Concepts and definitions
- Ancillary establishment
An ancillary establishment produces services (in exceptional cases also goods such as additives and materials) mainly for the enterprise or an enterprise-type unit itself. Ancillary activities are nearly always a prerequisite for performing principal and secondary activities. The industry of the ancillary establishment is defined according to the principal activity it serves.
Ancillary establishments can be e.g. the head or district office or other such administrative office, a separate transport unit, a repair shop for the enterprise's own vehicles, a warehouse or a data processing unit. If such functions take place in the same establishment as normal production, they are usually not considered to be ancillary establishments.
In regional and industrial statistics on manufacturing also a power plant linked to an industrial establishment producing energy for the establishment or enterprise and a separate research and development unit linked to an industrial establishment are regarded as ancillary establishments.
- Goods for resale
Goods for resale are goods acquired by an enterprise for the purpose of reselling them without further processing. Also raw materials acquired by an enterprise for the purpose of reselling them as such are deemed to be goods for resale.
- Gross value of production
The gross value of production measures the actual production output of an establishment. Operating activities include all production output, also production for own use and production for the enterprise's other establishments. Gross value excludes transfer gains from fixed assets, which are not seen as a production item but as windfall profit. Additionally, the purchases of goods for resale are deducted from the profits of operating activities, so that operating activities only include the margin created by sales of goods for resale.
The gross value of production is calculated on the basis of the computational operation margin reported by the establishment. The formula for gross value of production is the following:
Turnover
+ deliveries to the enterprise's other establishments
+ change in the inventory of finished products
+ production for own use
+ other operating profits
- transfer gains from fixed assets
- purchases of goods for resale
= GROSS VALUE- Hours worked
Sum of hours actually worked by wage and salary earners during the financial year. The hours are determined methodologically from information available from the Labour Cost Index.
- Investments in fixed assets
Investments in fixed assets comprise the acquisition and capital improvement of tangible fixed assets, of which the sales and transfers of fixed assets are deducted.
Tangible fixed assets include land and water areas, land and water constructions, buildings and constructions, machinery and equipment as well as other tangible fixed assets. Buildings and structures as well as land and water constructions are recorded as an investment during the statistical period when they are paid for. Other fixed assets are recorded as investments during the accounting period when they are transferred to the buyer's or recipient's use.
The concept of gross total increase of tangible fixed assets was in use until 1994. This concept and the current one are defined the same way.
- Manufacturing
Manufacturing is understood as the processing of mechanical or chemical organic or inorganic substances into new products regardless of whether the processing is mechanical or manual and performed in a factory or in a worker's home. According to the definition, also product assembly is considered to be manufacturing. In statistics compilation manufacturing is traditionally deemed to include not only basic manufacturing but also mining and quarrying as well as electricity, gas and water supply.
- Materials and supplies
Materials and supplies are deemed to include goods used as inputs in a production process (raw materials, semi-finished products, additives, parts, and small tools and devices). Materials and supplies include also ancillary materials (lubricants, water etc.). Materials and supplies exclude office supplies and packaging.
- Number of employees
Employees comprise wage and salary earners and self-employed persons. Employees are converted to annual full-time employees so that, for example, an employee working half-time represents one half of a person and two employees working half-time for one year represent one annual full-time employee.
Labour input for self-employed persons is calculated as the input the owner of an enterprise or his/her family member makes into the enterprise without actual remuneration.
For enterprises not included in the surveys of the Register of Enterprises and Establishments numbers of employees are estimated from data on wages and salaries.
- Personnel expenses
Wages, salaries and rewards, pension expenses and other employer contributions = Personnel expenses
Personnel expenses comprise wages and salaries subject to withholding of tax and comparable expenses, as well as expenses determined direct based on wage or salary, such as social security contributions, statutory and voluntary personal insurance contributions and pension expenses.
Other voluntary personnel expenses come under other operating expenses.
- Reference period
The reference period is the period for which data is collected. In structural statistics the reference period is the accounting period.
- Statistical unit
A statistical unit is the basic statistical unit in statistics compilation, i.e. the unit from whom the data is collected. In structural business statistics a statistical unit is either an independent enterprise or an establishment of an enterprise.
- Value added at factor cost
The value added measures the total value added produced by the various factors of production in an establishment's actual operating activities. The value added is calculated by deducting the costs of operating activities from the income from the activities. Profits include also deliveries from an establishment to the enterprise's other establishments, and costs include also purchases from the enterprise's other establishments. According to the definition, costs exclude the costs related to the establishment's personnel.
The value added in production can be calculated from the gross value of production with the following formula:
= GROSS VALUE
- purchases of materials and supplies
- purchases from the enterprise's other establishments
- change in stock of materials and supplies
- external services
- other fixed and variable costs (excl. personnel costs)
+ sales losses from fixed assets
+ purchases of goods for resale
= VALUE ADDED
Official Statistics of Finland (OSF):
Regional and industrial statistics on manufacturing [e-publication].
Helsinki: Statistics Finland [referred: 25.5.2012].
Access method: http://www.stat.fi/til/atoi/kas_en.html.
Statistics
Regional and industrial statistics on manufacturing
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- Description
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