Concepts and definitions
- Basic price
Basic price is a price concept in the national accounts. The basic price is the price receivable by the producers from the purchaser for a unit of a good or service produced as output, minus any tax payable on that unit as a consequence of its production or sale (i.e. taxes on products), plus any subsidy receivable on that unit as a consequence of its production or sale (i.e. subsidies on products). It excludes any transport charges invoiced separately by the producer. It includes any transport margins charged by the producer on the same invoice, even when they are included as a separate item on the invoice. (subsidies on products). (ESA 1995 3.48).
- Exports of goods and services
Exports of goods and services consist of transactions in goods and services (sales, barter, gifts or grants) from residents to non-residents. (ESA 1995 3.128.)
- Final consumption expenditure
Final consumption expenditure consists of expenditure incurred by resident institutional units on goods or services that are used for the direct satisfaction of individual needs or wants, or the collective needs of members of the community. Final consumption expenditure may take place on the domestic territory or abroad. Final consumption expenditure is incurred by households, non-profit institutions serving households and general government. Non-financial corporations, financial and insurance corporations do not have final consumption expenditure. (ESA 1995 3.74.-3.80.)
- Gross domestic product
GDP, gross domestic product at market prices is the final result of the production activity of resident producer units. It can be defined in three ways: as the sum of gross value added of the various institutional sectors or the various industries plus taxes and less subsidies on products; as the sum of final uses of goods and services by resident institutional units (final consumption, gross capital formation, exports minus imports); as the sum of uses in the total economy generation of income account (compensation of employees, taxes on production and imports less subsidies, gross operating surplus and gross mixed income). (ESA 1995 8.89.)
- Gross fixed capital formation
Gross fixed capital formation consists of resident producers' acquisitions, less disposals, of fixed assets. Fixed assets are tangible or intangible assets produced as outputs from processes of production that are themselves used repeatedly, or continuously, in processes of production for more than one year. (ESA 1995 3.102.)
- Imports of goods and services
Imports of goods and services consist of transactions in goods and services (purchases, barter, gifts or grants) from non-residents to residents. (ESA 3.129.)
- Intermediate consumption
Intermediate consumption consists of the value of the goods and services consumed as inputs by a process of production, excluding fixed assets whose consumption is recorded as consumption of fixed capital. The goods and services may be either transformed or used up by the production process. (ESA 1995 3.69.)
Products used for intermediate consumption should be recorded and valued at the time they enter the process of production. They are to be valued at the purchasers’ prices for similar goods or services at that time. (ESA 1995 3.72.)
- Inventories
AN.12. Produced assets that consist of goods and services that came into existence in the current period or in an earlier period held for sale, use in production or other use at a later date. They consist of materials and supplies, work in progress, finished goods and goods for resale.
Included are all inventories held by government, including, but not limited to, inventories of strategic materials, grains and other commodities of special importance to the nation.
(ESA 1995 Annex 7.1)
- Output at basic prices
Output at basic prices consists of the products which have been produced in the accounting period. Three categories of output are distinguished: market output, output for own final use, and other non-market output. Output is to be recorded and valued when it is generated by the production process. (ESA 1995 3.14.-3.16.)
- Purchasers' price
The purchaser’s price is the price the purchaser actually pays for the products; including any taxes less subsidies on the products (but excluding deductible taxes like VAT on the products); including any transport charges paid separately by the purchaser to take delivery at the required time and place; after deductions for any discounts for bulk or off-peak-purchases from standard prices or charges; excluding interest or services charges added under credit arrangements; excluding any extra charges incurred as a result of failing to pay within the period stated at the time the purchases were made. (ESA 1995 3.06)
- Subsidies
Subsidies (D.3) are current unrequited payments which general government or the institutions of the European Union make to resident producers, with the objective of influencing their levels of production, their prices or the remuneration of the factors of production. Other non-market producers can receive other subsidies on production only if those payments depend on general regulations applicable to market and non-market producers as well.
Subsidies granted by the Institutions of the European Union cover only current transfers made directly by them to resident producer units.
Subsidies are classified into:
a) subsidies on products (D.31)
(1) import subsidies (D.311)
(2) other subsidies on products (D.319)
b) other subsidies on production (D.39).(ESA 1995 4.30.-4.32.)
- Taxes on production and imports
Taxes on production and imports (D.2) consist of compulsory, unrequited payments, in cash or in kind which are levied by general government, or by the Institutions of the European Union, in respect of the production and importation of goods and services, the employment of labour, the ownership or use of land, buildings or other assets used in production. These taxes are payable whether or not profits are made.
Taxes on production and imports are divided into:
a) taxes on products (D.21)
(1) value added type taxes (VAT) (D.211)
(2) taxes and duties on imports excluding VAT (D.212)
– import duties (D.2121)
– taxes on imports excluding VAT and import duties (D.2122)
(3) taxes on products, except VAT and import taxes (D.214)
b) other taxes on production (D.29).
(ESA 1995 4.14. - 4.15.)- Trade margins
The output of wholesale and retail services is measured by the trade margins realised on the goods they purchase for resale. A trade margin is the difference between the actual or imputed price realised on a good purchased for resale and the price that would have to be paid by the distributor to replace the good at the time it is sold or otherwise disposed of. (ESA 1995 3.60)
- Value added
Value added (gross) refers to the value generated by any unit engaged in a production activity. In market production it is calculated by deducting from the unit's output the intermediates (goods and services) used in the production process and in non-market production by adding up compensation of employees, consumption of fixed capital and possible taxes on production and imports.
Official Statistics of Finland (OSF):
Input-output [e-publication].
ISSN=1799-201X. Helsinki: Statistics Finland [referred: 21.5.2013].
Access method: http://www.stat.fi/til/pt/kas_en.html.
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