Arts, Entertainment, and Recreation Services: Facilitated Discussion 27 th Meeting of the Voorburg Group Warsaw, Poland John B. Murphy Assistant Division Chief for Classification Activities U.S. Census Bureau

Overview Characteristics of Businesses Data collection challenges What does this mean for prices? 2

Characteristics of Businesses Organization – Private sector for profit and non-profit – Government entities Sources of Revenue – Fees for services – Contributions/grants – Memberships – Other 3

Data Collection Challenges Turnover availability – 21 responses 4

Turnover 5

Example of detailed product inquiries 6 Source: 2007 Economic Census

Contributions 7

What should be included in turnover for ISIC 9000? 8 Contents of operating income appear to vary – some include only performing arts activities while others include sources of revenue that are closely related to operations (e.g., concession services, education, rental of space) Unrestricted contributions - exclude because they are not directly associated with transactions of goods and services (subsidies)? Restricted released? (in concept like a contract for services?) Private industry model – includes all transactions for goods and services but not contributions, not investment income, but possibly net assets released from restrictions [expenses are included in the unrestricted expenses]?

SNA The second version of the accounts is to consider those NPIs that provide services at economically significant prices but where the sales of their output bring in revenue that is significant but less than the whole of their costs. Two possible scenarios exist. The first is that the enterprise undertakes different types of activities, some on a market basis and some on a non-market basis but with the market basis activities predominating. Although the two types of activity cannot be allocated to separate institutional units, separate establishments for each can be distinguished. In principle, the production account of the establishments undertaking market activities should be compiled as normal but the production account for the non-market establishments should be based on the sum of costs. The value of this output should be treated as distributed to households as social transfers in kind and added to household actual final consumption.

SNA The second possibility is that only one sort of activity is undertaken but the sales cover a large part of the costs with the balance being made up of donations. The donations are treated in the SNA as current transfers (any donations designated for capital purposes being treated as capital transfers). The satellite account treats these donations as analogous to subsidies and so measures the value of the output as the total sum of costs. In this case, the excess of output measured in this way over the proceeds from sales is treated as non-market output, social transfers in kind and part of actual consumption of households. 10