INTERNATIONAL RECOMMENDATIONS ON DISTRIBUTIVE TRADE STATISTICS

Transcription

1 INTERNATIONAL RECOMMENDATIONS ON DISTRIBUTIVE TRADE STATISTICS ANNOTATED OUTLINE - Draft - INTRODUCTION A. Foreword 1. Historical background The IRDTS were first formulated in 1956 and revised in Brief summary about the preparation of the revised International Recommendations for Distributive Trade Statistics (IRDTS) a. IRDTS is been prepared in accordance with the recommendations of the United Nations Statistical Commission at its 37 th session. The Statistical Commission endorsed the UNSD initiative to revise the existing recommendations and advised that the revision should fully reflect the specific needs and circumstances of various groups of countries and particularly the needs of countries with substantial informal sector ; b. Process of preparing the draft IRDTS establishment of Expert Group on Distributive Trade Statistics (EG-DTS); extensive consultations with its members; organized meetings; decisions taken; c. The IRDTS is part of UNSD broad initiative for strengthening countries methodological and operational foundation of economic statistics in an integrated manner. The initiative aims at compiling economic statistics in general and distributive trade statistics in particular in the most cost efficient way. Harmonization and further development of economic statistics will ensure their coherence across different sectors and conceptual consistency with macroeconomic statistics; d. The IRDTS is designed as to provide the comprehensive methodological framework of the distributive trade statistics. Practical and compilation issues, including description of good practices, will be addressed in the follow up publication Distributive Trade Statistics: Compilers Manual ; e. The IRDTS will provide a conceptual framework of distributive trade statistics, applicable in all countries irrespective of level of development of their statistical systems. The principles of flexibility in the IRDTS -Annotated outline, Draft Page 1 of 24

2 implementation and use of the international recommendations will be maintained; f. Reference to the principles of official statistics: - High quality international statistics, accessible for all, are a fundamental element of global information systems ; - Cost effectiveness, i.e. sources and methods for data collection are appropriately chosen to ensure timeliness and other aspects of quality, to be cost-efficient and to minimize the reporting burden for data providers; - Coordination of international statistical programmes is essential to strengthen the quality, coherence and governance of international statistics, and to avoid duplication of work. B. Purpose of International Recommendations on Distributive Trade Statistics 1. Need for Distributive Trade Statistics a. Overview of the importance of distributive trade sector and its different economic activities; distributive trade sector contribution in the economy in terms of value added and employment is steadily increasing; b. Unique place of distributive trade in the economic circuit - ensures the link between goods producing activities and final consumers; c. Other needs. 2. Uses of Distributive Trade Statistics a. For monitoring the behavior of distributive trade sector; for analytical studies assessing trends in the economy; for providing detailed activity and regional analysis, and for international comparisons; b. To provide the statistical information necessary for national/international policy formulation; c. To provide the link to and conceptually consistent data for national accounts compilation and other related statistical standards; d. Other uses. 3. Users of the IRDTS the IRDTS is aimed for producers of DTS, primary audience is the staff of statistical offices involved in the collection and compilation of DTS; the IRDTS may also prove useful to data users such as academicians and researchers. IRDTS -Annotated outline, Draft Page 2 of 24

3 4. Aims and objectives of international recommendations a. The ultimate objective of IRDTS is to provide guidance and to establish a common framework for the collection, compilation, analysis and dissemination of data on distributive trade; b. To provide and explain concepts, definitions, and classifications used for the purpose of distributive trade statistics; c. To promote consistency with other sectoral statistics and to minimize the differences in concepts with national accounts; d. To guide further developments. 5. Need for the current revision of IRDTS a. To reflect better the new economic developments in distributive trade sector - internationalization and globalization of production processes, new modes of delivering products in a global market, and the expansion of electronic commerce; b. To bring into the light new tendencies in data collection and data compilation resulting in improved quality and coverage of statistical information on distributive trade; c. To enhance usefulness of the recommendations for producers of statistics, policy makers and wide range of users; d. To respond better to the changes in users interests; e. To harmonize the recommendations with the updated statistical standards such as the 1993 SNA Rev.1, International Recommendations for Industrial Statistics, the study on Index Numbers of Industrial Production, and activity and product classifications. 6. Summary of changes in the international recommendations a. Review of the changes in the methodological framework for the compilation of distributive trade statistics that are introduced with the present IRDTS; b. References between old and new recommendations. 7. Organization of the draft IRDTS IRDTS -Annotated outline, Draft Page 3 of 24

4 a. Brief summary of the chapters contents - Chapters giving the exact definitions of data items recommended for use in distributive trade surveys; - Chapters dealing with some general compilation issues such as data sources used, compilation methods as well as some specific compilation issues like seasonal adjustments and compilation of indices of distributive trade; - Chapters identifying the components of metadata and principles of distributive trade statistics dissemination. I. SCOPE OF DISTRIBUTIVE TRADE A. General description of economic activities covered 1. Economic activities and engagement of production units in them, delineation between different economic activities 2. Description and coverage of activities of distributive trade sector a. Description in terms of activity classifications ISIC Rev.4 (details and correspondence with other existing activity classifications The Statistical Classification of Economic Activities in the European Community (NACE), The North American Industry Classification System (NAICS), The Australia and New Zealand Activity Classification (ANZSIC); b. Description in terms of product classifications Central Product Classification (CPC), Classification of Individual Consumption according to Purpose (COICOP); 3. Particularities of the three divisions of distributive trade section: a. Wholesale and retail trade and repair of motor vehicles and motorcycles; b. Wholesale trade, except of motor vehicles and motorcycles; c. Retail trade, except of motor vehicles and motorcycles. B. Boundary between distributive trade and other economic activities 1. Distinction between retail trade and wholesale trade; 2. Distinction between manufacturing and wholesale/retail trade; 3. Distinction between distributive trade and other services; IRDTS -Annotated outline, Draft Page 4 of 24

5 4. Other boundary issues (treatment of cross border operations, outsourcing, etc.) II. STATISTICAL AND REPORTING UNITS Entities engaged in distributive trade vary in their legal, accounting, organizational and operating structures. To achieve maximum possible integration of distributive trade statistics into the national economic statistics and to ensure better international comparability, the IRDTS will provide recommendations on use of statistical units. In particular, the chapter will provide: 1. An overview of the general principles for defining and delineating statistical units as approved by the UN Statistical Commission in the context of 1993 SNA Rev.1, ISIC etc.; 2. Recommendations on statistical units for use in distributive trade statistics taking into account both general principles and varying country needs and circumstances; 3. Guidance on treatment of several organizational forms typical to distributive trade; 4. Recommendations on identification of statistical units of the informal sector. A. General principles for defining and delineating statistical units This chapter will describe briefly the general principles for defining and delineating statistical units as recommended by the UN Statistical Commission for use in economic statistics and it will indicate publications for further reference. B. Statistical units for use in distributive trade statistics 1. Statistical units typical for distributive trade This section will deal with the statistical units typical to distributive trade. It will provide their recommended definitions. The following units will be given a special attention: a. Enterprise IRDTS -Annotated outline, Draft Page 5 of 24

6 The enterprise is an economic unit that undertakes production of goods or services. It carries out one or more activities at one or more locations. The enterprise is a statistical unit most suitable for collection of data on financial transactions and balance sheets. b. Local units Enterprises often engage in productive activity at more than one location, and for some purposes it may be useful to partition them accordingly. A local unit is defined as an enterprise, or a part of an enterprise (e.g. workshop, factory, warehouse, office etc.) which engages in productive activity at or from one location. This definition is set out more in terms of manufacturing industry. The local unit concept relevant to the distributive trade will be further explained in section Department stores / shops-within-shops trade. c. Establishment An establishment is defined as an enterprise or part of an enterprise, i.e. an economic unit that engages, under a single ownership or control - that is, under a single legal entity in one, or predominantly one, kind of economic activity at a single physical location. The establishment is a statistical unit most suitable for collection of production related data, employment data and compensation of employees, gross capital formation and changes in inventories. d. Enterprise Group Membership of a group is an important criterion for analyzing enterprise performance and behavior. An enterprise group is an association of enterprises bound together by legal and/or financial links. A group of enterprises can have more than one decision-making center, especia lly for policy on production, sales and profit. It may centralize certain aspects of financial management and taxation. It constitutes an economic entity, which is empowered to make choices, particularly concerning the units that it comprises. e. Other statistical units The concept of the establishment combines both a kind-of activity dimension and a locality dimension. It is based on the assumption that the aim of the statistical program is to compile data classified both by activity and by geographical region. In circumstances in which precision in either the geographic or the activity dimension is not required, there are other units that may be used as statistical units for the compilation of production or production related statistics. IRDTS -Annotated outline, Draft Page 6 of 24

7 2. Characteristics of statistical units engaged in distributive trade a. Kind of activity - List of activities in ISIC Rev.4 section G, divisions Correspondences with some other activity classifications b. Type of operation - Type of wholesale operations - wholesale distributors, manufacturers sales branches and offices; agents and brokers; - Type of retail trade operations store/non-store; mail orders, e- commerce, etc. c. Type of economic organization - Single establishment enterprise - Multi-establishment enterprise d. Kind of legal organization and type of ownership - Legal organization - Unincorporated - Incorporated - Co-operative - Type of ownership e. Location - Publicly owned - Privately owned - Foreign controlled - Physical location of the enterprise, mailing address, contact person f. Size - Based on employment four basic size groups large, medium, small, micro enterprises <OECD classification (i.e. Istanbul recommendations) of micro, small, medium and large units for international comparison purposes will be discussed. A need for flexibility for countries to adopt their national classification of sizes will be recognized.> IRDTS -Annotated outline, Draft Page 7 of 24

8 - Based on turnover 3. Choice of statistical and reporting units for the purpose of distributive trade statistics - Countries to provide estimates that cover all recognizable units engaged in distributive trade activities; - Enterprises and establishments both are regarded as a statistical unit. Countries will have the flexibility to adopt the unit that is most suitable for them depending on the practices their statistical systems support. C. Treatment of entities specific to distributive trade 1. Retail chains Chains are organizational forms that apply mainly to retail trade but also to some other service oriented businesses. Retail chains are a range of retail outlets which share a brand and central management, usually with standardized business methods and practices. Such stores may be branches owned by one company or franchise owned by local individuals or firms and operated under contract with the parent corporation. 2. Franchising Franchisees are independent legal units which sign a contract with another legal unit, the franchiser, to engage in an activity making use of trademarks, trading styles and marketing support provided by the franchiser, usually in return for a fee or a share of the profits. Usually the franchiser and franchisees have a vertical type of relationship. 3. Department stores / shops-within-shops trade A department store is a retail establishment which specializes in selling a wide range of products without a single predominant merchandise line. Certain department stores could be further classified as discount department stores. However, in some cases it might be difficult for statisticians to implement the definition of a local unit for department stores, since this definition does not make a reference to a shop or a store. Shops -within-shops trade, i.e. letting out a space within a department store to individual retailers where there will be a number of local units and equal number of shops. 4. Hypermarkets IRDTS -Annotated outline, Draft Page 8 of 24

9 A specific organizational form of distributive trade representing a combination between a supermarket and a department store. The result is a gigantic retail facility which carries an enormous range of product lines under one roof. A category of hypermarket is the membership based wholesale, the so called warehouse clubs. 5. E-commerce Business units that sell goods and supply services exclusively through the Internet are creating a new mode of delivering products in a global market. While the e-commerce is equally applicable to all major economic activities, it has been expanding tremendously in wholesale and retail trade with the widespread use of computers and internet. E-commerce are sales of goods and services, where an order is placed by the buyer or price and terms of the sale are negotiated over an Internet, extranet, EDI network, electronic mail, or other online system. Payment may or may not be made online. 6. Other forms of distance selling mail order Business units receive orders and transact the sale of goods and services produced by a variety of means. This section will explain the other forms of distance selling - by telephone, fax, TV, EDI, Minitel etc. 7. Consumer credit lines Many stores offer their customers membership cards, allowing them to make purchases on credit. Compilers of distributive trade statistics must pay attention to identifying such units for the reason that lending to customer is not an ancillary activity. Units undertaking these activities are financial units and according to the AEG on National Accounts decision, they should be recognized as separate units (and classify appropriately). 8. Market places, farmers markets, street markets These are locations where goods and services are exchanged. The traders (or producers) have stalls, but not entire stores. However, it is also possible to have associated shops. Often the markets are temporary, with stalls only present for one or two days a week. D. Statistical units in informal sector 1. Statistical concept (and definition) of the informal sector Reference to the resolutions of the International Labour Organization and recommendations of the SNA 1993, Rev Informal sector units IRDTS -Annotated outline, Draft Page 9 of 24

10 The informal sector unit is a producing unit that is not constituted as a separate legal entity independently of the household members who own it. It has no complete set of accounts that would provide a means of identifying flows of income and capital between the enterprise and the owners. 3. Specific to distributive trade units of informal sector Organization of distributive trade activities in many economies (especially developing and transition countries) is dominated by small unincorporated enterprises of households. The production activities may be undertaken inside or outside the business owner s home; they may be carried out in identifiable premises or without fixed location. Accordingly, independent street vendors are all considered to be enterprises. III. DATA ITEMS AND THEIR DEFINITIONS A. List of data items recommended for use in distributive trade statistics, including identification of data items periodicity of compilation and priorities for national/international reporting 1. Data items are structured into the following groups: - Data items related to the characteristics of enterprise/establishment type of activity; kind of economic organization, type of trade operation, location, size, number of enterprises/establishments; - Data items on employment number of persons employed by status in employment and hours worked; - Data on labour inputs wages and salaries, social contributions; - Data items related to the calculation of trade output turnover/sales (including breakdown by activity, product, etc.) - Purchases of goods and services, including purchases of goods bought for resale; - Inventories; - Investments acquisitions and sales of fixed assets. 2. Some of the data items may not be existent or they may be of minor importance for some of the economies. Compilers will be encouraged to implement the recommended list of data items in accordance with their own statistical circumstances and available resources. A minimum set of data to be reported nationally and internationally will be recommended. 3. An indication for the frequency of collection/compilation; breakdowns by kind of activity or by size class; disaggregation by gender; recommendation IRDTS -Annotated outline, Draft Page 10 of 24

11 for national/international reporting etc., as well as type of units from which data should be collected will be provided for each item. 4. Data items codification is synchronized with the codification used by the International Recommendations on Industrial Statistics in order to provide a better potential for cross-activity comparisons. 5. A suggestive list of data items is annexed. B. Definitions of data items Summary definitions of all data items IV. PERFORMANCE INDICATORS A. Performance indicators and their use 1. Objectives of performance indicators; 2. Performance indicators are required by different users for various types of analysis, therefore their definitions and coverage should be consistent with the definitions and coverage of conventional data items; 3. In their vast majority, they represent a combination/ratio between two or more of the conventional data items; 4. Facilitate national and international analysis of the performance of distributive trade sector. B. List of the recommended indicators and their definitions Provisional list of recommended performance indicators include: - Turnover/sales per person employed - Gross margin as percent of sales - Inventories/Sales Ratios - Sales per sales space - Average sales space per one retail store - Monthly (quarterly, annual) sales and receipts at constant prices - Retail Trade Turnover Indices (Wholesale Trade Turnover Index) - Share of DTS in total GDP - Share of e-commerce sales in total sales - Other IRDTS -Annotated outline, Draft Page 11 of 24

12 V. DATA SOURCES AND DATA COMPILATION METHODS The chapter will describe various data sources and data compilation methods focusing on their relevance to distributive trade statistics A. Data sources 1. Statistical surveys a. Scope and coverage of the various statistical surveys - Full enumeration vs. sampling of units; - Units size threshold; - Combination of surveys with different frequency annual, quarterly, monthly surveys. b. Censuses of economic units to be undertaken in a structured cycle of infrequent benchmark, annual and more frequent infra annual collections with efforts to capture the micro and small enterprises not included in the business register. 2. Surveys and Approaches for capturing small units and units belonging to informal sector a. Area sampling techniques; b. Household surveys; c. Labour force surveys; d. Administrative sources. 3. Administrative data sources a. Coverage registration, transaction data b. Advantages cost efficiency c. Limitations of administrative records as a source of data d. Use of administrative data sources as a supplement to economic surveys 4. Business register as a frame for statistical surveys IRDTS -Annotated outline, Draft Page 12 of 24

13 a. Role and importance of business register for economic statistics the business register should be a central sampling and weighting frame for all business surveys; b. Establishment/maintenance of a business register - Guidance on business register structure; - Units; - Relationship between legal, operational and statistical units; - Treatment and coverage of small and medium sized enterprises. c. Target business population for distributive trade surveys (units falling within distributive trade sector). 5. Data collection strategy Data collection strategy for distributive trade statistics should be based on an integrated approach covering in principle all economic activities across all size classes of production units including micro and small enterprises. a. Public sector enterprises may be covered on complete enumeration basis based on administrative data; b. Incorporated private sector enterprises may be covered through sample surveys of such units selected through the business register (or census list); c. Small establishments (mostly unincorporated household enterprises) may be covered through area sampling techniques, household surveys or administrative data sources such as tax records. 6. Reference period In general, the calendar year cycle beginning with 1 of January and ending with 31 December may be taken as the reference period in the IRDTS concerning the annual data. However, where data are more readily available for particular establishments on a different fiscal-year basis, it may be necessary to accept data on that basis. Corresponding calendar month/quarter will be taken as the reference period for monthly/quarterly trade statistics data respectively. B. Data compilation methods 1. Assembly of data collection of data from respondents; tabulation; IRDTS -Annotated outline, Draft Page 13 of 24

14 2. Data editing aiming at detection and elimination of errors, essential in assuring quality of collected data; 3. Imputations used for compilation of values of individual data items that are missing from original data source; imputation methods; dealing with nonresponse; 4. Grossing up procedures, aggregation if the results are obtained on the basis of a sample, grossing up procedures should be applied for obtaining the levels of data for the frame population of all units; 5. Validation, confrontation with related data from other sources confrontation of data from different surveys may reveal discrepancies or inconsistency. Therefore, all surveys should be carried out within a conceptually consistent framework for all business statistics, using standardized variables and classifications; 6. Reconciliation of high and low frequency data (benchmarking) data derived on the basis of monthly or quarterly surveys have to be aligned with more exhaustive and reliable annual estimates; objectives of benchmarking; 7. Revisions purpose of revisions; reasons imposing revisions. VI. SEASONAL ADJUSTMENTS The chapter will describe general approaches to seasonal adjustments focusing on their relevance to distributive trade statistics. A. Purpose and main principles of seasonal adjustment 1. Purpose of seasonal adjustment a. Short term analysis and monitoring of economic development over time is carried out on the basis of seasonally adjusted time series; b. Through identification of different components of the time series (trend cycle, seasonal and irregular components) seasonally adjusted data provide better understanding of business cycle. 2. Main principles of seasonal adjustment a. Basic concepts of seasonal adjustment, techniques, models; b. Direct and indirect approach for seasonal adjustment; IRDTS -Annotated outline, Draft Page 14 of 24

15 c. Length of time series; consistency of seasonally adjusted monthly/quarterly data with annual data; d. Seasonal adjustment software packages. B. Issues specific to distributive trade statistics Seasonally adjusted data should be adjusted for all seasonal variations, including also adjustments for largely predictable calendar effects that can have significant impact on trade activity: 1. Moving holidays Easter/Ramadan effect, Chinese new year; 2. Trading day effect i.e. the effect due to the weekly activity cycles. Different number of trading days will give different effects on sales and thus on production from one month/quarter to another. VII. INDICES OF DISTRIBUTIVE TRADE A. General principles of compilation of distributive trade indices 1. Concept of volume measurement - decomposing the change in a value aggregate into price and volume components; 2. Basic definitions; 3. Choice of index formula, base year. B. Specific guidelines on Indices of Retail and Wholesale Trade 1. Indices of retail/wholesale trade sales vs. indices retail/wholesale production; 2. Compilation of the indices - level of aggregation, weights, deflators of sales; 3. Chain-linking, rebasing, benchmarking and seasonal adjustment in the context of distributive trade indices. VIII. DATA QUALITY AND METADATA ON DISTRIBUTIVE TRADE STATISTICS A. Enhancing data quality of distributive trade IRDTS -Annotated outline, Draft Page 15 of 24

16 1. Purpose of the section - to set a standardized and systematized approach for distributive trade statistics quality measurement across UN member states; 2. Dimensions of quality framework: a. Relevance the degree to which distributive trade statistics meet the users needs in terms of coverage and content; b. Accuracy how close the estimated data are to the true values; c. Timeliness what is the lag between the end of the reference period and release of data; d. Accessibility how the users access the data; e. Comparability the degree to which the data can be compared over time and space; f. Coherence the degree to which data for one indicator derived from different data sources agree with each other. 3. Quality indicators versus direct quality measures (example response rate is used as a proxy quality indicator for bias due to non-response). B. Metadata on distributive trade statistics 1. Need for metadata a. Development of metadata as an essential component of the performance and interpretation of the statistical work; b. Statistical metadata describe or document statistical data and facilitate sharing, querying, comparing and understanding of statistical data over their lifetime; c. The increased need for the exchange of statistical information among users calls more and more for the development and implementation of a statistical metadata information system. This will enable users to judge whether the statistical data fit their purposes; d. Facilitate continuous quality improvement. 2. Characteristics of metadata a. Go beyond the pure form and contents of data; IRDTS -Annotated outline, Draft Page 16 of 24

17 b. Describe administrative facts about data (who created them, and when) ; c. Describe the processes behind the data (how data were collected and processed); d. Describe methodology (how the data were compiled). 3. Metadata components a. Data - The relevance of the statistical concepts, definitions and classifications used; - Scope of the data (geographical coverage, statistical units, statistical population); - Accounting conventions (reference period, base period for constant price data, valuation and recording of transactions); - Nature of the basic data (data sources used, types of surveys, statistical techniques for data collection applied); - Compilation practice (processing of data, response rate, estimation of missing data, validation); - Other aspects. b. Access by the public c. Integrity (transparency of practices and procedures) d. Quality (information the user needs to assess data quality) e. Dissemination formats IX. DISSEMINATION A. National reporting 1. Data confidentiality a. Confidentiality requirements as part of the countries statistical legislation; b. Confidentiality rules; c. Procedures to prevent disclosure of individual data. 2. Data dissemination timetable a. Development of a release calendar ; IRDTS -Annotated outline, Draft Page 17 of 24

18 b. Timetables should plan to release statistics as soon as possible but at the same time they should be realistic and achievable. 3. Length of time series a. Consistent time series of distributive trade data are available for an adequately long period of time; b. Time series data are consistent or reconcilable over time; in case of discontinuity or breaks, the reasons are well explained and documented. 4. Data revisions a. Distributive trade data may be subject to revisions depending on the data collection and estimation methods ; b. Revision analyses are undertaken by statistical authorities and made public; c. Revision policy. 5. Dissemination formats hard copy, electronic or internet release, dissemination of metadata B. International reporting 1. Minimum set of data to be reported internationally (infrequently, annually, quarterly) a. Minimum set of data to be reported internationally (list of data items); b. Harmonization and coherence of data reported with different frequency. c. Timetable 2. Format of data transmission 3. International reporting and international comparability of metadata IRDTS -Annotated outline, Draft Page 18 of 24

19 Annex DRAFT LIST OF DATA ITEMS FOR USE IN DISTRIBUTIVE TRADE STATISTICS <Further guidance on periodicity of compilation and reporting of the data items is to be developed> Provisional internal code Data items Type Periodicity 1 Statistical unit 1.1 Identification code 1.2 Location 1.3 Period of operation 1.4 Type of economic organization Single-establishment enterprise Multi-establishment enterprise 1.5 Type of ownership and legal organization Publicly owned By central government By state and local government Privately owned National Unincorporated Incorporated Co-operative Foreign 1.6 Size 1.7 Kind of activity Type of operation Wholesale trade Wholesale distributors Manufacturers sales branches and offices Agents and brokers Retail trade Store Non-store Mail orders, e-commerce Others 1.9 Number of enterprises 1 Only for units classified into Wholesale and retail trade; repair of motor vehicles and motorcycles activities IRDTS -Annotated outline, Draft Page 19 of 24

20 1.9.1 Complex enterprises Number of enterprises Number of establishments Single establishment enterprises 2 Employment Total number of persons employed [engaged] 2.1 (breakdown of employment categories by gender) Working proprietors Unpaid family workers Employees Full time employees Part time employees Total number of persons employed [engaged] in research and development Total number of persons employed [engaged] in development of software and databases Total number of persons employed [engaged] in informal sector enterprises 2.2 Average number of persons employed [engaged] Average number of employees 3 Hours worked 3.1 Number of total annual hours worked By employees 3.2 Average total annual hours By employees 3.3 Actual hours worked per person 4 Compensation of employees 4.1 Wages and salaries in cash and in kind Employees Employees engaged in research and development Employees engaged in development of software and databases 4.2 Employers' social security and other selected expenditures on behalf of employees IRDTS -Annotated outline, Draft Page 20 of 24

21 5 Turnover, sales, shipments, receipts or other revenues (excluding property income) Total turnover/sales (breakdown by kind of activity, product groups, size classes of 5.1 enterprises, type of consumers) E-commerce sales Gift cards sales 5.2 Accounts receivable 6 Purchases of goods and services Cost of energy, goods and materials for 6.1 business use Of which: Goods and materials Water used for business purposes Electricity Fuels and gas Total energy consumed ( ) Materials for production of own-account fixed assets and repair work 6.2 Services for business use Contract and commission work Repair and maintenance Transport services Other services Communication services Legal services Accounting and bookkeeping services Advertising and marketing services Computer services Environmental protection services Managing and consulting services Payments to employment agencies for agency workers Non-life insurance premiums on establishment property Financial services (excluding interest payments) 2 Of significant importance for the units classified into industrial activities (C, D and E sections of ISIC Rev.4) IRDTS -Annotated outline, Draft Page 21 of 24

22 Rental payment (for buildings, structure, machinery and equipment) Other 6.3 Purchases of goods and services for resale in the same conditions as received Fuels bought for resale without further processing Purchases of motor vehicle and motor cycle parts used solely in repair and servicing activities All other goods bought for resale without further processing Services purchased for resale without further processing 7 Inventories 7.1 Total inventories At the beginning of the year (by type of inventories) At the end of the year (by type of inventories) Change (plus or minus) (by type of inventories) Materials, fuels and supplies Work in progress Finished goods Goods and services purchased for resale in the same condition as received 7.2 Method of inventories valuation First-in-First-out Last-in-First-out Average cost Specific item cost Other 8 Taxes and subsidies 8.1 Taxes Taxes on products Value added tax and other deductible taxes linked to turnover, which are excluded from turnover Taxes on products, other than VAT Taxes and duties on imports Turnover, export and sales taxes Consumption, excise and luxury taxes Other taxes on production IRDTS -Annotated outline, Draft Page 22 of 24

23 8.2 Subsidies received Subsidies on products Other subsidies on production 9 Total Output 10 Gross margin on goods for resale 11 Total intermediate consumption 12 Total value added 13 Gross operating surplus 14 Gross fixed capital formation 14.1 Gross value of fixed assets at the beginning of the period Fixed assets under lease purchase (financial leasing) Building, improvements to land and other construction work Machinery and other equipment Transport equipment ICT equipment Other machinery and equipment Intellectual property products Mineral exploration and evaluation Computer software and databases Research and development Entertainment, literary and artistic originals Other 14.2 Capital expenditure of new and existing fixed assets (by type of assets) 14.3 Cost of own account fixed assets and major improvements 14.4 Gross value of fixed assets sold (by type of assets) 14.5 Depreciation 14.6 Gross value of fixed assets at the end of the period (by type of assets) 15 Investment in land 16 Performance indicators IRDTS -Annotated outline, Draft Page 23 of 24

24 16.2 Performance indicators in distributive trade Turnover/sales per person employed [engaged] Gross Margin as percent of sales Inventories-to-Sales Ratios Sales per space Average sales space per one retail store Monthly (quarterly, annual) sales and receipts at constant prices Retail Trade Turnover Index Wholesale Trade Turnover Index Share of DTS in total GDP Share of e-commerce sales in total sales Other IRDTS -Annotated outline, Draft Page 24 of 24