National accounts definitions

basic prices – the amounts receivable by producers from purchasers for units of goods or services produced as outputs minus any taxes payable, and plus any subsidies receivable. They exclude any transport charges invoiced separately by the producers. change in inventories – the book value change as recorded in most business accounting records, less an inventory valuation adjustment that removes the capital gains and losses that may arise through holding inventories purchased at prices either higher or lower than those ruling during the period of account. Change in inventories effectively values the change in stocks at the average prices for the period. compensation of employees – total remuneration, in cash or in kind, payable by enterprises to employees. Includes contributions paid on employees’ behalf to superannuation funds, private pension schemes, the Accident Compensation Corporation, casualty and life insurance schemes, and other fringe benefits. consumption of fixed capital – the reduction in the value of the fixed assets used in production during the accounting period resulting from physical deterioration, normal obsolescence, or accidental damage. It is valued at replacement cost. exports of goods and services – all goods and services produced by New Zealand residents and purchased by non-residents. gross domestic product (GDP) – the total market value of goods and services produced in New Zealand after deducting the cost of goods and services used in the process of production, but before deducting allowances for the consumption of fixed capital. gross fixed capital formation – the total value of a producer’s purchases, less disposals, of durable real assets such as buildings, motor vehicles, plant and machinery, hydroelectric construction, roading, and improvements to land. Land is excluded from gross fixed capital formation. Included is the value of construction work done by a firm’s own employees. The term ‘gross’ indicates that consumption of fixed capital has not been deducted from the value of the outlays. gross mixed income – the operating surplus of closely-held or unincorporated business, which contains an element of labour remuneration that cannot be separately identified from the return on capital to the owner. In the TSA, gross mixed income is included in the total, gross operating surplus and gross mixed income, and is not separately identified. gross operating surplus – output at producer’s values less the sum of intermediate consumption, compensation of employees, and taxes on production and imports net of subsidies. It is approximately equal to accounting profit before deducting depreciation, direct taxes, dividends, interest paid, and bad debts, and before adding interest and dividends received. In the TSA, gross operating surplus is included in the total, gross operating surplus and gross mixed income, and is not separately identified. gross operating surplus and gross mixed income – this represents the sum of gross operating surplus and gross mixed income. GST on production – the transactions of registered producers are recorded excluding goods and services tax (GST), while those of final consumers (including producers of exempt goods and services) are recorded at actual market prices. The potential imbalance between the value of goods and services produced and the value ultimately consumed is removed by including the item ‘GST on production’ in the GDP account. This item produces a measure of the amount of GST included in the valuation of the final demand categories. Note that not all purchases by tourists attract GST, for example, airfares purchased abroad by international tourists. imports of goods and services – all goods and services produced by non-residents and purchased by New Zealand residents. intermediate consumption – the value of non-durable goods and services used in production. Valuation is at purchaser’s values. net capital stock – the accumulated written-down value of fixed assets valued in current prices. It is equal to accumulated investment less retirements and less accumulated depreciation for assets still operating. output – goods and services produced within an establishment that become available for use outside that establishment, plus any goods and services produced for own final use. producer prices – the amount receivable by the producer from the purchaser for a unit of goods or a service produced as output less any deductible taxes invoiced to the purchaser. The producer price excludes any transport charges invoiced separately by the producer. purchaser prices (market prices) – the amount paid by the purchaser, exclusive of any deductible taxes, to take delivery of goods or services at the time and place required by the purchaser. The purchaser price of goods includes any transport charges paid separately by the purchaser to take delivery at the required time and place. subsidies – current unrequited payments made by governments to enterprises based on the levels of their production activities or the quantities or values of the goods and services they produce, sell, or import. taxes on production and imports – taxes assessed on producers in respect of the production, sale, purchase, and use of goods and services, and that add to the market prices of those goods and services. This includes sales tax, local authority rates, import and excise duties, fringe benefits tax, and registration fees, such as motor vehicle registration, paid by producers. value added – the value added to goods and services by the contributions of capital and labour (ie, after the costs of bought-in materials and services have been deducted from the total value of output). en-NZ