers, full-time and part-time employment has been defined on the basis of the conditions of the employment relationship. In the structural statistics on wages and salaries, private sector teachers whose weekly teaching duty is at least 16 hours are defined as working full-time.
Statistics on private sector wages and salaries:

For private sector monthly wage earners, the definition of full-time employment is based on weekly working hours, as in the structural statistics of wages and salaries. In these statistics, wage and salary earners whose regular weekly working hours exceed 90 per cent of the general working time in the industry are defined as working full-time.
Information on other wage and salary earners' full-time employment is obtained through inquiries or defined according to the employment relationship. If a wage and salary earner's regular weekly working hours are not known, also information on earnings is used to define full-time employment.

The distinction between full-time and part-time employment is not made separately for private sector hourly wage earners.

Statistics on public sector wages and salaries:

For wage and salary earners in the public sector, full-time and part-time employment is defined on the basis of the character and conditions of the employment relationship. Information on full-time and part-time employment is usually obtained through inquiries.

Labour cost survey:

In statistics on labour cost, an employee whose working hours are specified in the collective agreement for government employees or the collective agreement, or the regular working time of the unit in question, is defined as working full-time.

Cf. Part-time

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In the statistics on university and tertiary education, the statistical definition of full-time and part-time students is based on the number of completed credits. The data on numbers of completed credits derive from data collected by Statistics Finland on credits completed in the previous year. The data on credits are collected from all universities and university of applied sciences. Students having completed 30 or more credits during the academic year are classified s full-time students while students having completed fewer than 30 credits are classified as part-time students. All students having registered as absent are classified as part-time students.

First-year students do not yet have data on credits, so they are regarded as full-time students in the academic year concerned. Due to the nature of studies, data on the credits of students completing higher university degrees (licentiate, doctorate, medical specialist, veterinary specialist, dental specialist and students completing further university og applied sciences degrees) are not descriptive of full-timeness of studies. In computerised calculation of numbers of full-time and part-time students, all students studying for higher tertiary degrees are classified as part-time students.

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Full-time equivalent describes the labour input of a person converted to a full-time employee. All paid hours (regular working hours+overtime hours) of an enterprise (corporation) are divided by the average paid hours of full-time wage and salary earners in the enterprise (corporation).

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Employees or self-employed persons who report they work full-time in their main job are classified as full-time workers. The definition is not based on any hour limits, but on the respondent's own idea of the work being full-time.

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A limited liability company which primarily engages in fund management.

A fund management company usually manages and operates several investment funds. Establishment of a fund management company is subject to concession from the Financial Supervision Agency.

Fund management companies are nowadays allowed to offer their customers investment advice and individual asset management services.

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The fund's total market value minus any debts.

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Further vocational education refers to education leading to a further of specialist vocational qualification. Further and specialist vocational qualifications are obtained with skills examinations, that is, vocational skills are assessed in separate examination situations. Skills examinations for further and specialist vocational qualifications can be taken irrespective of the way of acquisition of vocational skills. Vocational skills can be acquired through education, working life or hobbies.

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