1 STRUCTURAL BUSINESS STATISTICS METHODOLOGY. Denmark

Transcription

1 1 STRUCTURAL BUSINESS STATISTICS METHODOLOGY Denmark On the following pages, you will find information about this country's statistical system and its various national data sources used for Structural Business Statistics. You can also consult the national statistical institute at their website ( Contents Denmark Statistical system (2005) Institution Legal Basis National Classifications Statistical Units Business Register Explanation of the main sources of data Accounts survey (2005) General information Population coverage Information collected on each unit Primary data collection method Production of results Quality Dissemination... 16

2 2 STRUCTURAL BUSINESS STATISTICS METHODOLOGY 1. Statistical system (2005) 1.1. Institution Name of the institution responsible Danmarks Statistik (Statistics Denmark) Responsibilities for structural business statistics The National Statistical Institute in Denmark (Danmarks Statistik) is responsible for collecting and compiling structural business statistics. The division in charge is the business structure division. Separate divisions have sectoral responsibility for manufacturing and construction on one hand and services on the other. Besides some of the data production is carried out by Finanstilsynet (the Danish Financial Supervisory Authority) Person responsible for structural business statistics Director of Business Statistics Mr Karsten Stetkær Danmarks Statistik Sejrøgade 11 Postboks 2550 DK 2100 København Ø Tel.: (+45) Fax: (+45) Head of Division Business Structure (from February 2006) Peter Bøegh-Nielsen Head of Division Industry and Construction Bente Dyrberg Head of Division Service Sector Jens Thomasen Finanstilsynet Kongevej 74 A DK 1850 Frederiksberg C Tel.: (+45) Fax: (+45) ; finanstilsynet@ftnet.dk Responsible for SBS, Annex 5 and 7: Jens Varder jva@ftnet.dk

3 3 STRUCTURAL BUSINESS STATISTICS METHODOLOGY Responsible for SBS, Annex 6: Kim Bederholm Legal Basis Current legal basis General statistical law The law regulating data collection in Denmark is Act no. 599, 22 June 2000, on Danmarks Statistik. According to this act, Danmarks Statistik is the central authority of Danish statistics. Right to collect data in general This is covered in Act no. 599 on Danmarks Statistik. General obligation of enterprises to reply In section 8 of Act no. 599 on Danmarks Statistik it is stated that All tradesmen and businessmen shall, when requested by Danmarks Statistik, supply information about the nature of activities, location and ownership, staff, level of wages and salaries, production (including transportation carried out and services performed), volume of orders and movements therein, turnover and prices, labour costs, purchases of commodities, other operating expenditure, capital expenditures and stocks. Subsection 2 says that Societies, associations, institutions, etc. which do not carry on business or trade shall, at the request of Danmarks Statistik, supply information about the nature of activities, location and ownership, use of area, staff, working conditions, level of wages and salaries, labour costs, capital expenditure and about assets and liabilities and their movements. In section 13 of the act it is stated that Any person (or company) failing to furnish, in due time, the information requested in pursuance of section 3a, or sections 8-12a or the acts adopted by the European Communities relating to collection and processing of statistical data, or knowingly or through gross negligence furnishes wrong information, shall be punishable with a fine". Obligation to safeguard confidential data In principle confidentiality is not regulated by any act, but the overall principle in Danmarks Statistik's policy on discretion is that identification of individuals (companies or physical persons) must be impossible. Right of access to administrative data According to section 6 of Act no. 599 on Danmarks Statistik, public authorities and institutions shall, within the framework of the work programme adopted by the Board, supply the information they possess when requested to do so by Danmarks Statistik Changes to legislation planned None.

4 4 STRUCTURAL BUSINESS STATISTICS METHODOLOGY 1.3. National Classifications Activity classifications Name of classification The Danish industrial classification of all economic activities 2003 (DB03). Date of creation In 2003 the Danish activity classification was changed to DB03 from the Danish activity classification code DB93, which was a subdivision of NACE Rev. 1. Date of introduction for structural business statistics 2003 reference year. Compatibility with NACE Rev. 1, existence of a 5th or 6th digit DB03 is a subdivision of NACE Rev The Danish activity classification contains 825 different activities, which are defined by a 6-digit activity code. The first 4-digits are identical to NACE Rev Unit responsible for classifying activities The team responsible for maintaining the Business Register are also responsible for classifying units. Variable used for identifying principal and secondary activities The statistical units in the Business Register are registered with a principal activity and up to 3 secondary activities. The principal activity of an economic entity is the activity that contributes most to the value added of the entity. Method used for identifying activities The principal activity is found according to the so called Top-down classification rule. Firstly the most important Section is determined. Secondly, in that Section, the most important Group is determined and finally the Class with the highest value added (or turnover or employment) in this Group is determined. Stability rules applied -- not available -- Independence of classification of units -- not available -- Existence of time series in the classification For relevant statistics detailed time series exist for the period when the new classification has been in operation. For essential statistics some less detailed time series data has been made by converting the old classification to the new classification for the years before the activity classification was changed Regional classification Classification or list of levels Denmark is divided into 14 county council districts. The cities of Copenhagen and Frederiksberg are not included in this classification but these two cities are in practice considered as county council districts. These county council districts

5 5 STRUCTURAL BUSINESS STATISTICS METHODOLOGY are divided into 271 municipalities and 2,121 parishes. The statistical and administrative classifications of Denmark are the same. Compatibility with NUTS The geographical division corresponds to NUTS 1 and NUTS 2 (country level) and NUTS 3 (county level) Legal forms list Classification of legal forms: sole proprietor with unlimited liability; partnerships; private companies; public companies; co-operatives; associations; funds; the State; County council districts and municipalities Other classifications Subject of other classifications Size class breakdowns. Classification The size bands used by Danmarks Statistik are the following: enterprises employing between 0 and 9 persons; enterprises employing between 10 and 19 persons; enterprises employing between 20 and 49 persons; enterprises employing between 50 and 99 persons; enterprises employing between 100 and 249 persons; enterprises employing between 250 and 499 persons; enterprises employing between 500 and 999 persons; enterprises employing 1,000 persons and more Statistical Units List of existing units Enterprise Legal unit Local KAU Administrative unit Definitions of each unit Enterprise: the smallest combination of legal units which benefits from a certain degree of autonomy in decision-making. Legal unit: natural or legal person. Local KAU: an organisationally defined part of an enterprise which is placed at

6 6 STRUCTURAL BUSINESS STATISTICS METHODOLOGY one geographic location and producing one or mainly one type of goods and services. Administrative unit: a part of an enterprise or a combination of enterprises which pays VAT separately or makes separate income tax returns for its employees Summary of use of each unit Registered: the Business Register contains enterprises, legal units and local KAU s and it also contains administrative units. Reporting unit: enterprise and the KAU. Observation unit: enterprise and the local KAU Business Register General information Name of register The Central Statistical Business Register. Institution responsible for the register The Business Structure unit in the department for Business Statistics is responsible for the register. Person responsible Sven Egmose Head of Division seg@dst.dk Purpose of the register To provide a basis for handling the business statistics duties of Statistics Denmark as well as duties for the Central Business Register (which is an administrative register at The Danish Commerce and Companies Agency). To create high quality basic data for the register users. Legal basis According to Consolidated Act no. 598, 22 June 2000, the Central Business Register should record legal entities, which operate on a self-employment basis, or employ persons working for pay. In this act legal entities are partly natural persons in their capacity as employers or self-employed persons, and partly legal persons. Obligation to register for births and deaths Business units are obliged to register births and deaths at the Tax Authorities. Limited Liability companies are obliged to report births and deaths at The Danish Commerce and Companies Agency as well. Date of creation and major changes The Business Register was created in November 1975, but it contains historical information on business units from January 1st 1964 that are still active. Date first used for structural business statistics -- not available --

7 7 STRUCTURAL BUSINESS STATISTICS METHODOLOGY Limits of legal right of access The Business Register can only be accessed by persons in Danmarks Statistik, with a special authorisation. Exceptions concerning common classifications None Population coverage Activities covered All. Geographical area covered Denmark. Size classes covered All. Other inclusions or exclusions Legal units with yearly turnover of less than DKK are not obliged to pay VAT, and are therefore not necessarily contained in the register, Act on VAT no. 291 of 15th of May Turnover liable to VAT settlement comprises all new and used goods plus electricity, gas, water and heat. Most services by industries are also liable to VAT settlement, but there are some exceptions. They are primarily passenger transportation, travel agency activities, banking, financing and insurance, medical and dental services and teaching of an academic or vocational nature. Public services, except for energy and water supplies, transport or repair services are only subject to VAT if the turnover took place in competition with other business units. Furthermore, business units which are not liable to VAT settlement can, for instance for administrative purposes, voluntarily register at the Ministry of Taxation, Central Tax Authorities. These units will therefore also be contained in the Business Register. Note that all legal forms are covered. Coverage rate -- not available -- Registered units Enterprise groups, enterprise units, legal units, local KAU s, production units and administrative units Record contents Level of activity classified 6-digit. Note that up to 3 secondary activities are registered as well as the principal activity.

8 8 STRUCTURAL BUSINESS STATISTICS METHODOLOGY Level of geographical location recorded The register contains information regarding the so called address code. The address code is defined by 22 digits and it gives exact information (municipality, road/street, street number from, street number to, letter from, letter to, floor, Side/door) regarding for instance the location of the local unit. Method of size registration The local KAU s can be divided into the following size-classes (defined by the number of persons employed): 0; 1; 2-4; 5-9; 10-19; 20-49; 50-99; ; ; and 1 000(+). The enterprises can be divided into the above mentioned size-classes and also into size-classes defined by the annual turnover (in DKR): 0; 1-99; ; ; ; ; ; ; and (+). Registration or not of legal form The legal form is registered. Registration or not of foreign ownership Foreign ownership is not registered. Registration or not of public ownership Public ownership is registered. Distinction between market oriented and non-market units Current practice is using criteria such as legal form, NACE activity, institutional sector. Registration or not of inter unit links Inter-unit links are registered. List of economic variables registered Quarterly employment (number of full-time employees at the enterprise level). Annual turnover (enterprise level). Annual employment (level the number of full-time employees, number of persons including the owner working by the end of November, number of full-time employees by the end of November (all three at the LKAU level). Employment can be defined in various ways. In the Business Register the employment is measured by the number of full-time employees. This variable is calculated from the payments to ATP (the labour market supplementary fund), to which all employees with more than 10 hours of paid work per week are obliged to pay. The number of full-time employees is defined as the sum of all payments to this scheme divided by the amount paid by a full time employee (which is fixed). Turnover is defined as the sum of national deliveries liable to VAT settlement and exports. National deliveries are inclusive of excise duties and other taxes but exclusive of VAT. Other characteristics registered Identification numbers (CVR-number) Dates (date of registration/deregistration/changes) Identification number for owners (Personal identification number for physical

9 9 STRUCTURAL BUSINESS STATISTICS METHODOLOGY persons/cvr-number for companies) Ownership code Name and address Telephone number/tele-fax number/ Register Updating List of main sources of information for updating Births, deaths and changes from the Tax Authorities as well as the results of statistical surveys. Frequency of receipt of updates by the register team The Statistical Business Register is updated on an on-line basis from the Central Business Register. The weekly data supply from this public authority is in the form of changes in the existing units or information concerning newly registered units. Frequency with which the raw data in the administrative sources are updated (if known) -- not available Lead time between the update the administrative data source and the receipt by the register team. Breakdown of lead time by administrative data source. -- not available Dissemination Existence of standard dissemination and possibility of special tabulations There is no separate publication on information compiled from the Business Register. Intermediate states (snapshots) can be made. Name and type of dissemination used Not relevant. Description of standard tables produced Not relevant. Delay within which data is disseminated from the end of a given reference year Not relevant Changes to the register's legal basis, coverage, contents, updating and dissemination In December 2004 (Consolidated Act no. 1466, 22nd of December 2004) the legislation for the Central Business Register was changed. The main changes were that all companies now have to report births and deaths at The Danish Commerce and Companies Agency and the Central Business Register was moved from The Tax Authorities to The Danish Commerce and Companies Agency.

10 10 STRUCTURAL BUSINESS STATISTICS METHODOLOGY 1.6. Explanation of the main sources of data The register for accounts data is the main source for SBS data. In addition separately compiled statistics are used for other sectors e.g. some services Classes that are publicly owned. 2. Accounts survey (2005) 2.1. General information Practical information Type of source Statistical survey combined with administrative data from the Tax Authorities and data from the Statistical Business Register. Name of source Accounts survey. Tax Authorities register on profit and loss for businesses. Statistical Business Register. Institution responsible for the source Statistics Denmark. Person responsible Mr. Bjarne Moesgaard Senior Adviser Legal basis The legal basis under which the data is collected is specified in the Statute of Danmarks Statistik no. 599, 22 June 2000, section 8, where a list of variables is identified. Obligation on units to provide data Business units are obliged to provide data according to the Statute of Danmarks Statistik. Date of first use as a source Similar data was compiled prior to this date in a different format. Reference year of this report Register on which the source is based The register system on business statistics. Expected changes in legal basis, obligation to respond and register used No changes in the relevant legislation are expected.

11 11 STRUCTURAL BUSINESS STATISTICS METHODOLOGY Use of administrative information Enumeration and description of the administrative data sources used a) The Tax Authorities Register with highlights from the annual financial reports of the enterprises (not included: enterprises with turnover less than 500,000 DKK, partnerships, enterprises which started or stopped in the financial year, enterprises at the Stock Exchange). b) The Drug Administrations Register with annual financial reports of all pharmacies. The quality of these registers is evaluated as good. Identification of units in the administrative source with those in the Business Register (linkage). CVR-numbers. Definition of the administrative information respective to the statistical variables used. Most of the definitions are based on the requirements of the Danish Law of Annual Reports but some of the information from the administrative registers is less detailed than the statistical variables needed. Definition of the administrative units respective to the statistical units in the SBS. The administrative unit is the legal unit, which in most cases is identical to the statistical unit in the SBS. In a few cases two or more legal units are combined into one statistical unit Summary of questionnaires Summary of different national questionnaires used in the survey The same questionnaire is used. Expected changes in national questionnaires No changes are planned Population coverage Activities covered NACE Rev Divisions 10-64, Geographical area covered All regions are covered Size classes covered All size classes are covered Other inclusions or exclusions All activities of enterprises within the survey activity coverage are included in the enterprise data, but the parts of enterprises relating to activities falling outside of this coverage are excluded from the local unit and KAU data.

12 12 STRUCTURAL BUSINESS STATISTICS METHODOLOGY KAU s within the survey activity coverage belonging to enterprises classified outside of the survey coverage receive simplified survey forms covering turnover, consumptions and stocks of goods, and investment Reporting unit The enterprise and KAU Observation unit(s) The enterprise and the local KAU Expected changes in the population surveyed No changes are planned Information collected on each unit Summary list of variables Value added and its components Personnel costs Assets Liabilities Investment Variables from Annex 1 of the SBS Regulation Number of enterprises ( ) Number of local units ( ) Turnover ( ) Production value ( ) Value added at factor costs ( ) Total purchases of goods and services ( ) Purchases of goods and services for resale in the same condition as received ( ) Personnel costs ( ) Wages and salaries ( )

13 13 STRUCTURAL BUSINESS STATISTICS METHODOLOGY Gross investment in tangible goods ( ) Number of persons employed ( ) Number of employees ( ) Other variables collected but not specified in Annex 1 of the SBS Regulation The following SBS-R variables are also available from these statistics: gross margin on goods for resale ( ); gross operating surplus ( ); change in stocks manufactured by the unit etc. ( ); social security costs ( ); the constituent parts of gross investment in tangible goods ( , , , ); sales of tangible investment goods ( ); number of employees in full time equivalent units ( ); as well as: rent paid, depreciation, financial and extraordinary items, assets and liabilities Time span covered by data In the "Accounts" inquiry, the reporting period is the accounting year ending in the period from May of the reference year to April of the following reference year. These data are used as the best possible approximation to the calendar year of the reference year Expected changes in information collected No changes are planned Primary data collection method Media The data is collected using a postal questionnaire Timetable of data collection A first batch of questionnaires is sent out at the end of May/beginning of June and a second batch in September of the reference year Sample or census The accounts survey is a census for enterprises with 50 employees or more, and sample for enterprises with 5-49 employees supplemented by information from administrative sources for enterprises not covered by the sample. Administrative sources are used for all units with less than 5 employees.

14 14 STRUCTURAL BUSINESS STATISTICS METHODOLOGY As an exception to this rule an enterprise is included in the sample if its VAT turnover is >= 100 million DKK and NACE Division < > 51, or >= 200 million DKK if NACE Division is = Criteria for stratification Activity code, ownership code, number of employees Threshold values and sample percentages The following sample rates are used: Employees 1 Sample % and 100 more 1 Measured in full-time equivalent units Response rate The response rate is 97% Actions to speed up or increase the rate of response A follow-up is made to contact late responding enterprises and eventually legal proceedings may be taken against non-respondents Frequency of data collection or list of recent reference years Annual Expected changes in data collection methodology No changes are planned Production of results Imputation methods to compensate for non-response Estimates for data of non-respondents are based on ratios within the corresponding size class, ownership type and activity heading. Estimates for grossing-up The Danish accounts statistics are based on data from 3 sources: the Business Register a sample survey the Central Tax Register From the Business Register all the enterprises which were active during the reference year are extracted with, among other things, information about their kind of activity, kind of ownership and number of employees.

15 15 STRUCTURAL BUSINESS STATISTICS METHODOLOGY Data are received from the sampled enterprises, validated and, if necessary, corrected and subsequently entered into a database. The enterprises are divided into strata defined by their kind of activity, kind of ownership and number of employees. The three-stage grossing-up process: 1. Stratified results are calculated for the enterprises in the sample. These enterprises cover some 70 percent of the turnover for the total population. 2. Highlights of accounting results are extracted from the Tax Register for enterprises outside of the sample representing some 20 percent of the turnover for the total population. The missing items are calculated by interpolation based on the stratified results from point 1 above. A new set of stratified results is calculated for the enterprises covering some 90 percent of the turnover for the total population. 3. The residual group of non-sampled enterprises (essentially the very small enterprises) are added in the form of information from the Business Register. This information only covers kind of activity, kind of ownership, number of employees and the turnover according to VAT statements. So for this group of enterprises most of the items are estimated by interpolation based on the stratified results from point 2 above. Confrontation with other data sets Comparisons with results of VAT statistics, PRODCOM data, investment survey, raw material consumption inquiry, etc. are carried out. Other calculations made Financial ratios are calculated (for quality checks and for national publication). Criteria for the identification of confidential data Cells are regarded as confidential if the two biggest units account for 80% or more of turnover. Expected changes in production methods No changes foreseen Quality Calculation procedure of the coefficients of variation The way the variation was estimated was with an iterative procedure. The procedure is repeated 20 times. After the gross-up procedure and the calculation of the variables, the variation and coefficient of variation are found. The procedure used is in a way very simple. Random 5% of the enterprises from which we have received a questionnaire are treated as if we did not get one. The gross-up procedure is now conducted. If the enterprises that are not included have reported to the Tax register the information here from is used, otherwise the enterprise is calculated with the ratio of its full-time equivalent employment. Other random 5% of the enterprises are removed and the first enterprises are now included again. The gross-up procedure is repeated again. This is repeated 20 times altogether and we have possibly different values in the variables for an

16 16 STRUCTURAL BUSINESS STATISTICS METHODOLOGY enterprise 20 times if the enterprise is only known from the Business register. If the enterprise is in the sample 19 of the times the enterprise has the same value for the entire variable and one time with perhaps different value in the variables. These 20 versions of our statistics are used to calculate an estimate of the variation. These different versions of the statistics are assumed to reflect the variation regarding the sample design and sample error. This method is the Jackknife technique and it is described in Särndal el. al. (1992) 1, and Cochran (1977) 2 among others. Assume that the sample contains from H stratum (h=1,2,..., H) and θˆ is the fullsample estimator of θ. Let θˆ (ha) be the estimator of θ based on what remains from the stratum h sample after omitting the ath group. A is the number of times the iteration process is repeated. We use A = 20. n h is the number of sample enterprises in the h stratum and N h is the total number of enterprises in the stratum. The variance is calculated this way: V H h= 1 n 1 N (A h 1) Ah h = h h A [ θˆ (ha) θˆ ] a= Summary description of quality criteria calculated for national purposes Statistics Denmark uses Eurostat s definition of quality and its reference to following seven criteria: Relevance, accuracy, timeliness and punctuality, accessibility and clarity, comparability, coherence, completeness. Objectives and goals for each criterion are included in Strategy 2010 which set out the overall objectives of Statistics Denmark Expected changes in quality evaluation The vision is to improve all the seven quality criteria, but the possibilities are limited due to the necessity of balancing the quality with the costs and the administrative burden. Until 2010 the intention is particularly to focus on the improvement of accuracy, clarity and coherence Dissemination National dissemination Name and media of national dissemination used The statistics are first published in Nyt fra Danmarks Statistik (News from Statistics Denmark) and subsequently with more details in Generel erhvervsstatistik (General economic statistics) appearing in the series Statistiske Efterretninger (Statistical News). Summaries are given in the Statistical Yearbook and in the Statistical Ten-Year Review. The accounts statistics are also available online from Statbank Denmark ( with data corresponding to the tables of Nyt fra 1 Carl-Erik Särndal, Bengt Swensson and Jan Wretman (1992), "Model Assisted Survey Sampling", Springer-Verlag New York, Inc. pp William Gemmell Cochran (1977), "Sampling Techniques", John Wiley & Sons, Inc. pp. 178

17 17 STRUCTURAL BUSINESS STATISTICS METHODOLOGY Danmarks Statistik and Generel erhvervsstatistik and some tables with even more detailed data. Description of standard tables produced Items from the profit and loss account, the balance sheet and data on investment are published for enterprises broken down by activity (standard grouping of 111 groups), ownership groups and size classes (0-9, 10-19, 20-99, 100+ full time equivalents). In the regional statistics the profit and loss data and investment data are published for local KAU divided by county and by main activity. Delay within which data is disseminated from the end of a given reference year 18 Months. Treatment of confidential data If one or two of the units in a group account for 80% or more of the turnover the figures for the group are not declared and are simply suppressed. Expected changes in national dissemination methods No changes foreseen Transmission to Eurostat and other organisations Data are transmitted to Eurostat within 18 months from the end of the reference year.