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

2. (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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

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

13. 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

14. 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

15. ESTP course - SBS variables
Demographic variables
Number of enterprises:
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

16. ESTP course - SBS variables
Demographic variables
How to count ?
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

17. ESTP course - SBS variables
Demographic variables
Number of local units:
In regional statistics
Number of kind-of-activity units:
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

18. ESTP course - SBS variables
Output variables
Turnover:
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

19. 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

20. ESTP course - SBS variables
Output variables
Production value:
= 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

21. 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

22. 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

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

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

25. ESTP course - SBS variables
Input variables
Operating costs ( )
Buildings and equipment ( )
Of which long term renting and leasing ( )
Selling ( )
Other ( )
Current expenditure on environmental
protection ( )?
ESTP course on "Structural Business Statistics", Eurostat, March 2013

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

27. 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

28. 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

29. 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

30. 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 ( )
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

31. ESTP course - SBS variables
Personnel costs ( )
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 ( )
— employers’ social security costs ( )
ESTP course on "Structural Business Statistics", Eurostat, March 2013

32. ESTP course - SBS variables
Personnel costs
Wages and salaries ( )
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

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

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

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

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

37. ESTP course - SBS variables
Gross Investment in tangible goods ( )
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

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

39. ESTP course - SBS variables
Gross Investment in tangible goods ( )
COMMISSION REGULATION (EC) No 250/2009: =
But: Gross investment in tangible goods can be greater than the sum of as there are asset items such as art, forests, orchards, cattle… which cannot be attributed to either of the categories of tangible goods.
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

40. ESTP course - SBS variables
Employment variables:
Persons employed ( )
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

41. ESTP course - SBS variables
Employment variables:
Number of employees ( )
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

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

43. ESTP course - SBS variables
Employment variables:
Both Persons employed ( ) and
Number of employees ( )
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

44. ESTP course - SBS variables
Employment variables:
Hours worked ( )
= 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

45. ESTP course - SBS variables
Employment variables:
Number of FTE’s ( )
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

46. ESTP course - SBS variables
Breakdowns of turnover:
Examples:
: Turnover from the principle activity
: Turnover from industrial activities
: Turnover from service activities
: Turnover from trading
: Breakdown of turnover by product
 Based on CPA section G
 Sum =
: Turnover from building
: Turnover from civil engineering
ESTP course on "Structural Business Statistics", Eurostat, March 2013

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

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

49. 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